Britannia plans Rs 200 cr expansion

Britannia Industries is planning to invest Rs 200 crore over next 2-3 years to expand its production capacity.

The Nusli Wadia-Groupe Danone of France joint venture is also looking at acquisitions in overseas and domestic markets.

Vinita Bali, managing director, said the company would pursue a combination of organic and inorganic growth for few years.

She was talking to reporters after the 87th annual general meeting of the company.

Britannia formed a strategic alliance with Bangalore-based CCD Dairy Bread (P) Ltd last month.

Bali informed that Britannia would eventually increase its stake beyond 50 percent in the Bangalore company.

"CCD Dairy Bread is an instance. We are looking for more such acquisitions in India covering a larger domain.

"But in the international market we will look at acquisitions in our core areas of biscuits and bakery," she said.

On future plans, she indicated that the company could enter into other areas of foods.

Earlier, addressing shareholders Britannia chairman Nusli Wadia said that the company wanted to diversify into other areas of foods from biscuits and cakes and become a total foods company.

Bali informed that Britannia had already launched Italian ice cream under the brand name Deluca in Channai.

"The brand was owned by CCD Dairy Bread. Now after the acquisition of CCD the Deluca brand belongs to us in India," she added.

On capacity expansion, Bali said the company was looking at expanding own capacity and entering into more outsourcing contracts.

"In 2-3 years, we envisage an investment of Rs 175-200 crore in capacity expansion," she said.

Britannia has manufacturing units in Kolkata, Uttaranchal, Delhi and Chennai.

According to Bali, the company was expanding capacity from 3,800 ton per month to 5,000 tonne per month at its Uttaranchal facility.

The company is also putting up contract manufacturing units in Guwahati, Asansol and Kolkata in the eastern region.

"Our strategy is to be close to the market," she added.

The Britannia managing director also informed that the company was planning to give a special thrust on its power brands for better margins. The company has six power brands - Good Day, Treat, Marie, Milk Bikis, Tiger and 50-50.