Nusli Wadia wants Britannia to be Cookie King

13 Aug,2014

By A Correspondent

 

India’s second-largest biscuit maker Britannia Industries plans to invest Rs 150-200 crore over the next two years to overtake Parle and become market leader, chairman Nusli Wadia told shareholders at the company’s 95th annual general meeting on Tuesday.

 

Britannia’s share of the biscuit market increased by more than 1.2 percentage points in the last fiscal. “The difference with Parle is just 3%, which is not much and we want to bridge it in the next three years,” Mr Wadia said.

 

Over the next two years, Britannia will use the investment to launch new products, expand capacity and upgrade technology, he said.

 

“We should grow faster than the market, which was not possible in the last few years, but we managed it last fiscal when we outgrew both by volume and value,” Mr Wadia said.

 

Britannia embarked on a turnaround strategy last year after inducting veteran executive Varun Berry into the management team. Mr Berry was designated managing director in April. Mr Wadia said the Daily Bread Gourmet Foods subsidiary, which sells premium bakery products through its own stores in Bangalore, may be shut or sold off.

 

“The Daily Bread business is not a shining star and a business we do not need to stay in. We will take a call soon,” he said. Daily Bread reported sales of around Rs 20 crore last fiscal and made a loss of around Rs 3.3 crore. Britannia Industries has made a provision of Rs 20 crore for diminution in the value of its investment in Daily Bread.

 

Source:The Economic Times

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