Digestive Biscuit dilemma: Britannia shares up by 3% while ITC trades flat
ITCs sunfeast farmlite digestive packaging claims No added sugar, maida and that it contains fibre. While Britannias NutriChoice Digestive too has similar branding slogans which says 0 per cent added sugar, maida and contains high fibre. These two products are priced also at same price.
Shares of Britannia Industries soared by Rs 105.10 points or 3.13% to Rs 3457.85 on BSE.
Total traded quantity was around 22000 shares against two weeks average quantity of 35000 shares.
Interestingly, this was a positive reaction on back of media reports which stated that ITC has filed a case accusing Britannia Industries for copying biscuit packaging.
ITC has filed a case against Britannia Industries, claiming that the biscuit market leader's NutriChoice Digestive Zero brand has copied the packaging of ITC's Sunfeast Farmlite Digestive All Good biscuit, a Economic Times report.
Following the reports where Britannia is trading robustly, ITC is facing lackluster trading on Indian indices.
The share price of ITC was trading sluggish, down by Rs 2.10 or 0.84% to Rs 249.20 from previous closing of Rs 251.30.
ITC's sunfeast farmlite digestive packaging claims 'No added sugar, maida' and that it contains 'fibre'. While Britannia's NutriChoice Digestive too has similar branding slogans which says '0 per cent added sugar, maida' and contains 'high fibre'. These two products are priced also at same price.
In this regards, BSE has sought clarification from Britannia and ITC. The reply is awaited.
Both the companies have reported profit in the June quarter ended 2016 (Q1FY17). ITC's net profit grew by 10.09% to Rs 2,384.67 crore in Q1FY17, as against Rs 2,166.09 crore in the June 2015.
While Britannia posted a consolidated net profit of Rs. 219.1 crore during this quarter, a rise of 13.15% as compared to Rs. 193.6 crore for the quarter ended June 30, 2015.
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