Britannia plans to improve margins: Bali

Britannia plans to improve margins: Bali

Hyderabad: Britannia Industries Ltd, which posted a net loss in the quarter to March and a decline in fiscal 2010 profit, has prepared a two-pronged strategy to improve margins, managing director Vinita Bali said.

Revenue management includes increasing the mix and margins of differentiated products, she told reporters in Hyderabad on Monday. The second initiative—cost reduction—is aimed at improving productivity and eliminating wastage.

Bali said Britannia had cut costs by around Rs180 crore and will continue such programmes. “Improving operational efficiencies is something I believe is an ongoing process," she said.

For the fiscal to March, though sales improved by 10.2% to Rs3,770 crore, profit fell 31.78% to Rs103 crore, largely owing to sharply higher input costs.

Bali said Britannia’s dairy products division is likely to be a significant contributor to sales going forward. The division now contributes less than 10% to revenue.