Britannia in integration mode after acquisitions
Britannia is fast integrating its operations after a few relevant acquisitions in the Middle East and south India, reports Saurabh Turakhia.
Britannia is fast integrating its operations after a few relevant acquisitions in the Middle East and south India. The company and its associates acquired majority stakes in Dubai-based Strategic Foods International LLC and Oman-based Al Sallan Food Industries in March 2007.
Vinita Bali, managing director of Britannia, told
, "Firstly, the number of distributors have been reduced from three to one. Secondly, seven to eight Britannia executives across sales, marketing, technical, finance and systems have been deployed to manage the operations in West Asia. The general manager, Arvind Kumar, continues with his role."
Bali said that initiatives were on to make optimum use of available resources. "We are looking at synergising the front-end and the back-end and going to the customer with a single face. Moreover, we are also taking some decisions that make economic sense. For example, our 'Treat Fruit Rollz' product that is sold here is made in Muscat as it is cheaper to make it there. We have taken similar decisions for other products based on where they could be made at a comparatively lower cost. Economics and not geography is the driver for us," she said.
In India, after striking a strategic alliance with Bangalore-based Daily Bread, a company that manufactures and retails premium breads, cakes and gelatos, Britannia is now ready to expand the presence of the brand in other states. "We have already gone to Delhi and Hyderabad. We would also look to introduce more premium desserts and chocolates under the same brand." Bali justifies the acquisition because of a growing out-of-home consumption.
Throwing more light on the company's strategy, Bali said, "We are driving what we have already done a lot harder. We have created new capacities for rusk products after we found that there is a lot of demand for it in the south market. We have also tested
in Kolkata. We will respond to changing consumption patterns by thinking of new points of sale and more consumption occasions." For the year ended March 21, 2007, the company's topline sales grew at 27.5 per cent. Its net profit stood at Rs 1076 million.