CHAPTER – 1

INTRODUCTION

1.1 INTRODUCTION 1: PROVIDE A BRIEF OVERVIEW OF

THE COMPANY,
1.2 INCEPTION OF THE COMPANY,
1.3 NATURE OF THE BUSINESS CARRIED,
1.4 MISSION, VISION, VALUES, GOALS AND OBJECTIVES
AND QUALITY POLICY,
1.5 PRODUCT/SERVICES PROFILE,
1.6 AREA OF OPERATION GLOBAL/NATIONAL/REGIONAL,
1.7 OWNERSHIP PATTERN,
1.8 COMPETITORS INFORMATION,
1.9 INFRASTRUCTURAL FACILITIES,
1.10ACHIEVEMENT AWARDS,
1.11Strategic perspective plan (if any).
1.1 INTRODUCTION: PROVIDE A BRIEF OVERVIEW OF THE
COMPANY.

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

Formerly Britannia Biscuit limited

Type Public

Traded as BSE: 500825

NSE: BRITANNIA
NSE NIFTY 50 Constiuent

ISIN INE216A01030

Industry Food processing

Founded 1892; 129 years ago in Calcutta

1918; 103 years ago as Britannia Biscuit
Company Limited

Headquarters kolkata, West Bengal,

India

Area served Worldwide

Key people Nulsi Wadia ( Chairman )

Varun Berry (Managing Director )
Products Bakery
Products including biscuits, bread, cakes and rusk
Dairy
Products including milk, butter, cheese, ghee and dahi
 Revenue ₹11,878.95 crore (US$1.7 billion) (2020)
Operating ₹1,860.87 crore (US$260 million) (2020)
income
Net income ₹1,402.63 crore (US$200 million) (2020)
Total assets ₹7,253.34 crore (US$1.0 billion) (2020)
Number of 4,480 (as on 31 March 2019)
employees
Parent Wadia Group
Website www.britannia.co.in

1.2 INCEPTION OF THE COMPANY

Britannia Industries Limited was founded in 1892 by a group of British businessmen in Kolkata,
India:

Inception
The company was started with an initial investment of ₹295. The biscuits were initially
manufactured in a small house in central Kolkata.

Name change
The company was originally called The Britannia Biscuit Company Limited (BBCo). The name
was changed to Britannia Industries Limited in 1979.

Ownership
The company is currently owned by the Wadia group, headed by Nusli Wadia.

Notable milestones
Some notable milestones in the company's history include:

1918: C.H. Holmes, an English businessman based in Kolkata, joined as a partner and the
company was incorporated as a public company.

1921: Britannia became the first company in its area to use special ovens from abroad.
1924: The Mumbai factory was set up.
1982: The American company Nabisco acquired the parent of Peek Freans and became a major
foreign shareholder.
Britannia Industries is a leading food products company in India that operates in 0ver 80
countries. Their products include biscuits, bakery items, and dairy.

1.3 NATURE OF THE BUSINESS CARRIED

Britannia Industries Limited is a Indian food company that operates leading in the following
business segments:

1. Biscuits

- Manufactures and markets a wide range of biscuits, including Good Day, Marie, Tiger, and
NutriChoice.

2. Bread

- Produces and distributes a variety of bread products, including white bread, whole wheat
bread, and health bread.

3. Cakes

- Offers a range of cake products, including Britannia Cakes and Britannia Fruit Cakes.

4. Dairy

- Manufactures and markets dairy products, such as milk, cheese, yogurt, and butter.

5. Snacks
- Produces and distributes a variety of snack products, including Britannia Snack Packs and
Britannia Munchies.

6. Exports

- Exports its products to over 60 countries worldwide, including the Middle East, Africa, Asia,
and Europe.

Britannia's business operations involve:

1. Manufacturing: Britannia operates several manufacturing facilities across India, producing a

wide range of food products.
2. Marketing and Sales: The company has a strong marketing and sales network, with products
available in nearly 5 million retail outlets across India.
3. Distribution: Britannia has a wide distribution network, ensuring its products reach
consumers across the country.
4. Research and Development: The company invests in research and development to innovate
and improve its products.

Overall, Britannia Industries Limited is a diversified food company with a strong presence in the
Indian market and a growing international presence.
1.4 MISSION, VISION, VALUES, GOALS AND OBJECTIVE AND QUALITY
POLICY.

MISSION:
❖ To dominate the food and beverage market in India through a profitable range of
‘Tasty Yet Healthy ‘ products by making every
Indian a Britannia consumer.
❖ To be one of the best biscuit company.
❖ Development of production in partnership with our customers to their specification.
❖ Flexibility & capacity to meet small & large production run

VISION:
❖ Think of a purpose that spirals Forth To create innovations from within this visionary
Zeal; Built on Trust and Knowledge, Has empowered the wadia Group in various
business Enterprises For more Than A country. It now promises much more in the new
economy…
❖ To dominate the food and beverage market in India with a distinctive range of ‘Tasty
Yet Healthy ‘ Britannia brands.
❖ Every third person, in India, should be a Britannia customer.
VALUES:
❖ Our core emphasis across portfolios is on healthy, fresh and delicious food.
❖ We realise our responsibility to continue delivering fresh, nutritious and fun
products.

COMPANY OBJECTIVE:
Short- term objective :
❖ To improve image to sharesholdres.
❖ To improve internal processes and controls.
❖ To increase NSV and ROI.
Long - term objective:
❖ To be the lowest – cost producer in the market.
❖ To become largest volume player in the bakery industry.

Quality policy:

❖ Reduction in customer complaints.

❖ To start documentation of market returns dealer wise.
❖ To empower the workman on individual work area to ensure that only quality
product are passed on the next page of production.
❖ Continuous training for the development of human resources.
❖ To minimize the accident level. As part of the growth strategy, the company always
try to build on the values of brand “Britannia” by aggressively pursuing tasty yet
healthy offering of mass appeal and also launching a host of affordable products,
which would help rejuvenate the mother brand and drive category consumption.

GOALS:
Once the company developed their vision, mission, and core values, they can then develop the
goals and objectives needed to achieve your vision.
Goals are general statements of what Britannia wants to achieve, So they need to be integrated with
their vision. They also need to be integrated with their mission of how they are going to achieve their
vision.

❖ To improve profitability.
❖ To increase efficiency.
❖ To capture a bigger market share.
❖ To provide better customer service.
❖ To improve employee training.
❖ To reduce carbon emission.

1.5 PRODUCT / SEVICES PROFILE

Britannia Industries Limited (BIL) is an Indian food company that manufactures and sells a
variety of products, including biscuits, bread, cakes, rusk, and dairy products:

Biscuits

Britannia's biscuits are sold under brands such as MarieGold, Tiger, NutriChoice, Good Day, 50-
50, Treat, Pure Magic, Milk Bikis, Bourbon, Nice Time, and Little Hearts.
Dairy products

Britannia's dairy products include cheese, Winkin' Cow, Come Alive Paneer, Come Alive Dahi,
ghee, and Dairy Whitener.
Bread
Britannia's breads include gourmet breads, white bread, and wheat flour breads.

Cakes

Britannia's cakes include Gobbles, Fudge, Muffils, Nuts and Raisin Romance Cake, Roll Yo!, and
Tiffin Fun.
Snacks
Britannia's snacking products include Treat Croissant, Treat Creme Wafers, and Time Pass
Salted Snacks.
Nutrition Bars: Be You Protein Bar, Be You Nutrition Bar, and more

Britannia's products are sold in Asia-Pacific, the Middle East, Europe, Africa, and the Americas.
The company has plants in Kolkata, Delhi, Chennai, Mumbai, and Uttarakhand.
Product Features

1. Quality: High-quality ingredients and manufacturing processes

2. Taste: Wide range of flavors and textures
3. Innovation: Continuous innovation and introduction of new products
4. Convenience: Easy-to-consume packaging and formats
5. Health: Offers healthier options, such as whole wheat bread and nutrition bars
Target Market

1. Demographics: Middle-class consumers, families, and individuals

2. Psychographics: Health-conscious, busy lifestyles, and seeking convenience
3. Geographics: India, Middle East, Africa, Asia, and Europe

Unique Selling Proposition (USP)

1. Quality and Taste: Britannia's products are known for their high quality and taste.
2. Innovation: The company continuously innovates and introduces new products to meet
changing consumer preferences.
3. Convenience: Britannia's products are designed for convenience, with easy-to-consume
packaging and formats.

1.6 AREA OF OPERATION GLOBAL / NATIONAL / REGIONAL

Britannia Industries Limited operates in the following areas:

- Global: Britannia's products are sold in over 60 countries worldwide, including Asia-Pacific,
Middle East, Europe, Africa, and the Americas.

- National: Britannia is a leading food company in India, with a strong presence in the Indian
market.

- Regional: Britannia has a significant presence in various regions, including:

1. Asia-Pacific: India, Bangladesh, Nepal, Sri Lanka, and more.

2. Middle East: UAE, Saudi Arabia, Kuwait, Oman, and more.
3. Europe: UK, France, Germany, Italy, and more.
4. Africa: South Africa, Nigeria, Kenya, and more.
5. Americas: USA, Canada, Brazil, and more.

1.7 OWNERSHIP PATTERN

Here is the latest shareholding Pattern of BRITANNIA. For more details, see
the BRITANNIA financial fact sheet and BRITANNIA share price.
Export | Annual Financial Info | Result Scoreboard

BRITANNIA SHAREHOLDING PATTERN

3 3 3 3 3 3 3 3
No. of Mths
Dec- Mar- Jun- Sep- Dec- Mar- Jun- Sep-
Qtr. Ending
22 23 23 23 23 24 24 24
Indian Promoters % 0.01 0.01 0.01 0.01 0.01 0.01 0.01 0.01
Foreign Promoters % 50.54 50.54 50.54 50.54 50.54 50.54 50.54 50.54
Total Promoters % 50.55 50.55 50.55 50.55 50.55 50.55 50.55 50.55
Mutual Funds % 5.74 5.26 4.79 5.70 5.43 6.50 7.09 7.24
Financial
institution/Banks/Insur % 2.21 1.88 1.67 2.46 3.49 3.33 3.87 3.74
ance
Government % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
FII % 18.46 19.44 21.29 19.66 18.99 18.23 17.41 17.91
Other % 7.13 7.08 6.00 5.69 5.92 5.81 5.73 5.25
Total Institution % 33.54 33.66 33.75 33.51 33.83 33.87 34.10 34.14
Bodies Corporate % 0.43 0.38 0.37 0.36 0.34 0.35 0.36 0.40
Individuals % 13.23 13.09 13.02 13.27 12.77 12.77 12.52 12.41
NRIs/OCBs % 1.35 1.45 1.45 1.44 1.43 1.43 1.46 1.46
ADR/GDR % 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Others % 0.90 0.87 0.86 0.88 1.08 1.03 1.02 1.04
Total Non-
% 15.91 15.79 15.70 15.95 15.62 15.58 15.36 15.31
Institution
Total Public % 49.00 49.00 49.00 49.00 49.00 49.00 49.00 49.00
100.0 100.0 100.0 100.0 100.0 100.0 100.0 100.0
Grand Total %
0 0 0 0 0 0 0 0
Pledged Promoter
% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Holding

More Consumer Products Company Shareholding Pattern: ITC NESTLE VARUN BEVERAGES UNITED
SPIRITS RESTAURANT BRANDS ASIA
BRITANNIA Shareholding Trend

For the quarter ended September 2024, total promoters' stake in BRITANNIA remained
unchanged at 50.55%.

Meanwhile, mutual funds increased their stake by 0.15%. As of September 2024, mutual
funds held 7.24% stake in BRITANNIA.

Overall, institutional holding in BRITANNIA increased by 0.04% and stood at 34.14% as

of September 2024.

Here's a table showing the largest shareholders in BRITANNIA.

Top Shareholders of BRITANNIA

Total Shares Shareholding Quarter
Shareholder's name
Held (%) Ending

ASSOCIATED BISCUITS
107,809,000 44.76 Sep-24
INTERNATIONAL LIMITED

LICI ULIP-GROWTH FUND 7,927,978 3.29 Sep-24

LIFE INSURANCE CORPORATION OF

5,805,401 2.41 Sep-24
INDIA

SBI CONSUMPTION OPPORTUNITIES

5,376,588 2.23 Sep-24
FUND

ICICI PRUDENTIAL MNC FUND 2,975,354 1.24 Sep-24

QUANT MUTUAL FUND-QUANT ELSS

2,850,970 1.18 Sep-24
TAX SAVER FUND

SPARGO ENTERPRISES PTE LTD 2,785,020 1.16 Sep-24

VALLETORT ENTERPRISES PTE LTD 2,785,020 1.16 Sep-24

NACUPA ENTERPRISES PTE LTD 2,785,020 1.16 Sep-24

DOWBIGGIN ENTERPRISES PTE LTD 2,785,020 1.16 Sep-24

Be it promoters, mutual funds, or foreign institutional investors (FIIs), there’s a lot of

curiosity when these big names buy or sell stake.

You can now track all this information using Equitymaster's Indian stock screener.
Here are some of the popular screens:
▪ Stocks recently bought by mutual funds
▪ Stocks recently bought by foreign investors
▪ Promoters increasing stake
Coming to BRITANNIA stock performance...

Over the last one year, BRITANNIA share price has moved down from Rs 5,004.5 to Rs
4,800.0, registering a Loss of Rs 204.5 or around 4.09%.

1.8 COMPETITORS INFORMATON

Top Britannia Competitors & Similar

Companies
Britannia Industries Limited is a food manufacturing company in India, headquartered at
Kolkata. It was launched in 1892, primarily for the officers during British Raj to provide
them with quality tea time biscuits. Over the years, Britannia has changed hands from
one group to another.

In any business, there are several companies & brands which compete with each other
by offering similar products & services.

For any company to thrive, it is not only important for them to improve their own
products, but to also look at what their competitor is offering.

top 11 competitors of Britannia.

1. HUL (Hindustan Unilever):
Hindustan Unilever is an Indian subsidiary Dutch company Unilever and is India’s
biggest fast moving consumer goods company. The HUL company is based in Mumbai,
Maharashtra. HUL has the widest outreach to the customers through its 6 million+
outlets across the country.
2. ITC:
ITC or Imperial Tobacco Company of India limited was established in 1910. It changed
its name first in 1970 and again in 1974 and was finally called I.T.C Limited.
Headquartered in Kolkata, West Bengal, ITC is one of India’s most valuable
conglomerate with presence in all the three sectors of the economy.
3. Dabur:
Dabur is India’s largest Ayurvedic medicine and related products manufacturer. It was
founded in 1884 by SK Burman and it is headquartered in India. The annual revenue of
the company is more than US $1 billion.
4. Patanjali:
Patanjali Ayurved is one the fastest growing FMCG companies in India, which focuses
on food, healthcare and medicinal products. Patanjali is founded by Indian yoga guru
Baba Ramdev and Acharya Balkrishna in 2006 with the aim of promoting ayurvedic
products amongst consumers. With annual revenues exceeding INR 10,000 crore,
Patanjali had become one of the largest consumer goods company in India.
Read more about Britannia
5. Parle:
Parle is primarily divided into 3 product categories: Biscuits, Confectionery, Snacks
which are available mainly in India. From the name Parle, every one of us is reminded
of just one thing: the evergreen biscuit, Parle G. However, this Indian company deals
with products other than biscuits.
6. Nestle:
Nestle – largest food company in terms of revenue is based out of Vaud, Switzerland. It
has a wide range of product line such baby foods, coffee, tea, dairy products, Maggi
and many more. It has presence in 194 countries having approximate 450 factories with
a head count of 339,000 people.
7. Pepsi:
Pepsi Co, being a huge company has a lot of brands under its hat. There are various
products of Pepsi Co, like Pepsi, Mountain Dew, Lays, Tropicana beverages, 7Ups,
Cheetos, Lipton Tea, Aquafina, etc. Pepsi are mainly targeting the food and beverages
market.
8. Marico:
One out of every ten coconuts grown in India is used by Marico – the statement in itself
surmises the strength of Marico Limited. Marico is an Indian FMCG company and it was
setup in 1991 in Mumbai by Harsh Mariwala. Marico deals in production of personal
care goods, oils and male grooming products too.
9. Procter and Gamble (P&G):
P&G or Procter and Gamble, is a fortune 500 fast moving consumer goods multinational
corporation headquartered in Ohio, USA. With its acquisition of Gillet in 2005, P&G
became the largest consumer product company in the world. It is ranked in most
admired companies of the world.
10. Coca Cola:
Coca Cola is a carbonated soft drink produced by Coca Cola company. It has a diverse
product portfolio in the beverage industry. Coca Cola was founded in May,1886.
11. Amul:
Amul is one of the very old Indian companies, which has made its mark since 1946.
Now GCMMF has become the largest exporter of dairy products all across the world.
Amul was built up in 1950 with the revolution of dairy agriculturists who were inspired by
the independence of India.

1.9 INFRASTRUCTURAL FACILITIES

Britannia Industries Limited has a number of infrastructure facilities, including:

Manufacturing plants: Britannia has modern, efficient manufacturing plants that use
advanced technology to produce a variety of dairy and bakery products.

Research and Development (R&D) Center: Britannia has an R&D center that helps
with innovation, faster commercialization, and improving the shelf life of products.

Depots: Britannia has eight of its own depots.

Regional offices: Britannia has six regional offices in Delhi, Kolkata, Chennai, Mumbai,
Bangalore Executive Office, and Bangalore Old Office.

Contract packers: Britannia has 48 contract packers.

Suppliers and distributors: Britannia has over 1400 suppliers and over 4000
distributors.

Britannia also has a Corporate Social Responsibility (CSR) policy that includes:

Eradicating hunger, poverty, and malnutrition

Promoting health care and sanitation

Contributing to the Swach Bharat Kosh set-up by the Central Government

1.10 ACHIEVEMENTS AWARDS

Britannia Industries has won many awards and accolades, including:

2024 Global CSR & ESG Awards
Britannia was named the "Best Company to Work for the Year" and its sustainability initiatives
were recognized as the "Best 3 Sustainability Initiatives of the Year".
2024 Golden Peacock Award for Sustainability
The Institute of Directors (IOD), India, recognized Britannia in the FMCG sector.
2023 SKOCH Awards
Britannia won gold for the "Sustainability – Holistic Approach to Business Growth" and
"Nutrition Foundation Initiative to Reduce Malnutrition - A Holistic Approach" projects.
2023 Indian Marketing Awards (IMA)
Britannia won the "Marketing Team of the Year" award.
2023 Shark Awards
Britannia won gold for "Regional Campaign" and "Product Designing & Packaging".
2021 Global Sustainability Leadership Awards
Britannia won this award from the World Sustainability Congress.
2021 Impact Digital Influencers' Awards
Britannia's Cheese Star Chef campaign won silver for "Most Impactful Influencer Marketing
Campaign".
2019-20 Economic Times Brand Equity
The Good Day biscuit brand was listed as one of the "Most Trusted Brands of Indians".
2014 Reader's Digest Trusted Brand Survey
Britannia was voted as a "Trusted Brand in India" in the food and beverage category.
Britannia has been honored with the 'Golden Peacock Award for Sustainability - 2024' by the
Institute of Directors (IOD), India, in the FMCG sector at the national level.

1.12 STRATEGIC PERPECTIVE PLAN

Britannia Industries has a number of strategic plans to grow its business, includ:

Growing the biscuit portfolio

Britannia plans to expand its market share by innovating and increasing distribution,
especially in Hindi-speaking areas.

Growing adjacencies
Britannia plans to invest in dairy and bakery products by setting up facilities, increasing
marketing, and innovating.

Improving supply chain and operations

Britannia plans to improve its supply chain management and operating efficiencies to
improve margins.

Research and development

Britannia plans to invest in research and development to create new products, improve
its bottom line, and increase shareholder value.

Expanding into e-commerce and multi-tier channels

Britannia plans to invest in growing its e-commerce and multi-tier channels.

Increasing cheese business

Britannia plans to more than double its cheese business in the next three years
.
Focusing on sustainability
Britannia plans to continue to innovate and grow while staying true to its legacy and being
sustainable.

Surprising and delighting consumers

Britannia plans to capture attention with unexpected moments through campaigns,
products, and narratives
.
Britannia's vision is to be a responsible total foods company that serves exciting products
throughout the day.
 CHAPTER – 2

FINANCIAL AND MARKET ANALYSIS

2.1FINANCIAL ANALYSIS:

2.1.1 ANALYSE THE COMPANY'S FINANCIAL STATEMENTS (STATEMENT OF PROFIT

OR LOSS, STATEMENT OF FINANCIAL POSITION,STATEMENT OF CASH FLOW)
2.1.2 ASSESS KEY FINANCIAL RATIOS (LIQUIDITY, PROFITABILITY & TURNOVER) TO
EVALUATE THE COMPANY'S FINANCIAL HEALTH.

2.2 MARKET ANALYSIS:

2.2.1 EVALUATE THE COMPANY'S POSITION WITHIN ITS INDUSTRY,

2.2.2 EXAMINE MARKET TRENDS, COMPETITION AND POTENTIAL GROWTH
2.1.1 ANALYSE THE COMPANY'S FINANCIAL STATEMENTS (STATEMENT OF
PROFIT OR LOSS, STATEMENT OF FINANCIAL POSITION,STATEMENT OF CASH
FLOW)

BRITANNIA Income Statement Analysis

▪ Operating income during the year rose 2.9% on a year-on-year (YoY) basis.
▪ The company's operating profit decreased by 0.2% YoY during the fiscal. Operating profit
margins witnessed a fall and stood at 18.9% in FY24 as against 19.4% in FY23.
▪ Depreciation charges increased by 33.0% and finance costs decreased by 3.0% YoY,
respectively.
▪ Other income declined by 17.0% YoY.
▪ Net profit for the year declined by 7.9% YoY.
▪ Net profit margins during the year declined from 14.2% in FY23 to 12.7% in FY24.

BRITANNIA Income Statement 2023-24

No. of Mths Year Ending 12 Mar-23* 12 Mar-24* % Change

Net Sales Rs m 163,006 167,693 2.9%

Other income Rs m 2,581 2,142 -17.0%

Total Revenues Rs m 165,586 169,835 2.6%

Gross profit Rs m 31,697 31,638 -0.2%

Depreciation Rs m 2,259 3,005 33.0%

Interest Rs m 1,691 1,640 -3.0%

Profit before tax Rs m 30,328 29,135 -3.9%

Tax Rs m 7,165 7,793 8.8%

Profit after tax Rs m 23,163 21,342 -7.9%

Gross profit margin % 19.4 18.9

Effective tax rate % 23.6 26.7

Net profit margin % 14.2 12.7

BRITANNIA Balance Sheet Analysis

▪ The company's current liabilities during FY24 down at Rs 41 billion as compared to Rs

41 billion in FY23, thereby witnessing an decrease of -1.2%.
▪ Long-term debt down at Rs 9 billion as compared to Rs 16 billion during FY23, a fall of
41.7%.
▪ Current assets rose 3% and stood at Rs 48 billion, while fixed assets fell 8% and stood at
Rs 42 billion in FY24.
▪ Overall, the total assets and liabilities for FY24 stood at Rs 90 billion as against Rs 93
billion during FY23, thereby witnessing a fall of 3%.

BRITANNIA Balance Sheet as on March 2024

No. of Mths Year Ending 12 Mar-23* 12 Mar-24* % Change

Networth Rs m 35,343 39,415 11.5

Current Liabilities Rs m 41,344 40,844 -1.2

Long-term Debt Rs m 15,518 9,047 -41.7

Total Liabilities Rs m 92,955 90,297 -2.9

Current assets Rs m 47,139 48,423 2.7

Fixed Assets Rs m 45,492 41,810 -8.1

Total Assets Rs m 92,955 90,297 -2.9

BRITANNIA Cash Flow Statement Analysis

▪ BRITANNIA's cash flow from operating activities (CFO) during FY24 stood at Rs 26
billion, an improvement of 1.9% on a YoY basis.
▪ Cash flow from investing activities (CFI) during FY24 stood at Rs 5 billion on a YoY
basis.
▪ Cash flow from financial activities (CFF) during FY24 stood at Rs -28 billion on a YoY
basis.
▪ Overall, net cash flows for the company during FY24 stood at Rs 2 billion from the Rs -92
million net cash flows seen during FY23.

BRITANNIA Cash Flow Statement 2023-24

No. of months 12 12
Particulars % Change
Year Ending Mar-23 Mar-24

Cash Flow from Operating Activities Rs m 25,262 25,730 1.9%

Cash Flow from Investing Activities Rs m -15,171 4,755 -

Cash Flow from Financing Activities Rs m -10,284 -28,305 -

Net Cash Flow Rs m -92 2,193 -

2.1.2 ASSESS KEY FINANCIAL RATIOS (LIQUIDITY, PROFITABILITY & TURNOVER)

TO EVALUATE THE COMPANY'S FINANCIAL HEALTH.
KEY FINANCIAL RATIOS OF MAR 24 MAR 23 MAR 22 MAR 21 MAR 20
BRITANNIA INDUSTRIES (in
Rs. Cr.)

PER SHARE RATIOS

Basic EPS (Rs.) 86.44 88.82 66.56 73.12 61.75

Diluted EPS (Rs.) 86.44 88.82 66.56 73.09 61.73

Cash EPS (Rs.) 97.69 96.90 73.61 79.98 68.02

Book Value 146.43 132.05 99.73 137.80 177.74

[ExclRevalReserve]/Share
(Rs.)

Book Value 146.43 132.05 99.73 137.80 177.74

[InclRevalReserve]/Share
(Rs.)

Dividend / Share(Rs.) 73.50 72.00 56.50 157.50 35.00

Revenue from 671.90 648.34 555.07 513.86 456.83

Operations/Share (Rs.)

PBDIT/Share (Rs.) 136.19 122.97 101.64 109.76 87.57

PBIT/Share (Rs.) 124.94 114.87 94.59 102.83 81.27

PBT/Share (Rs.) 118.53 117.89 89.05 98.77 79.35

Net Profit/Share (Rs.) 86.43 88.80 66.55 73.06 61.72

PROFITABILITY RATIOS
PBDIT Margin (%) 20.27 18.96 18.31 21.35 19.16

PBIT Margin (%) 18.59 17.71 17.04 20.01 17.78

PBT Margin (%) 17.64 18.18 16.04 19.22 17.36

Net Profit Margin (%) 12.86 13.69 11.98 14.21 13.50

Return on Networth / Equity 59.02 67.24 66.72 53.02 34.72

(%)

Return on Capital Employed 66.91 57.73 72.25 60.59 38.79

(%)

Return on Assets (%) 24.87 24.76 22.89 23.73 20.46

Total Debt/Equity (X) 0.58 0.84 0.91 0.54 0.28

Asset Turnover Ratio (%) 1.90 2.00 1.85 166.92 151.47

LIQUIDITY RATIOS

Current Ratio (X) 1.17 1.15 0.93 1.21 1.45

Quick Ratio (X) 0.89 0.87 0.61 0.91 1.16

Inventory Turnover Ratio (X) 6.88 6.09 5.68 12.49 17.34

Dividend Payout Ratio (NP) 83.29 63.61 111.93 161.34 28.44

(%)

Dividend Payout Ratio (CP) 73.69 58.29 101.19 147.37 25.81

(%)
Earnings Retention Ratio (%) 16.71 36.39 -11.93 -61.34 71.56

Cash Earnings Retention 26.31 41.71 -1.19 -47.37 74.19

Ratio (%)

VALUATION RATIOS

Enterprise Value (Cr.) 120,092.61 106,714.91 79,317.44 89,087.38 65,849.04

EV/Net Operating Revenue 7.42 6.83 5.93 7.20 5.99

(X)

EV/EBITDA (X) 36.60 36.02 32.39 33.69 31.27

MarketCap/Net Operating 7.31 6.67 5.77 7.06 5.89

Revenue (X)

Retention Ratios (%) 16.70 36.38 -11.93 -61.34 71.55

Price/BV (X) 33.55 32.73 32.13 26.33 15.13

Price/Net Operating Revenue 7.31 6.67 5.77 7.06 5.89

Earnings Yield 0.02 0.02 0.02 0.02 0.02

2.2 MARKET ANALYSIS:

2.2.1 EVALUATE THE COMPANY'S POSITION WITHIN ITS INDUSTRY,

Britannia Industries is a well-established food company in India with a strong market position.
Here are some factors that contribute to Britannia's position in the industry:
Market share
Britannia has a leading market position in biscuits, with strong brands like Good Day, Marie
Gold, and Tiger. It also has a healthy market position in rusk, bread, and cream wafers.
Financial performance
Britannia has demonstrated strong profitability and stable earnings per share (EPS) over the
years. In FY 24, Britannia's net profit was around 21 billion Indian rupees.
Competitive advantage
Britannia has a competitive advantage through effective logistics and supply chain
management. This allows them to deliver products faster and more cost effectively than
competitors.

Growth
Britannia has shown steady revenue growth, with sales increasing from ₹14,136 crores in FY 22
to ₹16,769 crores in FY 24.
Ambitious targets
Britannia has ambitious targets, including expanding its non-biscuit portfolio and scaling its
dairy segment.
Commitment to quality
Britannia is committed to quality and setting new standards in the foods industry.
2.2.2 EXAMINE MARKET TRENDS, COMPETITION AND POTENTIAL GROWTH

Market Trends

1. Growing Demand for Healthier Options: Consumers are increasingly seeking healthier snack
alternatives, driving demand for nutritious and low-calorie products. Britannia can capitalize on
this trend by expanding its portfolio of healthier products.

2. Rising Importance of Digital Presence: The COVID-19 pandemic has accelerated the shift to
online shopping, making it essential for Britannia to invest in its e-commerce capabilities and
social media presence to engage with customers and drive sales.
3. Increasing Preference for Premium Products: Consumers are willing to pay a premium for
high-quality products, presenting an opportunity for Britannia to expand its premium product
offerings.

4. Growing Demand for Convenience Foods: Busy lifestyles and changing consumer
preferences are driving demand for convenient and easy-to-consume foods. Britannia can
leverage this trend by introducing innovative, convenient, and portable snack options.

Competition

1. Established Players: Britannia faces competition from well-established players like Parle
Products, ITC Foods, and Amul, which have strong brand recognition and extensive distribution
networks.

2. International Giants: The company also competes with international giants like Mondelez
and Nestle, which have significant resources and a strong global presence.
3. New Entrants: The Indian snack food market is attracting new entrants, including startups
and regional players, which can potentially disrupt the market with innovative products and
business models.

Potential Growth Opportunities

1. Expanding Product Portfolio: Britannia can explore opportunities to expand its product
portfolio to cater to changing consumer preferences, such as healthier and more convenient
food options.

2. Increasing Online Presence: Investing in e-commerce and social media can help Britannia
enhance its online presence, engage with customers, and drive sales.
3. Exploring New Markets: Britannia can explore opportunities to expand its presence in new
markets, both domestically and internationally, to drive growth and increase its global
footprint.

4. Innovating and Differentiating: Britannia can focus on innovating and differentiating its
products to stay ahead of the competition and attract premium pricing.

5. Enhancing Supply Chain Efficiency: Britannia can optimize its supply chain operations to
reduce costs, improve efficiency, and enhance its competitiveness in the market.
 CHAPTER – 3
MANAGEMENT AND LEADERSHIP

3.1 DISCUSS THE COMPANY'S LEADERSHIP TEAM AND THEIR

QUALIFICATIONS.

3.2 ASSESS THE COMPANY'S CORPORATE GOVERNANCE AND

DECISION-MAKING PROCESSES.
3.1 DISCUSS THE COMPANY'S LEADERSHIP TEAM AND THEIR
QUALIFICATIONS.

Board of Directors
The members of the Board of Directors of Britannia are

Here are some of the leaders at Britannia Industries and their

qualifications:
Nusli N Wadia
Chairman of the Executive Board since 1993. He was previously the
Chairman of TEXPROCIL and Mill Owners' Association (MOA).
Rajneet Singh Kohli
Director and Chief Executive Officer since September 2022. He has an
MBA from the University of Wales, UK and executive courses from
Columbia Business School and the Indian School of Business.
N. Venkataraman
Director and Chief Financial Officer. He was previously the General
Manager of Finance for Eicher Motors Ltd.
Amit Doshi
Chief Marketing Officer since January 2022. He was previously the
Director of Marketing at Lenovo.
Sudhir Nema
Chief Development and Quality Officer. He joined the company in 2014.
Varun Berry
Executive Vice-Chairman and Managing Director. He has a graduate
degree in BE Mechanical from the Punjab University and has also
attended a course in Strategic Management from Wharton University.
3.2 ASSESS THE COMPANY'S CORPORATE GOVERNANCE AND
DECISION-MAKING PROCESSES.

Corporate Governance
Our Articles of Association set out the terms under which we operate, with our
mutual status defined by the provisions contained in those articles and also the
Rules of Britannia Europe and Britannia (UK).

We have appointed Tindall Riley & Co Limited, through its wholly owned
subsidiaries, Tindall Riley Europe Sàrl and Tindall Riley (Britannia) Limited, as
the Managers who take care of our day to day business. We pay the Managers a
fee to manage and provide these services, which is disclosed in the Britannia
Group’s annual report and accounts.

OUR BOARDS AND MEMBERS’ REPRESENTATIVE COMMITTEE (MRC)

The Britannia Steam Ship Insurance Association Holdings Limited (Britannia

Holdings) is the controlling member of both Britannia Europe and Britannia (UK).
This structure ensures that across the group we apply common procedures and
policies, along with a consistent approach to the cover provided to Members,
solvency, capital management, risk, underwriting and claims handling.

The Boards for Britannia Holdings, Britannia Europe and Britannia (UK) are
identical in representation and include an independent non-executive Chair, non
executive industry experts, representation from Members and two Manager
directors. Those Boards are responsible for all regulatory matters, including:

•
o Determination of our overall strategy
o Determination of our overall investment strategy, as well as the
appointment of investment advisers and fund managers
o Determination of our risk and capital strategies
o The general level of calls and release calls
o The appointment and remuneration of the Managers
o The appointment of our auditors
o The proposal to Members of amendments to the Rules
o The distribution of any reserves or other assets to Members.

Fundamental to ensuring our mutual nature is the Members’ Representative

Committee (MRC), which is part of Britannia Holdings. The MRC’s role includes
acting as a sounding board on all significant matters considered by the Boards
e.g. strategy, calls and changes to our Rules. The MRC also has oversight of our
Standards sub-committee (which looks at loss prevention, claims trends and
membership). The MRC also has authority to approve any claim subject to
discretion up to USD2 million.

In practice, the Boards devolve some of their authority to sub-committees as well

as delegating day to day responsibility for the Britannia Group’s business to the
Managers.
USEFUL DOCUMENTS

• Group Structure and Governance

• Directors of Britannia Holdings, Britannia Europe and Britannia (UK)
• Britannia Holdings Nominations Sub-Committee – Terms of Reference
• Britannia Holdings Risk & Audit Group – Terms of Reference
• Britannia Europe Risk & Audit Group – Terms of Reference
• Britannia (UK) Risk & Audit Group – Terms of Reference
• Britannia Holdings Board – Terms of Reference
• Britannia Europe Board – Terms of Reference
• Britannia (UK) Board – Terms of Reference
• Britannia Holdings Remuneration Group – Terms of Reference
• Britannia Holdings Investment Group – Terms of Reference
• Britannia Holdings Members’ Representative Committee – Terms of
Reference
• Britannia Holdings Election Sub-Committee – Terms of Reference
• Britannia Holdings Standards Sub-Committee – Terms of Reference
• Articles of Association of The Britannia Steam Ship Insurance Association
Holdings Limited
• Articles of Association of The Britannia Steam Ship Insurance Association
Europe
• Articles of Association of The Britannia Steam Ship Insurance Association
Limited
• Britannia Group’s Annual Report and Financial Statements 2024
• Britannia P&I Financial Review and Update 2024
• Our latest Solvency and Financial Condition Report (SFCR)
 CHAPTER – 4
SWOT ANALYSIS

4.1 IDENTIFY THE COMPANY'S STRENGTHS,

4.2 WEAKNESSES,
4.3 OPPORTUNITIES
4.4 THREATS.
 SWOT ANALYSIS

Strengths of Britannia
1. Strong Brand Equity
Britannia is one of the most recognized and trusted FMCG brands in
India. Its wide range of popular products across categories like biscuits,
cakes, dairy, and bread strengthens its market position.

2. Extensive Distribution Network

Britannia’s vast distribution network spans urban and rural India,
ensuring its products are available in both major cities and remote
areas. This strong distribution capability gives it a competitive edge over
smaller players.
 3. Innovative Product Range
Britannia continuously innovates to meet evolving consumer tastes,
offering a wide variety of biscuits, dairy products, and snacks, catering
to different age groups and dietary needs.

4. Health-Focused Products
Recognizing the shift towards healthier eating habits, Britannia has
introduced health-oriented product lines such as NutriChoice and
NutriMilk. These products appeal to consumers seeking nutritious yet
tasty food options.

5. Focus on Research and Development (R&D)

Britannia invests significantly in R&D to develop new products, improve
existing offerings, and explore new markets. This continuous innovation
keeps Britannia competitive in a fast-paced industry.

Weaknesses of Britannia
1. Dependence on Biscuits Segment
Despite its expansion into dairy and other food categories, a significant
portion of Britannia’s revenue still comes from its biscuit business. Over-
dependence on this segment exposes the company to market saturation
and competition from global players.

2. Limited Global Presence

While Britannia is expanding internationally, its global footprint remains
relatively limited compared to other major FMCG players. This reduces
its ability to capitalize on international market opportunities.

3. Pricing Pressure in Competitive Markets

The FMCG sector in India is highly competitive, with both domestic and
multinational brands vying for market share. This intense competition
often results in pricing pressures that could impact profitability.
 4. Volatility in Raw Material Prices
Britannia’s profitability is affected by fluctuations in the prices of key raw
materials such as wheat, milk, and sugar. These costs can be volatile
due to factors like agricultural output, global commodity prices, and
weather conditions.

5. Supply Chain Challenges

The company faces supply chain constraints, particularly in ensuring
consistent quality and timely delivery of products across India’s vast
geography, especially in rural areas.

Opportunities for Britannia

1. Expansion in Dairy and Health-Focused Products
Britannia has an opportunity to significantly grow its presence in the
value-added dairy segment and health-conscious product categories.
Consumer demand for products like fortified biscuits, low-fat dairy items,
and protein-rich snacks is on the rise.

2. International Market Expansion

Britannia can explore untapped markets in Africa, Southeast Asia, and
the Middle East, where demand for Indian FMCG products is increasing.
By focusing on exports, Britannia can diversify its revenue streams.

3. Product Innovation in Snacking and Bakery

With rising demand for convenient and on-the-go snacks, Britannia can
introduce more innovative products in the snacking and bakery
categories to capture a growing segment of consumers.

4. E-commerce and Digital Growth

As online shopping continues to surge in India, Britannia has an
opportunity to strengthen its e-commerce presence, both through direct-
to-consumer platforms and partnerships with leading online
marketplaces like Flipkart and Amazon.
 5. Sustainability and Eco-Friendly Practices
There is increasing consumer interest in environmentally responsible
brands. Britannia can leverage this trend by adopting eco-friendly
packaging solutions and reducing its carbon footprint, enhancing its
brand appeal.

Threats to Britannia
1. Intense Competition from Domestic and International Brands
Britannia faces stiff competition from both local FMCG players like Parle
and ITC, as well as international brands such as Nestle and Mondelez.
This competition can impact market share and profitability.

2. Regulatory and Health Challenges

Increasing scrutiny over food safety standards and health regulations,
including potential taxes on high-sugar and high-fat products, could
pose regulatory challenges and negatively affect Britannia’s product
offerings.

3. Rising Raw Material Costs

Volatility in the prices of essential raw materials, such as wheat, milk,
and edible oils, presents a risk to Britannia’s profitability, especially in a
price-sensitive market like India.

4. Changing Consumer Preferences

As consumers shift towards healthier, organic, or plant-based products,
Britannia may need to adapt its product portfolio to align with evolving
dietary preferences. Failure to do so could result in a loss of market
share.
5. Economic Slowdown
Economic downturns, inflation, or reduced consumer spending could
lead to a decline in demand for Britannia’s products, especially in
premium categories like high-end biscuits or value-added dairy
products.
 CHAPTER – 5
SUMMARY OF FINDINGS, SUGGESTIONS AND CONCULIOSN

5.1 SUMMARIZE THE KEY FINDINGS OF THE ANALYSIS,

5.2 SUGGESTIONS
5.3 CONCLUSION
5.1 SUMMARIZE THE KEY FINDINGS OF THE ANALYSIS,

1. Strong Brand Portfolio: Britannia has a diverse portfolio of well-known brands, including
Good Day, Marie, and Tiger.

2. Wide Distribution Network: The company has an extensive distribution network that covers
over 4.5 million outlets across India.

3. Innovative Products: Britannia has a strong focus on innovation, with a dedicated R&D
center that develops new products and packaging solutions.

4. Experienced Leadership Team: The company's leadership team has a wealth of experience in
the FMCG industry.

5. Growing Demand for Healthier Options: Consumers are increasingly seeking healthier snack
alternatives, presenting an opportunity for Britannia to expand its portfolio of nutritious
products.

6. Intense Competition: The Indian biscuit and dairy products market is highly competitive, with
several established players and new entrants.

7.Raw Material Price Volatility: The company is exposed to raw material price volatility, which
can impact its profitability.

5.2 SUGGESTIONS

1. Expand Product Portfolio: Britannia can explore opportunities to expand its product
portfolio to cater to changing consumer preferences, such as healthier and more convenient
food options.
2. Increase Online Presence: The company can leverage the growing trend of online shopping
to expand its e-commerce capabilities and reach new customers.

3. Enhance Sustainability Initiatives: Britannia can focus on enhancing its sustainability

initiatives, such as reducing waste, i
mproving energy efficiency, and promoting sustainable agriculture practices.

4. Invest in Digital Marketing: The company can invest in digital marketing initiatives to engage
with customers, promote its products, and build brand awareness.

5. Diversify into New Markets: Britannia can explore opportunities to expand its presence in
new markets, both domestically and internationally.

6. Improve Supply Chain Efficiency: The company can focus on improving its supply chain
efficiency to reduce costs, improve delivery times, and enhance customer satisfaction.

7. Develop Strategic Partnerships: Britannia can explore opportunities to develop strategic

partnerships with suppliers, distributors, and other stakeholders to drive growth and
innovation.

5.3 CONCLUSION

Britannia has been successfully developing and generating trust among consumers
by delivering a trust base and quality products. The marketing strategy of Britannia
is product-centric where the company has been highlighting the taste and nutrition.
Various brands like Parle G, ITC are giving neck-to-neck competition to Britannia
in terms of market share and new product development. Britannia’s marketing
strategy has to change with the current market trends to gain customer attention
Now that we have an in-depth view of the company’s profile, marketing strategy and

marketing mix, it shows the different methods used to adapt to promote and publicize

their products across India and other countries. Based on the information researched,

we find that they focus on consumer needs to a very large extent. This is shown by

the fact that, since consumers are more health conscious nowadays, they have

introduced NutriChoice Diabetic Biscuits. It is also proven by their tagline, “Eat

Healthy, Think Better”. In conclusion, we see that how a small sized company has grown to be
one of the largest biscuit selling brands across India and many other

countries world-wide.