Britannia has lined up plant to be located in Tamil Nadu state

Britannia has lined up plant to be located in Tamil Nadu state

Indian food major Britannia Industries is set to build another baked goods facility in the country.

Varun Berry, the newly-appointed of head of Britannia's Indian business, told just-food the greenfield plant in Tamil Nadu is expected to be commissioned in early 2015 at an estimated cost of US$16m.

"The factory will be wholly-owned and primarily serve the south markets in India," Berry said. "It will produce popular household brands like Marie Gold and Good Day, which are large volume brands and with good volume growth rates."

Berry's comments came after Britannia's latest baked goods factory, in the western state of Gujarat, started commenced commercial production.

The US$12-16m plant is manufacturing Britannia's popular biscuit brands such as Vita Marie Gold, as well as the Bourbon and the Good Day ranges.

Based on an industrial estate at Jhagadia, it has an annual production capacity of 45,000 tonnes and will supply nearby markets in the states of Gujarat and Maharashtra, including the latter's capital, Mumbai.

The company, which turns over more than US$1bn annually, is pursuing a strategy of setting up large, highly automated bakery plants close to a number of its major markets to reduce the distance travelled by products so that they arrive fresher.

Plants are also planned for the eastern states of Bihar and Orissa.

Britannia, part of Indian food-textiles-property-land-chemicals conglomerate Wadia Group, claims a third of the country’s bakery products market. Its biscuits, bread, cakes, rusks, and dairy lines are available at 3.5m retail outlets and reach more than 40% of Indian homes.