BackBritannia in talks to set up plant in Gujarat
Britannia plans to buy land for a new factory that will cater only to its overseas customers
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Bengaluru: Britannia Industries Ltd is in advanced talks with various Special Economic Zones (SEZs) authorities in Gujarat to buy land for a new factory that will cater only to its overseas customers.
The move comes at a time when Britannia is looking to boost its international sales and cater better to the Indian diaspora in 75 markets ranging from the US to Southeast Asia. Britannia wants its international segment to contribute as much as one-fifth of its overall revenue in five years, up from 6%, managing director Varun Berry said in an interview in November 2015.
The biscuit maker had annual revenue of ₹ 7,175 crore as of 31 March 2015.
Britannia currently depends on nine plants in India to supply to markets abroad. It also has two production facilities in the Middle East—Oman and Dubai.
Over the next year, it will start to cut dependence on existing plants and supply more from the planned unit in Gujarat, said Vinay Kushwaha, vice-president of supply chain at the company. “We have worked out our financials and held discussions with the various SEZ authorities—we are on the verge of buying land —plan is to kick-start by March (next year)," said Kushwaha.
Better manufacturing efficiencies, cheaper labour and government incentives on exports of processed foods are helping the company produce more in India and making exports far more profitable, he said.
“India is far more competitive and manufacturing for us here makes sense," said Kushwaha.
Britannia has already halted capacity expansion at its existing factories in the Middle East.
Investing in own plants is also part of Britannia’s attempt to have more control over its supply chain and boost product quality.
As little as five years ago, it depended on contract manufacturers for 75% of production.
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