Page 50 - ABFI March 19 issue

News
News
Round
Round-up-up
Britannia plans to give volume for similar price points,
especially highest selling packs
a salty twist to Time of Rs 5 and Rs 10.
Companies had earlier
Pass brand entered snacks category but in industry. The company’s
exited after a few months.
However, Berry said, “This journey towards becoming a
ritannia Industries, India’s In India, biscuits, snacks time, the outlook in the total foods company is gaining
Bbiggest biscuit maker, and dairy are the three segment, our capabilities and flavour with entry into new
plans to enter the Rs 24,000 largest categories in packaged the product characteristics are categories and geographies
crore per annum salty snacks consumer products and completely different.” and rising share of premium
market, which is dominated account for a third of the nearly In the past few years, products that will keep the
by Haldiram’s and Pepsico. It Rs 3.4 lakh crore market. In its the market has seen a shift company in good stead,” said
plans to launch salty snacks effort to become a “total foods towards traditional snacks a recent Edelweiss report.
under its existing brand Time company” the maker of Good as both multinationals and Berry, former head of
Pass soon as part of a strategy Day and Nutri Choice biscuits home-grown companies have Pepsi Foods, took charge as
to expand to non-biscuit has identified opportunities launched namkeen products. Britannia Industries CEO
segments. in all three segments. In the A year ago, Haldiram’s nearly five years ago; a time
“It will be a differentiated past few months, it launched displaced Pepsi as the when the consumer market
product range and we will swiss rolls, layer cakes, creme country’s largest snacking was slowing and the company
leverage on the fact that we wafers, croissants and milk firm. Britannia Industries had a portfolio of mostly
have about 80 factories making shakes in tetra packs. will compete mainly against premium products even as
our products. In snacking But unlike in biscuits, PepsiCo and ITC that operate many consumers were cutting
segment, transportation is where large players such largely in western snacking back spends on discretionary
the biggest cost but with our as Britannia, Parle and ITC segment such as potato chips, items. Since then, he has more
manufacturing footprint, our control more than 80% of the riblon and gathia, with brands than doubled the company’s
costs will remain tight and market, snacking segment has such as Kurkure and Bingo’s distribution reach, especially
efficient,” said Varun Berry, seen regional and state-specific Tedhe Medhe, and extruded, in the Hindi heartland where it
managing director at Britannia players with lower priced which includes cheese balls. was traditionally weaker, with
Industries, without divulging products eating away shares “If we take three years’ the result that the company
product range or details on of large companies. Regional average, then Britannia’s now directly reaches more
variants. snack brands offer 30% higher volume growth is the best than two million outlets.

'Green' food wrapper may consumer. The product is industry), Kesophane wood
is
manufactured
from
positioned as a substitute for
boost Kesoram turnover the existing food packaging pulp. allows moisture
It
options like foils and plastics.
It would be introduced in permeability while minimising
ygnet Industries Ltd., a turnover through B2C and B2B Bengaluru and Mumbai oxidation, making it an ideal
Cwholly-owned subsidiary sales of its newly-launched markets soon. green packaging option for the
of B.K. Birla Group Company biodegradable food wrapper. Already being sold industries. "We are looking at
Kesoram Industries Ltd., Called 'Kesophane', the institutionally (to incense stick a big way at the B2C segment
is eyeing a 10% boost to its company is targeting the retail makers and the fireworks and B2B segment in FMCG,
food industry and the pharma
sector for selling Kesophane,"
said H.K. Kandoi, financial
controller of the company.
"We are getting enquiries
from FMCG players and
also expecting demand from
institutions like hospitals
and hotels. Tea packers and
exporters are also looking
for biodegradable cellulose
transparent papers with value
addition," he said.

50 March 2019 AgriBusiness & Food i ndustr y