Britannia Industries (BIL) managing director Varun Berry is stepping up R&D to launch new products in the next two quarters. To start with, BIL is setting up a new R&D centre in Bangalore. With sales of Rs 6,829 crore in FY14, BIL plans to invest Rs 400 crore over the next 18 months to build biscuit brands — it is setting up 11 new manufacturing lines this fiscal. It has also inked an exclusive tie-up with Amazon to introduce its new product, ‘Goodday Chunkes.’ In an interview with Lalitha Srinivasan, Berry talks about his plans. Excerpts:

You posted a 12.4 % increase in revenues in Q2 FY15. How do you plan to sustain this momentum?

A large part of this was on the back of volume growth. The growth has come from fundamental factors — good products made available widely at competitive prices.

Price increases in June were a minor contributor to overall growth. We believe these fundamental strengths, coupled with an anticipated turnaround in the general economy, will help us sustain growth. We also have a solid innovation and distribution agenda for coming months.

What’s the latest on your plans to invest Rs 150-200 crore in promotion?

We are executing these plans. We are investing in new technology, upgrading existing facilities and setting up a new R&D centre as part of this plan. Our total investment will be upwards of Rs 400 crore in the next 18 months.

You spent less on ad and promotion in Q2 FY15, reporting a 7.5% decline. Will there be an increase in ad spend going ahead?

Our commitment to brand-building and support is unwavering. However, advertising is primarily activity-linked. You will be witnessing advertising around the launches that we have planned, the first of which will be ‘NutriChoice Heavens.’

Will you increase your R&D spend in the next two quarters?

We are constantly working on new products and recipes to meet consumers’evolving needs. After the launch of ‘Goodday Heaven’, there will be more action. We will continue our R&D focus, including a new centre in Bangalore, for the rest of the year.

What are Britannia’s growth plans for the next two quarters?

We will be setting up 11 new manufacturing lines to manufacture biscuits. We plan to widen distribution, especially in rural belts. As for our inorganic growth strategy, we are working on several fronts but can’t share any more details.

You have just tied up with Amazon for the launch of ‘Good Day Chunkies.’ Tell us more about your e-commerce strategy.

The tie-up with Amazon will give us a lot of insights as to what this channel can offer. We are already available with many e-grocers and we continue to expand our presence there.