Britannia Plans to Enter Salty Snacks Market

Britannia is planning to enter the Rs 24,000 crore per annum salty snacks market, which is currently being led by Haldiram’s and Pepsico. The company’s plan is to launch salty snacks under its existing brand Time Pass by next month. It is trying to explore a strategy to expand to non-biscuit segments.

Britannia

Britannia Plans to Enter Salty Snacks Market

Varun Berry, managing director at Britannia Industries said, “It will be a differentiated product range and we will leverage on the fact that we have about 80 factories making our products. In snacking segment, transportation is the biggest cost but with our manufacturing footprint, our costs will remain tight and efficient.”

The company has launched swiss rolls, layer cakes, creme wafers, croissants and milk shakes in tetra packs, in last few months. In India, the packaged consumer market is led by mainly three categories i.e. biscuits, snacks and dairy. In biscuits, large players such as Britannia, Parle and ITC control more than 80 percent of the market, snacking segment has seen regional and state-specific players with lower priced products eating away shares of large companies. Regional snack brands offer 30 percent higher volume for similar price points, especially highest selling packs of Rs 5 and Rs 10.

Berry also said, “This time, the outlook in the segment, our capabilities and the product characteristics are completely different.”

The market has seen a shift towards traditional snacks as both multinationals and home-grown companies have launched namkeen products. A year ago, Haldiram’s displaced Pepsi as the country’s largest snacking firm. Britannia Industries will compete mainly against PepsiCo and ITC that operate largely in western snacking segment such as potato chips, riblon and gathia, with brands such as Kurkure and Bingo’s Tedhe Medhe, and extruded, which includes cheese balls.

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