Britannia Sharpens Local Strategy as Competition Intensifies in India

Britannia Industries is strengthening its regional strategy in India by increasing product localisation and giving regional teams greater decision-making responsibility as competition from local food brands grows. Managing Director and CEO Rakshit Hargave said the company has formed smaller teams and is adapting its products to respond to regional consumer preferences.

"We are localising our product, we have created a team of many Indians, we are empowering regional teams," Hargave said.

According to Hargave, regional companies have become a "reality" in the packaged food market, requiring larger brands to compete more closely on pricing, taste, and packaging.

"If we have to compete with them, we have to compete with them on an even scale. So whether it is price, taste, packaging and its expectation, you have to compete. Because on the ground, I might have a more famous brand, otherwise everybody is equal," Hargave said.

Britannia is also monitoring inflation as uncertainty around input costs continues. "So, the inflation, which happened as a result of the (high) crude, is still there. Now we have to see how it develops. We are all saying it is unpredictable," he said.

Hargave also highlighted quick commerce as a channel for testing new products and categories, particularly among younger and urban consumers.

"By nature of the geography and the disposition, you will see more premium products, more experimental products being bought. The cost of entry, the cost of failing is also fast. So, it is a good place to experiment and learn, and also get some business. And if it does well, you can also take it to other channels," he said.