Britannia Industries Ltd and Dabur India Ltd are expanding their food and beverage portfolios and increasing their capacity.
Following its recent joint venture with French cheese producer Bel, the newly established Ranjangaon facility, manufacturing of dairy products like curd and dairy whiteners has begun, according to the earnings call on February 7th, 23. The business has introduced new paneer in portions of West India. A line for cheddar cheese will be launched at the Ranjangaon facility in Q1 FY24, and the processed cheese line will be ready in the second part of FY24, according to the business.
Commenting on the Bel joint venture, Varun Berry, executive vice-chairman, and managing director, Britannia stated, “We are working on the joint branding how the goods and the package designs are going to appear. We are developing the organizational structure and training the workforce. We are preparing our portfolio not just for the immediate launch, but also for the next two to five years.”
Britannia, one of the country’s leading biscuit manufacturers, has been broadening its portfolio by expanding into adjacent categories such as nibbles (wafers and croissants) and dairy. The company’s present biscuit to non-biscuit salience to the top line is 77% and 23%, respectively; in a few years, it will be 75% and 25%.
The attempt by corporations to increase their presence in the branded foods and drinks sector comes as demand for packaged goods drove growth in the FMCG market in the December quarter, with positive volume growth reported.
It has been noted by the market that packaged food launches are increasing as huge consumer goods businesses aim to capitalize on expanding demand for ready-to-cook meals, snacks, edible oils, pulses, and juices, as customer preferences move from unbranded to branded items.
Recently, Reliance entered the packaged foods market as well.
On the same day, Dabur India announced ambitions to expand its beverage business in preparation for the summer season. According to Nuvama Institutional Equities analysts in a 2 February study, the firm anticipates its food business to reach 500 crores in the next three to four years. Meanwhile, the company’s beverage division (excluding juices and nectars) is forecast to reach 200 crores this year.
“This season, we are increasing our capacity—at our Pantnagar factory. We are establishing a new facility for aerated drinks in Indore and Jammu for our 10 and 20-price-point drink packs. So, I believe we are almost ready. Surplus capacity is accessible outside, and we can always outsource if we are unable to scale up. “I don’t anticipate we’ll have any capacity issues in the summer,” Dabur CEO Mohit Malhotra said.Dabur to be sure offers a diverse portfolio of foods and beverages, including the Réal and Activ lines of juices and fruit-based beverages, as well as the Réal Fizz line of aerated fruit drinks. It has the Hommade line of culinary pastes, Dabur ghee, cooking oils, chutneys, pickles, and spices under foods. In FY22, the company’s foods and drinks portfolio had net sales of Rs. 1,312 crores.