The Indian packaged food and beverage company, Britannia Industries has announced that it is investing Rs. 550 crore in Tamil Nadu driven by the positive performance in the last two quarters despite Covid-19 led disruption in the state. Britannia has signed a Memorandum of Understanding (MoU) with the Tamil Nadu Government in the presence of the CM Edappadi K. Palaniswami, stating the increase of investment in the state from Rs. 300 crore to Rs. 550 crore over a period of seven years. The investment will be done to set up a plant in the region. The southern state is one of the biggest markets for the maker of Tiger biscuits and Good Day cookies.

The company plans to expand capacity in the state given a surge in packaged food consumption in India. The proposed plant, with a land requirement of 85 acres, will manufacture a variety of snacking products. With this enhanced investment plan, Britannia will generate a total of 1000 direct and indirect employment opportunities in the state. “We are working continuously to drive in investment in the state for a holistic development while

We are working continuously to drive in investment in the state for a holistic development while ensuring employment opportunities for our people

ensuring employment opportunities for our people,” stated Dr. Neeraj Mittal, IAS, MD & CEO of the guidance - industries department, in a press statement.

“It is the most diversified market and we have over the years invested towards strengthening our foothold in the state. We will continue to balance growth across key markets as we look to further deepen our reach in the country,” stated Varun Berry, Managing Director, Britannia Industries. He further added, “We are also looking at an overall capex of about Rs. 700 crore to set up new facilities in Uttar Pradesh, Tamil Nadu, and Bihar, while also expanding manufacturing capabilities of our existing plants in Maharashtra and Odisha.”

In an investor’s call in July, Britannia had said it will invest Rs. 700 crore to open more factories as the demand for packaged food including biscuits had exceeded its production capacity especially as rural markets outpaced urban sales. This was after the company expanded sales by 25 percent, an eight year high and doubled its profit, helped by surge in at-home consumption of packaged foods during the nationwide lockdown in the quarter ended June.