CASE STUDY ON BRITANNIA INDUSTRIES LIMITED
[Link]:- Britannia Industries LIMITED
[Link] name:- Group of British Businessman
[Link] of Inc:- 1918
[Link] fund raise: – Rs 295
[Link] fund raise:- $72.6 million from one funding round (April 2019)
[Link]:- Rs 135096 crore
[Link] :–
Nationally:-Bihar, Khurda, Ranjangaon, Tirunelveli, Barabanki
International: – UAE, KSA, Americas, Asia Pacific, South Africa
[Link] CEO:-Varun Berry
[Link] last 3 years:-Rs 47206.08cr
[Link] last 3 years:-Rs 5986.4cr
[Link]:-
Biscuits segment:- Parle, Itc ltd, Nestle, Anmol Industries, Surya food and Agro limited,
Patanjali, Mondelez International, Haldiram, Sunfeast, Bikaji
Diary Segment :– Amul, Mother Diary, Nestle India,
[Link] investor:- A GROUP OF BRITISH BUSINESSMAN
[Link] point:-
Impact of high commodity prices due to the Russia Ukraine war
A case settled with SEBI involving negligence in share transfers and demand draft issuance.
[Link]:-
1. Commodity Inflation,
2. Geopolitical and global risks,
3. international market challenges
[Link] they tackled challenges-
A) Commodity Inflation:-
They ran cost efficiency programs to improve manufacturing efficiencies and reduce costs
helped mitigate inflation impacts.
Launched premium and health focused products
Supply chain optimization
B) Geopolitical and Global Risks:-
The company implemented measured price increases aligned with market conditions to
protect margins without significant demand loss.
Formed joint ventures such as with Bel SA for cheese to enter growth Categories and
markets and to tackle international market challenges.
C)International Market Challenges:-
They diversified their portfolio
Local manufacturing presence:- They expanded local manufacturing operations in key
markets like Kenya reducing mitigating tariff and localisation risks
[Link] growth factor:-
Strategic Pricing,
Customer Centric Approach,
Growth in Croissant Business,
Emerging Channels,
Focus on Indian Pallet,
Adapting sustainable practices,
[Link]/existing challenges:-
i). International Challenges:-
Geopolitical Conflicts,
Localisation of workforce,
Changes in tariff barriers,
Exchange rate fluctuations,
commodity price fluctuations.
ii). Domestic Challenges:-
Arranging Necessary Funds,
Improving Inventory,
High Commodity Inflation
18:-Equity distribution:-
Promoter’s holdings:-50.55%, FIIs(Foreign Institutional Investors) holdings:-15.72%,
DIIs(Domestic Institutional Investors):-18.26%, Retail Investors:-15.47%
[Link] worth of founder:- Net worth of current founder is$ 5.1 billion
[Link] market share of the company :– RS 132079cr
[Link] product: – Biscuits(Good Day, Marie Gold, Bourbon)
[Link] factories/outlet:-
20 factories in India and 7 international factories
over 5 million retail outlets.
23. fraction of online and offline sales:-
E commerce and modern trade accounts more than 10% of the total revenue and Offline
sales more than 80 percent of the total revenue
[Link] model( supply chain, distribution, franchise, etc):-
Geographic and Category Expansion :- Aims to reach to become global Total foods company
New facilities :- Commissioning of manufacturing plants in Khurda, Bihar, Ranjangaon,
continuing push for the proximity to markets to boost freshness and efficiency
Distribution Expansion:- number of rural preferred dealers increased 7x over the decade and
direct outlet coverage expanded 4x
Infrastructure enhancement:- Enhanced distribution and logistics capabilities to improve
product availability.
Innovation and R&D :- Introduced new and innovative products like potazos, Nutrichoice
Strategic Partnerships :- Formed joint ventures with global leaders Bel SA, Chipitia
Manufacturing Capacity Expansion:- Rajagaon food park continue to serve with a flagship
facility with Rs 1500 crore investment
Sustainable practices :-
a) Plastic Neutrality:- Achieved 100% plastic neutrality
b) Renewable energy usage increased by 4% therefore consumption is 35%
c) GHG Emission Reduced by 0.52%
d) Reduced water consumption intensity to 0.83 litre/kg -down by 34%
e) Britannia Nutrition Foundation and The malnutrition Reduction Programme impacted over
2 lakh lives
f) Dairy farmers are now supported with tech enabled sustainable dairy practices.
g) Local Procurement:-98% of procurement budget was spent within India to reduce
environmental footprint.
[Link] Packaging:-
Eliminates plastic trays and made 72% of laminates recyclable
Healthy products:- Reduced sugar by 1.8% and sodium by 7.8%
[Link] Acquisition Cost(CAC), Return on Investment or Return on Equity(ROE)or(ROI):- Return
on Investment is 62.07%,CAC is 0.24%
