Slump in UAE, N Africa hits Britannia exports

While the business in UAE and in some parts of North Africa is being ?adversely impacted? due to global economic slump, Britannia Industries is hopeful of making it up in other overseas markets.

The FMCG major earns R220-225 crore from overseas business and is keen on garnering larger market share in geographies like West Asia, South-East Asia, Africa, Australia and North America. It is also planning to expand the range of products and open new channels of distribution in key overseas markets.

The company, which was bullish about its business in West Asia, especially in UAE, had to take some hit in sales due to global economic meltdown. ?The West Asia business continued to be adversely impacted by the challenging global economic uncertainty and a real population decline in UAE,? Britannia?s non-executive chairman Nusli Wadia told shareholders.

The company acquired Strategic Foods International two years back and has been trying to garner a sizeable share in the $136-million biscuit market in UAE since then.

During 2010-11, Britannia was able to increase sales in the Gulf Cooperation Council (GCC) by 6.5%. While Strategic Food International managed to increase sales by 12% to R134 crore during last fiscal, it posted a net loss of R18.5 crore during the year.

Oman based Al Sallan Food also recorded a lower sales in 2010-11 owing to high commodity prices and ?challenging global scenario?. Al Sallan?s sales during 2010-11 was R86.9 crore compared to R 92.4 crore in 2009-10.

Vinita Bali, managing director of the company, said, ?The advantage of operating in 45 markets is you take the highs and lows and you manage it as a portfolio. We have opened up in markets like Australia, Canada which are far more stable than West Asia.?

?While Libya is going through turmoil but Afghanistan is getting better,? she added. While Bali did not comment on the growth rate expected for the international business Wadia told shareholders, ?The recent upheaval in North Africa has adversely affected business in some markets which will be made up in other markets.?