Britannia Industries is planning to set up a separate entity and team over the next six months to invest in startups and emerging companies across categories and platforms.
Speaking on this, Britannia’s Managing Director Varun Berry said, “We will consider looking at infusing small investments in startups across platforms; the details are being worked out.”
The company is also planning in the same way as the Unilever did. Unilever Ventures is the venture capital and private equity arm of Unilever, Marico Innovation Foundation invests in startups through a scale-up programme. The startups space has been a hunting ground for established consumer goods companies.
Berry also added, “While the company witnessed a slowdown post-Diwali, demand has returned and the slew of measures announced in the interim budget on February 1is expected to trigger rural consumption over the next two quarters. We expect double-digit volume growth with consumption picking up as we are in an election year. We hope inflation will be fewer than 5 percent as we head towards elections, but it will depend on the government’s policies.”
Britannia announced the net profit growth of 14 percent year-on-year at Rs 300 crore, and a 7 percent rise in volume growth. However, on a three-year average which includes the demonetisation year, growth has been higher than Dabur
Berry said, “Expansion in rural markets, accelerating innovation, portfolio premiumisation and bridging gaps in its bakery and snacking businesses would be core focus priorities.”