Distribution expansion for BRIT has been massive, with its direct reach doubling over the past three years to 1.56m (overall reach of 4.7m outlets at end-FY17, including 0.7m outlets added over the past year). Its direct reach as of 2QFY18 stands at 1.8m outlets (second highest after HUL), implying addition of 0.24m outlets in 1HFY18. BRIT has also set up 13,000 distribution points across rural areas to cater to this market in a better way. We believe that the company should not be benchmarked against Parle's reach of 5.8m outlets (BRIT is narrowing the gap year after year on total reach; in terms of direct reach, BRIT already is twice as large as Parle), given that biscuits is a low-cost/high-velocity consumption product and that there is potential to boost the reach to 9m outlets.