Published On:August 8 2017
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Britannia to build Rs. 1,000-cr plant in Maharashtra.
In the past 98 years of its history, biscuits major Britannia Industries Ltd (BIL) is coming up with its largest plant ever in Ranjangaon in Maharashtra where investment of Rs. 1,000 crore over a 2-year period will be made which will make the company less dependent on outsourced manufacturing of its products.
'We have already acquired 96 acres for this project and have applied to the government for another 48 acres', the company's managing director, Varun Berry said here after BIL's annual general meeting (AGM).
To be completed in the next 1-2 years in phases, the 0.12 million tonne (mt) annual capacity plant will initially have six production lines of biscuits, and one line each for cakes and croissants. At a later date, other product lines like rusks, flour mill and dairy products may be incorporated.
Commissioning of this project, the largest ever in the company's history, will increase BIL's annual production capacity to 1.22 mt which will help it reduce outsourcing.
During the course of the AGM, the company's chairman, Nusli N. Wadia, while responding to a shareholder's query said that out of the total production in the company, 45 per cent is outsourced and he plans to bring it down to 35 per cent in the short-term. Berry later confirmed that the comment was related to the commissioning of this new greenfield venture.
Berry reasoned that the nearby catchment area for this integrated food park, which includes Pune and Ahmednagar in Maharashtra produces the highest quantity of cow's milk in the country which can be easily fed to this Ranjangaon plant. BIL plans to manufacture 85 per cent of the total dairy produce from this plant once it is commissioned.
The company will also be undertaking a feasibility study for manufacturing specialised kind of flour which it requires for the upcoming cream-filled croissants range of products. Recently, it has entered into a joint venture agreement with Chipita S.A., a Greek company, for the manufacture and sale of ready-to-eat croissants.