Did this project as a equity research analyst intern in Finlatics.

1. RESEARCH INSIGHT 3

2. CONTENTS
 OVERVIEW
 SHAREHOLDING PATTERN
 MANAGEMENT
 SWOTANALYSIS
 COMPETITOR’S ANALYSIS
 CONCLUSION

3. Britannia Industries Limited is an Indian based food-products corporation. It has a 100 year
legacy and annual revenues in excess of Rs. 9000 Cr. Britannia is falls under the most trusted
food brands. Founded in 1892 and headquartered in Kolkata, it is one of India's oldest existing
companies. The company sells its various brands like Britannia Good Day, Tiger, NutriChoice,
Milk Bikis and Marie Gold and also breads and dairy products are household names in our
country. It carries out its operations throughout India and in more than 60 countries across the
world. The company's primary activity involves production and sale of biscuits, bread, rusk,
cakes and dairy products.

4. We see that most of the shares are owned by the promoters (50.62%), including foreign
promoters. Institutional investors like financial institutions, foreign institutions and mutual fund
companies together hold 27.32% of the total shareholding. General public or the non-
institutional investors hold minute proportion of the company’s shares which is 14.97%. The
rest 7.09% falls under ‘other investors’ category.
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Promoters Institutional
investors
General
public
Others
SHAREHOLDING PATTERN
SHAREHOLDING PATTERN

5. MANAGEMENT
Chairman Managing Director
Nusli. N. Wadia Varun Berry

6. According to the provisions of Section 152 of the Companies Act, 2013 and the Articles of
Association of the Company, Mr. Ness N Wadia, Non-Executive Director has retired by rotation.
The Board of Directors at their Meeting held on 1 July 2019, has proposed the re-appointment
of Mr. Ness N Wadia, after the recommendation of the Nomination and Remuneration
Committee. They (Board of Directors) at their meeting held on 7 February 2019 assigned Mrs.
Tanya Arvind Dubash as an additional Independent Director of the Company w.e.f. 7 February
2019. Also there has been re-appointment of Mr. Avijit Deb, Mr. Keki Dadiseth and Dr. Ajai Puri
as Independent Directors for another term of 5 years w.e.f. 12 August 2019. At the same time,
Mrs. Ranjana Kumar and Mr. Nimesh Kampani have shown their will to retire.

7. STRENGTH
 It has varied range of products like biscuits, bread, cakes and dairy products like milk,
cheese etc. This diversity gives them a relatively higher visibility in the market. It owns
30% market share in biscuit segment in India.
 The only company in this segment to cater to the needs of all income groups. Thus they
have a broad customer base. Rigorous marketing and advertising activities helps them
to earn a strong brand name.
 It has 100 years of legacy and thus it has a leading position in the market with over 6000
crores revenue.
 Strong distribution systemenables them to reach out to every nook and corner of the
country, serving over half of Indian population through its 3 million retail outlets.
STRENGTH WEAKNESSOPPORTUNITY THREAT

8. WEAKNESS
 Though the company has a leading position in the biscuit segment, earning 75%
of total revenue from this, but it is over-dependent on this segment which is
risky, from a long term perspective.
 Its global presence is weak despite having such a strong presence in India. In
countries like Dubai, Oman its subsidiaries are there. Overall exports are less
than actual potential.
 Commodities like Bourbon are now available in markets manufactured by
different companies, so products got commoditized over time.
OPPORTUNITY
 More focus should be given on the dairy industry, which currently contributes
about 5% of total revenue of the company. It should work on improving this
product segment. Also increase in people’s disposable income and changing
lifestyle expands the scope of this segment.
 Increasing awareness about health among people, gives a scope of exploring this
domain for the company, a great growth opportunity.
 Setting up manufacturing units, subsidiaries etc in more foreign countries to
emerge as global presence in food products.
 More scope for innovation and scaling up in the whole food industry due to new
trends in taste and preferences.
THREAT
 Emergence of local players on a continual basis like Anmol, Parle etc. is a threat to the
company in terms of product differentiation. Also there are a lot of counterfeit products
available these days which are destroying the brand image of the company’s products.
 Low capital requirement makes entry easier for new firms and thus there is a stiff
competition in this industry.
 Because of the hyper competitive nature of this industry switching costs becomes
cheaper for consumers. Also increasing price of raw materials makes the situation even
worse, by raising the overall cost and thus leaving behind low profit margin for the
company.

9. COMPETITOR’S ANALYSIS
 ITC ltd. is a multinational company with its
headquarters set up at Kolkata, West Bengal
 It was established back in 1910. Ajit Narain
Haskar was appointed as the first Indian
chairman of this company in 1969.
 Running operations for over more than 100
years now, it operates in about more than 60
locations across the country.
 It started as a private company but
incorporated itself in 1954 with 6%
shareholding initially.
 Its primary business was in tobacco, and now it
has diversified itself into other areas majorly
food, dairy, personal care, stationary etc.
 Its food division is one of the fastest growing in
our country represented in multiple categories-
Staples, spices, biscuits, chocolates, ready to
eat meals and many more.
 UNITED SPIRITS ltd is an Indian company
dealing in alcoholic beverages.
 It’s foundation dates back in 1826 by Angus
Mcdowell. It was also named as Mcdowell
and Company back then.
 It has its headquarters in Bangalore,
Karnataka.
 In a 2006, Herbertsons ltd, Triumph Distillers
and Vintners Private ltd. and six other
companies along with Mcdowell and Co.
merged together to form United Spirits ltd.
 It owns several manufacturing facilities in
over 20 states and 3 union territories across
the country and has one unit operating in
Nepal.
 Its product range consists of whiskey, vodka,
rum catering to customers through luxury
premium, prestige and popular spirits
category.

10. COMPARISON TABLE
COMPANY MARKET CAP (in
cr)
PBT (in cr) CURRENT RATIO
Britannia 71863.98 120.38 2.03
ITC 352938.92 13.81 2.77
United Spirits 44837.24 1013.5 1.01
Looking at the comparison table, we see that ITChas the highest value in terms of
market capitalization which is a good indicator for the futureprospects of the
company. Britannia comes next to ITC, United Spirits being the lowestin this
category. United Spirits is leading in the profits (beforetax) category. ITChas the
lowest profits among the other two.

11. The company is doing great in our country with a good brand name as an added
advantage. But due to the changing scenarios of the industry in concern it should
continuously update and work on innovation activities for its products. For
increasing future scopeof the company, diversification and increasing global
presenceare the main focus areas. The technical parameters are decent enough
but can be made better anyways.