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Britannia Industries, the country’s largest biscuit-maker, will invest ₹ 300 crore as capex towards its dairy business. While it will invest towards an integrated unit either in Maharashtra or Andhra Pradesh, a substantial investment will also go towards setting up of a cold chain network.
According to Nusli Wadia, Chairman, Britannia Industries, the company is mulling the possibility of shifting its dairy unit from Maharashtra to Andhra Pradesh. Delayed clearances by the Maharashtra Government has been an issue for the company.
“We are yet to take a call on whether to set up the dairy project in Maharashtra or Andhra,” he told reporters post the company’s 99th Annual General Meeting.
Britannia will not enter into fresh milk segment, but will look at value-added products. The company will also spend on capex and up the ante on new products that include rusk, cakes, croissants and dairy products.
“We will grow by strengthening our brands. That is what we have done so far,” Wadia said.
“Good Day is likely to be no 1 biscuit brand in the country, beating ParleG in the next few years,” he added.
Way Forward
To celebrate its 100 years of establishment, the company has opted for a new logo. This apart, Britannia will also launch a slew of new products over the next six months. At least 50 new products have been lined up.
The board of directors, meanwhile, has recommended and approved issue of secured redeemable non-convertible debentures as bonus debentures of ₹ 60 in the ratio of one bonus debenture for every one equity shares held. The scheme, however, needs the approval of NCLT.
The board has also decided to consider a share split. A board meet on August 23 to consider sub-division of equity shares of the company will be held. The present face value of equity shares is Rs 2 each.
Q1 results
Britannia Industries has reported a near 18 per cent jump in standalone net profit to ₹ 246 crore for the quarter ended June 30, 2018. Net profit for the corresponding quarter last fiscal stood at ₹ 209 crore.
Net sales (standalone) for the quarter under ₹ 2387 crore. According to a notification to the bourses, the sales are not comparable on account of implementation of GST and a change in accounting standards.
However, on a comparative basis, net sales saw a 15 per cent, year-on-year, jump.
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