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Britannia slows down capex plans to grow capacity

Friday, 14 Feb 2020

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Britannia is slowing down its capital expenditure (capex) plans as volume growth in its biscuits and bakery business remains low.

The company has reduced wastage in the system and tightened its fixed costs. It has looked at every possible method of capacity extraction, so that it can postpone capital investments in capacity. The company has reduced the distance its biscuits travel between the factory and consumer from 630 km to 350 km.

Britannia is also delaying the national roll-out of a few products that were being test marketed. It had launched croissants in 2019 by partnering with Greek company Chipita, and in November 2019 planned to reach across the country in three months.