Mundra: Britannia Industries Managing Director and CEO Rakshit Hargave said the company has moved its North American export manufacturing operations from Oman to Mundra, Gujarat, to manage disruptions arising from the ongoing crisis in West Asia.
Speaking during an analyst call on Friday, Hargave said the company had to shift operations after the closure of the Strait of Hormuz impacted exports during the quarter.
“To manage the crisis at West Asia, we have moved our manufacturing to Mundra,” he said, adding that the company expects improved performance in the current quarter.
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The maker of brands such as Good Day, Marie Gold, Milk Bikis and Tiger is also considering selective price hikes to offset rising costs triggered by geopolitical tensions.
According to Hargave, fuel and packaging costs have risen by nearly 20 per cent, forcing the company to consider both grammage reductions for lower price-point products and direct price increases on packs priced above Rs 10.
“Selectively we will have to take price increases. This includes both grammage adjustment and price increases in some larger packs,” he said.
While wheat prices remain relatively stable, the company is facing inflationary pressure from fuel, laminates used in packaging, and palm oil prices, which are linked to fuel costs. Sugar prices, however, remain normal.
Hargave noted that fuel costs remain a major challenge as the company relies on LPG and PNG for operations, both of which have witnessed inflation.
Despite challenges in exports and input costs, Britannia reported strong demand in urban-focused channels. Quick commerce continued to emerge as a key growth driver for the company’s e-commerce business.
“Almost 70 per cent of our online business today comes from quick commerce,” Hargave said, adding that the share could rise to 85 per cent as companies such as Amazon expand their hyperlocal delivery operations.
He also noted that quick commerce platforms are helping Britannia push premium and indulgent product categories more effectively.
Britannia Industries on Thursday reported a 21.56 per cent rise in consolidated net profit to Rs 679.68 crore for the March quarter of FY26. Its sales rose 7 per cent to Rs 4,685.95 crore, while consolidated revenue for FY26 stood at Rs 19,375.62 crore.
