Britannia Word Pro

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A HISTORY OF BRITANNIA

SUBMITTED BY

SHAHEED PASHA

DSBSPGDMA1154

TO

MS GEETHA TOSHI

DAYANANDA SAGAR BUSINESS SCHOOL

KUMARASWAMY LAYOUT

BANGALORE - 560078

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CONTENT

1.HISTORY

2.MANAGEMENT TEAM

3.FINANCIAL PERFORMANCE

4.GROWTH AND PROFITABILITY5.GRAPHS

6.PRODUCTS

7.BRAND EQUITY

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HISTORY

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 SuezCanal 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'.

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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 Maska-Chaska 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 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.

Britannia Industries Limited is an Indian company based in Kolkata that

is famous for its Britannia and Tiger brands of biscuit, which are popular

throughout the country. Britannia has an estimated 38% market share.

The Company's principal activity is the manufacture and sale of biscuits,

bread, rusk, cakes and dairy products.

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Britannia Industries Limited

Type Public

(BSE: 500825)

(NSE: BRITANNIA)

Industry Food

Founded 1892

Headquarters Kolkata, India

Number of locations 300 stores (2000)

Area served India

Key people Nusli Wadia, Chairman

Ms. Vinita Bali, Managing Director

Products BiscuitsTiger, Britannia,

milk

Revenue Rs 3,401.4 crores

[$ 746.8 million] (2009-10)

Net income Rs 116.5 crores

[$ 25.58 million] (2009-10)

Owner(s) Danone, Kalabakan Investments

Parent Wadia Group,

Associated Biscuits Intl. Holdings

Website www.britannia.co.in

MANAGEMENT TEAM

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Name Designation

Mr. Nusli Neville Wadia Chairman

Ms. Vinita Bali Managing Director

Mr. A.K.Hirjee Director

Dr. Ajai Puri Director

Mr. Avijit Deb Director

Mr. Jeh N Wadia Director

Mr. Keki Dadiseth Director

Mr. Nasser Munjee Director

Mr. Ness Nusli Wadia Director

Mr. Nimesh N Kampani Director

Mr. Pratap Khanna Director

Mr. S.S.Kelkar Director

Dr. Vijay L. Kelkar Director

FINANCIAL PERFORMANCE

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The year witnessed unprecedented commodity inflation, particularly in

sugar, wheat and milk products, in the latter half of the year, coupled

with a fiercely competitive environment. This restrained your Companys

ability to correct selling prices and had a high adverse impact on

margins and profitability. Consequently, whilst your company added Rs

2817 MM to gross sales, Profit from Operations declined by Rs 778 MM,

excluding provisions for certain one-off items aggregating Rs 258 MM

for certain disputes relating to a long term lease, excise duty demand

and obligation arising from a past acquisition. Net cash flow from

operating activities was Rs 2353 MM, achieved by a disciplined

approach to managing working capital. Exceptional items for the year

include Rs 329 MM towards amortization of VRS costs and provision of

Rs 200 MM for losses arising from Sri Lanka operations and closure.

Earnings Per Share was Rs 48.77. The tables below show trends in

performance across key parameters:

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GROWTH AND PROFITABILITY

The company is growing at a steady rate, and is currently profitable.

Between 1998 and 2001, the company's sales grew at a compound

annual rate of 16% against the market, and operating profits reached

18%. More recently, the company has been growing at 27% a year,

compared to the industry's growth rate of 20%.

At present, 90% of Britannias annual revenue ofRs2,200 crore comes

from biscuits.

GROWTH 2010-11 2011-12

SALES 23.8% 21.4%

PAT 24.7% 27.3%

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PRODUCTS

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BRAND EQUITY

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THANK YOU