CHAPTER -1

INDUSTRY PROFILE

1.1 INTRODUCTION: FMCG

INDUSTRY

The FMCG sector in India expanded due to consumer-driven growth and higher product
prices, especially for essential goods. FMCG sector provides employment to around 3 million
people accounting for approximately 5% of the total factory employment in India. FMCG
sales in the country was expected to grow 7-9% by revenues in 2022-23. The key growth
drivers for the sector include favourable Government initiatives & policies, a growing rural
market and youth population, new branded products, and growth of e-commerce platforms.
Resilience needs to be the key factor in the manufacturing process, daily operations, retail and
logistic channels, consumer insights and communication that will help FMCG companies to
withstand the test of time and create more value for consumers in the long run.

India’s Fast-moving consumer goods (FMCG) sector grew 7.5% by volumes in the April-June
2023 quarter, the highest in the last eight quarters, led by a revival in rural India and higher
growth in modern trade. Fast-moving consumer goods (FMCG) sector is India’s fourth-largest
sector and has been expanding at a healthy rate over the years because of rising disposable
income, a rising youth population, and rising brand awareness among consumers. With
household and personal care accounting for 50% of FMCG sales in India, the industry is an
important contributor to India’s GDP India is a country that no FMCG player can afford to
ignore due to its middle-class population which is larger than the total population of USA.
The Indian FMCG market continues to rise as more people start to move up the economic
ladder and the benefits of economic progress become accessible to the public. More crucially,
with a median age of just 27, India's population is becoming more consumerist due to rising

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ambitions. This has been further aided by government initiatives to increase financial
inclusion and establish social safety nets. Growing awareness, easier access and changing
lifestyles have been the key growth drivers for the sector. The urban segment (accounts for a
revenue share of around 65%) is the largest contributor to the overall revenue generated by
the FMCG sector in India. However, in the last few years, the FMCG market has grown at a
faster pace in rural India compared to urban India. Semi-urban and rural segments are
growing at a rapid pace and FMCG products account for 50% of the total rural spending.

RURAL AREAS – SET TO RISE:

Rural areas expected to be the major driver for FMCG, as growth continues to be high in
these regions. Rural areas saw a 16 percent, as against 12 per cent rise in urban areas. Most
companies rushed to capitalize on this, as they quickly went about increasing direct
distribution and providing better infrastructure. The government of India has also been
supporting the rural population with higher minimum support prices (MSPs). Loan waivers.
And disbursements through the national rural employment guarantee act
(NREGA)programmer. These measures have helped in reducing poverty in rural India and
given a boost to rural purchasing power.
hence rural demand is set to rise with rising incomes and greater awareness of brands.

URBANTRENDS
With Rise In disposal incomes, mid- and high-income consumers in urban areas have shifted
their purchasing trend from essential to premium products. In response, firms have started
enhancing their premium products portfolio. Indian and multinational FMCG players are
leveraging India as a strategic sourcing hub for cost-competitive product development and
manufacturing to cater to international markets.

1.2 GROWTH POTENTIAL

1.Strong Brand: Britannia is a well-established and trusted brand in the FMCG sector, which
gives it a competitive edge.
2. Diverse Product Portfolio: Britannia offers a wide range of products, including biscuits,
cakes, bread, and dairy products, catering to various consumer preferences and needs. 3.
Market Expansion: The company has been expanding its presence in both domestic and
international markets, tapping into new customer segments and exploring growth

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opportunities. 4. Innovation and Product Development: Britannia focuses on continuous
innovation and product development, introducing new Flavors, variants, and healthier options
to meet evolving consumer demands.

5. Distribution Network: The company has a strong distribution network, ensuring its
products reach a wide customer base across different geographies.

1.3 ECONOMIC FACTORS

Britannia Industries Limited is an Indian food company that primarily operates in the
fastmoving consumer goods (FMCG) sector. When considering the economic factors that can
impact Britannia Industries or any company operating in the FMCG sector, several key
factors come into play
1.Inflation: Changes in inflation rates can impact the cost of raw materials, production, and
pricing strategies.
2. Consumer Spending: The overall economic conditions and consumer spending patterns
can affect the demand for Britannia's products.
3. Exchange Rates: As Britannia operates in both domestic and international markets,
fluctuations in exchange rates can impact its export/import costs and profitability.
4. Government Policies: Changes in government regulations, tax policies, and trade policies
can have an impact on Britannia's operations and profitability.
5. Input Costs: Fluctuations in the prices of raw materials, energy, and labour can affect
Britannia's production costs a profit margin

1.4 MARKET SHARE

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Britannia Industries Ltd. share price moved up by 33% from its previous close of Rs.
4,655.20.
Britannia Industries Ltd. stock last traded price is Rs. 4,67.60.

1.5 COMPETITORS OF BRITANNIA INDUSTRIES LIMITED

1) Nestle India ltd

2) Food & Inns ltd
3) Tasty Bite Eatables Ltd
4) Parle-G
5) Horlicks
6) ITC
7) Sunfeast

1.6 GOVERNMENT REGULATIONS

1) Food Safety: britannia must adhere to government regulations to ensure the safety
and quality of their products .
2) Labeling and Packaging: the company must comply with rules and regulations
regarding accurate labeling of ingrediants nutritional information, And proper
packaging

3) Advertising Standards: Britannia needs to follow guidelines set by the Govt issue
truthful and responsible advertising practises

4) Tax Compliance: The company must fulfil its tax obligations as for the government
regulations

5) Trade Policies: Britannia operates in both domestic and international markets so they
need to navigate trade policies and regulations to Presilates the smooth business
operations

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 CHAPTER 2

COMPANY PROFILE
2.1 BRITANNIA INDUSTRIES LIMITED:

PROFILE
INDUSTRY TYPE Fast- moving consumer goods (FMCG)

YEAR FOUND 1892

HEAD QUARTERS Kolkata, West Bengal, India

KEY PEOPLE • Mr. Nusli N. Wadia (Chairman)
• Varun Berry (Managing Director)

PARENT COMPANY Wadia Group

COUNTRIES PRESENT Over 80

MARKET CAP 1.08 trillion

EMPLOYEE STRENGTH Over 4500

MAJOR PRODUCTS Bakery products, including biscuits, bread cakes
and Rusk and dairy products, including milk, butter
cheese ghee and dahi
REVENUE, OPERATING INCOME
NET INCOME ₹11,878.95 crore (US$1.7 billion) (2020)

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 ₹1,402.63 crore (US$200 million) (2020)

1,860.87 crore (US$260 million) (2020)

AREA SERVED
India
WEBSITE www.britannia.co.in

Britannia Industries Limited is an Indian food and beverage company. Founded in 1892 and
headquartered in Kolkata, it is one of India's oldest existing companies. It is now part of the
Wadia Group headed by Nusli Wadia. The company sells its Britannia and Tiger brands of
biscuits, breads and dairy products throughout India and in more than 60 countries across the
world 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.
The company’s Dairy business contributes close to 5 per cent of revenue and Britannia dairy
products directly reach 100,000 outlets. Britannia Bread is the largest brand in the organized
bread market with an annual turnover of over 1 lac tons in volume and Rs.450 crores in value.
The business operates with 13 factories and 4 franchisees selling close to 1 million loaves

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daily across more than 100 cities and towns of India. Britannia believes that ‘Taste & Trust’
are its sobriquet and will constantly endeavour to make a Billion Indians reach out for a
delightful and healthy Britannia product several times a day! Imagine Britannia,

2.2 BACKGROUND

Britannia Industries Ltd. has established itself as a well-known brand in the food and
beverage sector, particularly famous for its varied range of biscuits and bakery products.
Established in
1892 in Kolkata by a group of businessmen, the initial venture has expanded manifold to
create a space in the hearts of millions across India and beyond.

The journey of Britannia, which began with a focus on biscuits, has now broadened its
horizons, venturing into various sectors of the food industry, including dairy and other snack
categories, making its presence felt in over 80 countries globally. The company has always
prioritised providing not just tasty, but also nutritious food options to its customers,
contributing to its significant growth and penetration into different markets. From the classic,
much-loved biscuits like Good Day, Marie Gold, and 50-50 to a range of healthy snacks, it
ensures that every snack time can be both delicious and nutritious. Their R&D team plays a
crucial role in maintaining and innovating this vast portfolio, ensuring that it aligns with
consumer preferences while keeping quality at the forefront.

2.3 HISTORY OF BRITANNIA INDUSTRIES LIMITED

Britannia Industries Limited is an Indian food-products corporation based in Bangalore, India.
It sells its Britannia and Tiger brands of biscuit throughout India. Britannia has an estimated
market share of 33%. The Company's principal activity is the manufacture and sale of
biscuits, bread, rusk, cakes and dairy products. The company was entrenched in 1892.
Initially, biscuits were Mold in a small house in central Kolkata. Later, the enterprise was
acquired by the Gupta brothers mainly Nalin Chandra Gupta, a renowned attorney, and
operated under V.K Brothers."

In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and The
Britannia Biscuit Company Limited was launched.

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.

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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 and Mumbai.

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 Tarantola
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.

1961, Manufacture of bread was started in Mumbai and a new bread bakery was set up at
Delhi in 1965.

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,

1986, The turnover increased by 19.4% over the previous year to Rs 192.15 crores. Sales of
biscuits, in terms of volume, registered a satisfactory growth. "Good Day", a new biscuit
launched during the year met with good market response. Production of bread at Delhi unit
was adversely affected due to launched pure refined cooking oil under the brand name of
"Vital"

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".

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1989, The Company launched new brand of biscuit, namely, CIRCUT'. Another brand
"PURE MAGIC" was extended nationally and pasta badam was added to "GOOD DAY"
range of
biscuits. Bread production and affected for some time at Delhi factory due to industrial unrest.

2.4 NATURE OF BUSINESS

Britannia Limited, a prominent player in the Indian food industry, has a rich and diverse
business nature. Established in 1892, the company has evolved into a leading producer of
bakery and dairy products. Britannia's core focus lies in delivering high-quality and
innovative food items to cater to the diverse tastes and preferences of consumers. With a wide
product portfolio that includes biscuits, bread, cakes, and dairy products, Britannia has
successfully carved a niche in the market. The company is known for its commitment to
quality, nutrition, and taste, making it a trusted household name. Additionally, Britannia has
embraced sustainability practices, reflecting a conscientious approach towards environmental
and social responsibility. Its extensive distribution network ensures the availability of
products across the country, contributing to its widespread popularity. Britannia's ongoing
efforts in research and development underscore its dedication to staying at the forefront of the
ever-evolving food industry. Overall, Britannia Industries Limited is characterized by a
dynamic an adaptive nature, symbolizing its enduring presence and influence in the Indian
food market.

2.5 VISION, MISSION, QUALITY POLICY VISION

• Expanding our global client base via enhancement of our reputation in selected business
segments

• To Be a leader in the food industry by consistently delivering the superior products and
services

• A flexible and innovative approach towards the needs of our clients, aware
• of emerging trends and technological breakthroughs
• To continually innovate and provide high-quality products that delight consumers
• To build strong Relationship with customers and suppliers based on trust and mutual
growth to be a responsible corporate citizen by promoting social and environmental well-
being.

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MISSION

• To meet or, where possible, exceed the expectations of our diverse client base
• “To with flexible, innovative solutions of the highest quality that adhere to safe.
• “To Deliver a superior and innovative food product to consumers, ensuring their health
happiness and satisfaction, we strive to be a responsible and sustainable company, creating
Value for all stakeholders and contributing positively to society.”

• We demand the best of ingredients and package their natural goodness in our products,
without compromise

QUALITY POLICY

 Britannia is a committed to ensuring the highest quality and safety standards in all their
products.

 They follow the strict quality and control measures throughout the manufacturing process
to deliver the consistent and excellence.

 Continuous improvement and innovation are at the core of their quality policy.
 Britannia’s products are designed to be safe, nutritious, and delicious for consumers

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2.6 WORK FLOW MODEL

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2.7 PRODUCT / SERVICE PROFILE
Britannia’s entire product offering derive their premium qualities from the principles of health
and taste. This key premise has led to the evolution of a lifetime menu where Britannia
product exists for every stage in a person’s life. The highest consumption group for biscuit are
children; here Britannia offers milk Bikis’ with all the ‘goodness of milk’ required by younger
kids, While the tiger brand is aimed for 7–14-year-olds and provides them with the exuberant
health required by winners of tomorrow. Treat a range of delicious cream biscuit- is meant as
a treat for children during fun times.

A particularly notable success has been little hearts, meant for teenagers and kids, which has
completely dispelled an erstwhile industry axiom that this target group did not snack on sweet
biscuit. Moving on other age groups, Britannia created 50-50 as a biscuit snack for young
adults. The Savory time pass brand is targeted at the same age group as well,

Britannia marigold, is regarded as a tea time offering, packed with wheat energy with
healthconscious urban adults. Good day, a cookie filled with rich ingredients is a healthy
everyday treat for entire family. Britannia has a range of cakes and bread entrenched in the
bakery segment. These products allow the consumers better interaction with the brand and
maintain continuity of the taste with health promise.

In 2004, the company was extremely active in rolling out new products. It introduced its Little
Hearts brand, which are referred to as “melt in the mouth” biscuits. Little Hearts Orange
(orange-flavoured biscuits) and Classic retail for 10 Rupees. Britannia also added Black
current

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Treat, Jam Treat Good Day Ginger nut and Good Day Choco-Nut to its growing biscuit line in

2004. For the bread and dairy markets, Britannia introduced NutriChoice vitamin-enriched bread
and Milk Man low-fat cheese slices.

For the bread and dairy markets, Britannia introduced NutriChoice vitamin-enriched bread
and Milk Man low-fat cheese slices. There were no new product launches in 2005, instead the
company worked on strengthening existing brands. It released Premium Assorted Exotic
Creme
Biscuits, which feature varieties of some of the most popular biscuits – Pure Magic Chocolate,
Pure Magic Vanilla, Pure Magic Strawberry & Vanilla and Jam Treat. The pack retails for. The
company also reformulated its 50:50 Maska Chaska biscuits.

PRODUCTS
GOOD DAY BISCUITS
These are delicious and crispy biscuits come in various flavours like butter cashew and pest
badam chocolate chips they are perfect for enjoying with a cup of tea.

MARIE GOLD BISCUITS

These are classic tea time biscuits known for the light and crispy, making them a great choice
for a quick snack or to dunk in your favourite beverages

50-50(MASKA-CHASKA)
These biscuits have a unique combination of sweet and salty flavours, making them a popular
choice for snacking, having 50-50 new variety of time pass biscuits

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BOURBON
Thick, rich and delicious chocolate packed between two crunchy chocolate biscuits, topped
with sugar crystals - presenting, the original Bourbon, from the house of Britannia. India's
first and favourites Bourbon's sweet adventure began in 1955.

TIGER
Tiger, launched in 1997, became the largest brand in Britannia's portfolio in the very first year
of its launch and continues to be so till today. Tiger has grown from strength to strength and
the re-invigoration in June 2005 and more recently, in Apr 2008 has further helped booster its
growth in the highly competitive glucose biscuit category and Tiger Elaichi

MILK BIKIS
Milk Bikis has been trusted by mothers as a source of develops energy of milk and their
loyalty to the brand has made it an essential part of their children's nutrition regimen. This
biscuit is equipped with smart nutrients iron, 4 vital vitamins and iodine, proven to help
mental and physical development in growing kids.

TREAT

Britannia Treat has been a children's favourite for two decades. Smooth crème sandwiched
between crispy biscuits; this delicious treat comes in a variety of lip-snacking extra flavors.
Britannia Nutri Choice Protein is a high fibre cookie with 0% Maida. Made with the goodness
of milk and almonds, it has 20% protein in every cookie. Supplement your diet with this
protein snack. Nutri choice in seeds, Nutri choice herbs which support immunity

LITTLE HEARTS
Little Hearts was launched in 1993 and targeted the growing youth segment. A completely
unique product, it was the first-time biscuits were retailed in pouch packs like potato wafers.
The launch message introduced a special taste experience that made the unlikeliest
characters - like Dracula and Frankenstein - melt.

TOASTEA
Britannia toast and tea are the ultimate pair. Britannia Rusk contains 0% trans fat. Britannia
Rusk comes in two variants - Premium Bake Rusk and Milk Rusk.

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2.8 OWNERSHIP PATTERN
THE MEMBERS OF THE BOARD OF DIRECTORS OF BRITANNIA ARE

Sl No Name Designation
1 Mr. Nusli N Wadia Chairman
2 Mr. Keki Dadi Seth Director
3 Mr. Avijit Deb Director
4 DR Ajai Puri Director
5 Mr. Jeh N Wadia Director
6 Mr. Ness N Wadia Director
7 Dr. Ajay Shah Director
8 Dr. Y S P Thorat Director

9 Mr. Keki Elavia Director

10 Mrs. Tanya Dubash Director
11 Mr. Varun Berry Managing Director

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2.9 ORGANIZATION STRUCTURE

2.10 ACHIEVEMENTS/AWARDS

• In 2022, the company was ranked 4th in the list of India's most chosen FMCG brands, as
per Kantar India's annual Brand Footprint report.
Britannia won the Global Sustainability Leadership Awards by the World Sustainability
Congress in 2021.

• The Economic Times listed the company's Good Day biscuit brand as the Brand Equity’s
Most Trusted Brands of Indians in 2019-20.

• The company was selected for special recognition under the Leading RE Investor category
at Renewable Energy India Awards 2016.

• In 2014, the company was voted as Reader's Digest Trusted Brand in India under the food
and beverage category, part of the Reader's Digest Trusted Brand Survey.

• In 2014, The Economic Times ranked the company at 11 in the 100 Most Trusted Brands
of India list 2014.

• The company was listed in India's Most Attractive Brands 2013 in a TRA Brand Trust
Report survey.

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• It was awarded the Global Performance Excellence Award (GPEA) by Asia Pacific
Quality Organization (APQO) in June 2012.

• It was ranked #2 in the Brand Equity's Most Trusted Brands survey by The Economic
Times.

• In 2012, Britannia received the Golden Peacock National Quality Award – 2012 under the
FMCG category.

• In 2011, Britannia won the Indian Merchants' Chamber (IMC)'s Ramkrishna Bajaj
National Quality Award.

• In 2011, the company received the CII's National Award for Food Safety 2011 in the
category of 'Large Food Businesses - Manufacturing' by the Confederation of Indian
Industry.

• According to The Economic Times' Brand Equity Survey, the brand was ranked 5th in the
top 10 most trusted brands list in India in 2010 and 2nd in 2012, in India's top 10 most
trusted brands list

2.11 FUTURE GROWTH & PROSPECTS

• According to simplywall.st, Britannia Industries is expected to grow its earnings and

revenue by 4.8% and 9.1% per year, respectively. Their EPS is expected to grow by 5%
per year. Their return on equity is forecast to be 52.2% in three years.

• Britannia Industries is planning to invest in the following areas:

• Dairy: Increasing dairy capacity, investing in a new facility in Bihar, and investing in their
existing facility in Ranjangaon

• Cheese: Expanding their cheese business by five times over the next five years through a
JV agreement with Bel SA, France

• E-commerce and MT channels Investing in the growth of these channels

• Accessibility and affordability, working on these areas to penetrate deeper into households

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• Britannia Industries is forecast to grow earnings and revenue by 4.8% and 9.1% per
annum respectively. EPS is expected to grow by 5% per annum. Return on equity is
forecast to be
52.2% in 3 years.

Litrature review:

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