FMCG major Britannia is evaluating entry into new product categories, like chocolates, breakfast, salted snacks and other ready to-eat foods, to consolidate its position as a leading food company in the country.
"To remain relevant and improve relative significance in future Indian market, companies such as yours will have to venture outside of their traditional bastions and build presence in adjacent categories."
We believe that your company is well positioned to undertake this transition even while strengthening its hold on the bastion categories," Britannia said in its annual report for 2015-16.
It further said: "The opportunity in adjacencies such as chocolate products, breakfast, salted snacks and other ready to-eat foods is huge... Your company is evaluating several of these categories carefully and working on business model options before choosing a few for entry."
Britannia said these new categories that help in health management and ready to eat solutions are seeing wider and deeper consumer traction than ever before.
"Your company's strategy to increase consumer relevance in a changing food landscape and grow ahead of direct and indirect competition is to strengthen position in bastion categories (Biscuit, Cake and Rusk)," it said.
The firm will also take steps including increasing demand for current assortment through a combination of brand promotion and aggressive distribution expansion, creating fresh demand through innovation on pleasure, health and convenience axes and running the supply chain for better cost efficiency and superior delivered quality.
It will also enter attractive adjacencies for an accelerated future growth and evaluate transition of the dairy model to a fully integrated one.
