Hit by rising input costs of wheat, sugar and other commodities, cookies-to-dairy major Britannia Industries has now turned its focus on new products and high-margin innovations to improve profitability.
The company saw its sales nearly double over the last four years, even as its net profit stagnated during the period.
"We are taking steps to enhance our margin and profitability even as we generate high double-digit growth," said Vinita Bali, managing director, Britannia Industries."The economics of the industry have been challenged by inordinately high levels of commodity inflation (wheat, sugar, dairy products etc)," said Bali. "We are addressing this through an aggressive cost effectiveness programme that spans the entire value-chain, while simultaneously improving our revenue mix."
To counter rising cost challenge and intense competition, the cookie maker has hiked prices by more than 15% since late last year.
The company has used a mix of direct price increase in some cases and reduction of pack weights in others.
The company also introduced cookies for diabetics, savories that are baked and more.