Britannia plans to enter new overseas markets

Britannia plans to enter new overseas markets

Author | Source: Business Standard | Friday, Jan 25,2008 7:04 AM

Britannia plans to enter new overseas markets

Biscuit maker Britannia Industries is aiming to strengthen its international presence by entering new markets.

“Strengthening the business in the international market is our first priority and we would like foreign markets to grow substantially,” said Neeraj Chandra, Britannia India vice-president - sales, marketing and innovation, at the launch of a new variant - Tiger Banana in New Delhi today.

He also said that Britannia also plans to get into new geographies but did not give out details for the same.

The company has already acquired, in early 2007, 70 per cent stake in Dubai-based biscuit and wafer manufacturing company Strategic Food International (SFIC) and a significant stake in the Oman-based Al Sallan Food Industries.

The two companies are key regional players in the biscuit and cookies segment in the Gulf Co-operation Council markets and export their products across the world. SFIC offers over 55 varieties of biscuits, wafers and cookies with a product range of over 55 variants marketed in 70 countries spread over 6 continents.

“SFIC deals in marketing and manufacturing other companies’ products around the world and Britannia will also seek to benefit from the same,” Chandra said.

The company also formed a joint venture with the Khimji Ramdas Group, one of the largest business conglomerates in West Asia.

Britannia hopes that this would help the company to grow its international footprint by leveraging on the complementary strengths of the partners. The company also plans to enhance synergies with its existing partners.

Britannia also plans to focus on its dairy business, Britannia New Zealand Foods Company (BNZF), a joint venture with the Fonterra Co-operatives Group of New Zealand.

BNZF has a diversified product portfolio covering cheese, skimmed milk powder, butter and ghee, and has a significant market presence in India as well.

“Dairy is an important business for us and we will continue to build on that area,” Chandra said.

The company’s turnover in 2006-07 was Rs 2,200 crore with around 90-95 per cent coming from the domestic market.

Speaking about the new product launches and new categories, Chandra said that they were evaluating new options to grow the business and will be adding more variants to their existing brands along with scaling up the production.

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