Britannia Aims for 50% Sales from Rural Markets in 4 Years
Britannia Industries, the maker of popular brands like Good Day and Tiger biscuits, is setting its sights on rural markets. The company plans to achieve 50% of its domestic sales from these areas in the next three to four years, a significant jump from the current 40%.
Rural MarketsDistributionBiscuit IndustrySales GrowthGstReal Estate NewsSep 07, 2025
Berry highlighted that the rural market is 'very important' for Britannia, with double-digit growth in the April-June quarter. The company is now focusing on direct distribution to ensure a 'continuous stream' of products in these remote areas. He also said that rural markets are growing faster than urban ones, a trend that is likely to continue in the coming years.
Britannia currently directly reaches around three million retail outlets across India. The company plans to expand this number by about 100,000 outlets every year. Berry said that rural consumers now have the same aspirations as urban ones and want access to high-quality biscuits. He emphasized the importance of expanding distribution reach, especially in small markets like villages with less than 3,000 people.
Berry acknowledged that the urban market has been affected by rising real estate prices and rentals. However, he hopes that recent GST changes will provide some relief to consumers. Despite these challenges, Britannia has reported 'very high single-digit' growth from the urban market through general trade (Kirana stores), modern trade (retail chains), and e-commerce platforms.
Britannia's strategic focus on rural markets aligns with the growing aspirations of rural consumers, who are increasingly demanding high-quality products. By expanding its distribution network and ensuring a constant supply of products, Britannia aims to tap into the significant potential of these markets and maintain its leadership in the biscuit industry.
Frequently Asked Questions
What is Britannia's current sales distribution between rural and urban markets?
Currently, about 40% of Britannia's sales come from rural markets, while the rest comes from urban areas.
What is Britannia's target for sales from rural markets in the next few years?
Britannia aims to achieve 50% of its domestic sales from rural markets in the next three to four years.
How is Britannia expanding its distribution network in rural areas?
Britannia is focusing on direct distribution to ensure a 'continuous stream' of products in rural areas. They plan to expand their reach to about 100,000 additional retail outlets every year.
What challenges is the urban market facing, and how is Britannia addressing them?
The urban market is facing challenges due to rising real estate prices and rentals. Britannia hopes that recent GST changes will provide some relief to consumers, and they are still reporting 'very high single-digit' growth in urban areas.
Why is Britannia focusing on rural markets?
Rural markets are growing faster than urban ones, and rural consumers are increasingly demanding high-quality products. Britannia sees significant potential in these markets and is expanding its distribution network to meet this demand.
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