Britannia industries (2).pptx

7/29/2019 Britannia industries (2).pptx

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BRITANNIA


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Contents of the project

Introduction

Company details

Evolution Product

Competitors

Market share

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Introduction to Britannia

Britannia Industries Limited is an Indian food-

products corporation based in Kolkata, India. It is

famous for its Britannia and Tiger brands of biscuit,

which are popular throughout the country. Britanniahas an estimated 38% market share.

The Company's principal activity is the manufacture

and sale of biscuits, bread, rusk, cakes and dairy

products

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Industry-Food processing

Founded-1892

Headquarters-Kolkata, West Bengal, India Number of locations-300 stores (2000)

Area served- India

Key people- Nusli Wadia, (Chairman)

Vinita Bali, (MD) Products Bakery products, including biscuits, bread,

cakes and rusk, and dairy products, including milk,butter, cheese, ghee and curd.

Revenue- 4,670 crore (US$931.67 million) (2011)

Profit- 134 crore (US$26.73 million) (2011)

Parent Group- Danone Wadia Group

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Evolution of Britannia

The company was established in 1892, with an investment of Rs.295.Initially, biscuits were manufactured in a small house in centralKolkata.

Later, the enterprise was acquired by the Gupta brothers mainly

Nalin Chandra Gupta, a renowned attorney, and operated under thename of "V.S. Brothers." In 1918, C.H. Holmes, an Englishbusinessman in Kolkata, was taken on as a partner and The BritanniaBiscuit Company Limited (BBCo) was launched.

The Mumbai factory was set up in 1924 and Peek Freans UK,acquired a controlling interest in BBCo. Biscuits were in big demand

during World War II, which gave a boost to the companys sales. The company name finally was changed to the current "Britannia

Industries Limited" in 1979. In 1982 the American company NabiscoBrands, Inc. became a major foreign shareholder.

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Vision & 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 marketin India through a profitable range of 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 /her life.

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Short-term Objective :

To improve image to shareholders.

To improve internal processes and controls.

Long-term Objective :

To be the lowest-cost producer in the market.

To become largest volume player in the bakery industry.

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Management team

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Strength and weakness of Britannia

Strength Widely Accepted in all

Generations

Provide good instant Remedy

for hunger in the form of

readymade food

Weakness Decreases nutritional value

Increase the cost of food product

Regular usage of processed food

can cause alteration in health


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Products

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Products

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Biscuit market

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Competitors

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MAJOR PLAYERS MINOR PLAYERS

EMERGING PLAYERS FOREIGN NISCHE PLAYERS


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Market share

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Britannia overseas

Britannia in the Middle-East

In March 2007, Britannia Industries Limited formed a Joint Venture with the KhimjiRamdas Group, one of the largest and the most respected business conglomeratesin the Middle East. Britannia and its Associates have acquired a significant stake inDubai based Strategic Food International Co. LLC and Oman based Al Sallan FoodIndustries Co SAOG. The two companies are key regional players in the biscuits,

wafers and cookies segment in the GCC markets and export their products acrossthe world.

Strategic Food International Co. LLC (SFIC) is one of the largest biscuit and wafermanufacturing companies in the Middle East.. It offers a wide spectrum ofproducts under the brand Nutro, which is a leading biscuit brand in the MiddleEast.

Al Sallan Food Industries Co is one of the foremost companies for the productionof cookies, rolls and chocolates. The products are well known under the brandname of Baker's Pride.

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19EatHealthy,ThinkBetterGoodforhealth,goodfortaste"EatBritannia,GoforWorldCup1999&2003=37%increaseinsale'BritanniaLagaanMatchWinnergotchancetoplaycricketmatchwithfilms

EAT HEALTHY AND THINK BETTER

GOOD FOR HEALTH, GOOD IN TASTE

EAT BRITANNIA AND GO FOR WORLDCUP= 37% INCREASE IN SALE

BRITANNIA LAGAAN MATCH- WINNER WOULD GET A CHANCE TO PLAY CRICKET

WITH FILM STARS

Milk Bikes Children b/w 7-14 yrs of age

Little Hearts For Teenagers Class friends

Marrie Gold Undisputed Universal brand

Good Day to infuse happiness into peoples lifeBourbon adolescent/adult indulgence category.

Strategies


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Challenges

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Britannia enters ready-to-eat segment

In a bid to tap the ready-to-eat (RTE) market, FMCG major Britannia Industries hasentered the segment with the launch of a complete range of breakfast mixes ofupmas, pohas, porridges and oats. "We have launched a breakfast solutioncombined with convenience, health and taste. The products have great healthvalue as they contain no transfats, no cholesterol, no MSG and no preservatives,"Britannia Industries managing director Vinita Bali said.

The entry into RTE segment would give a boost to Britannia's overall revenues asthe country's largest biscuit- maker is facing challenges from the escalating inputcosts. The company, however, would have to face tough competition fromdominating players like MTR, Gits, ITC, Bambino and Kohinoor Foods. Thoughthese companies already have had created a niche for themselves, several localplayers such as Tasty Treat and Chings have managed to grab a substantial marketshare.

Britannia has launched some snacks such as veg poha, chinese poha, wheat poha,manchurain upma, savory oats and strawberry oats. The products have beenpriced at a range from Rs 33 per 170 grams to Rs 105 per 400 grams, the releasesaid.

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Inflationary hit

One of the biggest challenges facing biscuit maker BritanniaIndustries has been escalating input costs, with food inflation rateshitting 16-17 per cent.

The company, says Managing Director, Ms Vinita Bali, is currentlytrying to work around that problem through several cost-cutting

measures. Ms Bali has set an internal target of pruning costs everyyear. The company is working its way around cost and revenuemanagement, product and packaging innovation, and bringing inmore efficiency in its marketing and distribution activities to beatthe impact of food inflation.

Every year we have a target to reduce cost and remove

inefficiencies right through the value chain; whether it ismanufacturing, logistics, selling and distribution. In the last fouryears, we eliminated close to Rs 180 crore, Ms Bali disclosed.

With input costs rising, going up by almost 16 per cent in the last 12months, the company did make one large adjustment last yearthrough a price increase and grammage adjustment of its products.

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Parle has overtaken Britannia in the biscuits marketwhich is Rs 11,000 plus in terms of revenue. Parle hasclose to 45% share of the biscuits market whileBritannia has 38% share. For years, these two

companies were tied in market share with 35 % shareeach.

The advantages which parle has had is its betterdistribution in the rural market along with competitivepricing. Definitely 2 measures which give it competitive

advantage. On the other hand, Britannia increased itspricing which subsequently reduced its volume therebyaffecting its market share.

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Comparative Analysis of Parle G and Britannia Tiger

Nearest competitors in Glucose Category.

Tiger gained 28% market share in 100 gram Glucose biscuit segment in ashort span of 7 years (1997 - 2004).

VERSUS

Parle G established since 60 years 57% market share in this segment.

In 2006 07 Parle G raised price for its 100 gram pack by 50 paise (i.e. Rs4.50), while Tiger maintained its price at Rs. 4.00

RESULT

Sales of Parle G dipped to Tiger. Customers of Parle G tended to switchover to Tiger.

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Documents

Britannia industries (2).pptx