KOLKATA: Biscuits-maker Britannia Industries on Monday said it may consider shifting its proposed dairy plant to Andhra Pradesh, owing to delayed clearances by the Maharashtra government.
“We have waited for over a year now for the Maharashtra government to grant fiscal investments to us. But no decision has been taken yet. In the meantime, we had a word with the AP government for this project,” said Chairman Nusli Wadia on the sidelines of the company’s 99th annual general meeting. It has set aside Rs 300 crore as capex for the project.
Rather than limiting itself to biscuits, the company has set a target to evolve into a complete foods company, said Wadia.
To commemorate its centenary year, the company has lined up 50 new products to be launched in the next six months. It has set a target to sell 50 million packets every day, churn a Rs 100 billion topline with Rs 15 billion gross profit and Rs 10 billion net profit. The company expects its largest selling brand, Good Day, to overtake Parle-G in the next two to three years, which still dominates the market in terms of the volume of brands.
Elaborating on the company’s expansion plans, Varun Berry, managing director of the company, said that Britannia is in the process of opening a plant in Nepal, where it has already become the market leader after its recent entry. The company is also eyeing expansions across “many uncharted territories” including West Asian and North African markets to secure “disruptive growth”. Currently, the biscuit-maker has a presence in more than 79 countries.
Britannia closed the first quarter with a 19.41 per cent rise in its net profit at Rs 258.1 crore. Total income rose to Rs 2,585.84 crore from Rs 2375. 01 crore a year ago, according to a regulatory filing. “This was largely driven by a double-digit volume growth, primarily due to investment in brands and widening distribution network through focus on direct reach, rural market and weak states,” said Berry.
He further said the growth in dairy business has been subdued due to focus on driving value-added products and reducing play in the less profitable commoditised products, which has also supported profitability.
In a separate filing, the company said its board of directors will consider the sub-division of equity shares of the company with a face value of Rs 2 each on August 23. The firm has also offered non-convertible debentures as bonus debentures of Rs 60, carrying a maximum interest of 18 per cent.
According to Wadia, the company would be issuing over 12 crore bonus debentures of about Rs 720 crore.