BRITANNIA

Company Overview

The story of one of India's favorite brands reads almost like a fairy tale. Once upon a
time, in 1892 to be precise, a biscuit company was started in a nondescript house in
Calcutta (now Kolkata) with an initial investment of Rs. 295. The company we all
know as Britannia today.
1. The beginnings might have been humble-the dreams were anything but. By
1910, with the advent of electricity, Britannia mechanised its operations, and
in 1921, it became the first company east of the Suez Canal to use imported
gas ovens. Britannia's business was flourishing. But, more importantly,
Britannia was acquiring a reputation for quality and value. As a result, during
the tragic World War II, the Government reposed its trust in Britannia by
contracting it to supply large quantities of "service biscuits" to the armed
forces.
As time moved on, the biscuit market continued to grow… and Britannia grew
along with it. In 1975, the Britannia Biscuit Company took over the
distribution of biscuits from Parry's who till now distributed Britannia biscuits
in India. In the subsequent public issue of 1978, Indian shareholding crossed
60%, firmly establishing the Indianness of the firm. The following year,
Britannia Biscuit Company was re-christened Britannia Industries Limited
(BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.
On the operations front, the company was making equally dynamic strides. In
1992, it celebrated its Platinum Jubilee. 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 had with 'Brand Britannia'.
Britannia strode into the 21st Century as one of India's biggest brands and the pre-
eminent food brand of the country. It was equally recognised for its innovative
approach to products and marketing: 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

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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.
Today, more than a century after those tentative first steps, Britannia's fairy tale is not
only going strong but blazing new standards, and that miniscule initial investment has
grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders.
The company's offerings are spread across the spectrum with products ranging from
the healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman
Cheese. Having succeeded in garnering the trust of almost one-third of India's one
billion population 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
savour the results, happily ever after.

For the year ended 31st March 2008, the Company achieved a sales growth of 17.5%
on an expanded base arising from 27.5% growth in the previous year. Net Profit of the
Company increased 77.5 % to Rs 1,910 Mn compared with Rs 1,076 Mn in 2006-07.
Operating Margin increased by 307 basis points to 7.5%.
The Company witnessed all round growth in key categories with Biscuits recording
sales of Rs. 23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn
mark during 2007-08. This business has doubled in two years.
In an intensely competitive biscuit environment, all ³Power Brands² of the Company
recorded double digit growth, with Tiger and Good Day growing in excess of 20%.
The Company¹s innovation forays have successfully addressed new benefit clusters
and NutriChoice Digestive has claimed its position in the health and vitality space.
The Company continues to maintain its leadership edge in 6 out of 7 key product
segments, the only exception being Glucose.
The Company introduced several new and renovated offerings in Tiger, Good Day,
Treat and MarieGold. The health and nutrition platform was buttressed by Tiger
Banana with ³iron-zor², fortified Milk Bikis, renovated MarieGold and Nutrichoice
Digestive. To tap the more indulgent consumers, your Company launched Good Day
Classic Cookies, while continuing to roll out individual consumption packs at the
highly affordable Rs. 5 price point.

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The Bread, Cake and Rusk portfolio was strengthened with the successful relaunch of
Breads, fortified with vitamins and minerals, positioning them firmly as the healthy
start to your day. This innovation combined with relevant consumer activation in key
markets has seen a 30%+ growth in the Bread, Cake and Rusk business.
As a Corporate, Britannia worked for the benefit of all stakeholders - shareholders,
consumers, dealers , suppliers, bankers and employees. It has established an excellent
track record in terms of its financial performance and dividends distributed to its
shareholders. This has been adequately demonstrated with the Company's topline
growing from Rs 10,301 Mn in 1999 to Rs 26,176 Mn in 2008, a growth of 154%
over the last 10 years. The net profit grew even more significantly at 382% from Rs
396 Mn in 1998-99 to Rs 1,910 Mn in 2007-08, giving a CAGR of 19.1%. As at 31st
March 2008, the issued and paid up capital of Britannia amounts to 23, 890,163
equity shares having a nominal value of Rs 10 each. The shareholder base is about
25,300 in number

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 MILESTONES OF THE COMPANY

1892 The Genesis - Britannia established with an investment of Rs. 295 in Kolkata
1910 Advent of electricity sees operations mechanized
1921 Imported machinery introduced; Britannia becomes the first company East of
the Suez to use gas ovens
1939 – 44 Sales rise exponentially to Rs.16,27,202 in 1939 During 1944 sales
ramp up by more than eight times to reach Rs.1.36 crore

1975 Britannia Biscuit Company takes over biscuit distribution from Parry's
1978 Public issue - Indian shareholding crosses 60%
1979 Re-christened Britannia Industries Ltd. (BIL)
1983 Sales cross Rs.100 crore
1989 The Executive Office relocated to Bangalore
1992 BIL celebrates its Platinum Jubilee
1993 Wadia Group acquires stake in ABIL, UK and becomes an equal partner with
Groupe Danone in BIL
1994 Volumes cross 1,00,000 tons of biscuits
1997 Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to new
mission: 'Make every third Indian a Britannia consumer' BIL enters the
dairy products market
1999 Britannia Khao World Cup Jao" - a major success! Profit up by 37%
2000 Forbes Global Ranking - Britannia among Top 300 small companies
2001 BIL ranked one of India's biggest brands No.1 food brand of the country
Britannia Lagaan Match: India's most successful promotional activity
of the year Maska Chaska: India's most successful FMCG launch
2002 BIL launches joint venture with Fonterra, the world's second largest dairy
company Britannia New Zealand Foods Pvt. Ltd. is born Rated as 'One
amongst the Top 200 Small Companies of the World' by Forbes Global
Economic Times ranks BIL India's 2nd Most Trusted BrandPure
Magic -Winner of the Worldstar, Asiastar and Indiastar award for
packaging
2003 Treat Duet'- most successful launch of the year Britannia Khao World Cup Jao
rocks the consumer lives yet again 2004 Britannia accorded the status

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 of being a 'Superbrand' Volumes cross 3,00,000 tons of biscuits Good
Day adds a new variant - Choconut - in its range
2005 Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular chant!
Britannia launched 'Greetings' range of premium assorted gift packs
The new plant in Uttaranchal, commissioned ahead of schedule. The
launch of yet another exciting snacking option - Britannia 50-50
Pepper Chakkar
2007 Britannia industries formed a joint venture with the Khimji Ramdas Group and
acquired a 70 percent beneficial state in the Dubai-based Strategic
Foods International Co. LLC and 65.4% in the Oman-based Al Sallan
Food Industries Co. SAOG
2008 Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day Classic
Cookies', Low Fat Dahi and renovated 'MarieGold'

COMPANY HISTORY

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1918
The Company was Incorporated on 21st March, as a public limited company under
the Indian Companies Act, VII of 1913. The Company Manufacture bakery and
soyabean products, export of cashew Kernels marine products, general merchandise
items and computer software.

1921
The Company obtained a priority of Certificate and imported new machinery thereby
becoming the first biscuit company in India to install and run a gas oven plant.

1924
A new factory was established at Kasara Pier Road in Mumbai. In the same year, the
Company became a subsidiary of Peek, Frean & Co. Ltd., U.K., a leading biscuit
manufacturing company, and further strengthened its position by expanding the
factories at Calcutta and Mumbai.

1939-45
A large part of the Company's production was diverted to war effort on account of
World War II and at times as much as 95% of the total capacity was booked for the
production of Service Biscuit.

1951
19,779 Equity shares issued to acquire the Delhi Biscuit Co. Ltd. In August 1,53,234
Bonus equity shares issued in the proportion 1:1.

1952
The Calcutta Factory was shifted from Dum Dum to spacious grounds at Taratola
Road in the suburbs of Calcutta. During the same year automatic plants were
installed there and later in Mumbai in 1954.

1954

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The development of high quality sliced and wrapped bread in India was pioneered by
the Company and was first manufactured at Delhi. 1,53,234 Bonus equity shares
issued in the proportion 1:2.

1961
Manufacture of bread was started in Mumbai and a new bread bakery was
set up at Delhi in 1965.
2,29,851 Bonus equity shares issued in the proportion 1:2.

1966
In May 1966, 3,06,468 Bonus equity shares issued in the proportion 4:9.

1968
On 14th May, 6,64,014 Bonus equity shares issued in the proportion 2:3.

1970
9,96,021 Bonus equity shares issued in the proportion 3:5.

1976
Britannia bread was introduced in Calcutta and Chennai.18,59,239 Bonus equity
shares issued in the proportion 7:10 in April.

1978
After the issue of shares to the Indian public, the non-resident holding in the
Company was reduced to less than 40%.18,00,000 Equity shares issued at a premium
of Rs 5 per share 4,06,286 shares offered as rights to resident Indian shareholders in
proportion 1:5. 43,714 shares offered to the Company's employees; 1,00,000 shares
to UTI and 50,000 shares each to LIC and GIC were reserved for allotment and
11,50,000 shares offered to the public during January/February.

1979
With effect from 3rd October, the name of the Company was changed from the
Britannia Biscuit Co., Ltd., to Britannia Industries Ltd.

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1980
The Company signed a 10 year technical collaboration agreement with Nebico Pvt.
Ltd., Nepal, for the supply of know-how relating to manufacturing, packaging and
marketing of biscuits and selection of plant and machinery.

1982
25,26,118 Bonus equity shares issued in proportion 2:5.

1986
The turnover increased by 19.4% over the the previous year to Rs 192.15 crores.
Sales of biscuits, in terms of volume, registered a satisfacotry growth. Good Day, a
new biscuit launched during the year met with good market response. Production of
bread at Delhi unit was adversely affected due to launched pure refined cooking oil
under the brand name of Vital. 35,36,565 Bonus shares issued in proportion 2:5
during July 1987.

1987
In (16 months), the total sales turnover increased on an annualized basis by 38.7%
over the previous year. Increase in sales of bakery and soya products divisions and
higher cashew exports helped to realise higher sales. With the introduction of some
more brands during the year, the total biscuit brands of the bakery division reached
27. The soya products division introduced a range of extruded products under the
brand name VITAL FEAST.

1989
The Company launched new brand of biscuit, namely, `CIRCUT'. Another brand
PURE MAGIC was extended nationally and posta badam was added to GOOD DAY
range of biscuits. Bread production and affected for some time at Delhi factory due to
industrial unrest. 61,88,989 Bonus shares issued in proportion 1:2.

1990
Two new brands of biscuits,Elaichi Creamand Petit Beurre were launched. Also, a
new cashew badam variant of the brand Milk Bikis and brand extension of Pure

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magic biscuit Vanilla cream were launched. Fruit bread was launched in Delhi and
was well received.

1991
The Company launched two new speciality brands viz., Britannia milk bread and
Britannia brown bread in Delhi and extended nationally its main brands Petit Beurre
and elaichi cream.On 17th August, the Company handed over to SM Dychem Ltd, its
soya unit at Vidisha, MP.The Company proposed to invest in the equity capital of
Britco Company Pvt. Ltd., a joint venture with JMRPCO Ltd., Hongkong, for
manufacture of beverage bases and essence for Coca Cola, Fanta & Sprite and to
export processed snack foods.

1992
The Company launched a new brand of biscuit, namely `Little Hearts' which carved a
niche in the market.

1993
The Company launched new brand of biscuit, namely, `Fifty-Fifty'.Bread market
remained depressed. To revive the market, the Company launched a speciality brand
viz. Premium Bake' in both Delhi and Mumbai. During the year, the company has
started exporting Basmati Rice under the name `Britannia Indian Pearl'.

1994
During the year, the bakery division launched `Bakers Choice' a sweet biscuit and
Thinlite' a light semi-sweet biscuit aimed at fitness concious consumers.

1995
Under the `Pure Magics' Umbrella, the company launched a new sandwich cream
biscuit with two-in-one flavour viz. double cream and this was well received in the
market. In the cake market, under the premium segment, the company launched with
Groupe Danone's technological input a Swissroll Cake Mini Roule which was also
met with good response.

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1996
Mariegold biscuits registered quantum growth in volumes and milk bikis milk cream
launched during the year was well received. Despite general slow down in the
economy the company's profits improved.

1997
The Biscuit industry has been dereserved which would not only remove restriction on
increasing capacity but would also provide opportunities of growth through new
products and efficient production systems. The Company undertook to diversify into
cheese and dairy whitner. The Company launched `Tiger' range of biscuits for mass
market category, `Jim-Jam' and Chekkers' in the premium segment. The Company
also launched Butter in Delhi during the year.
Britannia Industries (BIL) is one of the largest bakery in the private sector and
a household name in food products. Britannia Industries Ltd (BIL) will shortly enter
the cheese and milk products market with an alliance proposed between itself and the
Mumbai-based Dynamix Dairy Ltd.
Britannia Industries Ltd is all set to launch a new corporate identity and a total
revamp of its product portfolio, with strategic inputs from an international strategic
design and brand repositioning company - Shining Strategic Design.

1998
Food major Britannia Industries Ltd (BIL) has signed a wage agreement with the
Maharashtra General Kamgar Union (MGKU), providing an average wage increase
for 1,000 workers employed in the biscuit manufacturing unit at Reay Road, Mumbai.
The company has launched Half/Half, a soft cake filled with cream in two variants,
chocolate-vanilla and vanilla-orange. Half/Half comes in a twin-cake pack (Rs.6) and
a tray pack containing five cakes. Britannia Industries Ltd has launched a festival
offer for
Britannia Dairy Whitener in Kerala.
A Ind AAA rating has been signed to the Rs.100-crore secured non-
convertible debenture issue from Britannia Industries Limited (BIL).

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1999
Britannia Industries Ltd has rolled out its flavoured milk brand `Zip-Sip' in
tetrapaks. Zip-Sip has been launched in Mumbai and some markets in the South.
Britannia Industries, launching the country's first branded flavoured milk is another
step towards its goal of becoming a dairy-products giant. In a move meant to sharply
increase its India-profile, knowledge major' Encyclopaedia Britannica Inc plans to
come out - for the first time - with India and south Asia-specific volumes targeted at
school children as well as institutions and the general `knowledge-seeker'.

2000
Britinnia Industries has launched consumer promotion scheme Britannia Khao,
Cricketer Ban Jao' on May 1st.
Britannia Industries, in its second coming in the Indian dairy market under the
Milkman' brand, is introducing a range of products many in desi flavours to woo the
Indian consumer.The Company has launched Vita Mariegold, a semi-sweet biscuit
which reportedly has 10 essential vitamins, milk protein and 58 cereals.
Britannia's Milk Bikis Funland biscuits an innovative extension of the Milk Bikis
brand.
The Industry is set to start bread-manufacturing factories in Kochi, Hyderabad and
Chennai to tap the region's market potential.The Company has become the first
company to take its products to the Net in the form of a video file.
Britannia Industries has launched Britannia Milkman Butter, a product under the
Milkman brand.The Company has appointed Tata Energy Research Institute (Teri) for
a power audit.
FITCH rating India Pvt. Ltd has reaffirmed the Ind AAA rating assigned to the Rs
1000 million non convertible debenture program of Britannia Industries Ltd.
The Company has lauched two new dairy products Milkman Cold Coffee and
Milkman Sweet lassi.
Britannia Industries Ltd. has introduced a new range of traditional namkeens called
Britannia Snaz in Mumbai.

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2001
Britannia Industries has launched Britannia Milkman Milk in Delhi. - Biscuits major
Britannia Industries will fund its in-principle agreement to acquire 49 per cent of
Kwality Biscuits through internal accruals.

2002
Britannia Industries Ltd announced on March 26, 2002 that it has entered into a joint
venture with the Fonterra Cooperative Group, New Zealand's biggest company and
one of the leading diary co-operative groups in the world. Britannia's new COO is
Nikhil Sen.

2003
Board of Directors of Britannia Industries Ltd has passed a resolution to terminate the
employment of Mr S K Alagh as Managing Director of the company with immediate
effect.
The management of Britannia Industries has roped in John Miller, a Danone
representative, as additional director on its board.
-Britannia New Zealand Foods, a joint venture of Britannia Industries and Fonterra
Co-operative group of New Zealand has launched Britannia MilkMan fresh milk.
Britannia's Non-convertible Debentures have been rated AAA by Fitch Rating India
as Stable Outlook.Britannia Industries has appointed Mr.Nikhil Sen,Chief Operating
Officer as the manager of the company
.
2004
Britannia Industries Ltd has informed that pursuant to the approval of the shareholders
of the Company at the AGM held on August 08, 2003 and the subsequent application
to the Cochin Stock Exchange Ltd., the said stock exchange has delisted the securities
of the Company with effect from November 15, 2003.
-Britannia Industries Ltd reviews marketing alliance with the Kolkata-based Thacker
Dairy Products Pvt Ltd

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2005
Britannia New Zealand launches health drink for adult

2006
Britannia Industries Ltd has forged a strategic alliance with CCD Daily Bread Pvt Ltd
a Bangalore based Company engaged in manufacturing and retailing of premium
breads, cakes and high end ready to eat foods and snacks
Britannia Industries Ltd has appointed Mr. Stephan Gerlich as a Director.
Britannia Industries Ltd has informed that Mr. Durgesh Mehta has joined the
Company as the Chief Financial Officer (CFO) with effect from November 16, 2006.

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 KEY EMPLOYEES OF THE COMPANY

Name Designation
Mr. Nusli Neville Wadia Chairman
Ms. Vinita Bali Managing Director
Mr. A.K.Hirjee Director
Dr. Ajai Puri Director
Mr. Avijit Deb Director
Mr. Jeh N Wadia Director
Mr. Keki Dadiseth Director
Mr. Nimesh N Kampani Director
Mr. Pratap Khanna Director
Mr. S.S.Kelkar Director

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 LOCATION DETAILS - BRITANNIA INDUSTRIES

Location Type Address

Office Executive Office: Britannia Gardens
Airport Road Vimanapura
Bangalore - 560017
Karnataka - India
Phone : 66928000
Fax : 25263265
Email : madanv@britindia.com
Internet : N.A.
Factory/plant Plot No. 1, Sector 1 Integrated Industrial
Estate (IIE) Pant Nagar, Tehsil/Taluk
Udham Singh Nagar Di -
Uttaranchal - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Reay Road (East),
Mumbai - 400010
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Branch Office Sandhu Farms P O Box No. 18
Nainital District - 263153
Uttar Pradesh - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Sanchi Vidisha Road
Vidisha - 464001

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 Madhya Pradesh - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Branch Office Village Fazipur Mehrola
Nainital District - 0
Uttar Pradesh - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Registered Office 5/1A,
Kolkata - 700017
West Bengal - India
Phone : 22872439, 22872057
Fax : 22872501
Email : bguha@britindia.com
Internet : N.A.
Factory/plant 15, Taratola Road
Kolkata - 700088
West Bengal - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant MTH Road,
Chennai (Madras) - 600050
Tamil Nadu - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Plot No. 1, Sector 1 Integrated Industrial
Estate (IIE), Pant Nagar, Tehsil/Taluk,

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 Rudrapur Kichha,
Udham Singh Nagar Di -
Uttaranchal - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Factory/plant Reay Road (East), Mazagaon
Mumbai - 400010
Maharashtra - India
Phone :
Fax :
Email : N.A.
Internet : N.A.
Registered Office 5/1A, Hungerford Street,
Kolkata - 700017
West Bengal - India
Phone : 22872439, 22872057
Fax : 22872501
Email : investorrelations@britindia.com
Internet : N.A.

PRODUCTS & SERVICES

Tiger, launched in 1997, became the largest brand in Britannia's

portfolio in the very first year of its launch and continues to be so
till today. Tiger has grown from strength to strength and the re-
invigoration in June 2005 and more recently, in Apr 2008 has further helped bolster

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its growth in the highly competitive glucose biscuit category .

Tiger is a Glucose biscuit, which comes with the added goodness of wheat and
milk. It is for modern mothers who play an enabling role for their children to compete
in today's world and thus want the best. Now Tiger Glucose has been fortified with
"Iron Zor" with an attempt towards addressing the Iron Deficiency crisis the children
of India face.
Over the years, Tiger has become the mass-market face of Britannia
symbolising fun and energy in both urban and rural India, and transcending glucose
biscuits.

Tiger Coconut : Delicious Coconut Flavoured Energy Biscuits, launched in 2001

Tiger Creams : Was Introduced in 2002 at just Rs 5 per pack. Tiger Cream is now
available in Orange, Elaichi, Chocolate, Pineapple, Strawberry and Butterscotch
flavours, and promises to bring more fun and more energy to children across the
country.

Chota Tiger : Is an extension of brand Tiger launched nationally in May, 2007. It is

mini sized poppable glucose biscuit with coloured sugar sprinkling. It comes in two
variants: Milk Sparkies and Choco Sparkies
Tiger Banana : Britannia is committed to help secure every child's right to Growth &
Development through good food everyday. Purposefully taking forward the credo of
'Eat Healthy, Think Better ', we have launched a new variant under our power brand
TIGER - TIGER BANANA - power packed with IRON ZOR & and with the
delightful taste of banana.
Britannia Good Day was launched in 1986 in two
delectable avatars - Good Day Cashew and Butter. Over the
years, new variants were introduced - Good Day Pista
Badam in 1989, Good Day Chocochips in 2000 and Good
Day Choconut in 2004.

This rich biscuit enjoys a fan following of consumers across all ages, loyal to
the brand promise of a great taste evident from the visibly abundant ingredients. Good

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Day is amongst the fastest growing brands in Britannia's portfolio and is today the
market leader with almost 2/3 share of the market. The brand is synonymous with
everyday treats that infuse happiness into people's daily lives.

After two decades of magnificent success; it was time to give the nation yet
another reason to have a good day. Abundance, goodness, indulgence and now
unrestrained joy - that is the message of this new campaign.

The new TT ad is the uncontrollable expression of the ticket collector's

happiness and joy that is stimulated by consumption of the cookie, that spreads cheer
amongst the people around him creating an atmosphere of shared joy that's
unorchestrated and straight from the heart. The celebration was taken to the IPL as
Good day cheered along with a million cricket fans in the stadiums, each screaming
and proclaiming "Ho gaya re Good Day". The dazzling brilliance of this endeavour,
the contagious rhythm needs to be lived and spread through the nation, making 'Iska
toh ho Gaya Re Good Day' a part of the common lingo and a way of life.

Good Day truly believes laughter and happiness are infectious, it transcends
race, caste creed unifying humanity in an inclusive emotion.

The brand perseveres to infuse cheer, hearten the nation and enliven lives.
With its rightful place on the front page of The Times of India, Good Day gifts the
nation a priceless treasure, that of spreading JOY!

With a brand name like 50-50, can the product be

anything but fun? Launched in 1993, 50-50 belongs to the
family of crackers and is considered the "very very tasty
tasty" snack.

Britannia 50-50 is the leader in its category with more than one-third of market share.
The versatile and youthful brand constantly aims to provide a novel and exciting taste
experience to the consumer. As a result, in 2001, the delicious Maska Chaska was
launched as a variant of the original brand and became an instant success.

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 Kids may dislike drinking milk, but they love Britannia
Milk Bikis! Milk Bikis has been trusted by mothers as a
source of growth energy of milk and their loyalty to the
brand has made it an integral part of their children's
nutrition regimen

In 1996, Milk Bikis launched a variant called Milk Cream. These round biscuits come
with smiley faces and are full of milk cream that makes them very popular with
children. Milk Cream also promoted the idea of 'eating milk' in a yummy way, which
makes mothers happy as well
.
To keep pace with the demands of the new generation and to bring milk nutrition to
the masses in a delightful form, Milk Bikis, went one step further in the last quarter of
2006 in providing not just energy but ‘developmental fuel’ for children. With a unique
and attractive honeycomb design and an enhanced product experience, the new biscuit
is now fortified with SMART NUTRIENTS – 4 vital vitamins, iron and iodine,
proven to aid mental and physical development in growing kids.

Britannia's oldest brand enjoys a heritage that spans the last 50

years - and going strong. In a market swamped with me-too
products and where even the name 'Marie' has become generic,
Britannia Marie Gold has maintained its stronghold. Today, the
ever-popular Marie Gold is synonymous with the 'Tea Time Biscuit'. Its taste,
crispiness and lightness make it a must for every tea break. It is the #1 brand in its
category by a long shot.

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Need For Study:-

In India brittania is one of biggest brand & preminent food brand of the country. The

main aspect or need for study to know about the present financed position of the

company. To know about the employee relations & their commitment towards the

company. To gather the information regarding distribution of its products. To

determine global expansion of the company.

Objectives Of The Study:-

 To know about the status of the competitors.

 To analyse the business level strategy of the company.

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  To analyse the financial performance of the company

 To know about the experts view of the company.

 To determine sales activities by understanding customers business.

 To analyse strengths and weakness of the company.

 To know about the key employees of the company.

Data sources

The source of study is secondary data.

The company information is collected from various websites related to BRITANNIA

retail.

• www. BRITANNIA.com

• www.moneycontrol.com

• www.financialexpress.com.

• www.wikipedia.com

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 • www.indianfinancelevel.com

• www.companyreviews.com

• www.webindia.com

• www.businesstimes.com

Company website: www.BRITANNIAretail.net

Limitations Of Study:-

 Reliability is not guaranteed.

 Secondary data can be general and vegue and maynot really help

companies with decision making.

 The data may be old and out of data.

 The company publishing the data may not be reputable.

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 FINANCIAL STATEMENT
Balance sheet
(Rs
crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Sources of funds
Owner's fund
Equity share capital 23.89 23.89 23.89 23.89 25.11
Share application money - - - - -
Preference share capital - - - - -
Reserves & surplus 731.92 590.93 525.20 419.63 405.91
Loan funds
Secured loans 1.94 1.53 1.62 6.14 39.19
Unsecured loans 104.16 3.25 7.74 - -
Total 861.91 619.60 558.45 449.66 470.21
Uses of funds
Fixed assets
Gross block 453.18 392.12 315.37 250.35 273.51
Less : revaluation reserve - - - - -
Less : accumulated depreciation 212.19 193.75 174.81 154.39 146.07
Net block 240.99 198.37 140.56 95.95 127.44
Capital work-in-progress 9.69 16.03 11.08 31.70 0.86
Investments 380.83 320.05 359.86 330.08 291.32
Net current assets
Current assets, loans & advances 554.84 382.61 349.10 278.07 239.96
Less : current liabilities &
347.67 323.03 318.22 320.37 235.67
provisions
Total net current assets 207.17 59.58 30.88 -42.30 4.29
Miscellaneous expenses not
23.23 25.58 16.06 34.24 46.30
written
Total 861.91 619.60 558.45 449.66 470.21
Notes:
Book value of unquoted 380.81 352.55 392.33 228.56 291.28

24
investments
Market value of quoted
2.93 2.12 2.88 2.02 1.41
investments
Contingent liabilities 169.55 102.63 67.24 61.24 58.55
Number of equity
238.90 238.90 238.90 238.90 251.12
sharesoutstanding (Lacs)

Cash flow
(Rs
crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Profit before tax 232.26 118.41 200.71 220.24 184.39
Net cashflow-operating activity 63.13 87.08 64.90 192.46 82.59
Net cash used in investing activity -130.31 59.05 -37.41 -45.18 39.47
Netcash used in fin. activity 53.08 -49.15 -36.17 -140.51 -185.96
Net inc/dec in cash and equivlnt -14.10 96.98 -8.68 6.77 -63.90
Cash and equivalnt begin of year 238.91 141.93 150.61 9.86 73.76
Cash and equivalnt end of year 224.81 238.91 141.93 16.63 9.86

Profit loss account

(Rs
crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Income:
Operating income 2,587.86 2,199.32 1,713.34 1,587.57 1,439.61

25
Expenses
Material consumed 1,563.79 1,404.58 1,008.64 899.46 767.10
Manufacturing expenses 244.96 212.30 162.42 204.39 194.39
Personnel expenses 90.53 76.71 73.07 71.64 82.06
Selling expenses 363.20 303.67 209.75 157.64 167.39
Adminstrative expenses 93.06 73.37 58.50 70.51 67.24
Expenses capitalised - - - - -
Cost of sales 2,355.54 2,070.62 1,512.38 1,403.63 1,278.18
Operating profit 232.32 128.70 200.96 183.94 161.44
Other recurring income 24.07 15.67 13.38 19.49 15.81
Adjusted PBDIT 256.39 144.37 214.34 203.43 177.24
Financial expenses 9.73 8.90 5.09 2.10 6.05
Depreciation 29.08 25.27 21.72 18.97 22.40
Other write offs - - - - 9.72
Adjusted PBT 217.57 110.20 187.53 182.35 139.07
Tax charges 41.26 10.76 54.29 57.95 65.59
Adjusted PAT 176.31 99.44 133.25 124.40 73.48
Non recurring items -3.95 5.89 8.90 34.44 38.93
Other non cash adjustments 18.64 2.32 4.28 -8.99 6.39
Reported net profit 191.00 107.65 146.43 149.85 118.80
Earnigs before appropriation 251.00 157.65 196.43 199.85 168.80
Equity dividend 43.00 35.84 35.84 33.45 27.23
Preference dividend - - - - -
Dividend tax 7.31 6.09 5.03 4.69 3.49
Retained earnings 200.69 115.73 155.57 161.71 138.08

Capital structure

(Rs
crore)
Paid Up Paid Up
From To Class Of Authorize Issued Paid Up
Shares Face
Year Year Share d Capital Capital Capital
(Nos) Value
Equity
2007 2008 50.00 23.89 23890163 10 23.89
Share
Equity
2006 2007 50.00 23.89 23890163 10 23.89
Share
Equity
2005 2006 50.00 23.89 23890163 10 23.89
Share
Equity
2004 2005 50.00 23.89 23890163 10 23.89
Share
2003 2004 Equity 50.00 25.11 25112050 10 25.11

26
 Share
Equity
2002 2003 50.00 25.90 25904276 10 25.90
Share
Equity
2001 2002 50.00 26.85 26850450 10 26.85
Share
Equity
1999 2001 50.00 27.85 27850450 10 27.85
Share
Equity
1989 1999 50.00 18.57 18566967 10 18.57
Share
Equity
1988 1989 20.00 12.38 12378000 10 12.38
Share

Ratios

(Rs
crore)
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Per share ratios
Adjusted EPS (Rs) 73.80 41.62 55.78 52.07 29.26
Adjusted cash EPS (Rs) 85.98 52.20 64.87 60.01 42.05
Reported EPS (Rs) 79.95 45.06 61.29 62.27 47.31
Reported cash EPS (Rs) 92.12 55.64 70.38 70.21 60.10
Dividend per share 18.00 15.00 15.00 14.00 11.00
Operating profit per share (Rs) 97.24 53.87 84.12 76.99 64.29
Book value (excl rev res) per
306.65 246.65 223.12 171.32 153.20
share (Rs)
Book value (incl rev res) per share
306.65 246.65 223.12 171.32 153.20
(Rs.)
Net operating income per share
1,083.23 920.60 717.17 664.53 573.28
(Rs)
Free reserves per share (Rs) 294.86 234.99 211.46 159.66 142.11

27
Profitability ratios
Operating margin (%) 8.97 5.85 11.72 11.58 11.21
Gross profit margin (%) 7.85 4.70 10.46 10.39 9.65
Net profit margin (%) 7.31 4.86 8.48 9.25 8.16
Adjusted cash margin (%) 7.86 5.63 8.97 8.92 7.25
Adjusted return on net worth (%) 24.06 16.87 24.99 30.39 19.09
Reported return on net worth (%) 26.07 18.26 27.47 36.34 30.87
Return on long term funds (%) 29.99 19.32 34.97 41.58 33.66
Leverage ratios
Long term debt / Equity - - - - -
Total debt/equity 0.14 0.01 0.01 0.01 0.09
Owners fund as % of total source 87.69 99.22 98.32 98.63 91.66
Fixed assets turnover ratio 5.73 5.63 5.43 6.34 5.93
Liquidity ratios
Current ratio 1.60 1.18 1.10 0.86 1.02
Current ratio (inc. st loans) 1.23 1.17 1.07 0.83 0.76
Quick ratio 0.72 0.51 0.47 0.40 0.44
Inventory turnover ratio 9.98 12.88 11.79 14.13 14.69
Payout ratios
Dividend payout ratio (net profit) 26.34 38.94 27.90 25.63 25.86
Dividend payout ratio (cash
22.85 31.54 24.30 22.73 20.35
profit)
Earning retention ratio 71.47 57.84 69.34 69.35 58.19
Cash earnings retention ratio 75.51 66.39 73.64 73.40 70.91
Coverage ratios
Adjusted cash flow time total
0.51 0.03 0.06 0.04 0.37
debt
Financial charges coverage ratio 26.34 16.22 42.14 96.71 29.32
Fin. charges cov.ratio (post tax) 23.61 15.94 34.06 80.74 25.96
Component ratios
Material cost component (%
59.76 65.41 59.58 56.04 54.20
earnings)
Selling cost Component 14.03 13.80 12.24 9.92 11.62
Exports as percent of total sales 0.44 0.66 0.65 2.51 0.37
Import comp. in raw mat.
0.09 0.20 0.19 5.03 1.69
consumed
Long term assets / total Assets 0.53 0.58 0.59 0.62 0.61
Bonus component in equity
91.82 91.82 91.82 91.82 92.22
capital (%)

28
Annual Performance 2007-08
For the year ended 31st March 2008, the Company achieved a sales growth of 17.5%
on an expanded base arising from 27.5% growth in the previous year. Net Profit of the
Company increased 77.5 % to Rs 1,910 Mn compared with Rs 1,076 Mn in 2006-07.
Operating Margin increased by 307 basis points to 7.5%.

Exceptional items for the year include Rs 130.5 Mn towards amortisation of VRS
costs. Earnings per Share are Rs. 80 compared with Rs.45.1 last year The Company
witnessed all round growth in key categories with Biscuits recording sales of Rs.

29
23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn mark during
2007-08. This business has doubled in two years.
In an intensely competitive biscuit environment, all ³Power Brands² of the Company
recorded double digit growth, with Tiger and Good Day growing in excess of 20%.
The Company¹s innovation forays have successfully addressed new benefit clusters
and NutriChoice Digestive has claimed its position in the health and vitality space.
The Company continues to maintain its leadership edge in 6 out of 7 key product
segments, the only exception being Glucose.
The business continued to face inflationary pressure in key raw materials such as
wheat flour, refined palm oil, skimmed milk powder and other dairy products, as well
as energy costs. These were more than offset on the cost side through operational and
procurement efficiencies, productivity improvements, cost reduction programs and on
the revenue side through improved product mix and higher realisation, aided by
strong consumer off take.

britannia has an excellent track record of rewarding its shareholders. The company
has an uninterrupted record of distributing dividends for several decades. The
dividends declared over the last 10 years are as under:

Year Dividend Percentage

1996 40.00
1997 40.00
1998 50.00
1999 55.00
2000 45.00
2001 55.00
2002 75.00
2003 100.00
2004 110.00
2005 140.00
2006 150.00
2007 150.00
2008 180.00

30
Bonus History

Year Bonus Particulars

1961 1 equity share for every 2 shares held
1966 4 equity shares for every 10 shares held
1968 2 equity shares for every 3 shares held
1971 2 equity shares for every 3 shares held
1976 7 equity shares for every 10 shares held
1984 2 equity shares for every 5 shares held
1987 2 equity shares for every 5 shares held
1990 1 equity share for every 2 shares held
2000 1 equity share for every 2 shares held

Comparison with Competitors

31
 Last Price Market Cap. Sales Net Profit Total Assets
(Rs. cr.)
Turnover
GlaxoSmith Con 930.95 3,915.16 1,592.30 188.33 646.36
Britannia 1,565.55 3,740.12 3,127.11 180.40 861.92
Lotte India 525.00 197.99 170.96 -2.14 77.67
Heritage Foods 81.65 94.14 588.03 0.94 272.44
SKM Egg Product 18.10 47.66 123.90 10.50 82.15
Agro Dutch Ind 11.45 38.43 143.47 -32.05 482.41
Sita Shree Food 10.35 22.81 95.08 1.39 56.82

Balance sheet
------------------- in Rs. Cr. -------------------
GlaxoSmith Mavens Kwality
Britannia Nestle
Con Biotech Dairy
Mar '08 Dec '08 Dec '07 Mar '08 Mar '07

32
Sources Of Funds
Total Share Capital 23.89 96.42 42.06 10.99 18.20
Equity Share Capital 23.89 96.42 42.06 10.99 18.20
Share Application Money 0.00 0.00 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00 0.00 0.00
Reserves 731.92 376.93 604.29 3.39 1.99
Revaluation Reserves 0.00 0.00 0.00 0.00 0.00
Networth 755.81 473.35 646.35 14.38 20.19
Secured Loans 1.94 0.82 0.00 0.00 13.79
Unsecured Loans 104.16 0.00 0.00 0.00 0.85
Total Debt 106.10 0.82 0.00 0.00 14.64
Total Liabilities 861.91 474.17 646.35 14.38 34.83
GlaxoSmith Mavens Kwality
Britannia Nestle
Con Biotech Dairy
Mar '08 Dec '08 Dec '07 Mar '08 Mar '07
Application Of Funds
1,404.8
Gross Block 453.18 523.68 4.52 17.18
5
Less: Accum. Depreciation 212.19 651.85 297.65 0.39 10.28
Net Block 240.99 753.00 226.03 4.13 6.90
Capital Work in Progress 9.69 109.17 17.31 0.53 0.00
Investments 380.83 34.90 297.84 0.37 0.00
Inventories 301.53 434.91 194.82 5.95 17.91
Sundry Debtors 46.33 45.59 27.36 2.84 24.02
Cash and Bank Balance 43.54 12.66 32.17 0.10 0.51
Total Current Assets 391.40 493.16 254.35 8.89 42.44
Loans and Advances 163.22 162.67 62.15 1.17 16.96
Fixed Deposits 0.23 181.03 61.50 0.00 0.68
Total CA, Loans &
554.85 836.86 378.00 10.06 60.08
Advances
Deffered Credit 0.00 0.00 0.00 0.00 0.00
Current Liabilities 247.02 582.44 243.65 0.02 31.43
Provisions 100.65 677.32 29.17 0.69 0.69
1,259.7
Total CL & Provisions 347.67 272.82 0.71 32.12
6
Net Current Assets 207.18 -422.90 105.18 9.35 27.96
Miscellaneous Expenses 23.23 0.00 0.00 0.00 0.00
Total Assets 861.92 474.17 646.36 14.38 34.86
Contingent Liabilities 169.55 84.90 7.03 0.00 11.78
Book Value (Rs) 316.37 49.09 153.69 13.09 11.09

33
 Profit & Loss account
------------------- in Rs. Cr. -------------------
GlaxoSmith Mavens Kwality
Britannia Nestle
Con Biotech Dairy
Mar '08 Dec '08 Dec '07 Mar '08 Mar '07
Income
4,472.0
Sales Turnover 2,617.66 1,429.97 20.77 149.61
4
Excise Duty 29.80 143.39 122.09 0.00 0.00
4,328.6
Net Sales 2,587.86 1,307.88 20.77 149.61
5
Other Income 20.12 29.88 31.67 0.12 0.07
Stock Adjustments -17.05 31.11 27.34 0.25 6.81
4,389.6
Total Income 2,590.93 1,366.89 21.14 156.49
4
Expenditure
2,153.8
Raw Materials 1,546.74 471.61 0.00 141.75
5
Power & Fuel Cost 22.78 159.76 30.44 0.02 3.22
Employee Cost 90.53 314.58 154.94 0.14 0.86
Other Manufacturing
222.18 73.46 113.41 19.71 0.64
Expenses
Selling and Admin Expenses 382.26 736.73 270.50 0.27 1.11
Miscellaneous Expenses 74.00 81.40 32.03 0.06 0.37

34
Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00
3,519.7
Total Expenses 2,338.49 1,072.93 20.20 147.95
8
GlaxoSmith Mavens Kwality
Britannia Nestle
Con Biotech Dairy
Mar '08 Dec '08 Dec '07 Mar '08 Mar '07
Operating Profit 232.32 839.98 262.29 0.82 8.47
PBDIT 252.44 869.86 293.96 0.94 8.54
Interest 9.73 1.64 4.61 0.00 1.91
PBDT 242.71 868.22 289.35 0.94 6.63
Depreciation 29.08 92.36 43.49 0.09 0.89
Other Written Off 0.00 0.00 0.00 0.00 0.08
Profit Before Tax 213.63 775.86 245.86 0.85 5.66
Extra-ordinary items 18.64 0.00 0.02 0.00 0.00
PBT (Post Extra-ord Items) 232.27 775.86 245.88 0.85 5.66
Tax 41.26 238.74 82.46 0.30 1.93
Reported Net Profit 191.00 534.08 162.68 0.54 3.73
1,365.9
Total Value Addition 791.74 601.32 20.21 6.20
2
Preference Dividend 0.00 0.00 0.00 0.00 0.00
Equity Dividend 43.00 409.77 50.47 0.39 0.00
Corporate Dividend Tax 7.31 69.64 8.58 0.00 0.00
Per share data (annualised)
Shares in issue (lakhs) 238.90 964.16 420.56 109.92 182.00
Earning Per Share (Rs) 79.95 55.39 38.68 0.49 2.05
Equity Dividend (%) 180.00 425.00 120.00 3.00 0.00
Book Value (Rs) 316.37 49.09 153.69 13.09 11.09

35
 TEN YEAR FINANCIAL STATISTICS : 1999 - 2008
Rs.
million
As at / Year ended 31st March 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Assets employed
Fixed assets less Depreciation
1,353 1,306 1,588 1,632 1,481 1,283 1,338 1,516 2,144 2,507
& Amortisation
Investments 1,293 1,470 2,156 3,104 2,969 2,913 3,301 3,599 3,200 3,808
Net current assets 18 65 257 592 747 43 (485) 309 596 2,072
Miscellaneous expenditure - 122 163 217 260 463 342 161 256 232
2,664 2,963 4,164 5,545 5,457 4,702 4,496 5,585 6,196 8,619
Financed by
Equity shares 186 279 279 269 259 251 239 239 239 239
Reserves & Surplus 1,308 1,586 2,123 3,430 3,653 4,059 4,196 5,252 5,909 7,319
Loan funds 1,170 1,098 1,762 1,846 1,545 392 61 94 48 1,061
2,664 2,963 4,164 5,545 5,457 4,702 4,496 5,585 6,196 8,619
Profits and appropriations
10,30 11,69 13,32 14,51 13,49 14,70 16,15 18,17 23,17
Sales 26,177
1 8 5 0 1 5 4 9 1
Profit before Depreciation,
Amortisation 735 962 1,369 1,630 1,722 2,251 2,645 2,218 1514 2,723
and Tax
Depreciation and Amortisation 159 172 189 240 261 224 190 217 253 291
Profit before tax and
576 790 1,180 1,390 1,461 2,027 2,455 2,001 1,261 2,432
Exceptional items
Exceptional items - (19) (41) 1,201 12 (183) (252) 6 (77) (109)
Profit before tax * 576 771 1,139 2,591 1,473 1,844 2,203 2,007 1,184 2,323
Taxation 180 261 434 559 482 656 715 543 108 413
Profit after tax 396 510 705 2,032 991 1,188 1,488 1,464 1,076 1,910
Dividends 102 125 153 201 251 272 334 358 358 430
Tax on dividend 11 14 16 - 32 35 47 50 61 73
Debenture Redemption Reserve - - 47 14 18 - - - - -

36
Retained earnings 283 371 489 1,564 692 910 1,117 1,056 657 1,407

Cash flows
------------------- in Rs. Cr. -------------------
Mavens Mount GlaxoSmith
Britannia Nestle
Biotech Everest Con

Mar '08 Mar '08 Mar '08 Dec '08 Dec '08

Net Profit Before Tax 12 mths 12 mths 12 mths 12 mths 12 mths

Net Cash From Operating
232.26 0.84 -6.17 284.09 772.83
Activities
Net Cash (used in)/from
63.13 0.11 -10.23 130.67 723.57
Investing Activities
Net Cash (used in)/from
-130.31 -0.12 -69.84 23.38 -251.92
Financing Activities
Net (decrease)/increase In
53.08 0.00 71.23 -54.57 -375.22
Cash and Cash Equivalents
Opening Cash & Cash
-14.10 -0.01 -8.84 99.48 96.43
Equivalents
Closing Cash & Cash
Equivalents

The Directors present their Annual Report together with the Statement
of Accounts for the year ended March 31, 2008.

37
1. FINANCIAL RESULTS

Rs. Mn
Particulars Year Year
ended 31st ended 31st
March 08 March 07

Gross Turnover and Other 26,679 23,487

Income
Profit before Finance Cost, 2,820 1,603
Depreciation & amortisation
and Exceptional items
Finance Cost 97 89
Profit before Depreciation 2,723 1,514
and Exceptional Items
Depreciation and 291 253
Amortisation
Exceptional items 109 77
Profit before tax 2,323 1,184
Less: Tax 413 108
Net Profit 1,910. 1,076
Add: Profit brought forward 600 500
Profit available for 2,510 1,576
appropriation
Less: Dividend on Equity 430 358
Shares
Less: Tax on Dividend 73 61
Less: Transfer to General 1,407 557
Reserve
Balance carried forward to 600 600
Balance Sheet

2. COMPANY PERFORMANCE

38
 For the year ended 31st March, 2008, your Company achieved a sales growth of
17.5% on an expanded base arising from 27.5% growth in the previous year. Net
Profit of the Company increased 77.5% to Rs. 1,910 Mn compared to Rs. 1,076 Mn in
2006-07. Operating margin increased by 307 basis points to 7.5%.

The Company witnessed all round growth in key categories with Biscuits recording
sales of Rs. 23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn
mark during 2007-08. This business has doubled in two years.

In an intensely competitive biscuit environment, all Power Brands of the Company

recorded double digit growth, with Tiger and Good Day growing in excess of 20%.
Your Companys innovation forays have successfully addressed new benefit clusters
and Nutri Choice Digestive has claimed its position in the health and vitality space.
Your Company
continues to maintain its leadership edge in 6 out of 7 key product segments, the only
exception being Glucose.

The business continued to face inflationary pressure in key raw materials such as
wheat flour, refined palm oil, skimmed milk powder and other dairy products, as well
as energy costs. These were more than offset on the cost side through operational and
procurement
efficiencies, productivity improvements, cost reduction programs and on the revenue
side through improved product mix and higher realisation, aided by strong consumer
off take.
Exceptional items for the year include Rs. 130.5 Mn towards amortisation of VRS
costs. Earnings per share is Rs. 80 compared to Rs. 45 last year.

3. DIVIDEND

39
The Board of Directors is pleased to recommend a dividend of 180% onthe paid up
equity share capital of the Company, which works out to Rs.18 per share, for
consideration and approval by the shareholders at theAnnual General Meeting. The
total payout amounts to Rs. 503 Mnncluding dividend distribution tax of Rs. 73 Mn.

4. BUSINESS OUTLOOK
After several years of strong GDP growth, the Indian economy is witnessing a
slowdown. We enter the new financial year, in the midst of a serious food crisis
globally, which has led to high inflation in all staples like wheat, rice, corn, pulses etc.
We expect this supply constrained inflationary environment to dampen industry
growth in the coming year.
In this scenario, your Company will continue to pursue a strategy to identify and
exploit profitable growth opportunities by increasing the consumer preference and
consumption of Britannia brands, leveraging the three growth vectors of brand,
geography and channel. The key themes pursued by your Company are to increase
brand relevance and
differentiation, improve availability, structurally building capability and efficiencies
to be cost competitive.
The overall level of brand and infrastructure investment has increased with both
national and regional players pursuing aggressive growth in an increasingly
competitive market.
From a consumer perspective, several new dimensions have opened up as others have
gained strength, spurred by lifestyle and life stage choices. Your Company will
continue to focus on providing a range of enjoyable and healthy choices to consumers.

5. BRAND INVESTMENT

All Power Brands - Tiger, Good Day, Milk Bikis, Treat, MarieGold, 50:50 and
NutriChoice saw significant investment in increasing preference and purchase and
secured double digit growth.

Your Company also introduced several new and renovated offerings in Tiger, Good
Day, Treat and MarieGold. The health and nutrition platform was buttressed by Tiger
Banana with iron-zor, fortified Milk Bikis, renovated MarieGold and NutriChoice

40
Digestive. To tap the more indulgent consumers, your Company launched Good Day
Classic Cookies,
while continuing to roll out individual consumption packs at the highly affordable Rs.
5 price point.

The Bread, Cake and Rusk portfolio was strengthened with the successful relaunch of
Breads, fortified with vitamins and minerals, positioning them firmly as the healthy
start to your day. This innovation combined with relevant consumer activation in key
markets has seen a 30%+ growth in the Bread, Cake and Rusk business.

6. INTELLECTUAL PROPERTY RIGHTS (IPR)

Last year we reported the creation of the IPR Committee of the Board to monitor and
direct the Companys IPR. The key issue addressed by the Committee was the
unauthorised use by Generate Biscuit, a subsidiary of Groupe Danone, of your
Companys Tiger brand in five countries and registration in a large number of other
countries. Based on legal advice, your Company initiated proceedings against
Generale Biscuit, and its

Associates in Singapore and Malaysia. Further, during the year, Groupe Danone
divested its biscuit business worldwide (with the exception of India and Latin
America) including Generale Biscuit, in favour of M/s Kraft Inc. USA and your
Company continues to pursue the return of its Tiger IPR under the direction of the
Committee.

7. MANUFACTURING OPERATIONS

Following the significant addition to manufacturing capacity in the previous year, the
focus in 2007- 08 was to increase responsiveness and cost effectiveness of the supply
chain.

Several technology innovation projects to secure cost and quality advantages and
support introduction of differentiated products were completed. New technology

41
based products were successfully manufactured using equipment designed internally.
During the year your Company filed for 2 patents.

Uttarakhand factory continued to perform at high efficiency levels and reached full
capacity utilisation of 5,000 Tonnes/month. Overall conversion costs were reduced
due to efficiency and productivity improvements in manufacturing. Capacity for
Bread, Cakes and Rusks was also expanded with a greenfield, state of the art, cake
manufacturing facility in Assam.
With a view to optimise capacities and manufacturing cost, your Company, in April
2008, offered a Voluntary Retirement Scheme (VRS) to workmen at its Chennai unit.
The same was accepted by all the workmen and consequently manufacturing
operations have been suspended.

8. QUALITY STANDARDS

Notable progress was made in quality, the drive for ongoing quality training,
including the development of an e-learning portal. The vendor quality improvement
program was intensified and the continuous grinding in of quality practices at all
manufacturing units formed a key plank of building a quality culture. A retail audit
system was rolled out to monitor quality of products at point of sale.

9. INFORMATION TECHNOLOGY

Several initiatives were undertaken to enhance business performance, enabled by IT

infrastructure and processes. These included availability of timely and granular
information to improve planning and performance measurement in manufacturing,
logistics, distribution, sales and quality.

Information protection infrastructure and systems were significantly strengthened.

With the objective of securing the best IT competencies, higher service levels for
users, better infrastructure management and inflation proofing cost, IT was outsourced
in its entirety to Hewlett Packard (HP) with a lock in period of 3 years.

10. ENVIRONMENT AND SAFETY

42
The drive to reduce energy consumption through process innovations and technology
upgradation continued during the year. Burner efficiency improvement was achieved
through use of magnetic resonance energisers for fuel.

Recycling of the waste heat was extended to manufacturing locations as also the
usage of alternate energy sources like gas which was extended wherever available,
including Delhi factory as well as contract packers.
Your Company has filed an application for availing carbon reduction benefits under
the Clean Development Mechanism of the Ministry of Environment and Forests,
Government of India as part of the United Nations Framework for Climate Change
Control (UNFCCC) for the Delhi factory.

11. CORPORATE SOCIAL RESPONSIBILITY

The partnership your Company has created with Global Alliance for Improved
Nutrition (GAIN) and the Naandi Foundation to supply iron fortified Tiger biscuits to
supplement the Mid-Day Meal program in schools, has been recognised as a unique
program globally by GAIN. This prompted the World Bank Institute to write a case
study and your Company was invited to make a commitment to the Clinton Global
Initiative, a non-partisan catalyst for action that brings together a community of global
leaders to devise and implement solutions for some of the worlds pressing challenges
like nutrition. Iron deficiency among Indian children is a key cause of school dropouts
as well as decreased productivity. Based on the experience from the Britannia-GAIN-
Naandi partnership, your Company created a new offering for all consumers - Tiger
Banana, a delightful banana biscuit fortified with vitamins and minerals.

In keeping with its core essence of Swasth Khao Tan Man Jagao, your Company
constantly strives to find sustainable opportunities to drive home the message of
nutrition and good food habits among children at the right age. Britannia is committed
to help secure every childs right to growth and development through good food
everyday. Its largest power brand, Tiger, is also being rolled out, fortified with iron.

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Your Company was also the first in the industry to remove trans fat from most its
biscuits as yet another meaningful step in offering products that are both healthy and
enjoyable.
12. PENSION

The Britannia Industries Limited Covenanted Staff Pension Fund (Trust) received a
Show Cause Notice from the Commissioner of Income Tax, Kolkata, asking the Trust
to show cause why the recognition granted to the Trust should not be withdrawn for
refund of excess contribution of Rs. 121.2 Mn to the Company. The matter has been
dealt with in note No. 29 of Schedule T to the Accounts, which is self explanatory.

13. ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE

Details of energy conservation, technology absorption, foreign exchange earnings

and outgoings in accordance with the provisions of clause (e) of sub-section (1) of
Section 217 of the Companies Act, 1956, read with the Companies (Disclosure of the
Particulars in the Report of Board of Directors) Rules, 1988, are given as an annexure
to the Directors Report.

14. CONSOLIDATED FINANCIAL RESULTS

Your Company has prepared Consolidated Financial Statements in accordance with

Accounting Standard 21(AS-21) issued by the Institute of Chartered Accountants of
India. The Consolidated Statements reflect the results of the Company with that of its
Subsidiaries, Joint Ventures and Associates. As required by Clause 32 of the Listing
Agreement with the Stock Exchanges, the Audited Consolidated Financial Statements
together with the Auditors Report thereon are annexed and form part of this Annual
Report.

The Consolidated turnover and net profits of the Company for the year ended 31st
March, 2008 were Rs. 28,099 Mn and Rs. 1,774 Mn respectively.

15. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

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Your Directors present herewith a broad overview of the operations and financials of
its Subsidiaries, Joint Ventures and Associates. Subsidiaries
Investment and Holding Companies
M/s Boribunder Finance and Investments Private Limited (Boribunder), M/s Flora
Investments Company Private Limited (Flora) and M/s Gilt Edge Finance and
Investments Private Limited
(Gilt Edge) form the Investment Associates of your Company. During 2007-08, M/s
Boribunder Finance and Investments Private Limited (Boribunder) became a wholly
owned subsidiary of your Company.
The combined revenue and loss of investment companies for the year ended 31st
March, 2008 was Rs. 24 Mn and Rs 14 Mn respectively. The losses are due to
provision for diminution in value of investments.
Further, pursuant to Section 4 of the Companies Act, 1956, the following companies
engaged in manufacture of biscuits at various locations are also deemed to be
subsidiaries of your Company. The Gross Income and Net Profit of the said
subsidiaries during 2007-08 are as under:

Name of Subsidiary Gross Net Profit/ Income (Loss)

Rs.Mn Rs.Mn

International Bakery 106 3.5

Products Limited, TC
Balam, Tamil Nadu
J B Mangharam Foods 98 (7.4)
Private Limited, Gwalior
Manna Foods Private 30 1.6
Limited, Bangalore
Ganges Vally Foods 96 0.6
Private Limited, Kolkata
Sunrise Biscuit 83 (0.3)
Company Private Limited, Guwahati
Britannia and Associates (Mauritius) Private Ltd.
Britannia and Associates (Mauritius) Private Ltd, (BAMPL) a Company formed in
Mauritius is the holding Company of Britannia and Associates (Dubai) Private Co.

45
Ltd, (BADCO) a Jebel Ali Free Zone Company, which in turn holds strategic
investments in Strategic Food International Co. LLC, Dubai and Al Sallan Food
Industries Company SAOG, Oman.

The combined revenue and loss of the holding companies for the year ended 31st
December, 2007 was USD 0.62 Mn and USD 0.77 Mn respectively.

Joint Ventures
Britannia New Zealand Foods Private Limited (BNZF) BNZF, the Joint Venture
with M/s Fonterra Co-operative Group Limited of New Zealand is engaged in the
business of dairy products, comprising cheese, skimmed milk powder, butter and
ghee. BNZF brands are available nationally and lead the cheese segment. For the year
ended 31st March 2008, BNZF recorded a turnover of Rs. 1,424 Mn and incurred a
net loss of Rs. 51 Mn compared to a turnover of Rs. 1,186 Mn and a net loss of Rs.
112 Mn in the previous year.
Strategic Foods International Co. LLC, Dubai (SFIC) Your Company acquired 70%
stake in SFIC in March 2007. For the year ended 31st December, 2007, SFIC
recorded a turnover of AED 104.02 Mn and operating profit (before finance charges
and depreciation) of AED 6.48 Mn and Net Loss of AED 3.14 Mn. During 2007 the
business
encountered severe cost challenges due to unprecedented increases in market prices of
all key commodities like flour, skimmed milk powder, etc. The Company has
implemented several cost effectiveness programs which, together with efficient
buying, managed to contain part of the input cost inflation.

Al Sallan Food Industries Company SAOG, Oman (Al Sallan) Your Company
acquired 65.5% stake in Al Sallan in March 2007. Al Sallan recorded a turnover of
RO 3.24 Mn for the year ended 31st December, 2007.

Both these acquisitions have given your Company the opportunity, infrastructure and
competence to effectively compete in the rapidly growing markets of the Middle East.

Daily Bread Gourmet Foods (India) Private Limited (Daily Bread) Daily Bread,
another acquisition made last year, is engaged in the business of premium bakery

46
products. The Company registered a growth of 47% last year. It has continued to
focus on expanding its retail presence as well as drive institutional business through
addition of new customers. As a part of this strategy, new manufacturing facilities
were set up in Delhi and Hyderabad while expanding capacity at Bangalore.

Welfare Companies
M/s Britannia Employees General Welfare Association Private Limited, M/s Britannia
Employees Educational Welfare Association Private Limited and M/s Britannia
Employees Medical Welfare Association Private Limited are the three other
associates of your Company.

These are companies limited by guarantee and have no share capital. These have
been set up for general, educational and medical welfare of the employees of your
Company.

16. CORPORATE GOVERNANCE

In accordance with Clause 49 of the Listing Agreement with the Stock Exchanges, a
separate report on Corporate Governance along with the Auditors Certificate on its
compliance is attached to this Report.
17. DIRECTORS
Consequent to taking over as Chairman of the Finance Commission constituted
by the Government of India, Dr. Vijay Kelkar resigned as Director of your Company
with effect from 31st December, 2007. Your Board records its deep gratitude and
appreciation for the various contributions made by Dr. Kelkar during his association
with the Company.

Mr. Georges Casala resigned as a Director of your Company with effect from 28th
May, 2008. Your Board records its deep gratitude and appreciation for the various
contributions made by Mr. Casala during his association with the Company.
Your Board appointed Mr. Philippe Loic Jacob as an Additional Director at its
meeting on 28th May, 2008. Mr. Jacob will hold office upto the date of the
forthcoming Annual General Meeting of the Company.

47
In accordance with the provisions of the Companies Act 1956 and the Articles of
Association of the Company, Mr. S S Kelkar, Mr. Pratap Khanna, Mr. Nusli N Wadia
and Mr. Francois-Xavier Roger, Directors, retire by rotation at the forthcoming
Annual General Meeting and are eligible for reappointment.

18. PARTICULARS OF EMPLOYEES

Information in accordance with sub-section (2A) of Section 217 of the Companies

Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, and
forming part of the Directors Report for the year ended 31st March, 2008 is also given
in the annexure to this report.
19. AUDITORS
M/s. Lovelock & Lewes retire in accordance with the provisions of the Companies
Act, 1956. They have indicated their willingness to continue in office and are
recommended for reappointment as the Companys Auditors for the ensuing year.
20. DIRECTORS RESPONSIBILITY
Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956, your
Directors, based on representations from the Operating Management, confirm that:
I. In the preparation of annual accounts, the applicable accounting standards have
been followed and there are no material departures;
II. They have, in selection of the accounting policies, consulted the statutory auditors
and applied these policies consistently, making judgments and estimates that are
reasonable and prudent, so as to give a true and fair view of the state of affairs of the
Company as on 31st March, 2008 and of the profit of the Company for the year ended
31st March, 2008;

III. They have taken proper and sufficient care, to the best of their knowledge and
ability, for the maintenance of adequate accounting records in accordance with the
provisions of the Companies Act, 1956 for safeguarding the assets of the Company
and for preventing and detecting fraud and other irregularities;
IV. They have prepared the annual accounts on a going concern basis.

21. ACKNOWLEDGEMENTS

48
The Directors would like to thank all stakeholders, namely, customers, shareholders,
dealers, suppliers, bankers, employees and all other business associates for the
continuous support given by them to the Company and its management.

49
Top competitors of company

 HERITAGE

 PRIYAGOLD

 PURE FOOD

 PARLE-G

 NESTLE

 GALXOSMITH CON

Status of the competitors

Last Price Market Cap. Sales Net Profit Total Assets

(Rs. cr.)
Turnover
GlaxoSmith Con 930.95 3,915.16 1,592.30 188.33 646.36
Britannia 1,565.55 3,740.12 3,127.11 180.40 861.92
Lotte India 525.00 197.99 170.96 -2.14 77.67
Heritage Foods 81.65 94.14 588.03 0.94 272.44
SKM Egg Product 18.10 47.66 123.90 10.50 82.15
Agro Dutch Ind 11.45 38.43 143.47 -32.05 482.41
Sita Shree Food 10.35 22.81 95.08 1.39 56.82

Generally all organizations have competitors in the market. A particular organization

always comprises with other same business and according to market share we clarify
the brand of product is giving more challenge to my product.
I found many products which can be compared with Britannia Biscuit. As a
conclusion I found that particularly in my provided area Britannia is really doing well
and its performance is on surprising level. During the field work and after intensive

50
study it was found that main competitor of PRIYAGOLD biscuits is BRITANNIA as
the market leader.
In my provided area the share of the market is as follows.
BRITANNIA 48%
PRIYAGOLD 20%
PARLE-G 16%
PURE FOOD 8%
OTHERS 8%

When we compared with other businesses then we follow the quality, price,
distribution system, promotional strategy etc. of the competitors Britannia in this area
is doing well.

So this is the comparison with other biscuits brands. According to our findings we
found that BRITANNIA is the market leader followed by BRITANNIA biscuits.
These two biscuits companies the lion's share in the 2,200 crore biscuits industry.

Expert views:

Britannia Industries-the market leader in the biscuits industry with a 34% share in
value terms-is back on the stock market analyst’s radar. After having been through
uncertain times, especially at the management level, analysts seem to be glad at the
emerging clarity. This is despite the biscuit industry facing intense competition and
players like ITC and Priyagold taking the battle to Britannia. Overall, in volume
terms, the company was impacted as there were supply constraints in the second half
of FY08. Hence, when the industry grew by around 7% (in volume terms) in FY08,

51
Britannia recorded a 2.8% growth. This was largely due to reduction in pack sizes
across brands.

As players fight it across segments, Britannia has been concentrating on the premium
category where it recorded more than 20% growth in Goodday and Tiger brands in
FY08. It will work on extending the Tiger brand with new variants like Tiger Banana,
Tiger Cream, while also introducing newer Goodday variants. Analysts at Motilal
Oswal Research expect more lifestyle products, focus on modern retail and cost
efficiencies ahead for Britannia. Focus on the premium segment also allows the
company to be flexible on pricing, thereby protecting it against rising commodity
prices. Recently, it undertook a 2-12% price hike across brands by way of pack size
reduction and absolute price increases in order to ward off the continued rise in prices
of wheat, vegetable oil and sugar. It reported a 350bp increase in gross margins and
320bp increase in EBITDA margins for FY08.

Reduction in pack sizes helped here, as it cut material costs directly and also saw a
380bp decline in excise duty. The fact that the company is sitting on a treasure trove
in the form of its real estate assets also attracts analysts. However, these investments
do not directly translate into earnings for Britannia. Also, analysts are now looking at
the ability to deliver price hikes on a consistent basis, and maintain margins as well,
as its working capital requirements have grown by three times in FY08. This, if not
stemmed, could have a serious dent on net earnings.

Product News

19 June 2009

We've made some changes to our mortgage range this week. Visit our mortgage
section to get a clear idea of what we can do for you.

We've also introduced two new fixed rate ISAs to expand our ISA range. Please be
aware that the products are limited issues and may be withdrawn at any time.

52
Of course it's not just our new products we're proud of! We're very proud of our
continuing range. Why not take a look at what we have to offer in

SWOT ANALYSIS

Strength Weakness
• Fulfill one of our Basic • Decreases nutritional value
Requirement among Air , Water , • Increases the cost of food product
Food, Shelter • Industry and technology requires
• Widely accepted in all high investment
Generations • Regular usage of processed food
• Easily available in various forms can cause alteration in health
• Provide good Instant Remedy for

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 hunger in the form of readymade
food
• Preserves the non seasonal food
and makes it available all
throughout the year
Opportunities
• Increase economy of India Threats
• Generate employment opportunity • Many companies are result

• Good quality of Goods oriented

• Provide competition to foreign • Increase in pollution

companies • Sometimes provide poor quality

• Improve living standard of product for more profit

• Provide goods to nation at • Lack of technology

cheaper rate • Unable to utilize all the resources

• Inflow of foreign reserve and efficiently

funds for the govt.(taxes)

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 EXPORTS OF THE COMPANY

• USA
• GHANA
• SAUDI ARABIA
• KUWAIT
• BAHRAIN
• OATAR
• SEYCHELLES
• SINGAPORE
• OMAN
• UAE

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 MAJOR FINDINGS

1. Britannia is one of the biggest brand & permanent food brand in India.

2. Britannia was established with an investment of Rs.295 in Kolkata.

3. Britannia Company preserves the non seasonal food and makes it

available all throughout the year.

4. Company distributed dividend percentage increases Rs.40.00 to

Rs.180.00.

5. A large part of the company’s production of service biscuits.

6. In 1983 company sales cross Rs.100 Crores.

7. Britannia Company having high volume assets among its competitors.

8. Britannia Company one amongst top 200 small companies of the world.

9. Britannia company growth has been increasing year by year.

10. The company maintain issued capital & paid up capital in 1988 50 2004

changes but in the year of 2005 to 2008 company maintain some

standard.

11. Company may cause to increase in pollution.

12. Company increases the cost of food product.

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

14. Company sometimes provides poor quality of products for more profit.

15. Company some time unable to utilize all the resources efficiently.

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 SUGGESTIONS

1. Britannia Company must maintain good environment condition.

2. Company maintains proper usage of raw material value.

3. The company has to concentrate on nutritional value by that they will

attract more customers.

4. The company has to take control measures to reduction of cost.

5. Company must use the recent technology for increases the sales volume.

6. Company must decrease the cost of food product.

7. Company must follow the some measures to decrease in pollution.

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 CONCLUSION

Britannia is one of the biggest biscuit company in India. Britannia

company products are popular any where in India. Company having high

volume assets among its competitors. Company preserves the non-seasonal

food and makes it available all throughout the year. Company distributed

dividend and company growth have been increases year by year. Company

has well dedicated management team to efficiently lead the company

always to the next level. So, Britannia to hold their leadership positions in

the market for long term. Finally Britannia Company is the best company

when compare to other companies.

Reference:

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• www. BRITANNIA.com

• www.moneycontrol.com

• www.financialexpress.com.

• www.wikipedia.com

• www.indianfinancelevel.com

• www.companyreviews.com

• www.webindia.com

• www.businesstimes.com

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