A

PROJECT REPORT
ON
SUPPLY CHAIN MANAGEMENT
AT
BRITANNIA INDUSTRIES
FOR
THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION

Submitted To,

Submitted By,

Mr. Amanjeet Singh Sethi

Komal Gera

Asst. Professor (FCBM)

Roll No-1461250096

Faculty of Commerce and Business Management

Amrapali Group Of Institutes
Shiksha Nagar, Lamachaur
Haldwani, Uttarakhand

DECLARATION

I, the undersigned, hereby declare that the project report entitled SUPPLY CHAIN
MANAGEMENT IN BRITANNIA INDUSTRIES LTD, submitted by me to the KUMAUN
UNIVERSITY, in partial fulfillment of the requirement for the award of degree of Master
of Business Administration under the guidance of Mr. Amanjeet Singh Sethi, is my
original work and the conclusions drawn therein are based on the material collected by
myself.
The Report submitted is my own work and has not been duplicated from any other source. I
shall be responsible for any unpleasant moment/situation.
Komal Gera
Amrapali Group of Institute
Place: Haldwani
Dated:

ACKNOWLEDGEMENT

Firstly I would like to express my immense gratitude towards our institution Amrapali Group of
Institutes, which created a great platform to attain profound technical skills in the field of
BBA, thereby fulfilling our most cherished goal.
I would like to thank Mrs. Sony Chauhan, head of HR department for her support and
guidance.
I sincerely express my gratitude to Dr. Ritvik Dubey (Director, FCBM department) and Dr.
Siddharth Sharma (Training and Placement Head) for timely support in successful
completion of my project work.
I am very much thankful to our Mr. Amanjeet Singh Sethi (Internal Guide) for extending his
guidance and cooperation in doing this project.

Table of Content

Declaration
Certificate
Acknowledgement
Chapter 1: Introduction.
1.
2.
3.
4.
5.

Introduction To Topic
Objective
Scope Of Study
Research Methodology
Limitations Of Study

Chapter 2:
1. Industrial Profile
2. Company Profile
Chapter 3:
1. Supply Chain Management
Chapter 4:
1. Data Analysis & Interpretation
Chapter 5:
1. Findings
2. Conclusion
3. Suggestions and Recommendations

Annexure
Bibliography

Questionnaire

Chapter 1

INTRODUCTION
In todays rapidly changing business
environment, ever greater demands are being
placed on business

To provide products and services quicker

To the correct location
With greater added value
With no relevant inventory position
Customer want more quality, design,
innovation, choice, convenience and
service, and they want to spend less
money, effort, time and risk.
Supply chain management (SCM) is the
oversight of materials, information, and finances
as they move in a process from supplier to
manufacturer to wholesaler to retailer to
consumer. Supply chain management involves
coordinating and integrating these flows both
within and among companies.

OBJECTIVES OF
THE STUDY
> To analyze the manufacturing process of
the BIL
> To analyze the Supply Chain Management
of BIL.
> To analyze the product distribution system
of BIL.

Scope of Supply
Chain
Management
Information Exchange:Information access and data transfer are highly
recommended in SCM systems. Information
exchange is bidirectional, while information
transfer may be unidirectional. As the company
delivering data may not know whether the data
transferred or exchanged is relevant for the
recipient, the terms data exchange and data
transfer would be more suitable. Transfer or
exchange of data does not necessarily imply that
the recipient is using this data. Therefore, data
transfer does not imply that the planning processes
of the supply chain partners are based on
consistent data.

Collaborative Planning, Forecasting and

Replenishment (CPFR):
CPFR is a business practice that combines the
intelligence of multiple trading partners in the
planning and fulfillment of customer demand.

Links sales and marketing best practices

to supply chain planning and execution
processes

Objective is to increase availability to the

customer while reducing inventory,
transportation and logistics costs.

RESEARCH METHODOLY
The purpose of the methodology is to describe the process involve in the research work. This
includes the overall research design, the data collection method.
Research Methodology refers to the various sequential steps (along with a rationale, of each such
steps) to be adopted by a researcher in studying a problem with certain object or objectives in
view. It would be appropriate to mention that research project are not susceptible to any one
complete and inflexible sequence of steps and type of problems to be studied will determine the
particular steps to be taken and their order too.
SOURCES OF DATA COLLECTION
Data was collected by using both primary and secondary methods. In primary method of data
collection personal interview and questionnaire was used and in case of secondary ways of data
collection the magazines of Britannia was used.
Primary Data
Primary data are those which are collected a fresh and for the first time and thus happen to be
original in character. There are numbers of method of collecting primary data.

Observation

Secondary Data
Secondary data means data that are already available i.e. they refer to the data which have
already been collected and analyze by someone else.

Books
Reports
Magazine
Internet

 Research Type: Ex Post Facto Research (DISCRIPTIVE RESEARCH).

LIMITATIONS
Along with all these benefits there are some
drawbacks also involved in this advance booking
process. Some times sales man takes orders from
the shopkeeper and assures him that the order will
be fulfilled on next day. But during this period the
sales man of other company comes and provides
the same product at some discounts or with some
schemes in this condition the shopkeeper takes the
stock from that sales man
The time period for the project is very less for
understanding the wide organization.
The data collected is also limited as the official persons
of the company are engaged in their own work and they
are not able to give more time to the research student.
Misleading result in the absence of absolute data.
The ratio of the one company cannot always be
compared with the performance of the other firm.
Price level change affects the validity of comparisons of
ratios computed for different time periods.
Comparisons are also made difficult due to differences of
the terms like gross profit, operating profit, net profit etc.

 If company resort to window dressing, outsiders cannot

look into the facts and affect the validity of comparisons.
There is no free access of reputed libraries.
The scope off study is very wide .A large sample would
have provided more confidence in the findings but due to
cost and time constraint the sample size was kept small.
Most of the business units in our country do not have
confidence that the information shared by them with the
people will not be misused. So this makes the employees
reluctant to share information with them. Reluctance is
more if information pertains to financial position and
business operations.

Chapter 2
INDUSTRY

PROFILE
Britannia begins with the business producing
electricity. Britannia mechanized its operations,
and in 1921, it became the first company in Asia
using imported gas ovens. Britannia's business was
growing. Britannia acquired a reputation for quality
and value very fast. During the World War II, the
Government rewarded Britannia by contracting it to
supply "service biscuits" to Armed Forces. And
therefore the company was incorporated in 1918
as Britannia Biscuits Co. Ltd. in Calcutta and in
1924, Peek Frean UK acquired a controlling stake in
the company, which was later passed on to
Associated Biscuits International UK (ABI). During
the 1950s and 1960s, Britannia expanded its
operations beyond Calcutta to Mumbai, Delhi and
Chennai.
In the year 1978 company went for public issues
and Indian shareholding crossed 60%, firmly
establishing the Indian ness of the firm and formed
Britannia Industries Limited (BIL). It crossed the
Rs100 crores revenue mark in next four years (in
1983).

In 1987, Nabisco acquired ABI. Then in 1989, JM

Pillai, a Singapore-based non-resident Indian (NRI)
businessman, and Grouped Danone acquired Asian
operations of Nabisco and the controlling stake in
Britannia. Later, Danone and Nusli Wadia took over
Mr. Pillai's holdings.
Britannia has been jointly owned by Danone and
Wadia Group since 1997. The two along with five
other companies form a holding company called
Associated Biscuits International Ltd., which owns a
51% share of Britannia. The remaining 49% share
is held by the public and financial institutions.
On the operations front, 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 fortified
the affinity consumers
Britannia emerged as one of India's biggest brands
in 21st century in the country. It is equally
recognized for taking innovative approach to its
products and unique marketing concepts: the
Lagaan Match was voted India's most successful
promotional activity of the year 2001 while the
delicious Britannia 50-50 Maska-Chaska became

India's most successful product launch. In 2002,

Britannia's New Business Division formed a joint
venture with Fonterra, the world's second largest
Dairy Company, and Britannia New Zealand Foods
Pvt. Ltd. was born. In recognition of its vision and
accelerating graph, Forbes Global rated Britannia
'One amongst the Top 200 Small Companies of the
World', and The Economic Times pegged Britannia
India's 2nd Most trusted brand.
Having succeeded in garnering the trust of almost
one-third of India's one billion populations and a
strong management at the helm means Britannia
will continue to dream big on its path of innovation
and quality. And millions of consumers will savor
the results, happily ever after.
Britannia puts a lot of emphasis on its primary
biscuit brands including Tiger, Good Day, Marie,
Milk Bikis, 50:50 and Treat. Biscuits make up more
than 80% of the company's production - bread,
cakes and dairy constitute the remaining 20%. Its
brands are considered to be an excellent value by
India's price-conscious consumers.
BIL is the first company to introduce the several
varieties of biscuits in India, such as 50:50, glucose
biscuits for children, chocolate biscuits, butter

biscuits and became the household name of the

country. In fact some of these brands are bigger
than several multinationals in the food business in
India. The Tiger brand biscuit, one of the most wellknown, is extremely popular among rural
consumers - with almost 50% of the brand's value
sales coming in from rural areas.
According to Euromonitor International, Britannia
continues to have a strong presence in India's
bakery products industry. In 2001, the company
had 18.9% market share for all bakery products;
that number rose to 19.9% by 2004. As for the
biscuit portion of the business, Britannia had 41.2%
market share in 2001 and 43.6% in 2004 when
Britannia was the national leader in biscuit sales.
Currently Britannia Industries Ltd, accounts for
about 38% in value and 32% in volume of the
organized biscuits market in India.
Bakery product sales increased from 13.9 billion
Rupees (US$295.6 million) in 2001 to 17.2 billion
Rupees (US$368.1 million) in 2004, a 7.6%
compound annual growth rate. Biscuits made up
82% of Britannia's bakery products value sales in
2001 and rose to 85% in 2004.

Of Britannia's total biscuit value sales, 82% are

from sweet biscuits and 18% are from savory
biscuits and crackers. In the company's baked
foods category, 87% consist of bread products,
13% are cakes.
The entire biscuit market is estimated to be around
1.1 million tones per annum, totaling to around Rs
50 billion. The biscuit segments enjoy the most
developed markets for any item having mass
consumption, It covers over 90% of the overall
potential market. This means over 900 million
Indians consumes biscuits, with varying frequency
in a year. From the supply side the market is highly
competitive, with many small scale manufactures
and the organized large scale sectors.
After the 1997 Britannia changed its strategies
from product oriented to opportunity oriented.
Earlier Britannia has narrow lined products mainly
for kids but when the trends. Preferences and taste
of common man changed Britannia also added
number of varieties in its products and they in real
sense used the opportunity in making the products,
Britannia widen its product line which follows the
STP.

They served the products for all the categories of

people, now biscuit is not only meant for guest but
also for the individuals by introducing tiger biscuits
in small packs. Britannia holds about 46% of
market share (Note1) by value in the fiercely
competitive market. Targeting the key consumers
and and changing the products with opportunity
has worked for the Britannia and that's why they
are the leader in the biscuit range.

Company Profile
Britannia industries limited was established at
Pantnagar on 1 st April 2005 in the area of
approximately 20 acres mainly for the purpose of
production of biscuits as this area is free from
almost all types of taxes.
In Britannia Industries Limited there are many
types of departments which are inter connected
to each other and work together for the welfare of
the Company as the whole. There is a well built
communication system inside the Company which

helps in doing the work on time and with full

efficiency and effectiveness.
The departments of the Company includes Quality
assurance, Stores, Production, Purchase,
Maintenance, Engineering, Packaging and
dispatch, Personnel and training, Finance, legal
and administrative security
New concept like 5S is also being implemented in
Britannia Industries
Limited. The Company is perusing for ISO 14001
certificate and it is ISO 22000 certified.
There are four plants in operation in the Company
at this branch. First plant is for Marie Gold which
has a flexi line for Good day also. Second plant is
for Good Day, Third one is for 50:50 variants,
pepper chakkar and Maska Chaska. Forth and last
plant is for Bourbon which has a flexi line for
Orange cream also.

COMPANY EVENTS
1) Bhumi poojan of Britannia industries limited
was on 20 th may 2004.
2) Machinery was set up on 23 rd march 2005.

3) Production trial was taken on 23 rd march 2005

itself.
4) Actual production was started on 1 st April
2005.
5) First dispatch of finished goods was done on 20
th April 2005
.
6) Biggest plant of the company is plant number
two.
7) The company is set up in an area of
approximately 20 acres
8) Minimum production of the company is 170
tons per day.
9) Maximum production is 205 tons per day.
10) Control of management is through Board of
Directors.

11) It is a public limited company

.
12) The auditors of the company are Lovelock
& Lewe
13) The bankers of the company are
State Bank of India.
Standard Chartered Bank
.
ABN Aroma Bank.
City Bank.
The Hong Kong & Shanghai Banking
Corporation limited.
Bank of America.
HDFC Bank limited.

 ICICI Bank limited

Indian Bank
Deutsche Bank

DEPARTMENTS OF THE
COMPANY
HUMAN RESOURSE
FINANCE
PURCHASE
PRODUCTION
MAINTANANCE

 QUALITY ASSURANCE
OBJECTIVES OF THE UNIT
Working collaborators with the business
partners.
Quality products to customers.
Continuous training and retraining of the
employees to create culture that value
quality and food safety as a core pillar of the
business.
Investing in appropriate technology.
To control the wastage and save time and
efforts.
To work under the principals of Kiazen,
Hassap and 5 S

NUMBER OF PLANTS AND

PRODUCTION
AT THE PANTNAGAR BRANCH
Not all the brands of Britannia are produced in
this branch only some brands
of biscuits are produced at this branch.
Production of biscuits in Britannia Pantnagar
branch is divided in to four
Plants.
1) Plant I
a) Good Day Butter
b) Good Day Pista Badam
2) Plant II
a) Good Day Cashew
3) Plant III

a) fifty- fifty (50-50)

i) 50-50
ii) 50-50 Maska Chaska
iii) 50-50 Pepper Chakkar
4) Plant IV
a) Choclate treat Bourbon
b) Orange treat
STORAGE AND USAGE OF RAW MATERIAL
There are many types of raw materials which are
used in Britannia for the
production of different types of biscuits. Some of
them are wheat flour, sugar,
butter, skimmed milk powder, cashew, salt,
different types of fats which includes
different oils, sodium bi carbonate, ammonium bi
carbonate etc
Some of the materials which are used in Britannia
industries need cold
storage while some needs normal storage. So on
the basis of the need of different
raw materials they are stored in different storage
places. The materials which are

stored in cold storage are at the temperature of 5

degree Celsius while the materials
which need normal storage are stored at the
normal temperature. There
classification of some of the raw materials is as
follows:
Normal storage raw material
Sugar
Ammonia
Palm oil
Salt
Skimmed milk powder
Wheat flour
Cold storage raw material
Butter
Condensed milk
Essences
Cashew

5s of Britannia industries limited

I SEIRI (Organisation)
II SEITON (Neatness)
III SEISO (Cleanliness)
IV SEIKETSO (Standardizations)
V SHITSUKE (Discipline)
SEIRI (Organisation)
It is sorting between waited and unwanted things
in a selected area, region or
domain.
SEITON (Neatness)

It means a place for everything and everything in

its place.
SEISO (Cleanliness)
It deals with the job of thoroughly cleaning the
workplace.
SEIKETSO (Standardization)
It means standardization which is needed to
maintain SEIRI, SEITON and SEISO.
It leads to use of visual management to avoid
mistakes.
SHITSUKE (Discipline)
It means discipline which is called for strict
adherence to a system form our
present unsystematic way.

QUALITY AND FOOD SAFETY POLICY OF

THE COMPANY
The purpose of this policy is to ensure that we win
through quality in the market
place. This means that we must do every things
to ensure consistent delivery of
quality products to the customers every time.
Our commitment to quality and food safety will be
reflected in every action and
is non negligible. That means:
All ingredients used in our factories always
meet specified quality

standards.
All factories and depots maintain high standard
of hygiene which ensures
that our products are healthy and safe for
consumption.
Our manufacturing products always ensure
delivery of products consistent
with product and pack specifications which are
free from contamination.

Chapter
3

SUPPLY CHAIN MANAGEMENT

GENERAL:The concept of Supply Chain Management is based
on two core ideas. The first is that practically every
product that reaches an end user represents the
cumulative effort of multiple organizations. These
organizations are referred to collectively as the
supply chain.

The second idea is that while supply chains have

existed for a long time, most organizations have
only paid attention to what was happening within
their four walls. Few businesses understood,
much less managed, the entire chain of activities
that ultimately delivered products to the final
customer. The result was disjointed and often
ineffective supply chains.
Supply chain management, then, is the active
management of supply chain activities to maximize
customer value and achieve a sustainable
competitive advantage. It represents a conscious
effort by the supply chain firms to develop and run
supply chains in the most effective & efficient ways
possible. Supply chain activities cover everything
from product development, sourcing, production,
and logistics, as well as the information systems
needed to coordinate these activities.
The organizations that make up the supply chain
are linked together through physical flows and
information flows. Physical flows involve the
transformation, movement, and storage of goods
and materials. They are the most visible piece of
the supply chain. But just as important are
information flows. Information flows allow the
various supply chain partners to coordinate their
long-term plans, and to control the day-to-day flow
of goods and material up and down the supply
chain.

Your Company has been focusing on developing a

competitive edge in manufacturing by deploying
Cost Efficiency and Operational Excellence
programs across the value chain and is also
working on scaling up some of the existing
manufacturing units. Your Company increased
operating control on capacity with the successful
completion of Jhagadia Factory expansion and
acquisition of a Contract Manufacturing unit in
Chennai. Two more Greenfield factories are under
construction in Perundurai, Tamil Nadu and Bidadi,
near Bangalore which are scheduled to be
commissioned in Financial Year 2015-16. Your
Company has successfully installed and
commissioned a state-of-the-art biscuit line in
Gwalior Factory and has rolled out NutriChoice
Heavens and Good Day Chunkies (Innovation
products) in the market. All these have helped in
creating the right capacity and capability with
superior technology to meet the growing demand
and rising consumer expectation. The APO Planning
tool has been further consolidated with focus on
integrating the challenging demand-supply
scenario with optimum inventory management to
better serve the market. In the area of logistics the
focus was on execution effectiveness, reduction in
the distance travelled for products and optimum
space utilization for higher throughput.

PROCESS IN BRITANNIA

1.

Model based on third party manufacturers

2.

ERP Software:

3.

Consistent data sharing

4.

Increase in efficiency.

5.Reduction in operational overheads.

6. Better working capital management.
7. Increased control over inventory management.
8. Realistic production scheduling.
9. Effective cost control system
10. Optimal usage of capacity.
11. Timely purchasing and efficient vendor
management.
12. Minimal effort in following regulatory norms
because of a strong EXCISE system.

13. Make-to-stock
14. Pull driven
15.Balanced Score card
16. SRM: Annual procurement meet

Chapter 4

CONCLUSION
Britannia is one of the biggest biscuit co
m p a n y i n I n d i a . B r i t a n n i a company products
are popular any where in India. Company
having highvolume assets among its competitors.
Company preserves the non-seasonalfood and

makes it available all throughout the year.

Company distributeddividend and company
growth have been increases year by year.
Companyh a s w e l l d e d i c a t e d m a n a g e m e n t t
e a m t o e ffi c i e n t l y l e a d t h e c o m p a n y always
to the next level. So, Britannia to hold their
leadership positions inthe market for long term.
Finally Britannia Company is the best
companywhen compare to other companies.
The Study throws light on the effectiveness and
limitations on training and development
programmes being conducted in Britannia Private
Limited, Rudrapur. Based on the findings, the
management can redesign and develop new
modules in the training and development
programme, so that ultimately the resources of
employees are utilized at optimum level. Training is
an incomparable resource among the resources of
the universe no training no development.
Therefore, training and development is a part of
any organization in the world. The new Millennium
will be one of knowledge and competition.
Whenever a need for knowledge request arises in
the system the organization should take steps to
update the knowledge and skill of the employees
by organizing training programmes. Effective
training and development evaluation strategies are
required to measure change in individual, and

team in respect of organizational efficiency and

effectiveness. Overall, conclusion is very good and
I am totally satisfied by the training period at the
company.

SWOT ANALYSIS
STRENGTH
Goodwill of company
Superior quality and service to provide
maximum benefits to customers.
The family environment in the company.
Continuous growth.
Market share of the company.
Tax benefit to the company.

 Financially a very strong company

Dedicated work force.
Effective well designed and developed
production and marketing network.

WEAKNESSES
Storage capacity of the company is limited.
Raw material is wasted at the time of
unloading.
There is no board of Britannia at the entry gate.
No uniform of the officers and of the workers
too.
Land is not properly utilized.

OPPORTUNITY
There must be more efficient utilization of the
raw material.
There can be minimization of waste.
Lang can be used more efficiently
More and more incentives should be given to
workers to motivate
them which help in increasing the employee
morale.
There can be use of the foreign technologies
for efficient utilization of
raw material so that the production of a biscuit
can be increased.

THREATS

 New entrants in the business

Availability of the other brands.
Taste and preference of customers.
Threats of substitute products.
Rivalry among the competitions.

RECOMMENDATION
After analyzing the steps taken by the company,
there are some suggestions that may help to
manage the inventories of the company more
effectively:
The company can adopt Management
information system for timely availability of
data
The company can diversify itself by
undertaking the manufacturing of various
different
products apart from manufacturing biscuits and
cakes at the Rudrapur Branch.
There should be a proper control on the raw
material wastage. Raw material is wasted
during the possession in hands of the company
and also after that taking it to manufacturing
section.
Storage are of inventory in not high tech and
world class according to the name of the
company.

 Dealing with inventory is slow. With the help of

technology and awareness it can be solved.
The industrial area of the company is not
properly utilized, as some sites remains unused
and some places are so messy.
If we consider the calculation of the raw
material it is found that the level of the some
of
the raw materials is maintained at minimum
level while some of them at maximum, they
should be maintained at average level.
Storage capacity of the company should be
increased. The stock of the company is
properly managed. Area should be arranged in
a proper manner.
There should be CCTV camera installed
everywhere.
Power saving equipment should be used.
Proper utilization of resources are should be
done to increase the production.
There is much more need of plant cleanliness.