Britannia to spend Rs 200-cr for capex

In a bid to take a leading position in the domestic biscuit industry, Biscuit major Britannia Industries Ltd has lined up new launches in the coming quarters and a capex budget of Rs 150-200 crore for the next two years, says a Business Standard report. “Our capex would focus mainly on innovation and capacity addition,” said Nusli Wadia, Chairman, Britannia Industries, during the AGM.
 
At present, Britannia’s biscuit manufacturing capacity is 74,000 tonnes a month. India's second-largest biscuit maker is also planning to focus on own manufacturing against its earlier policy of a larger pie of contract manufacturing. “We are also working on adding depth in our distribution in the cities and town, while efforts are on to increase our width in rural distribution,” said Varun Berry, Managing Director, Britannia Industries.
 
The company is also planning to exit from the loss-making daily bread business, which has 29 outlets. Vinod Menon, Vice President and Chief Financial Officer, explained, “We are primarily a fast-moving consumer goods (FMCG) company and we want to keep that intact. Daily bread business has caused a loss of about Rs 2 crore and we are looking to exit the business.”
 
FOR COMPLETE REPORT READ: Britannia eyes top spot, lines up Rs 200-cr capex