Won't slowdown, building a Britannia for the future: Nusli Wadia
Britannia wants to set up a new plant in the East and step up presence in Northeast, Wadia said.
Addressing shareholders during the company's 100th annual general meeting held here on Friday, Wadia said the spending is to meet long term goals and hence is like capital investment.
"We are already number one (in biscuits) by value share, market share and profitability and want to further strengthen that," he said.
Growth in FMCG sector has slumped in the past four quarters in a row since July-September 2018, both by value and volume, as consumers shifted to cheaper daily essential brands in the urban markets and rural growth slowed.
Value growth, or revenue earned, fell from 16.5% in July-September 2018 to 10% in the June quarter this year, according to market researcher Nielsen.Growth by volume, or the number of packs sold, dropped from 13.4% to 6.2% in the same period.
Britannia wants to set up a new plant in the East and step up presence in Northeast, Wadia said. "The new plant could come up in West Bengal too in case we get good facilities and benefits," he said
Wadia said the company is targeting 4-5% of its net sales value from new products on an annualized basis. "We also want to step up international presence. We are looking at Bangladesh and other southeast Asian nations as well as evaluating opportunities in Africa," he said.
Britannia also want to increase investment on the dairy business to take on competition. "We are putting up a dairy plant in Ranjangaon and investing on supply chain and distribution for this business," he said.