Britannia, country's leading food processing firm is planning to foray into the Indian startup ecosystem as it plans to launch a separate entity which will invest capital in startups trying to solve problems across categories in the next 6 months time. The company as per details will infuse small capital in the startups. The main focus for the firm will be expansion in rural markets, accelerating innovation, portfolio premiumization and bridging gaps in its bakery and snacking businesses.
Notably, a number of established firms have forayed into the Indian startup ecosystem by acquiring major stakes or backing companies through significant capital infusions over the past 2 years. Colgate Palmolive, the oral care company had backed men's grooming product company The Bombay Shaving Company while Marico which makes Parachute hair oil had acquired stakes in men's grooming startup Beardo a couple of years back. These acquisition and capital infusions could well be one of the reasons for Britannia to join the bandwagon.
Varun Berry, the managing director of Britannia talking about the same said, “We will consider looking at infusing small investments in startups across platforms; the details are being worked out." Notably, Berry revealed that post-Diwali the firm saw a slowdown. However, post the budget announcement, Berry expects a far better performance. “We expect double-digit volume growth with consumption picking up as we are in an election year. We hope inflation will be under 5% as we head towards elections, but it will depend on the government’s policies," he said.
It will be interesting to see what segment does Britannia plans to invest once the fund it plans to start gets ready.
Image Courtesy :dailyhunt, britannia