Britannia Industries Ltd.

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Company Profile

123 years ago, in a small house in central Calcutta (now Kolkata) an intrepid baker made a

batch of delicious, golden brown biscuits. These were meant for officers of the British Raj

and their families, people used to the exacting standards of English tea-time snacking. From

the paeans of ecstasy for that first batch of aromatic, flavour-some biscuits was born a long

tradition of delectable baking - and its Indian custodian, Britannia.

Over the last century and a quarter, Britannia has been serving the Indian consumer with a

range of fresh, nutritious and flavour-rich products. We take pride in our food making

traditions and in our innovations, in equal measure. We demand the best of ingredients and

package their natural goodness in our products, without compromise. We deliver a complete

sensory experience, in every product, every time.

Today, Britannia is a leading food company in India with over Rs. 6000 Crores in revenues,

delivering products in over 5 categories through 3.5 million retail outlets to more than half

the Indian population. Our core emphasis across portfolios is on healthy, fresh and delicious

food and we are the First Zero Trans-fat Company in India. 50% of our product portfolio is

enriched with micro-nutrients. Our products are also delivered through the Britannia

Nutrition Foundation to combat malnutrition among underprivileged children.

Britannia Dairy had its beginnings in 1997. Britannia was one of the first companies in India

to pioneer category defining innovations like Cream Cheese and introducing a host of

international flavors for its cubes & spreads in India. Today Britannia Dairy products

contribute close to 10% of the company’s revenue. Britannia markets its dairy portfolio on

the back of a well integrated cold chain logistics network and reaches 3 million outlets across

the length & breadth of this country.

Britannia's plants are located in the 4 major metro cities namely Kolkata, Mumbai, Delhi,

and Chennai. A large part of products are also outsourced from third party producers.

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Dairy products are out sourced from three producers - Dynamic Dairy based in Baramati,

Maharashtra, and Modern Dairy at Karnal in Haryana and Thacker Dairy Products at Howrah

in West Bengal. Britannia had spent 0.1 million US$ to hire Paris based designer Shombit

Sen Gupta to create a logo and packaging design. The logo had three objectives: 

Give consumer reassurance that it was a trusted and familiar brand.

Britannia has the ability to change.

It had to be appropriate to the business the company was in.

The logo consists of the company’s name and slogan, ³Eat Healthy Think Better´. The Hindi

rendition is ³Swastha Khao, Tan Man Jagao´. The corporate statement ³Eat Healthy Think

Better´ captures the Indian concept of the unity of mind and body.

The logo has three colours red, white, and green each having its own significance.

Colour Red denotes Energy and Vitality. White denotes purity. Green stands for Nutrition

andFreshness. The strike communicates Innovation and Futuristic Power of Britannia.Today,

Britannia is the largest biscuit and bakery company in the country with the dailysales

turnover of over Rs. 8478 million. It is the market leader in the 1.3-million tonne

Indian biscuits industry with a 60% share. It has maintained market leadership with a 48%

value market share in the organized sector. Britannia core businesses constitute of Bakery

and Dairy products. Bakery products account for 90% of the revenues and include Biscuits,

Bread and Cake & Rusk. Dairy products contribute to 10% of Britannia’s annual turnover of

Rs13.38bn. Throughout its existence, Britannia has operated on the principles of providing

products to the consumers that are healthy and tasty. This is brought about by the use of high

quality ingredients with a strong focus on naturalness and modern manufacturing practices.

The company today has a wide range of bakery products in the biscuit, bread and cake

segment. It has trimmed down its wide product portfolio by reducing the products from 35 to

around 25 and began to focus on value-added instead of low-margin products.

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Business Objectives

Britannia Industries has decided to focus on seven core brands in the biscuits and bakery

category. The brands included Good Day, Tiger, 50-50, Snax, and the Cream Treat brands,

among others.. With the launch of Tiger brand, it has taken a plunge in the low-end category,

taking competition head on with Parle, which is the leader in this segment. The company has

also diversified within dairy and bakery products to enter the butter, cheese and ghee

markets. The portfolio was expanded with the launch of butter, pure flavored milk in tetra

packs and UHT milk. Britannia has built an enviable retail distribution network, which

services 400,000 retail outlets in 2,200 towns with the help of 2,500 distributors. The

company is aggressively expanding its network with a bias towards the rural markets

Recently, in the ethnic food segment, the company introduced a new range of traditional

‘namkeens’ in Mumbai called

Britannia Snax. The new range includes seven varieties of traditional namkeens like 'Bikaner

ki Bhujia' and 'Rajasthani Alu Bhujia' in a price range of between Rs 5 and Rs 20.The

company isin the process of setting up a Greenfield Biscuit Project in Uttaranchal to augment

its production capacity, entailing an investment of about Rs 55.2 crore. This plant will have

capacity to produce over 45,000 tonnes of two or three varieties of biscuit per annum. So

after over seven decades of being inseparable part of life in India, Britannia is now set to

usher its customers into a healthier and tastier future.

In the 21st Century, Britannia strode as one of India's biggest brands and the pre-eminent

food brand of the country. It was also equally recognized for its Innovative approach

to products and marketing.

BIL is the leading player in Bakery Products (Biscuits, Bread, Rusk and Cake),

jointly promoted by French food major Danone and Nusli Wadia. It enjoys market leadership

in Biscuits with 39 % market share in terms of value. It owns key brands like Tiger, Good

Day and Marie Gold.

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 There are six brands contributing to 90% of its sales. Each of these brands generate sales

exceeding Rs.1 billion and these brands include Good Day, Tiger, 50:50,Treat, Milk Bikis,

andMarie Gold. The company wants to give a special thrust on these brands for better

margin. New variants in these brands, attractive packaging formats and introduction of small

SKUs are expected to give volume growth in the domestic market. In the last year these

brands achieved double-digit growth.BIL enjoys market leadership in all the sub-categories

of biscuits, except in the Glucose category where Parle is the leader. A recent strategic

acquisition of 50% stake in Bangalore based Daily Bread gives footholds in premium

breads, cakes and high end ready to eat foods and snacks. BIL is looking forward to

increasing its stake in it from current stake of 50%.Britannia is playing aggressively in the

out of home consumption market, which has enormous potential. The low unit products help

in broadening the customer base. Small and convenient SKUs attract more consumers to

consume these, while they are outside the home.

Chota tiger has been launched at Rs.2/- for 50 gms similarly Marie gold has been launched at

Rs.5/- for 75 gms, 25 gms of Little Heart at Rs.4/-.We believe that OOH category will

contributes about 7-8% of total sales in next two to three years.

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Short-term Objective:

To improve image to shareholders. 

To improve internal processes and controls.

To increase NSV and ROI.

Long-term Objective :

To be the lowest-cost producer in the market.

To become largest volume player in the bakery industry.

Quality Objectives:

Reduction in customer complaints

To start documentation of market returns dealer wise

To empower the workmen on individual work area to ensure that only quality product 

are passed on the next page of production.

Continuous training for the development of human resources.

To minimize the accident level.

As part of the growth strategy, the company always tries to build on the values of brand

"Britannia" by aggressively pursuing tasty yet healthy offerings of mass appeal and also

launching a host of affordable products, which would help rejuvenate the mother brand and

drive category consumption.

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Vision and Mission

Vision

To dominate the food and beverage market in India with a distinctive range of “Tasty Yet

Healthy” Britannia brands.

Mission

To dominate the food and beverage market in India through a profitable range of “Tasty yet

Healthy” products by making every Indian a Britannia consumer. “We want to be part of our

consumer- at home, out of home, a natural part of his life”. 

On the operations front, the company was making equally dynamic strides. In 1992, it

celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity -

"Eat Healthy, Think Better" - and made its first foray into the dairy products market. In 1999,

the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had

with 'Brand Britannia'.

Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent

food brand of the country. It was equally recognised for its innovative approach to products

and marketing: the Lagaan Match was voted India's most successful promotional activity of

the year 2001 while the delicious Britannia 50-50 Maska-Chaska became India's most

successful product launch. In 2002, Britannia's New Business Division formed a joint

venture with Fonterra, the world's second largest Dairy Company, and Britannia New

Zealand Foods Pvt. Ltd. was born. In recognition of its vision and accelerating graph, Forbes

Global rated Britannia 'One amongst the Top 200 Small Companies of the World', and The

Economic Times pegged Britannia India's 2nd Most Trusted Brand. 

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SWOT Analysis of Britannia

STRENGTH WEAKNESS

Extensive distribution network

Providing a wide range of biscuits

Innovative advertisement

Widely accepted in all generations

Easily available in various form

Depends on stores and retailers

Low penetration in rural area

Not an extensive overseas market

Increases the cost of food products

Increasing demand for diet and sugar free biscuit

Retaining loyal retailers and wholesalers

Targeting interior area of India

Generate employment opportunity

Local bakery products limitation

New entrants like Cadbury Oreo, Sunfeast Dark fantasy

Margin war among the major brands

Unable to utilise all the resources efficiently

OPPORTUNITIES THREATS

Recommendations

The manufacturer should understand the consumer behaviour to beat the competition. Britannia should adopt a Push strategy of marketing in order generate more sales and

giving more margins to the retailers. The company should try to get associated with the Government initiatives as Mid-day

meal, Sarva Shiksha Abhiyan, National Rural Health Missions Introduce new flavours in their product range. They can open dedicated Britannia stores as of Amul for more market share and

differentiating from others in the industry.

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Business Strategies

Strategic Management & Strategy Formulation

Framing Mission and Objectives:-

In the step Britannia Company Forms its mission and objective, which has been decided by

top level management mainly by Mrs. Nusali wadia and Ms. Vinita Bali and Varun Berry.

Analysis of the Internal Environment:- In this part Britannia company analyze its strength,

weakness , opportunity, and threat which I have already shown you before, this is also

decided by the top level management or build up automatically as company progressed up.

Analysis of the External Environment:-

In this part company done external analysis i.e. PEST analysis. In market Briatannia is a big

name so politically he is strong, Chairman Nasali wadia is engaged in many Indian

government and political society.

Gap Analysis:-

Britannia biscuits is the most selling biscuits brand across the globe, Britannia biscuits are

healthy, efficient, powerful, standardized, segmented according to categories and cheap in

price. So all together customer gets what they need, sometime there is gap between their

expectations and companies delivery of product.

Choice of Strategy:-

Britannia’s first choice shop they kept Britannia contest to attract customer. They can think

differentiation as their alternate choice.

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Strategy Implementation

Formulation of 

Plans: -

The strategy planned by top level management. But the implementation part has done by

Business level and function level. The plan that how can they achieved the target. For this

they divided the big work into small work. After that they implement small work.

Programs and projects:-

After acquiring the biggest share in the market they are preparing their company for the next

step to achieve its goal. Their management is trained by the training program to make them

familiar with the Britannia family.

Resource Allocation:-

To develop Britannia Biscuits market Britannia company is using various resources such as

physical resources, financial resources and human resources.

Structural Implementation:-

There is need for organizational structure to implement strategies Britannia companies

structure is the framework through which an organization operates.

Functional Implementation:-

A manager can also change activity of the sales person. The manager that is head of the

department of the Britannia company take all roles and responsibilities to get the work done

from others. the decisions taken by them are implemented by all the workers or employees.

Behavioral Implementation:-

Britannia is very much employee oriented organization themarketing departments have given

the performance bonus & they have been send to the fatoryto demonstrate biscuits.

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Strategy Evaluation

Setting of Standards:-

In this level manager set target to his sales person, generally every departments work on

target basis.

 Measurement of Performance:-

 Now in this case manager analyze that whatever the target had given to the sales peoples has

done or not.

Comparison of Actual Performance with standards:-

Now they check the actual performance of the sales people and analyze the performance.

Finding out deviations:-

In this case they check why the sales people not able to achieve the target, whatever the

target had given to the sales people where was the deviation.

Analyzing

Deviations: -

After that the manager and top level management check that deviation.

Taking Corrective measures:-

After that manger tries to solve those deviation. Basically the sales people will again send to

the training field review and on job training, this is the method Britannia adopts quite often.

 

 

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Internal and External Analysis of Britannia Industries

Bakery industry in India today has an important place in the industrial map of the country. With

rapid growth, improvement in standard of living, westernization, increase in spending power,

changing eating habits of people and increased transition from the unorganized sector to

organized sector, bakery products have gained immense popularity among masses.

Industry Structure

The bakery industry is mainly popular in the southern part of India like the states of Andhra

Pradesh, Maharashtra, West Bengal, Karnataka, Tamil Nadu and Kerala. Around 60% of

production takes place in the unorganized sector. There are around 2 million unorganized

bakeries in the country, comprising small bakery units, cottage and household type

manufacturing. The organized sector consists of large, medium and small-scale manufacturers

producing bread and biscuits. The market size for the industry in India is expected to reach 47

billion by 2015 with a growth of 50 to 60 % per annum.

Industry Segments

Bread: About 50% of this segment is organized and is growing at a rapid rate of 14-15% per

year. The estimated size of the organized bread industry is about  50 billion.

Biscuit: The biscuit market in India is estimated to be $100 billion and the industry is also

gearing up to aggressively tap the medium and premium segment within the country. Biscuit

industry in India in the organized sector produces around 60% of the total production, the

balance 40% being contributed by the unorganized bakeries. Mainly in rural India the biscuit

consumed by consumer is from unorganised sector.

PORTER'S FIVE FORCES MODEL:

Competitor Rivalry:

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BIL has a market share of 38% and has been growing at 27%, compared to the industry growth

rate of 20% Battle-scarred Britannia on expansion spree, Business Standard and has many

competitors based on the nature of product. Parle and ITC (Sunfeast) pose a great competition to

BIL. BIL earning major of its income from the biscuits, and Parle and ITC are the other major

players in biscuit market. BIL is also into the production of dairy products, where the two major

players in market are Amul and Nestle. Amul is the leader in the dairy industry. There is also a

high level of competition from the unorganized baking sector. Overall rivalry is high.

Threat of New Entrants:

The entry on a small scale dairy industry and in the unorganized baking sector is easy. But on the

other hand to enter the large scale dairy industry and organized baking sector a huge amount of

investment is required in terms acquiring assets and to establish supply and distribution chains.

Government regulations pertaining to food norms and others may also seem to be unattractive.

Looking at the latest trends, the bakery industry is expected to earn huge revenues which might

attract new entrants. So the threat of new entrants is moderate.

Threat of Substitutes:

Savoury snacks, crisps, cereals, fruits and other fast food can be substituted for biscuits. Dairy

products are dubious to be replacing with other products as they key ingredients of majority of

people’s diet. So the threat is a very moderate threat of substitutes.

Buyer’s Power:

The buyer’s of these products could be a retailer or the consumer. Both the dairy and bakery

industry are price sensitive, so a little increase in price might lead the consumer to shift other

brand or product. So the buyer’s power is calculated to be very strong.

Supplier’s Power:

The major supplies for a bakery industry include wheat, sugar and other agriculture products.

And the major supplies for dairy products are milk. It’s difficult to bargain with the suppliers of

the above mentioned inputs as the price of these inputs is majorly influenced by the production

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of these inputs. The prices tend to be high as the demand for these products is rising at much

faster rate than supply.

The secondary supplies include the packaging material. The secondary supplies can be easily

substituted with the low-cost ones to save on cost. Overall the supplier’s power is assessed to be

moderate.

Conclusion of Five Forces Analysis:

There is an existence of major players in the market with a moderate level of threat of new

entrants and substitutes. The supplier’s power is moderate but the buyer’s power is measured to

be strong. So the rivalry is suggested to be high.

PESTEL ANALYSIS

Political:

Exemption on Customs Duty on Sugar Raw Material Import: Due to the shortage in the

production of sugar the deadline for the exemption on customs duty on raw sugar imports has

been extended. Exemption on customs duty will help in purchasing sugar at lower cost, which in

turn will control the cost of production.

VAT on Biscuits: The VAT of 12.5% on Biscuits. Price of the biscuits might need to be

increased due to the high VAT rates which may result in switch of brands due to the highly

competitive market.

Removal of Import Duty on Dairy Products: The whole-sale price based inflation indicates that

the milk prices have moved up by 14.73% over the last year. The imports at cheaper rate would

help in reduce the cost factor for dairy products.

Incentives to Build Cold Storage Facilities: Wastage of food items due to lack of cold storage

facilities lead to a loss of Rs. 500 billion every year. The government announces schemes and

incentives to attract investments in cold storage warehousing would help in preserving products

better and reduce the wastage cost.

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6

Economical

Shortage of Milk: Even though the milk production has risen by 4.6% compound annual average

growth rate, it still cannot match up with the increasing demand. Price of milk increased by

12.6% to 13.6% . This can cause an increase in the input cost for the dairy products and which in

turn can lead to hike in price or lower profit margins.

Globalization: Globalization a universal phenomenon is affecting each and every industry. This

can serve as an opportunity to expand the business to a global level but on the other hand there is

a threat of new entrants from international market.

Requirements for Logistics: Logistics in India suffer due to the poor infrastructure and other

limitations. Sophisticated third party logistics system will help in proper supply chain

management and on time delivery of goods, which help in maintaining the shelf life of goods on

meeting the demand on time.

Social:

Need for Healthy Eating Habits: Studies say that Indians are more prone to Coronary Artery

Disease (CAD), which is the major independent risk factor causing Cardiovascular diseases, due

to the smaller calibred arteries found in Indians. This suggests that Indians should move towards

more healthy food and diet. This could be a new area to explore for Britannia with its new health

associated products like Nuti-Choice biscuits and Actimind flavoured milk.

Problems with Cloned Livestock: Cloned animals are supposed to be suffering from large-

offspring syndrome. The mother cows face a problem in giving birth to the cloned animals as

they are larger than normal. Also these cloned animals suffer from health which might make

unsafe to consume the produce from them.

Technological:

Cloning of Livestock: India, a late entrant in cloning research, is now moving with a great pace

in cloning technology. ‘Hand guided cloning technique’, a technique very different from the

conservative cloning practice has been a successful venture.

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New Age Packaging: The new packaging systems help in protecting food from micro-organisms

by creating shelter layer. It uses new technologies like oxygen scavenging function, atmosphere

control, biodegrability etc. and is low cost.

Environmental:

Change in the Climatic Conditions: Climate plays an important role in the agriculture process.

The change in the rainfall pattern has been a matter of concern now in India. The agriculture

sector in areas which are monsoon dependent suffered badly due to the change in the rainfall

pattern. The sector suffered a huge loss in terms of total output. The loss in crop will affect the

input supply and this might delay or cause problems in the production. So the industry might not

be able to meet the demands resulting in the loss of customers.

Legal:

Raising the Norms for the Probiotic Food: There is a need for setting the standards for probiotic

food. Clinical tests should be conducted on the probiotic foods before they could reach the

market for sale. The Indian Council of Medical and Research has submitted the proposal for the

same to the government. Strict norms will help in raising the quality standards but on the other

hand the cost and time of production might subsequently increase.

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7

Identifying key success factors

WHAT DO

CUSTOMERS

WANT? (Analysis of

demand)

HOW DO FIRMS

SURVIVE

COMPETITION?

(Analysis of

competition)

KEY SUCCESS

FACTORS

BISCUITS Low price, variety,

quality, quantity,

flavours, availability

at convenient stores,

discounts, offers,

packaging, taste,

healthy, wheat

instead of refined

flour, health

conscious.

Markets localized,

extension of product

line, managing

supplier and

distributors network

for availability of

products, launching

promotional offers,

R&D in tastes and

flavours, introducing

more dietary and

healthy product

range.

Convenient locations,

competitive price

challenge, wide

variety of offerings,

new product launch,

quality parameters.

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Corporate Restructuring

Food products company Britannia Industries Ltd is revamping its go-to-market strategy as

part of an overall top management restructuring.

The company, which earlier had 'category directors' for its biscuits business, each under

Health & Wellness and Delight & Lifestyle, has now done away with the two and has said

one director-marketing will spearhead both the categories. Shalini Degan, who was the

category-director for Delight & Lifesytle has quit the company, while Anuradha

Narasimham, who was the category director-Health & Wellness, is now made director-

marketing.

The move to revamp the channels it uses to connect with customers started early in January,

when Varun Berry was brought in as the chief operating officer (COO), replacing the then

COO and vice-president-marketing Neeraj Chandra. Chandra was then moved as vice-

president of strategy and new business development, the position which he has since quit.

Recently, Britannia announced that its Managing Director Vinita Bali would now focus on

global operations and new business development, while Berry would lead the Indian

operations. The move to integrate the two categories may be the first key step which Berry

must be associated with, at a time when Britannia is facing intense heat from the likes of ITC

Foods and Parle.

Britannia, which controls around 33 per cent in the biscuits market, almost similar to the

share held by Parle, has been trying to reduce its dependence on the plain vanilla glucose

biscuits and to innovate aggressively on the value-added front. Bali has been championing

this cause aggressively for the past five years and as a result of which, the share of the

glucose biscuits has dropped to 19 per cent from 40 per cent in 2007. Even as Britannia has

been driving value in this segment, Bali has also brought about a change in the dependence

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of the biscuits to a lot extent, by leveraging on dairy, bread, rusks and cakes. The dependence

of biscuits is now at 81 per cent from the earlier close to 90 per cent.

"Sales of innovations has increased by 1.5 times in the past two years. Realisation on these

products is two-five times than the normal variants, while the cake, bread and biscuits range

is growing at a CAGR (compound annual growth rate) of 25 per cent," said Amnish

Aggarwal, senior vice-president-Research, Prabhudas Lilladher.

In addition, the dairy business is expected to emerge as the next growth driver. "This

business has seen 22 per cent CAGR in sales with margin expansion due to huge potential in

dairy and focus on higher margin niches," he added.

Backed by these key strategic moves and helped by cooling-down inflation, Britannia

reported a 13.5 per cent growth in sales for the March quarter. Its profit jumped 65.6 per cent

to Rs 87.85 crore during the quarter, while the operating margin at 7.8 per cent.

"Britannia remains one of our top mid-cap picks as an improving product mix drives top line

and margin growth, and reasonable valuations (of the stock price) offers sizeable upside,"

said Gaurang Kakkad, an analyst with Religare Institutional Research.

Britannia Industries has kicked off an organisational restructuring by changing executive

portfolios and reporting structure in the last six weeks.

In a marked departure from the past, sales managers and purchase managers of branches

across the country will now report directly to the concerned national managers at the FMCG

major's corporate headquarters in Bangalore.

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Till recently, all the managerial functions were under the direct scanner of zonal general

managers. Britannia had a policy of having four independent business units — Mumbai,

Chennai, Kolkata and Delhi zones — headed by a general manager.

Under the new dispensation, zonal general managers report to the head (industrial strategy)

for industrial strategy and cost reduction activities. For all other matters, they report to the

chief operating officer Nikhil Sen.

V Kaul, the company's technical head till a few days ago, has now been designated as head

of technical and industrial strategy. The buzz is that zonal general managers will be

redesignated as regional industrial managers.

While the branch purchase managers report to the national purchase manager on purchases of

key items like fat and sugar, they are still accountable to zonal mangers for local purchases.

All branch sales managers will now directly report to the national sales manger. 

While GS Arora and V Tiwari are the general managers for the Mumbai and Delhi zones,

respectively, Saroj Chakravarthy is the GM for the Calcutta zone. R Wakhle, who was the

general manger for the Chennai zone, was recently put in charge of product development.

According to sources, Mr Ramani is expected to replace Mr Wakhle as the head of the

Chennai zone.

Mr Sen did not respond to a questionnaire on the organisational recast. His office said that he

could not respond as he was busy in meetings.

Another major change that took place recently is the bifurcation of the post of national sales

and marketing manager. Satish Mane, who recently left to join the Chennai-based

CavinKare, had been handling the sales and marketing portfolios for a long time.

Post-bifurcation, Naveen Chopra is the new national marketing manager and A Mukherjee is

the national sales manager. S Pendharkar is expected to manage the quality brand. He was

earlier looking after the snacking division. N Shridhar, who had been roped in from Coca-

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Cola, is directly reporting to the company chairman Nusli Wadia. Wadia group sources said

that the chairman himself conducts monthly operational meetings.

Brand managers, who were only looking after advertising & promotions, are understood to

have been made responsible for the profitability of the brand. In some important cases,

Britannia has issued circulars for employees to get a taste of these changes. 

Sources said that the restructuring will enable the corporate headquarters to have direct

control on all the major functions. "Recent restructuring is aimed at improving the

performance of the employees," said an industry source close to the company.

The restructuring comes shortly after the departure of around 20 people from the

organisation, including six senior people and eight middle-level executives. Prominent

among the executives who left the organisation are Satish Mane, Harikrishna and Ravi

Mannath.

While Harikrishna, who was the GM, human resources, has joined Banglaore-based Arvind

Brands, Ravi Mannath, the former company secretary, is now with MRF. G Sarkar, who used

to be a general manager in the finance department, has also quit the reorganisation.

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Corporate Governance

The Britannia Steam Ship Insurance Association Limited (Britannia or the Association) is a

mutual insurance association, otherwise known as a P&I Club, which provides protection

and indemnity and freight, demurrage and defence cover for ship owners and charterers

(called Members of the Association). It is a private company limited by guarantee and

incorporated in the UK. As a company limited by guarantee it has no shareholders. Instead

each Member agrees to pay a nominal sum in the event that the company is wound-up.

The Articles of Association (Statutes) of the Association set out the terms under which

Britannia operates, with its mutual status defined by the provisions in the Articles together

with the Association’s Rules.

Britannia is a member of the International Group of P&I Clubs and a signatory to the

International Group Agreement.

Britannia has appointed Tindall Riley & Co Limited, through its wholly owned subsidiary

Tindall Riley (Britannia) Limited, as the Managers, who manage its day to day business.

Tindall Riley & Co Limited is paid a management fee for these services which is disclosed in

the annual report and accounts.

Corporate governance is the system of rules, practices and processes by which a company is

directed and controlled. Corporate governance essentially involves balancing the interests of

the many stakeholders in a company - these include its shareholders, management,

customers, suppliers, financiers, government and the community. Since corporate governance

also provides the framework for attaining a company's objectives, it encompasses practically

every sphere of management, from action plans and internal controls to performance

measurement and corporate disclosure.

Britannia considers good Corporate Governance a pre-requisite for meeting the needs and

aspirations of its shareholders and other stakeholders in the Company and firmly believes

that the same could be achieved by maintaining transparency in its dealings, creating robust

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policies and practices for key processes and systems with clear accountability, integrity,

transparent governance practices and the highest standard of regulatory compliance. The

Board is headed by a Non-Executive Chairman and comprises eminent persons with high

credentials of considerable professional experience and expertise in diverse fields who

actively contribute in the deliberations of the Board, covering all strategic policy matters and

decisions.

As on close of business hours of 31 March 2015, the Board comprised of Twelve (12)

Directors consists of Eleven (11) Non-Executive Directors of which Seven (7) Independent

Directors constituting more than 50% of the Board strength. During the year 2014-15, eight

(8) Board Meetings were held. The maximum gap between any two Board Meetings held

during the year was not more than four (4) months.

The Company has laid down a Code of Conduct for the members of the Board as well as for

all employees of the Company. The code has also been posted on the Company’s website -

www.britannia.co.in. The Managing Director has confirmed and declared that all members of

the Board and Senior Management have affirmed compliance with the Code of Conduct.

The financial statements in accordance with the applicable accounting principles in India, the

mandatory Accounting Standards (‘AS’) prescribed by the Companies (Accounting

Standard) Rules, 2006, the relevant provisions of the Companies Act, 1956 (‘the Act’), the

guidelines issued by the Securities and Exchange Board of India (‘SEBI’) and the Companies

Act, 2013 to the extent relevant. The Board has constituted the following Committees of

Directors:

1) Audit Committee:

2)Remuneration / Compensation Committee:

3) Nomination Committee

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C.S.R

Corporate Social Responsibility (CSR) is defined as the voluntary activities undertaken by a

company to operate in an economic, social and environmentally sustainable manner. In

India ,many firms have taken the initiatives of CSR practices which have met with varying

needs of the society. The present study has made an attempt to understand the status and progress

and initiatives made by large firms of India in context to CSR policy framing and

implementationCorporate Social Responsibility (CSR) embodies the various initiatives and

programs of Britannia Industries Limited (“Company”)in the communities and environment in

which the Company operates. The Board of Directors of the Company has constitute a CSR

Committee of Directors comprising of four directors with three being Independent Directors.

It represents the continuing commitment and actions of the Company to contribute towards economic and social development and growth. In 1997 Britannia underwent a re-branding of sorts and adopted the corporate mantra 'Eat Healthy, Think Better', and correspondingly cut out all transfats from the formulation of all its biscuits. It was the first company in India to do this and was therefore the front-runner in acknowledging the health problems associated with a diet high in transfats.  They were also the first company to reduce sodium and sugar levels in their products. Apart from these,  Britannia is also actively involved in all aspects of CSR. This is something that Bali is very insistent upon and believes that strategic CSR can act to improve socio-economic conditions the world over.

She is particularly involved in using CSR as a powerful tool to increase awareness of childhood malnutrition and formulates her products to cater to this.  Bali has steered Britannia on the Health and Nutrition course with focus on launching Better for You and Fortified products as well as driving advocacy and awareness. Britannia is engaged with GAIN (Global Alliance for Improved Nutrition), UNWFP (United Nations World Food Program), CGI (Clinton Global Initiative) as well as grassroot initiatives. Britannia, as the company has two insights – one with commercial sales of the nutritious fortified biscuits in the market and the other by serving the malnourished children with fortified nutritious biscuit through public private partnership with NGOs.

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Sustainability and  public health relevance are key issues for all CSR activities at Britannia. The Britannia Nutrition Foundation works towards the control and prevention of malnutrition. BNF is an independent, autonomous, non-profit entity that leverages the strengths of Britannia’s wide stakeholder network to address the issue of child nutrition. The Navjyoti project was launched to fight iron malnutrition through the supplementation of biscuits with iron. These biscuits are distributed to many mid-day meal schemes in Andhra Pradesh that reach underprivileged children. This program has been recognized by GAIN.

Apart from this Bali has a special interest in women's rights, health and hygiene education and has incorporated these ideas into Britannia's strategic CSR model. The large portfolio in biscuits and dairy products provides health and nutrition to both children and women. Many brands in have been fortified with vitamins and minerals in addition to iron.

In their dairy portfolio they make available products like milk and yogurt which are low in fat and are always exploring the introduction of healthy food across all segments. For example, they were one of the first companies to introduce sugar-free and digestive whole-grain biscuits. During the recession, the company adopted various other CSR measures to cut costs and improve productivity. Bali says that focusing on reducing energy requirements and cutting wastes through better use of energy was an essential part of revenue management.

Britannia Industries Ltd exports its products to over 55 countries around the world and profits have shown exponential increase since Bali has taken over at the helm and introduced various CSR initiatives. This is a testament that CSR can act as a value-add for many companies which enhances market share and profits.

The rotart club conferred the “Corporate Social Responsibility (CSR) Award” on Britannia Industries Ltd. The award was given in recognition of the good work done by the Britannia Nutrition Foundation. In order that the award serves as a catalyst for a lasting service initiative, the Club launched the “Rotary Club of Madras-Britannia Nutrition Initiative” on the occasion.

Britannia has agreed to partner with the Club by providing specially made iron fortified biscuits free of charge as the first phase of the initiative. The biscuits will be distributed as part of the Club's Nutritious Meals Programmes.

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Conclusion

Britannia Industries limited is the India's largest manufacturing company covering all sectors of bakery products and diversifying into dairy products market. Developing and generating trust amongst its consumer base and delivering quality products had made it success for Britannia.  Britannia will surely be able to fulfil its desired mission of making every third person the consumer of Britannia if it follows the path of innovation and diversification.

Britannia Industries Limited is an Indian food-products corporation based in Kolkata. • It is one of India’s best known brands and also one of the most admired Food Brand in the country. • It is the largest company in the food processing industry whose product range also includes breads and cakes. • Britannia has a basketful of goodies with biscuits like – NiceTime, Tiger, Marie Gold, 50 50, Maska Chaska, Milk Bikis. Today, Britannia is a leading food company in India with over Rs. 6000 Crores in revenues, delivering products in over 5 categories through 3.5 million retail outlets to more than half the Indian population. Britannia was one of the first companies in India to pioneer category defining innovations like Cream Cheese and introducing a host of international flavors for its cubes & spreads in India. Today Britannia 

Dairy products contribute close to 10% of the company’s revenue. Britannia markets its dairy portfolio on the back of a well integrated cold chain logistics network and reaches 3 million outlets across the length & breadth of this country. Britannia is recognized as one of the most trusted, valuable and popular brands among Indian consumers in various reputed surveys.

Britannia Industries Ltd. has a number of awards and accolades in its 

name like :

Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World'.

The Economic Times pegged Britannia India's 2nd Most Trusted Brand.

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http://timesofindia.indiatimes.com/business/india-business/Britannia-announces-organizational-restructuring/articleshow/20293677.cms

http://www.business-standard.com/article/companies/britannia-revamps-operational-structure-113060400042_1.html

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