Set to expand, Britannia may shift dairy project from Maharashtra
Kolkata: Britannia Industries is looking forward to expand their businesses, a company official said on Monday.
The FMCG major may shift its dairy project from Maharashtra as the state government has not yet finalised the incentive scheme, the official said.
"I believe that now we are poised to look at businesses outside even our adjacents (adjacent business).
"Today, we are in a position in terms of management to be able to look at acquisitions if they make sense," company's Chairman Nusli N. Wadia told shareholders at the 99th Annual General Meeting (AGM) here.
"We planned the project in Maharashtra and waited for over one year for finalising the incentive. Unfortunately, they have not done it...We are looking at shifting (the dairy project) because the Maharashtra government (has) already delayed long enough... If it does not get finalised, then we have to move," Wadia said on the sidelines of the AGM.
Asked whether the company had any discussion with Andhra Pradesh government, he said: "Of course, many time."
The company plans to invest Rs 300 crore in a dairy project, he said. The company which completed 100 years on March 21, said its board recommended bonus debentures and proposed subdivide of shares.
"This is to inform you that the Board of Directors at its meeting held today (Monday) has recommended and approved issuance of secured redeemable non-convertible debentures, as bonus debentures of Rs 60," the company said in a regulatory filing.
It will be in the ratio of one (bonus debenture) for every one equity share, held by the shareholders of the company on a record date as may be decided, subject to the approval of National Company Law Tribunal, Kolkata, and any other approval as may be required, it said.
According to Wadia, the company would be issuing over 12 crore bonus debentures of about Rs 720 crore. He also said the company would invest Rs 400-500 crore of capital expenditure in the coming year with a focus on dairy, rusks and cakes businesses.
Wadia said the company would be launching more products in September.
During the AGM the board decided to give notice to appropriate authority and stock exchanges to subdivide the equity shares of Rs 2.
According to the company's annual report, the board recommended a dividend of 1250 per cent and the total dividend payout amounts to Rs 361.84 crore including dividend distribution tax of Rs 61.70 crore.
The company reported a 19.6 per cent increase in its consolidated net profit at Rs 258 crore in the first quarter of the current fiscal (2018-19) as compared to Rs 216 crore in the year-ago period and on a comparable basis, its consolidated revenue was up for the quarter by 13.6 per cent.