Biscuits major Britannia Industries today said it would increase capacity by 20 per cent by expanding existing operations and going to new sites.
"We want to augment capacity by 20 per cent in line with volume growth," Britannia Industries Managing Director Vinita Bali said, adding that the details would be finalised in a few weeks.
Speaking to reporters after the company's 91st annual general meeting here, Bali said Britannia has invested nearly Rs 70 crore to Rs 80 crore on an average in the last few years.
"That trajectory of investments will continue", Bali said.
Asked about the impact of rise in input costs, Bali said in the first quarter of FY10, the costs of wheat, milk and sugar increased by Rs 65 crore over the same period last fiscal. Of that, rise in input cost of sugar alone was Rs 45 crore.
When asked whether Britannia would raise product prices due to rise in input costs, chairman Nusli Wadia said, "We can't raise it alone. There are efforts to cut cost. We are cautious about raising prices."
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Wadia said Britannia is looking at registering a 20 per cent growth in topline in FY11.
Bali said over the last 2-3 years, the company reduced the profit pool by not passing it on to consumers.
While Britannia had already acquired two units in the Middle East, Bali said the company is about to enter Saudi Arabia and Gulf Cooperation Countries for exports to Africa and Australia.
Besides biscuits, the company is also expanding the dairy and bakery portfolios.
To a query, she said there is no problem with the Kolkata Port Trust authorities regarding the Taratola plant.
She added the port authorities are demanding a higher rental for the plant.
Bali said over the last four years, the company has reduced the cost by over Rs 200 crore.