Famous Indian biscuits manufacturer Bitannia will increase its prices in the next financial year to balance a rise in major ingredient prices, managing director Varun Berry said.
The organization, known for its Good Day and Bourbon buiscuits, said flour and sugar costs had surged around 15% and 30% respectively in the most recent three months, in the wake of having dropped for a few months before that when commodity costs all in all dropped.
Berry said cashew costs had been rising notwithstanding when product costs stayed low. Flour, sugar and cashew make up around 45% of the crate of items the company buys.
In the most recent quarter, Britannia’s margins slipped 37 points to 13.11%, from 13.48% in the past quarter. In any case, in the seven quarters preceding that, the working edge had risen relentlessly to 13.48% from 7.7% two years back.
Berry, who was reserved in from PepsiCo three years prior, said cost increment would have an “external breaking point “of 3%. “It won’t be uniform over the portfolio; it will be higher in a few classes where we have not raised costs for a few years.”
On the dairy business, Berry said he was not happy with the development. The organization will look for board endorsement inside of a few months to make an extra speculation of Rs 300 crore in the business. The organization offers dairy items worth Rs 400 crore and purchases dairy results of Rs 300 crore for its bakery business.”We might want to make it a Rs 1,500 crore business in the following six years, contributing around 15% to the income from only 5% right now.”