Britannia to set up new units for expansion

Biscuits major Britannia Industries on Monday said it would increase capacity by 20 per cent by expanding existing operations and going to new sites.

"We want to augment capacity by 20 per cent in line with volume growth," Britannia Industries Managing Director Vinita Bali said, adding that the details would be finalised in a few weeks.

Speaking to reporters after the company's 91st annual general meeting here, Bali said Britannia has invested nearly Rs 70 crore (Rs 700 million) to Rs 80 crore (Rs 800 million) on an average in the last few years.

"That trajectory of investments will continue", Bali said. Asked about the impact of rise in input costs, Bali said in the first quarter of FY10, the costs of wheat, milk and sugar increased by Rs 65 crore (Rs 650 million) over the same period last fiscal.

Of that, rise in input cost of sugar alone was Rs 45 crore (Rs 450 million). When asked whether Britannia would raise product prices due to rise in input costs, chairman Nusli Wadia said, "We can't raise it alone. There are efforts to cut cost. We are cautious about raising prices." Wadia said Britannia is looking at registering a 20 per cent growth in topline in FY11.