A REPORT ON
BRITANNIA INDUSTRIES
LIMITED
UNDER THE GUIDANCE OF
DR. ANUJ VERMA
PRESENTED BY
MANTHAN PATHAK 008/2021
CHEENA GUPTA 021/2021
SIDDHARTH BEHL 029/2021
DHRUBAJYOTI SAIKIA 050/2021
FMCG Industry Analysis
The fourth-largest industry in the Indian economy is fast moving consumer goods (FMCG). There
are three main segments in the sector food and beverages, which accounts for 19% of the sector;
healthcare, which accounts for 31% of the share; and household and personal care, which
accounts for the remaining 50% share. The urban segment contributes to about 55% of the
revenue share, while the rural segment accounts for 45%. Rise in rural consumption will drive the
FMCG market.
The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220 billion by
2025, from US$ 110 billion in 2020. The Indian processed food market is projected to expand to
US$ 470 billion by 2025, up from US$ 263 billion in 2019-20.
The Goods and Services Tax (GST), which was implemented in 2017, has benefited the FMCG
industry. Many FMCG products, including as soap, toothpaste, and hair oil, are now taxed at 18
percent instead of the prior rate of 23-24 percent. Food and hygiene product tariffs have also been
decreased to 0-5 percent and 12-18 percent, respectively.
Selling through communities:
The FMCG industry, like other industries, is evolving through recommendations and word-of-
mouth sales. According to research and industry surveys, about 57 percent of customers purchase
a product based on a recommendation from someone they know and trust. In the past year,
building a community through brand ambassadors and targeting sales through that channel has
helped private and well-known FMCG firms achieve sales.
Growing Demands:
• The FMCG market in India is expected to increase at a CAGR of 14.9% to reach 220 billion US$
by 2025 from US$110 billion in 2020.
• Indian packaged food market is expected to double to US$70 billion by year 2025.
Investments/Developments:
• The government has approved 100 percent FDI in food processing and single-brand retail, as
well as 51 percent FDI in multi-brand retail. This will boost FMCG brand employment, supply
chain visibility, and high visibility throughout organised retail markets, boosting consumer
spending and driving new product launches.
• The sector witnessed healthy FDI inflows of US$ 18.19 billion from April 2000 to March 2021.
From April 2000 to March 2021, the sector had healthy FDI inflows of US$ 18.19 billion.
• The Union Government’s production linked incentive (PLI) scheme gives companies a major
opportunity to boost exports.
Road Ahead:
Consumption in rural areas has risen, owing to a mix of rising income and higher aspiration levels.
In rural India, there is a growing desire for branded goods.
Companies attempting to access the hinterlands are expected to rely heavily on online portals. The
Internet has made a significant contribution, allowing for a more cost-effective and convenient
method of expanding a company's reach. The number of internet users in India is likely to reach 1
billion by 2025. It is estimated that 40% of all FMCG consumption in India will be made online by
2020. The online FMCG market is forecast to reach US$ 45 billion in 2020 from US$ 20 billion in
2017.
Britannia Industries Limited
Britannia is one of India's most popular and oldest brands. It all began in Kolkata in 1892 with a Rs
295 investment. In 1979, the company was renamed Britannia Industries Limited (BIL). It reached
Rs 100 crores in revenue four years later, in 1983. It was the first enterprise to use gas ovens
imported from other countries. In 1997, the company debuted its new corporate brand, 'Eat
Healthy, Think Better,' and entered the dairy products sector for the first time. It mostly sells
bakery items (biscuits, bread, cakes, and rusk) as well as dairy products (milk, butter, cheese, ghee
and curd).
Britannia dairy products are sold directly to 100,000 outlets, and the company's dairy segment
generates close to 5% of revenue. Britannia Dairy Pvt Ltd, a subsidiary, produces dairy products.
Kolkata, New Delhi, Patna, Khurdah (Odisha), and Uttarakhand all have manufacturing facilities.
Britannia goods are sold in about 5 million retail outlets across India, reaching more than half of all
Indian households. The company has 13 factories and four franchisees that sell about one million
loaves each day in over 100 Indian cities and towns.
Geographical break-up (Fiscal 2021):
Key/recent developments:
In August 2021, the company announced to undertake price hike of its products to offset a
sharp rise in cost, amid uncertainty arising out of the COVID-19 pandemic.
In fiscal 2021, the company launched its first ever potato-based biscuits under the brand, “5050
Potazos”.
Capital expenditure plans:
In Fiscal 2021, the company has infused Rs 130 crore in capacity building. The company was
expanding the Khurda plant in Odisha, and Tamil Nadu facility.
In June 2020, the announced to invest Rs 700 crore over the next two years to set up greenfield
facilities and scale up capacities of core products and another Rs 300 crore for new launches
including dairy.
Portfolio mix:
CATEGORY PRODUCTS/BRANDS
Britannia Cookies, Tiger, Good Day, Pure Magic, Bourbon, 50-50, Marie,
BISCUITS
Gold Treat, Milk Bikis, Nutri Choice, Time Pass, Little Hearts, Nice Time
CAKES Cakes
BREAD Diary Fresh Bread and Rusks
Butter, Cheese, Ghee, Milk, Gourmet Cheese, Diary Whitener, Masala
DIARY
Chaas, Flavoured Yogurt, Actimind, Tigerzor
Britannia's product line is diverse, with items ranging from healthful and cost-effective Tiger
Biscuits to more lifestyle-oriented Milkman Cheese. BIL launched Britannia New Zealand Foods Pvt
Ltd, a joint venture with Fonterra, the world's second largest dairy firm, in 2002. Britannia was
named 'One of the Top 200 Small Companies in the World' by Forbes Global, and the company was
named India's 2nd Most Trusted Brand by The Economic Times, in appreciation of its vision and
rapid growth.
BIL is also noted for its inventive product and marketing strategies; in 2001, it organized the
Lagaan match, which was named the country's most successful promotional activity of the year,
and Britannia 50–50 Maska Chaska was named India's most successful product launch.
