Britannia Takes Localized Approach to Tackle Competition
Britannia Industries is intensifying its localized strategy to tackle competition, focusing on leveraging its brand strength and extensive network. With cost optimization, it improves margins while avoiding price wars. The company is also consolidating its product categories, prioritizing stability before expanding into new markets.
Amid growing competition from regional entities, Britannia Industries is adopting a localized strategy, treating India as a collection of diverse markets to maintain its competitive edge. Vice Chairman and Managing Director Varun Berry shared this strategic direction, emphasizing the importance of leveraging the company's brand strength and extensive distribution network.
Eschewing price wars, Britannia aims to optimize costs, maintaining a 2% revenue-saving target annually. Despite stable commodity inflation, the company's focus on profitability remains unshaken. Berry believes the majority of new players falter due to unsustainable business models, and their localized strategy allows them to counter regional competition effectively.
Britannia is consolidating its current product categories, particularly in adjacent areas like Rusk and waifers, before considering new launches. While the dairy segment hasn't met expectations, it still achieved significant turnover growth. Future investments will be strategic, aligning with existing capacity before any new capital expenditures are made.
(With inputs from agencies.)
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