Britannia Industries Ltd. is scouting for locations in neighbouring countries as well as in West Asia and Africa, as part of its plan to enter new geographies.
A local facility in Nepal now under implementation.
Currently, Britannia is exporting to Nepal to meet demand for its products such as Good Day and other regular products. Known first for its biscuits, BIL is also present in breads, dairy, cakes and rusk.
BIL is looking at about ₹55 crore of investment in Himalayan nation to generate ₹60-₹70 crore revenue to begin with and scale that up to ₹100-₹150 crore in the next three to four years,”, BIL MD Varun Berry said in an earnings conference call.
He also said the company was looking at countries in West Asia and Africa where it can start operations by 2020. Within the country, the greenfield unit at Ranjangaon in Maharashtra will be ready by November. “Ranjangaon is going to be a food park for us,” Mr. Berry said. It would be an integrated, 150-acre facility for biscuit, cake, rusk, croissant, dairy and other products.
‘₹1,000 crore capex’
Backward integration facilities are also being contemplated at this unit. The total capital expenditure proposed is ₹1,000 crore, starting with a ₹350 crore expenditure in the first year.
An Edelweiss Securities research report said that Britannia was gearing up to become a total foods company. It said innovation and premiumisation, along with entry into new geographies like Nepal, where it has a 17% market share, would benefit the company.