FMCG major Britannia Industries Ltd is looking at an upward price revision on a range of its products due to soaring commodity inflation, said Vinita Bali, managing director of Britannia Industries.
Speaking to FE, Bali said ?We have been impacted by the swing in commodity prices in the third quarter current fiscal. If you look at our numbers, close to Rs 50 crore was adjusted due to a hike in commodity prices, barring which, we could have declared a much higher profit. We have to manage margins, which we will do through a combination of price adjustments and improving operational efficiencies.?
Bali said the company, which had made price adjustments last year, was expecting to further tune prices over the current quarter in the range of 4-8% on several of its brands. ?Prices have already been adjusted, and we expect further adjustment to come into the market this quarter. Quite a few of our products will see a price hike of anywhere between 4 ? 8%,? said Bali.
According to her, the manufacturer of popular biscuit brands such as 50-50 and Nutrichoice had been affected primarily due to a rise in sugar prices, which shot up to Rs 39 per kg compared to Rs 17 per kg a year ago along with an increase in the price of milk and wheat over the last quarter.
The company said there may also be adjustments in quantities with a few of its products. ?We may make adjustments in the quantity of a few of our products, although I can not definitely state if that will or will not happen,? Bali said. She added the company would not be making any cuts in investments towards branding and advertising.