A Project Report on Britannia A Project Report on Britannia IndustriesIndustries

Submitted by :-

Anup Chakraborty

MBA II Sec A

““I confirm to the view that there are three things of I confirm to the view that there are three things of companies –those that watch things happen, those companies –those that watch things happen, those that make things happen ; and those that wonder that make things happen ; and those that wonder what happened. We certainly wish to make things what happened. We certainly wish to make things happen.” Sunil K Alagh, Managing Director and happen.” Sunil K Alagh, Managing Director and CEO August 1998.CEO August 1998.

Profile Profile •Registered in March 21 1918.

•One of the best known brand, its all about eating healthy for leading a better life.

•Largest company in the Indian food processing industry,whose product range also includes Bread and Cakes.

•Exporter of key Biscuit brands.

•Flagship product “milk Bikkis” and “Marie Gold”.

•CEO of Britannia Industries “Mrs. Vinita Bali”

Main Competitors

ProductProduct CompetitorCompetitorGlucose biscuit

Parle

Cakes Mongiris “western India” advantage of being first brand in this segment.

Bread Modern food, small scale industries.

Cheese/ butter

Amul, Dabur, Nestle

Dairy whitener

Amul , Nestle,Every day, HLL’s Milkana

HistoryHistoryThe company was incorporated in 21st March ,as a public limited company under the Indian Companies Act 1913. The company manufactured bakery and soybean ,export of cashew, kernels marine products, general merchandise items and computer software.•1921-became the first biscuit company in India to install and run a gas oven plant.•Established a factory at “Kasara Pier Road, Mumbai” .In the same year ,the company became a subsidiary of “Peek Fren &co.Ltd”, and further strengthened its position by expanding the factories at Calcutta and Mumbai.

•1939-45- A large part of companies production was diverted to war effort on account of world war II , and 95% of the total capacity was booked for the production of “service biscuit.”•1954- The development of high quality sliced and wrapped bread in India was pioneered by the company and was manufactured at Delhi.•1979- On 3rd October the name of the company was changed from Britannia biscuit CO.LTD to Britannia Industries LTD.•1980- Company Signed 10 year technical collaboration with Nebico PVT. LTD, Nepal.

VisionVision " Dominate the branded dairy market in India with milk and milk products that enhance the health and well

being of the consumer”

““Our vision is that every third Our vision is that every third Indian must be a Britannia Indian must be a Britannia Consumer . We want to build a Consumer . We want to build a universal acceptance for the universal acceptance for the brand Britannia , while brand Britannia , while expanding our business within expanding our business within the bakery segment and in the bakery segment and in other select synergetic food and other select synergetic food and beverage area” to reflect this beverage area” to reflect this new philosophy BIL had new philosophy BIL had changed its Corporate logo and changed its Corporate logo and slogan in 1997slogan in 1997

LaunchesLaunches•1986- Good-day•1989- Circuit and pure Magic•1990- Eliachi Cream , Petit Beure, Milk Bikkis and Fruit Bread.•1992- Little Heart•1993- Fifty-Fifty•1994- Bakers Choice, Thinlite• 1995- Pure Magic•1996 – Marie Gold•1997-Jim Jam, tiger, Chekkers•1999- Flavored Milk Brand “Zip-Sip”

Management TeamManagement Team

Slogans•“Eat healthy think Better” The first two words convey rational benefit while think better has an emotional appeal.•Hindi slogan “swath khao, tan man jagao” it represents India core cultural ethos-good food leads itself to a healthy mind.

Annual Performance (FY 2006) 

Britannia's gross sales turnover increased to Rs 18,179 mn in 2005-06 from Rs 16,154 mn in the previous year, registering a growth of 13%. Operating profit at Rs 1,763 mn increased by 7%, profit before tax and exceptional items at Rs. 1,958 mn declined by 19% against 2004-05 , impacted by the profit on sale of long term investments that accrued to 'other

income' last year.

MilestoneMilestone

•1892- 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•1939-During 1944 sales ramp up by more than eight times to reach Rs.1.36 crores.•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)

•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

MilestoneMilestone

•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 Brand,Pure Magic -Winner of the Worldstar, Asiastar and Indiastar award for packaging

• 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

MilestoneMilestone

ExportsExports•USA

•Ghana

•Saudia Arabia

•Kuwait

•Bahrin

•UAE

•Oman

•Seychelles

•Singapore

Future OutlookFuture Outlook•Sunil K Alagh, Managing Director and CEO(August 1998) of Britannia Industries said “we will look at only those areas where we can be number one or two”•Britannia Industries limited 1996-97 annual report stated

“the need of the hour is to become a low cost producer without compromising on the quality of our product , this will give us the cutting edge in the market place. We are doing this by installing modern process equipments and state-of-the-art packaging systems, focusing on quality, global productivity and developments of new products and processes. Those actions will help us in consolidating our position as a vibrant and stronger player in the core bakery operations”