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GST authorities have issued a demand notice of Rs 6.37 crore to Britannia Industries, and the company is exploring legal remedies. The bakery food company received the order from the Office of the Commissioner of CGST & Central Excise, Thane on Monday, according to a regulatory filing from the company. The order has been passed under Section 74 of the GST Act for FY 2020-21 to FY 2023-24, alleging non-payment of tax due to "incorrect classification" of goods supplied. "The tax and penalty quantified in the order amount to Rs 2,12,40,000 and Rs 4,24,80,000 respectively, totalling to a demand of Rs 6,37,20,000 in addition to the applicable interest," Britannia said. However, this will have " no material impact on the financials, operations or other activities" of the company, said Britannia, which owns popular brands such as Good Day, Tiger, NutriChoice and MarieGold. "The order is appealable and the company shall take necessary actions, including exercising the legal remedies ...
Bakery company Britannia Industries will invest to fight the "regional competition" against small players and in e-commerce to become stronger in product categories like biscuits, rusk, cake, croissants and wafers. As part of its strategy, Britannia will have a "startup mentality" to compete with small players having influence in small pockets, said Managing Director & Chief Executive Officer Rakshit Hargave. "We are going to be fighting regional competition, we are going to be investing in e-commerce, yes, that will require more funds. We are committed to invest that. We believe that the opportunity for us to drive topline better is definitely there," said Hargave in an investors' call. He stressed that driving topline growth was critical to expanding Britannia's consumer base across its portfolio of brands, and the company would take a "pragmatic view" of balancing ambition with resources. Britannia, which owns popular brands such as Good Day, Tiger, NutriChoice and MarieGold, .
With competition from regional players intensifying, Britannia Industries is taking a localised approach of looking "at India not just as one country but as many countries within" to stay ahead of rivals and scale up the strategy going forward, according to Vice Chairman & Managing Director Varun Berry. Britannia, maker of Good Day, Marie Gold, and Tiger biscuits, would not go for a price war; it would leverage its brand strength, execution, and network of 70 factories and a vast distribution spread across the country, making its product available down to the lowest population strata, he said. About margins, Berry said it has gone up through cost optimisation initiatives. Britannia has been doing cost optimisation of almost 2 per cent of revenue saving for almost last 13 years. "And as we go forward, we are looking at seeing if we can continue with that 2 per cent, and we certainly have a line of sight to do that," said Berry. Moreover, commodity inflation on input materials is ...