Britannia eyeing new international markets

The Indian food products manufacturer is looking to invest between US$57 million and US$71.5 million over the coming year to expand production capacity and develop new products

August 6, 2018

Britannia is looking to enter the fast-growing markets in India’s neighbourhood, West Asia, those in the South Asian Association for Regional Cooperation nations as well as in Africa

The company got into international market in 2007 when it acquired capacity in the United Arab Emirates and Oman. Britannia is currently setting up a US$7.9 million plant in Nepal

Britannia is planning to start offering premium bakery items such as croissant by end-2018. For this, Britannia set up a US$15 million joint venture with Greece-based Chipita in 2017

The FMCG sector is the fourth largest sector in the Indian economy, during 2017-18, India’s exports of agricultural and processed food products totalled US$18.4 billion

Britannia Industries plans to invest between US$57 million and US$71.5 million over the coming year to expand production capacity as well as develop new products. The announcement were made on August 6 on the sideline of the company’s 99th annual general meeting. The Indian food products manufacturer is also looking to expand into new international markets, the company’s managing director Varun Berry told the Hindu BusinessLine in an interview. Britannia, which is already present in West Asia, is looking to expand into Africa and Southeast Asia. The expansion comes as part of the company’s target to double the percentage of income from international business as part of total to 15 per cent by 2023.

The company got into international market in 2007 when it acquired capacity in the United Arab Emirates and Oman. Britannia, which is currently setting up a US$7.9 million plant in Nepal, is looking to enter the fast-growing markets in India’s neighbourhood, West Asia, those in the South Asian Association for Regional Cooperation nations as well as in Africa. Going ahead, Britannia aims to start operations in at least one new international unit every year. Encouraged by the improving affordability as well as widening options base, the company is planning to start offering premium bakery items such as croissant by end-2018. For this, Britannia had set up a US$15 million joint venture with Greece-based Chipita in 2017.

Another Indian Fast-moving consumer goods (FMCG) company Parle Products has already set up manufacturing in Africa. Britannia currently exports to more than 80 countries, around 13 of which were added last year. The company had set up an export unit in the western state of Gujarat. Indian FMCG giants have given tough competition to foreign giants such, driven by their increasing investment and competitive products. The FMCG sector is the fourth largest sector in the Indian economy, with the retail market in India estimated to reach US$1.1 trillion by 2020 from US$840 billion in 2017. Meanwhile, during 2017-18, India’s exports of agricultural and processed food products totalled US$18.4 billion.