Britannia sets up first bakery unit in Gujarat

Food products major Britannia Industries has set up its first bakery products unitin Gujarat at Jhagadia Industrial Estate in Bharuch districtto cater to markets in Gujarat, Madhya Pradesh, Maharashtra and Rajasthan.

The Jhagadia plant, spread on over 26 acres with the investment of Rs 100 crore, has the annual capacity of 45,000 tonne, and has already gone on steam.

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“Setting up of the green field plant will help the company increase presence in Western markets and decentralise distribution activities for Western India,” Varun Berry, Chief Operating Officer (COO), Britannia Industries, told reporters last evening.

“Decentralisation of manufacturing facilities will help consolidate regional distribution costs and hence control overall logistics cost,” he said.

Berry said the market for biscuits is huge in India but its per capita consumption remains subdued in Gujarat and other states in the Western region.

Britannia products are available across the country in over 35 lakh retail outlets.

Berry informed that the company has requested governments of Gujarat, Tamil Nadu, Andhra Pradesh, Kerala to add biscuits to the menu of mid-day meal.

Berry also informed that Britannia plans to set up its manufacturing units in Erode and Perumudaria in Tamil Nadu owing to the highest per capita consumption of biscuits in the southern state.

The company recently invested in Odisha and Bihar to strengthen its position in the Eastern India.

Britannia’s biscuit brands include Tiger, Marie Gold, Good Day, 50:50, Nutrichoice and Treat.

“We expect this new initiative to start yielding results from FY'14. Company’s product categories are growing at 15 per cent while overall industry is growing at 10 per cent,” Berry said.

The company’s current market share is 40 per cent in the biscuit segment, he added.

PTI