Britannia to foray into diabetic-friendly products

August 6th, 2011 - 11:16 pm ICT by IANS  

Kolkata, Aug 6 (IANS) Fast Moving Consumer Goods (FCMG) major Britannia Saturday said it would venture into diabetic-friendly products and set up several greenfield bakery factories including in Bihar, Orissa and Karnataka, a top company official said here Saturday.

Speaking to reporters after the company’s annual general meeting here, managing director Vinita Bali said high price of ingredients due to the food inflation had impacted it.

“The high prices of ingredients like wheat and sugar are affecting our margin and we want to improve the quality of our margins,” she said, adding that this made to play to foray into diabetic-friendly products.

The company’s profit margin was 4.4 percent as opposed to its net profit margin of 2.9 percent last year and the management was relying on cost effectiveness and efficiency to improve the margins.

Asked about the company’s investment, Bali said the amount pumped in would be targeted at generating a profitable growth.

Besides, Bihar, Orissa and Karnataka, the company had plans to set up bakery factories in some yet-to-be-decided location in western India.

Company chairman Nusli Wadia earlier told shareholders that the company was planning to consolidate its subsidiaries. “We are taking a relook at our subsidiaries as we have too many of them.”

Bali said the company has already taken up the job of consolidation of subsidiaries and some of them were now only legal entities set to be phased out over time.

The company posted 27 per cent net profit growth at Rs.42 crore for the first quarter of the current fiscal with the net sales going up by 21 percent to Rs.1,106 crore.

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