Britannia's Rural Reach: The Race to a 50-50 Sales Split

Britannia aims to equalize its urban and rural sales within 3 to 4 years by expanding its distribution network. The company's focus on rural markets stems from their growing aspiration for urban-like consumption. Currently, rural areas contribute 40% to sales, expected to reach 50% soon.

Britannia Industries is aiming for a major shift in its sales strategy by equalizing rural and urban contributions over the next 3 to 4 years. The company's Vice Chairman, Varun Berry, stated that rural markets are becoming increasingly pivotal, already accounting for 40% of sales, with aspirations for a 50-50 split.

Berry highlighted the growth potential in rural areas, driven by aspiration for products similar to urban consumers. While previously, Britannia's sales were heavily urban-focused at a 75-25 split, the current 60-40 urban-rural ratio is set to balance as rural expansion continues at a faster pace than urban growth.

The company's strategy involves enhancing direct distribution to villages with less than 3,000 residents, aiming to bypass intermediaries. This expansive reach, coupled with predicted relief from GST changes, underpins Britannia's ambitious rural strategy, touching three million retail outlets and growing.

(With inputs from agencies.)