Britannia Industries has identified six “pillar brands” to power its growth strategy. New brand variants and packaging format like pouches and entry into new product categories like speciality breads and frozen desserts is expected to give it volume growth in the domestic market.
Each of the six top brands in BIL's portfolio - Good Day, Tiger, 50:50, Treat, Milk Bikis and Marie Gold have been showing double-digit growth. “We would like to grow into new categories like breads, rusks and cakes, in addition to biscuits,” Vinita Bali, managing director, BIL said at a press meet on Tuesday.
“We have also received good response to brand variants. For example, Pepper Chakka, a new variant of 50:50 and Good Day cup cakes have proved successful. Britannia has also patented the technology for Marie Gold Double, a recently launched three layered chocolate-orange flavoured biscuits,” she said. Keeping in mind consumer habits and requirements, BIL has introduced single serve, and smaller packs for key brands.
“We are also trying out new packaging formats like pouches, she added. The company has already test launched pop-able biscuits in pouches in Tamil Nadu. The concept has proved to be a success and is likely to be rolled out nationally too. Apart from organic growth, BIL is also hungry for more acquisitions, both in India and abroad. The company recently acquired a strategic stake Bangalore-based Daily.
“We are interested in appropriate buys. There are no potential targets as of now. But we would be interested if it is the right target at the right place,” Ms Bali said. BIL's recent acquisition of Daily Breads, a Bangalore-based boutique manufacturer, is a step in that direction. “Daily Breads has eight outlets in Bangalore.
We are planning new outlets in Mumbai and Delhi and also looking at opening Daily Bread counters in leading convenience stores,” Ms Bali said. This acquisition marks Britannia's entry into the high end freshly baked gourmet food. Earlier, speaking at the company's 87th annual general meeting Nusli Wadia, chairman BIL said, “The branded players in the organised sector comprise a 15-lakh tonne biscuit market and they recorded a growth of 11-13% last year.
In value terms, biscuits make up a Rs 5,000 crore segment out of the country's Rs 60,000 crore FMCG sector.” BIL is estimated to have a 39% share of this market in value terms, followed by Parle with an approximate share of 35%.