UNITEDWORLD SCHOOL OF LAW

BUSINESS ENVIRONMENT

TOPIC

Globalisation Impact on Britannia Industries

Submitted To: Mr. Nityanand Jha

(Assistant Professor)

Submitted By:

Dwip Chandnani (202304010010)

 Table of Contents
...................................................................................................................................................... 1

TOPIC .............................................................................................................................. 1

INTRODUCTION ............................................................................................................... 3

COMPANY OVERVIEW ................................................................................................ 3

INDUSTRY OVERVIEW ............................................................................................... 4

I. SOURCING .............................................................................................................. 5

II. MANUFACTURING ................................................................................................ 6

III. DISTRIBUTION ................................................................................................... 6

IV. CUSTOMERS........................................................................................................... 7

V. COMPETITOR ........................................................................................................ 7

CONCLUSION ................................................................................................................... 8

BIBLIOGRAPHY ............................................................................................................... 9

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 INTRODUCTION

COMPANY OVERVIEW

Britannia Industries started with the investment of Rs 295 back in 1892 to spending Rs 41.6
crore in CSR (Corporate Social Responsibility) and earning whooping profit of Rs. 2080.4
crore in financial year 2022-23 the company has come a long way. With its foundation in India,
Britannia Industries has effectively crossed national boundaries to become a major player on
the international market. The company has grown from a small start in Kolkata back in 1892
to become a major force in the global food industry. There products are available in every part
of the country. The main reason for so much development despite instability in the leadership
of the company is because of their joint venture and expanding globally to more than 80+
countries because of which their revenue is consistently increased by 10% over last 10 years.
There joint ventures with various international companies like Bel SA a renowned French
cheesemaker company for their cheese products in 2022 and also acquisition with some other
companies like Kenafric Biscuits Limited, Kenya and Britania Brands Limited, Mauritius and
many more is the reason for there success. Britannia Industries is now a well-known and
esteemed brand on the international market. The company's capacity to successfully navigate
and survive in a variety of worldwide marketplaces is demonstrated by the fact that its products
are exported to several nations like United States, Singapore, United Arab Emirates, in addition
to demonstrating the broad popularity of its offerings. Even though Britannia is still very much
influenced by its Indian roots, its global reach demonstrates the brand's ability to cross cultural
barriers and provide customers all over the world with a delicious food experience. (Britannia
Industries, 2023), (BSE India, 2023)

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 INDUSTRY OVERVIEW

Britannia industries fall under the food processing industries and particular under bakery and
biscuit industry. It is growing at the CAGR of around 5%. It’s turnover is expected at approx.
USD 170 billion in 2028. Currently in 2022 it is around 120 billion.

Source- (market data forecast, 2023)

There are two sectors in it which is Organised sector and Unorganised sector. Almost 80% of
bakery industries consist of biscuit and bread as their major product. Britannia Industries being
the highest share accounts to 33% of the total market share followed by Parle products which
amounts to 28%. The industry, which began as a result of colonial-era experimenting with
British and European baking methods, has developed into a dynamic force that has changed its
products to suit the shifting tastes and preferences of Indian consumers. The industry has seen
an enormous transition as a result of globalization. The area of product innovation is where the
impact is most noticeable. Local recipes use flavors and trends from throughout the world,
creating a blend of traditional and modern offers that appeal to a wide range of customers.
Globalization is typified by the widespread impact of technological improvements in the sector.
Modern machinery and production methods have been used by Indian bakeries, increasing
productivity and improving product quality. The industry has grown and modernized as a result
of the injection of international best practices. Britannia industries were the first to import
industrial gas oven to increase their production back in 1921. To put it simply, the Indian bakery
business is at a crossroads where tradition and innovation coexist. It is evidence of a historical
industry's capacity to grow and adapt in the face of external influences. As the sector develops

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further, it continues to play a crucial role in India's culinary story, feeding the hungers of a
people bound by a common passion for baking. (Britannia Industries, 2023), (market data
forecast, 2023), (Anand), (Black, 2016).

BODY

I. SOURCING:
Britannia industries is one of the leading market player in bakery industries, to meet its
market demand they also source their raw material from outside the country which helps
them to easily cater their demand. Here are the list of few materials which they import
from outside india:
• Cocoa Beans: Ghana, Ivory Coast, Nigeria, and other countries in West Africa
are the main suppliers of cocoa beans to Britannia industries. The popular
bourbon biscuits and other cocoa-based items made in Britannia are made from
the premium cocoa beans that are grown in these locations.

• Palm Oil: The two countries that produce the most palm oil globally are
Indonesia and Malaysia, from which Britannia imports palm oil. A versatile
component, palm oil can be found in many britannia products such as cakes,
cookies, and dairy products.

• Wheat: To guarantee a consistent supply of premium wheat flour for its bread
and biscuit products, Britannia sources wheat from Australia, Canada, and the
United States. Wheat from these areas has a gluten content and baking qualities
that are ideal for Britannia's manufacturing procedures.

• Dryfruits and Nuts: Britain imports nuts and dryfruits from country like
United States, Turkey, Chile etc This are used in their products like Good day
and cakes etc.

• Dairy Products: For this the company has a joint venture with Bel SA a French
based company in 2022 also they import from United States, New Zealand and
Australia.

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To meet their financial demand, they have also gone in global markets to international market
because of which it led to increase the creditability on firm. They have also launched
international bonds for their international investors in the past. They have good capacity to
borrow more funds as it has been rated as outstanding by CRISIL (Credit Rating Information
Services of India Limited.) (CRISIL Rating, 2023), (Coursehero, 2023), (BSE India, 2023).

II. MANUFACTURING:
For manufacturing before 2013 Britannia Industries only manufactured only 35%
production on its own but now it has increased to 65%. There main reason to expand
the manufacturing unit is to increase their market reach and also to improve their supply
chain also to be familiarise with the local regulation and demand. Company has also
expanded to different countries like oman by taking over a company name Al Sallan
food industries company with share holding of 65% which turnover was 23000 crore.
The company has also expanded to other countries for better reach such as Nepal,
Bangladesh, Dubai, Egypt, Kenya, Uganda, Mauritius etc. by either acquiring in this or
by doing joint venture. By doing joint venture with middle east Britannia Industries is
now one of the leading brand in Middle East countries. In India they have many
manufacturing plants and also they export it outside the country one of there major plant
in India is Ranjangaon, Maharashtra. They manufacture total 4,33,000 tones products
through this manufacturing plants. (BSE India, 2023)
III. DISTRIBUTION:
Outside of India, Britannia Industries has a vast network of distributors in more than 60
nations. These distributors are essential to guaranteeing that Britannia's products are
reachable and available to customers all over the world. Below is a list of some of
Britannia Industries' major distributors outside of India:
• Middle East: Britannia Industries collaborates with well-known wholesalers in
this region, including Gulf Food Industries (Saudi Arabia), Al Jazeera Trading
Company (Qatar), and Aujan Trading Company (UAE). These distributors are
well-versed in local consumer tastes and have many years of experience in the
food and beverage business.
• Africa: Britannia's presence in Africa is made by distributors like Bidvest
(South Africa), Illovo (Kenya), and Simba Distributors (Nigeria).

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 • Asia: Britannia has established partnerships with distributors like Sime Darby
(Malaysia), Charoen Pokphand (Thailand), and Lotte (Indonesia) in Southeast
Asia.

• Europe: Britannia's distribution network in Europe includes distributors like

Bidfood (UK), Mondelez International (France), and REWE Group (Germany).

• North America: In North America, Britannia partners with distributors like

KeHE Distributors (USA) and Acosta Sales & Marketing (Canada). (BSE India,
2023)
IV. CUSTOMERS:
Because of LPG Policy Britannia Industries were exposed to global markets and in
countries in which they have joint ventures and acquisition they have their customers
in those countries that is United States, Canada, United Kingdom, France, Germany,
Thailand, Dubai, Oman etc. There presence has now increased to other countries like
Kenya, Uganda, Egypt, Nepal etc. This show us that the company is constantly
progressing with keeping all together. In India they expand their customers with their
marketing promotion strategies. For example, their most impactful advertisement
‘Britannia khao World cup jao’ It was the most successful campaign in 1999. Their one
of the star product Tiger biscuits was promoted in similar way that’s why it was their
star product. (BSE India, 2023)
V. COMPETITOR:
Due to the globalisation Britannia industry faced a huge problem of competitors as
market was open and any company can come and expand their business in India. Here
are few list of their competitor:
• The international food and beverage corporation Nestle is based in Vevey,
Switzerland. In terms of worldwide sales, it is the biggest food firm in the
world. Its diverse product line includes biscuits, chocolate, coffee, dairy goods,
baby formula, and pet food. Since its 1912 entry into the Indian market, Nestle
has grown to rank among the nation's top food producers.
• The US international food manufacturing corporation Kellogg's is based in
Battle Creek, Michigan. The company makes a wide range of other items, such
as snacks, crackers, and granola bars, but its breakfast cereals are its most well-
known offering. Since its entry into the Indian market in the 1990s, Kellogg's

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 has grown to be a significant rival of Britannia Industries in the market for
granola bars.

This are the few list of competitors of foreign companies affecting Britannia Industries other
than that there are some Indian companies which affect them globally and locally here are list
of that companies:

• With its headquarters located in Mumbai, India, Parle Products is an

international food and beverage manufacturing company. One of the most well-
known biscuit brands in India is Parle-G, which is the company's most well-
known product. Parle Products is a significant rival of Britannia Industries with
a significant market share in India. This also affect them globally as parle has
strong presence in global market

But despite of this competition Britannia industry has got a advantage which is first mover
advantage in India. Their establishment has challenged them to work on their toes. (parle
products, 2023), (Nestle, 2023), (kellogg's, 2023)

CONCLUSION
In short, Britannia Industries has grown from its humble origins in 1892 to become a major
player in the world food market. The company's success in India and abroad has been driven
by its strategic initiatives, which include joint ventures and acquisitions, as well as its
dedication to innovation.

The market overview highlights how dynamically the Indian bakery sector is changed by both
the revolutionary effects of globalization and historical influences. With skill, Britannia
Industries has adapted to these developments, bringing modern technologies and international
trends into its daily operations.

When analyzing Britannia's worldwide supply chain strategy, it can be seen that the company
effectively acquires raw materials from global marketplaces, which helps it to satisfy a wide
range of customer requests.

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The growth of manufacturing in India and elsewhere is indicative of Britannia's dedication to
internal production and market share through joint ventures and acquisitions.

Britannia's success is largely due to its distribution and consumer reach, with a huge network
of distributors spanning more than 60 countries guaranteeing accessible worldwide.

Britannia's first-mover advantage in India, together with ongoing efforts in innovation and
marketing, places it as a leader in the business despite competition from both international and
Indian players.

In summary, Britannia Industries thrives in a constantly changing global market because it sits
at the intersection of history and innovation. The company's impact and influence on India's
food narrative continue to be significant even as it navigates the difficulties of the food market.

BIBLIOGRAPHY
Anand, N. (n.d.). BRITANNIA BISCUITS-A MARKETING STRATEGY. p. 67.

Black, E. (2016). Globalization of the Food Industry: Transnational Food Corporations, the
Spread of Processed Food, and Their Implications for Food Security and Nutrition. p.
43.

Britannia Industries. (2023, November 20). Retrieved from

https://www.britannia.co.in/about-us#!

BSE India. (2023, November 20). Retrieved from https://www.bseindia.com/stock-share-

price/britannia-industries-ltd/britannia/500825/financials-annual-reports/

Coursehero. (2023, november 20). Retrieved from

https://www.coursehero.com/file/180352783/Britannia-LSFMpptx/?userType=student

CRISIL Rating. (2023, November 20). Retrieved from

https://www.crisil.com/mnt/winshare/Ratings/RatingList/RatingDocs/BritanniaIndustr
iesLimited_September%2026,%202023_RR_327962.html#:~:text=CRISIL%20Ratin
gs%20has%20reaffirmed%20its,Britannia%20Industries%20Ltd%20(Britannia).

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kellogg's. (2023, November 20). Retrieved from https://www.wkkellogg.com/en-us/who-we-
are/our-story.html

market data forecast. (2023, November 20). Retrieved from

https://www.marketdataforecast.com/market-reports/biscuits-market

Nestle. (2023, November 20). Retrieved from https://www.nestle.com/about

parle products. (2023, November 20). Retrieved from

https://www.parleproducts.com/about#:~:text=Committed%20to%20build%20the%20legacy
,needs%20of%20the%20Indian%20masses.

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