India's leading biscuit manufacturer Britannia Industries is expanding production, building two new factories in eastern India.

Although the company has yet to make a formal announcement, managing director Vinita Bali spoke about the plans while unveiling the company's two new NutriChoice cookies in Mumbai.

"We are setting up one plant in Bihar and the other one in Orissa, which will add to our bakery manufacturing," Bali told a media conference. "They will be large plants and will be operational over the [next] one to one-and-a-half year."

A senior official within the state government of Bihar’s industry department told just-food.com that the land purchases for the projects were well advanced.

"The Britannia factory is being set up under the state government’s incentive policy for food processing on a government designated land in Hajipur [just north of capital Patna]," said the official.

The cost of this one factory, according to the official was around US$12m. Britannia's media representatives would not comment on the deal.