Leading biscuit manufacturer Britannia Industries said on Sunday that its “rural focus remains intact and the company’s rural revenue may touch 50 per cent in the next three years amid a gradual rebound in urban demand.”
“Rural revenue will reach 50 per cent in the next three years for Britannia as the company continues to focus on the rural market,” sources told PTI. The cost of inflation in 2021-22 for Britannia is more than the cumulative six previous years, company officials said.
The company is targeting to make up the unprecedented annualised cost inflation of Rs 1,300 crore by March 2022 in a combination of the price increase and reduction in pack size.
Britannia has said that the rural market-share gain is 2.5 times in the Q2 period ending September. The company’s revenue from rural segment contribution is already around 35 per cent, analysts estimated.
The rural market has been displaying strong trends in the last few quarters and the company continues to stay upbeat at expanding rural distribution. The company has increased 2,000 rural direct dealers in the last months to 25,000.
It has been said the focus states were also showing some positive numbers than national growth.
Meanwhile, the annualised total estimated inflationary pressure which is about Rs 1,300 crore will be recovered by the end of the year.
“Till September quarter, five per cent hike had been taken and another 17.5 per cent will be taken in the next two quarters,” company sources told PTI.