Britannia Mulls Entry Into Flavoured Milk

The Nusli Wadia-promoted Britannia Industries Ltd, as part of its on-going diversification and upgradation drive, is looking at flavoured milk as the next addition to its product profile.

After cheese and dairy whitener, which were introduced last year to mark the company's entry into the dairy segment, butter was launched early this year in Delhi. Speaking to newspersons after the company's 79th annual general meeting (AGM) yesterday, Sunil K Alagh, managing director, said Britannia was in the process of conducting in-house studies for the flavoured milk product and a final decision would be made on completion of the study. However, the product was very much on the anvil, he added.

 

Alagh emphasised that Britannia's thrust would be on getting out of non-core segments and focusing on consolidating the brand equity of 'Britannia' in bakery and dairy operations. Citing the instance of the Chekkers brand, Alagh said: "We want to give customers value-added products and the upgradation process is aimed at achieving this." However, the company's sales performance was under pressure last year due to the continuing economic slowdown in the country.

While volumes have grown by about 12 per cent due to expanded capacities, sales of all products were affected during the first half of the year. Last year, the company also entered into the mass market category with its 'Tiger' brand. Addressing shareholders, Nusli N Wadia, chairman, Britannia Industries, said the company expects to increase its turnover quantitatively over the next years as an outcome of its upgradation and diversification drive.

On performance in the dairy segment, he said the company has been able to capture 30 per cent of the market share in its first year of operation.

Britannia has also coined the slogans 'The Better Butter' and the 'Butter Alternative' for promoting its brand of butter which will be launched in Mumbai shortly. For the present financial year, the company has chalked out a capital expenditure programme of Rs 36 crore. The company also secured shareholders' approval for increasing the borrowing limit of the board to Rs 300 crore.