BRITANNIA INDUSTRIES LTD.
SUBMITTED BY AMIT SASMAL ANAND MANDAL
CONCEPT OF BRITANNIA BISCUIT Sweet or salty. Soft or crunchy. Simple or exotic Everybody loves munching on biscuits, but do they know how biscuits began? The history of biscuits can be traced back to a recipe created by the Roman chef Apices, in which "a thick paste of fine wheat flour was boiled and spread out on a plate. When it had dried and hardened it was cut up and then fried until crisp, then served with honey and pepper." The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus' (meaning cooked or baked). The word 'Biscotti' is also the generic term for cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers which, because of their low water content, were ideal food to store.
SECTOR SYNOPSIS: The Britannia industry had started in Kolkata in 1892 with Rs.295 In 1939 (in the time of 2nd world war) the sales raise exponentially toRs.1627202.during 1944 the sales ramp up by more than 8 times to reach 1.36 corer. In 1978 public issue Indian share holding crossed 60%. In 1983 sales crossed Rs.100 crores . In 1994 volumes crossed 1 lakh tons of biscuits. In 2004 company has crossed the sale of volume 3 lakh ton biscuit. It achieved 40% of market share in the global market. so it has known as a market leader in the file of global market. In the industry the other
Players like PARLR, SUNFEAST ,ANMOL, SURYA FOOD[,PRIYAGOLD] have a great impact in the market. But Britannia has possessed the 2nd position in the world market. Parle-G has achieved 1st position in the market with 69% market share in glucose biscuit and Britannia has only 24% market share. Because parle –g biscuit is one of the oldest company in glucose biscuit and Britannia had come in this field in 1997.
MAJOR INDUSTRIY CONTRIBUTORS Britannia’s competitors are Parle product ltd ,Priya Though Britannia is the oldest company in the Indian market but the company is facing tuff competition. gold Sunfeast , and Anmol and also have some local companies Britannia’s biggest competitor is parle company and also have some other world wide company as Bakeman’s 10%,smithkline 08%, Nutrie 04%,Kwality 04% Other’s 4% , but Parle has 30% of market share and the Britannia has 40% market share Parle is biggest threats for Britannia.
Biscuits: Major Players & Market Share
Nutrine 4%
Kwality 4%
SmithKline Consumer 8%
Others 4%
Britannia 40%
Bakeman's 10%
Parle 30%
Britannia is the market leader in value terms; however, Parle has higher share in terms of volume
PROFILE
The story of one of India's favorite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. 295. The company we all know as Britannia today. The beginnings might have been humble-the dreams were anything but. By 1910, with the advent of electricity, Britannia mechanized its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces. In 1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better" - and made its first foray into the dairy products market. In 1999, the "Britannia Khao, World Cup Jao" promotion further One of India’s best known brands and also one of the most admired Food Brands in the country. • The Britannia brand is all about eating healthy for leading a better life • Largest company in the Indian Food processing industry whose product range also includes Breads and Cakes. • Manufacturing and sourcing locations spread across the length and breadth of the country. • Pan-India presence with a coverage of tens of thousands of outlets and having one of the strongest distribution networks in the country
• Exporter of key biscuit brands enjoying brand loyalty in export markets.
PRODUCT OFFERING: EAT HEALTHY THINK BETTER From the tag line of Britannia we can know that it’s only for bakery products like biscuits. The products are like as we know; Britannia marie gold Tiger Good day 50-50 Britannia treat Milk bikis Nutri choice Time pass Little heart Nice time Britannia greetings and many more…….
BRITANNIA MARIE GOLD
Britannia's oldest brand enjoys a heritage that spans the last 50 years - and going strong. In a market swamped with me-too products and where even the name 'Marie' has become generic, Britannia Marie Gold has maintained its stronghold. Today, the ever-popular Marie Gold is synonymous with the 'Tea Time Biscuit'. Its taste, crispiness and lightness make it a must for every tea break. It is the #1 brand in its category by a long shot.
OUTLET IN THE COUNTRY Britannia is available in all over India. Britannia’s all the products we can find in every place. Like rural market, urban market and cities and sma The Britannia biscuit is most admiring product and ll town also in village. The company’s distribution channel divided in three levels. Manufacturer to distributor, distributor to whole seller and whole seller to retailer then the customer. The biscuit generally available in every daily needs shop provision stores, grosery shop.
THE STRATEGY OF BRITANNIA The company’s policy is customer satisfaction with less price as well as quality. Target maximum customer and sale of maximum volume. The company wants to reach the product in every segment of customer. The also have targeted to urban, rural, city town and villages area of a market. High promotion for selling the product and achieve maximum market share. The company wants to increase the profitability by selling of maximum quantity. The company is facing high competition so the profit margin is low but high turnover. The company’s major competitors are PARLE , SUNFEAST ANMOL and PRIYA GOLD, Britannia volume crossed one lakh ton biscuit in 1994
PRSENT AND FUTURE OF BRITANNIA Britannia industries ltd is one of Indies oldest company the company crossed more than 100 year .not only completed more than century but also achieve huge reputation and brand name now the company has a better position in global market the company was started with Rs 295/in 1892.but now the companies turnover is 23464mn in rupees as per the financial year 2006-2007. the Britannia company does business in many country as newzland, France Australia and many more country. also company crossed the volume of 300000ton selling of biscuit in 2004.company is enjoying 40% market share. ,
GLOBAL EXISTENCE The Wadia Group of India along with Group Dan one of France, are equal shareholders in ABIL, UK which is a major shareholder in Britannia Industries Limited. GROUPE DANONE is an International FMCG Major specializing in Fresh Dairy Products, Bottled Water and Biscuits/Cereals. One of the World leaders in the food industry, these are some of the laurels it possesses: • • •
No # 1 worldwide in Fresh Dairy Products No # 1 worldwide equally placed in Bottled Water (by volume) No # 2 worldwide in Biscuits and Cereal Products
Through its three core businesses (Fresh Dairy Products, Beverages and Biscuits and Cereal Products), GROUPE DANONE is committed to improving the lives of people around the world by providing them with better food products, a wider variety of flavors and healthier pleasures. Its dominant position worldwide is based on major international brands and on its solid presence in local markets (about 70% of global sales come from brands that are local market leaders).
COMPANIES FINANCIAL OFFERING Britannia's gross sales turnover increased to Rs 18,179 mn in 2005-06 from Rs 16,154 mn in the previous year, registering a growth of 13%. Operating profit at Rs 1,763 mn increased by 7%, profit before tax and exceptional items at Rs. 1,958 mn declined by 19% against 2004-05 , impacted by the profit on sale of long term investments that accrued to 'other income' last year.
The Company achieved these results despite significant increases in input cost, particularly sugar, fuel and oils, coupled with aggressive pricing in the industry. Your Company's focused initiatives on commercializing market place opportunities, supply chain efficiencies and overall cost management resulted in its top line growth and profitability. Operating margin at 10.3% in 2005-06 compared with 10.9% in the previous year was impacted by the inflation in input costs. Despite stiff competition, your Company stabilized and held its overall market share at 31.7% in volume and 38.8% in value for the last year
Exports turnover during the year was Rs 111.71 mn against Rs 71.65 mn in 2004-05, a growth of 56%.
SIGNIFICANT RATIOS 2005-06
200405
%
26.7
33.5
Rs.
229.8 185.7
Measures of Investment
Return on equity
Profit after tax Equity shareholders' funds
Book value per share
Shareholders' funds Number of equity shares
Dividend cover
Earnings per share
times
3.5
3.8
%
11.3
15.2
Dividend (plus tax) per share
Measures of Performance
Profit margin
Profit before tax & exceptional item Sales + Other Income
Debtors turnover
Sales
times 87.2
36.5
times
9.8
12.0
%
1.7
1.4
times
1.1
0.9
%
27.0
32.5
Debtors + Bills receivable
Stock turnover
Sales Stock
Measures of Financial Status
Debt ratio
Borrowed capital Equity shareholders' funds
Current ratio
Current assets Current liabilities
Tax ratio
Tax provision Profit before tax
Founders • Dr. N Balasubramanian
• Dr K.B Chandrashekhar • Mr Arjun Malhotra • Prof. Jagdish Sheth • Dr. Sridhar Mitta Board of Directors Name Designation Mr Nusli N Wadia • Ms. Vinita George Director •
• Mr. Keki Dadiseth Director • Mr Avijit Deb Director • Mr Stephan Gerlich Director • Mr. A K Hirjee Director • Mr Nimesh N Kampani Director • Mr S S Kelkar Director • Dr. Vijay Kelkar Director
Chairman
• Mr Pratap Khanna Director • Mr Jeh Wadia Director • Mr Francois Xavier Director
