Britannia To Increase Prices To Combat Slowdown
FMCG major Britannia Industries plans to increase prices of its products marginally in the third quarter of the current fiscal year to tackle the slow down which has taken a toll on the growth of its sales in value terms, a company official said on Thursday. He said that the slowdown had been witnessed in the last five to six months and the period till January would "not be easy".
"In the third quarter, slight increase in prices will happen", Vinay Subramanyam, head (marketing) of Britannia Industries told reporters here. Biscuit as a food product is price elastic and has a huge market penetration across the country, he said adding that the growth in sales of the company had halved in terms of value as a result of slowdown.
"We have started seeing the slowdown five to six months back. The next five to six months are not going to be easy and there is lack of optimism", Mr Subramanyam said.
He said the company is "watching the situation very closely and expecting a positive impact of the monsoon". Besides marginal price increase, the company would also go for cost optimisation, he said.
"We have to be more efficient in operations including reduction in logistics expenses. Despite the slowdown, the company had been gaining market share and will continue to focus on major brands," he said.
Mr Subramanyam said Britannia's market share across the country was 33 per cent, putting it in the leadership position and the eastern India is "an important market for the company".
