It is possible that the economic scenario could have some impact on FMCG demand with a lag. This may become more visible in the current quarter and in the times to come.

However, the biggest challenge to the bakery industry over the last two years has been the unprecedented inflation in input prices of agricultural commodities which have raised costs by about 15-20 per cent this year itself. So far there is no significant change in these prices versus a few months ago.

The company has taken cost-effectiveness measures to minimise the impact of input-cost inflation. Our growth has come from a healthy mix of volume growth, prices increases, and improved product mix.

•Which product segments and geographies will account for growth in future?

We see growth in all our businesses — biscuits, cakes, rusks and dairy. All our power brands are growing at double-digit rate in every region. Rural growth is, in fact, ahead of urban growth.

•What percentage of revenue does the rural market account for? At what rate is rural revenue growing?

This varies by brand and ranges from 20 to 50 per cent. Rural growth rate is approximately 25 per cent.

•What are your competitive strengths vis-à-vis multinational, national and local players?

Britannia is the market leader in bakery products. The company's operations cover the entire value chain — from procurement to logistics, manufacturing, marketing, sales and distribution. Our competitive strengths include a deep understanding of the Indian consumer and an ability to translate that into delightful and healthy products, ongoing research for product innovation, state-of-the-art manufacturing facilities, a wide distribution network across the country, and impactful marketing.

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