Britannia Industries, the country’s second largest food company has expanded its non-biscuit, non-dairy businesses to include cream-filled wafers and salty snacks in addition to cakes, rusks, bread and croissant and is looking at a higher revenue share from these segments. More extensions will be looked at in the coming days.
Britannia Industries estimates Rs 500 crore business opportunity over the next five years from the croissant segment. The company has formed a 60:40 joint venture with Greek firm Chipita. The products are manufactured at the company’s Ranjangaon unit near Pune.
Chipita is offering the technical expertise and recipes, while Britannia is looking into logistics, distribution and branding. The company has already invested Rs 100 crore to expand the business.
Jayant Kapre, vice-president and head adjacency business, Britannia Industries Limited said, “Croissant is potentially a frontrunner for us. We expect to garner a lot of business. While there is an existing player in the segment, it is not a large business as of now (estimated at less than Rs 150 crore). We think this can be a very big and significant segment. We are focussing in accordance to this belief.”
The company has launched croissant in two flavours — vanilla and chocolate.
He also added, “Over a five-year period, there is definitely a Rs 500-crore opportunity for us. This necessitates further expansion. We don’t grow in categories without a manufacturing support plan. If the segment becomes big enough we will need more lines and place them based on demand.”