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Britannia final project
- 1. BRITANNIA INDUSTRIES(Britannia Rusk) SUBMITTED BY : Harshal Kulkarni(MBA20D12) Final Project
- 2. SECTOR CONTRIBUTION Fast Moving Consumer Goods (FMCG) 4th Largest sector Contributes 3 % in total and 20% in Industry Expected to grow at the 14% CAGR 57% 25% 18% Sector Contribution 2021 Services Industry Agriculture Source : Ministry of Statistics and Programme Implementation
- 3. SECTOR INFORMATION Expected Growth was 103.7B Covid19 effected on growth rate According to CRISIL expected to grow at the rate of 3% in 2021 In 2020 Q1=3%, Q2=-19% and Q3=0.9% Food And Beverages 53% Personal Care 20% Tobacco 15% Health care 10% Lightening 2% FMCG INDIA Food And Beverages Personal Care Tobacco Health care Lightening Source : www.ibef.com
- 4. PORTER’S FIVE FORCES High - Foreign companies like Mad over Donuts plans of expanding its operations by opening new MOD stores. Moderate : Even if the cost of entry is high for food industry, but the policies of government are benefiting the companies like Patanjali. High : Availability of food products in any country is easier. Substitute of food products are easily available for the companies have more threat from substitute. Low : For the food industry bargaining power of suppliers will be low as there are many suppliers for providing raw material for food industry. Country like India can easily provide raw material for Food industry. High : Country like India has more bargaining power as the population is second largest in the world. Cost of switching is high . In food industry the products are Undifferentiated. Bargaining Power of Supplier Bargaining Power of Buyers Rivalry Competition Threats of Substitutes Threats of New Entrants
- 5. COMPANY’S OVERVIEW Britannia Industries Limited is an Indian Food Company set up in 1892 and headquartered in Kolkata. Now Britannia is a part of Wadia Group headed by Nusli Wadia. (Source : www.Britannia.co.in) S W T O • 30% market share biscuit category. • Shelf Visibility • Available for all income Groups • Increasing Number of Players • Highly Diversified Market • Product name creates confusion • Overall product export is less • Dairy sector is struggling • Shaping and Repositioning dairy sector will give tremendous growth. • Expanding Business Overseas
- 6. PRODUCT PORTFOLIO •GOOD DAY •CRACKERS •NUTRICHOICE •MARIE GOLD •TIGER •MILK BIKIS •JIMJAM + TREAT •BOURBON •LITTLE HEARTS •PURE MAGIC •NICE TIME •WHOLE WHEAT BREADS •WHITE SANDWICH BREADS •BREADS ASSORTMENT •DAILY BREADS •CHEESE •MILK BASED BEVERAGES •FRESH DAIRY •EVERYDAY GOODNESS •GOBBLES •TIFFIN FUN •NUT & RAISIN •MUFFILS •LAYERZ •ROLLYO •FUDGEIT •TOASTEA •TREAT CRÈME WAFER •TREAT CROISSANT
- 7. COMPANY NEWS Britannia lines Rs. 1000 cr. Investment to scale up capacity, launch new products. Britannia profit more than doubled during the lockdown and sales were the best in at least five quarters Britannia turning Covid19 crisis into Opportunity : Varun Berry 37% 6% 30% 4% 8% 15% Competitors Market Share2020 HUL Britannia ITC Dabur Nestle Others Britannia’s Market Share in FMCG is 6% In Biscuit Category Britannia has 30% Market Share Premium products are dominant Source : www.statista.com
- 8. SWOT ANALYSIS OF PRODUCT BCG MATRIX OF PRODUCT •Increasing demand of Premium products •Scope along with Dairy sector • Players like ITC and Parle introducing same products • Local Players giving in less price. • Less product variants • Product name • Comes under premium product • Crunchiness gives special attention S W O T Market Growth Rate Relative Market Share
- 9. Marketing Mix of Product STP Product : FSSAI Approved Category : Rusk Variants : 1. Britannia Premium Rusk 2. Britannia Milk Rusk 3. Britannia Multigrain Rusk Quantity Britannia Premium Rusk Britannia Milk Rusk Britannia Multigrain Rusk 273 gm 32 Rs. NA NA 654 gm 78 Rs. NA NA 200 gm 30 Rs. 30 Rs. 30 Rs. Place : Strong Hold in India Outside the India Britannia has deal with Peek and Freans Biscuit. Products available on online portals Promotion : Marketing : Television, Radio, Social Media, Newspaper, Magazines Sales : Tie up with Bollywood Actors, Cricketers SEGMENT • Geographic : Over 60 countries • Demographic : Above the age of 3 • Psychographic : crunchiness and evening cravings TARGETING • Britannia Tostea targeting higher income customers POSITIONING • Premium, Healthy Bakery And Dairy Products.
- 10. Product Life Cycle Britannia Rusk Growth Introduction Maturity Decline Britannia Rusk is under Maturity Stage Premium and Unique features reflecting on Customer Base
- 11. Organizational Structure Chairman CFO Procurement SALES HR MANUFACTURING , CONTRACT PACK QUALITY QUALITY AND DEVELOPMENT CONSUMER INSIGHTS AND MEDIA INTERNATIONAL BUSINESS SUPPLY CHAIN Directors
- 12. CAREER AND SELECTION PROCESS MARKETING -Managers/Executive Sales Managers FINANCE -Accounts Officer HUMAN RESOURCES -HR Manager SELECTION PROCESS Application/ Submission of Profile Review Interview Post Interview
- 13. PERFORMANCE APPRAISAL Britannia execute the performance appraisal by evaluating their employees performance. KRA and KPA techniques are use to evaluate. VALUES : Accountability, diversity, Quality, collaboration, Passion ASSUMPTIONS : Embedded Ideologies and Philosophies ORGANIZATIONAL STRUCTURE ARTEFACTS : Open Door Policy, Official Layout and Official Layout
- 14. Financials 15.7 16.9 17.8 18.7 9.8 10.2 10.8 13.7 0 2 4 6 8 10 12 14 16 18 20 FY17 FY18 FY19 FY20 Profit Margin Gross Profit Margin Net Profit Margin 5547.95 6005.67 6697.01 7026.6 2731.62 2969.12 3261.14 3285.21 0 1000 2000 3000 4000 5000 6000 7000 8000 FY17 FY18 FY19 FY20 Direct and Indirect Cost Direct Cost Indirect Cost Source : Annual report of Britannia 2017 to 2020
- 15. Financial Statements and Ratios o Gross Profit Margin 18.74% o Net Profit Margin 13.5 % o Direct Cost 7026.6 cr. o Indirect Cost 3199.08 o Change in direct Cost 0.32 % o Change in indirect Cost 0.29 % o Fixed assets added 106.94 cr. o Working Capital 990.09 cr. o Debt equity ratio 1.69 o Liquidity Ratio Current Ratio :1.44 Quick Ratio : 1.16 o Solvency Ratio 0.54 o ROCE 0.37 o ROIC 0.59 2019-2020 Source : Britannia.co.in/standalone statement 2019-2020
- 16. THANK YOU
Editor's Notes
- FMCG is the 4th largest sector in india The data given by Ministry of statistics and programme implementation FMCG’s contribution to GDP overall is 3 % And it comes under industry where it is contributing around 20% in industry contribution. By experts it was expected to grow at 14 % CAGR But due to covid for the first quarter the growth has reduced.
- The FMCG sector has divided in 5 sectors And we can see that food and beverages has more contribution in overall fmcg’s revenue That it is contributing more than 50 % According to ibef and the report published by livemint.com The quarterly growth of FMCG in 2020 is reduced in second quarter And again in quarter 3 it has reached to 0.9% The Crisil company of industry analytics Has predicted that fmcg’s growth in 2021 will be 3 %.
- Five forces and its effect on FMCG Rivalry competition in FMCG will be always high, because most of the products are comes under necessary goods Example of MOD Almost every product is dependent on agriculture, and we know that India is agricultural country that here are so many agricultural suppliers Every FMCG company has same products as others, so changing prices of products will definitely affect on customers That cost of switching is high Threats of New entrants will be always moderate at least in FMCG, these good are easy to produce and comes under essential products Example of Patanjali For every product there will be definitely substitute products of substitute brand.
- Now coming to the company overview The Britannia is largest packaged food company It has started in 1892 by the British Businessman CH HOLMES Later It became the part of Wadia group which is headed by Nusli Wadia Who is the current Chairman of Britannia And current Managing Director of Wadia group is Varun Berry Strengths of Britannia are it has 30% market share in Biscuit which is their main product, also wide range of products for all income groups Some names of products are confusing the customers and effecting on their sales, overall exports of products is less Britannia has opportunities in dairy sector that it has already some products in dairy, they can focus and can expand overseas Threats for Britannia are new entrants, that the fmcg market is so diversified,
- 1.Product portfolio of Britannia is very strong amongst the food and beverages companies 2. Every product have minimum less and maximum 10 variants.
- In 2020 Britannia invested 1000 cr. In Maharashtra for their new plant As Varun Berry the managing director of Britannia said Britannia is turning covid19 crisis into opportunity According to economictimes the profit is almost doubled during lockdown Although Britannia has large market share in Food and Beverages but in FMCG industry its has less market share Market leader In FMCG is HUL and many local players are dominating the market.
- Strengths of Rusk is that it comes under all type of price range. The features like crunchiness is increasing temptation amongst the customers Britannia Rusk’s one variant premium rusk tostea comes in 3 various packages, but other 2 variants are only providing basic package Opportunities for Rusk can be increased with the growth of dairy products Threats for rusk are from other market leaders like ITC and Parle as they have same product and some local players like anmol deluxe are selling rusk in low prices Britannia Rusk will come under star category, As it is first introduced by Britannia only, Rusk is growing with the market growth , it is leading in rusk category.
- Marketing mix for Britannia rusk will be as follow Britannia rusk is fssai approved comes under 3 variants Only one variant which is basic premium rusk available in 3 prices and other 2 variants milk rusk and multigrain rusk comes in 200 gm pack. Britannia has strong hold in India and outside india Britannia has deal with Peek and Freans Biscuit company. Also Britannias products are available in retail stores and online portals. One interesting strategy by Britannia in cricket world cup that the even Britannia Khao World Cup Jao, this event organised in 1999 world cup And many of us must have seen the Britannia’s logo tagged on the bat of international players. Also Britannia promote their brand with television,billboard, newspapaer, magazines It has also tie up with various Bollywood celebreties Britannia has segmentation by demographically, psychographically and geographically,I In geographic segmentation it is operating around 60 countries According to demographic segmentation above the age of 3 can have Britannia’s product The crunchiness and evening cravings feature focused on psychology of the customers. Britannia is mostly targeting mostly to the higher customers as it is comes under premium product Britannia Rusk is positioned as Premium healthy bakery product.
- Britannia rusk is in maturity stage The features of Britannia rusk and as a premium product it has increased their customer base.
- 1. Board of Directors in Britannia have 11 members and the chairman is Mr. Nusli Wadia and Managing director is Varun Berry. 2. In N1 category the CFO and every management officers will come
- Here I have mentioned job description of three category For all these post candidate have to complete his/her Mba and have some work experience along with good knowledge of advance excel and powerpoint For marketing designations are managers, executives, sales managers and the key responsibilities are promote, expand territory sales through Dealer/ Distribution Network/ Retail stores For finance there will be post of accounts manager candidate should have done his/her specialization in finance and relatively for HR manager candidate should complete his graduation in respective specialisation.
- In Britannia there are two major techniques used to evaluate the employee or managers performance First is KRA which is the area identified as important or crucial where a result will assist in the achievement of the set objectives or goal And second is KPA Key performance area which is used to evaluate overall performance of the employee For eg. KRA factors for Product manager : 1. Customer Satisfaction 2. Product Management 3. Operational Cost Control 4. Quality Check 5. Record Checking 4. KPA factors for Product Manager : Maintaining Good working Condition in plant Optimum Resource Utilization Process Improvement Safety and Prevention Planning and Control Working within company’s SLA(Service Level Agreement) GRC (Governance, Risk Management and Compliance Policies)
- Here the line graph shows gross profit and net profit margin over 4 years from 2017 to 2020 From 2017 to 2020 Gross profit has increased around 20 % Net profit from 2017 to 2019 was quite normal but we can see in 2020 inspite of lockdown it has increased around 39% It is showing us that as Varun Berry Managing Direcctor of Britannia said that it is an opportunity for Britannia The net profit has increased Also in direct and indirect cost are there is no such movement
- Here are all ratios are showing us that Britannia financial condition is quite good also in this covid pandemic The all ratios are showing positive growth Working capital of Britannia is 990 cr. and return on investment is also around 59 %.
- So, we can conclude from this presentation is that Britannia is the market leader in Food and Beverages industry It has scope of expansion in India and also overseas Britannia is investing more to introduce new product And the healthy and eat healthy, think better is creating positive brand image. Also talking about Britannia Rusk it is still market leader in Rusk category as it is first introduced Thank you that is all from my side.