Presentation On Britannia Industries Limited

SUBMITTED BY:- SUBMITTED TO:-

Harjot Singh MR.Rajat
Kritika Girdhar
Asmita Gupta
Sanchali
Robin
Hitika
• Britannia Industries Limited is an Indian food-
products corporation based in Bangalore, India.
• It is the first bakery company in India to
remove transfats from it’s biscuits.
• Britannia innovates for strong presence in
health and nutrition space.
• Britannia is among the most trusted food
brands and manufactures India’s favorite
brand like:- Gooday, Tiger, Nutri choice.
• The company was established in 1891,
with an investment of ₹265.
• Initially, biscuits were manufactured in a
small house in central Kolkata. Later, the
enterprise was acquired by the Gupta
brothers mainly Nalin Chandra
Gupta, a renowned attorney, and
operated under V.K Brothers.
• In 1918, C.H. Holmes, an English businessman
in Kolkata, was taken on as a partner and The
Britannia Biscuit Company Limited was
launched. The Mumbai factory was set up in
1924 and Peek Freans UK, acquired a
controlling interest in Britannia Biscuit
Company.
• Biscuits were in high demand during World
War II, which gave a boost to the company’s
sales. The company name finally was changed
to the current Britannia Industries Limited in
1979.
• Our core emphasis across Portfolios is on
healthy, fresh and delicious food.
• We demand the best of ingredients and
package their natural goodness in our
products without compromise.
 1. BISCUITS

 Good Day  Bourbon

 Crackers  Little Hearts
 Nutri Choice  Pure Magic
 Marie Gold  Nice Time Cookies
 Tiger
 Milk Bikis
 2. BREADS
 Whole Wheat Breads
White Sandwich Breads
 Bread Assortment
 Daily Breads
3.DAIRY
 Cheese
 Fresh dairy
 Accompaniments
 4.CAKES

 Bar Cakes
 Veg Cakes
 Chunk Cakes
 Nut And Raisin Romance
 Muffills
 Biscotti
• Relies more on Pull than Push.
• Has amazing brand equity due to presence in
the market for last many decades.
• Concentrates on promoting biscuits more
than any other product.
• They Use 2 Methods of promotion :-
1. Above The Line
2. Below The Line
• 1. Above the line Promotions:-
 Television Advertisements
 Magazines
 Newspapers
 Events Sponsored:- FILMFARE AWARDS
• 2. Below the line Promotions:-
 Public Relations Through Their Tagline “ EAT
HEALTHY, THINK BETTER “.
 Sales Promotion (Discounts, Coupons , Offers etc).
• India’s very own bakery and dairy products
brand that is trusted for its Quality.
• Britannia’s biggest USP is their Brand
Image as they are in the Indian Market
since 1891 and has a very good reputation.
• SEGMENT: People who need and consume
bakery and dairy products.

• TARGET: Middle and upper middle class families,

especially Kids.

• POSITIONING: India’s leading manufacturer of

premium quality and healthy biscuits, bakery and
dairy products.
• STRENGTHS
1. Around 120 years in the industry.
2.India’s most trusted brand with strong brand
recall.
3. Wide range of bakery products like biscuits,
rusks, cakes and dairy products like milk,
butter, cheese, etc.
4. Major share in biscuits industry.
5. Innovative products for health conscious
people like oats and porridge, Nutri Choice
biscuits for diabetes patients, Vita Marie Gold,
etc.
• WEAKNESSES

1. Lower market share in dairy segment.

2. Heavy expenditure on advertising and
marketing.
3.Similar products produced by many
companies means high Brand Switching.
• OPPORTUNITIES:-
• 1.Increase in purchasing power of people in
India.
• 2.Increase its share in the dairy industry.
• 3. Expansion in other countries.
• 4.Product line extension.
• THREATS

• 1.Lower price offering competitors.

• 2.Local dairies and bakeries.
• 3.Inflation can cause fall in sales and revenue.
• 4.Rise in cost of raw materials
• It is the cost of the product that the customer
pay to in terms of the monetary value.
• The Britannia company mainly focus on the
middle class and lower middle class families.
• Britannia has worked a lot on fixing the price
of it’s products. Therefore the Britannia
products will range from 5 Rs. to 50 Rs. Only.
Thus, Britannia products are much better in
quality and are good in price as well.
 LOWER SEGMENT :-
• To target the price sensitive customers, the
company has introduced biscuits that provide
them value for money and have nutritional
value.
• Tiger (100gms) - Rs. 5
• Milk Biscuits (100gms) - Rs. 7
 MIDDLE SEGMENT :-
• The company has a range of biscuits that lie in
the mid-segment that are light and include
both sweet and salty variety.
• 50-50 (135gms) - Rs.10
• Marie Gold (100gms) - Rs.15
• Time Pass (75gms) - Rs.15
• Little Hearts (67gms) - Rs. 10
• Nice time(100gms)-Rs.10
 PREMIUM SEGMENT :-
• The premium segment offers biscuits that have
more to them in addition to the taste and value
for money. They offer a wide Assortment of
biscuits with dry fruits and different cream
flavours.
• Good Day (100gms) - Rs. 12
• Treat (100gms) - Rs. 9 to Rs. 12
• NutriChoice Digestive (100gms) - Rs. 12
• Therefore, doing this has enabled Britannia
to widen its customer base.
1. Parle:-
• Parle Agro is an Indian private limited company that
owns Frooti, Appy, LMN, Hippo and Bailey, PARLE G.
• It also sells biscuits and snacks.
2. Amul:-
• Amul is an Indian dairy cooperative, based
at Anand in the state of Gujarat, India.
• It sells products like ice creams, lassi and dairy
products.
3. Nestle
• Nestlé's products include baby food, medical
food, bottled water, breakfast cereals, coffee
and tea, confectionery, dairy products, ice
cream, frozen food, pet foods, and snacks.
4. Mother Dairy
• Mother Dairy Fruit & Vegetable Pvt Ltd is
an Indian company that manufactures,
markets and sells milk, milk products and
other edible products such as ice cream,
paneer, ghee etc.
• Market share in Indian Market of Britannia
Biscuits is 33%.

Share

33%
Britannia
Others
67%
Ratios Mar 19 Mar 18 Mar 17 Mar 16 Mar 15

Earning per share

78.96 70.31 62.44 51.90
(EPS) 46.71
Price to sales (P/S) 7.07 6.41 4.82 4.04 3.61
Price to book (P/B) 18.33 18.45 15.72 18.88 20.95
Dividend payout
0.00 27.86 28.44 32.03 30.82
ratio
Book value per
168.10 269.49 215.17 141.68 103.01
share
Return on equity 27.78 29.29 32.67 44.05 50.37
• Decreasing EPS because of split of shares
• Increasing P/S ratio because increase in revenue
• Decreased P/B ratio
• Decreased book value per share because of splitting
of shares
• Decreased return on equity because of investment in
current and non- current assets
The other reasons for any increase/ decrease are
increase in reserves and surplus and trade payables.
• According to analysts, in case of Britannia industries ltd. It may not be the best
time to enter in this stock. The reason behind this is that :-
• The company has been impacted by increased competition in its core biscuits
portfolio and the ongoing rural slowdown .

• Traditionally, rural markets grow much faster than urban ones and, therefore,
the sharp fall in rural growth is impacting all FMCG companies, including
Britannia .

• Britannia underperformed the food industry which returned -0.8% over the
past year.

• Britannia underperformed the market in India which returned just 0.5% over
the past year.
source-(economic times)
• Britannia, however, plans to overcome this slow growth in its
biscuits segment by diversifying its product portfolio. The idea
is to maintain its overall growth rate with contribution from
new products.

• Most new launches—cakes, milk shakes, cheese, salty snacks,

wafers, etc.—have generated a good response. Britannia enjoys
strong brand equity and its pan-India distribution network has
been helping with these new products.

• Due to these innovative launches, analysts feel that Britannia’s

combined revenue share from new launches will double in
2019-20. New launches currently contribute around 4.5% to the
company’s revenue.