Britannia Industries, leading bakery and biscuit product maker, has shifted its North American export business from Oman to India at Mundra, Gujarat, said its Managing Director and Chief Executive Officer Rakshit Hargave.
To manage the crisis at West Asia “we have moved our manufacturing to Mudra”, said Hargave in the analyst call on Friday.
Besides, the maker of Good Day, Marie Gold, Milk Bikis, Tiger, is also considering a price hike, to offset around 20 per cent hike in the fuel and packaging costs, on account of geopolitical issues.
Britannia, will hike the price in both ways — by reducing the grammage (for price points) and increase prices of large packs.
“Yes, selectively we will have to take price increases. And this includes both grammage adjustment and some of the packs which are above Rs 10, some kind of a price increase.” Harrogave said though wheat, a key raw material, is a bit deflationary.
However, fuel is highly inflationary, similarly laminates, used for packaging is also high due to disruption in the global supply chain following the war at Iran.
“Palm oil is also higher, although we are covered, but we know that palm oil has a connection with fuel prices. Sugar is more or less normal,” he said.
Besides, fuel is also a “challenge” Hargave said, adding, “we use LPG, we use PNG, and the inflation of that is openly available in the market, which is also what we are having to pay.”
Exports hit by Strait of Hormuz closure, demand remains strong
During the quarter, the company had an impact on exports from the closure of the Strait of Hormuz.
“So, we are quite confident that we will do better this quarter,” he said.
Company officials said the demand in urban-facing channels remain strong despite the rural softness.
Over the channels, he said quick commerce has been a bright spot in the e-commerce for the last few quarters.
“We are building this momentum and acceleration for the last few quarters,” he said, adding, “Almost 70 per cent of our (online) business today is coming from the quick commerce part of e-commerce.” Hargave now expects this to “further move up to 85 per cent” because, Amazon is scaling up their play in hyperlocal delivery format.
Quick commerce is also helping the company premiumise its assortment and is able to sell much more indulgent categories.
Britannia Industries had on Thursday reported a 21.56 per cent rise in consolidated net profit to Rs 679.68 crore for the March quarter of FY26 and its sales were up 7 per cent to Rs 4,685.95 crore. Its consolidated revenue in FY26 was Rs 19,375.62 crore.