Britannia MD Backs FSSAI Crackdown, Says Consumer Interest Must Come First

Britannia Industries managing director Rakshit Hargave has backed the Food Safety and Standards Authority of India’s (FSSAI) recent crackdown on packaged food and beverage companies, saying regulatory measures aimed at protecting consumers are a step in the right direction.

The food regulator has recently taken action against companies across several categories over alleged violations involving product labelling, claims and hygiene standards. The moves have prompted some companies to seek additional time to comply, while others have challenged the regulator’s actions in court.

“Consumers’ interests should be protected and any measures that work in their favour should be taken forward,” Hargave said.

The regulatory action has already triggered pushback from parts of the packaged food and beverage industry. Several ‘energy’ drink makers, including Red Bull and Reliance Consumer Products, have approached FSSAI seeking a one-year extension to remove the word “energy” from their product labels.

Dabur, meanwhile, has challenged the regulator’s direction restricting the sale of products carrying “100%” purity claims. The dispute involves products including honey, sesame oil, coconut water and coconut milk.

Hargave’s comments come as Britannia faces intensifying competition from regional brands and digital-first food companies.

The company is increasing its focus on smaller regional markets by developing local products and expanding regional teams. Hargave said the rise of ecommerce and quick commerce has lowered barriers for smaller brands by giving them access to consumers on a more level playing field.

However, converting consumer trials into sustainable brands remains the bigger challenge, he said, particularly in categories where entry barriers are relatively low.

For Britannia, premiumization in urban markets will remain an important growth lever, while a stronger regional strategy is expected to complement its broader portfolio.

Britannia is also preparing for another round of price increases, in line with moves across the packaged consumer goods industry.

The company has indicated that prices could rise by 1.5–2% in the second quarter. For some low-priced products, including ₹5 and ₹10 packs, the increase could come through reduced grammage rather than a direct change in the sticker price.

The combination of tighter food regulation, rising competition from nimble regional brands and changing consumer economics is putting pressure on established packaged-food companies to balance affordability with investment in products, innovation and brand building.

For Britannia, Hargave’s comments signal that the company sees regulatory scrutiny not merely as a compliance issue, but as part of a broader shift toward greater accountability in India’s fast-evolving packaged food market.