History

 Britannia is a brand which many generations of Indians have grown up with and our brands are
cherished and loved in India and the world over. Britannia products are available across the
country in close to 5 million retail outlets and reach over 50% of Indian homes.
 We have a

 Britannia believes that ‘Taste & Trust’ are its sobriquet and will constantly endeavor to make a
Billion Indians reach out for a delightful and healthy Britannia product several times a day!
 Core Values : ”It's not hard to make decisions when you know what your values are”. Those
words capture, in a nutshell, what we believe in. Our foundation is built on the core values that
we stand by and demonstrate through our actions every single day.
1)Respect 2) Ownership 3) Passion for Learning 4) Leadership
 Revenue (2020)
$1,619 m
 10.66% 2020 vs 2019
 Net Income (2020)
$170 m
 15.57% 2020 vs 2019
 Net Profit Margin
10.49 %
 4.38% 2020 vs 2019
 M Cap *
$9,224.62 m
 Enterprise Value/Sales *
6.02

Milestones
 1892
 Established in Kolkata with an investment of just Rs. 295.


 1918
 The Company was incorporated on 21st March, as a Public Limited Company under the Indian
Companies Act, VII of 1913. The company manufactured bakery and soyabean products and
exported cashew kernels and sea food products.


 1921
 The Company obtained a priority of Certificate and imported new machinery thereby becoming
the first biscuit company in India to install and run a gas oven plant.


 1924
 A new factory was established at Kasara Pier Road in Mumbai. In the same year, the Company
became a subsidiary of Peek,Frean&Co.Ltd., U.K.,a leading biscuit manufacturing company, and
further strengthened its position by expanding the factories at Calcutta


 1939-45
 A large part of the Company's production was diverted to war effort on account of World War II
and at times as much as 95% of the total capacity was booked for the production of Service
Biscuit.


 1952
 The Calcutta Factory was shifted from Dum Dum to spacious grounds at Taratola Road in the
suburbs of Calcutta. During the same year automatic plants were installed there and later in
Mumbai in 1954.


 1954
 The development of high quality sliced and wrapped bread in India was pioneered by the
Company and was first manufactured at Delhi.


 1955
 Britannia launches the delicious Bourbon biscuit in India.


 1963
 Britannia Cakes hit the markets.


 1975
 Britannia takes over biscuit distribution from Parry's


 1976
 Britannia Bread is introduced in Calcutta and Chennai


 1978
 The Indian share holding in the company crosses 60%


 1979
 With effect from 3rd October, the name of the Company was changed from the Britannia Biscuit
Co., Ltd., to Britannia Industries Ltd.


 1980
 The Company signed a 10 year technical collaboration agreement with Nebico Pvt. Ltd., Nepal,
for the supply of know-how relating to manufacturing, packaging and marketing of biscuits and
selection of plant and machinery.


 1983
 Sales cross Rs. 100 crores.


 1986
 The turnover increased by 19.4% over the the previous year to Rs 192.15 crores. Good Day, a
new biscuit launched during the year met with good response.


 1987
 In (16 months), the total sales turnover increased on an annualised basis by 38.7% over the
previous year. Increase in sales of bakery and soya products divisions and higher cashew exports
helped to realise higher sales. With the introduction of some more brands during the year, the
total biscuit brands of the bakery division reached 27. The soya products division introduced a
range of extruded products under the brand name VITAL FEAST.


 1989
 The Company launched new brand of biscuit,namely, CIRCUT'. Another brand PURE MAGIC was
extended nationally and pista badam was added to GOOD DAY range of biscuits. The Executive
Office of the company moves to Bangalore.


 1990
 Two new brands of biscuits, Elaichi Cream and Petit Beurre are launched. A new Cashew Badam
variant of the brand Milk Bikis and Pure Magic biscuit vanilla flavour is launched.


 1992
 Britannia celebrates it Platinum Jubilee!


 1993
 The Wadia Group acquires a claim in the company and becomes an equal partner with Group
Danone. Britannia also launches Little Hearts and 50-50 biscuits.


 1994
 Annual volume produced crosses 1 lakh tonne of biscuits. This year Britannia launches Baker's
Choice and Thinlite - aimed at the health conscious consumer.


 1995
 Britannia identifies a new mission - to make every 3rd Indian a Britannia consumer. It also
changes its Corporate identity to "Eat Healthy, Think Better"


 1996
 Britannia Marie Gold and Milk Bikis Milk Cream perform exceptionally well in the market and
the company's profits improve despite the slow down in the economy.


 1997
 Britannia launches its Dairy products. Britannia also launches Tiger biscuits, Chekkers and Jim
Jams.


 1998
 The company launches Half/Half, a soft cake filled with cream in two variants, chocolate-vanilla
and vanilla-orange.


 1999
 Britannia launches its brand of flavoured milk and the famous Britannia Encyclopaedias.


 2000
 Britannia Industries launches the hugely successful campaign `Britannia Khao, Cricketer Ban Jao'.
It also launches the product Vita Mariegold in this year. Britannia also launches Milkman Lassi
and Mlikman Cold Coffee.Britannia was voted in Top 300 small companies by Forbes Global.


 2001
 Britannia Industries launches Britannia Milkman Milk in Delhi. Britannia is acknowledged as No.1
food brand of India by Economic Times Brand Equity survey.

 2002
 Britannia Industries Ltd announced on March 26, 2002 that it has entered into a joint venture
with the Fonterra Cooperative Group, New Zealand's biggest company and one of the leading
diary co-operative groups in the world. Britannia's new COO is Nikhil Sen.


 2004
 Britannia was accorded the status of being a 'Superbrand'. Volumes crosses 3, 00,000 tonnes of
biscuits. Good Day adds Choconut to its range.


 2005
 Relaunches the brand Tiger, with the highly successful slogan - 'Swasth Khao, Tiger Ban Jao' and
also launches 50-50 Pepper Chakkar.


 2007
 Britannia industries formed a joint venture with the Khimji Ramdas Group and acquired a 70
percent beneficial state in the Dubai-based Strategic Foods International Co. LLC and 65.4% in
the Oman-based Al Sallan Food Industries Co. SAOG. Britannia launches NutriChoice - the first of
its kind of biscuits in India - with no added sugar.


 2009
 Britannia takes full control of Daily Bread. Britannia New Zealand Food (BNZF) became a BIL
subsidiary after BIL bought out New Zealand's Fonterra from the existing joint venture. BNZF
was renamed Britannia Dairy Pvt. Ltd. (BDPL). Britannia became the first Bakery brand in India to
remove trans-fats from 99.9% of its products. Wadia Group became the largest shareholder in
BIL after acquiring stake holdings from Group Danone.


 2010
 Britannia Industries Ltd has appointed Dr. Vijay L. Kelkar as an additional Director on the Board
of the Company with effect from May 28, 2010.


 2011
 Britannia received the Most Respected Company Award 2011 from Businessworld.Bourbon
received the Most Popular Confectionery Product Preferred By Youth (Biscuit) Award.
 Britannia Bread launched its new range of Health Breads in Delhi in November. The range
consists of Honey & Oats Bread, Multi-Grain Bread, 100% Whole Wheat Bread and Multi-Fiber
Bread.
 Britannia was honoured with `Creative HR Practices Award' by Employer Branding Institute,
India.
  IMC Ramakrishna Bajaj National Quality Award 2011 was awarded to Britannia Industries
Limited.
 The Modern Trade team of Britannia was honoured with Winner-BEST BAKERY SUPPLIER award
for the year 2011-12, at the 1st SPENCER'S Best Supplier Awards 2012 on 22nd June.


 2012
 Britannia was awarded the Global Performance Excellence Award (GPEA) by Asia Pacific Quality
Organization (APQO).


 2013
 'Experience of Health' with Nutrichoice | Britannia brings home the goodness of golden, sun-
kissed wheat with its all new NutriChoice Crackers Range.


 2014
 Chunkies Tie-up with Amazon | An exclusive tie-up with Amazon for the launch of its latest
product Good Day Chunkies, a super-premium chocolate chip cookie.


 2015
 Britannia Bourbon turns 60 | Britannia Bourbon, India's first premium chocolate biscuit
completes 60 glorious years.

 2016
 Cake Biscotti | Britannia launches Cake Biscotti, India’s first ever classic 'Bridge' product
combining the best of the world of a cake and that of a cookie.
 Cutting - edge technology | Britannia launched its state of the art R&D Centre facility in Bidadi,
Karnataka.

 2017
 Enriching our portfolio - Britannia-Chipita JV | Entered into a joint venture agreement with
Chipita S.A., a Greek company, for the manufacture and sale of ready to-eat delicious croissants.

Portfolio Segments:

 The company classifies its product portfolio into five divisions; Biscuits, Breads, Dairy, Cakes, and Rusk.
The Biscuit division of Britannia offers good day cashews, good day butter, good day nuts cookies, choco
chunkies, good day choco-chip, good day choco-nut, wonderfulls choco nut, berries and nuts and butter
almond. It offers crackers such as 5050 sweet and salty, maska chaska, time pass, top, matri masti. Further
it also offers digestive wheat biscuit, digestive 5 grain, cracker simply life, cracker nature spice, thin
arrowroot, heavens, nutrichoice essentials and digestive zero. These products sold through Good Day,
Crackers, NutriChoice, Marie Gold Tiger Milk Bikis, Jim Jam + Treat, Bourbon, Little Hearts, Pure Magic and
Nice Time brands.
  Under Breads division, the company offers whole wheat breads including atta kulcha, muti-grain, 100%
whole wheat bread, honey oats bread, multi fiber, brown bread and atta; white sandwich breads including
vitamin enriched bread, healthy sliced bread and popular; bread assortment including kulcha, fruit bread,
fruit bun, burger bun, and pav. It further provides tiger and marie gold biscuits and daily breads.
 The company’s Dairy division offers cheese including slices, slimy cheese slices, cubes, cheeza, classic,
asli pepper, Mexican chilli, cheese block, peppy pizza, natural cheddar cheese, cream cheese, and
processed cheese tin; fresh dairy products including britania milk, masala chaas, choco milk, dahi, flavoured
yoghurt and badam milk.
 Accompaniments including cow ghee, dairy whitener and butter. Cake division of the company includes bar
cakes, veg cakes, chunk cake, nut & raisin romance, muffills and biscotti. Rusk division provides rusk
products. The company operates research centers Tamil Nadu and in Karnataka states of India. It helps in
developing new products.
 In FY2018, the company spent INR285.4 million on research and development. Britannia manages business
across 60 countries. It operates through 13 factories and four franchisees selling across more than 100
cities and towns of India. The company has business presence across North America, Europe, Africa and
South East Asia.

Biscuit

 Biscuit is one the fastest growing categories within FMCG. The per capita consumption of
biscuits in India relative to certain developed economies is quite low and offers significant
opportunities for category growth. In view of the widespread penetration of biscuits among
households (above 90%), the opportunity for innovation and scale is large in this category

Cake

 Cake, while still not as developed as biscuits as a category, has witnessed some breakthrough
developments in the last few years. The category is developing very quickly with new formats,
new price points, proliferation of flavors & variants and development of eggless packaged cake.
The year 2018-19 has seen your Company launch 3 new formats and it intends to further work
on its innovations in the cake category. Your Company’s aim is to lead the market through
launch of many new-to-market products and thereby, retain its strong market share and
competitive position.
 Rusk
Double baked bread, otherwise known as Rusk or Toast, is a traditional category, but has seen
a revival in recent years, driven by efforts of your Company. Your Company which is already the
leader in this space, has launched a new brand “Toastea”, offering an innovative milk rusk of
superior quality to its consumers. Your Company is also making attempts to galvanize this
category further by launch of healthier offerings like Multigrain Rusk in order to keep abreast of
consumer demand for products that are ‘tasty and healthy’.

 Bread
The bread category has been undergoing significant transformation through the introduction of
healthier variants and your Company has been leading this revolution. However, competition is
on the rise in this segment with the emergence of both organized and unorganized players

Adjacent Business Your Company has entered 3 new categories in Adjacencies during the year under
review:
• Center Filled Croissants: It is a nascent category in the country. However, your Company’s research has
demonstrated that this category has a lot of potential given the busy lifestyles of the youth of the
country.

• Cream Wafers: It is a ` 500 Crores category growing rapidly at over 25% every year. Your Company is
the first branded player with a large national presence to enter this fragmented category.

• Salted Snacks: Snacking is inherent to Indian food culture. It has traditionally implied a variety of
sensorial experience in terms of flavour, taste, shape, texture, ingredients, appearance &
accompaniments. The size of the packaged Salted Snacks market is ` 25,000 Crore, with the category
growing at more than 20% annually. This category can be further classified into 3 segments i.e.,
Traditional snacks consisting of Indian namkeen and Bhujia, Potato wafers and Extruded snacks. There
are more than 2000 manufacturers operating in this category and the migration from unorganized or
local to branded products will drive growth for national players.

Dairy India has been the largest producer and consumer of dairy products since 1998, currently
contributing ~20% of the global production. However, Indian milk industry continues to be largely
unorganized, with organized sector contributing to only 20% by value. In the past few years, the
processed milk products market has witnessed sustained growth due to increasing urbanization, rising
disposable income and proliferation of retail outlets beyond Tier 1 cities. While packaged liquid milk will
remain a key driver of the industry growth, value added dairy products are expected to witness healthy
growth and the overall organized sector’s contribution is expected to increase to 30% of the industry by
2023.

There are two broad trends that are driving this growth: • Changing lifestyles, leading to a shift from
home- made traditional Dairy products (like Ghee and Curd) to packaged forms. • Increasing awareness
of nutrition and health benefits of various Dairy categories like Cheese and Yoghurt.

Engine 2 Segments

1.Snacks

 Snacks is a 25,000 crore category growing at 20% per annum. Launched 5 exciting
formats of Salted snacks in select geographies.

2.Milk shakes

 Milk based drinks is a 2800 crore category growing at 27% per annum
 Launched 4 variants of thick shakes and planning more.

3.Croissants
  Croissants as a category holds promise of exponential growth given its taste, appeal,
convenience and affordability.
 Launched 2 variants under Treat brand

4.Cream Wafers

 Wafers come in various forms and diverse formulations

 Launched 4 variants of wafers under Treat brand

Strategy
 Our strategic expansion plan is based on the principle of ‘One new market a year’. We plan to
expand through local operations in Africa and South East Asia in the coming years.
 Adjacent Business
 During the year, your Company has entered 3 new categories adjacent to the current business in
its quest to be a “Global Total Foods Company”. While the category of Crème Wafers is small,
this segment is experiencing growth which is disproportionately higher than the growth of the
biscuit industry. Consumer response to Britannia Treat Crème Wafers has been promising and
your Company has become a significant player in this category within a few months of launch.
 Your Company has also launched centre filled Croissants under the brand ‘Treat’ in selected
trade channels. A state-of-the-art manufacturing facility for Croissants has been set up in
Ranjangaon, Maharashtra, enabling your Company’s aspirations to lead this category.
 While Salted Snacks is a large category with many strong players, your Company’s strategy is to
achieve strong position in this category by offering disruptive and differentiated product at
competitive prices.
 Your Company’s superior brand strength and massive distribution network would enable
success in these categories and create a solid foundation for many years of growth.

OPPORTUNITY
 Crème Wafers offer your Company a significant opportunity to attain market leadership.
 In Croissants, your company has the opportunity to create a category which is new to the
country. The segment is nascent and the challenge for your Company would be to persuade
change in existing consumer habits in order to make Croissant an everyday choice for today’s
consumers.
 Over the past few years, the snacks category has witnessed a slew of activities such as the
emergence of new players, product innovations, aggressive marketing campaigns to establish
consumer connect etc., all of which have resulted in the opening up of newer opportunities.
 The prospects for the branded snacks market remain bright for the foreseeable future and this
should auger well for your Company’s efforts in this segment.
 However, the presence of a large number of manufacturers and low capital requirements makes
this category hyper competitive. Your Company will need to focus continuously on product
innovation to combat competition, both from within this category as well as from other
categories.
Operational Performance

 The commitment to provide fresh, exciting, tasty and innovative products of the highest quality
continues to be at the core of your Company’s beliefs.
 The initiatives being taken towards introducing new products, establishing state-of-the-art R&D
and manufacturing facilities and increasing outreach to new markets through the strategic
expansion plan based on the principle of ‘one new market a year’ are enabling your Company to
deliver on its promise of being a “Global Total Foods Company”.
 Britannia Industries Limited - SWOT Analysis
 Britannia Industries Limited (Britannia or 'the company') is involved in manufacturing and
distribution of bakery and dairy products. Improved liquidity, focus on quality, and focus on
innovation activities are the company’s major strengths, whereas increasing trade receivables
remains an area for concern. Growing global bakery market, savory snacks market and
development of new products could provide growth opportunities to the company. However,
intense competition, counterfeit goods, and stringent regulations could affect its business
operations.

 Britannia Industries Limited- Strengths


 Strengths - Focus on quality
 Britannia focuses on maintaining high quality standards throughout its business activities, as
quality assumes greater importance and significance in retaining its customers. It undertakes
stringent quality management principles to ensure delivery of high class services to its clientele.
Compliance with the highest standard enhances the brand image of the company and raises
customer confidence in the company’s offerings. The company’s quality and the environment
department continuously strives at standardizing management systems, adding criteria and
behavior models, and implementing these standards to achieve integration of processes. The
company biscuits, cake and rusk manufacturing units are ISO 22000 certified; company’s
consumer care cell is certified with ISO 10002 and few factories are AIB certified.

 Strengths - Focus on innovation
 Britannia puts strong focus on its innovation activities. Innovation based strategies enables the
company to stay abreast of the changes in the industry and provides it with ‘first mover’
advantage by launching products ahead of competition. Britannia manages innovation activities in
order to launch new and tasty products with improved quality and texture. Britannia aims on to
develop its value engineering, product and packaging and building healthier product portfolio. In
FY2018, Britannia incurred INR285.4 million in its research activities. Britannia’s development
centers are present in Karnataka and Tamil Nadu. Britannia also associates with different firms to
strengthen its developmental activity across health and wellness, taste tool boxes, and
chocolates.

 Strengths - Liquidity position
 The company's liquidity position has strengthened during the review period. The company had
current ratio of 1.9 at the end of FY2017, which was significantly higher than the current ratio of
its competitors, Hindustan Unilever Limited and Mondelez International with 1.3 and 0.4
respectively. This is due to increase in total current assets stood at INR31,512.8 million, an
increase of 34.7% over the previous year. High current ratio than the competitors indicates strong
liquidity position of the company and its ability to meet short term obligations than its peers.


 Britannia Industries Limited - Weaknesses


 Weaknesses - Increasing Trade Receivables
 Britannia reported increase in its trade receivables in FY2018. Increasing receivables could
adversely affect the company’s cash flows. The company’s trade receivables stood at INR3,046
million in FY2018 and INR1,791.6 million in FY2017. The company maintains a substantial
amount of current assets in the form of receivables. In the FY2018, the company’s trade and
other receivables accounted for 9.6% of its current assets. Such increasing accounts receivable
reflects inefficient credit management by the company. In the backdrop of recovering economic
 slowdown, the probability of defaults by any of creditors increased, may impact the overall
financial position of the company.

 Britannia Industries Limited- Opportunities

 Opportunities - Emphasis on product developments

 Britannia focused on development of products in the market. Such development of products
offers Britannia a better market position in the market than its rivals. In November 2018, the
company announced its plans to expand its global business by opening two manufacturing
facilities overseas. In February 2018, the company announced a plan to launch 50 new products
under its existing as well as new categories by the end of the 2019. In the same month, the
company planned to launch croissant in packets during the second half of 2018. In January 2018,
the company launched Pure Magic Deuce, a bridge product in biscuits.

 Opportunities - Growing global bakery market
 Britannia is engaged in the manufacturing and distribution of bakery such as biscuits, bread,
cakes and rusks, growing awareness about the health benefit of bakery products is influencing
the market. Hectic lifestyle, increasing demand for sugar free bakery products, and preferences
for organic and naturally baked goods, along with growing economy, increasing urbanization,
changing eating patterns, and growing young population are also leading to growth in the market.
According to an in-house research report, the global bakery and cereal market was valued at
US$484,391.9 million in 2017 and is projected to grow at a CAGR of 4.1% during 2017-22 to
reach US$599,451.2 million by 2022. Approximately 142,528 million kilograms of bakery products
are expected to be consumed by the end of 2022 at a CAGR rate of 2.3% during 2017-22.
Europe reported considerable growth. In Europe, the bakery and cereal market was valued at
US$169,493.3 million, which accounted for 35.3% market share, whereas the US accounted for
22.6%, followed by Asia-Pacific (20.5%), Rest of the world (19.1%) and the Middle East (2.8%).
Breads and rolls accounted for the largest portion of sales with 37.4% share; however, cakes,
pastries and sweet pies accounted for 22.4% market, followed by cookies (11.7%), morning
goods (8%), other (9.5%), breakfast cereals (5.7%) and savory biscuits (5.3%) respectively in
2017. Approximately 41.6% of market sales are accounted from hypermarkets and supermarkets.
However, food and drink specialists accounted for 37.3%, convenience stores (16.4%), other
(3.5%) and e-retailers (1.3%) in 2017.

 Opportunities - Savory snacks market
 The growth in savory snacks market is likely to increase the company’s business in the future.
Increasing population, increase in per capita consumption, urbanization, growing middle class,
improving technological standards, and increasing number of snacking occasions are driving the
savory snacks market across the world. According to an in-house research, the global savory
snacks market is expected to reach US$129,158.5 million by the end of 2021, where processed
snacks accounted for 36.4% of total market value, followed by potato chips (25.8%), nuts and
seeds (15.3%), ethnic or traditional snacks (11.6%), popcorn (4.9%), meat snacks (3.1%) and
others (2.9%). In terms of volume, the market is expected to reach 11,929.5 million kg by 2021.
Growth in the global savory snacks market is expected to stem primarily from the US and other
developing countries in Asia-Pacific, followed by Europe, Rest of the World and the Middle East.
The increasing population in Asia-Pacific, coupled with a healthy economic outlook, presents an
opportunity for the growth of the savory snacks market.


 Britannia Industries Limited - Threats


 Threats - Counterfeit products
  The huge influx of counterfeit products could affect the company's business operations.
Penetration of counterfeit merchandise could lower the company's sales and affect its profit
margins. Customers could mistakenly purchase counterfeit products bearing fake labels, low
quality of the products affect consumer confidence and spoils the brand image of the genuine
company. According to the International Chamber of Commerce (ICC), counterfeiting and piracy
are estimated to cost G20 countries over US$125 billion every year. It is also estimated that
approximately 2.5 million jobs could be destroyed by counterfeiting and piracy. Through low price
offerings, the imitated goods could affect the company's financial performance and brand image.

 Threats - Competitive environment
 The company faces stiff competition in the industry, which is primarily based on product quality,
innovation, service, brand recognition, loyalty and price. The company faces competition from
national, regional and local companies. Its major competitors include Danone SA, ITC Ltd,
Hindustan Unilever Ltd, Kellogg Co, Nestle India Ltd, Parle Products Pvt Ltd, Mondelez
International, Inc. among others. Some of the competitors of the company have greater financial,
marketing and other resources, which enables them to pursue more vigorous marketing and
expansion activities.

 Threats - Stringent regulations
 The company, being a producer and marketer of food products, is subjected to various
regulations by governmental agencies, with respect to production processes, product quality,
packaging, labeling, storage and distribution In India, the Food Safety and Standards Authority of
India (FSSAI) has been established under Food Safety and Standards Act, 2006. FSSAI
develops science based standards for food and regulates the production, storage, distribution,
sale and import to ensure availability of safe food for human consumption. The Food Safety and
Standards Act, 2006 consolidates eight food regulatory laws including The Prevention of Food
Adulteration Act, 1954; The Fruit Products Order, 1955; The Meat Food Products Order, 1973;
The Vegetable Oil Products (Control) Order, 1947; The Edible Oils Packaging (Regulation) Order,
1998; The Solvent Extracted Oil, De oiled Meal, and Edible Flour (Control) Order, 1967; The Milk
and Milk Products Order, 1992; and Essential Commodities Act, 1955 relating to food. The
Department of Animal Husbandry, Dairying and Fisheries at the Ministry of Agriculture oversees
the regulatory compliance to The Food Safety and Standards Act, 2006. The company produces
and markets a range of milk and milk products in India. The act has laid down certain regulatory
requirements in case of milk and milk products in areas including quality control, packing,
certification, marking and labeling standards for milk and milk products. According to the Milk and
Milk products Order, 1992, every company has to obtain a certificate of registration to operate its
business in the country. The company has to incur significant cost to conform to the regulations
and any non-conformance may result in fines and other penalties which may be derogatory to the
company’s image.

ENGINE 2 model
 Britannia

Cake Rusk

Bread Biscuit

Adjacents