In a significant move that could potentially boost the biscuit industry, the Goods and Services Tax (GST) rate on biscuits has been reduced from 12% to 5%. This decision is expected to have a positive impact on major biscuit manufacturers, with Britannia Industries likely to be a key beneficiary.

GST Rate Cut: A Sweet Deal for Biscuit Makers

The reduction in GST rates from 12% to 5% on biscuits represents a substantial 7 percentage point decrease in the tax burden. This move is anticipated to have far-reaching implications for both consumers and manufacturers in the biscuit industry.

Potential Impact on Britannia Industries

Britannia Industries, one of India's leading biscuit manufacturers, stands to gain significantly from this tax reduction. The company, known for popular brands such as Good Day, Marie Gold, and Nutrichoice, could see several potential benefits:

1. Improved Profit Margins: The reduced tax rate may allow Britannia to retain a portion of the tax benefit, potentially improving its profit margins.

2. Competitive Pricing: The company might pass on some of the tax benefits to consumers, leading to more competitive pricing of its products.

3. Increased Demand: Lower prices could stimulate demand, particularly in price-sensitive market segments.

4. Market Share Growth: The ability to offer more competitive prices might help Britannia capture a larger market share in the highly competitive biscuit industry.

Industry-Wide Implications

While Britannia is poised to benefit, the GST rate cut is likely to have broader implications for the entire biscuit industry:

• Increased Consumption: Lower prices may lead to increased biscuit consumption across various consumer segments.
• Formal Sector Growth: The tax reduction could encourage a shift from the unorganized to the organized biscuit manufacturing sector.
• Innovation and Investment: With potentially improved margins, companies might invest more in product innovation and capacity expansion.

As the biscuit industry adapts to this new tax structure, all eyes will be on major players like Britannia to see how they leverage this opportunity. Investors and industry analysts will be keenly watching the company's future financial results to gauge the actual impact of this GST rate reduction on its performance and market position.

The move underscores the government's efforts to provide relief to both consumers and the food processing industry, which could have wider economic implications in the long run.

Britannia Industries , a leading FMCG company in India, has announced the appointment of Rajesh Kumar Batra as an Additional Non-Executive Independent Director. The appointment, which is subject to shareholder approval, is for a five-year term starting from August 25, 2025, to August 24, 2030.

Board Approval and Appointment Process

The Board of Directors of Britannia Industries approved the appointment through a circular resolution on August 23, 2025, at 9:07 P.M. IST. This decision was based on the recommendation of the company's Nomination and Remuneration Committee. The appointment will be put to a vote through a postal ballot, allowing shareholders to have their say in this significant corporate governance move.

About Rajesh Kumar Batra

Rajesh Kumar Batra brings a wealth of experience to his new role at Britannia Industries:

• He is a second-generation entrepreneur and currently serves as the Chairman and Managing Director of Cravatex Limited.
• Batra completed his schooling at Campion School, Mumbai, and graduated from Elphinstone College in 1975.
• He holds a Diploma in Systems Management from Jamnalal Bajaj Institute, obtained in 1978.
• Batra is the son of Late Mr. Ram Batra, a prominent businessman and former sheriff of Mumbai.
• He currently serves as an Independent Director on the boards of two other listed companies.
• Batra is actively involved in philanthropic activities, serving as a trustee on several charitable trusts.
• He promotes sports through the Ram Batra Memorial Foundation.

Independence and Compliance

In line with regulatory requirements, Britannia Industries has confirmed that Rajesh Kumar Batra is not related to any existing director of the company. This appointment adheres to the Securities and Exchange Board of India (SEBI) Listing Regulations, 2015, ensuring the independence of the board.

Furthermore, the company has stated that Batra is not debarred from holding the office of Director by virtue of any order from SEBI or any other authority, as per the circulars issued by BSE and NSE in June 2018.

Implications for Britannia Industries

The appointment of Rajesh Kumar Batra as an Independent Director is expected to bring fresh perspectives to Britannia Industries' board. His extensive experience in entrepreneurship, corporate governance, and philanthropic activities could potentially contribute to the company's strategic decisions and corporate social responsibility initiatives.

Shareholders will have the opportunity to vote on this appointment through the upcoming postal ballot, the details of which will be circulated by the company in due course.