Britannia Industries managing director Varun Berry said the recent GST restructuring will strengthen the position of organized FMCG players and help market leaders like Britannia gain share, even as the short-term impact of destocking normalizes by the end of the year.
Speaking at an analyst call, Berry noted that nearly 85% of Britannia’s portfolio was affected by the change in GST slabs, with the tax rate on biscuits and other FMCG items reduced from 18% or 12% to 5% on September 22. The shift, he said, initially led to supply chain disruptions as distributors and retailers paused purchases to adjust to new MRPs, but demand is expected to stabilise in the October–December quarter.
“There will be market share gains because this move will benefit organised players,” Berry said. “It gives us an upper hand in terms of growth and competitiveness.”
Berry added that rural markets continue to outperform urban areas, with general trade remaining the company’s most profitable sales channel. “That is our big muscle, and we’ll continue to focus on it,” he said.
Vipin Kumar Kataria, Chief Commercial Officer at Britannia, said the company plans to expand its rural presence through direct distribution. “With affordability and value improving under the new GST structure, our rural growth will accelerate,” he noted.
Britannia, which recently announced the appointment of Rakshit Hargave as CEO effective December 15, reported a 34% year-on-year rise in standalone net profit to ₹689.95 crore for the quarter ended September, while revenue grew 4% to ₹4,567.76 crore, aided by stable commodity costs and continued efficiency measures.
Berry also clarified the company’s measured approach toward its Tiger biscuits brand, emphasizing focus on availability rather than aggressive expansion. “We’re not aiming for a 50% market share. We want to stay relevant in rural areas and maintain a steady presence rather than chase exponential growth,” he said.
The GST reset, analysts say, could mark a turning point for India’s FMCG sector by consolidating market share among larger, compliant players, giving brands like Britannia a stronger competitive edge in both value and premium segments.