FMCG major Britannia Industries will set up two greenfield plants, one near Erode in Tamil Nadu and the other in Bengaluru, Karnataka, at an estimated investment of ₹250 crore.
According to Varun Berry, Managing Director, the new units are likely to be ready by December and will have a total capacity of 100,000 tonnes per annum.
This is part of the ₹500-crore capex that the company has planned during the fiscal.
“We are looking at a 10 per cent volume growth annually. For this, we need to add at least 80,000 tonnes (or a 10 per cent addition) to our total capacity each year for the next few years,” he told reporters during a press conference afterits AGM here.
The company, currently, has a total capacity of 800,000 tonnes per annum across 14 of its own plants and 28-30 contract manufacturing facilities in the country. Apart from the two proposed units, it is also expanding production capacity at its Gujarat unit.
Other owned and contract manufacturing facilities too, would be ramped up to cater to the increased requirements.
“Apart from expansion of our existing capacities, some 15-odd contract manufacturing facilities may be scaled up too. We will take a call, in some stage, on the smaller contract manufacturing facilities,” he said.
This apart, the company will also invest ₹45 crore towards setting up research and development facility at Bengaluru. This facility will focus on innovation and new product development.
Good Day re-launch Britannia is also planning to re-launch its “Good Day” brand of biscuits soon. Good Day is the largest selling brand for Britannia, and garnered retail revenue of ₹2,000 crore in 2014-15.
Meanwhile, helped by operational efficiencies, the company reported a 56 per cent jump in standalone net profit to ₹168 crore for the first quarter ended June 30, 2015. It stood at ₹108 crore in the year-ago-period.
Total income from operations during the period under review stood at ₹1,847 crore, a 13 per cent rise, against ₹the ₹1,634-crore it reported in the corresponding quarter last fiscal.
The consolidated net profit rose by 67 per cent to ₹190 crore (₹114 crore) for the April to June period. Consolidated revenue moved up by 13 per cent to ₹2,003 crore (₹1,773 crore) in the first quarter of the fiscal.