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Britannia planning new mfg units overseas

PTI Kolkata
Updated: 09-08-2019 21:21 IST
Britannia planning new mfg units overseas

Britannia Industries Ltd on Friday said it is evaluating opportunities of setting up overseas manufacturing units, including in Bangladesh and other South East Asian nations. The FMCG major is also mulling domestic expansion in the eastern part of the country, Chairman Nusli N Wadia said.

"We have already set up a plant in Nepal, and are seriously looking at Bangladesh and other South East Asian countries. We are evaluating opportunities in Africa... and plan to step up our endeavour on the international side," Wadia said at the 100th AGM of the company here. Britannia Industries exports products to 70 countries.

He said West Bengal also features as one of the locations for its new facility in the east, but firming up plans in the state depends on "the facilities Bengal gives us". Later, talking to reporters, Managing Director Varun Berry said Britannia had initially zeroed in on Kharagpur in West Bengal for the plant, but the general slowdown in the economy has pushed back expansion plans for the region.

"We are setting up a second plant in Bihar, which should be commissioned in a year and a half... Next likely stop is Kharagpur, but it may take at least a year if at all that location is final," Berry said. He said the proposed facility in the east will make biscuits and "adjacent categories" and will entail an investment of around Rs 150 crore.

Elaborating on the international expansion, Berry said the manufacturing unit in Bangladesh will likely to start operations in the fourth quarter of the 2019-20 fiscal. Britannia will focus on setting foot in one new geography every year, the MD said.

The top company official also said rising raw material costs will push up prices of its products in the current fiscal. "On an average, there has been a 4 per cent general inflation in input cost... Milk prices have completely shot through the roof... We will undertake a 4-5 per cent hike across the portfolio this fiscal," Berry said.

Talking about capital expenditure, he said the company will spend Rs 1,500 crore over the next three years in its new facility in Ranjangaon, Maharashtra. The company on Friday reported a 3.64 per cent on-year decline in consolidated net profit at Rs 248.64 crore for the quarter ended June 30.

Total income during the period under review stood at Rs 2,767.8 crore, up 7.03 per cent, as against Rs 2,585.84 crore in the year-ago quarter..

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)