Company – BRITANNIA INDUSTRIES

LTD.
PRODUCT - CAKES

SUBMITTED By-
HARSH SRIVASTAVA
SEC- PGDM “6”
UID NO.- 2019-2706-0001-0006

1
Contents
A. SECTOR INFORMATION ....................................................................................................... 4
2 -: INDUSTRY SIZE / CONTRIBUTION TO GDP: ............................................................... 5
..................................................................................................................................................... 6
MARKET OVERVIEW .............................................................................................................. 7
ADVANTAGES FOR INDIA IN TERMS OF GROWTH OF FMCG ...................................... 8
4 -: GROWTH PATTERN: ............................................................................................................ 9
5 -: REASON FOR GROWTH:...................................................................................................... 9
PORTER’S FIVE FORCES ANALYSIS OF THE SECTOR .................................................. 11
B. COMPANY INFORMATION ................................................................................................. 12
COMPANY SNAPSHOT ......................................................................................................... 12
MARKET SHARE OF THE COMPANY ................................................................................ 13
PRODUCTS/SERVICES PROFILE & TARGET MARKET .................................................. 14
................................................................................................................................................... 14
COMPETITORS ANALYSIS: - ............................................................................................... 16
Target market of Britannia ............................................................................................................ 18
Recent News from the company ............................................................................................... 18
C.MARKETING STRATEGY OF BRITANNIA CAKE PRODUCTS ...................................... 19
SWOT ANALYSIS ................................................................................................................... 19
MARKETING MIX OF BRITANNIA CAKE PRODUCTS ................................................... 20
STP OF THE COMPANY ........................................................................................................ 22
TARGET MARKETS: ............................................................................................................... 24
POSITIONING ........................................................................................................................... 24
STP of cake Products of Britannia ............................................................................................ 25
BCG MATRIX: ......................................................................................................................... 26
 Cash Cows: ...................................................................................................................... 26
 Stars: ................................................................................................................................. 26
 Question Marks: .............................................................................................................. 26
 Dogs: ................................................................................................................................. 26

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 ................................................................................................................................................... 27
PLC OF CAKE PRODUCTS .................................................................................................... 28
SALES COMPARISON FOR PAST 3 YEARS ....................................................................... 28
MARKETING AND PROMOTIONAL STRATEGY OF THE COMPANY RECENTLY ... 28
D.BUSINESS FINANCE ............................................................................................................. 29
FINANCIAL STATEMENTS OF THE COMPANY .............................................................. 29
STATEMENT OF PROFIT AND LOSS ...................................................................................... 31
DIRECT AND INDIRECT COSTS OF THE COMPANY ...................................................... 32
FIXED ASSETS ADDED DURING THE YEAR ................................................................... 33
WORKING CAPITAL REQUIREMENT FOR THE YEAR .................................................. 33
RATIOS OF THE COMPANY................................................................................................. 33
D.HUMAN RESOURCE MANAGEMENT: ............................................................................... 38
ORGANISATIONAL STRUCTURE........................................................................................... 38
JD & JS OF BRITANNIA ........................................................................................................ 39
RECRUITMENT SOURCES OF COMPANY ........................................................................ 42
SELECTION PROCEDURE .................................................................................................... 43
TRAINING NEEDS OF THE COMPANY .............................................................................. 44
PERFORMANCE APPRAISAL MODEL OF BRITANNIA .................................................. 45
ORGANISATION CULTURE ................................................................................................. 46
REFRENCES ................................................................................................................................ 48

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A. SECTOR INFORMATION

Fast moving consumer goods or FMCG are the fourth largest sector in Indian economy. There
are three main segments in this sector shown in the pie chart below.

FMCG

A. Food products B. Healthcare (31%) C. Household &

(19%) Personal care (50%)

Oral care, skin care

- cake products. Over the counter - Soaps & Detergents

(OTC) products &
- Sugar ethical - Tooth powder

- Vegetable oils - Hair Shampoo

- Bakery products - Toothpaste

- Confectionery - Hair oil,

- Processed foods - Creams & lotions

- Branded flour, etc. - Agarbattis,

Fragrances & essential
oils, etc.

4
The above chart bifurcates FMCG sector into three segments which are: Food & beverages,
Healthcare & household & personal care contributing 50%, 31% & 19% respectively.

FMCG sector has shown a tremendous growth from Rs. 2,20,852.4 crores to Rs 3,68,669.75 and
is expected to show a CAGR of 27.86% and may reach to Rs. 7,24,759.3 crore Rs. by 2020.

About 55% of the revenue generated by this sector comes from urban sector and remaining 45%
of the revenue is generated from rural sector. India’s contribution in global consumption is
expected to increase to 5.8% by 2020 and thus FMCG sector still continues to show its
attractiveness.

2 -: INDUSTRY SIZE / CONTRIBUTION TO GDP:

The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840 billion in
2017, with modern trade expected to grow at 20 per cent - 25 per cent per annum.
which is likely to boost revenues of FMCG companies. Revenues of FMCG sector reached rs 3.4
lakh crore (US$ 52.75 billion) in FY18 and are estimated to reach US$ 103.7 billion in 2020.
The sector witnessed growth of 16.5 per cent in value terms between July-September 2018;
supported by moderate inflation, increase in private consumption and rural income.
The FMCG sector has grown from US$ 31.6 billion in 2011 to US$ 52.8 billion in 2017-18.
... FMCG's urban segment is expected to have a steady revenue growth at 8% in financial year
2019 and the rural segment is forecasted to contribute 15-16% of total income in Financial year
2019

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6
MARKET OVERVIEW

There is a growth pattern observed in FMCG sector where in 2014 the market revenue was 38.8
US billion dollars.
During 2016 it increased to 49 US billion dollars and in 2018 it reached up to 68.4 US billion
dollars.
In past five years this sector grew about 56.72%, from 2014 to 2018
This growth was supported by rising income levels, increasing nuclear families, urbanization,
modified lifestyle of consumers, growth in rural market, more awareness, more use of e-
commerce platforms for distribution of goods, governments push for FDI, more variety for
customers to choose from.
An uptrend of non-food expenditure has been observed in rural India, as income are rising. More
intense integration of internet in India has boosted online transaction. Online FMCG market is
expected to reach to US 45 billion dollars.
Information about cake sector in INDIA
Since 1998, India is largest producer as well as largest consumer of cake products. It currently
contributes around 20% (approx.) in global milk production.
Major portion of the cake sector in India is still unorganized and only 20 % contributed by
organized sector in value.
Due to urbanization, and increasing income levels processed cake products, other are
experiencing growth.
Overall contribution to cake sector by organized sector is likely to rise to 30% by 2023.

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ADVANTAGES FOR INDIA IN TERMS OF GROWTH OF FMCG

Boosting Demand
Opportunities
 Boosting
income &  Rising
more youth disposable
population income in rural
India
 By 2020,
India’s  Exports
contribution  11% forecasted
in global growth of the
contribution overall FMCG
will increase by 2030.
to 5.8%

Investment
Policy Support
opportunities
 Investment
 Goneka group
approval of up
to fund startups
to cent percent
by pumping
in single
14.74 MN
brand retail &
51% in multi
brand retail.

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4 -: GROWTH PATTERN:

The Indian FMCG sector growth between 2006 to 2018 has been phenomenal (approximately
16%). The industry has tripled in size over the last 10 yr, growing much faster than in past
decades.
Even during the slowdown of the Indian economy, the FMCG sector has registered a growth rate
of 14.5 percent for the year 2007-18, the volatility in agriculture sector has not had much impact
on FMCG sector. The comparison of past ten years’ performance of top 50 Global FMCG
companies versus the Indian top 50 FMCG companies.
In India has outperformed global growth across all major FMCG categories As per Price water
house coopers Private Limited, India is second biggest market for Soaps & cleansers in Asia
after China. The growth for Indian FMCG sector for Food, beverages and tobacco segment is
promising in near future.

Growth of FMCG in 5 years (US $ Billion)

80

70

60
68.4

50
52.8
49
40
43.1
38.8
30

20

10

0
2014 2015 2016 2017 2018

5 -: REASON FOR GROWTH:

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Contribution of E – Commerce is high.
Brand consciousness and the youth.
Innovations are done with proper R &D.
Increasing demand with increasing in Families / Population
The Union Budget 2019 – 20 initiatives to increase consumer spending among middle class are
expected to boost consumer confidence an improve demand generation for branded consumer
products.

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 PORTER’S FIVE FORCES ANALYSIS OF THE SECTOR

BARGAINING POWER OF THREAT OF

SUPPLIER SUBSTITUTE
 LOW - Bargaining  LOW – Threat of
power of supplier is substitute is very low
low as in the market as goods from this
there exists a lot of sector are required on
players. daily basis and no
relevant substitute is
available for this
sector

COMPETITORS
 HIGH – intense
competition as foreign
FDI and e-commerce
has entered into the
market.

BARGAINING POWER OF THREAT OF NEW

BUYER ENTERANTS

 HIGH – In India, there  HIGH – Threat of new

is a lot of options entrants is very high as
available to customers it is relatively easy to
to choose from, a wide enter any of the
varieties of brand as segment may be on a
well as product small scale
choices.

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B. COMPANY INFORMATION

COMPANY SNAPSHOT

1) BRITANNIA INDUSTRIES LTD.

BIL was incepted on 21st March, 1918 as a public limited company. However, it was established
in 1892 in Calcutta with a mere investment of 295 rupees, in 1897 the company was acquired by
Gupta Brothers. In 1918, C.H. Holmes partnered with then owners Gupta Brothers and Britannia
was incorporated. In 1983 its sales crossed 100 crore rupees. During 1993, Nusli Wadia of
Bombay Dyeing took over with the help of French giant company Danone. Recently in 2009,
Wadia bought Danone and became largest shareholder.

The company’s plant is situated in Kolkata, Delhi, Chennai, Mumbai & Uttarakhand. iBritannia
industries ltd is one of the leading food company and is about 100 years old. It is a manufacturer
of brand like Good Day, Tiger, Nutri Choice etc. Its product portfolio includes variety of items
like bread, biscuits, cakes, rusks, dairy products.

In World War II, government of India (British at that time) required specially manufactured
biscuits for their soldiers. Britannia came to rescue and continued supply for 7 years. In 1924,
company became a subsidiary of Peek, Frean & Co, a leading British biscuit maker. In 1978 as
its shareholding crossed 60 % it was established as Indian company.ii

PROMOTERS AND PUBLIC SHAREHOLDING CHART OF BRITANNIA

INDUSTRIES LTD.iii

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MARKET SHARE OF THE COMPANY

Through pie chart ….

overall market share

3% 1%
3%
16% 33%

11%

33%

britannia parle itc others priya gold horlicks kraft oreo

% contribution of total sales of britannia in india

6%

94%

fmcg britannia

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As clear from the above graph amul dominates the market with 22% market share because of its
extensive network running through rural and urban India.
Parle and Britannia togrther dominate the market in terms of cake.
Nestle slipped to this position during Maggie ban in India but is now recovering very fast. The
India packaged food market grew up by15%. International companies still have to understand the
dynamics of Indian consumers as still the list is dominated by Indian brands.
Many companies are expanding their product portfolios and are targeting towards rural India as it
shows a tremendous growth potential and products in smaller packaging are coming up more to
suit the rural demand. iv

PRODUCTS/SERVICES PROFILE & TARGET MARKETv

BRITANNIA

BISCUITS RUSK

CRÈME
BREADS CAKES

DAIRY CROISSANT

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 BISCUITS BREADS DAIRY

 GOOD DAY  WHOLE  CHEESE

 CRAKERS WHEAT  MILK
 NUCHOICE BREADS BASED
 MARIE GOLD  WHITE BEVERAGES
 TIGER SANDWICH  FRESH
 MILK BIKKIS BREADS DAILY
 JIM JAM +  BREAD  EVERYDAY
TREAT ASSORTMEN
 BOURBON T
 LITTLE  DAILY
HEARTS
 PURE MAGIC

CAKES RUSK CRÈME CROISSANT

WAFERS

  TOSTTEA  TREAT
GOBBLES  TREAT
 TIFFIN CROISSANT
CREAM
FUN WAFERS
 NUT&
RAISIN
 MUFFILLS
 LAYERZ
 ROLLYO

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COMPETITORS ANALYSIS: -

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17
Target market of Britannia
 Britannia uses a mix of demographic & psychographic variables to target its segment. It uses
the population variables which are like age, income level, education.
 Most of the products that this company offers mostly play on the demographics of the
consumer and the customer becomes the parents of the company.
 Mostly target market for the company is between 5 and above but for the products like
croissants, cakes target age moves up. However, there is no specific limit of age with almost
all the products
 Britannia also uses the differentiated targeting strategy for different consumer groups.

Recent News from the company

 Britannia industries net profit expected to increase at Rs. 385.1 crore up by 27.1% YOY and
up by 47% Quoi.
 Britannia was one among FMCG giants which on 23 September gained more than 6 percent
in intraday trading after government’s sudden and surprised move to reduce the corporate
tax. Other gainers were Colgate Palmolive, ITC, United Breweries & Hindustan Unilever.
 Britannia has planned to scale up its milk sourcing across India as its Ranjangaon plant goes
operational. Company has around 25-30 milk centers and collects about 25000 liters’ milk
daily. The additional quantity will be used to stem its dairy products like cheese.
 Britannia’s net margin cookie squeezed during Q1, April-June 2019 due to inflationary
pressures. Its net profit fell by 3.7% YoY to 248.6 crore rupees
 Recently in October 07,2019 Britannia’s share rose up by almost 4% (3.72% ) due to an
optimistic trend in the market nifty went up by 32.15 points.

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C.MARKETING STRATEGY OF BRITANNIA CAKE PRODUCTS

SWOT ANALYSIS

Strength  Quality Product offered by the

company
 Market share of 400 crore INR, No. 2
in cake segment
 Strong brand recall value of Britannia
 Deep pockets of the company
 Strong market penetration

Weakness  Only 5% contribution from cake

segment in overall revenue
 Showing struggling business
 Declining market share from 20% to
17% in cake segment.
 Input price hike contributing towards
low profitability

Opportunities  More market to cover, only cake

market is of around 2000 crore
 Dairy market growth at 10-12%
annually
 Showing huge potential of the segment
 Changing lifestyle and preferences of
consumers

Threats  Competition from local as well as

from other giants like amul, Hutson
etc.
 Increasing input prices thus low
profitability
 Brand switch due to reference group
influence or recommendations

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MARKETING MIX OF BRITANNIA CAKE PRODUCTS

PRODUCT
CAKE
Sugar
Flour or Maida
Milk
Cocoa powder
Baking powder
Vanilla essence
Butter

Price

ITEM PRICE (in Rs.)

Cake slice- Processed cheddar 145
Daily fresh- cake 200gm 20
Sugar 50
Cheese – cream 250
Flour or Maida 125
Milk 60
Butter 250g 150
Butter 500g 300
Vanilla essence 130
Daily fresh yogurt 30
Winkin cow Vanillicious thick 25
Dairy Whitener 400gm 175
Cocoa powder 400gm 70
Baking powder 120
Cheese processed 400gm tin 240
Cheese spread Mexican mirchi 180gm 120
Winkin cow badam 200ml 35
Cheese spread- asli pepper 180gm 100

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21
Place
Company reaches to 1.7 million retail stores and in total it’s serving via 4.8 million outlets.
Extensive network of distributors
300 SKU’s, 3500 wholesalers

Promotion
Promotion of cake products is very low by Britannia due to rising costs
However, it usually relies on pull strategy more than push strategy
Television, print media and online advertising are majorly marketing channels that company uses
to endorse and advertise its products.

STP OF THE COMPANY

Demographic Segmentation:

Age: Kids-Fruit Rolls, Tiger & Treat Matured People-Good Day, Cream Cracker

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Youth– Little Hearts, Cream Biscuits
Income: Lower Income Group- Tiger, Marie
Higher Income Group-Good day
NutriChoice
Gender: For both Male & Female

. Behavioral Segmentation:

Benefits-For Health Benefits; All Nutri Products, Tea Time Snack Biscuits.
User Status– Little Heart Biscuit & Time Pass for Lovers.
Usage Rate-Marie Gold is for High Usage Rate Customers.
Occasion- Snack Biscuit, Fruit Rolls for occasion purposes.

Psychographic Segmentation:
Britannia has adopted itself according to the convenience and lifestyle of the Indian consumers
so Britannia came up with a different and new product line
Niche Segmentation:

Britannia Slice Cakes and Britannia good day are designed for the people who actually also
wants some food characteristics in a biscuit. Different cream biscuits are also made for the
people who love to have a biscuit with cream.

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 TARGET MARKETS:

 Britannia Tiger-Low Price & Low Income Group

 Britannia 50-50-Tea Snack & Kids

 Britannia Marie Gold-Biscuit & Family Size.
 Britannia Good Day- Higher Income Group
 Treat Fruit Rollz-Children, during celebration & Occasion time.

POSITIONING

 TIGER: Positioning is done for modern mother

 LITTLE HEARTS: Positioning is to be a snacks
 GOOD DAY: Positioning is as everyday biscuits which bring happiness in everyone’s
lives
 MARIE GOLD: Positioning as a tea time biscuit with proteins

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STP of cake Products of Britannia

 Cake products of Britannia segmentation

Criteria Households Kids & children Youth
(Mom & Child)
Age 10+ 8 to 19 20 to 35
City Tier 1,2 Tier 1,2 Tier 1,2
Income Medium/high ------ Medium/high
Health conscious Moderate ------- Moderate
Weight 30% 40% 30%

 Targeting for the sector

Britannia went for the targeting all the aforementioned segments and covered all the markets. As
clear from the above chart/ table more weight has been given to kids& children with 40%
whereas households and youth has been awarded weight of 30% each. Since the market is very
big and carries a huge potential as it is expected to grow @ 20-25% every year, Britannia
thought to target all the afore –described segments.
Company went for mass coverage and in all the markets and via all the products (cake sector)
except milk, as like amul, backend direct sourcing was not available to the company.

 Positioning of the products

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The positioning of the products has been done as a nutritious and quality product made with
purity. Benefit segmentation has been used as a strategy- like eat healthy, think better. It
positions itself as a nutritious and healthy alternative.

BCG MATRIX:

Britannia Industries is a renowned company set up in India, which is manufacturing a wide range
of baked items. The company has initiated its operations as a small scale bakery, however with
the repeated expansion of the company, Britannia has included dairy items in its product
portfolio. Currently, Britannia is regarded as one of the leading suppliers of baked and dairy
items, achieving more than 35% of the market share in the Indian food industry (being a leader in
the baked goods and dairy based products).

 Cash Cows:
The first category that has been considered in the BCG Matrix is cash cows which includes all
those products that serve as the financial foundation for an organization. These products have a
high market share and are in high demand by the consumers which helps in securing a significant
amount of profit.

 Stars:
The second category is related to those products which are not cash cows in the present scenario
but can become a cash cow as they are bringing in significant sales and revenues. These products
have two main defining features.

 Question Marks:
The question marks on the other hand, depict products that are not performing up to the
managerial expectations. These products have more of an uncertain future, rather than a clear
course of development as evident in case of stars.

 Dogs:
The dogs include the products that have a poor performance in terms of sales and revenues.
These items are regarded as cash traps as the investment is not bringing in the desired results for
the organization.

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27
PLC OF CAKE PRODUCTS
Cake products of Britannia are in its growth stage as its clear from the above details that it was
only able to capture around 400 crore market whereas potential is somewhere 12000 crores.

 Britannia’
s cake
products

 Britannia’s Cake products like flavored chocolate, vanilla and tiffin fun are in growth phase
but on a lower side whereas in cake market Britannia claim the throne
 Company sells its cake at 25% premium than Amul, cake market is growing rapidly for
Britannia
 However, entrance of global cake majors like Lactalis, Danone, Kraft, Bongrain are also
fighting for the same consumer dollars hence posing a threat to company’s growth.
 During the year 2018-19, company launched cake in four flavours in packaging and has been
credited as one of the successful launches in the history of the company.

SALES COMPARISON FOR PAST 3 YEARS

 Sales during year ending 2017 was 8414 crore rupees, during year ending 2018 it was
9304 crore rupees and during year ending 2019 it was 10,482 crore rupees
 Company’s showing 10% CGAR in its sales Major contribution to the sales was from
core activities i.e. sale of goods.
 The growth has been possible because of innovations, expanded distribution network.
 Company increased its direct reach and distribution, and launches of new products like
salted snacks, croissants, cream wafers, flavored cake etc.

MARKETING AND PROMOTIONAL STRATEGY OF THE COMPANY RECENTLY

 Company, recently celebrated its 100 years and also introduced a new logo which goes
with a message of – Excitement and goodness
 Various media campaigns were run through TV, radio, social and digital campaigns,
sponsorships, this helped company to reintroduce its identity in market and hence growth.

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D.BUSINESS FINANCE
FINANCIAL STATEMENTS OF THE COMPANY

BALANCE SHEET
Note 31 March 31
March
As at 2019 2018

ASSETS
Non-current assets
1,283.85 1,008.31
Property, plant and equipment 4
64.91 200.28
Capital work-in-progress 4
36.13 14.99
Investment property 5
7.62 7.97
Intangible assets 6
1,050.97 450.65
Financial assets
15.55 86.74
Investments 7
1.00 -
Loans receivable 8
- 8.68
Other financial assets 9
29.52 14.07
Deferred tax assets, (net) 34
93.15 68.09
Income-tax assets, (net) 34
2,582.701,859.78
Other non-current assets 10
Total non-current assets
718.89 594.58
Current assets
594.70 735.48
Inventories 11
350.96 230.32
Financial assets
24.73 88.91
Investments 12
15.75 8.34
Trade receivables 13
1,121.41 820.41
Cash and cash equivalents 14
119.54 98.51
Bank balances other than (iii) above 14
124.29 190.97
Loans receivable 15
3,070.272,767.52

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Other financial assets 16 5,652.974,627.30
Other current assets 17
Total current assets Total assets
24.03 24.01
EQUITY AND LIABILITIES
4,015.42 3,211.27
Equity
4,039.453,235.28
Equity share capital 18
Other equity 19
Total equity
Liabilities
0.26 0.30
Non-current liabilities
27.03 24.97
Financial liabilities
3.87 -
Borrowings 20
- 0.72
Other financial liabilities 21
31.16 25.99
Deferred tax liabilities, (net) 34
Government grant 47
Total non-current liabilities - 9.01
Current liabilities 1.78 1.55
Financial liabilities 1,030.76 864.81
Borrowings 20 205.17 182.62
Trade payables 22 84.83 82.05
total outstanding dues of micro enterprises and small enterprises 0.71 0.71
total outstanding dues of creditors other than micro enterprises and small 188.52 171.05
enterprises
70.59 54.23
Other financial liabilities 23
1,582.361,366.03
Other current liabilities 24
1,613.521,392.02
Government grant 47
5,652.974,627.30
Provisions 25
Current tax liabilities, (net) 34

30
Total current liabilities Total liabilities
Total equity and liabilities

STATEMENT OF PROFIT AND LOSS

For the year ended Note 31 March 2019 31 March
2018

Revenue from operations

Sale of goods / Income from operations 26 10,389.49 9,282.04
Other operating revenues 26 92.96 98.13

10,482.45 9,380.17
Other income 27
190.52 155.93
Total Income (I+II)
10,672.97 9,536.10

Expenses:
Cost of materials consumed 28 4,944.77 4,405.17

Excise duty - 76.11

1,381.88 1,372.46
Purchases of stock-in-trade 29
(49.02) (4.18)
Changes in inventories of finished goods, work-in-progress and
321.64 294.87
stock- in-trade 30
1.54 1.45
Employee benefits expense 31 135.00 119.76

Finance costs 32 2,221.05 1,825.26

Depreciation and amortization expense 4, 5, 6 8,956.86 8,090.90

1,716.11 1,445.20
Other expenses 33
581.36 499.56
Total expenses
12.55 (2.25)

Profit before tax (III-IV) 593.91 497.31

Tax expense: 1,122.20 947.89

Current tax 34
Deferred tax 34 (3.21) (0.58)

1.12 0.20

(2.09) (0.38)

31
Profit for the year (V-VI)
1,120.11 947.51
Other comprehensive income
Items that will not be reclassified subsequently to statement of profit
46.71 39.48
or loss
46.68 39.46
Premeasurements of the net defined benefit (liability)/asset
240,246,514 240,092,954
Income-tax relating to items not to be reclassified subsequently to 240,427,551 240,214,276
statement of profit or loss
Other comprehensive income, net of tax

Total comprehensive income for the year (VII+VIII)

Earnings per share (face value of ` 1 each) 41
Basic [in `] Diluted [in `]
Weighted average number of equity shares used in computing
earnings per share:
Basic
Diluted

DIRECT AND INDIRECT COSTS OF THE COMPANY

Direct Costs of the company

i) Direct Costs = Cost of materials consumed + stock in Trade + changes in inventories
+ Employee benefit expense

During year ended, 31 March, 2018

Direct cost= 4405.17 + 1372.46 + (4.18) + 294.87 = 6068.32

During year ended, 31 March, 2019

Direct cost= 4944.77 + 1381.88 + (49.02) + 321.64 = 6599.27

Changes compared to previous year = (6599.27 - 6068.32) / 6068.32 = 8.75%

ii) Indirect costs = Excise duty + Finance cost + Depreciation and amortization expenses
+ Tax Expense + Other Expenses

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 During year ended, 31 March, 2018
Indirect Cost= 76.11 + 1.45 + 119.76 + 497.31 + 1825.26 = 2519.89

During year ended, 31 March, 2019

Indirect Costs= 1.54 + 135 + 593.91 + 2221.05 = 2951.5
(* No excise duty during the year 2019)

Changes compared to previous year = (2951.5 – 2519.89) / 2519.89 = 17.13%

FIXED ASSETS ADDED DURING THE YEAR

Fixed Assets during the year ended, 2018 = 1008.31

Fixed Assets during the year ended, 2019 = 1283.85
Change in Fixed assets = Amount in 2019 – Amount in 2018 = 1283.85 – 1008.31 =
275.54
Actual plant & machinery purchased were for 285.56 but 10.02 were disposals during the
year therefore the net change in fixed assets were 275.54 only.

WORKING CAPITAL REQUIREMENT FOR THE YEAR

Working Capital = Current Assets – Current Liabilities

Working Capital for 2018 = 2767.52 – 1366.03 = 1401.49

Working Capital for 2019 = 3070.27 – 1582.36 = 1487.91

Changes in W.C. requirement during the year = (1487.91-1401.49)/1401.49 = 6.17%

RATIOS OF THE COMPANY

1. Liquidity Ratios
a) Current Ratio = Current Assets/ Current Liabilities
= 3070.27/1582.36 = 1.94
The company’s ratio to pay off its current liabilities (in one year) is very high with its
current assets like cash, and cash equivalents, Receivables, along with inventories as its
ratio is 1.94.
The higher the ratio the better the liquidity position if the company.vi

b) Quick Ratio = Cash & cash equivalents + Marketable Securities + Accounts Receivable
Current Liabilities

Or, = Current Assets – Inventory – Prepaid Expenses

33
 Current Liabilities

= (3070.27- 718.89- 124.29) / 1582.36 = 1.41

Company is having a ratio of 1.41 as quick ratio which signifies that company has a
better liquidity position as it can readily liquidate its current assets to pay off its current
debts, as the ratio is 1.41. Higher than or equal to 1 is best for the company.

c) Absolute liquidity Ratio = Cash + Marketable Securities

Current Liabilities
= (27.73+594.70)/1582.36 = 0.39

The very short term liquidity of the company is not so good as the ratio is 0.39, an ideal
ratio must be equal to or more than 1.

2. Solvency Ratio
Solvency ratios analyzes the ability to pay long term debt.
a) Debt to Equity Ratio = Long term debts
Shareholder’s Fund

= 0.26/(3.96+0.43+745.31+24.03) = 0.00033
A low ratio signifies that the company is financially secure but the equity is diluted.
b) Debt Ratio= Long-term Debts
Capital Employed

= 0.26/ (0.26+24.03) = 0.01

A low ratio indicates the financially stable business which is good for creditors.

c) Proprietary Ratio = Shareholder’s Fund

Capital Employed
= 24.03/ (24.03+0.26) = 0.99
A higher Ratio indicates good financial health of the company, as it states that a larger
portion of the total capital comes from equity. One must remember that the sum of
Proprietary ratio and debt ratio must always equal to 1.

3. Turnover Ratio

Turnover ratio are the financial ratios in which an annual income statement amount is divided
by an average asset amount for the same year.vii

a) Asset Turnover Ratio= Total Sales

Beginning Assets + Ending Assets

34
 2

= 10389.49/ ((4627.30+5652.97)/2) = 2.02 times

It states that how efficiently your assets generate sales. The higher ratio indicates
that more efficiently asset base is used to generate sales.

b) Debtors Turnover Ratio = Sale of goods (net of excise duty)

Average Gross Trade Receivables

= 35.0 times
This ratio tells how fast we can collect from our debtors; higher ratio tells us that
the company is able to receive its credit on time.
c) Stock or Inventory Turnover Ratio = Sale of goods (net of excise duty)
Average Inventories

= 10672.97/ ((718.89+594.58)/2) =16.25 times

This ratio tells us about the number of times an inventory is sold and restocked
each year. A higher ratio indicates a danger of stock out however in this case it
not very high and a low ratio indicates obsolete inventory.

35
 4. Profitability Ratio

a) Net Profit Margin= PAT / Revenue *100

= 1122.2/10672.97*100 = 10.51%
This ratio shows how much a revenue unit is turned into profit here we can see
that about 10% of each unit of revenue collected is turned into profit a good indicator as it
indicates management is able to generate enough profit after covering operating costs and other
overheads costs.

b) EBDITA Margin = (PAT + Interest + Taxes + Dep & Amortization) *100

Revenue

= (1,122.20+1.54+593.91+135.00)/ 10,482.45*100 = 17.67%

This ratio indicates the earnings before depreciation, interest, taxes and amortization comparing
it with revenue of the company and as a percentage function. The relevance of this ratio is that it
tells earnings deducting expenses which are non-cash and other non-relevant expenses.

c) Return on equity = Profit after tax

Shareholder’s Fund
= 27.8 %
It indicates that one unit of rupee income generated about 27% on their equity, from the investors
point of view it is good to invest in this business.

5. ROCE (Return on Capital Employed) = EBIT / Capital Employed

= 31%
It states that Britannia is efficient at employing its capital and hence is able to generate
shareholder value and always be higher than the company’s capital cost.

6. ROIC (Return on Capital Invested) = Net operating profit after tax / Total Invested capital
= 1120.11/ (24.03+0.26) = 46.11%

36
This ratio tells about the company’s ability to generate profit from its capital employed, here we
can see that the ratio is pretty good and company is able to generate profit very efficiently and
the ratio has grown from 43.7 % previous year to 46.11% this year.

Current Ratio 1.94

Quick Ratio 1.41

Absolute liquidity Ratio 0.39

Debt to Equity Ratio 0.00033

Debt Ratio 0.01

Proprietary Ratio 0.99

Asset Turnover Ratio 2.02 times

Debtors Turnover Ratio 35.0 times

Stock or Inventory Turnover Ratio 16.25 times

Net Profit Margin 10.51%

EBDITA Margin 17.67%

Return on equity 27.8 %

ROCE (Return on Capital Employed) 31%

ROIC (Return on Capital Invested) 46.11%

Changes Working Capital 6.17%

Change in Fixed assets 275.54

Changes in Indirect costs 17.13%

Changes in Direct costs 8.75%

37
 D.HUMAN RESOURCE MANAGEMENT:

ORGANISATIONAL
General Manager Corporate
Chief Financial Officer
Finance
Mr. N Venkataraman
STRUCTURE Mr. Ramamurthy Jayaram

V.P. Supply Chain

Mr. Vinay Singh Kushwaha

V.P. Consumer Insight, Media Business Head

& Competitive Intelligence Cakes, rusks & salty snacks
Mr. Manjunath Desai Mr. Vipin Kataria

V.P Bread, Cake, Rusk, & General Manager Brit Chip

Adjecent Business Foods
Mr. Jayant Kapre Ms. Nidhi Saraf

Head Bread Business

Mr.Yudhishter Shringi

V.P. R&D and Quality Head Quality Assurance

Mr. Sudhir Nema Mr. Arvinder Singh
Managing
Director
Mr. Varun Berry V.P. Sales & Head of Dairy
Head Dairy Business
Busienss
Mr. Abhishek Sinha
Mr. Gunjan Shah

National sale development

manager
Mr. Badri Beriwal
V.P. Marketing
Mr. Ali Harris Shere
National Sales Manager
General Trade
Mr. V Sridhar

Head Contract
V.P. HR
Manufacturing
Mr. Ritesh Rana
Mr. Yogesh Vadiya

V.P. International Business

Mr. Annu Gupta

v.P. Procurement
Mr. Manoj Balgi

38
JD & JS OF BRITANNIA
MARKETING
 Position Name: Brand Manager Work Location: DUBAI
 Years of Experience :5-7 Years
 Educational Qualification: Post-Graduate
 Job Description:
 Position Title: Brand Manager

 Function: Marketing

 Position Overview:

 Deliver Business Objectives (Market Share Gains, Top Line and Gross Margins) Through
Insight Based Consumer Marketing.

 Key Stakeholders:

 Internal: Marketing Team, Sales Teams, QA Team, Finance Dept. Operations /

Production Dept. R&D: Product & Pkg. Development

 External: Creative Agency, Media AOR, Market Research Agencies, Production

Agencies / Vendors

 Educational Qualification: MBA or Equivalent from A Premier Business School

 Experience: 5-7 Years of Experience

 Desired Competencies:

 Strong Analytical Abilities to Apply Thought

39
  Must Have a Good Understanding of Marketing Operations Processes
 Sensitivity to Market / Category / Consumer Trends
 Marketing and Business Planning
 Strong Written & Verbal Communication
 Commercial Orientation
 Project Management
 Managed New Product Development and New Pack

Key Responsibilities –

 Design, Manage and Coordinate All Marketing / Promotional Activities Through

Monthly Activity Calendars to Deliver Market Share & Overall Business Objectives (Top
Line & Brand P&L)
 Integrate ATL & BTL Plans for Harmonious Execution
 Review Marketing Activities & Report Brand / Business Impact with Learnings & Way
Forward
 Manage New Product Development from Conception to Launch
 Evaluate, Plan & Implement Existing Product Development: Horizontal / Vertical Line
(Variant / Product) Extension, SKU Proliferation
 Analyze Monthly Sales Data to Determine SKU/Geography Wise Requirements On
Respective Products / Brands
 Analyze Retail Audit Data to Determine SKU/Channel/Geography Wise Gaps and
Opportunities for The Brand
 Competition Mapping & Tracking Reporting
 Product & Proposition Benchmarking with Competition"
 Consumer, Category & Market Insight Generation
 Conduct Market Research Depending On Market / Business Requirements
 Market / Category & Consumer Data Analysis (Market Shares / Mind Share)
 Consumer STP (Segmentation, Targeting & Positioning)
 Communication Development (TVCs / Other Creative Output) To Deliver The Brand
And Business Goals
 Develop Media Plans Spanning Across Diff. Mediums: TV, Print, Radio, Out Of Home,
Digital, Social Media,
 Market Wise Pricing-Sizing, Benchmarking Britannia Products Vs Respective
Competition Products
 Interact, Negotiate, Manage Relationship with Creative, Media, PR, Market Research
Agencies & Vendors
 Design of POS & Merchandising Elements

40
  Value Engineering / Cost Reduction Measures Across Product, Packaging, Activation
Improving GC & NC
 Annual Budget Planning, Tracking & Deployment
 On-Ground Activation Planning & Implementation
 Product / Brand Launch / Re-Launch / Renovation
 Understand Price Structures / Value Chain & Demonstrate Commercial Acumen
Managing the Brand P&L
 Tracking Brand Health Indicators Regularly
 Preferred - Exposure to Customer/Trade Marketing In Middle East

FINANCE

Company Name: Britannia Industries Pvt. Ltd.

Position: Financial Accountant

Division: Finance Department

Location: Pune

JD

 Prepares monthly statement by collecting data

 Analyze initial data and rectify the errors
 Collects, summarize & interpret data
 Prepares quarterly financial statements
 Tax filing, adhering to deadline and norms
 Forecasting budgets, preparing budgets and cost minimization
 Updates knowledge by participating educational opportunities
 Accomplishes organizational tasks within deadline

JS
 Education: Must be Post Graduate, MBA or equivalent, preferably finance domain
 Experience: only candidates with minimum experience with at least 2-3 years in business
accounting
 Skills required: MS Excel, Analytical skills, Business Knowledge (FMCG sector),
Number crunching skills, knowledge of accounting principles.

41
  CTC: 6.5-9 Lacks
 Mr. XXX
 Head HR

HUMAN RESOURCE

 Company Name: Britannia Industries Pvt. Ltd.

 Position: Recruiter
 Division: HR Department
 Location: Pune
 JD
 Responsible for recruiting services
 Sourcing, Screening, validating candidates’ profiles
 Conducting interviews – Telephonic
 Assisting regional HR in Final interviews
 Follow up with candidates till they join
 Responsible for on-boarding of the selected candidates
 Must adhere to deadlines
 Maintaining database

JS
 Candidate must be an MBA or equivalent in HR domain
 Must be proficient in MS office
 Confident & Smart
 Should be energetic and interactive

 CTC: 4.5-6 Lacks

 Mr. XXX
 Head HR

RECRUITMENT SOURCES OF COMPANY

 Campus Recruitment
 Visiting Prestigious colleges and institution for recruitment/hiring.
 Online Job Portals
 Using online job portals like, Naukri.com, monster.com for finding potential candidates
 Head-hunting
 Hiring top-notch talent from professional platforms for top level management posts from
across the country/globe

42
  Promotion/Deputation
 Promotion of employees to upper posts to fill the gap and then to find the new candidate
to fill the henceforth created gap

SELECTION PROCEDURE

For campus hiring

Types of Institute
 Shortlisting of profiles (basis of Britannia Visit:
 Academic & Extra-curriculum performance)
 Selection Test o Business Schools
 Group Discussions / Case study o Engineering
 Personal Interview Colleges
 HR Interview o Food Technology
 Physical examination Institutes
 Reference & Background check o ICAI
 Job Offer
 Contract of employment

In preliminary unsolicited applications are weed out and remaining applications are further
processed whereas id still the number of candidates is high then a selection test is conducted
sometimes is an aptitude test after which remaining candidates who pass the test appear for
group discussion, those who are selected move to interview round where two types of interview
are conducted Personal and HR interview. This is almost the final stage but company needs to be
sure of the candidate and hence a physical examination and background check is conducted after
which job offer letter id given to candidate and contract of employment is signed.

43
TRAINING NEEDS OF THE COMPANY
Training and development in Britannia happens in many ways some activities include:
Britannia for Britannia’s initiative where through Job Enlargement employees are developed
internally to grow in their career and expand their horizons at Britannia, employees are
encouraged to try out new things and it also have an informal organization structure where
approaching top leadership teams and continuous employee orientation happen due to culture of
the company.viii

Cognitive methods involve more of theoretical approaches towards training employees how to do
something, written, or verbal. These methods are more towards stimulating knowledge and
attitudes of employees. Some of the methods include: Lectures, Demonstrations, Discussions,
Computer based Training (Virtual Reality, Programmed Instruction)

Behavioral methods involve more of practical training to new joiners, best used for developing
skills in employees by putting them in real situation. Some methods include Behavior Modelling,
Business games, Case Studies, In-Basket technique.

Management developing method is a method that is more oriented towards educating employees,
it’s making employees developed through education and has further been divided into two parts:
i) On-the job training ii) Off-the job training
On the Job training involves more experienced employees like managers, supervisors to guide
and train now employees while performing the work and giving them a real time work
experience. This type of training takes place in an informal manner. Some methods involve steps
like coaching, mentoring where one to one interaction happens frequently and the employee is
guided how to achieve the desired results.

Off- the job training is a way of training most suited for new joiners in management where their
people skills are modified and molded according to the organization needs, some methods that
company uses are sensitivity training, Transactional training, straight training.

Britannia has a 60-day training provide by Maniple Pro-learn in their campus in Hyderabad,
training is provided by the industry experts with inputs from Britannia faculty. Classroom hands-
on- session including concept training with case studies, real life examples and cases.

44
PERFORMANCE APPRAISAL MODEL OF BRITANNIA

SETTING PERFORMANCE
STANDARDS

COMMUNICATING ESTABLISHED
PERFORMANCE STANDARD WITH
EMPLOYEES

MEASURING ACTUAL
PERFORMANCE USING SUITABLE
METHODS MODERN METHODS &
TRADITIONAL METHODS

COMPARISION OF DESIRED AND

ACTUAL PERFORMANCE

IDENTIFYING GAPS IN THE

PERFORMANCE OF
EMPLOYEES

REWARDING THE BEST EMPLOYEE

AND TAKING CORRECTIVE
MEASURES FOR AVERAGE AND
POOR PERFORMERS

45
ORGANISATION CULTURE

a) Employees of the company has defined working in the company as follows:ix

b) Company is good to learn and progress, Work culture will teach about the real food
company
c) Work life balance is hard to achieve, long hanging in hours as intern
d) Great culture and team is motivating
e) Targets are high and pressure is high to achieve.
f) High chances of team building, as in intern management might be poor towards you
g) Casual dressing allowed, 2day work from home in a month
h) Learning from grass-root level happens, exposure and experience is very nice
i) Lot of challenges initially but a lot of learning happens

CONCLUSION:

The conclusion of this study is that Britannia is well established brand with strong products
portfolio, market share of biscuits product in market is about 33%, the diverse range provided by
the company and having and having products for every class of people make the company a
special place for itself in market. Britannia is a company which over product with low cost range
to premium products hence it has a wide range of customer across the country. Now it is entering
into new product line chocolate with a special target group though market is full of competitor
like Cadbury, nestle etc. with the help of swot analysis I came to know the internal and external
weakness and opportunities of the company.by doing BCG matrix I came to know the strategic
position of the business brand portfolio. I also notice the growth and degrowth of the company
because of the strong competitors available in biscuits and cake products, besides competition
Britannia faced critical challenges due to decline margin in the cake and biscuits industry due to
increase cost of raw material. The Britannia biscuits-to-bread industry is itself a big challenge for
Britannia.
In this scenario Britannia should adopt push strategy of marketing and on the same time provide
the retailers and distributors with more percentage of margin as compare with the competitor
margin so the other retailers also try to sell the products and increase the revenue of the
company.

46
47
REFRENCES
i
https://www.business-standard.com/company/britannia-inds-93/information/company-history
ii
https://www.businesstoday.in/magazine/cover-story/britannia-among-100-year-old-companies/story/16495.html
iii
https://www.valueresearchonline.com/stocks/shareholding_pattern.asp?code=611
iv
https://www.business-standard.com/article/management/amul-takes-the-top-spot-as-local-brands-score-big-
116041400847_1.html
v
http://britannia.co.in/about-us/overview
vi
https://www.investopedia.com/terms/l/liquidityratios.asp
vii
https://www.accountingcoach.com/blog/what-are-turnover-ratios
viii
https://www.peoplematters.in/article/strategic-hr/redefining-the-box-britannias-transformative-people-practices-
15655
ix
https://www.glassdoor.co.in/Reviews/Britannia-Industries-Limited-Reviews-E222976.htm

48