India's largest baker, Britannia Industries, is set to stage a comeback into the packaged milk business, four years after it exited this segment.
The company, which closed last fiscal with a top line of close to Rs 3,500 crore (Rs 35 billion), is expected to play in the ready-to-drink flavoured milk market targeted at youth, instead of the mass packaged milk segment.
Britannia declined to comment in this regard. Industry estimates indicate this market is valued at close to Rs 750 crore (Rs 7.5 billion).
Amul, the Gujarat-based milk cooperative, is the largest player, with around 70 per cent market share.
Britannia's move to make a comeback into this segment comes on the heels of its buying out New Zealand-based Fonterra in the dairy business.
Britannia is expected to invest close to Rs 200 crore (Rs 2 billion) for this re-entry, besides strengthening its other dairy products business.
"Our investment is determined by the categories we wish to enter, which we continually evaluate. Capex is therefore, a reflection of the opportunity we select to pursue," a spokesperson for Britannia added.
