Britannia views current slowdown as opportunity

During the current slowdown, when most FMCG firms are treading cautiously and struggling to retain market share, Britannia Industries is seeing it as an opportunity.

The company plans to turn the depressed sentiment into a chance to ramp up market share.

According to Varun Berry, the company’s managing director, smaller players, that hold 27 per cent of the ~30,000 crore biscuit market in the country, will “struggle a bit” to retain their hold.

“It will be an opportunity to strengthen our market share further. We have traditionally been weak in the north and west but strong in the east and south,” Berry said.

He is of the view that local producers face distribution, liquidity and production issues while this Wadia Group company has “deep pockets”.

The firm will push for introducing new categories as well as dominance in markets where it has lesser presence.

Britannia is estimated to have a one third market share in the overall biscuits category.

Moreover, while it is strong in urban markets, its share is lower in rural areas.

Contrary to other FMCG companies cutting down on their advertising and marketing spends, Britannia has decided to retain its expenses on branding.

“It is important that we continue to spend on brand building despite times like this,” he said. In fact, during the company’s annual general meeting (AGM), its Chairman Nusli Wadia had stated that it would continue to focus on brand building activities despite muted market conditions as this exercise is in “long term interest of the company”.

Wadia said the company was evaluating opportunities of setting up overseas manufacturing units, including in Bangladesh and other South East Asian nations.