Tiger now comes in two varieties --cashew and plain.

Alagh, talking to reporters after the company's annual general meeting here today, said the company is also seriously considering a proposal to launch mineral water.

"For us the strategy has been to bank more on volumes than profitability. And this would be possible only by introducing new products as well as maintaining our share in the existing range," he said.

According to Alagh, the company was planning to broadbase its category to cater to the rural segments. "We have just introduced the Tiger Oro priced between Re 1 and Rs 1.50 in some places in Uttar Pradesh and plan to launch similar biscuits in other states as well," he said.

"The acquisition of Modern Foods if possible will allow us to leverage a lot on additional volumes across the country. Among other products, mineral water is being given serious thought. The company would make any product of the Danone range," said Alagh.

French foods giant Danone, which along with Britannia chairman Nusli Wadia is the largest shareholder in Britannia, is also a leading manufacturer of mineral water under brands like Evian, Volvic and Danone.

However, Britannia may bring its own brand of mineral water with the Danone expertise, said the managing director.

Earlier, addressing shareholders at the 80th AGM, Wadia said there were four key points to help the company maintain a healthy growth rate. These included achieving higher volumes, going in for new launches, improving its dairy business and diversification into related areas.

"Bakery volumes grew by 16 per cent last year. The Tiger brand launch yielded results beyond our expectations. Measures of cost cutting reflected on the company's bottomlines substantially," said Wadia.

"The new businesses of the company has transformed the status of Britannia from a biscuit company to a food company," he added.

During the year to March 31, 1999, Britannia's turnover rose to Rs 1030.14 crore, from Rs 847.83 crore the previous year, with dairy products' production showing the highest growth of 84 per cent to Rs 69.62 crore. Production of biscuits, Britannia's mainstay with 84 per cent of total turnover, rose from Rs 725 crore to Rs 862 crore.

The number of products in the company's portfolio has increased over the last one year. Apart from dairy products like cheese and dairy whitener, Britannia's cake and rusk production increased by 24 per cent to 2809 tonnes.

According to Wadia, the company's most recent product, a flavoured milk tetrapak branded Zip-Sip, is doing well.

Total sales volumes increased by 22 per cent in 1998-99 on the previous year following major World Cup promotion schemes.

The company has declared a bonus issue of Rs 9.28 crore of Rs 10 each in the proportion of one equity share for every two equity shares held.