Professional Documents
Culture Documents
BHARATI VIDYAPEETH DEEMED UNIVERSITY SCHOOL OF DISTANCE EDUCATION Academic Study Center - BVIMR, New Delhi An ISO 9001:2008 Certified Institute Reaccredited Grade A University by NAAC
[1]
ACKNOWLEDGEMENT
This is to certify that I Rachit Chhabra had completed the Project titled Britannia industries Ltd under the guidance of Ms.Himani Grover in the partial fulfillment of the requirement for the award of degree of BBA of BVDU, SDE, Academic Study Center BVIMR, New Delhi. This is an original piece of work & I had neither copied nor submitted it earlier elsewhere.
Course : BBA
Dated :
[2]
PREFACE
A hallmark of any premier business school is its willingness and ability to constantly explore and implement new ideas and practices in the field of management education. Institute constantly reorients their programs in order to keep abreast of changing development. The initial interaction between school students and industry takes place when the students undergo project is usually for knowing the process for recruitment, selection, industrial relations & training of that institution. It is often the exposure to corporate culture that a student receives, particularly true for students without prior work experience.
[3]
CONTENT
Unit 1 1.1 1.2 1.3 Topic Intoduction of the company Introduction About the company Ownership pattern and organizational Sructure 1.4 1.5 1.6 2 2.1 2.2 2.3 2.4 2.5 3 3.1 Production Layout Orgnizational policies Administrative Code Industrial Analysis Overview of the industry Current issues of the company Key Competitors PESTAL analysis Porter 5 force model Marketing Strategies Products of the company 32-45 19-31 Page no 6-18
[4]
3.2 3.3 3.4 3.5 4 4.1 4.2 4.3 4.4 5 5.1 5.2
4 Ps of the company STP analysis Distribution Channel Promotional Strategies Finalcial Analysis Finalcial analysis Ratio analysis Balance sheet Balance sheet analysis Key learnings and recommendations Market growth SWOT analysis Findings Conclusion Suggestion Bibliography 57 58 59 60 53-56 46-52
[5]
CHAPTER -1
Introduction to BRITANNIA INDUSTRIES LTD.
[6]
1.1 INTRODUCTION
The story of one of India's favourite 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. 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 MaskaChaska became India's most successful product launch. In 2002, Britannia's New Business Division formed a joint venture with Fonterra, the world's second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision and accelerating
[7]
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.
[8]
[9]
1.3.1 Shareholding pattern - Britannia Industries Ltd.. Holder's Name Other Companies Foreign Promoter General Public Foreign Institutions N Banks Mutual Funds Financial Institutions No of Shares 2213477 60868345 20649346 16297739 9956714 9445274 % Share Holding 1.85% 50.96% 17.29% 13.64% 8.34% 7.91%
% SHARE HOLDING
OTHERCOMPANIES FOREIGN INSTITUTION OTHERS 0% 2% 8% 8% 14% 51% 17% FOREIGN PROMOTER NBANK MUTUAL FUNDS GENERAL PUBLIC FINANCIAL INSTITUION
[10]
Name Mr. Nusli Neville Wadia Ms. Vinita Bali Mr. A.K.Hirjee Dr. Ajai Puri Mr. Avijit Deb Mr. Jeh N Wadia Mr. Keki Dadiseth Mr. Nasser Munjee Mr. Ness Nusli Wadia Mr. Nimesh N Kampani Mr. Pratap Khanna Mr. S.S.Kelkar Dr. Vijay L. Kelkar
Designation Chairman Managing Director Director Director Director Director Director Director Director Director Director Director Director
MIXING
Mixing starts with sifting flour with help of vibratory sifter .Flour is then collected in bowl and then weighed .All ingredient are then added in bowl .Ingerients are flour , sugar ,fat ,salt , yeast ,gms powder,sodium stearoyl lactilate, smp solution ,bio-bake , Improvers,ammonium cholride , ascorbic acid , cystiene ,pot.bromate,calcium propianate and aceticacid .These are added in std proportion as per requirement .After addition of all ingredients bowl is moved to spiral mixer where is done. Water is added in different quantities. Mixing time depends on quality of flour in general mixing time can vary from 6- 12 min . under mixing and overmixing can have direct impact on dough consistency. Dough quality can be checked with stretching the dough. dough temperature is maintained between 80 deg f - 82 deg f .
[13]
DIVIDER
Dough is cut into two equal dough piece .Its a mechanical device which uses a common crank to cut , push and drop dough piece through divider to conveyor . Volume of the dough piece can be adjusted at divider. Divider is defined as no of dough piece per min.
HANDER-UP
From divider the dough piece moves to hander up which is mechanical deviceconical in shape on which dough piece takes curvelinear path .It has got blower attached to it which continuously provides air on the path. Basic function of hander up is to give dough piece spherical shape and remove moisture from surface from dough piece .
INTERPROOVER
Dough pieces are then transfered to buckets of interproover .Here dough piece are allowed to travel for 5- 6 min .This helps in relaxation of dough as it would have stress due to mechanical action on it at divider .
MOULDER
It has three set of roller. The dough piece is allowed to pass through these rollers. Now dough piece are slightly flattened.
PRESSURE BOARD
Dough pieces are turned and fed into pressure board where it takes cylindrical shape. Air is passed through the board.
FINAL PROOVER
These dough pieces are then carried to platform where these lobes are twisted and kept in moulds, two lobes are twisted in one mould box as per wt required like 400 gms or 800gms loaves . Mould box are greased prior to lobes being put into. Final proover has arrangement for steam which spreads uniformly in entire chamber.Temperatures at final proover is maintained between 36-38deg c.Humidity and temperature are maintained so as to get maximum of yeast activity .Precautions are taken to see if there is over or under development of dough . Speed can be varied at final proover. Dough should rise 3/4 th of the mould .vol of mould is 1320cc for
[14]
400gm and 2700cc for 800 gm. loaves. Travel of trays is longitudinal in swing tray type plant where as in contray type it is vertical. Prooving time =75 min. Depending upon design we can define capacity of final proover as cap/cycle: no of loaves .no of racks x no of moulds box per rack x no of mould in each box. After dough has been developed these mould box are then transferred manually to baking oven
[15]
Maintaining ethical standards, including appropriate accounting controls; Identify, surface and resolve ethical issues with great speed; Corporate assets (physical and intellectual) must not be used for personal benefit; Exercise good judgment and standards of good taste when creating company records, including e-mail;
Maintain company records accurately and retain them in accordance with law.
2. Workplace Responsibilities
Being committed to fair employment practices; Being committed to a workplace free from drugs and any kind of harassment or intimidation of employees;
Being committed to the safety of our employees; Being committed to discipline at workplace; Compliance with appropriate laws and internal regulations.
Treating customers, suppliers and competitors fairly; Maintaining high standards of quality; Speeches, media interviews, and other public appearances in connection with Britannia must first be approved internally;
[16]
Preparing accounts accurately and maintaining records; Ensuring not to use unfair and misleading statements when marketing Britannia products and services;
Accepting and giving gifts is not permitted, except as governed by the policy laid down herein.
4. Privacy / Confidentiality
Protect proprietary and confidential information at all times in accordance with applicable law; Keep customer information secure at all times, as a sacred trust given to the company by our customers;
Trading in the securities of Britannia or any other company while in possession of "inside" information is illegal; Avoiding real or perceived conflicts of interest in areas including investments or outside business activities, among others.
Catering to the national interest Committed to be a good corporate citizen The company prohibits any payment of bribes.
[17]
APPROVALS
The appropriate Principal Managers must review and approve in writing any circumstance requiring special permission, as described in the Code. Copies of these approvals should be maintained by the company and made available to auditors or investigating authorities. Waivers of any provision of this Code must be approved by the Board of Directors or its designated committee.
MONITORING COMPLIANCE
Employees must take all responsible steps to prevent a Code violation. Employees should report suspected Code violations to their manager or higher level of management, or to the corporate Legal and Internal Audit Departments. In the case of potential criminal violations, employees should inform the Compliance Officer.
INVESTIGATIONS
The responsibility for administering the Code, investigating violations of the Code and determining corrective and disciplinary action rests jointly with the Chief Executive Officer,
[18]
Chief Financial Officer and Compliance Officer, alongwith the Audit Committee of the Board of Directors. The Compliance Officer may, with the assistance of the company's Internal Audit and Legal Departments, conduct or manage investigations as deemed appropriate. They will work together with the employee's managers to recommend corrective and disciplinary actions for presentation to the Chief Executive Officer and the Chief Financial Officer. For more information on the procedures that generally will be followed in the case of potential Code violations, please refer to the Procedural Guidelines for the Code of Business Conduct. If allegations involve criminal conduct, employees should seek guidance from the Compliance Officer before engaging in any inquiries. The Chief Financial Officer will report Code violations and the corrective actions taken to the Audit Committee of the Board of Directors.
DISCIPLINARY ACTIONS
The company strives to impose disciplinary action for each Code violation that fits the nature and particular facts of the violation. The company uses a system of progressive discipline. The company generally will issue warnings or letters of reprimand for less significant, first-time offenses. Violations of a more serious nature may result in suspension without pay, demotion, loss or reduction of bonus or option awards, or any combination thereof. Termination of employment generally is reserved for conduct such as theft or other violations amounting to a breach of trust, or for cases where a person has engaged in multiple violations. Violations of this Code are not the only basis for disciplinary action. The company has additional policies and procedures governing conduct.
[19]
[20]
[21]
increasing and meaningful array of choices to them After several years of strong GDP growth, the Indian economy is witnessing a slowdown. In the new nancial year, in the midst of a serious food crisis globally, which has led to high ination in all staples like wheat, rice, corn, pulses etc. They expected the supply constrained inationary environment to dampen industry growth in the coming year. In this scenario, Company continues to pursue a strategy to identify and exploit protable 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 ef ciencies 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. The Company will continue to focus on providing a range of enjoyable and healthy choices to consumers. This industry contributes to 6.3 percent of the GDP and about 13 percent to export production.The food processing industryis expectedto witness a growth of 10 per cent in the recent years to come. The biscuit market recorded double digit growth in 2010 and this is likely to sustain in the coming year even though volatile commodity prices may impact margins. The food processing sector attracted US$ 130 million of foreign direct investment(FDI) in the first eight months of the fiscal 2011 as compared to total FDI of US$ 1.2 billion. Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010, India needs around US$ 28 billion of investment in the food-processing industry. Vision 2015 was announced by the Government of India, which suggested the strategy to ensure faster growth of the food processing sector.
[23]
2.2 Current issues of BRITANNIA a) Britannia Industries Ltd said it is in the process of reviewing the pricing structure
"Price is a dynamic variable and we are continuously monitoring the situation," Britannia Industries MD and CEO Vinita Bali said when asked whether the company was planning to increase product prices. Bali said the company plans to invest Rs 200 crore across the country in the current fiscal. She said the company plans to enter the breakfast segment by offering a mixed pallete ranging from 'upma' to porridge.
They said they expect their Consumer universe to post ~18.3% revenue growth and 18% PAT growth in 3QFY12. EBITDA is likely to grow 20% - margin pressures for Asian Paints, Pidilite, Dabur and GSK Consumer will be compensated by low base effect in Britannia, Colgate and improved margins in Hindustan Unilever (HUL) and ITC. Excluding the impact of acquisitions, sales would increase by 18%, EBITDA by 19% and PAT by 17%. They expect ITC to post 17%
[24]
sales growth (6.5% cigarette volume growth) and 18% PAT growth; HUL's sales are likely to grow 17.4% (volume growth of 8.4%), with EBITDA margin expanding 40bp to 14.5%.
c) Britannia Industries Issues "Q3 Results On Feb 10, 2012" Press Release On BSE
Britannia Industries Ltd has informed BSE that a meeting of the Board of Directors of the Company will be held on February 10, 2012, inter alia, to consider and approve the audited financial results of the Company for the quarter ended December 31, 2011 (Q3).
[25]
2.3 Key competitors 1. India tobacco corporation ltd (ITC) 2. Parle india ltd 3. Surya foods and agro ltd
[26]
[27]
[28]
2.4.2 Social analysis Britannia & Navjyoti Together for Fighting Iron Malnutrition
Sustainability and public health relevance are key issues for all activities under Corporate Social Responsibility. The projects need to result in short and long term public health implementation. The Navjyoti project on Fighting Iron Malnutrition took off exactly with this objective
[29]
wherein our initiatives were focused on information transfer in the area of Iron Nutrition, Personal hygiene & Prevention of hook worm infection along with iron supplementation through fortified biscuits. During the health camp organized jointly by Britannia & Navjyoti at the beginning of the year 2009, it was evident that most of the children suffered from iron deficiency anemia with hemoglobin levels ranging between 5.5 to 11g.The supplementation of iron fortified Tiger biscuits in the mid-day meal program for three months indeed proved the public health relevance.
[30]
The model of pure competition implies that risk-adjusted rates of return should beconstant across firms and industries. However, numerous economic studies haveaffirmed that different industries can sustain different levels of profitability; part of this difference is explained by industry structure.Michael Porter provided a framework that models an industry as being influenced byfive forces. The strategic business manager seeking to develop an edge over rivalfirms can use this model to better understand the industry context in which the firmoperates:
[31]
Five forces looks at five key areas namely the threat of entry, the power of buyers, the power of supplies, the threat of subtitutes, and competitive rivalry.
[32]
Britannia has a very strong rivalry with its competitors which includes ITC ltd, ADF foods ltd, Surya foods and agro ltd, etc.. Though it has about 40% control in biscuit market, it always comes up with new innovations and surprises to keep it that way. Since the time of its arrival, ITCs Sunfeast products have also shown great influence on its customers and it remains to be a problem for the expansion of Britannia. These major giants have monopolistic competition among themselves. They all have their USPs (unique selling propositions) even if they have similar products.
[33]
CHAPTER -3
Marketing strategies
[34]
3.1 Products of the Company Britannia has a wide range of products spreading from plain wheat biscuits like TIGER to its cream biscuits, veg cakes, etc. It also introduced a wide range of health products like Nutrichoice oats cookies, Nutrichoice ragi cookies, Nutrichoice health starte kit, Nutrichoice 5 grain, etc. The company claims to have products for everyone and clearly proves itself true on the statement.
For the first time in India we have Britannia NutriChoice 'Diabetic Friendly' Essentials specially designed for people with diabetes. There's no longer a need to avoid snacks or go
[35]
hungry while traveling or at work. Rather approach snacking in a healthy way with our Ragi Cookies. Britannia NutriChoice Ragi Cookies are scientifically created to suit the special lifestyle and nutrition needs of diabetics to manage extreme swings in blood sugar levels. They are tasty, crunchy and convenient option for those mid-meal pangs. Ragi helps lower blood glucose levels and in a rich source of magnesium, which is instrumental for the production of important enzymes. Our Ragi Cookies are a good source of fiber, both soluble and insoluble, for heart and digestive health.
2) Veg Cakes
Britannia Veg Cakes is every vegetarian's dream come true! 100% vegetarian cake with all the softness and delight a cake should have. Every slice is soft and fluffy, stuffed with real fruit bits, to give you a cake that is truly delicious, down to the last slice. Add to this zero cholesterol and a 3 month shelf life and you have a healthy, convenient snack to enjoy any time, anywhere. Grab a pack of Britannia Veg Cake today. Masti ka Green Signal! Flavour: Twisty Fruity Price and sizes: Rs. 15/- for 75 gm pack. Nutrichoice Health Starter Kit 2010 - Britannia Nutrichoice launches a New Year pack - the Nutrichoice Health Starter Kit . Created for everyone who makes a New Year resolution to become healthy and does not follow through on it. The Health Starter Kit contains a range of healthy biscutis - 1 pack each of Nutrichoice Hi-Fiber Digestive, Nutrichoice 5 Grain and Nutrichoice Nature Spice Cracker. It
[36]
also has a one week free pass to Talalkars gym that entitles every consumer to one week free trial of any Talwalkars (TBVF ltd) gym across the country.
3) NutriChoice 5 Grain
Most consumers believe that to in order to stay healthy one needs to make certain compromises on some good things in life. Whether it is missing that extra hour of sleep over early morning exercise, or eating unappetizing foods over that extra oil-dripping samosa. At the same time most of us agree that good nutrition cannot come from one kind of food alone, but from a healthy combination / assortment of several healthy ingredients put together. Britannia NutriChoice 5 Grain Biscuits are a perfect answer to those looking for healthy eating options without as much making a compromise on taste, or convenience, or health. Because Britannia NutriChoice 5 Grain biscuits are made from 5 carefully chosen healthy cereals (Oats that help reduce bad cholesterol, Corn which promotes heart health, Ragi a good source of both Calcium as well as Fibre, Rice low in fat, and Wheat that provides wholesome energy). These biscuits are delicately sweetened with natural honey, and come in a unique large oval shape. It is this large size and the healthy combination of the ingredients that make it an ideal hunger buster for those in-between meals time hunger. Britannia NutriChoice 5 Grain biscuit pack contains several small single serve pocket meals packs, so that one is never far away from pacifying hunger on the move. So whenever you miss your breakfast, or succumb to those unhealthy
[37]
evening snacks, you can relish the goodness of health with Britannia NutriChoice 5 Grain biscuits.
4) 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.IRON ZOR helps make mind sharper and body stronger. A Rs.4 pack has as much IRON ZOR as that in 1 kg of Banana.R&D in Britannia has spent considerable time to develop this nutritious and delightful snack for children.Britannia Tiger Banana packed with IRON ZOR and goodness of Banana is accessible to all, being available in convenient packs priced at Rs.2, Rs.4 and Rs.10.
[38]
5) NutriChoice SugarOut
Sounds like yesterday when people commented that healthy foods meant "compromising on the taste." NutriChoice SugarOut is the most novel product range to have been introduced in the market. The product is not just sweet but tastes great, and yet contains no added sugar. This is because NutriChoice SugarOut is sweetened with "Sucralose," derived from sugar, which provides the same sweetness as any other biscuit, without the added calories of sugar. This range is available in 3 delicious variants namely Litetime, Chocolate cream, and Orange cream, targeted towards all health sensitive people. It is also relevant for consumers with sugar related ailments. We are sure that you will be pleasantly delighted with its great taste and equally surprised to know that it has no added sugar.
[39]
Nothing can be more difficult than making small efforts in our daily life towards healthy and active living. 24/7 we are engrossed in our busy schedules; skipping meals, missing walks, along with inadequate sleep and frequently eating-out, all take a heavy toll on our health.At least with the new and improved NutriChoice Digestive Biscuit, we have one less thing to worry about. Made with 50% whole-wheat and packed with added fibre (10% of our daily dietary needs), these delightfully tasty biscuits are amongst your healthiest bites of the day.In your next visit to a shop just look out for its Golden-green international carton pack. Try one and you'll know that you've made one smart choice - NutriChoice.
[40]
All kids who have relished the yummy creamy treasures of Britannia Treat in exciting flavors, have yet another reason to celebrate! Britannia Treat launches the amazingly yummy Treat Fruit Rollz!! These tasty soft rolls are filled with real fruits and provide a healthy yet mouthwatering treat to the kids. Fruit Rollz comes in four masti fruit flavours - Juicy Apple, Strawberry Surprise, Tangy Orange and Delicious Dates! Want to know a little secret? They make the best tiffin treats! So during snack time what better than to munch on the delicious and healthy Fruit Rollz and discover the yummy fruit flavor from within the shells. Keeping up with Britannia's platform of 'taste bhi, health bhi', Fruit Rollz is indeed a yummy snacking option for kids, while keeping the Moms assured about the goodness provided by the fruit filling.So go on and treat yourself to the lip-smacking snack!
[41]
Milk Bikis, the favourite growth partner of Kids, now brings greater value and delight to all with its new product and pack design. Recently re-launched in its existing Southern & Eastern markets, and extended across India, the new Milk Bikis is all set to add excitement and appeal to nutritious food. Whoever said that good food needs to look dull and boring, will just have to take a look at Milk Bikis.With a unique and attractive honeycomb design and an enhanced product experience, the new biscuit prompts the Kids will love it reaction amongst mothers. The milk goodness in the recipe is now enhanced with SMART NUTRIENTS 4 vital vitamins, iron and iodine, proven to aid mental and physical development in growing kids. The premium packaging, besides appealing to kids, also ensures that the biscuits remain fresh and crisp.So, whether its breakfast time or snack time at school, rest assured that kids will look forward to munching these crunchy, milky biscuits which even helps in their development. And yes, adults wont be far behind in reaching out for a pack!
[42]
3.2.1 Product:
Britannia has a wide range of products spreading from plain wheat biscuits like TIGER to its cream biscuits,veg cakes, etc. It also introduced a wide range of health products like Nutrichoice oats cookies, Nutrichoice ragi cookies, Nutrichoice health starter kit, Nutrichoice 5 grain, etc. The company claims to have products for everyone and clearly proves itself true on the statement. Britannias products comes undernondurable goods. The products come in different sizes aswell as shapes. The product features are: The products are good for health. The products are tasty. The products are available in attractivepackaging. The products are of good quality. The products are available in a number of variants. The products also provide development fuel for children.
3.2.2 Price:
As it has a wide range of products, their prices also vary in wide ranges. Most of the Britannia products are in middle range range of FMCG sector. Britannia has always believed in providing good quality products and reasonable prices. This may be because of the tight competition between Britannia and its rivals like ITC and Priyagold, but the customers seem to be content with the prices.
[43]
3.2.3 Place:
Britannias products are found all over the country. They can be easily purchased from retailers, kirana shops or any other big retail units. Due to a wide spread range of products products, Britannia has its utility in around every household and has even reached them.
3.2.4 Promotion:
Britannia has been very regular in promoting its products. Its only been seen in the recent past that it has reduced is advertisements. Its because it is trying to reduce its advertisement expenses. It also sponsors many events and programs like Britannia khao world cup jao or the Lagaan match, etc.. There are some products of Britannia which needs to be more promoted, like its cheese products, etc.
[44]
3.3.2 Positioning:The positioning is a creative exercise donw with an existingproduct. The well known products generally hold a distinctive position in consumer's minds. With eat healthy, think better, Britannia positions itself as a healthy and nutritious alternative. It also positions itself as a delightful and tasty product brand. Good Day adds with Iska toh ho gya re Good Day, it has tried to position as the brand preservers to infuse cheer, heated brand.
[45]
[46]
Price discounts or price-off deals: Price pack deals Bonus packs, etc..
[47]
Ratio analysis Mar ' 10 Per share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.) Net operating income per share (Rs) Free reserves per share (Rs) Profitability ratios Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) Leverage ratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio
[49]
Mar ' 09
Mar ' 08
Mar ' 07
80.08 95.79 48.77 64.48 25.00 85.42 165.86 165.86 1,423.73 154.03
61.46 75.46 75.51 89.52 40.00 93.84 333.99 333.99 1,302.79 322.15
73.80 85.98 79.95 92.12 18.00 97.24 306.65 306.65 1,083.23 294.86
41.62 52.20 45.06 55.64 15.00 53.87 246.65 246.65 920.60 234.99
Mar ' 10 Liquidity ratios Current ratio Current ratio (inc. st loans) Quick ratio Inventory turnover ratio Payout ratios Dividend payout ratio (net profit) Dividend payout ratio (cash profit) Earning retention ratio Cash earnings retention ratio Coverage ratios Adjusted cash flow time total debt Financial charges coverage ratio Fin. charges cov.ratio (post tax) Component ratios Material cost component (% earnings) Selling cost Component Exports as percent of total sales Import comp. in raw mat. Consumed Long term assets / total Assets Bonus component in equity capital (%) 64.61 15.00 1.20 2.43 0.58 91.82 1.88 29.41 19.77 59.77 45.20 63.60 69.57 1.08 1.08 0.49 15.06
Mar ' 09
Mar ' 08
Mar ' 07
[50]
4.2 RATIO ANALYSIS Britannia Industries Ltd. Current ratio Quick ratio Debt Equity ratio Inventory turn over ratio Debtors turn over ratio Investment turn over ratio Fixed asset turn over ratio Total assets turn over ratio
For the year ending 2011
[51]
Mar ' 11 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total 407.76 23.68 882.75 23.89 427.41
Mar ' 10
Mar ' 09
Mar ' 08
Mar ' 07
23.89 372.36
23.89 800.65
23.89 731.92
23.89 590.93
[52]
Mar ' 11 Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)
[53]
Mar ' 10
Mar ' 09
Mar ' 08
Mar ' 07
Mar ' 11
Mar ' 10
Mar ' 09
Mar ' 08
Mar ' 07
[54]
CHAPTER -5
Key learnings from the company and recommendations
[55]
5.1 Biscuit Market Growth Rate Months Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 Growth Rate in % 20 26 26 24 21 17 11 8 11
Even though flour and sugar price have been steady in input index, other inputs like refined palm oil, skimmed milk powder, cashew, cocoa and manufacturing fuel have seen growth in input index. The company was able to increase its Q3 margin even with input inflation of 6% - 8%. The Glucose category has seen its contribution declining from 33% in 2006-07 to 23% now. The non-biscuit segment (bread, cakes, rusks and dairy products) currently aggregates to Rs 1100 crore. The company is looking at more and more innovative products to launch which are at higher price in brands like GoodDays, 50-50 and NutriChoice along with dairy and bread segment. For example, GoodDay Regular is at price index of 156, then GoodDay Chocochip is at price index of 256 and GoodDay Fresh Bake is at 389. In the recent past Britannia launched a range of products such as NutriChoice Multigrain Thins, NutriChoice Multigrain Roasty and 50-50 Snackuits. Three new greenfield plants of the company are coming up in Bihar, Karnataka and Orissa to boost its production capacity that would support the robust demand for its products across the country. These plants will become operational by the end of this fiscal year to make a wide array of products such as biscuits and cakes. Each plant will require an investment of around Rs 50 to 80 crore. The subsidiaries are
[56]
generating cash profits and do not require any funding. In the UAE market, the company is at number 2 position
[57]
Strength: Its good distribution network Logo of Britannia Different Flavors according to Indian consumers test and preference Good quality products Credit facility for retailers which Amul dont provide Strong brand name and
Weakness: Incremental sales in local as well as International brands. Frequent price hikes in the products and very high premium to nearest competitor i.e. Amul. No advertisement High Market dependence on Indian
consumer base Strong portfolio of top selling food brand Ranked second amoung FMCG company Worlds in the Business Respected Most
[58]
in the market Consumer oriented market Acquisition with Fonterra, the world's second largest Dairy strategic Food Company In 2007, beneficial stake in Dubai-based International LLC and Omanbased Al Sallan Food Industries CoSAOG Grater purchasing power and demand for new products Increasing preference for dairy products
Low price of Local Cheese Inflationary product price Price fluctuations in global
materials market Higher margin demand by the organized retail players Outbreak of animal diseases Dependence on row materials like milk Intellectual Danon High dependence on Dynamix Dairy Industries for cheese and batter Mother outlets Dairys and Amuls property right
FINDINGS:
[59]
Demand and consumer behavior defer in every market according to there status and company follow different strategy for every market and products availability is also different like in west Delhi we find local brands too and in south Delhi important brands are dominating.
Consumers are very much brand conscious now a days, so Britannia name is good opportunity for its dairy products but they just need to create some awareness using banners and hoardings as many people are still not aware of Britannia dairy products like cheese.
With the fall in its share value last year, it has done a good come back this year getting its share value from 367 to 540 in just one year. Amul is major competitor of Britannia in small parts of Delhi and other cities as there distribution network and advertisement strategies are batter then Britannia. Like in small retail shop of south Delhi where sales is less Britannia distributor dont like to go, Jamrat pur is one of the example, even small shops of other part of Delhi also.
The Advertisement strategy of Amul through local sources is stronger then Britannia. Through Banners and Hoardings at eye catching point and through newspapers. Amul advertises its whole product rang which Britannia is not doing for its Dairy products. Even in small towns Amuls distribution network is better then Britannia. Like in small towns of Rajasthan sales of ghee is very high but Britannia Ghee is not available there. There Amul is doing advertisement through painting on walls which are at eye catching area.
Though it has one of the largest market share in FMCG industry, it still has a very tight competition with its competitors like ITC and Parle. Britannia has around 40% share in the biscuit markets and continues to be the dominator in the sector. People are aware about most of its products but there are some of its products which needs to get attention through advertisements, etc., like its cheese products.
Conclusion
[60]
Britannia is one of the biggest FMCG company in India. Britannias products are popular everywhere in India. Companys 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 w e l l dedicated management team to e f f i c i e n t l y l e a d t h e c o m p a n y always to the next level. So, Britannia to hold their leadership positions in the market for long term. Finally Britannia Company is the best company when compared to other companies just because of its products and the position it has made for itself in its customers mind.
Suggestions
[61]
Marketer needs to use advertising and brand building strategies to address the discerning buyers and retail push to in different buyers. The manufacturer should understand consumer behavior because retailers can't help quality and price. It is only up to dealers said it is demand they sell Britannia 42% agree that at retail shop it is brand popularity, which determine the purchase of biscuit. There is a greater need to understand the retailer behavior considering them as a team working for the company may help them to be attached to the company. There should be feeling of belonging to the company in inner of the retailers. Setting values club for retailers so that they may exchange views with the company and help in understanding consumer behavior. The investors also seem to be regaining trust in Britannia which is helping them recover from the dip they saw in mid of last year. In June 2011, it had a value of around 367 which has now become now 540 in May 2012. I suggest they keep on performing like this to get back on track.
BIBLIOGRAPHY
[62]
britannia.co.in financialexpress.com Websites of competitors like priyagold.com, itc.com,etc bobsguide.com mouthshut.com Wikipedia.com
[63]