Britannia plans expansion in Africa and Middle East by 2020
The company has proposed a total capital expenditure of Rs 1,000 crore to execute the plan.
July 05, 2018 / 11:49 AM IST
Britannia Industries is looking to expand its business in neighbouring countries as well as Africa and Middle East as part of the company's plan to enter new geographics, The Hindu reported.
The firm is planning to start operations at these locations by 2020.
The company has proposed total capital expenditure of Rs 1,000 crore to execute the plan. Over Rs 350 crore will be spent in the first year, the report said.
The firm has a local facility in Nepal, and Britannia exports products such as Good Day to the neighbouring country to meet growing demand. The firm currently has a 17 percent market share in Nepal.
Britannia is looking to invest about Rs 55 crore in Himalayan nation to generate over Rs 70 crore revenue and scale that to about Rs 150 crore in the next four years, Britannia MD Varun Berry said in an earnings conference call.
He added that the greenfield unit at Ranjangaon in Maharashtra will be ready by November. “Ranjangaon is going to be a food park for us,” Berry said, adding that the 150-acre facility would be an integrated space for biscuit, cake, rusk, croissant, dairy and other products.
Meanwhile, an Edelweiss Securities research report said that growth of the company
has accelerated by more than 250 basis points and Britannia is gearing to become a total foods company. It added that its entry in Nepal and new geographies including the Middle East and North Africa, would benefit the company.