Close on the heels of good results for FY ’2012-13, Britannia Industries on Monday announced key organisational changes as part of its initiatives to become a leading global food company from an Indian bakery and dairy company.
As per the statement issued on Monday, Britannia said the restructuring marks its intention to aggressively scale up its international operations and at the same time, increase focus on India operations to hike market share in the face of increased competition.
Britannia Managing Director Vinita Bali will, now onwards, focus on areas such as international business, Britannia Nutrition Foundation (BNF) and new business development. The India operations will be led by Chief Operating Officer Varun Berry, who recently joined the company.
Commenting on the restructuring, Bali said, “The new structure will help Britannia grow faster in India, while it also focuses on growth in the International markets and addresses new business opportunities for the company.”
Bali took over the company reigns in 2005 under difficult circumstances. Her endeavours to fortify biscuits with iron, vitamins and minerals by removing trans fats brought dividends to the company that its market cap catapulted more than double to $1.1 billion.
Britannia Industries reported a 48.6 per cent rise in net profit to Rs 92 crore for the March 2013 quarter, partly due to a fall in material costs.
Berry, who was Pepsico Foods India Chief Executive Officer, has 27 years of experience, having also worked with Hindustan Unilever.
According to Britannia Chairman Nusli Wadia, “With these changes, we are preparing Britannia for high growth in its India operations by catering to the changing food habits of the evolving Indian consumer and pursuing opportunities for growth in the overall food domain, here and abroad.”
According to analysts, Britannia wants to come out of sluggishness in the Indian market even though the claim is that there is no recessionary pressure. “The company wants to grow with some cost and innovation management. If Vinita Bali can give direction on this with her international experience, it is well and good,” an analyst said.
Shares of Britannia Industries on Monday closed at Rs 665.85 on the BSE, up 15.91 per cent from its previous close.