Bengaluru: Biscuit maker Britannia Industries Ltd plans to ramp up its cost savings programme and deliver a 60% higher rate of savings in the current financial year versus the previous one. As part of its cost efficiency plans it has also reduced its distance to market, the company added in a conference call with analysts on Wednesday.
“We are targeting a very aggressive and very, very ambitious number on cost savings this year. That is going to be a number which is 60% higher than the previous year and I’m happy to report that in Q1 we were in line with our target,” Varun Berry, the firm’s managing director said on the call.
The company has reduced its distance to market to 400 kms and has two new greenfield plants coming up this year and a third one that is in the planning process at Ranjangaon in Maharashtra.
Britannia has already secured 96 acres and will invest Rs1,000 crore in setting up what will be its biggest manufacturing facility at Ranjangaon, the company said at its annual general meeting held in Kolkata on Monday. Setting up these new plants will further help reduce the firm’s distance to market and thus improve cost efficiencies.