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Britannia CEO says Reliance will struggle to undercut India biscuits
Britannia Industries CEO Rakshit Hargave said Friday that Reliance's Independence biscuits will have a harder time disrupting India's biscuit market than Campa did in soft drinks, Reuters reported.
- New headline Was: “Britannia CEO plays down Reliance's pricing threat in India biscuit market”
- Our desk filed its story
Based on reporting by Reuters
Britannia Industries Chief Executive Rakshit Hargave said Friday that Reliance Industries will find it harder to disrupt India's biscuit market with low prices than it did in soft drinks, Reuters reported1.
Reliance this week expanded Independence-brand biscuits in Tamil Nadu with packs starting at 5 rupees, days after calling biscuits a focus of its consumer business, according to the report1.
Hargave, speaking on a post-earnings call, said much of the biscuit market already sells at 5 and 10 rupees, so undercutting those points is harder than cutting cola prices by a similar amount1. He said Britannia is watchful of Reliance products that resemble existing biscuits1.
Consultant A. Manikandan of Tiger Consulting told Reuters there is little room for aggressive cuts at those prices without hurting profitability1.
Britannia said it plans further price increases and smaller packs as wheat flour, palm oil and sugar costs rise, citing the Middle East war1. The company raised prices 3.5% in the second quarter and reduced pack sizes in the first, Reuters said1.
Reliance's Campa relaunch three years ago sparked a price fight with Coca-Cola and PepsiCo1. Whether Independence biscuits will shift volumes at the 5- and 10-rupee rungs was not established in the report1.
