BRITANNIA Company Overview The story of one of India's favorite 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. 1. 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 Suez Canal 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. 1
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BRITANNIA
Company Overview
The story of one of India's favorite 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.
1. 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 Suez Canal 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'.
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
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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.
For the year ended 31st March 2008, the Company achieved a sales growth of 17.5%
on an expanded base arising from 27.5% growth in the previous year. Net Profit of the
Company increased 77.5 % to Rs 1,910 Mn compared with Rs 1,076 Mn in 2006-07.
Operating Margin increased by 307 basis points to 7.5%.
The Company witnessed all round growth in key categories with Biscuits recording
sales of Rs. 23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn
mark during 2007-08. This business has doubled in two years.
In an intensely competitive biscuit environment, all ³Power Brands² of the Company
recorded double digit growth, with Tiger and Good Day growing in excess of 20%.
The Company¹s innovation forays have successfully addressed new benefit clusters
and NutriChoice Digestive has claimed its position in the health and vitality space.
The Company continues to maintain its leadership edge in 6 out of 7 key product
segments, the only exception being Glucose.
The Company introduced several new and renovated offerings in Tiger, Good Day,
Treat and MarieGold. The health and nutrition platform was buttressed by Tiger
Banana with ³iron-zor², fortified Milk Bikis, renovated MarieGold and Nutrichoice
Digestive. To tap the more indulgent consumers, your Company launched Good Day
Classic Cookies, while continuing to roll out individual consumption packs at the
highly affordable Rs. 5 price point.
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The Bread, Cake and Rusk portfolio was strengthened with the successful relaunch of
Breads, fortified with vitamins and minerals, positioning them firmly as the healthy
start to your day. This innovation combined with relevant consumer activation in key
markets has seen a 30%+ growth in the Bread, Cake and Rusk business.
As a Corporate, Britannia worked for the benefit of all stakeholders - shareholders,
consumers, dealers , suppliers, bankers and employees. It has established an excellent
track record in terms of its financial performance and dividends distributed to its
shareholders. This has been adequately demonstrated with the Company's topline
growing from Rs 10,301 Mn in 1999 to Rs 26,176 Mn in 2008, a growth of 154%
over the last 10 years. The net profit grew even more significantly at 382% from Rs
396 Mn in 1998-99 to Rs 1,910 Mn in 2007-08, giving a CAGR of 19.1%. As at 31st
March 2008, the issued and paid up capital of Britannia amounts to 23, 890,163
equity shares having a nominal value of Rs 10 each. The shareholder base is about
25,300 in number
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MILESTONES OF THE COMPANY
1892 The Genesis - Britannia established with an investment of Rs. 295 in
Kolkata
1910 Advent of electricity sees operations mechanized
1921 Imported machinery introduced; Britannia becomes the first company
East of the Suez to use gas ovens
1939 – 44 Sales rise exponentially to Rs.16,27,202 in 1939 During 1944 sales
ramp up by more than eight times to reach Rs.1.36 crore
1975 Britannia Biscuit Company takes over biscuit distribution from Parry's
1978 Public issue - Indian shareholding crosses 60%
1979 Re-christened Britannia Industries Ltd. (BIL)
1983 Sales cross Rs.100 crore
1989 The Executive Office relocated to Bangalore
1992 BIL celebrates its Platinum Jubilee
1993 Wadia Group acquires stake in ABIL, UK and becomes an equal
partner with Groupe Danone in BIL
1994 Volumes cross 1,00,000 tons of biscuits
1997 Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to
new mission: 'Make every third Indian a Britannia consumer' BIL
enters the dairy products market
1999 Britannia Khao World Cup Jao" - a major success! Profit up by 37%
2000 Forbes Global Ranking - Britannia among Top 300 small companies
2001 BIL ranked one of India's biggest brands No.1 food brand of the
country Britannia Lagaan Match: India's most successful promotional
activity of the year Maska Chaska: India's most successful FMCG
launch
2002 BIL launches joint venture with Fonterra, the world's second largest
dairy company Britannia New Zealand Foods Pvt. Ltd. is born Rated
as 'One amongst the Top 200 Small Companies of the World' by
Forbes Global Economic Times ranks BIL India's 2nd Most Trusted
BrandPure Magic -Winner of the Worldstar, Asiastar and Indiastar
award for packaging
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2003 Treat Duet'- most successful launch of the year Britannia Khao World
Cup Jao rocks the consumer lives yet again 2004 Britannia accorded
the status of being a 'Superbrand' Volumes cross 3,00,000 tons of
biscuits Good Day adds a new variant - Choconut - in its range
2005 Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular
chant! Britannia launched 'Greetings' range of premium assorted gift
packs The new plant in Uttaranchal, commissioned ahead of schedule.
The launch of yet another exciting snacking option - Britannia 50-50
Pepper Chakkar
2007 Britannia industries formed a joint venture with the Khimji Ramdas
Group and acquired a 70 percent beneficial state in the Dubai-based
Strategic Foods International Co. LLC and 65.4% in the Oman-based
Al Sallan Food Industries Co. SAOG
2008 Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day
Classic Cookies', Low Fat Dahi and renovated 'MarieGold'
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COMPANY HISTORY
1918
The Company was Incorporated on 21st March, as a public limited company under
the Indian Companies Act, VII of 1913. The Company Manufacture bakery and
soyabean products, export of cashew Kernels marine products, general merchandise
items and computer software.
1921
The Company obtained a priority of Certificate and imported new machinery thereby
becoming the first biscuit company in India to install and run a gas oven plant.
1924
A new factory was established at Kasara Pier Road in Mumbai. In the same year, the
Company became a subsidiary of Peek, Frean & Co. Ltd., U.K., a leading biscuit
manufacturing company, and further strengthened its position by expanding the
factories at Calcutta and Mumbai.
1939-45
A large part of the Company's production was diverted to war effort on account of
World War II and at times as much as 95% of the total capacity was booked for the
production of Service Biscuit.
1951
19,779 Equity shares issued to acquire the Delhi Biscuit Co. Ltd. In August 1,53,234
Bonus equity shares issued in the proportion 1:1.
1952
The Calcutta Factory was shifted from Dum Dum to spacious grounds at Taratola
Road in the suburbs of Calcutta. During the same year automatic plants were
installed there and later in Mumbai in 1954.
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1954
The development of high quality sliced and wrapped bread in India was pioneered by
the Company and was first manufactured at Delhi. 1,53,234 Bonus equity shares
issued in the proportion 1:2.
1961
Manufacture of bread was started in Mumbai and a new bread bakery was
set up at Delhi in 1965.
2,29,851 Bonus equity shares issued in the proportion 1:2.
1966
In May 1966, 3,06,468 Bonus equity shares issued in the proportion 4:9.
1968
On 14th May, 6,64,014 Bonus equity shares issued in the proportion 2:3.
1970
9,96,021 Bonus equity shares issued in the proportion 3:5.
1976
Britannia bread was introduced in Calcutta and Chennai.18,59,239 Bonus equity
shares issued in the proportion 7:10 in April.
1978
After the issue of shares to the Indian public, the non-resident holding in the
Company was reduced to less than 40%.18,00,000 Equity shares issued at a premium
of Rs 5 per share 4,06,286 shares offered as rights to resident Indian shareholders in
proportion 1:5. 43,714 shares offered to the Company's employees; 1,00,000 shares
to UTI and 50,000 shares each to LIC and GIC were reserved for allotment and
11,50,000 shares offered to the public during January/February.
1979
With effect from 3rd October, the name of the Company was changed from the
Britannia Biscuit Co., Ltd., to Britannia Industries Ltd.
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1980
The Company signed a 10 year technical collaboration agreement with Nebico Pvt.
Ltd., Nepal, for the supply of know-how relating to manufacturing, packaging and
marketing of biscuits and selection of plant and machinery.
1982
25,26,118 Bonus equity shares issued in proportion 2:5.
1986
The turnover increased by 19.4% over the the previous year to Rs 192.15 crores.
Sales of biscuits, in terms of volume, registered a satisfacotry growth. Good Day, a
new biscuit launched during the year met with good market response. Production of
bread at Delhi unit was adversely affected due to launched pure refined cooking oil
under the brand name of Vital. 35,36,565 Bonus shares issued in proportion 2:5
during July 1987.
1987
In (16 months), the total sales turnover increased on an annualized basis by 38.7%
over the previous year. Increase in sales of bakery and soya products divisions and
higher cashew exports helped to realise higher sales. With the introduction of some
more brands during the year, the total biscuit brands of the bakery division reached
27. The soya products division introduced a range of extruded products under the
brand name VITAL FEAST.
1989
The Company launched new brand of biscuit, namely, `CIRCUT'. Another brand
PURE MAGIC was extended nationally and posta badam was added to GOOD DAY
range of biscuits. Bread production and affected for some time at Delhi factory due to
industrial unrest. 61,88,989 Bonus shares issued in proportion 1:2.
1990
Two new brands of biscuits,Elaichi Creamand Petit Beurre were launched. Also, a
new cashew badam variant of the brand Milk Bikis and brand extension of Pure
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magic biscuit Vanilla cream were launched. Fruit bread was launched in Delhi and
was well received.
1991
The Company launched two new speciality brands viz., Britannia milk bread and
Britannia brown bread in Delhi and extended nationally its main brands Petit Beurre
and elaichi cream.On 17th August, the Company handed over to SM Dychem Ltd, its
soya unit at Vidisha, MP.The Company proposed to invest in the equity capital of
Britco Company Pvt. Ltd., a joint venture with JMRPCO Ltd., Hongkong, for
manufacture of beverage bases and essence for Coca Cola, Fanta & Sprite and to
export processed snack foods.
1992
The Company launched a new brand of biscuit, namely `Little Hearts' which carved a
niche in the market.
1993
The Company launched new brand of biscuit, namely, `Fifty-Fifty'.Bread market
remained depressed. To revive the market, the Company launched a speciality brand
viz. Premium Bake' in both Delhi and Mumbai. During the year, the company has
started exporting Basmati Rice under the name `Britannia Indian Pearl'.
1994
During the year, the bakery division launched `Bakers Choice' a sweet biscuit and
Thinlite' a light semi-sweet biscuit aimed at fitness concious consumers.
1995
Under the `Pure Magics' Umbrella, the company launched a new sandwich cream
biscuit with two-in-one flavour viz. double cream and this was well received in the
market. In the cake market, under the premium segment, the company launched with
Groupe Danone's technological input a Swissroll Cake Mini Roule which was also
met with good response.
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1996
Mariegold biscuits registered quantum growth in volumes and milk bikis milk cream
launched during the year was well received. Despite general slow down in the
economy the company's profits improved.
1997
The Biscuit industry has been dereserved which would not only remove restriction on
increasing capacity but would also provide opportunities of growth through new
products and efficient production systems. The Company undertook to diversify into
cheese and dairy whitner. The Company launched `Tiger' range of biscuits for mass
market category, `Jim-Jam' and Chekkers' in the premium segment. The Company
also launched Butter in Delhi during the year.
Britannia Industries (BIL) is one of the largest bakery in the private sector and
a household name in food products. Britannia Industries Ltd (BIL) will shortly enter
the cheese and milk products market with an alliance proposed between itself and the
Mumbai-based Dynamix Dairy Ltd.
Britannia Industries Ltd is all set to launch a new corporate identity and a total
revamp of its product portfolio, with strategic inputs from an international strategic
design and brand repositioning company - Shining Strategic Design.
1998
Food major Britannia Industries Ltd (BIL) has signed a wage agreement with the
Maharashtra General Kamgar Union (MGKU), providing an average wage increase
for 1,000 workers employed in the biscuit manufacturing unit at Reay Road, Mumbai.
The company has launched Half/Half, a soft cake filled with cream in two variants,
chocolate-vanilla and vanilla-orange. Half/Half comes in a twin-cake pack (Rs.6) and
a tray pack containing five cakes. Britannia Industries Ltd has launched a festival
offer for
Britannia Dairy Whitener in Kerala.
A Ind AAA rating has been signed to the Rs.100-crore secured non-
convertible debenture issue from Britannia Industries Limited (BIL).
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1999
Britannia Industries Ltd has rolled out its flavoured milk brand `Zip-Sip' in
tetrapaks. Zip-Sip has been launched in Mumbai and some markets in the South.
Britannia Industries, launching the country's first branded flavoured milk is another
step towards its goal of becoming a dairy-products giant. In a move meant to sharply
increase its India-profile, knowledge major' Encyclopaedia Britannica Inc plans to
come out - for the first time - with India and south Asia-specific volumes targeted at
school children as well as institutions and the general `knowledge-seeker'.
2000
Britinnia Industries has launched consumer promotion scheme Britannia Khao,
Cricketer Ban Jao' on May 1st.
Britannia Industries, in its second coming in the Indian dairy market under the
Milkman' brand, is introducing a range of products many in desi flavours to woo the
Indian consumer.The Company has launched Vita Mariegold, a semi-sweet biscuit
which reportedly has 10 essential vitamins, milk protein and 58 cereals.
Britannia's Milk Bikis Funland biscuits an innovative extension of the Milk Bikis
brand.
The Industry is set to start bread-manufacturing factories in Kochi, Hyderabad and
Chennai to tap the region's market potential.The Company has become the first
company to take its products to the Net in the form of a video file.
Britannia Industries has launched Britannia Milkman Butter, a product under the
Milkman brand.The Company has appointed Tata Energy Research Institute (Teri) for
a power audit.
FITCH rating India Pvt. Ltd has reaffirmed the Ind AAA rating assigned to the Rs
1000 million non convertible debenture program of Britannia Industries Ltd.
The Company has lauched two new dairy products Milkman Cold Coffee and
Milkman Sweet lassi.
Britannia Industries Ltd. has introduced a new range of traditional namkeens called
Britannia Snaz in Mumbai.
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2001
Britannia Industries has launched Britannia Milkman Milk in Delhi. - Biscuits major
Britannia Industries will fund its in-principle agreement to acquire 49 per cent of
Kwality Biscuits through internal accruals.
2002
Britannia Industries Ltd announced on March 26, 2002 that it has entered into a joint
venture with the Fonterra Cooperative Group, New Zealand's biggest company and
one of the leading diary co-operative groups in the world. Britannia's new COO is
Nikhil Sen.
2003
Board of Directors of Britannia Industries Ltd has passed a resolution to terminate the
employment of Mr S K Alagh as Managing Director of the company with immediate
effect.
The management of Britannia Industries has roped in John Miller, a Danone
representative, as additional director on its board.
-Britannia New Zealand Foods, a joint venture of Britannia Industries and Fonterra
Co-operative group of New Zealand has launched Britannia MilkMan fresh milk.
Britannia's Non-convertible Debentures have been rated AAA by Fitch Rating India
as Stable Outlook.Britannia Industries has appointed Mr.Nikhil Sen,Chief Operating
Officer as the manager of the company
.
2004
Britannia Industries Ltd has informed that pursuant to the approval of the shareholders
of the Company at the AGM held on August 08, 2003 and the subsequent application
to the Cochin Stock Exchange Ltd., the said stock exchange has delisted the securities
of the Company with effect from November 15, 2003.
-Britannia Industries Ltd reviews marketing alliance with the Kolkata-based Thacker
Dairy Products Pvt Ltd
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2005
Britannia New Zealand launches health drink for adult
2006
Britannia Industries Ltd has forged a strategic alliance with CCD Daily Bread Pvt Ltd
a Bangalore based Company engaged in manufacturing and retailing of premium
breads, cakes and high end ready to eat foods and snacks
Britannia Industries Ltd has appointed Mr. Stephan Gerlich as a Director.
Britannia Industries Ltd has informed that Mr. Durgesh Mehta has joined the
Company as the Chief Financial Officer (CFO) with effect from November 16, 2006.