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4-BRITANNIA INDUSTRIES LTD PROJECT

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					   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 2 nd 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   Kwality   Others
           4%       4%         4%

SmithKline
Consumer
   8%                                           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
                                                                                   2004-
                                                                         2005-06
                                                                                    05



Measures of Investment



Return on equity          Profit after tax                        %       26.7     33.5

                          Equity shareholders' funds




Book value per share      Shareholders' funds                    Rs.      229.8 185.7

                          Number of equity shares




Dividend cover            Earnings per share                     times     3.5      3.8

                          Dividend (plus tax) per share




Measures of Performance




Profit margin             Profit before tax & exceptional item    %       11.3     15.2

                          Sales + Other Income
Debtors turnover               Sales                        times 87.2     36.5

                               Debtors + Bills receivable




Stock turnover                 Sales                        times   9.8    12.0

                               Stock




Measures of Financial Status




Debt ratio                     Borrowed capital             %       1.7    1.4

                               Equity shareholders' funds




Current ratio                  Current assets               times   1.1    0.9

                               Current liabilities




Tax ratio                      Tax provision                %       27.0   32.5

                               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                     Chairman
  • 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

  • Mr Pratap Khanna             Director

  • Mr Jeh Wadia                 Director

  • Mr Francois Xavier           Director

				
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