Britannia may name new CEO in 3-4 months, MD Varun Berry gets additional charge

New Delhi: Biscuit maker Britannia Industries Ltd is likely to name a new chief executive officer (CEO) in three to four months following Rajneet Kohli's exit, the company's top management said on Monday. 

Varun Berry, the company’s executive vice-chairman and managing director, has been given the additional charge of CEO, effective 8 May 2025, in compliance with listing regulations of the Securities and Exchange Board of India (Sebi).

Accordingly, he will be re-designated as executive vice-chairman, managing director and chief executive officer of the company, a regulatory filing by the homegrown fast-moving consumer goods (FMCG) company Friday evening showed.

During the Kolkata-based company’s post-earnings call on Monday, Berry said succession planning is underway. 

"It is a statutory requirement that the position of CEO has to be filled," Berry said, commenting on his appointment made Friday. "But succession planning is at play, and it will definitely be clear to you in the next three to four months, things are in play. I cannot comment on anything more than that right now.” 

Kohli, the company’s former CEO, announced his resignation from Britannia on 6 March and stepped down from his active role effective 14 March. He was subsequently appointed as executive director, foods, at Hindustan Unilever Ltd (HUL), effective 7 April 2025. 

Also Read: Britannia's Rajneet Kohli joins Hindustan Unilever as executive director

Kohli was named Britannia's CEO in 2022. At the time, Berry, who was then the managing director, became the executive vice-chairman and managing director, with Kohli reporting to him.

On Friday, Britannia Industries Ltd announced its full-year and March-quarter earnings.

Consolidated sales for the quarter ended 31 March 2025 grew 9% to ₹4,376 crore, while net profit rose 4% year-on-year to ₹559 crore. For the year ended March, consolidated sales grew 6% to ₹17,535 crore,  while net profit increased 2% to ₹2,178 crore.

Shares of the company settled 3.5% higher at ₹5,613 apiece on the BSE on Monday.

Meanwhile, having implemented price hikes over the past two quarters, the company is unlikely to raise product prices in the coming months. This follows a total price increase of approximately ₹100 crore in the third quarter of FY2024-25 due to a surge in the cost of key ingredients like palm oil and cocoa.

“…I don't think we will need to take any more price increases. There will be some remnants of the price increase which move into the rest two months of this quarter, but thereafter I think the way the commodity situation looks, it might not be necessary to take pricing beyond that. But, that will all depend on how the trends move through the quarter and we will have to take a call based on those trends,” Berry said on Monday.

The company is closely monitoring commodity price movement.

The company largely relies on wheat, palm oil and sugar as key raw materials for its product portfolio. Berry added that the focus will remain on sustaining margins while also maintaining competitiveness.

For instance, palm oil prices surged by 54% year-on-year in the March quarter, and cocoa prices jumped by 83% during the same period, while sugar prices saw a marginal decrease.

“We are going through the phase when the new season wheat comes in and we are not very clear at this stage where the inflation is going to be as far as wheat is concerned, but we are closely monitoring that and similarly other commodities as well, and we are also very vigilant about the fact that we have taken pricing and making sure that we are not priced out of the market, it seems that inflation is hurting everyone so it seems to be moving in the right direction,” he said.

The company is targeting double-digit growth in FY26. “Our endeavor will be to get back to double digits…with India being a developing country…it's important that in categories like ours, we see double-digit growth,” he said.

Commenting on future demand, the management remains “reasonably optimistic” on a recovery. 

"I don't think it's going to be a hockey stick but I do think that we have seen gradual recovery and I do think that this trend is going to continue into the next year as well,” said Nusli Wadia, the company's chairman.