Britannia Industries, the maker of ‘Tiger’ biscuits, has entered the breakfast food segment with the launch of ‘Britannia Healthy Start’, a range of ready-to-cook breakfast mixes in upmas, pohas, porridges and oats, among others.
This move has put Britannia in the league of ITC Foods, Nestle and MTR Foods, which have significant national presence in this segment.
“Our research showed that Indian consumers were desirous of a breakfast solution that combines convenience, health and taste. The Britannia Healthy Start range is made with natural ingredients that give all of this in five minutes. These products also contain no transfats, no cholesterol and no preservatives,” Vinita Bali, managing director of Britannia Industries, said.
The company has launched these products only in Mumbai and will take them to other parts of the country in phases. According to industry analysts, this new category will give an upside to the revenue of the company, which is facing tough challenges in various biscuit categories from ITC and Parle, among others.
However, they said it would be tough to penetrate the market with entrenched players like Nestle and MTR Foods. According to estimates, the food processing industry in India is valued at Rs 45,000 crore and of this, only 20-30 per cent comes under the organised category.
The industry, which has both mid and small players in the regional space, with a handful of national players like Nestle, MDH, Everest, Shakti and Aachi, is growing around seven per cent annually.
Britannia reported a 39 per cent drop in bottom line at Rs 64.7 crore for the second quarter (July-September). Revenue grew by 27.5 per cent to Rs 1,094 crore.
Britannia shares today closed one per cent lower at Rs 370 on the Bombay Stock Exchange.
