Britannia elevates Varun Berry to its Board

Britannia Industries, India's largest publicly held bakery company, has expanded its Board and elevated Varun Berry to the position of Executive Director, with immediate effect, in less than a year of his induction into the company. Berry currently heads the company’s India operations, joins the likes of Chairman Nusli Neville Wadia on Britannia’s now 13-member strong board of directors. 

 

Appointing Berry as an Additional Director of the company, is the third elevation given to him in eleven months. After joining Britannia on January 7 this year, Berry was designated Vice President and Chief Operating Officer with effect from February 1, with functions like marketing, sales and product development for Bread, Cake and Rusk. 

 

On May 28, 2013, he was made head of the company’s Indian operation which accounts for about 95% of the company’s close to Rs 6000 crore sales. Managing Director Vinita Bali who was heading the business until Berry’s appointment was handed the company’s international operations.  Berry’s elevation to the position of India head came at a time when Britannia was losing market share to ITC with its lower-priced product portfolio and older competitors like  Parle showing up their presence in the rapidly growing consumer products market.  Berry’s task in the company is not only to hold on and strengthen Britannia’s position as market leader but also scale up profitability in the firm. 

Berry's climb at Britannia Industries

Jan 7, 2013 - Inducted into Britannia from PepsiCo 

Feb 1, 2013 - Appointed Vice President and Chief Operating Officer 

May 28, 2013 - Appointed Head of India operations

November 11, 2013 - Inducted into the Board as Executive Director

Ever since Berry was given the baton of the Indian operations, there has been intense speculation that Vinita Bali may be stepping out of the company, after leading Britannia through 8-strong years. The company has however refuted such conclusions. 

 

In Berry’s favour is the company stock price performance that has been rallying throughout his tenure in the company. The Britannia scrip has doubled to touch a high of over Rs 972.50 a piece in October from Rs 464.85 mark in February. 

Britannia's  quarterly  performance post Varun Berry 

Q1 2013-14 

Revenue - Rs 1,416.31 cr Up 15 % (YoY)

Net profit -  Rs 86.29 Up 93 % (YoY)

Q2 2013-14

Revenue - Rs 1740.48 cr Up 13 % (YoY)

Net profit -  Rs 97.72 Up 66 % (YoY)

The last two quarters have seen Britannia increase its profits by leaps and bounds as well. The April to June period this year saw net profit for the maker of Good Day and Tiger biscuits grow profits by 93% on a 15 percent increase in revenue. The company’s second quarter results released on Monday showed the growth streak continuing with a 66% rise in profit on revenue growth of 13%. 

 

Apart from Chirman Nusli Wadia, the board at Britannia consists of.Managing Director  Vinita Bali, Directors A.K.Hirjee,  Ajai Puri and Avijit Deb. The Board also counts Jeh N Wadia,  Keki Dadiseth, Nasser Munjee, Ness Wadia,  Nimesh N Kampani, S.S.Kelkar  and Vijay Kelkar among its 12 members prior to berry’s appointment.

Berry joined Britannia after being CEO of Pepsico Foods for South Asia. Prior to that Berry was the CEO of the International Dairy and Juice business based in the Middle-East, CEO of Beverages and Foods in the Philippines, COO Pepsico, Vietnam and several sales operating roles in India. Before joining Pepsico in India in 1993, berry worked with Jumbo Electronics in the UAE and Hindustan Unilever in marketing and sales roles in India.