Britannia Industries Ltd is planning to strengthen its dairy and snacks portfolios in 2019 to re position the brand as a foods company. The maker of biscuits, bread and dairy products is considering new product launches and by ramping up its supply and distribution network.
One century old company has earned a majority of its revenue through the sale of biscuits. As per the recent business strategy, the company is planning to launch milk-based drinks and yogurts, besides cream wafers and croissants early next year.
Varun Berry, the managing director of Britannia, is focusing on introducing new products and categories. It is estimated that the India’s biscuit market’s worth is ?30,000 crore. Britannia is seeking to diversify its portfolio with dairy, breads, rusks and macro-snacking products.
In India dairy alone is a massive market with Gujarat Cooperative Milk Marketing Federation Ltd’s (GCMMF). Amul is leading the pack with revenue of about ?30,000 crore. As per the experts for Britannia’s the challenge is to enter the market at a bigger level in the presence of Amul and other regional brands.
The company’s new dairy head, Venkat Shankar said, “The way we see this business is not to play in the turf where others are strong, which is largely around liquid milk, but in the value-added segment only, and there we feel the game is wide open.”
Snacking is also a significant market. Britannia’s Jayant Kapre, who heads its breads, rusks, cakes and related business verticals, estimates the snacking market to be worth ?1 trillion and salty snacks account for ?24,000 crore.
Jayant Kapre said, “We’ve had snacks in the other space in the past and I have to say upfront that it’s a very difficult and complicated space to be in. We’ve done salty snacks a few years ago. We’ve seen other players come in and go out. So we want to decide whether we can make a meaningful play and do it well or else not do it at all.”