P.

Jog College of Science And Commerce

FINANCIAL MANAGEMENT OF
BRITANNIA INDUSTRIES.

Abhishek Rajesh Sawant

T. Y BBA ( Semester- V )
Under the guidance of –Mrs. GAYATRI
DESHPANDE
Batch- 2022-2023

E-Mail Id : abhisheksawant3060@gmail.com
P.JOG COLLEGE OF SCIENCE & COMMERCE

INDEX
Chapter Title of the Chapter Pages
No
1 Introduction 3
2 Review of Literature 6

3 Research Methodology 9

4 Data Collection, Analysis and 12

Interpretation

5 Findings, Suggestions and 15

Recommendation
 P.Jog College of Science & Commerce

INTRODUCTION
 Britannia Industries Limited is an Indian food and beverage company. Founded in 1892
and headquartered in Kolkata, it is one of India's oldest existing companies. It is now
part of the Wadia Group headed by Nusli Wadia. The company sells its Britannia and
Tiger brands of biscuits, breads and dairy products throughout India and in more than
60 countries across the world.

 Britannia is a brand which many generations of Indians have grown up with and our
brands are cherished and loved in India and the world over. Britannia products are
available across the country in close to 5 million retail outlets and reach over 50% of
Indian homes.

 Britannia believes that ‘Taste & Trust’ are its sobriquet and will constantly make a
Billion Indians reach out for a delightful and healthy Britannia product several times a
day!
• The company’s Dairy business contributes close to 5 per cent of revenue and Britannia
dairy products directly reach 100,000 outlets. Britannia Bread is the largest brand in
the organized bread market with an annual turnover of over 1 lac tons in volume and
Rs.450 crores in value. The business operates with 13 factories and 4 franchisees
selling close to 1 million loaves daily across more than 100 cities and towns of India.
 BOARD OF DIRECTORS

MR. NUSLI. N WADIA

CHAIRMAN

MR. VARUN BERRY

Managing Director

MR. AMIT DOSHI

Chief Marketing
Officer

DR. YSP THORAT Non Executive

Independent
Director
 P.Jog College of Science & Commerce

Review of Literature

 Financial Analysis is the process of evaluating businesses, projects, budgets

and other finance related transactions to determine their performance and
suitability. Typically, financial analysis is used to analyse whether an entity is
stable, solvent, liquid or profitable enough to warrant a monetary investment. It
also helps in identifying the financial strength and weaknesses of the firm by
properly establishing relationship between items of financial statements. A
financial statement is an organized collection of data according to logical and
conceptual framework. Financial statement analysis are intended to be
understandable by readers who have “a reasonable knowledge of business and
economic activities and accounting and who are willing to study the
information diligently”.
LOGO OF BRITANNIA
 Britannia wants to beat Parle in the biscuits market in terms of the
volume of brands and the company estimates it will take two-
three years to overtake the Parle G brand with Good Day.
 With this new brand identity, we look to elevate the brand
through a design that is simple and elegant, yet uniquely
Britannia. The 100-year campaign, set to roll out soon, is our way
of expressing gratitude to the secret ingredient of our success-
our consumers,” Ali Harris Shere, VP – marketing, Britannia
Industries Limited said.
 An official of the company explained the meaning of this new
logo. Britannia is planning to rebrand as the Total Foods
Company from now on with the expansion of its offerings in both
healthy and indulgent products. The wings of a bird signify
freedom to choose, whenever and wherever you want to enjoy
your food.
 P.Jog College of Science & Commerce

Research Methodology

• Purpose of the Research:

• To know Financial Management of Britannia.

• The structure of the financial statement.

• The strategies the firm pursues to differentiate itself from its

competitors.

• Analyze the current profitability and risk.

P.Jog College of Science & Commerce

4. Data Collection, Analysis and

Interpretation

Data analysis is the process of collecting and organising data in order to

draw
helpful conclusions from it. Here we are determining the data analysis
and
interpretations of Britannia Industries Ltd.
4.1 Liquidity Ratio
4.1.1 Current Ratio
Table 4.1 showing current ratio from 2015-20.
Generally quick ratio 1:1 is considered satisfactory. From table 4.2 it shows that
in 2015-16 the quick ratio is below 1:1 which is said to be unsound. This means
that the firm will not be able to pay off its current liabilities when they become
due. But from 2016-17 to 2019-20, the quick ratios are more than 1:1, which means
the financial position of the firm is said to be good. It indicates that quick assets
are sufficient to pay off the short term obligations.
Chart 4.2 showing quick asset ratio from 2015-20.  
 IMPORTANCE

Proper finance is the real key to the success of any business

enterprise. Without proper finance, a business can neither
survive nor expand and modernize. It is the finance, which
works like a lubricant, which keeps the organization dynamics
running smoothly and efficiently. The following are the points,
which highlight the importance of finance:

 Finance for business promotion

 Finance management for optimum
use of the firm
 Useful in decision-making
 Determinant of business success
 Measurement of performance
 Basis of planning, co-operation and
control
 Useful to shareholders and investors
P.Jog College of Science & Commerce

Findings,Suggestions & Conclusion

Findings :
• The current ratio of the company fails to attain the standard
ratio and are fluctuating year by year.
• The quick ratio in 2015-16 is said to be unsound and the ratios
from 2016-17 to 2019-20 is said to be good.
• Debt equity ratio shows that the company is almost debt free
which is good for the company.
• Proprietary ratio shows high ratios which indicates safety to
the creditors and the firm has a sound position.
• Solvency ratio (Leverage ratio) shows higher degree of
solvency which indicates that the assets are sufficiently more
than the liabilities of the company.
• Net profit ratio shows increasing trend in the ratios which
means increasing profitability.
 Conclusion

The study highlights that the financial performance of

Britannia Industries Ltd is satisfactory. This study helped
you to know the financial strength and weakness of the
company. Under liquidity ratio, current ratio shows a
negative sign and quick ratio shows a positive sign. The
solvency ratio and the profitability ratio overall shows a
positive signs. Under activity ratio, total asset
turnover ratio and working capital turnover ratio shows a
negative sign, whereas stock turnover ratio shows a
positive sign. The financial statements of the company was
analysed and interpreted with the help of balance sheet
and profit& loss account of last 5 years 2015-20. The
company has a scope of
improvement in the future.
 Suggestions :

• Company must try to use working capital effectively for generating sales

and increasing activity ratio.

• Company has to concentrate on debt capital to have smooth running of

the company.

• The company must start using its assets efficiently as there has been

decrease in the total asset turnover ratio year by year.

• It will be better if the company decreases its current liability to improve

the liquidity position.

• The company can use effective cost control methods for future growth.
P.Jog College of Science & Commerce

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