Varun Berry aims to make Britannia a total foods company in 3 years by entering into new ventures and taking out of the box initiatives.
The company entered into a joint venture with a Greek company, Chipita SA to make long shelf-life croissants. The idea was to make a snack which is filling, delightful, an on- the- go kind of an offering.
Britannia has a young team which helps the company connect with consumers and bring innovations in everything they enter into.
The key to any FMCG company’s success, apart from great products, is a robust distribution network, and that is exactly what Britannia has been focusing on.
Britannia is very cost conscious. Apart from making sure that the distributors follow a zero-days inventory model the company also let go of third party resources both in sales and manufacturing.
Britannia has always focused on getting the backend right rather than new launches. This has resulted in efficiencies in sales and distribution.
While biscuits, where Britannia is market leader, will continue to be the mainstay, the company is looking at growing in not just adjacent businesses but also in dairy.
So what sets Britannia apart from other companies? Britannia’s spine is such that their cost is very tight. The company’s total margins are nowhere compared to what MNC’s used to. Britannia is highly structured such that they can support high gross margin products.