Britannia Industries Limited: SWOT Analysis & Company Profile by BusinessReview

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									Britannia Industries Limited


Britannia Industries Limited: SWOT
Analysis & Company Profile

Reference code: BRCP178CP10-Q4

Published: Oct 2010

Business Review
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Britannia Industries Limited - SWOT Profile                                         Page 1
Britannia Industries Limited


Britannia Industries Limited - Company Overview

Britannia Industries Limited (Britannia) is one of the leading bakery products manufacturers in India. The company, along
with its subsidiaries, is engaged in the production and marketing of biscuits, breads, cakes, as well as dairy products such
as cheese, butters and milk. These products are sold under the brand names of Good Day, Treat, 50-50, Pure Magic,
Tiger, Milk Bikis, MarieGold, NutriChoice, Tiger Creams, and Berry Cherry among others. The company operates
manufacturing plants in Mumbai, Kolkata, Delhi and Uttarakhand. Britannia has operations in India, Mauritius, United Arab
Emirates and Sri Lanka. Britannia is headquartered in Kolkata, West Bengal, India.

Financial Performance

The company reported revenues of (Rupee) INR 38,343.78 million during the fiscal year ended March 2010 (fiscal 2010).
Its revenue increased at a compounded annual rate of 16.82% during the period 2008-2010 with a year on year increase
of 10.82% over fiscal year 2009. During the fiscal year 2010, its operating margin was 2.83% as against an operating
margin of 5.67% during the fiscal year 2009. Moreover, during the fiscal year 2010, the company‟s net profit margin was
2.69% as against a net profit margin of 4.38% during the fiscal year 2009.

Britannia Industries Limited - Key Facts

Britannia Industries Limited, Key Facts

                                  5/1/A Hungerford Street, Kolkata,
                                                                      Ticker Symbol, Stock       500825 (Bombay Stock
Corporate Address:
                                  , 700 017, India                    Exchange                   Exchange)

Telephone                         + 91 33 22870505                    No. of Employees           2,010

Fax                               + 91 33 22872501                    Financial Year End         March

URL                                      Revenue (in INR Million)   38,343.78

Industry                          Consumer Packaged Goods             Revenue (in USD Million)   784.93

Locations                         India, Sri Lanka, United Arab Emirates

Source: Annual Report, Company Website, Primary and Secondary Research


Britannia Industries Limited - SWOT Profile                                                                             Page 2
Britannia Industries Limited


Britannia Industries Limited - Business Description

Britannia Industries Limited (Britannia) is India-based food manufacturing company. It manufactures, and sells bakery and
dairy products in India as well as exports them to the international market. The company markets its products under the
brands Treat, Tiger, 50-50, Good Day, Pure Magic, Milk Bikis, NutriChoice, MarieGold, Tiger Creams, Berry Cherry and
others. Britannia employed 2010 people as of 31 March 2010.

The company conducts its business under Foods business segment which comprise of bakery products and dairy
products. Under the bakery products category, the company offers biscuits, bread, cakes, and rusks. Similarly, it offers
cheese, dairy whitener, curd, butter and ghee under the dairy products category.

The company introduced various new and renovated products across its main brands like , Veg Cakes, the Nutrichoice
Health Starter Kit, NutriChoice 5 Grain Biscuits, NutriChoice Digestive Biscuit , TIGER BANANA. Further, the company
under NutriChoice brand launched SugarOut 3 in three delicious variants namely Litetime, Chocolate cream, and Orange
cream. Similarly, under the Treat brand the company launched Fruit Rollz in four fruit flavours namely Juicy Apple,
Strawberry Surprise, Tangy Orange and Delicious Dates.

In India, the company‟s manufacturing plants are located in Kolkata, Delhi, Mumbai, and Uttarakhand. Britannia also
exports its products to the US, Ghana, Saudi Arabia, Oman, Qatar, UAE, Bahrain, Kuwait, Seychelles and Singapore.

The company operates through various subsidiaries, which include International Bakery Products Limited, J B
Mangharam Foods Private Limited, Manna Foods Private Limited, Ganges Vally Foods Private Limited, Sunrise Biscuit
Company Private Limited, Britannia and Associates (Mauritius) Private Limited (BAMPL) and Britannia and Associates
(Dubai) Private Co. Limited (BADCO). Other subsidiaries include Britannia Lanka Pvt. Ltd, Daily Bread Gourmet Foods
(India) Private Limited (Daily Bread), Al Sallan Food Industries Company SAOG (Al Sallan), and Strategic Food
International Co. LLC (SFIC), among others.

Daily Bread is involved in the business of premium bakery products while BAMPL is a holding company of BADCO, a
Jebel Ali Free Zone company, which in turn holds strategic investments in SFIC and Al Sallan. Dubai based SFIC and Al
Sallan are regional players in the biscuits, wafers and cookies segment and export their products across the world. SFIC
is engaged in manufacturing biscuits and wafers in the Middle East. It offers a variety of products under the brand Nutro.
Al Sallan is engaged in the production of cookies, rolls and chocolates. Its products are sold under the brand name
Baker's Pride.

The company's joint ventures include Britannia Dairy Private Limited (BDPL) and Britannia New Zealand Holdings Private
Limited. Klassik Foods Private Limited and Nalanda Biscuits Company Limited are associate companies. Britannia Dairy
Private Limited (BDPL) is a joint venture with M/s Fonterra Co-operative Group Limited, located in New Zealand
principally engaged in the marketing of dairy products, including cheese, dairy whitener, curd, butter and ghee under the
Britannia Milkman brand.

Recently, the company acquired the complete beneficial interest in Strategic Food International Co. LLC, Dubai (SFIC)
located in Dubai, UAE where the company has a sizeable presence. Further, the company launched the Nutro brand in
refreshing new packs and made significant brand investments in the Gulf Cooperation Council (GCC) region. Additionally,
the company entered Kuwait and the Kingdom of Saudi Arabia with reputed distributors.


Britannia Industries Limited - SWOT Profile                                                                      Page 3
Britannia Industries Limited


Britannia Industries Limited - Major Products and Services

Britannia Industries Limited is one of the largest biscuit manufacturing companies in India. The company's key products
and brands include the following:

Britannia Industries Limited, Major Products and Services

Bakery Products:





Dairy Products:


Dairy Whitener






Pure Magic

Good Day



Milk Bikis



Tiger Creams

Berry Cherry
Source: Annual Report, Company Website, Primary and Secondary Research


Britannia Industries Limited - SWOT Profile                                                                       Page 4
Britannia Industries Limited


Britannia Industries Limited - History

Britannia Industries Limited, History

   Year               Event type                                                  Description

                                             The company entered into an agreement with Big Banyan, Coonawarra and Mandala
                                             Valley Wines, to offer the newly launched range of flavoured cheese cubes as a
   2009     Contracts/Agreements
                                             complimentary along with every purchase of Big Banyan, Coonawarra, or Mandala
                                             Valley Wines.

                                           The company acquired 49% equity and preference share holding in Britannia New
                                           Zealand Foods Private Limited (BNZF) from M/s. Fonterra Brands (Mauritius) Holdings
   2009     Acquisitions/Mergers/Takeovers
                                           Limited, Mauritius. After the acquisition, the BNZF has been renamed as Britannia
                                           Dairy Private Limited (BDPL).

                                             Britannia launched iron fortified Tiger Banana biscuits, Good Day Classic Cookies, Low
   2008     New Products/Services
                                             Fat Curd and renovated MarieGold.

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