NATIONAL NEWS

Competition Will Help Premium Biscuits Grow Faster, Says Britannia’s MD Varun Berry


Competition Will Help Premium Biscuits Grow Faster, Says Britannia’s MD Varun Berry




Mahima Kapoor
@mahimakapoor12
16 May 2018, 1:59 PM
16 May 2018, 1:59 PM
Follow Us








Editor's Choice

Battle Of Wits In Karnataka As Congress Backs JD(S) To Keep BJP Out
Walmart-Flipkart: Young Entrepreneurs’ Pride, Government’s Shame
Walmart Vs Amazon Vs Alibaba: 5 Things To Know About The 3-Way War For India’s E-Commerce Market
Ajay Piramal Buys Piyush Goyal’s Company Only To Sell Most Of Its Assets In Months
Why Some Indian States Are Facing Temporary Cash Flow Mismatches

Subscribe to Bloomberg | Quint
The Daily Newsletter


Subscribe
News & Stock Alerts

WhatsApp
Subscribe

facebook Messenger
Subscribe

Telegram
Subscribe







Britannia Industries Ltd. isn’t worried about the competition it faces from its rivals ITC Ltd. and Parle Products Pvt. Ltd. in India’s premium biscuits market.
The company is the nation’s second-largest biscuit maker and the leader in the premium category. Its peers are also building their premium portfolios and supporting them with aggressive advertisement campaigns, Britannia’s Managing Director Varun Berry told BloombergQuint.
“We are glad that everyone is making the right moves because it will make sure that the segment grows much faster than the overall biscuit market,” he said. “Us being the market leader in the segment, the advantage will be with us if we do the right things.”
Britannia plans initiatives to generate demand to help it maintain a double-digit volume growth seen in the last two quarters. This partly depends on a stable inflation rate in its commodity basket. While the prices of milk, sugar and flour have reduced, oil prices increased by a large margin. So far, there has been a small inflation in the overall commodity basket which is “manageable”, Berry said.
Another factor in securing advantage is “democratising” the premium products so that they’re available to those who are not willing to spend much on such products. Britannia Industries had earlier told BloombergQuint that it will make its premium brands affordable by offering smaller packs to make deeper inroads into the hinterland. “It’s a very important part of our strategy,” Berry said.
Keeping up with new technology that helps bring in products that are first to the Indian market is also crucial, he said.
Parle, the country’s largest biscuit maker, has expanded its offerings under its Platina brand. The segment, which includes flavoured ‘Hide & Seek’ biscuits and ‘Milano’ cookies, contributes 15 percent to its revenue. This is expected to grow to 25 percent as of this March, Mayank Shah, category head of Parle Products, told Business Line in February.

Britannia Industries’ range of premium digestive biscuits. (Source: Britannia Website)
ITC’s bakery segment has also introduced a line of ‘Farmlite’ digestive biscuits and cookies under the ‘Dark Fantasy’ brand, in direct competition with Britannia’s ‘Nutri Choice’ digestive biscuits and ‘Good Day’ chocolate chunk cookies.
Work-In-Progress
Hindi-speaking states such as Uttar Pradesh, Bihar and Madhya Pradesh are a weak spot and a growing opportunity for Britannia, Berry said.
“We are at best a distant second or even a third player in some of these states,” he said, adding increasing geographical distribution is one its key areas of focus for the financial year.
The company is looking to come up with more premium and value-added products instead of basic milk products, he said. Cheese, for instance, is a high value-added product for the company.
While other dairy product makers may be benefitted from lower milk prices, “we are not looking at getting into basic products because the value added is not enough to give us enough of a premium or profit”, he said.

QUICK CONTACT

COURSES OFFERED BY BAKERY UPDATE

TESTIMONIALS

OUR LOCATION

  • Plot No. 30/25, Knowledge Park - III,
    Greater Noida - 201306, Uttar Pradesh
    (NCR Delhi)-India
  • email@bakeryupdate.com
  • +91-120-2428800
Designed by Media Solutions