The document provides an analysis of the FMCG sector in India based on several reports and sources. It summarizes key points from reports on market opportunities and regulatory framework. It also analyzes macroeconomic outlook, industry growth projections, and key takeaways on product innovations. Additionally, it covers an analysis of Britannia including financial projections, company information, SWOT analysis, and news updates. Sector factors like political, economic, technological, social, and environmental aspects are also evaluated.

1. By –
SUBHADEEP DASGUPTA
UID: 2019-0107-0001-0007
MBA Finance6/18/2020 1

2. 6/18/2020 2
Contents
Conclusion
Business
Finance
Company
Information
Sectoral
Analysis
Economic
Analysis
Summary
of Reports

3. 6/18/2020 3
Summary of Reports
Source: IBEF report on FMCG, March 2020
Opportunities
Market penetration, Innovative
products, Resources etc.
Regulatory Framework
Union Budget, GST,
FSB, FDI, SETU etc.

4. 6/18/2020 4
Summary of Reports Continue
Source: Deloitte Report- “Unravelling the Indian Consumer”, 2019
Macro-Economic outlook of India:
5.6%

5. 6/18/2020 5
Summary of Reports Continue
Source: Deloitte Report- “Unravelling the Indian Consumer”, 2019
30 29
36
Key Takeaways
• Adding new product lines in
Nutrition based foods.
• Expected growth is 2.5 times
of 2019 in next year.

6. 6/18/2020 6Source: https://tradingeconomics.com/india/food-inflation
Sectoral Analysis
F
M
C
G
Food
Processing
Important Macro Economic Factors
Food grains
distributed
lower rate to
maintain
cost
Expected
Money Supply
50 billion+ in
2024
@CAGR
12.4%
Exchange
rate of food
industry is
INR 1 = US$
0.015
Fiscal
Deficit has
gone down
by 3.8% of
GDP
Cost of Food
processing index
Unemploym
-ent rate will
increase

7. 6/18/2020 7
Sectoral Analysis Continue…
Bargaining power of buyers (High)
The switching cost of buyers is very
low.
And similar products are easily
available in the market.
Threats of new entrants (Moderate)
Entry cost is very low.
But marketing cost for promotions
and distribution is high.
Limited rules and regulations
Threats of substitute (High)
Product differentiation is very less
among the rivals and substitutes are
available. So threats of substitute are
very high.
Bargaining power of sellers (Low)
Mass raw materials are consumed by
the companies.
Many suppliers are available in the
market.
Competitive Rivalry
(High):
There are too many
competitions (e.g. Parle,
Amul, ITC etc.)

8. 6/18/2020 8
Sectoral Analysis Continue…
POLITICAL
• Political Stability of INDIA.
• High taxation charges.
• “Vocal for Local” initiative.
• 20 lakh crore package for
MSMEs.
ECONOMICAL
• Current GDP in India is
slopping downwards
• Decrease in the CRR
• High unemployment rate.
• Exchange rate changes will
impact foreign trade.
TECHNOLOGICAL
• Digitalization
• AI & Machine Learning
• High tech application to
SCM helps in reducing the
cost of production.
SOCIAL
• Demographics in India
creates new segment.
• Health consciousness of
society.
ENVIORNMENTAL
• Covid-19 pandemic impact.
• Impact of super cyclone
Umfan in Bengal and East-
Cost areas.
• Lockdown reduced pollution
rate which is good for the
industry.
LEGAL
• Govt norms. For example,
laws to protect Intellectual
Property
• Laws to protect employees.
• Some safety norms also
provided for the employees.

9. 6/18/2020 9
Sectoral Analysis Continue…
Industry life cycle - Hill and Jones model
Current trends
100% FDI is issued for FMCG sector by government
Adaptation of Digitalization
Trading using multiple channels like Amazon,
Flipkart etc.
D2C model is used to provide products directly
from customers to sellers.
New Consumer Protection bill is drafted.
GST became very beneficial for the FMCG sector

10. 6/18/2020 10Source: http://britannia.co.in/milestones/
Company Information Milestones of the company
Still Continuing..

11. 6/18/2020 Source: Company’s official website 11
Company Information Continue…

12. 6/18/2020 12
Company Information Continue…
Tiger, 50-50 and
Little hearts
Bourbon, Pure
magic
Good Day, Marie
Gold and Treat
Nutrichoice

13. 6/18/2020 13
Company Information Continue…
S W
OT
STRENGTH
OPPORTUNITY
WEAKNESS
THREAT
• EPS growth of company is very high.
• Quality Product offered by the company.
• Market share of 400 crore INR, No. 2 in
dairy segment.
• Strong brand recall value of Britannia.
• Deep pockets of the company.
• Strong market penetration.
• Inefficient management of cash.
• ROCE declined in last year.
• Only 5% contribution from dairy segment.
• Declining market share from 20% to 17%
in dairy segment.
• Input price hike contributing towards low
profitability.
• Upgradation in target price in last quarters.
• More market to cover, only cheese 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.
• PE ratio is very high, more than 40.
• 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.

14. 6/18/2020 14
Company Information Continue…
Company Life Cycle
News (Last 6/12 month) incl. corporate announcement
Source: https://www.moneycontrol.com/stocks/company_info/stock_notices.php?sc_did=BI&category=1

15. 6/18/2020 15
Business Finance Rs. In Crores.
FY17
Actual
FY18
Actual
FY19
Actual
FY20
Forcasted
FY21
Forcasted
FY22
Forcasted
FY23
Forcasted
FY24
Forcasted
FY25
Forcasted
Sales of Goods 8,581.55 9,282.04 10,389.49 11,225.52 12,128.83 13,104.83 14,159.37 15,298.76 16,529.84
y-o-y growth % 8% 12% 8% 8% 8% 8% 8% 8%
Case 1: 12% 12% 12% 12% 12% 12%
Case 2: 10% 10% 10% 10% 10% 10%
Case 3: 8% 8% 8% 8% 8% 8%
Other operating revenues 102.84 98.13 92.96 86.52 80.53 74.96 69.77 64.94 60.44
y-o-y growth % -5% -5% -7% -7% -7% -7% -7% -7%
Case 1: -3% -3% -3% -3% -3% -3%
Case 2: -5% -5% -5% -5% -5% -5%
Case 3: -7% -7% -7% -7% -7% -7%
II. Other income 144.78 155.93 190.52 215.18 243.03 274.48 310.00 350.12 395.44
y-o-y growth % 8% 22% 13% 13% 13% 13% 13% 13%
Case 1: 17% 17% 17% 17% 17% 17%
Case 2: 15% 15% 15% 15% 15% 15%
Case 3: 13% 13% 13% 13% 13% 13%
Cost of materials consumed 4,342.78 4,405.17 4,944.77 5,745.97 6,208.35 6,707.93 7,247.71 7,830.93 8,461.07
% of revenue 51% 51% 58% 51% 51% 51% 51% 51% 51%
Case 1: 55% 55% 55% 55% 55% 55%
Case 2: 53% 53% 53% 53% 53% 53%
Case 3: 51% 51% 51% 51% 51% 51%
Total Operating Expenses 1,368.57 1,740.71 1,656.04 1,670.39 1,804.81 1,950.04 2,106.96 2,276.50 2,459.69
% of revenue 16% 19% 16% 15% 15% 15% 15% 15% 15%
Case 1: 19% 19% 19% 19% 19% 19%
Case 2: 17% 17% 17% 17% 17% 17%
Case 3: 15% 15% 15% 15% 15% 15%
D&A 96.43 119.76 135.00 (85.56) (92.45) (99.89) (107.93) (116.61) (126.00)
% of revenue 1% 1% 1% -1% -1% -1% -1% -1% -1%
Case 1: 3% 3% 3% 3% 3% 3%
Case 2: 1% 1% 1% 1% 1% 1%
Case 3: -1% -1% -1% -1% -1% -1%
Total Tax Expenses 407.47 497.31 593.91 681.74 795.32 918.80 1,053.02 1,198.89 1,357.42
% of EBIT 33% 34% 35% 32% 32% 32% 32% 32% 32%
Case 1: 36% 36% 36% 36% 36% 36%
Case 2: 34% 34% 34% 34% 34% 34%
Case 3: 32% 32% 32% 32% 32% 32%

16. 6/18/2020 16
Business Finance Balance Sheet Assuptions
Rs. In Crore
FY17
Actual
FY18
Actual
FY19
Actual
FY20
Forecast
FY21
Forecast
FY22
Forecast
FY23
Forecast
FY24
Forecast
FY25
Forecast Notes
Trade receivables 126 230 351 379 410 443 478 517 558 DSO will remain same as FY2019in forcasted periods
Days Receivables 5.4 9.1 12.3 12.3 12.3 12.3 12.3 12.3 12.3
Inventories 603 595 719 835 903 975 1,054 1,138 1,230 DIO will remain same as FY2019in forcasted periods
Days Inventory 50.6 49.3 53.1 53.1 53.1 53.1 53.1 53.1 53.1
Trade Payables 643 866 1,033 1,200 1,296 1,401 1,513 1,635 1,767 DPO will remain same as FY2019in forcasted periods
Days payable 54.0 71.8 76.2 76.2 76.2 76.2 76.2 76.2 76.2
PP&E 857 1,224 1,385 1,366 1,476 1,595 1,723 1,862 2,011
as a % of Revenue 10.0% 13.2% 13.3% 12% 12% 12% 12% 12% 12%
Other Assets 23 23 30 30 32 35 38 41 44
as a % of Revenue 0.3% 0.2% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3% 0.3%
Other Current Liabilities 261 254 274 315 340 367 397 429 463
as a % of Revenue 3.0% 2.7% 2.6% 3% 3% 3% 3% 3% 3%
Other Non Current Liabilities 1.44 0.72 3.87 2.31 2.50 2.70 2.92 3.15 3.40
as a % of Revenue 0.02% 0.01% 0.04% 0.02% 0.02% 0.02% 0.02% 0.02% 0.02%

17. 6/18/2020 17
Business Finance
Source: Annual report of Britannia 2019
Rs. in Crore
FY17
Actual
FY18
Actual
FY19
Actual
FY20
Forecast
FY21
Forecast
FY22
Forecast
FY23
Forecast
FY24
Forecast
FY25
Forecast
Sales of Goods 8,581.55 9,282.04 10,389.49 11,225.52 12,128.83 13,104.83 14,159.37 15,298.76 16,529.84
Other operating revenues 102.84 98.13 92.96 86.52 80.53 74.96 69.77 64.94 60.44
I. Revenue from operations 8,684.39 9,380.17 10,482.45 11312.048 12,209.37 13,179.79 14,229.13 15363.697 16,590.28
II. Other income 144.78 155.93 190.52 215.18 243.03 274.48 310.00 350.12 395.44
III. Total Income (I+II) 8,829.17 9,536.10 10,672.97 11,527.23 12,452.39 13,454.27 14,539.14 15,713.82 16,985.72
IV. Expenses:
Cost of materials consumed 4,342.78 4,405.17 4,944.77 5,745.97 6,208.35 6,707.93 7,247.71 7,830.93 8,461.07
Gross Profit 4,486.39 5,130.93 5,728.20 5,781.25 6,244.05 6,746.34 7,291.43 7,882.90 8,524.64
Excise duty - 270.02 76.11 -
Purchases of stock-in-trade 904.78 1,372.46 1,381.88
Changes in inventories of finished
goods,work-in-progress and stock- in- (49.25) (4.18) (49.02)
Employee benefits expense 241.68 294.87 321.64
Finance costs 1.34 1.45 1.54
Total Operating Expenses 1,368.57 1,740.71 1,656.04 1,670.39 1,804.81 1,950.04 2,106.96 2,276.50 2,459.69
EBITDA 3,117.82 3,390.22 4,072.16 4,110.86 4,439.24 4,796.30 5,184.47 5,606.39 6,064.95
Depreciation and amortisation expense 96.43 119.76 135.00 (85.56) (92.45) (99.89) (107.93) (116.61) (126.00)
Other expenses 1,770.23 1,825.26 2,221.05 2,221.05 2,221.05 2,221.05 2,221.05 2,221.05 2,221.05
EBIT 1,251.16 1,445.20 1,716.11 1,975.38 2,310.64 2,675.14 3,071.35 3,501.95 3,969.90
V. Profit before tax (III-IV) 1,251.16 1,445.20 1,716.11 1,975.38 2,310.64 2,675.14 3,071.35 3,501.95 3,969.90
(i) Current tax 390.20 499.56 581.36 669.19 782.77 906.25 1,040.47 1,186.34 1,344.87
31% 35% 34% 34% 34% 34% 34% 34% 34%
(ii) Deferred tax 17.27 (2.25) 12.55 12.55 12.55 12.55 12.55 12.55 12.55
VI. Tax expense: 407.47 497.31 593.91 681.74 795.32 918.80 1,053.02 1,198.89 1,357.42
VII. Profit for the year (V-VI) 843.69 947.89 1,122.20 1,293.64 1,515.32 1,756.34 2,018.33 2,303.06 2,612.48
VIII. Other comprehensive income
Remeasurements of the net defined
benefit (liability)/asset (0.37) (0.58) (3.21)
Income-tax relating to items not to be
reclassified subsequently to statement of
profit or loss 0.13 0.20 1.12
Other comprehensive income, net of tax (0.24) (0.38) (2.09) - - - - - -
IX. Total comprehensive income for the
year (VII+VIII) 843.45 947.51 1,120.11 1,293.64 1,515.32 1,756.34 2,018.33 2,303.06 2,612.48
No of outstanding shares 24.00 24.01 24.03 24.00 24.00 24.00 24.00 24.00 24.00
Earnings per share (face value of Rs 1
each)
Basic EPS (Rs) 35.14 39.46 46.61 53.90 63.14 73.18 84.10 95.96 108.85
Profit &Loss
Output

18. 6/18/2020 18
Business Finance
Source: Annual report of Britannia 2019
Profit &Loss
Output
Revenue and EBITDA
Rs. in
Crore
FY17
Actual
FY18
Actual
FY19
Actual
FY20
Forecast
FY21
Forecast
FY22
Forecast
FY23
Forecast
FY24
Forecast
FY25
Forecast
Revenue 8,829.17 9,536.10 10,672.97 11,527.23 12,452.39 13,454.27 14,539.14 15,713.82 16,985.72
EBITDA 3,117.82 3,390.22 4,072.16 4,110.86 4,439.24 4,796.30 5,184.47 5,606.39 6,064.95
EBITDA % 35% 36% 38% 36% 36% 36% 36% 36% 36%
35% 36%
38%
36% 36% 36% 36% 36% 36%
33%
34%
35%
36%
37%
38%
39%
-
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
FY17
Actual
FY18
Actual
FY19
Actual
FY20
Forecast
FY21
Forecast
FY22
Forecast
FY23
Forecast
FY24
Forecast
FY25
Forecast
inCrore
Revenue EBITDA %
Historical Figures Forcasted Figures
EBITDA Bridge
EBITDA in FY19 4,072.16
Delta in Revenue 836.03
Delta in COGS (801.20)
Delta in OPEX 14.35
EBITDA in FY20 4,110.86

19. 6/18/2020 19
Business Finance
Source: Annual report of Britannia 2019
Working Capital
Rs. in Crore
FY17
Actual
FY18
Actual
FY19
Actual
FY20
Forecast
FY21
Forecast
FY22
Forecast
FY23
Forecast
FY24
Forecast
FY25
Forecast
Inventory 602.61 594.58 718.89 835.37 902.59 975.22 1,053.70 1,138.49 1,230.10
Trade Receivables 126.41 230.32 350.96 379.20 409.72 442.69 478.31 516.80 558.38
Trade Payables 642.82 866.36 1,032.54 1,199.84 1,296.39 1,400.71 1,513.43 1,635.21 1,766.80
Working Capital 86.20 (41.46) 37.31 14.73 15.92 17.20 18.58 20.08 21.69
DSO 5.38 9.06 12.33 12.33 12.33 12.33 12.33 12.33 12.33
DIO 50.65 49.27 53.07 53.07 53.07 53.07 53.07 53.07 53.07
DPO 54.03 71.78 76.22 76.22 76.22 76.22 76.22 76.22 76.22
5.38 9.06 12.33 12.33 12.33 12.33 12.33 12.33 12.33
50.65 49.27
53.07 53.07 53.07 53.07 53.07 53.07 53.0754.03
71.78
76.22 76.22 76.22 76.22 76.22 76.22 76.22
(50)
(30)
(10)
10
30
50
70
90
FY17
Actual
FY18
Actual
FY19
Actual
FY20
Forecast
FY21
Forecast
FY22
Forecast
FY23
Forecast
FY24
Forecast
FY25
Forecast
Working Capital DSO DIO DPO

20. 6/18/2020 20
Business Finance Calculation and Interpretation of Ratios
Source: Annual report of Britannia 2019
Years 2017 2018 2019 2020 2021 2022 2023 2024 2025
Current Ratio 1.84 2.03 1.94 2.49 3.04 3.61 4.21 4.83 5.46
Inventory turnover ratio 14.41 7.36 7.53 7.39 7.14 7.14 7.14 7.14 7.14
Total Asset turnover ratio 4.70 2.25 2.04 1.79 1.58 1.41 1.28 1.16 1.06
Liquidity Ratios
Years 2017 2018 2019 2020 2021 2022 2023 2024 2025
Debt Ratio 0.30 0.30 0.29 0.26 0.23 0.20 0.18 0.16 0.15
Equity Ratio 0.70 0.70 0.71 0.76 0.81 0.85 0.88 0.90 0.92
Debt to Equity Ratio 0.43 0.43 0.40 0.34 0.28 0.24 0.21 0.18 0.16
SolvencyRatios
Years 2017 2018 2019 2020 2021 2022 2023 2024 2025
Profit margin ratio 0.10 0.10 0.10 0.11 0.12 0.13 0.14 0.15 0.15
Gross margin ratio 0.51 0.54 0.54 0.50 0.50 0.50 0.50 0.50 0.50
Return on total assets 0.46 0.23 0.22 0.20 0.20 0.19 0.18 0.17 0.17
BVPS 155.07 155.01 154.88 155.07 155.07 155.07 155.07 155.07 155.07
Basic EPS 35.14 39.46 46.61 53.90 63.14 73.18 84.10 95.96 108.85
ProfitabilityRatios

21. 6/18/2020 21
Business Finance Share Price Analysis
Source: money control data
Current Market Price (as of 26.05.2020): 3196.40 (BSE India)
Volume: 8394 (BSE India)
52 week Low: 2100.55
52 week High: 3443.90
Beta: 0.81 (as Beta <1 we can say there is low risk.)
Market Capital (Rs. Cr): 77334.60
BVPS (Rs) 167.98
Face Value (Rs) 1.00
Relative market share
comparison.
Britannia Vs Sensex

22. 6/18/2020 22
Business Finance
Note
Goal seek is used to find WAAC for Enterprice value @ 4000
Perpetuity grow th lies betw een 2-6%
Cash Flows
WAAC 31%
Perpetuity Growth (g) 3%
PV of Cash Flow s 2,978.5 74.5%
Continuing Value 5,213.1 4,000.0 30% 31% 32% 33% 34%
PV of Continuing Value 1,021.5 25.5% 1% 4,090.3 3,943.8 3,807.1 3,679.3 3,559.6
Enterprice Value 4,000.0 2% 4,137.6 3,986.3 3,845.4 3,713.9 3,590.9
Less: Financial Liabilities (303.1) 3% 4,188.5 4,031.9 3,886.4 3,750.8 3,624.2
Add: Cash 24.7 4% 4,243.3 4,080.9 3,930.3 3,790.3 3,659.7
Equity Value 3,721.7 5% 4,302.5 4,133.6 3,977.4 3,832.5 3,697.7
Current Equity Value 3,196.4
Upside 16%
DCF Valuation
WACC
g
Scenario Analysis
1.0 2.0 3.0 4.0 5.0 6.0
Rs. In Crores.
FY18
Actual
FY19
Actual
FY20
Forecast
FY21
Forecast
FY22
Forecast
FY23
Forecast
FY24
Forecast
FY25
Forecast
UFCF 622.2 481.7 1,093.6 1,036.0 1,137.5 1,236.6 1,333.3 1,427.9
Discounting Factor 0.8 0.6 0.4 0.3 0.3 0.2
PV of UFCF 833.5 601.8 503.5 417.2 342.8 279.8
No of Years/ Periods

23. 6/18/2020 23
Business Finance
DCF Result
Enterprice Value 5000 Enterprice Value 4000 Enterprice Value 7000
CFs in Forcasted Period 67.5% CFs in Forcasted Period 74.5% CFs in Forcasted Period 56.4%
Continuing Value 32.5% Continuing Value 25.5% Continuing Value 43.6%
Scenario 1 Scenario 2 Scenario 3
67.5%
32.5%
Enterprice Value: Scenario 1
CFs in
Forcasted
Period
Continuing
Value
5000.0
74.5%
25.5%
Enterprice Value: Scenario 2
CFs in
Forcasted
Period
Continuing
Value
4000.0
56.4%
43.6%
Enterprice Value: Scenario 3
CFs in
Forcasted
Period
Continuing
Value
7000.0

24. 6/18/2020 24
Business Finance
Source: money control data
Competition Analysis
Company Name
For Year End 2017 2018 2019 2017 2018 2019 2017 2018 2019
Particulars
Total Income 8,829.17 9,536.10 10,672.97 10,186.52 11,551.19 12,759.97 42,074.68 42,757.38 44,995.65
Total Expenses 7,578.01 8,090.90 8,956.86 8,255.32 9,010.29 9,651.79 26,548.68 25,819.03 29,001.84
PBT 1,251.16 1,445.20 1,716.11 1,931.20 2,540.90 2,671.99 15,525.91 16,938.35 18,478.35
Net Profit 843.45 947.51 1,120.11 1,225.19 1,606.93 1,966.55 10,200.90 11,223.25 12,464.32
Britannia Nestle ITC
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
50,000
2017 2018 2019 2017 2018 2019 2017 2018 2019
Britannia Nestle ITC
Total Income
Total Expenses
PBT
Net Profit

25. 6/18/2020 25
Business Finance
Source: money control data
Competition Analysis
Company Name
For Year End 2017 2018 2019 2017 2018 2019 2017 2018 2019
Equity and Liabilities
Share Capital 24.00 24.01 24.03 96.42 96.42 96.42 1,214.74 1,220.43 1,225.86
Researve & Surplus 2,672.42 3,382.22 4,229.22 3,324.17 3,577.32 1,835.84 44,126.22 50,179.64 54,725.99
Current Liabilities 1,345.40 1,647.97 1,851.41 1,492.71 1,854.95 2,147.51 6,830.07 8,856.60 9,621.56
Other Liabilities 66.98 133.72 137.16 2,449.29 2,559.29 2,978.43 2,044.92 2,124.64 4,224.51
Total Liabilities 4,108.80 5,187.92 6,241.82 7,362.59 8,087.98 7,058.20 54,215.95 62,381.31 69,797.92
Assets
Fixed Assets 1,062.22 1,420.22 1,659.17 2,710.34 2,505.82 2,370.01 18,417.26 20,591.57 21,887.76
Current Assets 2,339.24 3,151.28 3,526.34 3,937.39 4,736.95 3,817.17 24,537.39 24,503.00 29,568.96
Other Assets 707.34 616.42 1,056.31 714.86 845.31 871.02 11,261.30 17,286.74 18,341.20
Total Assets 4,108.80 5,187.92 6,241.82 7,362.59 8,088.08 7,058.20 54,215.95 62,381.31 69,797.92
Britannia Nestle ITC
24.00
24.01
24.03
96.42
96.42
96.42
1,214.74
1,220.43
1,225.86
2017 2018 2019 2017 2018 2019 2017 2018 2019
BRITANNIA NESTLE ITC
SHARE CAPITAL

26. 6/18/2020 26
Business Finance
Source: money control data
Competition Analysis – Liability pattern

27. 6/18/2020 27
Business Finance
Source: money control data
Competition Analysis – Asset pattern

28. 6/18/2020 28
Business Finance
Source: Annual report of Britannia 2019
Qualitative Analysis of Annual Reports
Related to Industry Development
Business Strategy
Segment
Outlook
Opportunities
Risk and Concerns
• Bakery is expected that it will grow by 11.27%
CAGR from 2018 to 2022. There will be a
collaboration with Chipita. Britannia’s mission is to
be the “Total Foods Company”.
• Britannia is strengthening the position of
Bakery by strong categories, competitive
mixes and innovations.
• Food Processing
• External environment and economy has
impacted badly in the business, but Britannia
is expecting to overcome it soon.
• Growing aspiration, positioning uniquely to
consumers, past capability, brand recognition
are the best opportunities for Britannia.
• Changes in the economy is the primary risk
for the company and volatility in price is also
the risk that is to be concerned.
Management
Discussion

29. 6/18/2020 29
Business Finance
Source: Annual report of Britannia 2019
Qualitative Analysis of Annual Reports
Auditors Comments
Revenue recognition
• It is the key audit matter for the Company because external
stakeholders take revenue as a KPI. Incentive for revenue could
be created to be recognized before transferring the control.
Related Party Transfer
• During 2018-2019 company has done many transactions which
could be a risk in completing financial statements. According to
Companies Act 2013, SEBI regulations involved in related party
transactions are undertaken at arm’s length.
Tax Litigations – Provisions and Contingencies
• Management should take judgements in related to litigations.
Some tax laws are having a very significant impact in Financial
statements which company should take care.

30. 6/18/2020 30
Business Finance
Source: Annual report of Britannia 2019
Qualitative Analysis of Annual Reports
Revenue
Structure

31. 6/18/2020 31
Business Finance
Source: Annual report of Britannia 2019
Qualitative Analysis of Annual Reports
Cost Structure

32. 6/18/2020 32
Business Finance
Source: Annual report of Britannia 2019
Qualitative Analysis of Annual Reports
Cost Structure

33. 6/18/2020 33Source: Annual report of Britannia 2019
CONCLUSION
01
02
Financial statements of the company for last three
years shows that Britannia is stable in nature.
From the P&L statement we can easily understand that
since 2017 to 2019 total revenue has increased and the
net profit is nearly same for the past three years. But
Britannia is unable to control the cost. For which Net
profit of the company is not increased.
03
Current market of Britannia is going very good it is bullish in
nature.

34. 6/18/2020 34
CONCLUSION
04
Beta factor is less than 1.00. Those who are safe players can invest
in Britannia.
06
05
Due to Cocid-19 Food processing industry is also effected and it is
expected that next two years the revenue from sales will be
hampered.
Work from home for the manufacturing companies is not possible
in current scenario. So Britannia should take very hard safety
measures in reopening to protect their employees and to protect
their business.

35. Help the Fighters,
Stay at Home,
Stay Safe….