With steep inflation in agricultural commodities, how will the company manage growth with margins?
That’s a tough challenge because even though the price of sugar has doubled, there is no way we can take all of that and increase the price of biscuits. I think commodities are going to be a stress point and we are doing two things. Firstly, what can we do in terms of revenue management—what is the right profile of pack size, brand and channel. Secondly, we are focusing on taking cost out of the system. Over the last four years, as we have taken about Rs1.8 billion of costs out and that effort continues. Do you think Britannia lacks the pricing power that an iconic brand like Britannia should have? I am increasingly beginning to question the theory of iconic brands. If iconic brands are so iconic that the consumer says “It doesn’t matter how much it costs, I am still going to buy it,”, but we know that that is not true across categories because several iconic brands have lost share to insurgents. So I think iconic brands have a lot of reflection and thinking to do because every iconic
Related Questions
- What is the definition of a company or co-operative that is predominantly engaged in the processing of raw agricultural commodities or agri-based ingredients?
- What category management principles does the company use to help Permatex best manage this business?
- Can FMCG companies manage high growth rates without compromising on margins?
