Technoglitch
Core Member
Britannia will enter the snack, chocolate and breakfast segments in the next six months and open a new Rs.65 crore research and development (R&D) centre in February to spur innovation. It has beefed up its R&D team.
“Everything has to move quickly,” said the consumer goods veteran, who seems keen on shaking off Britannia’s reputation of being a laggard in innovation.
The newfound focus on innovation comes at a time when Britannia faces aggressive competition from Parle in the Hindi-speaking rural markets and a slew of other rivals from ITC Ltd to Mondelez International Inc. in other areas.
Expenses rose 9% between 2013-14 to Rs.6,297.02 crore (on a consolidated basis), as opposed to 11.25% in the corresponding year. Net profit more than doubled on a consolidated basis from Rs.259 crore (31 March 2013) to Rs.688 crore (on 31 March 2015). Operating profit margins have risen from 14% to 7.56%, in the same period.
Among several changes, large brands such as Good Day and Tiger have been granted a makeover to pip competition and ramp up small-town distribution. More such brands are under renovation.
The scale and scope of the re-branding exercise “has never been done before”, said Ali Harris Shere, director of marketing at the company.
The Indian biscuit market is largely dominated by value (glucose and cream) biscuits—such as ParleG and Tiger—that account for 46% of the overall market. Britannia’s market share here rests at 8-9%.
“It’s a large business in India at Rs.82,000 crore, even if you took out packaged milk, and look at value-added dairy products...still be about Rs.10,000 crore. In that kind of a size, we are doing right now is Rs.400 crore, which is neither here or there,” Berry said.
Britannia eyes chocolate, breakfast segments, to open new R&D centre - Livemint
“Everything has to move quickly,” said the consumer goods veteran, who seems keen on shaking off Britannia’s reputation of being a laggard in innovation.
The newfound focus on innovation comes at a time when Britannia faces aggressive competition from Parle in the Hindi-speaking rural markets and a slew of other rivals from ITC Ltd to Mondelez International Inc. in other areas.
Expenses rose 9% between 2013-14 to Rs.6,297.02 crore (on a consolidated basis), as opposed to 11.25% in the corresponding year. Net profit more than doubled on a consolidated basis from Rs.259 crore (31 March 2013) to Rs.688 crore (on 31 March 2015). Operating profit margins have risen from 14% to 7.56%, in the same period.
Among several changes, large brands such as Good Day and Tiger have been granted a makeover to pip competition and ramp up small-town distribution. More such brands are under renovation.
The scale and scope of the re-branding exercise “has never been done before”, said Ali Harris Shere, director of marketing at the company.
The Indian biscuit market is largely dominated by value (glucose and cream) biscuits—such as ParleG and Tiger—that account for 46% of the overall market. Britannia’s market share here rests at 8-9%.
“It’s a large business in India at Rs.82,000 crore, even if you took out packaged milk, and look at value-added dairy products...still be about Rs.10,000 crore. In that kind of a size, we are doing right now is Rs.400 crore, which is neither here or there,” Berry said.
Britannia eyes chocolate, breakfast segments, to open new R&D centre - Livemint
