Britannia to set up three new units
Britannia Industries is setting up three new green field manufacturing units at Bihar, Orissa and Karnataka to boost its production capacity that would support the robust demand for its products across the country. Vivek Sinha reports. Feeding a healthy demandbusiness Updated: Sep 20, 2011 02:05 IST
Britannia Industries is setting up three new green field manufacturing units at Bihar, Orissa and Karnataka to boost its production capacity that would support the robust demand for its products across the country. These new manufacturing facilities will become operational before the end of this fiscal year to make a wide array of Britannia products such as biscuits and cakes.
“Each of these new plants will entail an investment of around Rs50 to Rs80 crore,” Vinita Bali, managing director, Britannia Industries, told HT.
Bali added that as company's sales grew by 22%, "… the challenge is to create enough capacity to support that growth. It is in this context that we have got a fairly aggressive plan where we are setting up completely new green field units."The new manufacturing units are coming up near the capital cities — Patna, Bhubaneshwar and Bangalore — of the three states. The Bihar unit is already complete.
Britannia sells around 20 million individual packs per day across its product portfolio and has witnessed about 22% growth rate across categories. "India is now on a consumption overdrive and is willing to experiment," said Bali.
Bali added that growth for the company in tier-II and tier-III cities is a bit higher than that in urban areas. "Food in India is very ethnically determined and the rural versus urban differentiation is a bit outdated," she said.
Bali also said that even Delhi is not a homogeneous market such that there exist many Delhi(s) within one Delhi. "In a consumers democracy, consumer vote everyday where they are going to put their money and which brands to buy."