Varun Berry, Britannia Industries: Rural market share grew at a faster clip than Urban

Varun Berry, Vice Chairman and Managing Director, Britannia Industries, said “We come out of a challenging financial year that witnessed consumption slowdown, particularly in rural India.”

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| August 3, 2024 , 10:01 am
Addressing rural consumption and growth, Berry emphasized on the expansion in distribution footprint and product offerings to align with regional preferences, to benefit consumption.
Addressing rural consumption and growth, Berry emphasized on the expansion in distribution footprint and product offerings to align with regional preferences, to benefit consumption.

Food major Britannia Industries on August 2 reported a consolidated net profit of Rs 524 crore for the June quarter, a growth of 14.5 percent from the same quarter of the previous financial year at Rs 458 crores. The company’s revenue came in at Rs 4,130 crore, rising 4 percent, the company said in a regulatory filing as compared to Rs 4,010.70 crore in Q1 FY25.

Varun Berry, Vice Chairman and Managing Director said in the company statement, “We come out of a challenging financial year that witnessed consumption slowdown, particularly in rural India. Our performance this quarter reflects the agile approach to a dynamic market environment and diligent market practices. Our market share progressed well as an outcome of sustained investments in Brands, Product excellence, and Innovation.”

Addressing rural consumption and growth, Berry emphasized on the expansion in distribution footprint and product offerings to align with regional preferences.

He said, “We continue to make positive strides in Rural as we expand distribution footprint and enhance product offerings to align with regional preferences, and well positioned to benefit from the consumption growth in Rural. As a result, rural market share grew at a faster clip than Urban. We are actively leveraging the rapidly growing Modern Trade and E-commerce channels, both growing handsomely compared to previous year. Additionally, we introduced the Pure Magic Stars and Golmaal variant during the quarter, which have contributed to heightened consumer excitement and strengthened our brand franchisee.”

On Cost & Profitability front, Berry said the firm remains vigilant of the commodity price fluctuations and evolving geopolitical landscape: “Our Cost Efficiency Program continues to yield operational savings, ensuring robust operating margins. We are committed to investing in capability enhancement and brand development while maintaining price competitiveness with the clear objective of driving market share and sustaining profits.”

Recently, The National Skill Development Corporation (NSDC) and Britannia joined hands for an initiative that aims to empower approximately 25 lakh women across India, providing them with the skills, knowledge, and resources needed to start and grow successful businesses. The Women Entrepreneurship Program initiative, aims to tackle the challenges faced by women in entrepreneurship by offering crucial skills, knowledge, and networking opportunities.

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