Britannia margins being squeezed: Bali

Britannia MD Vinita Bali said rising commodity prices are pressurising the margins of her firm.

Britannia Managing Director and Chief Executive Vinita Bali today said rising commodity prices are pressurising the margins of all the fast moving consumer goods companies and her firm is not immune to it.

“As long as commodities keep inflating,the pressure on industries like us continues,” Bali told PTI here at the TIE Stree Shakti event here.

Essential kitchen items like potato and pulses pushed food inflation closer to the double-digit mark at 9.13 percent for the week ended September 17,from 8.84 percent in the previous reporting week.

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The FMCG major had last month said it was badly hit by food inflation and was working towards improving margins. Bali had also added that margins would be improved by a mix of brands,products,geographies,cost effectiveness and efficiency.

When asked about a hike in its products,she gave a non committal reply,”I wish I knew. We keep adjusting our prices depending on what happens to cost.”

The Wadia group firm will continue to invest in advertising and infrastructure,she informed. “We invest in advertising,infrastructure. We will invest to support our aggressive topline growth,” she said,without divulging the investment for the same. She also said the firm invests about 7-8 percent of its revenues on advertising.

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