INDUSTRY ANALYSIS REPORT

ON

FMCG SECTOR

Submitted in partial fulfillment for Business Practice I course

MBA- I Honours

(Batch: 2014-2015)

FACULTY OF MANAGEMENT

Pacific Academy of Higher Education and Research

Pacific Hills, Airport Road

Pratap Nagar Extension

Udaipur 313003

Submitted by :

Ekta Agrawal

MBA- HONOURS

INDEX

SR. NO. PARTICULARS PAGE NO.

1. Executive Summary 1

2. Introduction of Industry/Sector 2

3. List of 25 Industries/Sectors 4

4. Introduction of FMCG Industry 9

5. List of Companies under FMCG Industry 10

6. List of Five Companies Under Study 10

7. Analysis of Companies 11

7.1 Hindustan Unilever 11

7.2 ITC 26

7.3 Nestle India 39

7.4 Britannia 48

7.5 Cadbury India/Mondelez International 59

8. Key Learning’s 65

9. Conclusion 66

EXECUTIVE SUMMARY

Products which have a quick turnover, and relatively low cost are known as Fast

Moving Consumer Goods (FMCG). FMCG products are those that get replaced within

a year. Examples of FMCG generally include a wide range of frequently purchased

consumer products such as toiletries, soap, cosmetics, tooth cleaning products, shaving

products and detergents, as well as other non-durables such as glassware, bulbs,

batteries, paper products, and plastic goods. FMCG may also include pharmaceuticals,

consumer electronics, packaged food products, soft drinks, tissue paper, and chocolate

bars.

India’s FMCG sector is the fourth largest sector in the economy and creates

employment for more than three million people in downstream activities. Its principal

constituents are Household Care, Personal Care and Food & Beverages.

The total FMCG market is in excess of Rs. 85,000 Crores. It is currently growing at

double digit growth rate and is expected to maintain a high growth rate. FMCG

Industry is characterized by a well-established distribution network, low penetration

levels, low operating cost, lower per capita consumption and intense competition

between the organized and unorganized segments.

INTRODUCTION OF INDUSTRY

Industry is the production of a good or service within an economy. Manufacturing industry

became a key sector of production and labour in European and North American countries during

the Industrial Revolution, upsetting previous mercantile and feudal economies. This occurred

through many successive rapid advances in technology, such as the production of steel and coal.

Following the Industrial Revolution, perhaps a third of the world's economic output is derived

from manufacturing industries. Many developed and many developing/semi-developed countries

(People's Republic of China, India etc.) depend significantly on manufacturing industry.

Industries, the countries they reside in, and the economies of those countries are interlinked in a

complex web of interdependence.

Classification of industry

Industries can be classified in a variety of ways. At the top level, industry is often classified into sectors: Primary or extractive, secondary or manufacturing, and tertiary or services. Some authors add quaternary (knowledge) or even quinary (culture and research)

sectors. Over time, the fraction of a society's industry within each sector changes. They are-

Sector Definition

Primary

This involves the extraction of resources directly from the Earth; this includes

farming, mining and logging. They do not process the products at all.

They send it off to factories to make a profit.

Secondary

This group is involved in the processing products from primary industries. This

includes all factories—those that refine metals, produce furniture, or pack

farm products such as meat.

Tertiary This group is involved in the delivery and sale of goods. They include truck drivers

and retail workers, for example.

Quaternary This group is involved in the research of science and technology and other high level

tasks. They include scientists, doctors, and lawyers.

INTRODUCTION OF COMPANY

A company is an association or collection of individuals, whether natural persons, legal persons,

or a mixture of both. Company members share a common purpose and unite in order

to focus their various talents and organize their collectively available skills or

resources to achieve specific, declared goals. Companies take various forms such as:

Voluntary associations which may nonprofit organization

A group of soldiers

Business entities with an aim of gaining a profit

Financial entities and banks

A company or association of persons can be created at law as legal person so that the company in

itself can accept Limited liability for civil responsibility and taxation incurred as

members perform (or fail) to discharge their duty within the publicly declared "birth

certificate" or published policy because companies are legal persons, they also may

associate and register themselves as companies - often known as a corporate group.

When the company closes it may need a "death certificate" to avoid further legal

obligations.

LIST OF 25 INDUSTRIES/SECTORS

INDUSTRY 5 COMPANIES LOCATION

CEMENT INDUSTRY Binani Cement Ltd Kolkata, West Bengal

JK Lakshmi Cement Ltd Sirohi Dist, Rajasthan

UltraTech Cement Limited Mumbai, Maharashtra

Ambuja Cements Limited Junagadh ,Gujarat

Shree Cement Ltd. Beawar, Rajasthan

PAINT INDUSTRY Kansai Nerolac Paints Ltd. Mumbai, Maharashtra

Dulux India Paints Gurgaon ,Haryana

Asian Paints India Santacruz (E), Mumbai

Berger Paints Kolkata, West Bengal

Shalimar Paints Mumbai, Maharashtra

BANKING INDUSTRY State Bank of India Mumbai, Maharashtra

ICICI Bank Ltd. Vadodara, Gujarat

Axis Bank Ltd. Ahmedabad, Gujarat

HDFC Bank Ltd. Mumbai, Maharashtra

IDBI Bank Ltd Mumbai, Maharashtra

AUTOMOBILE INDUSTRY

Mahindra & Mahindra Limited Mumbai, Maharashtra

Maruti Suzuki India Ltd New Delhi, Delhi

Tata Motors Limited Mumbai, Maharashtra

Swaraj Mazda Ltd Nawanshahar, Punjab

Ashok Leyland Limited Chennai, Tamil Nadu

PAPER INDUSTRY Agio Paper & Industries Ltd Kolkata, West Bengal

Bio Green Papers Ltd. Hyderabad, Andhra Pradesh

J K Paper Limited Tapi, Gujarat

Rainbow Papers Ltd Ahmedabad, Gujarat

Genus Paper Products Ltd. Moradabad, Uttar Pradesh

POWER (ENERGY) SECTOR

Krisons Electronic Systems Ltd. New Delhi, Delhi

Star Delta Transformers Ltd Bhopal, Madhya Pradesh

Maurya Industrial Resources Ltd. New Delhi, Delhi

Globus Power Generation Ltd. New Delhi, Punjab

Epic Energy Ltd. Mumbai, Maharashtra

TELECOM SECTOR Bharti Airtel New Delhi, Delhi

Tata Communications Ltd Mumbai, Maharashtra

Spice Communications Ltd. New Delhi, New Delhi

Reliance Communications Ltd. Mumbai, Maharashtra

Idea Cellular Ltd. Gandhinagar, Gujarat

COAL INDUSTRY Neyveli Lignite Coorporation Ltd. Chennai, Tamil Nadu

Eastern Coalfields Limited Burdwan, W.B.

Coal India ltd. Kolkata, West Bengal

Singareni Collieries Company Ltd. Hyderabad

Mahanadi Coalfields ltd. Brajraj Nagar, Brajrajnagar

REALTY/ESTATE SECTOR

DLF Limited Gurgaon, Haryana

Pearl Apartments Ltd. New Delhi, Delhi

Alchemist Realty Ltd Mumbai, Maharashtra

Omaxe Limited Gurgaon, Haryana

Phoenix Township Ltd. Panaji, Goa

PHARMACEUTICAL SECTOR

Cipla Ltd. Mumbai, Maharashtra

Dr. Reddy's Laboratories Limited Hyderabad, Andhra Pradesh

Wyeth Ltd. Mumbai, Maharashtra

GlaxoSmithKline Pharmaceuticals

Limited

Mumbai, Maharashtra

Novartis India Limited Mumbai, Maharashtra

OIL & GAS SECTOR Indian Oil Corporation Ltd. New Delhi, Delhi

Bharat Petroleum Corporation

Limited

Mumbai, Maharashtra

Oil India ltd. Noida

Oil and Natural gas Corporation Dehradun

Gujarat State Petroleum Corporation

Gandhinagar, Gujarat

STEEL INDUSTRY Jindal Steel and Power Limited Hisar, Haryana

Bhushan Steel Ltd. Mumbai, Maharashtra

Tata Steel Limited Mumbai, Maharashtra

Steel Authority of India Limited New Delhi, Delhi

Steelco Gujarat Ltd Bharuch, Gujarat

NON FERROUS METAL INDUSTRY

EXCEPT ALUMINIUM

Novelis Pune

Mcreller Industry Incorporation Mumbai, Maharashtra

ALCOA New Delhi, Delhi

Encore Wire Corporation Mumbai, Maharashtra

Olin Corporation New Delhi, Delhi

IT SECTOR Infosys Technologies Ltd. Bengaluru, Karnataka

TECH MAHINDRA Mumbai, Maharashtra

Tata Consultancy Services Mumbai, Maharashtra

Aplab Ltd. Thane, Maharashtra

HCL Technologies Ltd. New Delhi, Delhi

ALUMINIUM SECTOR HINDALCO Mumbai, Maharashtra

NALCO Bhubaneswar

PG Foils Pali, Rajasthan

Hind Aluminium Mumbai, Maharashtra

Sacheta metals Mumbai, Maharashtra

TYRE SECTOR Apollo Tyres Gurgaon, Haryana

MRF Tyres Chennai

Ceat Tyres Mumbai, Maharashtra

Goodyear Faridabad

Balkrishna Industry Thane, Maharashtra

TEXTILE INDUSTRY Denim Fashions Ltd. Vadodara, Gujarat

Kavita Fabrics Ltd. Surat, Gujarat

The Birla Cotton Spinning &

Weaving Mills Ltd.

New Delhi, Delhi

Binny Mills Ltd. Chennai, Tamil Nadu

Reid & Taylor (India) Ltd Mumbai, Maharashtra

FMCG SECTOR ITC Limited Kolkata, West Bengal

Marico Ltd Mumbai, Maharashtra

Britannia Industries Ltd Kolkata, West Bengal

Nestle India Ltd New Delhi, Delhi

Hindustan Unilever Limited Mumbai, Maharashtra

HEALTHCARE

SECTOR

GlaxoSmithKline Consumer

Healthcare Ltd

Nabha, Punjab

Piramal Healthcare Ltd Mumbai, Maharashtra

Procter & Gamble Hygiene and

Health Care Limited

Mumbai, Maharashtra

Amrutanjan Health Care Ltd. Chennai, Tamil Nadu

Cadila Healthcare Limited Ahmedabad, Gujarat

CONSUMER

DURABLES SECTOR Samsung India Electronics Pvt. Ltd. Gurgaon, Delhi

Whirlpool Gurgaon, Delhi

Philips India Limited Chennai, Tamil Nadu

LG Electronics Greater Noida, U.P.

Godrej Industries Limited Vikhroli, Mumbai

PSU SECTOR Bengal Chemicals &

Pharmaceuticals

Kolkata, West Bengal

Central Warehousing Corporation Hauz Khas, New Delhi

Eastern Coalfields Burdwan, W.B.

Bharat Earth Movers Byculla, Mumbai

Central Inland Water Transport

Corporation

Kolkata, West Bengal

AVIATION SECTOR Kingfisher Airlines Ltd Bengaluru, Karnataka

SpiceJet Ltd. Gurgaon, Haryana

Jet Airways (India) Ltd. Mumbai, Maharashtra

Indigo/Deccan Aviation ltd. Gurgaon, Haryana

Air Charter India New Delhi, Delhi

HOTEL

(HOSPITALITY) SECTOR

Hotel Leela Venture Limited Mumbai, Maharashtra

Taj GVK Hotels and Resorts Hyderabad

Royal Orchid Bangalore, Karnataka

Jindal Hotels Vadodara, Gujarat

ITC Hotels New Delhi, Delhi

ACCOUNTING COMPANY

(INCLUDING BIG-4)

Ernst & Young Kolkata, West Bengal

KPMG Mumbai, Maharashtra

Arthur Anderson Dublin, Republic of Ireland

PWC Mumbai, Maharashtra

Delloite Ahmedabad, Gujarat

INTRODUCTION OF FMCG INDUSTRY

Fast Moving Consumer Goods (FMCG), also known as Consumer Packaged Goods (CPG), are products that are sold quickly at relatively low cost. Though the absolute profit made on

FMCG products is relatively small, they generally sell in large quantities, so the cumulative profit on such products can be large.

Examples of FMCG generally include a wide range of frequently purchased consumer products such as toiletries, soap, cosmetics, teeth cleaning products, shaving products and detergents, as

well as other non-durables such as glassware, light bulbs, batteries, paper products and plastic goods. FMCG may also include pharmaceuticals, consumer electronics, packaged food products and drinks, although these are often categorized separately.

FMCG have a short shelf life, either as a result of high consumer demand or because the product

deteriorates rapidly. Some FMCGs—such as meat, fruits and vegetables, dairy products, and baked goods—are highly perishable. Other goods such as alcohol, toiletries, pre-packaged foods, soft drinks, and cleaning products have high turnover rates. An excellent example is a

newspaper—every day's newspaper carries different content, making one useless just one day later, necessitating a new purchase every day.

Main characteristics of FMCGs:

From the consumers' perspective: o Frequent purchase

o Low involvement (little or no effort to choose the item – products with strong brand loyalty are exceptions to this rule)

o Low price From the marketers' angle:

o High volumes

o Low contribution margins o Extensive distribution network

o High stock turnover

LIST OF THE COMPANIES UNDER THE FMCG SECTOR

Hindustan Unilever

ITC Ltd.

Pidilite Industries

Amul

Godrej Consumer Products Limited

Dabur India Ltd.

Emami

Colgate Palmolive India Ltd.

Zydus Wellness

Britannia

GlaxoSmithKline Consumer Healthcare Ltd. (India)

Wipro Consumer Care & Lighting Ltd.

Marico

CavinKare

Parle Agro

Haldiram's

Nirma

Himalaya Healthcare Ltd

Nestle India

Cadbury India

5 Companies under Study

Hindustan Unilever

ITC Ltd.

Britannia

Cadbury India/Mondelez International

Nestle India

ANALYSIS

HINDUSTAN UNILEVER LIMITED

HISTORY OF HINDUSTAN UNILEVER LIMITED

1888 - Sunlight soap introduced in India.

1895 - Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata,

and Karachi.

1902 -Pears soap introduced in India.

1903 - Brooke Bond Red Label tea launched.

1905 - Lux flakes introduced.

1913 -Vim scouring powder introduced.

1914 - Vinolia soap launched in India.

1918 - Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens,

Verschure Creameries, and Hartogs.

1922 - Rinso soap powder introduced.

1924 - Gibbs dental preparations launched.

1925 - Lever Brothers gets full control of North West Soap Company.

1926 - Hartogs registers Dalda Trademark.

1930 - Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie,

less than four years after William Hesketh Lever launched Sunlight Soap in England,

his newly-founded company, Lever Brothers, started exporting the revolutionary

laundry soap to India. By the time the company merged with the Netherlands-based

Margarine Unie in 1930 to form Unilever, it had already carved a niche for itself in the

Indian market. Coincidentally, Margarine Unie also had a strong presence in India, to

which it exported Vanaspati (hydrogenated edible fat).

1931 - Vanaspati manufacturing company registered on November 27; Sewri factory site bought.

Vanaspati manufacture starts at Sewri.

1933 - Incorporated on 17th October, under the name of a Lever Brothers (India) Pvt., Ltd.

(LBIL) was the wholly owned subsidiary of Unilever Ltd. London, UK; Lever

Brothers India Limited (LBIL) incorporated in India to manufacture Soaps.

1934 - Soap manufacture begins at Sewri factory in October; North West Soap Company's

Garden Reach Factory, Kolkata rented and expanded to produce Lever brands.

1939 - Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati

as a brand.

1943 - Personal Products manufacture begins in India at Garden Reach Factory.

1944 - Reorganization of the three companies with common management but separate marketing

operations.

1947 - Pond’s Cold Cream launched.

1957 - Unilever Special Committee approves research activity by Hindustan Unilever.

1958 - Research Unit starts functioning at Mumbai Factory.

1959 - Surf launched.

1962 - Formal Exports Department starts.

1963 - Head Office building at Backbay Reclamation, Mumbai opened.

1964 - Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk

shampoo launched.

1965 - Signal toothpaste launched; Indian shareholding increases to 14%.

1966 - Lever's baby food, more new foods introduced; Nickel catalyst production begins.

1967 - Hindustan Unilever Research Centre opens in Mumbai.

1969 - Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched

1971 - Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever

Special Committee - plan approved; Clinic shampoo launched.

1975 - Ten-year modernization plan for soaps and detergent plants; Jammu project work begins;

statutory price control on Vanaspati and baby foods withdrawn; Close-up toothpaste

launched.

1976 - Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins

functioning.

1977 - On February synthetic detergents plant in Jammu was commissioned. Plant for

manufacture of linalool from betapinere, pheneyl ethyl alcohol and eaters

commissioned at Jammu.

1983- Fair & Lovely skin cream launched.

1983 - A new plant for synthetic detergents in Chindwara district of M.P commissioned Co. took

on lease a detergent and toilet soap factory at the request of Punjab govt. owned by a

joint sector Co. Stephan Chemicals Ltd.; A new fine chemical unit was commissioned.

1984- Foods, Animal Feeds businesses transferred to Lipton.

1986 - Lux toilet soap was launched.; Agri-products unit at Hyderabad starts functioning - first

range of hybrid seeds comes out; Khamgaon Soaps unit and Yavatmal Personal

Products unit start production.

1992- Lifebouy Personal and Breez soaps launched.

1992- Entered in dental product market by introducing Pepsodent, Mentadent G etc.; A factory

to manufacture leather garments and other leather based products including wool-on-

leather garments and wool-on-leather was set up in Chennai.; The Company undertook to

set up a large scale aquaculture centre at Tanjavur in Tamil Nadu for farming and

processing catfish for the U.S. markets in technical collaboration with FFDA, Florida, USA

who also provide a full buy-back guarantee.

1993- Temporary shutdown of Haldia Plant due to duty free import of DAP. Entered skin

product market by introducing fair & lovely and hair care product by introducing sunsilk

salon treatment & clinic super gel. Close-up confident toothbrush also introduced on the

same year.; During the year Company entered into joint selling agreement with Ponds India

Ltd. for distributing their products.; Company set up rice millong facilities in the free trade

zone of Kandla.; Company entered male toiletries segment with the launch of Denim after

shave & Ean Dee Toilette.; Wool-on-leather and wool-on-garment plant was

commissioned; The Company entered into joint venture agreement with Kimberly-Clark

Corporation, USA to promote a joint company `Kimberly-Clark Lever Ltd.' with 50%

equity participation by the company.

1994- In technical collaboration with Shinto Corporation, a subsidiary of Toya Suisan, Japan,

the Co. undertook to set up a Surimi (Fish Paste) project at an initial cost of Rs.15 crores

near Veraval in Gujarat State. The collaborators provided 100% buy-back guarantee for

the output of this unit which seeks to upgrade the hitherto wasted fishery resources of the

country. The plant was commissioned in the second quarter; The Company entered into

joint venture agreement with Lakme Lever Ltd. to undertake the manufacturing and

distribution of colour cosmetics and other personal care products; The Company also

entered into an agreement with S C Johnson & Son USA, for manufacture and sales of

insecticides such as insect repellents, disinfectants and similar products in India; The

Company received the President's Award for Outstanding performance in Agri

Commodities for the year 1994-95;

1996 - The Company entered into joint venture S C Johnson & Son USA. The Joint Venture named Lever

Johnson Consumer products Pvt. Ltd.

1997 - Company received the Solvent Extractors' Association Award for being the highest

exporter of Rice Bran Extractions during 1996-97.

1998- The Directors of Hindustan Lever Limited at their meeting held on 16th March,

considered and approved the proposal for amalgamation of Ponds India Limited with

Hindustan Lever Limited. HLL's tea business is among the biggest in the world; The

Department of Agriculture and co-operation under the ministry of agriculture has

directed Lever Johnson (Consumer Products) Ltd., a subsidiary of Hindustan Lever

Limited, and Icon Household Products Pvt. Ltd. to withdraw from the market, the

mosquito mat repellent raid from Domex on charges of having grossly violated the

conditions of registration; HLL has also taken several initiatives in raising awareness of

oralcare and hygiene in India. One of these programmes is the free dental check-up

programme, which is conducted in collaboration with the Indian Dental Association;

Unilever set up the Hindustan Vanaspati Manufacturing Company, its first subsidiary in

India, and established two more subsidiaries, lever Brothers India Ltd. and United

Traders Ltd; Hindustan Lever Ltd (HLL) has signed the Fuel Supply Agreement (FSA)

with public sector Indian Oil Corporation (IOC) for the entire fuel and lubricant

requirements of its manufacturing unit in Orai. This the first time that two giants, one

from public sector and other from the private sector, have joined hands as partners in

progress, and also augurs future partnerships between IOC and HLL; Hindustan Lever is

the largest manufacturer of Lifebuoy, Lux, Breeze, Rexona and Haman in the country,

under a division christened the personal products division;

1998 - Group company, Pond's India Ltd, merges with HLL. HLL acquires Lakme brand, factories and

Lakme Ltd's 50% equity in Lakme Lever Ltd. HLL acquires manufacturing rights of Kwality

icecream. Appellate Authority of Government of India absolves HLL of insider trading

charges, made by SEBI in 1997, in the BBLIL merger.

1999- The Company will be the largest e-tailer in the next two years; The company has

entered into a five-year wet lease agreement with the Hyderabad-based Premier

Explosives (PEL) to operate the latter's mushroom farms near Hyderabad; The

Company has launched a `ready to drink' (RTD) tea brand Lipton Ice Tea in Hyderabad

with lemon and mango flavours; The Company has launched a new brand of toopaste –

Aim; The Company has unveiled the country's first liquid detergent for daily washing

needs Surf Excel Liquid detergent in the Indian Market; The Company launched the

International Lux Skincare range, Sunscreen Formula; The Company has launched Surf

Excel Liquid Detergent, for daily washing of clothes; HLL markets more than 110

brands, in 950 packs the products are sold in one million retail outlets, directly covering

India's entire urban population and about 50,000 villages; FMCG major Hindustan

Lever Ltd will mark its entry into the softy ice cream segment by setting up softy kiosks

in all major metros starting with Chennai; The Company has re launched its tea brand,

Brooke Bond Red Label, with Assam Super Tasters; Hindustan Lever Ltd's Pepsodent

toothpaste has introduced games at McDonald's outlets; The Company has introduced

New Hi-Power Vim Bar with enhanced grease cutting power and lime juice; The

Company has launched Aim toothbrush in South India; The Company has launched an

innovative scheme with gold coins embedded in tablets of its Lux brand of soap; The

Company has launched the new Nutririch Fair & Lovely fairness reviving lotion.

2000– HLL has launched the new Fair & Lovely Fairness Soap -- which will help make the

skin fairer, safely and gently; Hindustan Lever's, Pond's Magic Deo Talc, has been

launched with a new enhanced deodorant protection; The Company has launched

International Rexona 24 HR Intensive, in India; The Company has launched Pond's

Light n' Fresh talc.

2001The Company has launched the new Lakme Sunscreen Lotion with ultraviolet rays

guard and Alpine Mint.

2002- The Board of Hindustan Lever Ltd (HLL) had approved the transfer of its undertaking

engaged in seeds business to its subsidiary Paras Extra Growth Seeds Ltd; The company

has signed an agreement with ICI India, a subsidiary of ICI plc, UK, for sale of Nickel

Catalyst business and Adhesives business, a sub-unit of Specialty Chemicals Division of

the company's Chemicals and Agri operations for a consideration of Rs.21 crore and Rs

9 crores respectively.

2003- Ties up with Pepsi for distribution, signs a memorandum of understanding with Pepsi, to

leverage each other’s strengths in distribution. The agreement provides Pepsi access to

the HLL’s institutional accounts; Sells GLUCOVITA, a brand in the glucose powder

market, to Wipro; Unilever hands over global marketing of Pears to HLL; Relaunches

Surf Excel as a low-foam detergent to target markets facing severe water crisis; Begins

supplying Unilever's tea bags;; Entered into an agreement with Beeyu Overseas Ltd

(BOL) which agreed to market coffee in Poland; HLL extended its Knorr Annapurna

range into soup powders at Rs 5. Sporting flavours such as Tomato Tease, Spicy

Vegetable, Chicken Punch and Peppery Chicken; The company has introduced a new

mango drink 'Mr Fruit'.

2003-Relaunches Rin Shakti Powder and Rin Shakti Bar; HLL unveils new festival package

for its coffee brands; Hindustan Lever Ltd tied up with the private sector power utility,

CESC Ltd, for sampling of Pepsodent toothpaste. `Touchbase with Kolkata' project said

that with its April bills CESC would be sending out 14.1 lakh covers carrying the

Pepsodent label and a small 15 gm tube of toothpaste with a new flavor; HLL to ink

MoU with Pepsi; Hindustan Lever Ltd has introduced its new active Gel Close Up in the

market; HLL unveils 2 imported products under Lakme brand; HLL enters into kids'

personal care market; HLL's Modern Food unveils diet bread; Launches Dove Ultra

Moisturizing Body Wash.

2004-HLL introduce iced tea in glass bottles; Brookefields food operations moved to

Mumbai.

2007 -Hindustan Lever Ltd. has appointed Mr. Ashok K. Gupta as Officer who is in default for

the purposes of Compliance with section 5(f) of the Companies Act, 1956; Company

name has been changed from Hindustan Lever Ltd to Hindustan Unilever Ltd.

2009- Hindustan Unilever on Jan 26 said it has appointed R Sridhar as its Chief Financial

Officer by succeeding D Sundaram. Sridhar was serving as the Vice-President,

Finance and Controller for Unilever (Asia), Africa and Central & Eastern Europe

region. He joined HUL in 1989; Hindustan Unilever decided to license 'Lakme' and

'Lever Ayush', brands to its subsidiary, Lakme Lever Private Limited, for the Beauty

and Wellness services business.

2010- Hindustan Unilever said it exited from BPO firm Capgemini Business Services

India by selling its remaining 49% stake to IT consultancy firm Cap Gemini SA. The

India born, Manvinder Singh Banga who is better known as Vindi Banga, will leave

Unilever with service of 33years to the Company in May this year; Fast Moving

Consumer Goods major Hindustan Unilever Ltd launched a new affordable variant of

water purifier brand Pureit, known as ‘Pureit Compact’ with a price tag of Rs 1,000

in the Indian market; Hindustan Unilever Ltd. (HUL) has stepped forward to divest

part of its stake in Hindustan Field Services (HFS).

2011- HUL comes up with ‘Bru World Café; With the objective of doubling the sales by

2015, the FMCG major, Hindustan Unilever (HUL) is eyeing at strategies, which

includes re-launches, moves ahead with its plans, Hindustan Unilever has re-

launched its popular Lifebuoy talcum powder brand.

2012-HUL taps banks and telecom firms to penetrate deeper into rural India; HUL to enter

into agreement with Unilever to market Brylcreem in India; Hindustan Unilever

Limited (HUL) and entities of Piramal Realty (Ajay Piramal Group) have signed an

agreement for assignment of HUL's leasehold rights of the land and building named

Gulita situated at Worli Sea Face, Mumbai.

CORPORATE INFORMATION

PRODUCTS OF HINDUSTAN UNILEVER LIMITED

FOOD AND DRINK

NAME DESIGNATION

Mr. Harish Manwani Chairman

Mr. Sanjiv Mehta CEO and Managing Director

Mr. P.B. Balaji Chief Financial Officer

Mr. Pradeep Banerjee Chief Executive-Supply Chain

Mr. Aditya Narayan Independent Director

Mr. S. Ramadorai Independent Director

Mr. O.P.Bhatt Independent Director

Dr. Sanjeev Misra Independent Director

HOME CARE

PERSONAL CARE

WATER PURIFIER

PUREIT

HINDUSTAN UNILEVER’S SHAREHOLDING PATTERN

SHARE HOLDING PATTERN (% of Shares Held)

CATEGORY OF SHAREHOLDER

Total Number of

Shares

Percentage Share

Holding (%)

Promoter

Foreign Promoter 1,45,44,12,858 67.24

Total Promoter 1,45,44,12,858 67.24

Non Promoter

Institutions

Mutual Funds / UTI 44,62,582 0.21

FI/Bank/Insurance 8,41,01,967 3.88

Govt 20 0

FII 31,53,92,703 14.58

Total Institutions 40,39,57,272 18.67

Non-Institution

Bodies Corporate 2,18,58,599 1.01

Individuals (upto Rs. 1 lakh) 26,80,29,610 12.39

Individuals (in excess of Rs. 1 lakh) 53,25,530 0.25

NRIs/OCBs 76,27,325 0.35

Others 27,52,51,746 12.73

Total Non-Institution 30,47,37,670 14.09

Total Non Promoter 70,86,94,942 32.76

Total 2,16,31,07,800 100

Promoters, 52.5

Individuals, 14.17

Institutions, 10.31

FII, 19.43

Govt., 0Others,

3.59

FINANCIAL RESULT

BALANCE SHEET

Parameters MAR'14 MAR'13 MAR'12 MAR'11 MAR'10

(Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.)

EQUITY AND LIABILITIES

Share Capital 216.27 216.25 216.15 215.95 218.17

Shareholder's Funds 3,277.05 2,674.02 3,512.93 2,659.52 2,583.52

Deferred Tax Assets / Liabilities -161.73 -204.78 -214.24 -209.66 -248.82

Other Long Term Liabilities 278.82 476.25 329.69 219.2 0

Long Term Provisions 838.69 706.34 666.95 663.87 0

Total Non-Current Liabilities 955.78 977.81 782.4 673.41 -248.82

Trade Payables 5,793.89 5,167.69 4,622.96 5,009.05 5,222.99

Current Liabilities

Other Current Liabilities 852.94 616.15 546.77 554.59 68.67

Short Term Provisions 1,957.01 1,872.02 1,278.97 1,056.43 1,441.55

Total Current Liabilities 8,603.84 7,655.86 6,448.70 6,620.07 6,733.21

Total Liabilities 12,836.67 11,307.69 10,744.03 9,953.00 9,067.91

ASSETS

Gross Block 4,442.85 4,134.20 3,811.68 3,759.62 3,581.96

Less: Accumulated Depreciation 2,020.79 1,841.30 1,664.21 1,590.52 1,419.85

Net Block 2,422.06 2,292.90 2,147.47 2,169.10 2,162.11

Capital Work in Progress 312.08 205.32 205.13 216.59 273.96

Intangible assets under development 7.7 10.32 10.32 72.17 0

Non Current Investments 636.17 548.03 186.31 120.58 99.84

Long Term Loans & Advances 605.51 384.29 401.27 400.31 0

Other Non Current Assets 0.68 296.84 0 0 0

Total Non-Current Assets 3,984.20 3,737.70 2,950.50 2,978.75 2,535.91

Total Reserves 3,018.09 2,419.50 3,261.01 2,415.03 2,362.19

Current Assets Loans &

Advances

Currents Investments 2,457.95 1,782.63 2,251.90 1,140.09 1,164.24

Inventories 2,747.53 2,526.99 2,516.65 2,810.77 2,179.93

Cash and Bank 2,220.97 1,707.89 1,830.04 1,628.47 1,892.21

Other Current Assets 240.05 204.53 219.69 178 16.62

Short Term Loans and Advances 369.54 514.47 296.26 273.71 607.4

Total Current Assets 8,852.47 7,569.99 7,793.53 6,974.25 6,532.00

Net Current Assets (Including Current

Investments) 248.63 -85.87 1,344.83 354.18 -201.21

Total Current Assets Excluding Current Investments 6,394.52 5,787.36 5,541.63 5,834.16 5,367.76

Total Assets 12,836.67 11,307.69 10,744.03 9,953.00 9,067.91

Contingent Liabilities 896.13 768.87 743.67 748.96 468.49

Book Value (in Rs.) 14.95 0 16.08 12.18 11.82

Adjusted Book Value (in Rs.) 14.95 0 16.08 12.18 11.82

DIVIDEND SUMMARY

For the year ending March 2014, Hindustan Unilever has declared an equity dividend of

1300.00% amounting to Rs 13 per share. At the current share price of Rs 757.50 these results in

a dividend yield of 1.72%. The company has a good dividend track report and has consistently

declared dividends for the last 5 years.

ANNUAL REPORT

Results

Summarised Profit and Loss Account

(Rs. crores)

For the year ended For the year ended

31st March, 2014 31st March, 2013

Sale of products less excise duty 27,408.29 25206.38

Other operational income 610.84 603.83

Total Revenue 28,019.13 25,810.21

Operating Costs (23,543.87) (21,806.46)

Profit before Depreciation, Interest, Tax (PBDIT)

4,475.26 4003.75

Depreciation (260.55) (236.02)

Profit after Interest & Tax (PBIT) 4,214.71 3767.73

Other Income (net) 585.00 581.75

Profit before exceptional items 4,799.71 4349.48

Exceptional items 228.68 608.40

Profit Before Tax (PBT) 5,028.39 4957.88

Taxation (1,160.90) (1,161.21)

Profit for the year 3,867.49 3,796.67

Basic EPS (Rs.) 17.88 17.56

(Rs. crores)

For the year ended For the year ended

31st March, 2014 31st March, 2013

Revenue from operations, net of excise

28,019.13 25,810.21

Profit before exceptional items

and tax

4,799.71 4,349.48

Profit for the year 3,867.49 3,796.67

Dividend (including tax on distributed profits)

Transfer to General Reserve (386.75) (379.67)

Profit and loss balance carried forward

743.05 535.28

DIVIDEND DECLARED

Announcement Effective Dividend Dividend Remarks

Date Date Type (%)

28-04-14 11-06-14 Final 750 Rs.7.5000 per share(750%)Final

Dividend

15-10-13 31-10-13 Interim 550 Rs.5.5000 per share(550%)Interim

Dividend

29-04-13 10-07-13 Final 600 Rs.6.0000 per share(600%)Final Dividend

18-10-12 01-11-12 Interim 1,250.00 Rs.4.5000 per

share(450%)Interim Dividend & Rs.8.0000 per

share(800%)Special Dividend

1/5/2012 4/7/2012 Final 400 -

17-10-11 04-11-11 Interim 350 -

9/5/2011 8/7/2011 Final 350 -

14-10-10 01-11-10 Interim 300 -

25-05-10 8/7/2010 Final 350 -

15-10-09 06-11-09 Interim 300 -

11-05-09 12-06-09 Final 400 -

15-07-08 4/8/2008 Interim 350 -

13-02-08 17-03-08 Final 300 -

23-10-07 07-11-07 Interim 300 Dividend (Platinum Jubliee)

23-07-07 7/8/2007 Interim 300 -

20-02-07 20-04-07 Final 300 AGM

10-07-06 8/8/2006 Interim 300 -

14-02-06 28-04-06 Final 250 AGM

25-07-05 8/8/2005 Interim 250 -

11-02-05 7/6/2005 Final 250 AGM

20-07-04 13-08-04 Interim 250 -

17-02-04 14-05-04 Final 300 -

16-07-03 14-08-03 Interim 250 -

16-10-01 20-06-03 Final 276 Bonus issue of Debentures &

Special Dividend 276%

29-01-03 4/4/2003 Final 300 AGM

10-07-02 7/8/2002 Interim 250 -

BONUS SUMMARY

The last bonus that Hindustan Unilever had announced was in 1991 in the ratio of 1:2.The share

has been quoting ex-bonus from July 19, 1991.

Bonus History

Announcement

Date

Bonus

R

a

t

i

o

Record Date

Ex-Bonus

D

a

t

e

30-09-1991 1:02 21-08-1991 19-07-1991

22-06-1987 1:01 - -

22-06-1983 3:05 - -

22-06-1979 1:03

FUTURE PROSPECTS OF HUL

India is a fast developing country with a huge population whose per capita income is growing rapidly and there is huge opportunity for FMCG companies.

The opportunities are as follows:

Increasing per capita income is driving FMCG growth in India

India’s consuming class is growing rapidly

Changing consumption pattern: Per capita income of Indian customer is increasing and

FMCG products are relatively elastic in nature hence the expected sale should increase.

FUTURE PROJECTS OF HUL:

As competition is increasing day by day, it’s difficult to maintain the leader position & to

further strengthen the distribution network HUL made a project called project

SHAKTI which will serve the following purpose:

A) To Reach:

Small, scattered settlements and poor infrastructure make distribution difficult. Over 500,000 villages not reached directly by HUL.

B) To Communicate: Low literacy hampers effectiveness of print media.

Poor media-reach: 500 million Indians lack TV & radio.

C) To Influence: Low category penetration, consumption.

C) Awareness: Per capita consumption in Unilever categories is 33% of urban level.

ITC

HISTORY OF ITC

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India

Limited. As the Company's ownership progressively Indianised, the name of the

Company was changed from Imperial Tobacco Company of India Limited to India

Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition

of the Company's multi-business portfolio encompassing a wide range of businesses -

Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and

Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and

Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business

and Information Technology - the full stops in the Company's name were removed

effective September 18, 2001. The Company now stands rechristened 'ITC Limited,

‘where ‘ITC’ is today no longer an acronym or an initialized form.

A Modest Beginning

The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the

centre of the Company's existence. The Company celebrated its 16th birthday on

August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now

renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the

Company was historic in more ways than one. It was to mark the beginning of a long

and eventful journey into India's future. The Company's headquarter building,

'Virginia House', which came up on that plot of land two years later, would go on to

become one of Kolkata's most venerated landmarks.

1925: Packaging and Printing: Backward Integration.

Though the first six decades of the Company's existence were primarily devoted to the growth

and consolidation of the Cigarettes and Leaf Tobacco businesses, ITC's Packaging &

Printing Business was set up in 1925 as a strategic backward integration for ITC's

Cigarettes business. It is today India's most sophisticated packaging house.

1975: Entry into the Hospitality Sector - A 'Welcom' Move.

The Seventies witnessed the beginnings of a corporate transformation that would usher in

momentous changes in the life of the Company. In 1975, the Company launched its

Hotels business with the acquisition of a hotel in Chennai which was rechristened

'ITC-Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai). The objective

of ITC's entry into the hotels business was rooted in the concept of creating value for

the nation. ITC chose the Hotels business for its potential to earn high levels of foreign

exchange, create tourism infrastructure and generate large scale direct and indirect

employment. Since then ITC's Hotels business has grown to occupy a position of

leadership, with over 100 owned and managed properties spread across India under

four brands namely, ITC Hotels - Luxury Collection, WelcomHotels, Fortune Hotels

and WelcomHeritage.

1979: Paperboards & Specialty Papers - Development of a Backward Area.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards

Limited. Bhadrachalam Paperboards amalgamated with the Company effective March

13, 2002 and became a Division of the Company, Bhadrachalam Paperboards

Division. In November 2002, this division merged with the Company's Tribeni

Tissues Division to form the Paperboards & Specialty Papers Division. ITC's

paperboards' technology, productivity, quality and manufacturing processes are

comparable to the best in the world. It has also made an immense contribution to the

development of Sarapaka, an economically backward area in the state of Andhra

Pradesh. It is directly involved in education, environmental protection and community

development. In 2004, ITC acquired the paperboard manufacturing facility of BILT

Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit

allows ITC to improve customer service with reduced lead time and a wider product

range.

1985: Nepal Subsidiary - First Steps beyond National Borders

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In

August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was

changed to Surya Nepal Private Limited (Surya Nepal). In 2004, the company

diversified into manufacturing and exports of garments.

1990: Paperboards & Specialty Papers - Consolidation and Expansion

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a

major supplier of tissue paper to the cigarette industry. The merged entity was named

the Tribeni Tissues Division (TTD). To harness strategic and operational synergies,

TTD was merged with the Bhadrachalam Paperboards Division to form the

Paperboards & Specialty Papers Division in November 2002.

1990: Agri Business - Strengthening Farmer Linkages.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for

export of agri-commodities. The Division is today one of India's largest exporters.

ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with

soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million

farmers. Also, through the 'Choupal Pradarshan Khet' initiative, the agri services

vertical has been focusing on improving productivity of crops while deepening the

relationship with the farming community.

2002: Education & Stationery Products - Offering the Greenest products

ITC launched line of premium range of notebooks under brand Paperkraft in 2002. To augment

its offering and to reach a wider student population, the Classmate range of notebooks

was launched in 2003. Classmate over the years has grown to become India's largest

notebook brand and has also increased its portfolio to occupy a greater share of the

school bag. Years 2007- 2009 saw the launch of Practical Books, Drawing Books,

Geometry Boxes, Pens and Pencils under the 'Classmate' brand. In 2008, ITC

positioned the business as the Education and Stationery Products Business and

launched India's first environment friendly premium business paper under the

'Paperkraft' Brand. 'Paperkraft' offers a diverse portfolio in the premium executive

stationery and office consumables segment. In 2010, Colour Crew was launched as a

new brand of art stationery.

2000: Lifestyle Retailing - Premium Offerings

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international

quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of

exclusive stores later expanded its range to include Wills Classic formal wear (2002)

and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular

segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle

became title partner of the country's most premier fashion event - Wills Lifestyle India

Fashion Week - that has gained recognition from buyers and retailers as the single

largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC

launched a special 'Wills Signature', taking the event forward to consumers.

In 2000, ITC spun off its information technology business into a wholly

owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging

opportunities in this area. Today ITC Infotech is one of India's fastest growing global

IT and IT-enabled services companies and has established itself as a key player in

offshore outsourcing, providing outsourced IT solutions and services to leading global

customers across key focus verticals - Banking Financial Services & Insurance

(BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing, Engineering

Services, Media & Entertainment, Travel, Hospitality, Life Sciences and

Transportation & Logistics.

2001: Branded Packaged Foods - Delighting Millions of Households

ITC's foray into the Foods business is an outstanding example of successfully blending multiple

internal competencies to create a new driver of business growth. It began in August

2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.

In 2002, ITC entered the confectionery and staples segments with the launch of the

brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003

witnessed the introduction of Sunfeast as the Company entered the biscuits segment.

ITC entered the fast growing branded snacks category with Bingo! in 2007. In 2010,

ITC launched Sunfeast Yippee! to enter the Indian instant noodles market. In just over

a decade, the Foods business has grown to a significant size under seven distinctive

brands, with an enviable distribution reach, a rapidly growing market share and a solid

market standing.

2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value

chain found yet another expression in the Safety Matches initiative. ITC now markets

popular safety matches brands like iKno, Mangaldeep and Aim.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked

the manifestation of its partnership with the cottage sector. Mangaldeep is a highly

established national brand and is available across a range of fragrances like Rose,

Jasmine, Bouquet, Sandalwood and 'Fragrance of Temple'.

2005: Personal Care Products - Expert Solutions for Discerning Consumers

ITC entered the Personal Care Business in 2005. In eight years, the Personal Care portfolio has

grown under 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands which

have received encouraging consumer response and have been progressively extended

nationally. In May 2013, the business expanded its product portfolio with the launch

of Engage - one of India's first ranges of 'couple deodorants'

2010: Expanding the Tobacco Portfolio

In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market. Armenteros cigars

are available exclusively at tobacco selling outlets in select hotels, fine dining

restaurants and exclusive clubs.

CORPORATE INFORMATION

Name Designation

Yogesh Chander Deveshwar Chairman

Pradeep Vasant Dhobale Executive Director

Anil Baijal Non Executive Director

Serajul Haq Khan Non Executive Director

Sahibzada Syed Habib-ur-Rehman Non Executive Director

S B Mainak Non Executive Director

Pillappakkam Bahukutumbi Ramanujam Non Executive Director

Krishnamoorthy Vaidyanath Non Executive Director

Nakul Anand Executive Director

Kurush Noshir Grant Executive Director

Angara Venkata Girija Kumar Non Executive Director

Sunil Behari Mathur Non Executive Director

Robert Earl Lerwill Non Executive Director

Meera Shankar Non Executive Director

Anthony Ruys Non Executive Director

PRODUCTS OF ITC

FMCG:

CIGARETTES

CIGARS

FOODS

LIFESTYLE RETAILING

PERSONAL CARE

EDUCATION AND STATIONARY:

SAFETY MATCHES

AGARBATTIS

HOTELS:

PAPERBOARDS & SPECIALITY PAPERS

PACKAGING

AGRI-BUSINESS

ITC’S SHAREHOLDING PATTERN

SHARE HOLDING PATTERN (% OF SHARES HELD)

CATEGORY OF

SHAREHOLDER Total Number of Shares

Percentage ShareHolding

(%)

Institutions

Mutual Funds / UTI 1,03,49,21,991 13.01

FI/Bank/Insurance 1,74,94,21,442 21.99

FII 1,53,03,23,687 19.24

Total Institutions 4,31,46,67,120 54.24

Non-Institution

Bodies Corporate 32,90,28,616 4.14

Individuals (upto Rs. 1 lakh) 68,07,19,308 8.56

Promoters0% Individuals

11%

Institutions34%

FII17%Govt.

0%

Others38%

Sales

Individuals (in excess of Rs. 1 lakh) 13,34,06,576 1.68

NRIs/OCBs 4,45,21,939 0.56

Others 3,24,60,23,045 40.80

Total Non-Institution 3,61,95,73,600 45.50

Total Non Promoter 7,93,42,40,720 99.74

Depository Receipts 2,07,75,620 0.26

Total 7,95,50,16,340 100.00

FINANCIAL RESULTS

BALANCE SHEET

Parameters

MAR'14

(

R

s

.

C

r

.

)

MAR'13

(

R

s

.

C

r

.

)

MAR'12

(

R

s

.

C

r

.

)

MAR'11

(

R

s.

C

r.

)

MAR'10

(R

s.

Cr

.)

EQUITY AND LIABILITIES

Share Capital 795.32 790.18 781.84 773.81 381.82

Shareholder's Funds 26,262.02 22,287.85 18,791.89 15,953.27 14,064.38

Unsecured Loans 51.00 66.40 77.32 86.58 107.71

Deferred Tax Assets / Liabilities 1,296.96 1,203.72 872.72 801.85 785.01

Other Long Term Liabilities 5.09 1.79 15.52 20.82 0.00

Long Term Trade Payables 0.00 1.32 0.00 0.00 0.00

Long Term Provisions 110.00 125.62 107.12 93.82 0.00

Total Non-Current Liabilities 1,463.05 1,398.85 1,072.68 1,003.07 892.72

Trade Payables 1,987.59 1,668.98 1,424.84 1,395.31 3,392.39

Current Liabilities

Other Current Liabilities 3,631.88 3,528.62 3,371.27 3,067.77 122.03

Short Term Borrowings 0.14 0.00 1.77 1.94 0.00

Short Term Provisions 5,884.71 5,133.13 4,303.95 4,012.46 4,549.94

Total Current Liabilities 11,504.32 10,330.73 9,101.83 8,477.48 8,064.36

Total Liabilities 39,229.39 34,017.43 28,966.40 25,433.82 23,021.46

ASSETS

Less: Accumulated Depreciation 6,532.13 5,735.04 5,045.16 4,420.75 3,825.46

Net Block 12,012.74 11,209.34 9,099.19 8,345.11 8,142.40

Capital Work in Progress 2,272.94 1,472.80 2,269.26 1,322.60 1,008.99

Intangible assets under development 22.79 14.99 7.49 10.80 0.00

Non Current Investments 2,512.17 2,000.86 1,953.28 1,563.30 1,356.85

Long Term Loans & Advances 1,480.02 1,727.97 1,193.61 1,146.47 0.00

Total Non-Current Assets 18,300.66 16,425.96 14,522.83 12,388.28 10,508.24

Total Reserves 25,466.70 21,497.67 18,010.05 15,179.46 13,682.56

Current Assets Loans & Advances

Currents Investments 6,311.26 5,059.43 4,363.31 3,991.32 4,370.02

Inventories 7,359.54 6,600.20 5,637.83 5,269.17 4,549.07

Cash and Bank 3,289.37 3,615.00 2,818.93 2,243.24 1,126.28

Other Current Assets 269.69 216.36 136.89 93.26 649.01

Short Term Loans and Advances 1,533.51 937.14 500.59 563.45 945.49

Total Current Assets 20,928.73 17,591.47 14,443.57 13,045.54 12,513.22

Net Current Assets (Including Current Investments)

9,424.41 7,260.74 5,341.74 4,568.06 4,448.86

Total Current Assets Excluding Current

Investments

14,617.47 12,532.04 10,080.26 9,054.22 8,143.20

Total Assets 39,229.39 34,017.43 28,966.40 25,433.82 23,021.46

Contingent Liabilities 361.50 466.54 287.08 255.17 285.13

Total Debt 66.54 77.67 89.12 99.20 107.71

Book Value (in Rs.) 32.95 0.00 23.97 20.55 36.69

Adjusted Book Value (in Rs.) 32.95 0.00 23.97 20.55 18.35

ANNUAL REPORT

(Rs. in Crores)

PROFITS 2014 2013

a) Profit Before Tax 12659.11 10684.18

b) Tax Expense

- Current Tax 3791.13 2934.79

- Deferred Tax 82.77 331.00

c) Profit for the year 8785.21 7418.39

SURPLUS IN STATEMENT OF PROFIT AND LOSS

a) At the beginning of the year 3788.10 1972.59

b) Add : Profit for the year 8785.21 7418.39

c) Less:

- Transfer to General Reserve 880.00 750.00

- Proposed Dividend {Rs. 6.00(2013-Rs. 5.25)

per share}

4771.91 4148.46

- Current Year 810.99 705.03

- Earlier year''s provision no longer required (28.68) (0.61)

d) At the end of the year 6139.09 3788.10

DIVIDEND SUMMARY

For the year ending March 2013, ITC has declared an equity dividend of 525.00% amounting to

Rs 5.25 per share. At the current share price of Rs 355.65 these results in a dividend yield of

1.48%. ITC had last declared a dividend of 525.00% for the year ending March 2013.

DIVIDEND DECLARED

Announcement Effective Dividend Dividend Remarks

Date Date Type (%)

23-05-14 3/6/2014 Final 600 Rs.6.0000 per share(600%)Dividend

17-05-13 31-05-13 Final 525 Rs.5.2500 per share(525%)Dividend

25-05-12 11-06-12 Final 450 -

20-05-11 10-06-11 Final 445 Recommended a Special Dividend of

Rs. 1.65 per Ordinary Share of Re. 1/- each and a

Dividend of Rs. 2.80 per

Ordinary Share of Re.1/- each.

21-05-10 9/6/2010 Final 1,000.00 Special Centenary dividend of Re. 5.50

per Ordinary Share of Re 1/- each and a dividend of Re. 4.50 per Ordinary Share for

the financial year ended March 31, 2010.

22-05-09 13-07-09 Final 370 -

23-05-08 16-07-08 Final 350 -

25-05-07 16-07-07 Final 310 AGM

26-05-06 10-07-06 Final 265 AGM

27-05-05 18-07-05 Final 310 AGM

13-05-04 19-07-04 Final 200 AGM

8/5/2003 14-07-03 Final 150 -

14-05-02 12-07-02 Final 135 AGM

BONUS SUMMARY

The last bonus that ITC had announced was in 2010 in the ratio of 1:1.The share has been quoting ex-bonus from August 3, 2010.

Bonus History

Announcement Date Bonus Ratio Record Date Ex-Bonus Date

18-06-2010 1:01 4/8/2010 3/8/2010

17-06-2005 1:02 28-09-2005 21-09-2005

12-07-1994 1:01 06-10-1994 12-09-1994

30-09-1991 3:05 15-01-1992 12-12-1991

29-04-1989 1:01 - 31-08-1989

29-04-1980 1:05 - -

FUTURE PROSPECTS OF ITC

ITC has a tremendous growth prospectus in future. All business profiles except cigarettes, has a

tremendous growth prospects in next two-three years down the line. Earlier ITC is

used to be treated as a cigarette company and always Budget is used to be very bad for

cigarette. Because with a blind eye, one is going to say that excise duty is going to get

increase on the cigarettes. Now the company has shifted in their many other areas like

retailing, paper, hotel, which are in fact contributing to a great extent. All their

business profiles, minus cigarettes, has a tremendous growth prospects in time to

come, maybe in two-three years down the line. On top of it, they have huge cash

inflow, which they can productively deploy in the other areas.

NESTLE

HISTORY OF NESTLE INDIA

Nestle has its presence in India for around nine decades, making it one of the oldest company in

India. Nestlé India is a subsidiary of Nestlé SA of Switzerland.

The company has its headquarters at Gurgaon near Delhi and has seven factories spread all over

India. It started its journey in India in 1912 by entering into the dairy business.

Nestlé India, one the biggest players in FMCG segment, has a presence in milk & nutrition,

beverages, prepared dishes & cooking aids & chocolate & confectionery segments.

Nestlé India manufactures products of truly international quality under internationally

famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR–

ONE, MILKMAID and NESTEA and in recent years the Company has also

introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ

SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita.

Nestle has created brands like Nestlé Milkmaid, Nestlé Everyday, Maggi Noodles, Maggi

Soups, Polo, Kit Kat, Nescafe & many more.

As per the market–wise position Nestlé India stands first in instant noodles & ketchups, second

in healthy soups, No.1 in instant coffee, & No.2 in overall chocolate category.

Nestle India continuously focuses on understanding changing lifestyles in India. This helps it to

foresee needs in its product offerings. The company innovates new product &

renovates existing one providing high quality, safe food products at affordable prices.

Milestones achieved

CNBC Awaaz Consumer Awards has honoured Nescafe as the most preferred coffee

brand.

Business India has rated Nestlé India as No.1 on Return On Capital Employed amongst

Super 100 companies.

In 2006–2007 Nestlé India was awarded the ‘Best Exporter of Instant Coffee’, ‘Highest

Exporter to Russia and CIS”, ‘Highest Exporter to Far East Countries’.

In 2009 Nestle India Board approved Proposal To acquire Healthcare Nutrition Business

of Specialist Foods.

In 2010 Nestlé Inaugurates New Culinary Plant at Nanjangud.

2010–12 CNBC Awaaz Consumer Awards Business India has rated Nestle India as No.1

on Return on Capital Employed amongst Super 100 companies.

The company has introduced products in milk segment for daily consumption and use such as

Nestle Milk, Nestle Slim Milk, Nestle Fresh 'n' Natural Dahi and Nestle Jeera

Raita.

CORPORATE INFORMATION

NAME DESIGNATION

Mr. Antonio Helio Waszyk Chairman and Non-Executive Director

Mr. Etinne Benet Managing Director

Mr. Shobinder Duggal Director-Finance & control and CFO

Mr. Aristides Protonotarios Director - Technical

Mr. Michael W.O. Garrett Non-Executive and Independent Director

Mr. R. V. Kanoria Non-Executive and Independent Director

Mr. Ashok Kumar Mahindra Non-Executive and Independent Director

Mr. Ravinder Narain Non-Executive and Independent Director

Dr. Swati A. Piramal Non-Executive and Independent Director

PRODUCTS OF NESTLE INDIA

MILK PRODUCTS AND NUTRITION

BEVERAGES

PREPARED DISHES AND COOKING AIDS

CHOCOLATES AND CONFECTIONERY

NESTLE’S SHAREHOLDING PATTERN

PromotersIndividuals

Institutions

FII

Govt.Others

Shareholdings

SHARE HOLDING PATTERN (% of Shares Held)

CATEGORY OF SHAREHOLDER

Total Number of Shares

Percentage Share Holding (%)

Foreign Promoter 6,05,15,079 62.76

Total Promoter 6,05,15,079 62.76

Non Promoter

Institutions

Mutual Funds / UTI 4,97,791 0.52

FI/Bank/Insurance 43,29,328 4.49

Govt 39,045 0.04

FII 1,40,03,998 14.52

Other 0 0.00

Total Institutions 1,88,70,162 19.57

Non-Institution

Bodies Corporate 22,06,799 2.29

Individuals (upto Rs. 1 lakh) 93,66,576 9.71

Individuals (in excess of Rs. 1 lakh) 49,41,841 5.13

NRIs/OCBs 5,03,030 0.52

Others 1,43,20,646 14.85

Total Non-Institution 1,70,30,475 17.66

Total Non Promoter 3,59,00,637 37.24

Total 9,64,15,716 100.00

FINANCIAL RESULTS

BALANCE SHEET

Parameters DEC'13 DEC'12 DEC'11 DEC'10 DEC'09

(Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.) (Rs. Cr.)

EQUITY AND LIABILITIES

Share Capital 96.42 96.42 96.42 96.42 96.42

Shareholder's Funds 2,368.75 1,798.41 1,273.96 855.41 581.27

Unsecured Loans 1,189.48 1,049.95 724.95 0 0

Deferred Tax Assets / Liabilities 215.47 162.08 50.22 33.27 32

Long Term Provisions 1,193.39 1,014.75 885.13 0 0

Total Non-Current Liabilities 2,598.34 2,226.78 1,660.30 33.27 32

Trade Payables 633.04 539.4 480.83 745.44 581.73

Current Liabilities

Other Current Liabilities 500.25 558.03 528.7 16.23 5.86

Short Term Borrowings 0.01 0.24 245.92 0 0

Short Term Provisions 213.88 41.06 212.07 907.94 834.79

Total Current Liabilities 1,347.18 1,138.73 1,467.52 1,669.61 1,422.38

Total Liabilities 6,314.27 5,163.92 4,401.78 2,558.29 2,035.65

ASSETS

Gross Block 4,903.16 4,427.56 2,552.21 1,854.70 1,640.79

Less: Accumulated Depreciation 1,523.91 1,216.44 976.46 841.96 744.59

Less: Impairment of Assets 9.94 6.85 0 0 0

Net Block 3,369.31 3,204.27 1,575.75 1,012.74 896.2

Capital Work in Progress 294.71 344.08 1,371.78 348.91 79.63

Non Current Investments 224.12 0 0 0 0

Long Term Loans & Advances 123.94 125.45 163.91 0 0

Total Non-Current Assets 4,012.55 3,673.80 3,111.44 1,361.65 975.83

Total Reserves 2,272.33 1,701.99 1,177.54 759 484.85

Current Assets Loans & Advances

Currents Investments 626.96 364.86 134.37 150.68 203.26

Inventories 735.93 745.58 734.04 575.95 498.74

Cash and Bank 749.36 236.96 227.21 255.29 155.59

Other Current Assets 10.06 5.18 19.48 0 0

Short Term Loans and Advances 95.14 49.97 59.82 151.44 138.05

Total Current Assets 2,301.72 1,490.12 1,290.34 1,196.65 1,059.81

Net Current Assets (Including

Current Investments) 954.54 351.39 -177.18 -472.96 -362.57

Total Current Assets Excluding

Current Investments 1,674.76 1,125.26 1,155.97 1,045.97 856.56

Total Assets 6,314.27 5,163.92 4,401.78 2,558.29 2,035.65

Contingent Liabilities 12.76 11.7 0 0 0

Total Debt 1,189.49 1,050.19 970.87 0 0

Book Value (in Rs.) 0 0 132.13 88.72 60.29

Adjusted Book Value (in Rs.) 245.67 0 132.13 88.72 60.29

ANNUAL REPORT

(Rs. in Millions)

2013 2012

Net Sales 90,619.0 83,022.6

Add: Other Operating Income 391.5 322.7

Less: Operating Expenses 74,114.3 67,536.5

Less: Impairment loss on fixed assets 99.4 68.5

Less: Net provision for contingencies from

operations)

413.1 339.9

Profit from operations 16,383.7 15,400.4

Add: Other Income 830.9 310.3

Less: Finance costs 365.1 266.0

Less/Add: Net provision for contingencies - others

207.4 (81.5)

Profit before exceptional items and taxation 16,642.1 15,526.2

Add: Exceptional items 138.1 -

Less: Tax Expense 5,608.9 4,846.9

Net Profit after tax 11,171.3 10,679.3

Add: Profit Brought Forward 10,745.5 6,568.9

Less: Interim Dividends 3,471.0 4,676.2

Less: Final Dividend Proposed 1,205.2 -

Less: Dividend Distribution Tax 794.7 758.6

Less: Transfer to General Reserve 1,117.1 1,067.9

Earnings per Share (Rs.) 115.87 110.76

Dividend per Share (Rs.) 48.50 48.50

DIVIDEND SUMMARY

For the year ending December 2013, Nestle India has declared an equity dividend of 485.00% amounting to Rs 48.5 per share. At the current share price of Rs 6517.15 these results in a

dividend yield of 0.74%.

The company has a good dividend track report and has consistently declared dividends for the last 5 years.

Dividend Declared

Announcement Effective Dividend Dividend Remarks

Date Date Type (%)

3/9/2014 15-09-14 Interim 300 Rs.30.0000 per share (300%) Second Interim Dividend

14-02-14 15-05-14 Final 125 Rs.12.5000 per share(125%)Final Dividend

26-04-14 15-05-14 Interim 125 Rs.12.5000 per share(125%)Interim

Dividend

18-10-13 01-11-13 Interim 180 Rs.18.0000 per share(180%)Second Interim Dividend

8/7/2013 31-07-13 Interim 180 Rs.18.0000 per share(180%)Interim

Dividend

15-02-13 25-02-13 Interim 125 Rs.12.5000 per share(125%)Third Interim Dividend

07-12-12 12-12-12 Interim 180 Rs.18.0000 per share (180%) Second Interim Dividend

17-07-12 1/8/2012 Interim 180 Rs.18.00 per share(180%)Interim Dividend

14-02-12 21-03-12 Final 125 -

24-11-11 12-12-11 Interim 270 Second Interim Dividend

18-02-11 21-04-11 Final 215 Declared an interim dividend of Rs. 9.00 per Equity Share for the year 2011, which shall be paid on and

from May 06, 2011 along with Final Dividend for 2010 of Rs.

12.50 per Equity Share.

19-10-10 03-11-10 Interim 270 Second Interim Dividend

19-02-10 23-04-10 Final 215 Final Dividend Rs. 12.50 (125%) per share + Interim Dividend of Rs. 9/- (90%) per share.

15-10-09 04-11-09 Interim 270 Second Interim Dividend

9/3/2009 29-04-09 Final 210 210% Dividend (120% Final Div. & 90% Interim Div.) & A.G.M.

31-10-08 14-11-08 Interim 220 (2nd Int.Div.145% & Special Div.under Sch. of Arrangement 75%)

4/3/2008 23-04-08 Final 110 Total Dividend is Rs. 11 i.e Final Dividend for 2007 Rs. 2.50 & Interim

Dividend for the year 2008 Rs. 8.50.

26-11-07 13-12-07 Interim 240 Second Interim Dividend

5/3/2007 20-03-07 Interim 80 (15% Third Interim Dividend for the year

2006 + 65% Interim Dividend for the year 2007) The Board has not

recommended any final dividend for 2006.

21-11-06 08-12-06 Interim 180 Second Interim Dividend

7/3/2006 19-04-06 Final 80 AGM {interim dividend of Rs. 6/- for F.Y

2006-2007 + Rs.2/- as Final Dividend for the year 2005.)

18-11-05 09-12-05 Interim 180 Second Interim Dividend

14-03-05 20-04-05 Final 95 AGM & Dividend 95% (Interim Dividend for 2005 of Rs 5/- per equity

share and the Special Dividend for 2004 of Rs 4.50 per equity

share)

23-11-04 10-12-04 Interim 100 Second Interim Dividend

29-06-04 20-07-04 Interim 100 Interim Dividend

10-11-03 10-12-03 Interim 100 Second Interim Dividend

8/7/2003 5/8/2003 Interim 100 -

BONUS SUMMARY

The last bonus that Nestle India had announced was in 1996 in the ratio of 1:2.The share has been quoting ex-bonus from July 15, 1996.

Bonus History (Nestle India)

Announcement

Date

Bonus

R

a

t

i

o

Record Date Ex-Bonus Date

23-04-1996 1:02 13-08-1996 15-07-1996

30-09-1993 1:04 16-10-1993 10-09-1993

18-07-1989 3:05 - 09-10-1989

18-07-1986 1:01 - -

18-07-1983 3:05

FUTURE PROSPECTS OF NESTLE INDIA

Nestle is focused on product expansion and improvement of distribution efficiency. The Dairy

business is being expanded and is expected to drive growth in the long run, although short-term

profitability may be impacted in the investment stage. The company’s entry into the mineral

water segment is a concern, as the segment is already overcrowded and the company faces stiff

competition especially from the Cola manufacturers. Acquisition of an established brand could

catapult Nestlé’s position in the segment. In categories like beverages, culinary products and

chocolate confectionery, the company is looking at driving growth through launch of smaller

SKU’s, thus enabling affordability to a wide section of the population.

BRITANNIA

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 soya

bean 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.

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.

1954 - The development of high quality sliced and wrapped bread in India was pioneered by the

Company and was first manufactured at Delhi.

1961 - Manufacture of bread was started in Mumbai and a new bread bakery was set up at Delhi

in 1965.

1976 - Britannia bread was introduced in Calcutta and Chennai.

1979 - With effect from 3rd October, the name of the Company was changed from the Britannia

Biscuit Co., Ltd., to Britannia Industries Ltd.

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.

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 satisfactory 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.

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.

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 magic

biscuit Vanilla cream were launched. Fruit bread was launched in Delhi and was well

received.

1991 - The Company launched two new specialty brands viz., Britannia milk bread and Britannia

brown bread in Delhi and extended nationally its main brands Petit Beurre and elaichi

cream.

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.

1996 - Mariegold biscuits registered quantum growth in volumes and milk bikis milk cream

launched during the year was well received.

1997 - 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 Ltd (BIL) will shortly enter the cheese and milk products market

with an alliance proposed between itself and the Mumbai-based Dynamix Dairy Ltd.

1998 - 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.

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.

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 - 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.

Britannia Industries has launched Britannia Milkman Butter, a product under the

Milkman brand.

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.

2001 - Britannia Industries has launched Britannia Milkman Milk in Delhi.

2002 -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. Britannia New Zealand Foods, a joint venture of Britannia Industries and

Fonterra Co-operative group of New Zealand has launched Britannia MilkMan fresh

milk.

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 -Britannia New Zealand launches health drink for adult.

Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular chant.

Britannia launched 'Greetings' range of premium assorted gift packs.

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 re-launched NutriChoice Hi-Fibre Digestive biscuits in an international large

sized biscuit pack.

2007 -Britannia NutriChoice SugarOut range introduced - 1st of its kind of biscuits to be

launched in India with No Added Sugar (Variants - Chocolate Cream, Orange Cream,

and Lifetime)

2008 -Britannia NutriChoice 5 Grain biscuits launched - Biscuits with the goodness of 5 health

Cereals, and sweetened with Natural honey. Britannia Nutrichoice promised

consumers Bhook Bhagao, Kuch Healthy Khao.

Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day Classic Cookies',

Low Fat Dahi and renovated 'MarieGold'.

2009 -Britannia NutriChoice Nature Spice Crackers launched - Your favorite Cream Crackers,

now made even more exciting with the addition of Sabut Ajwain and Jeera spices.

2010 -Britannia NutriChoice launches a New Year pack - the Health Starter Kit created for

everyone who makes New Year resolutions and doesn’t follow. The Health Starter Kit

contains 1 pack each of NutriChoice Hi-Fiber Digestive, NutriChoice 5 Grain,

NutriChoice Nature Spice Cracker bundled together with a Fit Sip Sipper and a fitness

chart.

2011 -Britannia received the Most Respected Company Award 2011 from Businessworld.

Bourbon received the Most Popular Confectionery Product Preferred by Youth (Biscuit)

Award.

BRITANNIA was honored with `CREATIVE HR PRACTICES AWARD' by Employer

Branding Institute, India, on the occasion of 6th Employer Branding Awards ceremony

held on the 10th of December 2011 at Hotel Taj Deccan, Hyderabad.

2012 -IMC Ramakrishna Bajaj National Quality Award 2011 was awarded to Britannia

Industries Limited.

CORPORATE INFORMATION

Name Designation

Nusli N Wadia Chairman

S S Kelkar Director

Nimesh N Kampani Director

Keki Dadiseth Director

Nasser Munjee Director

Vijay L Kelkar Director

A K Hirjee Director

Avijit Deb Director

Jeh N Wadia Director

Ajai Puri Director

Ness N Wadia Director

Varun Berry Executive Director

PRODUCTS

BRITANNIA BASKET OF GOODIES

BRITANNIA Healthy Start

Daily Delights

SHAREHOLDING PATTERN

Category of Shareholder

No. of Share-holders

Total No. of Shares

Total No. Shares held in Dematerialized Form

Total Shareholding As a % of total no. of shares

Shares pledged or otherwise encumbered

As A% of (

AS A% of (A+B

No. of Shares

As A% of tota

A+B)

+C)

l no. of Shares

(A) Shareholding of Promoter and Promoter Group

(1) Indian

(2) Foreign

Individuals (Non-Residents Individuals / Foreign Individuals)

1 2,250 2,250 - - - -

Bodies Corporate 6 60,866,095 60,866,095 50.75 50.75 - -

Sub Total 7 60,868,345 60,866,345 50.75 50.75 - -

Total shareholding of Promoter and Promoter

7 60,868,345 60,868,345 50.75 50.75 - -

Group (A)

(B) Public Shareholding

(1) Institutions

Mutual Funds / UTI

81 4,548,750 4,547,500 3.79 3.79 - -

Financial Institutions / Banks

16 170,290 164,940 0.14 0.14 - -

Insurance Companies

8 5,437,763 5,437,263 4.53 4.53 - -

Foreign Institutional Investors

143 24,590,371 24,590,371 20.5 20.5 - -

Sub Total 248 34,747,174 34,740,074 28.97 28.97 - -

(2) Non-Institutions

Bodies Corporate 1,071 3,642,770 3,597,815 3.04 3.04 - -

Individual shareholders holding nominal share capital up to Rs. 1 lakh 44,016

16,163,879 13,218,986 13.48 13.48 - -

Individual shareholders holding nominal share capital in excess of Rs. 1 lakh 37

4,480,502 3,093,827 3.74 3.74 - -

Any Others (Specify)

8 23,145 23,145 0.02 0.02 - -

Trusts 8

23,145 23,145 0.02 0.02 - -

Sub Total 45,132 24,310,296 19,933,773 20.27 20.27 - -

Total Public shareholding (B)

45,380 59,057,470 54,673,847 49.25 49.25 - -

Total (A)+(B) 45,387 119,925,815 115,542,192 100 100 - -

(C) Shares held by Custodians and against which Depository Receipts have been issued-m

- - - - - - -

Total (A)+(B)+(C) 45,387 119,925,815 115,542,192 - 100 - -

ANNUAL REPORT

Rs. in crores

Year ended Year ended

Particulars 31

March''14

31 March''13

Sale of Products 6,347.85 5,649.66

Other Operating Revenues 75.30 51.11

Other Income 34.82 55.47

Profit from Operations (PBT before other income, finance costs and exceptional items)

533.24 314.45

Profit Before Tax 542.62 332.18

Less: Tax Expense 172.79 98.31

Net Profit 369.83 233.87

Add: Profit brought forward 326.89 235.35

Profit available for Appropriation 696.72 469.22

Less: Proposed Dividend 143.91 101.66

Less: Tax on Proposed 24.46 17.28

Less: Dividend (including tax on dividend) for previous year on

equity shares issued under ESOS after the year end

0.22 -

Less: Transfer to General Reserve 36.98 23.39

Balance carried forward to Balance

sheet

491.15 326.89

Net Cash Flow from Operating Activities

614.51 272.01

DIVIDEND DECLARED

Announcement

Date

Effective

D

a

t

e

Dividend

T

y

p

e

Dividend

(

%

)

Remarks

27-05-14 23-07-14 Final 600.00 Rs.12.0000 per share(600%)Dividend

24-05-13 23-07-13 Final 425.00 Rs.8.5000 per share(425%)Dividend

28-05-12 17-07-12 Final 425.00 -

27-05-11 19-07-11 Final 325.00 Rs.6.50 per share(325%)Dividend

28-05-10 23-07-10 Final 250.00 -

27-05-09 09-06-09 Interim 400.00 -

29-05-08 14-07-08 Final 180.00 -

30-05-07 30-08-07 Final 150.00 -

31-05-06 18-07-06 Final 150.00 AGM (Revised)

27-05-05 08-07-05 Final 140.00 -

29-06-04 05-08-04 Final 110.00 AGM (Revised)

13-06-03 23-07-03 Final 100.00 Voluntary Delisting of Shares

05-06-02 18-07-02 Final 75.00 AGM

BONUS SUMMARY

The last bonus that Britannia Industries had announced was in 1999 in the ratio of 1:2.The share

has been quoting ex-bonus from September 27, 1999.

BONUS HISTORY

Announcement Date Bonus Ratio

Record Date Ex-Bonus Date

26-05-1999 1:2

12-10-1999 27-09-1999

07-10-1990 1:2

03-01-1990 -

07-10-1987 2:5

23-06-1987 -

26-07-1983 2:5

FUTURE PROSPECTS OF BRITANNIA

Despite a strong focus on the lucrative foods segment, Britannia Industries is among the cheapest

FMCG stocks, with its current market price of Rs 1700 discounting expected 12-

month earnings by just 14 times. This is a steep discount not only to Nestle India (32

times), but also to every other leading player in the FMCG space. After ceding

significant market share to ITC in biscuits until 2006, Britannia Industries has

regained some market share over the past couple of years. A host of new product

rollouts (iron fortified Tiger, Good Day Classic), expansion of the premium portfolio

(Good Day and Treat), the positioning of Nutri Choice as a snacking alternative and

the launch of Nano packs at Rs 2 and Rs 5 price points have all helped revive

Britannia’s sales. Going ahead, an expanding cakes and rusks portfolio (the business

has doubled in two years), further expansion of the Daily Bread bakery business and

new markets for Britannia’s brands in West Asia and Africa (through acquired

subsidiaries), offer growth opportunities. Though Britannia has managed to stabilize

its market share and add new product lines, strong top line growth hasn’t translated

into earnings growth. A sharp spiral in prices of commodity inputs such as wheat

flour, vegetable oils/fats and milk has resulted in earnings growth (12 per cent)

lagging sales (25 per cent). However, a moderation in wheat prices and sharp decline

in global prices of vegetable oils and milk have now significantly moderated cost

pressures. The lag effect of these, as well as the price increases taken in

September/October, may contribute to much better margins in the coming quarters.

For investors seeking a defensive option in choppy markets, the stock of Britannia

Industries is an attractive buy. With a product basket comprising biscuits, bakery and

dairy products and brands straddling several price points, Britannia’s portfolio is

among the least vulnerable, even within FMCGs, to any consumption slowdown. A

slew of product launches, efforts to position biscuits as snacking alternatives for adults

and forays into new segments have helped the company register healthy sales growth

and ward off threat to its market share. Low margins and spiraling input costs have

been the only point of concern in the company’s financials in recent quarters. Here,

signs of moderation in prices of key inputs promise a reprieve.

CADBURY

HISTORY OF CADBURY INDIA

1948 - The Company was incorporated on 19th July, as a private limited company under the

name of Cadbury-Fry (India) Private Limited and commences business soon

thereafter. Manufacturing facilities were set up gradually.

1964- The Company undertook at its own cost and responsibility the development of cocoa

growing in the country. A specialist cocoa advisory service was created. A cocoa

research centre was also created together with seeding nurseries and distribution centers;

Through its subsidiary, Induri Farm Ltd., the Company had set up facilities near Pune to

breed cattle that would give improved yield of milk at economic feeding costs.

1967 - Cadbury introduced the `Five Star and Gems' chocolates in 1967 and 1968 respectively.

1977 - The name of the Company was changed from Cadbury-Fry (India) Pvt. Ltd., to Cadbury

India Pvt. Ltd., on 7th June. It was converted into a public limited company on 11th

June. An agreement was entered into with Cadbury Overseas Ltd., (COL) U.K., on

3rd May, for technical services concerning new products and processes.

1979 - Industrial license for the apple juice project was received and the project was

commissioned on 16th September, 1980.

1981 - The Company received a certificate to manufacture 2,200 tonnes of chocolates at Indori.

1982 - On 17th December, the name of the Company was changed from Cadbury India Ltd., to

Hindustan Cocoa Products Ltd., consequent to 60% of its shares being held by the

Indian public.

1984 - The company launched its dairy milk chocolate, which has now become the flagship

brand of the company. A diversification into the ice-cream market in 1989 by

introducing Dollops was undertaken in a strategic alliance with Brooke Bond India (a

subsidiary of Unilever), which was sold off to the latter in 1992.

1985 - The Company explored the possibilities of entering into the business of software export.

1987 - In chocolate group, the Company launched new products such as `Crackle', `Orange',

`Strawberry Krisp', `Mello', and `Wildlife bar'. For every `Wildlife bar' sold, the

Company makes a contribution to the Wildlife fund, as per an agreement entered into

with the fund. In the foods drinks, the Company launched `Choc O Cheer.

1988 - The Chocolate division introduced some more new products to upper and lower ends of

the market. In the food drinks area, a higher protein drink under the brand name

`Enriche' was successfully introduced. The Company diversified into ice-cream

market and a product under the brand name `Dollops' was test marketed in Hyderabad

on New Year’s Day. In order to meet the growing demand for the Company's food

drink products, it was decided to establish a new factory at Malanpur, Bhind District

in the State of Madhya Pradesh.

1989 - The product of the food drinks was marketed under the brand name `Enriche'.

1993 - With effect from 18th July, the Company's Ice Cream business comprising manufacturing

arrangements with two well known brands Dollops & Lopstop was transferred to

Brooke Bond India Ltd. for a consideration of Rs 1062.65 lakhs and an assurance from

the company to Brooke Bond that they would not make or sell Ice creams for a period

of 8 years.

1995 - `Perk' was launched from its Malanpur plant. Towards the end of 1996, the Company has

launched a new range of sugar confectionery, `Googly', a trangy, fizzy fruit flavoured

candy in Chennai under the brand name `Trebor'.

1997- Cadbury India Ltd has launched Truffle - flavored soft centre molded chocolate bar. The

product was launched in Calcutta, Mumbai and New Delhi during October with subsequent

launches planned in Bangalore, Chennai, Hyderabad and other mini-metros in a phased-

manner in November; Cadbury India is launching its well-known beverage Bournvita in

sachets.

1998- Cadbury's launches Picnic: Cadbury India Ltd on March 23 announced the launch of

Picnic in Karnataka. It is being made at a specially imported new line in the state-of-the-art

factory near Gwalior; Cadbury India is celebrating its golden jubilee in India. To

commemorate the occasion, the company has organized a series of events for the

employees and business associates in Mumbai, the branch offices and plant sites.

1999 The Board of directors of Campco have approved the proposal to enter into an agreement

with Cadbury.

2000- Cadbury India Ltd has launched a new product, `Nice Crem', under its sugar confectioner

business. The sugar candy has been launched only in Mumbai; During 1994-95, Cadbury's

entire ranges of products were introduced in Bangladesh. Its new wafer product, Perk, was

launched in Sep.'95, in Mumbai, Delhi, Calcutta, Pune and Goa. The company launched a

new range of sugar confectionery, Googly a tangy, fizzy, fruit flavored candy in Tamil

Nadu under the Trebor umbrella brand name.

2001- Cadbury's has introduced Perk Slims, a slimmer version of the wafe; The Company has

relaunched Perk, its chocolate-coated wafer, it has four new layers covered in Cadbury

Dairy Milk Chocolate; Cadbury India Ltd. has launched a range of gift packs for Diwali.

2002 - The Company has launched Sweet Nothings range of gift packs for Valentine Day.

2003 -Cadbury India launches Cadbury's Heroes, which is a blend of company's leading brands.

Adams will now be a part of the mass markets division of Cadbury India.

2004 -Amitabh Bachchan new brand ambassdor for Cadbury Dairy Milk

2007- Cadbury India has rolled out a wafer-based chocolate called 'Ulta Perk' nationally. 'Ulta

Perk' has been test marketed in southern states like Tamil Nadu and Karnataka for

over 6 months and is now being launched in other parts of India. The product is

targeted towards teenagers and youth. 'Ulta Perk' will be the second product offering

from Cadbury in the chocolate-wafer segment, after the 'Perk' brand.

CORPORATE INFORMATION

Name Designation

C Y Pal Chairman / Chair Person

Harsh Mariwala Non Executive Director

Suresh Talwar Non Executive Director

V Chandramouli Executive Director

Jaiboy Phillips Executive Director

Sunil Sethi Executive Director

Anand Kripalu Managing Director

Radhakrishnan Menon Non Executive Director

Atul Bhatia Executive Director

Rajesh Garg Executive Director

Rajesh Ramanathan Executive Director

Narayan Sundararaman Executive Director

PRODUCTS OF CADBURY INDIA/MONDELEZ INTERNATIONAL

FINANCIAL RESULTS

BALANCE SHEET

Rs. Crores

Dec '09

Dec '08

Dec '07

Dec '06

Dec '05

12 Months

12 Months

12 Months

12 Months

12 Months

Sources Of Funds

Total Share Capital 31.07

32.18

33.20

34.36

35.71

Equity Share Capital 31.07

32.18

33.20

34.36

35.71

Reserves 499.73

432.22

372.94

357.73

398.10

Revaluation Reserves 0.00

0.00

0.00

0.00

0.00

Net worth 530.80

464.40

406.14

392.09

433.81

Secured Loans 2.28

32.02

1.28

3.26

3.71

Unsecured Loans 9.89

9.68

7.48

6.75

4.51

Total Debt 12.17

41.70

8.76

10.01

8.22

Total Liabilities 542.97

506.10

414.90

402.10

442.03

Dec '09

Dec '08

Dec '07

Dec '06

Dec '05

12 Months

12 Months

12 Months

12 Months

12 Months

Application Of Funds

Gross Block 724.75

586.94

544.77

430.21

395.50

Less: Accum. Depreciation 372.09

335.55

299.18

265.13

234.88

Net Block 352.66

251.39

245.59

165.08

160.62

Capital Work in Progress 152.53

123.86

25.58

82.18

29.55

Investments 18.01

2.92

298.49

253.42

258.21

Inventories 199.82

222.81

151.02

122.08

102.33

Sundry Debtors 31.09

19.67

13.14

11.37

10.68

Cash and Bank Balance 271.50

269.59

8.90

11.20

18.40

Total Current Assets 502.41

512.07

173.06

144.65

131.41

Loans and Advances 74.20

69.82

72.34

44.27

53.39

Fixed Deposits 0.00

0.00

0.62

0.62

0.00

Total CA, Loans & Advances 576.61

581.89

246.02

189.54

184.80

Current Liabilities 534.02

433.56

370.89

275.84

205.09

Provisions 22.83

20.40

29.91

25.96

13.41

Total CL & Provisions 556.85

453.96

400.80

301.80

218.50

Net Current Assets 19.76

127.93

-154.78

-112.26

-33.70

Miscellaneous Expenses 0.00

0.00

0.00

13.68

27.35

Total Assets 542.96

506.10

414.88

402.10

442.03

Contingent Liabilities 150.97

113.74

106.12

84.75

66.54

Book Value (Rs) 1,708.53

144.30

122.32

114.12

121.48

DIVIDEND SUMMARY

For the year ending December 2009, Cadbury India has declared an equity dividend of 20.00%

amounting to Rs 2 per share. Cadbury India had last declared a dividend of 20.00% for the year

ending December 2009.

BONUS SUMMARY

The last bonus that Cadbury India had announced was in 2000 in the ratio of 1:2.The share has

been quoting ex-bonus from June 19, 2000.

BONUS HISTORY

Announcement Date Bonus Ratio Record Date Ex-Bonus Date

25-05-2000 1:2 04-07-2000 19-06-2000

02-04-1996 3:5 06-08-1996 08-07-1996

25-07-1988 1:1

FUTURE PROSPECTS OF CADBURY INDIA

Cadbury India expects strong growth in India in future. The company plans to increase the

franchise of its existing brands and continue to explore new product opportunities

including adjacent market opportunities. Cadbury India is also looking for more

opportunities in the SAARC region.

KEY LEARNING’S

Identify pressure that is driving business to become more sustainable.

Always set mission, vision and objectives before starting.

People with a single focus: create joy

CONCLUSION

This sector will continue to see growth as it depends on an ever-increasing internal market for

consumption, and demand for these goods remains more or less constant, irrespective

of recession or inflation. Hence this sector will grow, though it may not be a smooth

growth path, due to the present world-wide economic slowdown, rising inflation and

fall of the rupee. This sector will see good growth in the long run and hiring will

continue to remain robust.

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged

goods. Items in this category include all consumables (other than groceries/pulses)

people buy at regular intervals. The most common in the list are toilet soaps,

detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff,

and household accessories and extends to certain electronic goods. These items are

meant for daily of frequent consumption and have a high return. The Indian FMCG

sector is the fourth largest sector in the economy with a total market size in excess of

US$ 13.1 billion. It has a strong MNC presence and is characterized by a well

established distribution network, intense competition between the organized and

unorganized segments and low operational cost. Availability of key raw materials,

cheaper labour costs and presence across the entire value chain gives India a

competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in

2003 to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption

in most product categories like jams, toothpaste, skin care, hair wash etc in India is

low indicating the untapped market potential. Burgeoning Indian population,

particularly the middle class and the rural segments, presents an opportunity to makers

of branded products to convert consumers to branded products. Growth is also likely

to come from consumer 'upgrading' in the matured product categories. With 200

million people expected to shift to processed and packaged food by 2010, India needs

around US$ 28 billion of investment in the food-processing industry.