Britannia to expand in West Asia

Britannia Industries plans to acquire a majority stake in two bakery product companies in West Asia.

This is the second such move by the company this year, the first being acquisition of 50 per cent stake in the Bangalore-based bakery chain Daily Bread.

In July this year, Britannia had picked up the stake in Daily Bread which was held by Cafe Coffee Day in a deal valued at Rs 8.5 crore.

A company statement said the new acquisition was consistent with Britannia's growth strategy of expanding its international presence.

According to Vinita Bali, CEO, Britannia, the target company had a mass-market biscuit brand and also cookies.

She said Britannia had entered into an in-principle agreement with the group and will share further details of the deal on execution of the pact.

The West Asian company, the name of which has not been disclosed, is a mass market player in the biscuits and cookies segment, and complements Britannia's Marie biscuits range.

Britannia is a major player in the domestic foods market with a leadership position in the bakery category.

Its brand portfolio includes Tiger, Marie Gold, Good Day, 50:50 and Treat.

The company recorded a turnover of Rs 1,818 crore in the year ended March 31, 2006, and has grown at a rate of 26 per cent in the first two quarters of the year.

Operating margins of the company, however, have come crashing down owing to rising input costs.