Britannia reinforces its focus on biscuits while planning consistent growth in dairy and bakery sectors.

Britannia Industries is intensifying its focus on its primary biscuit segment while also branching into new areas such as dairy and bakery, as stated by Executive Vice Chairman and MD & CEO Varun Berry. Discussing the company’s approach, Berry highlighted the necessity of balancing growth with affordability in a price-sensitive market such as India.

“Biscuits are our bread and butter. This has to grow aggressively,” Berry remarked, emphasizing that the company’s core business must stay robust even as it ventures into adjacent sectors like milk-based beverages, cheese, and other bakery items.

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Responding to nutritional criticism, Berry asserted, “There is nothing wrong with our products. It is wheat, oil and sugar… the cheapest form of food.” He underscored the necessity of addressing the needs of consumers at the base of the pyramid, where price sensitivity is vital. “We cannot say that we will add some additional ingredients and take this price from ₹10 to ₹20. That is going to be a price shock.”

Britannia aims to gradually expand its range to include healthier alternatives, yet without compromising on affordability or accessibility. “I am not saying healthy. I am saying healthier,” Berry clarified. He noted that while certain product lines like milk drinks have advanced well, others, such as cheese, still have room for growth.

Regarding performance metrics, the company is concentrating on two primary objectives – enhancing volume per outlet (VPO) and broadening reach. “We will increase our distribution by at least 100,000 outlets every year,” Berry indicated. While scaling in smaller towns, the aim is to either maintain or enhance average volumes per outlet by raising SKU counts in urban areas, from the current average of nine SKUs to at least ten.

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Britannia is also aiming to improve margins as inflationary pressures diminish. “We are in the top quartile of food company margins globally,” Berry pointed out, while cautioning against complacency. “You have got to make sure that you do not take the consumers for granted. Give them the product at the right price and keep an eye on competition.”

With a current market capitalization of ₹1.34 lakh crore and stock up over 3% in the past year, Britannia believes it is well-positioned for steady growth.

For the full interview, watch the accompanying video

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