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Britannia to increase prices "marginally" to beat slowdown

Britannia will marginally increase the price of its products to tackle slowdown. The company would also go for cost optimisation.

Britannia biscuits
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Published : Aug 22, 2019, 5:14 PM IST

Updated : Aug 22, 2019, 6:30 PM IST

Kolkata: FMCG major Britannia Industries plans to increase prices of its products marginally in the third quarter of the current fiscal to tackle the slowdown which has taken a toll on the growth of its sales in value terms, a company official said on Thursday.

He said that the slowdown had been witnessed in the last five to six months and the period till January would "not be easy".

"In the third quarter, slight increase in prices will happen", Vinay Subramanyam, Head (marketing) of Britannia Industries told reporters here.

Biscuit as a food product is price elastic and has a huge market penetration across the country, he said adding that the growth in sales of the company had halved in terms of value as a result of slowdown.

Read more:Kia Motors launches Seltos; price starts at Rs 9.69 lakh

"We have started seeing the slowdown five to six months back. The next five to six months are not going to be easy and there is lack of optimism", Subramanyam said.

He said the company is "watching the situation very closely and expecting a positive impact of the monsoon".

Besides marginal price increase, the company would also go for cost optimisation, he said.

"We have to be more efficient in operations including reduction in logistics expenses. Despite the slowdown, the company had been gaining market share and will continue to focus on major brands," he said.

Subramanyam said Britannia's market share across the country was 33 per cent, putting it in the leadership position and eastern India is "an important market for the company".

Kolkata: FMCG major Britannia Industries plans to increase prices of its products marginally in the third quarter of the current fiscal to tackle the slowdown which has taken a toll on the growth of its sales in value terms, a company official said on Thursday.

He said that the slowdown had been witnessed in the last five to six months and the period till January would "not be easy".

"In the third quarter, slight increase in prices will happen", Vinay Subramanyam, Head (marketing) of Britannia Industries told reporters here.

Biscuit as a food product is price elastic and has a huge market penetration across the country, he said adding that the growth in sales of the company had halved in terms of value as a result of slowdown.

Read more:Kia Motors launches Seltos; price starts at Rs 9.69 lakh

"We have started seeing the slowdown five to six months back. The next five to six months are not going to be easy and there is lack of optimism", Subramanyam said.

He said the company is "watching the situation very closely and expecting a positive impact of the monsoon".

Besides marginal price increase, the company would also go for cost optimisation, he said.

"We have to be more efficient in operations including reduction in logistics expenses. Despite the slowdown, the company had been gaining market share and will continue to focus on major brands," he said.

Subramanyam said Britannia's market share across the country was 33 per cent, putting it in the leadership position and eastern India is "an important market for the company".

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UK-NIRAVMODI
Nirav Modi to appear via videolink for remand hearing in UK
By Aditi Khanna
         London, Aug 22 (PTI) Fugitive diamantaire Nirav Modi, wanted in India in connection with the nearly USD 2 billion Punjab National Bank (PNB) fraud and money laundering case, is set to appear before a UK court for his customary 28-day remand hearing on Thursday.
         The 48-year-old is likely to be informed of the dates for his trial on the extradition charges brought by the Indian government, being represented at Westminster Magistrates' Court in London by the UK's Crown Prosecution Service (CPS).
         Modi has been lodged at Wandsworth prison in south-west London since his arrest in March on an extradition warrant executed by Scotland Yard.
         Chief Magistrate Emma Arbuthnot had presided over the last remand hearing at the court via videolink from the prison where Modi is being held, during which she had indicated that the dates for an estimated five-day trial would be mutually agreed by both sides soon.
         As per the timelines discussed during the brief hearing, the judge said she expected to receive all the evidence and skeleton argument bundles in the case by April 8, with a five-day hearing then expected to be slotted in May next year.
          There are likely to be a number of case management hearings ahead of that but meanwhile a planned case management hearing for next Monday was vacated as not required.
         Under the UK's law, Modi is expected to be produced before the court every four weeks.
         Modi has previously had his bail rejected multiple times, the fourth and final time being by the UK High Court last month.
         In her judgment handed down at the Royal Courts of Justice in London, Justice Ingrid Simler had concluded there were substantial grounds to believe that Modi would fail to surrender as he does possess the means to abscond.
         Reiterating similar concerns as those previously raised by Westminster Magistrates' Court during earlier bail attempts, Judge Simler ruled that after considering all the material "carefully", she had found strong evidence to suggest there had been interference with witnesses and destruction of evidence in the case and concluded it can still occur.
         "The applicant has access to considerable financial resources, supported by an increased [bail bond security] offer of 2 million pounds," the judge noted.
         The High Court judge stressed that while it was not for her to take a "definitive view" on the evidence, she had proceeded on the basis that the government of India has acted in good faith in what is undoubtedly a serious case and a sophisticated international conspiracy to defraud, together with money laundering.
         Modi was arrested by uniformed Scotland Yard officers on an extradition warrant on March 19 and has been in prison since. During subsequent hearings, Westminster Magistrates' Court was told that Modi was the "principal beneficiary" of the fraudulent issuance of letters of undertaking (LoUs) as part of a conspiracy to defraud PNB and then laundering the proceeds of crime. PTI AK

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Last Updated : Aug 22, 2019, 6:30 PM IST
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