B.M.

S COLLEGE OF ENGINEERING
Bull Temple Road, Basavanagudi, Bangalore - 560 019, Karnataka, India

A CONCISE CASE STUDY ON

‘BRITANNIA INDUSTRIES’

Course Name: Project Management And Finance Name: Uttam

Course Code: 22EC5HSPMF USN:1BM21EC190
Course Faculty : Dr. Siddappaji

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Contents : INTRODUCTION
TITLE SLIDE NO
3
ABOUT THE COMPANY MILESTONES 4-5
STRUCTURAL HIERARCHY 6
MANAGERIAL SKILLS 7
ORGANISATION STRUCTURE 8
WORKING ENVIRONMENT 9
UNITS OF THE COMPANY 10
MARKET SHARE 11-12
PRICE OF PRODUCT 13-14
PRODUCT FLOWS 15
SUPPLY CHAIN MANAGEMENT 16
FINANCIAL OVERVIEW 17
SWOT ANALYSIS 18-21
CONCLUSION 22
REFERENCE 23
Introduction:
Britannia Industries Limited is an Indian multinational food products company, which sells biscuits, breads and dairy
products.
 Founded in 1892 and headquarted in Kolkats,It is one of india's oldest exsisting companies.

 The company was establishesd by a group of British businessmen with an investment of just 295 Rupees

 Initially biscuits were manufactured in a small house in central Kolkata.Later the enterprise was acquired by the Gupta
brothers mainly Nalin Gupta, an attorney and operated under the name "V.S.Brothers".

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

 The Mumbai factory was set up in 1924 and Peek Freans UK accuquired a controlling interest in BBCo.The Company
became a subsidary of Peek,Frean & Co.Ltd

 Biscuits were in high demand during World War second which gave a boost to the company's sales as time as much as
95% of the total capacity was booked for the production of Service Biscuit.In 1982,The American company Nabisco
Brands,Inc. accquired the patent of Peek FREANS and became a major foreign shareholder.

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About the Company Milestones:
 In 1954- Development of high quality sliced and wrapped bread in India was pioneered by the
company

 In 1955- It launched bourbon biscuits

 In 1963- Britania cakes hit the market

 In 1979- Name got changed from Britania biscuits co ltd to Britania Industries Ltd

 In 1983- Sales crosses 100 crores

 In 1986- Good day brand was launched

 In 1989- Executive office of the company moved to Banglore

 In 1993- Little hearts and 50:50 find their place on market shelves

 In 1997- Launched dairy products

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Fig(i): Logo of Britannia

Fig(ii): Products of Britannia

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Structural Hierarchy:

Zonal
Branch
Manager

Zonal Sales Zonal Sales Zonal Sales

Manager Manager Manager

Territory Territory Territory

Manger Manger Manger

Distribut Distribut Distribut

Distributor
or or or

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Managerial Skills:
o Leadership

o Communication

o Strategic Thinking

o Problem Solving

o Decision Making

o Team Building And Collobration

o Performance Management

o Adaptability And Flexibity

o Ethical Conduct and Customer Force

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 Organisation Structure:
The company is growing at a steady rate, and is currently profitable. Between 1998 and 2001, the company's sales grew
at a compound annual rate of 16% against the market, and operating profits reached 18%. More recently, the company
has been growing at 27% a year, compared to the industry's growth rate of 20%.At present, 90% of Britannia’s annual
revenue of Rs2,200 crore comes from biscuits.
• Consumers seek foods that complement their lifestyles while offering convenience, variety and economy, over and
above health and nutrition.
• Britannia had the ability to resonate with the changes in consumer needs-needs that have varied significantly across
its 100+ year epoch
• IN 2002 Re-birth - new corporate identity'Eat Healthy, Think Better' lead to new mission:'Make every third Indian a
Britannia consumer’.
Britannia saw the writing on the wall. It’s"Swasth Khao Tan Man Jagao" . (Eat Healthy, Think Better) encapsulating the
core essence of Britannia - healthy, nutritious, optimistic - and combining it with a delightful
product range to offer variety and choice to Consumers.

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Working Environment:
i. Corporate Culture

ii. Innovation

iii. Employee Engagement

iv. Work-Life Balance

v. Learning and Development

vi. Diversity and Inclusion

vii. Safety and Health

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Units Of The Company:

1) Product Units

2) Geographic Units

3) Functional Unit

4) Support Unit

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MARKET SHARE OF MAJOR PLAYERS IN BISCUITS:

 As of 2023, about 80% of Britannia's annual revenue comes from biscuits. Britannia has an estimated market share
of 33% in the organised biscuits market in India.

 According to Britannia Industries 's latest financial reports and stock price the company's current number of shares
outstanding is 0. At the end of 2023 the company had 240,868,296 shares outstanding.

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SALES TERRITORY MANAGEMENT:
• Territory divided by ASM & SO.
• Depends on capacity of TSI in tones (volumes) & experience
• 1 PSM can be given to support the TS

TRAINING AND DEVELOPMENT:

 NurturingTalent

 Campus

 Management Training

 The Program

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Price Of Product:
 It is the cost of the product that the customer pay to in terms
of the monetary value.
 The Britannia company mainly focus on the middle class and
lower middle class families.
 Britannia has worked a lot on fixing the price of it’s
products. Therefore the Britannia products will range from 5
Rs. to 50 Rs. Only. Thus, Britannia products are much better
in quality and are good in price as well.

Consists Of Three Segments:

I. Lower Segment
II. Middle Segment
III. Premium Segment

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Financial risk management:
The Group’s financial risk management is an integral part of how to plan and execute its business strategies. The Group’s
management risk policy is set by the Board. The Group’s activities expose it to a variety of financial risks: credit risk,
liquidity risk and market risk. The Group’s primary focus is to foresee the unpredictability of financial markets and seek to
minimize potential adverse effects on its financial performance.
Credit risk:
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Group’s receivables from customers and loans given. Credit risk
arises from cash held with banks and financial institutions, as well as credit exposure to clients, including outstanding
accounts receivables. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The
objective of managing counterparty credit risk is to prevent losses in financial assets. The Group assesses the credit quality
of the counterparties, taking into account their financial position, past experience and other factors. Based on our
assessement and current estimates the carrying value and the provisions made as at 31 March 2021 is considered adequate.

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Product Flow:

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Supply Chain Management:
The search for young, enthusiastic talent is always on at Britannia. The work culture at Britannia is characterized by strong
performance focus coupled with resultorientation.
NurturingTalent
An innovative company like Britannia is always on the lookout for innovative, young minds. The Management philosophy
encourages nurturing of talent through grooming of bright and young entry-level managers. The organisational culture
provides a perfect blend of fun and learning that helps in the overall development of talented individuals recruited into the
systems
Today, with a huge variety of professional institutions spread across the country, there is a broader canvas to choose from.
The main sources of recruitment of Management Trainees are:
 Business Schools (MBA)
 Engineering Institutes
 Food Technology Institutes
 ICAI/ICWAI/ICSI/ICFAI and other such institutes offering professional courses

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Financial Overier:
RATIO ANALYSIS: It can be defined as the method of defining relationships among various financial statement items. It
helps to identify trends over time for one company or to compare two or more companies at one point in time. The
historical trends of these ratios can be used to infer a company’s financial condition and its attractiveness for potential
investors.
LIQUIDITY RATIOS:Measure the ability of a company to repay its short-term debts and meet unexpected cash needs.
i) Current Ratio :It finds out the ability of the company to pay its short term loans. i.e, Currents assets should be twice that
of current liabilities. is computed by division of current assets by current liabilities. It is denoted by:
Current Ratio= Current assests / Current Liabilities
ii)Quick ratio: It may be defined as a relationship between quick/ liquid assets and current liabilities. This ratio measures
the capacity of the firm to pay its current liabilities immediately.
Liquid Ratio = CA-Stock-Prepaid expenses = Liquid assets (Cash equivalents + marketable securities + accounts
receivables) divided by current liabilities
PROFITABILITY RATIOS:Ratios that focus on how well a firm is performing are termed as such. Profit margins measure
performance with relation to sales. These are computed in the form of percentage .They are of two orientations :
Gross profit ratio:=(GP x100)/ NET SALES
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SWOT ANALYSIS:
 STRENGTHS
1.Around 120 years in the industry.

2.India’s most trusted brand with strong brand recall.

3. Wide range of bakery products like biscuits, rusks, cakes and dairy products like milk, butter, cheese, etc.

4.Major share in biscuits industry.

5. Innovative products for health conscious people like oats and porridge, Nutri Choice biscuits for diabetes patients, Vita
Marie Gold, etc.
6.Fulfill one of our Basic Requirement among Air , Water , Food, Shelter

7.Widely accepted in all Generations

8.Easily available in various forms

9.Provide good Instant Remedy for hunger in the form of readymade food
10.Preserves the non seasonal food and makes it available all throughout the year
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 WEAKNESS

1.Decreases nutritional value

2.Increases the cost of food product

3.Industry and technology requires high investment

4.Regular usage of processed food can cause alteration in health

5.Lower market share in dairy segment.

6.Heavy expenditure on advertising and marketing.

7.Similar products produced by many companies means high Brand Switching.

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 OPPORTUNITIES

1.Increase in purchasing power of people in India.

2.Increase its share in the dairy industry.

3.Product line extension.

4.Expansion in other countries.

5.Increase economy of India

6.Generate employment opportunity

7.Good quality of Goods

8.Provide competition to foreign companies

9.Improve living standard

10.Provide goods to nation at cheaper rate

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 THREATS

1.Lower price offering competitors

2.Local dairies and bakeries

3.Inflation can cause fall in sales and revenue

4.Rise in cost of raw materials

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CONCLUSION:

 Studied brief idea about sales and distribution system of Britannia.

 Analysed how Britannia industry booming at very fast growth rate.

 Got idea about its competitor in the market.

 Studied how Britannia increasing it market share very fastly.

 Understood the concept of marketing,trading and business management

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REFERENCES:

 https://www.britannia.co.in/

 https://en.wikipedia.org/wiki/Britannia_Industries

 https://www.moneycontrol.com/india/stockpricequote/food-
processing/britanniaindustries/BI

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Thank You