Britannia Industries expects half of its domestic sales to come from rural markets within the next three to four years, as it expands its distribution network to tap into growing aspirations outside cities, Vice Chairman and Managing Director Varun Berry said.
Currently, rural India accounts for about 40% of Britannia’s sales, up from 25% a few years ago. “Our split between urban and rural was 75:25. Now it’s 60:40. The rural markets are growing much faster than urban, and this trend will continue,” Berry told PTI.
Britannia, known for brands like Good Day, Marie Gold, and Tiger, reported double-digit rural growth in the April–June quarter. The company directly reaches about three million retail outlets and plans to add nearly 100,000 outlets annually, including villages with populations below 3,000, to ensure steady product availability.
Berry noted that rural consumers increasingly mirror urban aspirations—seeking smartphones and branded biscuits. “They might not consume these products every day, but biscuits are part of their repertoire,” he said.
On the other hand, urban demand is facing pressure from rising real estate and rental costs, prompting consumers to tighten spending. However, Berry expressed optimism that recent GST reforms could ease some of these constraints.
Urban markets continue to show strong growth through kirana stores, modern retail, and e-commerce, though Berry stressed that digital channels account for only 4% of Britannia’s revenue. “Ninety-six percent of our revenue comes from our distribution muscle,” he said, underlining that the company’s focus remains on deepening physical reach across India.