Food and beverage major Britannia Industries' third quarter consolidated net profit climbed 36.5 percent year-on-year to Rs 137.3 crore on strong operating income. The company’s operating performance was ahead of street expectations while topline and bottomline were in line.
Speaking to CNBC-TV18, Varun Berry, Managing Director, Britannia Industries says the company embarked on a strategy about eight quarters ago and that is aiding the company’s performance.
”The key elements of the plan were that revenue grows faster than the market; volume grows faster than the market, building a very robust distribution system which was providing depth for our products in the urban markets and width in the rural markets. On both fronts we are moving very rapidly. The third was putting money behind mega brands,” he adds. Berry adds expectations were sky-high that the new government would be able to provide new vigour to growth and demand, but that hasn’t happened yet. However, he is optimistic on seeing a demand revival in mid-FY16.
"There are a lot of other segments like cake and rusk. Both these segments are very small and they are ready to be exploded and guess who explodes them, it will be the market leader- us. So, we have to think about how we are going to stir up demand in these segments; that is a big potential and a big opportunity for us," explains Berry.
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