Despite high food-price inflation and an economic slowdown, Britannia's revenues have held up quite well so far this financial year. But the impact of the slowdown could become more visible on FMCG demand in the Q4 of FY09 and thereafter, admits Vinita Bali, managing director, Britannia Industries, in an interview with S K Singh and Niti Kiran.

•How is revenue growth likely to be in FY09?

In 2008-09, sales growth year-to-date till December is 24 per cent, compared to 17.5 per cent in 2007-08, 28.4 per cent in 2006-07, and 13.5 per cent in 2005-06.

The first half of 2008 saw inflationary pressures due to high commodity prices. What strategies did you adopt to maintain your margins?

Our focus has been on improving productivity and eliminating cost disadvantages, besides cutting non-value adding activities to secure profitable growth. Through the various cost-reduction initiatives, the company has over the last three years eliminated Rs 120 crore in costs. In addition, we have made judicious price increases.

•How is the economic slowdown impacting your business?

Britannia has sustained positive growth over the last two quarters with strong efforts at building consumption moments, and upgradation and innovation efforts behind our brands. It is important in today's scenario to maintain a tight vigil on costs and simultaneously make vigorous efforts to stimulate demand. We have focused on cutting costs, improving our products, and making our advertising and promotions more effective.

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