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Britannia plans to re-enter salty snacks market

Britannia plans to re-enter salty snacks market, to take on Haldiram's, PepsicornBusinessrnrnUpdated Feb 25, 2019 | 19:14 IST | ET Now DigitalrnrnrnrnrnBritannia's salty snacks will be launched under its existing brand Time Pass, and the launch could be as soon as next monthrnrn rnthe maker of Good Day and Nutri Choice biscuits has identified opportunities in snacking segment rnrnNew Delhi: India's biggest biscuit maker Britannia Industries, plans to make a re-entry into the salty snacks market, which is dominated by Haldiram's and Pepsico and local players, the Economic Times reported. It may be noted that salty snacks industry in India clocks revenues to the tune of Rs 24,000 crore per annum. By entering this segment, Britannia will be able to re-risk its business. rnThe ET report said, Britannia's salty snacks will be launched under its existing brand Time Pass, and the launch could be as soon as next month.rn“It will be a differentiated product range and we will leverage on the fact that we have about 80 factories making our products. In the snacking segment, transportation is the biggest cost but with our manufacturing footprint, our costs will remain tight and efficient,” the ET report quoted Varun Berry, managing director at Britannia Industries as saying. He did not divulge product range or details on variants. rnBiscuits, snacks and dairy products are the three largest categories in packaged consumer products category and account for a third of the nearly Rs 3.4 lakh crore market, the business daily said. rnIn its effort to become a “total foods company” the maker of Good Day and Nutri Choice biscuits has identified opportunities in all three segments. It may be noted that in the past few months, it launched swiss rolls, layer cakes, creme wafers, croissants and milk shakes in tetra packs.rnWorth mentioning here is that unlike biscuits, here large players such as Britannia, Parle, and ITC control more than 80% of the market, snacking segment has been dominated by regional and state-specific players with lower priced products eating away shares of large companies. Regional snack brands offer 30% higher volume for similar price points, especially the highest selling packs of Rs 5 and Rs 10, the business daily mentioned.rnThe Kolkata-headquartered company had earlier entered the snacks category but exited after a few months. “This time, the outlook in the segment, our capabilities and the product characteristics are completely different,” Berry told ET.rnLast year, Haldiram’s displaced Pepsi as the country’s largest snacking company. Britannia Industries will compete mainly against PepsiCo and ITC that operate largely in the western snacking segment such as potato chips, riblon and gathia, with brands such as Kurkure and Bingo’s Tedhe Medhe, and extruded, which includes cheese balls, the business daily mentioned.

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