ANALYSIS OF THE COMPANY’S

ANNUAL REPORT
 Kishore Sridhar
Vishnu

TEAM Nithin Chand

Nagendra prasath
Deepak Ramanan
Introduction:
■ Britannia is one of the biggest FMCG companies in India with products available across various categories.
■ Britannia industries limited is food product company based out of Kolkata having 38% market share in
biscuit industry in India.
■ However, in recent times Britannia had to face competition from players such as Kraft foods and ITC with
the brands Oreo and sunfeast making strong foot hold in India.
■ While Britannia has been competitive, the biscuit industry itself is facing challenges thanks to move from
glucose based biscuit purchases to cookies.
■ In cookie segment, Britannia again is market leader thanks to its Good day brand but is seeking to find the
next growth avenue for itself.
■ The company with more than 10 brands available in the biscuit category itself and a strong foothold in the
market, Britannia is looking for options to grow in other categories as well and in awareness of its
customers for other offerings as well.
Innovation in the company:
■ The company started various innovation processes in order to achieve the better packaging and delivery of the
damage free goods from the factories to the various distribution centres in the year 2016.

■ The company appointed a specific consultant by name Shining Consulting to focus on the technological solutions
to launch new, differentiated products and packaging, upgrade existing offerings and explore new ingredients and
processes.

■ Pure Magic Deuce is a disruptive innovation’ this news article published last year is an evidence to the same.

■ The company borrowed the specific peculiar technology from Denmark from a chocolate baking family in the year
of 2018 to enter into the chocolate segment.

■ The R&D center was set up in Bengaluru last year helped the company get the competency and capability to bring
about a new format to the country.
Total cost of materials consumed to the total income ratio
for 2 years

■ The cost to the revenue has been reported to be 46% in the year 2018.

■ In the year 2017 the percentage of the ratio has been around 49%.

■ There has been significant reduction in the materials consumed cost to the net income in the year 2018 by 3%.
There has been an increase in the cost of materials consumed that has shadowed the income earned in 2017-
18 though the income is higher than 2016-17.
Inventory levels
■ Company reported consolidated revenue growth of 10.8% for FY 2018-19. This was made
possible through heightened innovations expansion in distribution and cost efficiency programs.
Company outsourced its IT operations:

■ Britannia Industries selected Hewlett-Packard India (HP) to manage its entire IT requirements,
including infrastructure solutions, consulting and outsourced services in the year 2017.

■ The three-year contract makes the Rs.22 billion Britannia the first FMCG firm in the subcontinent
to outsource its IT operations for business transformation and accelerated growth in a competitive
environment.

■ The partnership envisages that HP would implement tailormade solutions and align IT with
Britannia's growth strategy, spawning its back office and front office operations, production plants
at multiple locations, supply chain management, sales and marketing divisions and customer
relationship.
CSR initiatives of the company:
■ The news article that was published in the year 2013 says that the company was producing and dumping almost 100 kgs

of the waste in bangalore.

■ The company has taken an initiative 6 years back to convert its wet/food waste into the manure thereby it could reduce

the wastes that the company disposes off by 30%.

■ The company also started the Khadi gram Udyog to recycle the paper and plastic wastes from the offices of Britannia.

■ This year, the Company joined hands with Sir Ness Wadia Foundation by contributing ` 14.37 Crores of its CSR funds

towards health care projects for mother, child and nutrition.

■ In continuation to the commitment of the refurbishment of Nowrosjee Wadia Maternity Hospital, the Company

contributed ` 7.77 Crores to this project.

■ The Company has spent ` 22.14 Crores as part of its CSR initiatives. Details of the projects are
provided in Annexure-B- CSR Report forming part of Director’s Report.

■ At Britannia, the CSR projects and programs are undertaken after identifying the communities
that require development.

■ The Company also interacts with the stakeholders to ensure that its projects are being
implemented effectively.

■ The healthcare projects include upgradation of Nowrosjee Wadia Maternity Hospital and
continuous improved service delivery at Bai Jerbai Wadia Hospital for Children & Research
Centre and a Nutrition Program with Britannia Nutrition Foundation.
Bottomline:
■ The company is doing good in terms of the procurement of the goods/ materials needed for the
production and the main strength of the company is its distribution system.

■ The company is investing good amount of the revenue in the CSR activities as mentioned in the annual
report.

■ The company is launching new products in different categories and remains to be a market leader with
the major share in comparison with its contemporary players in the same industry.

■ This clearly states that the company is investing a decent amount of the income in the R&D for the
better products that cater the different consumer segments.

■ The power and the fuel expenses of the company has gone up from the 75.04 to 94.98 crores but the
company is certainly planning to bring down the expenses in the forthcoming year.