Britannia Industries, one of India’s largest FMCG players, has made it clear that it is not planning any price hikes in the near term, citing easing raw material prices and a steady demand environment—particularly from rural markets.

The announcement came during the company’s quarterly earnings call on May 12, led by Managing Director Varun Berry. He explained that while Britannia had taken pricing actions late in the fiscal year to counter inflation, the easing of commodity costs now means there is no immediate need to raise prices further.

Despite the broader slowdown in consumer spending, Britannia managed to outperform market expectations in the March quarter. The company reported a 9% year-on-year increase in revenue, beating analyst estimates of 7.6%. This came in an environment where urban demand remained soft and other FMCG peers struggled to maintain volume growth.

Raw Material Costs Easing, No Need for Immediate Price Increases

Varun Berry emphasized that input costs are now stabilizing, allowing the company to hold back on raising prices. Unless there is a significant shift in market dynamics, Britannia expects to maintain current price levels for its products.

“There has been a lot of inaction this year and we started to take price increases pretty late. Even if inflation corrects, I don’t expect smaller players to cut prices. Hence, no need for more price increases from our side either,” Berry noted.

The company highlighted that its revenue growth of 5.5% outpaced volume growth, thanks to previous price hikes and the current favourable cost environment. With commodity cost pressures waning, this approach is expected to support margins while ensuring competitiveness.

Resilient Rural Demand Drives Growth

An important aspect of Britannia’s performance this quarter was its strong rural demand, which has remained resilient despite the overall muted consumption trends.

While urban demand lagged, the company’s volume growth stood at 6%, a figure that outpaces most other FMCG peers. This was supported by robust demand from rural India, where the company continues to focus on distribution expansion and product penetration.

The management is optimistic that this trend will continue into FY25, providing a solid foundation for further growth even in challenging macroeconomic conditions.

New Product Launches Fuel Non-Biscuit Growth

Britannia is no longer just about biscuits. The company is now placing strategic focus on adjacent categories like croissants, wafers, cheese, and beverages. In FY25, non-biscuit segments have shown remarkable growth, growing over three times faster than the biscuit portfolio.

This growth is largely driven by innovative product launches and an aggressive expansion of distribution networks. Berry confirmed that Britannia is investing significantly in strengthening these categories, aiming to diversify revenue streams and reduce dependency on a single category.

Croissants and wafers are seeing strong consumer traction, with Britannia capitalizing on shifting consumer preferences toward snackable and value-added formats.

Price Hikes Implemented Late Will Continue to Reflect

While Britannia is not planning new price hikes, Berry mentioned that the impact of earlier hikes implemented late in the year is still being felt and will continue to reflect in the coming quarters.

As a result, revenue may still slightly outpace volume growth in the short term. However, the company does not foresee a need to pass on any further price increases unless there is a significant surge in input costs or competitive pressure.

This strategy indicates careful margin management, aimed at sustaining profitability without compromising on market share.

CEO Succession Plan in Progress

The company also addressed leadership changes. After the resignation of former CEO Rajneet Kohli in March, Varun Berry took over the reins as CEO, Executive Vice-Chairman, and Managing Director.

During the earnings call, Berry clarified that the succession plan for appointing a new CEO is well underway and that the company will finalise the appointment in the next 3–4 months.

This assures stakeholders that Britannia is maintaining continuity in leadership, which is crucial for the execution of its long-term growth strategy.

Britannia’s FY25 Outlook: Balanced Growth and Market Stability

Looking ahead, Britannia remains confident of achieving revenue and volume growth, though the revenue growth may be slightly higher due to the full impact of earlier pricing actions.

Key highlights from the company’s FY25 strategy include:

• No immediate need for price hikes due to easing inflation

• Increased focus on rural expansion and deep distribution

• Strengthening adjacent categories like wafers, croissants, and beverages

• Strategic succession planning for long-term leadership stability

With its cost base stabilising, distribution expanding, and product portfolio diversifying, Britannia appears to be on a solid growth trajectory. The company’s ability to navigate market volatility while continuing to deliver strong financial performance makes it one of the most resilient players in the Indian FMCG space.

Final Thoughts

Britannia Industries’ decision to pause price hikes reflects a well-calibrated approach to cost and consumer sentiment. Its solid Q4 results, strengthening of non-core segments, and firm grip on rural demand underline a robust strategy in play.

As the company continues to focus on value growth, innovation, and market reach, investors and consumers alike can expect steady performance in the quarters to come—without the fear of price shocks at the store shelves.

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