Biscuit maker Britannia Industries, which has hiked prices 5-20% across its product offerings in the first quarter this fiscal due to commodity price inflation, plans to raise prices again in the second quarter.
Managing Director Vinita Bali told FE that there is no end in sight for the runaway spiral in cost of inputs like sugar and flour. She added that this time the price hike could be in the range of 5-20%.
When the food price inflation hovered around 14% in the first quarter of 2010, the company coughed up an additional Rs 65 crore due to spike in prices of wheat and sugar.
In the battle against inflation, the company is trying all possible measures including strengthening of alternate procurement channels like buying directly from third party producers to cap the input cost.
?We already go for toll model in processing, where raw materials procured where sent to the toll processing companies and shipped back to minimise in-house operating costs. We are also looking at all kinds of savings in production and distribution logistics,? she said.
Stating that the company plans to re-enter the Sri Lankan market, Bali said the market has a capability to add Rs 200 crore to the top line.
?The recipe is to go for a creation of simplified brand and marketing in that market. Initially, the products would be exported from India and later, the conditions would be expedited for localised manufacturing.?
The company is scouting for suitable locations to house its proposed two greenfield projects, she said:
?The announcement was made in the first week of this month,and we are scouting for strategic locations for the new units,? she said.
The company is keen on dialogue to resolve the ongoingTaratalla rent-hike dispute between Britannia and Kolkata Port Trust in West Bengal, she said.