Britannia. Very Familiar name amongst the us.

We come across the term

Britannia almost daily. Let us know Britannia company in detail:
This company is known for its Bakery products such as Breads, Biscuits, Cakes,
Rusk and many more. It is also known for its Dairy products such as Milk,
Butter, Cheese, Curd etc.
Britannia is an Indian Food Products Corporation whose head quarter is situated
in Kolkata West Bengal. This company is selling it product across 60 countries
all over the world. It’s estimate market share is approximately 38%. This
company was founded in 1892 with an investment of just ₹ 265 and today the
number of Employees working in Britannia are 3,206 (as on 31st March, 2017).
It was started in 1892 at small house in Kolkata by making only biscuits and
later on it was operated by Gupta brothers mainly Mr. Nalin Chandra Gupta (a
lawyer) and also V. K. Brothers. In 1918, English businessmen C. H. Holmes
was admitted as a partner and the name of the company was launched as
Britannia Biscuit Company Limited. Mumbai factory was established in 1924.
Peak Freans UK acquired a controlling interest in the Company. During World
War II, Britannia biscuits were highly demand and which boosted the company
sales and during this period only the company changed its name from Britannia
Biscuit Company Limited to Britannia Industries Ltd. In 1992.
In 1982, Nabisco Brands replaced Peak Freans and became one major foreign
shareholder.
From 1998 – 2001 company’s sale grown by 16% p.a. as compared to it’s
market share and profits also increased by 18% p.a. as compared with its
industry. Presently, 90% of the company’s revenue comes by way of sale of
biscuits which is around 22 billion. It is one of top 100 the most trusted brands
in India.
Britannia’s major competitors are Amul and Nestle.

BUSINESS STRATEGY OF BRITANNIA

BISCUITS:
1. Engineer upgrades and tap into consumers Moving up the economic
ladder:
2. Fuel rural consumption to gain disproportionate growth
3. Push back regional players
4. Strengthen the Core
5. Lead with new to market concepts and innovations
CAKE:
Strategic priority is to expand the size of the cake category by reaching
out to more consumers and widening distribution.

RUSK:
The strategic intent of our Company in the rusk category is to gain market share
from the unorganized segment by offering superior products at affordable price
points. The key objective is to attain segment leadership through continually
understanding what the consumer seeks from the category and by being the first
to offer products of superior quality designed to exceed consumer expectation.
Dairy:
Our Company’s Strategy has been to democratize the portfolio to achieve
growth in Cheese. This is supplemented by aggressive pricing and distribution
interventions.

International Business
Our Company is now present in 79 countries and is expanding into new
categories and geographies in its endeavour of becoming a “Global Total Foods
Company”.
 OUTLOOK

The growth of the Indian economy has been steady during the previous year.
However, there were signs of growth slowing down towards the end of the year
owing to the impact of rising global trade tensions and the credit squeeze in
domestic markets. Consumer facing businesses have registered reasonable
growth in revenue and profits during the year. With the expectation of stability
in governance and growth-oriented policies, it is expected that the growth rates
would improve in the coming years.

The overall economic environment would have an impact on your company’s

business. However, your company expects to tide over any adversities on the
strength of a strong brand, product innovation, exploration of newer segments,
relatively lower dependence on wholesale channel and continuous cost saving
efforts.

OPPORTUNITIES AND THREATS

BISCUITS:
In view of the wide spread penetration of biscuits among households (above
90%), the opportunity for innovation and scale is large in this category.
The Primary threat in this segment is expected to arise from competitors who
discern the same opportunities and are investing significantly to tap these
opportunities.

CAKE:
Cake Category is expanding with disruptive innovations in the market
and your Company is well placed to grow in this category due to its capabilities
and leadership in the cake category.
However, proliferation of competition, especially at the lowest price point
segments pose threat to growth prospects in this category.

RUSK:
The fragmented and unorganized nature of the segment offers tremendous
opportunities for growth. The scope to offer consumers new rusk experiences
will enable growth in this category.
BREAD:
Consumer preference for healthy and premium products is creating
significant opportunities in this category. Your Company has taken the lead in
offering consumers the choice of healthy breads through innovations like
multigrain breads.

FINANCIAL AND OPERATIONAL PERFORMANCE

The key standalone financials are:
`in Crores
Particulars 2018-19 2017-18
Sale of goods 10,389.49 9,282.04
Profit before tax 1,716.11 1,445.20
Net profit 1,122.20 947.89

Overview of Company Performance

Britannia Company reported consolidated revenue growth of 10.8% for FY
2018-19. This was made possible through heightened innovations, expansion in
distribution and cost efficiency programs. During the year, Company celebrated
its 100th year and refreshed its identity with the launch of the new Britannia
logo signifying “Excitement and Goodness”.

Britannia Consolidated Revenue grew 6% and Adjusted Net Profit

increased by 3% for the quarter (including exceptional expenses, Net profit
decreased by 3%)
Kolkata, Aug 9th, 2019

Britannia Industries Ltd. (BIL), India’s leading Food Company, reported

consolidated revenue growth of 6% for the Quarter at Rs. 2,677 crores.
Adjusted Net Profit increased by 3% for the Quarter at Rs. 267 crores (Reported
Net profit of Rs. 251 crores).
Commenting on the performance, Mr. Varun Berry, Managing Director, said,
“We outpaced the market and strengthened our market position during this
phase of sluggish demand. Our journey to become a “Total Foods Company” is
progressing well with good response to our new products viz. “Treat Wafers”
and “Winkin Cow Milkshakes”. We are redefining bakery with the launch of
“baked salted snacks” and “Croissant”. Some of our recent innovative product
launches viz. Open Sandwich biscuit “Treat Stars” and Democratized centre
filled biscuit “Treat Burst” are gaining traction and redefining the biscuit space.
Our priority now is to scale up the recent product launches and achieve
profitable growth.