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Management Control System

BRITANNIA INDUSTRIES LTD

LIST OF TOPICS
Introduction Organizational Structure Strategies- Marketing, Operational and Financial Organizational Culture Control System-HR Policies Focus on Cost, Quality and Profitability Corporate Governance Board Committees Code of Conduct.

BRITANNIA
ESTABLISHEDPRODUCT

1892

yogurt

LINE- Biscuits, snacks, packed milk, cheese, butter, buttermilk and

PLANTS

- Kolkata, Mumbai, Delhi, and Chennai

Market Leader- 38% share & Annual Sales Turnover Rs.4847 Crores

Corporate Strategy- To lay the base to project our future as a successful 'food' company, a company that provides high quality and tasty, yet healthy foods and beverages.

Vision - Every third person, in India, should be a Britannia consumer.

Mission - To dominate the food and beverage market in India through a profitable range of Tasty Yet Healthy products by making every Indian a Britannia consumer.

ORGANIZATIONAL STRUCTURE

STRATEGIES
Marketing

Strategies

Target customers in each and every segment Customer-oriented approach New choices for consumers

Operational

Strategies

Techniques like JIT ,TQM ,Kaizen implemented to enhance the quality of products. Investment in infrastructure Consolidating its manufacturing locations Improvement in efficiency and cost reduction

Financial

strategy

Financial businesses named Britannia finance & kotak Britannia are established. Sinking funds kept to meet the future uncertainties Long term capital needs met by preference shares mostly

Britina has a very Open and transparent ORGANIZATIONAL CULTURE culture


Which Aims at Creating growth opportunities Decision making and ideal leadership is encouraged It Emphasizes on various functional training programs upgrading its employeees

The main Focus is given on strong performance and high results

The critical Leadership Behavior/ Skills that are desired while hiring are:
Integrity Entrepreneurial Spirit
System and Process Orientation

Team Orientation

Drive for Results

Communication

People Development

Quality Orientation

Learning Orientation

Customer Orientation

The talent search in Britannia has led to the following avenues (the recruitment and hiring is done from 3 different sources)

1.

From within: wer they look for Consistent excellent performers.

Management Trainee program : (it includes campus hiring and training programs etc..) it leads To building a cross-functional, cross-regional and cross-divisional skills and competencies in the trainees who go through it. The ultimate objective is to build them into Business Managers of the future.
2. 1.

Lateral hires: Hire on a lateral basis from the market with a view to bring in skills and competencies from the premier companies.

FOCUS ON COST, QUALITY, PROFITABILITY 1. Environment &Safety


Environmental fuels like propane, LPG, PNG & biodiesel are used for baking purpose whenever available to reduce pollution. Safety Measure: Implementation of fuel safety measures Creation of emergency control room 2. Quality Standards Each year the companies quality standards are becoming more stringent. One of its contract packer- Sunandram Foods Pvt Lts at Guwahati(cakes) was awarded the Performance Excellence Trophy in manufacturing. 3. Information Technology Continuous investment in IT to improve operational efficiency & productivity. Implementation of Business Intelligence System Coz of the adoption of consolidated core ERP infrastructure-there hve bn significant reductions in energy/ power consumption and enhanced efficiencies.

4.

Energy Conservation
Replacement Of Inefficient Motors In Circulating Fans Of Baking Ovens By Energy Efficient Motors Installation Of Efficient Continuous Mixing System. Installation Of Roof Top Air Extractor (Operating Without Electricity). Installation Of CFL Lights Replacing Conventional Tube Lights.

5.

Technology absorption, adaptation & Innovation


New pre-heating technology in baking process is being tested, which can increase plant output by 10%. Direct transfer of flour from flour mill to factory through pipe lines Packing machine speed enhancement has been effected through automation & servo controlled motion.

Benefit: Improved Productivity Reduction of Wastage Better Energy Utilization Process improvement.

6. Supply Chain Initiatives

A study on optimizing supply chain efficiencies was undertaken with the support of KPMG identify and prioritize the key initiative to derive benefits out of efficient purchase of raw materials, manufacturing & distribution logistics & operational plan. As a result,

Yielded a saving of Rs 202mn (partly because of opportunities identified in supply chain & partly from ongoing process improvement in business) Operating profit increased by 62% PAT increased by 30% Net sales increased by 22%

CORPORATE GOVERNANCE

Board of Directors
Head: Mr. Nusli N Wadia (Non-Ex. Chairman)

3/4th of the Board Members are Non-Ex Directors.


Board comprises 6 independent Directors. Maximum Gap between any 2 board meetings: 4months

Audit Committee
Role of audit-committee : Review of Internal Audit reports and Statutory Auditors report on Financial

Statements

General interaction with Internal Auditors Review of Financial Statements

Internal Audit and Control


The Companys internal control systems are commensurate with: Nature, Size and Complexities of the business

Ensures proper safeguarding of assets


Maintaining proper accounting records

Remuneration Committee
Broad terms of reference of the Remuneration

Recommendations to the Board, of salary/perquisites To be responsible for the administration and superintendence of the ESOS

Share transfer & shareholders/investors grievance and ethics/compliance committee

Approves and monitors transfers &transmission of securities. Looks into various issues relating to shareholders.

Other Committees Investment Committee


Approves investments/divestments of the funds

Nomination Committee
Appointment of the Managing Director

INNOVATION COMMITTEE
Address all matters relating to the Companys product Address technical development activities

RESPONSIBILITIES OF EMPLOYEES OF BRITANNIA

Standards of Ethical Behavior

Protecting Corporate Assets

Accuracy of Company Records and Reporting

WORK PLACE RESPONSI BILITIES

Fair Employment Practices and Diversity

Harassment and Intimidation

Drug-Free Workplace

Safety in the Workplace

Maintaining Discipline at workplace

REPRESENTING BRITANNIA TO CUSTOMERS & OTHER EXTERNAL CONSTITUENCIES

Fair Treatment Quality of Products & Services Media, Publishing and Public Appearances Financial Reporting & Records Dealing with Third Parties Gifts, Favors and Entertainment.

PRIVACY / CONFIDENT IALITY

Proprietary and Confidential Information

Privacy of Customer Information and Data Protection

Privacy of Employee Information

CORPORATE SOCIAL RESPONSIBILITY National Interest Corporate Citizenship Working with Governments

INVESTMENTS AND OUTSIDE ACTIVITIES

Financial Interests

Conflicts of Interest