Britchip Foods Limited, Britannia Industries’ subsidiary by 60% and ST Bakery’s (formerly Chipita Foods) subsidiary by 40% is growing in the Indian market, however, the plan to create a second croissant production plant is on hold.
According to information from “N”, croissants under the Britannia Treats brand are reportedly increasing their market share in India, recording an upward trajectory in terms of size. This year’s fiscal year is expected to close with a further increase in revenue but mainly with a greater improvement in profitability indicators.
The 2023 figures indicate the particular dynamics of the croissant, the recipe of which is a “Greek product” since the know-how is provided by ST Bakery within the framework of the joint venture with the powerful Indian group Britannia, in the local market.
More specifically, Britchip’s sales increased by 15.8% and amounted to 12.4 million euros last year compared to 10.7 million euros in 2022.
EBITDA rose significantly and amounted to 862,837 euros compared to 297,349 the previous year, while a significant reduction was achieved in the cumulative losses, which decreased to 443,405 euros compared to 1,751,521 euros in 2022.
At the same time, the company’s liquidity reached 3 million euros and the equity of the joint venture amounted to 5.6 million euros at the end of the 2023 fiscal year, with the Greek participation amounting to 2.2 million euros.
Plans for a second production unit froze
Despite the strong potential and prospects for penetration into the Indian market that the packaged croissant category shows, given the increasing adoption of Western dietary trends by Indian consumers combined with the growing demand for ready-to-eat snacks, especially among GenZ and millennials, the plans for the implementation of a second production unit are reportedly not being promoted for the time being.
This development may have been influenced by Britannia’s decision to proceed with the creation of a cheese unit – as part of the joint venture with Bel Group – an investment of 23.9 million euros that was recently completed.
