Britannia aims for a 50-50 rural-urban sales split in 3–4 years
Rural sales currently stand at 40%, growing faster than urban markets
Expanding distribution to meet demand in aspirational rural areas
Britannia expects half of its domestic sales to come from rural markets in the next 3 to 4 years, said vice chairman and managing director Varun Berry. The FMCG giant also aims to strengthen its distribution network to tap into areas with growing consumer aspirations.
In an interview to PTI, Berry believes that rural markets are “very important” for the company, which saw double-digit growth in the April-June quarter. To sustain this moment, Britannia is expanding direct distribution channels to ensure a steady supply of products like Good Day, Marie Gold, and Tiger biscuits in remote areas.
He revealed that Britannia previously was an urban-centric company. However, nearly 40% of its sales come from rural market as it is growing ahead of the urban market, Berry added, while emphasising that this trend is expected to continue.
“Our split between urban and rural was something like 75% and 25%. Now, we have gotten to a 60-40 split. It is still in favour of urban, but slowly, steadily, we have grown the rural markets much faster than the urban markets, and this will continue,” he told PTI.
Britannia is aiming for an “almost equal split” between rural and urban markets, given the significant opportunities in consumption and distribution. The company wants to build a strong foothold in rural areas “probably within 3 to 4 years” as part of its growth strategy, he added.
Britannia Q4FY25 Financials
The bakery food company has reported a 4.2% rise in consolidated net profit to ₹559.13 crore for the March quarter of FY25, despite subdued demand and a challenging operating environment.
The company had posted a net profit of ₹536.61 crore in the same quarter a year ago, according to a late-night regulatory filing on Thursday by Britannia Industries.
Britannia Industries' revenue from the product sales rose 9% to ₹4,375.57.30 crore in the March quarter. Its revenue from the operation increased 8.9% to ₹4,432.19 crore in the March quarter from ₹4,069.36 crore in the corresponding period of the previous year.
For the financial year which ended on March 31, 2025 Britannia’s net profit rose 2% to ₹2,177.86 crore, from ₹2,134.22 crore a year before. In FY25, Britannia’s total consolidated income rose 7% to ₹18,169.76 crore. The company, which is expanding its distribution footprint, now directly caters to about 29 lakh outlets across the country, with strengthening presence in rural markets.
