FMCG major Britannia has said that it aims to grab a larger share of the glucose biscuit market in India.
During an investor call after announcing its Q4 results for FY21, Varun Berry, MD, Britannia Industries, outlined the company’s plan for its relaunched product Milk Bikis.
“Till a couple of years back Milk Bikis was a large brand only in certain parts of the country such as Tamil Nadu and Kerala, but now we have decided to take it aggressively across the country,” he said addressing the investors.
"We have launched a 100% atta product and this needs to be a product that takes on not just the milk category but also glucose," Berry added.
Britannia through Milk Bikis presently has a 26 percent share in the milk category, which is sized at Rs 1200 crore a year, Berry informed, but the company only has a four percent share in the milk and glucose segment put together.
“We see huge potential here even if we increase our share to 8 percent,” he said.
Earlier this month, Britannia had reintroduced Milk Bikis and launched a campaign across television, digital and outdoor mediums, featuring actor Pankaj Tripathi, to promote it. Parle Products owned Parle-G is the largest player in the glucose biscuit in the country and Britannia will be pitted against the brand as it tries to attain a larger share for Milk Bikis.
Berry, however, denied that the company is competing with Parle-G.
“Parle-G is too large for us to target; however, we are offering an atta product and trying to upgrade the consumers,” he said.
Britannia also has a presence in the glucose biscuit market through its brand Tiger Glucose Biscuits. The company plans to give similar pricing to both the brands, however, would offer a lower quantity for Milk Bikis, to maintain its premium positioning over the glucose brands such as Parle G and Tiger.
Britannia Industries reported consolidated profit at Rs 360.1 crore for the quarter ended March 2021, missing the CNBC-TV18 poll estimate, which pegged it at Rs 425 crore. Its profit declined by 3.3 percent compared to Rs 372.3 crore in the corresponding period last year, due to lower-than-expected operating performance.
The FMCG major reported consolidated revenue growth of 13.2 percent for the year FY21 (the COVID year) at Rs 13,136.14 crore and consolidated profit growth of 32.8 percent at Rs 1,850.59 crore compared to the previous year.
