Bali said prices of skimmed milk have gone up 35 percent, which has also impacted margins, adding: 'Given the drought situation, we expect milk yield to go down during the year.'

At the same time, she said the company's dairy business would be its 'growth vector'.

'In the coming days, you will see several new launches and they would be differentiated dairy business.'

Talking on Britannia's plans on inorganic growth, Bali said it was open to acquiring the 'right brand at right value' at the right time.

The company's profit after tax in 2008-09 fiscal was Rs.180.4 crore.