Feb 13, 2013, 04.38 PM IST | Source: CNBC-TV18

Britannia aggressively investing behind its brands

Aided by a stronger portfolio mix, biscuit-to-bread major Britannia has seen its toplines grow 17 percent year-on-year this quarter. Buoyed by this, the company is looking to keep up the momentum by aggressively investing behind its brands. It is careful about growing inorganically, reports CNBC-TV18 Farah Bookwala.

Aided by a stronger portfolio mix, biscuit-to-bread major Britannia has seen its toplines grow 17 percent year-on-year this quarter. Buoyed by this, the company is looking to keep up the momentum by aggressively investing behind its brands. It is careful about growing inorganically, reports CNBC-TV18 Farah Bookwala.

Vinita Bali, MD & CEO, Britannia Industries believes that investing behind brands is very critical to our business. They invest behind brands in two ways, the one is advertising and promotions and the other thing is the backend capacity.

Also read: No signs of slowdown; growth to continue: Godrej Consumer

They have created the backend capacity to support the brands and the business. This year they have two completely new Greenfield units coming up in Patna as well as in Khurda in Orissa. Also there is a new one coming up in Jhagadia in Gujarat. They have extended and expanded lines in some existing manufacturing units. Bali points it as the investment behind brands.

She emphasises that acquisition is not the goal. "Acquisition, if it helps to activate our strategy, where the value is going to be accretive and where it will add something. If acquisition enables us to widen the portfolio of what we are selling, only then it makes sense", she adds. Otherwise they find an organic growth of 15-17 percent with the kind of improvement in the bottom-line profile quite attractive.

Britannia stock price

On April 17, 2014, Britannia Industries closed at Rs 883.90, up Rs 4.70, or 0.53 percent. The 52-week high of the share was Rs 972.50 and the 52-week low was Rs 539.00.


The company's trailing 12-month (TTM) EPS was at Rs 30.53 per share as per the quarter ended December 2013. The stock's price-to-earnings (P/E) ratio was 28.95. The latest book value of the company is Rs 53.07 per share. At current value, the price-to-book value of the company is 16.66.

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