Sources told The Financial Express that the Rs 1,000-crore plus company may also make some of its other products, possibly including butter, available nationally.

In the mineral water business, Britannia is likely to derive benefit from the Danone name, which is a major shareholder in the company. Industry analysts said that although it already has a diverse product category, Britannia could hold a significant presence in mineral water as well, primarily because of its strong brand presence.

Coming to its mainline business, the company increased its turnover from dairy products by over 80 per cent in the past year. In its efforts to consolidate its position in its cheese and dairy whitener business division, the company also went in for a nearly 100 percent increase in production at 6111 tonnes (1998-99).

The entire range of products in the company's portfolio witnessed growth in the past year. Apart from the growth in dairy products, which essentially include cheese and dairy whitener, its cake and rusk production also increased by 24 per cent to 2809 tonnes.

Having a significant presence in the bread category, Britannia has been trying to acquire a stake in Modern Foods, which is up for disinvestment. Sources said that other companies, such as Hindustan Lever Ltd, have also expressed interest in buying a stake in Modern Foods. Britannia's production of breads, which declined in 1997, registered a seven per cent increase in 1998-99 on account of improvements in the product recipe. The company had to face stiff competition from small-scale manufacturers in this category.

Biscuit volumes crossed 167,000 tonnes during 1998-99, up by 16 per cent from that in the previous year. The growth in volumes was primarily due to the success of the Tiger brand ofbiscuits. Its cashewnut variant has got a good response.

According to market sources, its new product the flavoured milk tetrapack was faring well. Named Zip-Sip, the milk comes in various flavours such as chocolate, elaichi, pineapple, mango and strawberry. The chocolate taste seemed to be a hit, said sources.

`Snax', the newly launched namkeens, has penetrated the market despite strong competitors such as Bikaner Bhujiawala and Haldiram. Apart from them, there are a plethora of small-scale and unauthorised players in namkeens who operate at local levels.

Britannia is also concentrating on developing the overseas markets for core biscuit products and cheese.

The company, which went in for major World Cup promotion schemes, increased its sales by Rs 1,000 crore (22 per cent) in 1998-99 from that in 1997-98.

As part of its ongoing industrial restructuring programme, the company spent about Rs 2.18 crore during 1998-99. The main focus was to upgrade and expand the manufacturing facilities withemphasis on new product technology.

The foods major was also looking into forays in other lines of business, such as the manufacture of all kinds of sports goods, devices, equipment, apparels and other items related to indoor and outdoor sporting activities. This could be through joint ventures too.

The company has declared a bonus issue of Rs 9.28 crore in the proportion of one equity share for every two equity shares held.