India’s largest biscuit maker, Britannia Industries, has been very closely watching Mukesh Ambani’s Reliance as it makes rapid strides in the fast-moving consumer goods space.
According to Varun Berry, the managing director and vice chairman of Britannia Industries Ltd., Reliance has very deep pockets, so we’ll have to watch out. “We’ll have to treat this as a very, very dynamic and very quick-changing scenario and make sure we match our steps.”
Reliance Consumer Brands has announced plans to build a massive consumer business and has been making a slew of acquisitions across FMCG categories, including launching its own brand, Independence.
Berry informed the media that Reliance is very large, and hence, for that to shape within their portfolio is going to take a little bit of time, but when they come, they’re going to come with a hammer. We’ve got very solid brands, and we operate in low-gross margin categories, but we are still able to create fairly good profitability because of our very lean structure and low fixed costs.
Britannia reported consolidated operating revenues of ₹4,338 crore for the September 2022 quarter, up 22% year-on-year, adding that its market share was at a 15-year high.
On the one hand, there are smaller, more agile companies that are well-funded through private equity and venture capital, according to Berry. “At the other end, you’ve got the second-biggest guy in the country launching FMCG products.” How do you deal with it? “By being a lot more nimble, lean, and quick in our decision-making,” he said.