A significant portion of Britannia’s manufacturing for international markets is based out of Oman and Dubai. However, the closure of the Strait of Hormuz, vessel unavailability and a spike in fuel and ocean freight costs created severe logistical bottlenecks.
“We were unable to dispatch vessels because the Strait of Hormuz was locked,” Hargave said, adding that the conflict also triggered a slowdown in demand across affected markets.
Agility becomes Britannia’s shield
Despite the global headwinds, Britannia managed to avoid any major production disruptions in India, even as concerns initially emerged around LPG shortages following the outbreak of the conflict.
Hargave said the company’s Indian manufacturing operations continued steadily, supported by swift mitigation measures and alternate fuel strategies. “The agility of the Britannia team came to the fore,” he noted, while acknowledging that fuel cost inflation remains unavoidable.
To counter rising costs and supply-side pressures, Britannia will begin implementing calibrated price increases from the current quarter. Simultaneously, the company is restructuring sourcing operations between India and overseas manufacturing facilities for key geographies. a transition expected to be fully operational by mid-May.
Mundra facility steps into focus
One of Britannia’s key strategic move has been the repositioning of manufacturing for North America. The company had earlier shifted production for the region from its export-oriented Mundra facility to Oman amid tariff-related considerations. However, with the West Asia disruptions intensifying, Britannia has now gradually moved that manufacturing back to Mundra to ensure uninterrupted dispatches to North America.
Efficiency, brands and future platforms
Britannia said it will continue doubling down on cost optimisation and efficiency programmes, internally referred to as CEP measures, to cushion inflationary pressures and protect profitability.
At the same time, the company is sharpening its long-term strategic priorities around brand investments, innovation and future-ready portfolios.
Hargave indicated that Britannia will significantly strengthen its brand-building initiatives and consumer experiences going forward, while also investing aggressively in adjacencies and new-age product platforms. “There is intense work happening to create a portfolio for the future,” he said.
E-commerce emerges as a growth engine
Britannia’s e-commerce business is emerging as one of its fastest-growing channels, with the segment’s contribution to domestic sales rising to 6% in FY26 from 4% in FY25.
Hargave said the number becomes even more significant when viewed against Britannia’s product mix, where nearly 60-65% of biscuit sales come from low-priced ₹5 and ₹10 packs that have limited relevance in online channels. “When you apply that filter, the e-commerce contribution is upwards of 12%, which is best in class,” he said.
Quick commerce drives digital momentum
Management said nearly 70% of Britannia’s e-commerce business currently comes from quick commerce platforms, a share expected to rise to 85% as players such as Amazon and Flipkart scale up their rapid delivery models.
Britannia is increasingly collaborating closely with these platforms, aligning with their playbooks and activating brands through targeted digital strategies.
The company expects premium and impulse-driven assortments to gain further traction online as quick commerce penetration deepens across urban markets.