One of India's leading biscuit maker, Britannia Industries has announced that it will increase the price of its biscuits. This, said the company, is being done since it wants to release the pressure that its margins have been facing due to hike in raw material costs.

It said that the topline this year has shown an increase of 10 per cent but despite this the profits fell by 30 per cent. High inflationary pressures, which have been in the double digits, are the prices. It did not pass the burden to the consumers till now since it did not want them to face the brunt.

While talking to private newspaper, DNS, Vinita Bali, MD, Britannia Industries said that now there was no option and so the prices were increased. This will lie between 5-10 per cent.

During the last fiscal, Britannia saw its volumes go up by 0.2 per cent because of rising competition and costs. While the prices sugar prices went up by 58 per cent the wheat flour rates went up by 0.2 per cent. These combined pushed down the Ebitda margins by 370 basis points to 28.1 per cent.