The research report on Britannia Industries Contains A Company overview, Shareholding Pattern, Swot Analysis, Leadership, Competition Analysis & More.

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Britannia Industries
Research Report on Britannia Industries.
Presented By: Bhavika Rohira

2. COMPANY OVERVIEW
Britannia Industries is one of India’s leading food
companies with a 100-year legacy and annual revenues in
excess of Rs. 9000 Cr. Britannia is among the most
trusted food brands, and manufactures India's favourite
brands like Good Day, Tiger, NutriChoice, Milk Biscuits
and Marie Gold which are household names in India.
Britannia's product portfolio includes Biscuits, Bread,
Cakes, Rusk, and Dairy products including Cheese,
Beverages, Milk and Yoghurt.
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Britannia is a brand which many generations of Indians
have grown up with and our brands are cherished and
loved in India and the world over. Britannia products are
available across the country in close to 5 million retail
outlets and reach over 50% of Indian homes.
The company’s Dairy business contributes close to 5 per
cent of revenue and Britannia dairy products directly reach
100,000 outlets.

3. Shareholding Pattern of Britannia Industries.
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51%
16%
11%
22%
Promoters Foreign institutional investors (FIIs) Domestic Institutions Investors Public
•Company has a good return on equity (ROE)
track record: 3 Years ROE 31.80%
•Company has been maintaining a healthy
dividend pay-out of 40.33%
• Promoters holding marginally changed to
50.58% as of Sep 2020 qtr.
• FII/FPI have increased their holdings by 1.36% of
holdings in Sep 2020 qtr.
• Number of FIIs/FPIs holding stock rose by 81 to
745 in Sep 2020 qtr.
• Institutional Investors holding
marginally changed to 27.51% as
of Sep 2020 qtr.
• Number of Mutual Funds holding
stock rose by 2 to 36 in Sep 2020
qtr.

4. LEADERSHIP TEAM
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Mr. Nusli N Wadia, was inducted on the Company’s Board on 5th September 1993 and has
been the Chairman of the Company since 8th September 1993. Mr. Wadia is a well-known
Indian Industrialist. He is the Chairman of Wadia Group companies and also Director on
the Board of several Indian companies.
Mr. Varun Berry, holds a graduate degree in BE Mechanical from the Punjab University.
Mr. Varun Berry joined the Company as Vice President & Chief Operating Officer with
effect from 1st February, 2013. He has an experience of over 27 years with premier
companies like Hindustan Unilever and PepsiCo.
Mr. Ness Wadia, is a Master in Science from the Warwick University in Coventry, UK. He
was closely involved in marketing and retail distribution of the Textile Division of Bombay
Dyeing. He has been actively associated with the Wadia Group for over 20 years including
about 5 years as Deputy Managing Director and 5 years as Joint Managing Director of
Bombay Dyeing.
Tanya is the Executive Director and Chief Brand Officer of Godrej Industries Ltd., and is
responsible for the Godrej Group's brand and communications function, including guiding
the Godrej Masterbrand.

5. Competitors Analysis
• Market Capital:
₹ 84,514 Cr.
• Current Market Price:₹
3,504
• Book Value: ₹ 111
• Stock P/E: 47.5
• Dividend Yield: 2.36%
• ROE: 32.5 %
• Sales: ₹ 3419.11 Cr.
• Market Capital:
₹ 163,703 Cr.
• Current Market Price: ₹
16,982
• Book Value : ₹ 236
• Stock P/E: 79.0
• Dividend Yield: 0.95%
• ROE: 70.3 %
• Sales: ₹ 3541.70 Cr.
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• Market Capital:
₹ 500,831 Cr
• Current Market
Price:₹ 2,131
• Book Value:₹ 199
• Stock P/E: 68.8
• Dividend Yield: 1.17 %
• ROE: 85.7 %
• Sales: 11,683
• Market Capital: ₹ 89,714 Cr.
• Current Market Price:₹ 507
• Book Value:₹ 40.3
• Stock P/E:58.7
• Dividend Yield:0.59 %
• ROE:24.9 %
• Sales: ₹2,516

6. Competition Analysis
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Britannia
Nestle
Dabur
Hindustan Uniliever
MARKET CAP
Britannia: 84,540
Hindustan Unilever:
5,11,636
Dabur: 90,430
Nestle: 16,3741

7. SWOT Analysis
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Strengths
• Over 120 Years of History.
• Brand Name.
• 2nd in Market Capital.
• Strong Distribution Network.
• Market Leader in bakery.
• In depth Product Portfolio.
• Opportunities.
• Changing lifestyle, Demand for
healthier food products.
• Overseas Market.
• Emerging Dairy Industry.
• Weakness
• Struggling dairy business.
• Over dependency on the
biscuit business.
• Various brands got
commoditized over time.
• No overseas presence.
Strengths
• Buyers power:
• Price of raw material:
• Competition in the market:

8. SWOT Analysis
• Strengths in the SWOT analysis of Britannia
1. Serving Indian Markets from last 120 years: 123 years ago, in a small house in central Calcutta
(now Kolkata) an intrepid baker made a batch of delicious, golden brown biscuits. Since then, Britannia
has been serving the Indian consumer with a range of fresh, nutritious and flavour-rich products.
2. High Brand Recall: Because of its presence across range of bakery products like biscuits, rusk, cakes
& dairy products like milk, butter & cheese etc., their shelf visibility is high. Also their focused marketing
& advertising campaigns resulted into positive word of mouth & high TOMA (top of mind awareness).
3. Brand portfolio: Britannia is the only company in India that has offerings in bakery products across
the segment for all income groups due to which it’s possible for them to acquire large share of wallet of
consumers. Britannia holds nearly 30% market share in the India’s biscuit category.
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9. SWOT Analysis
• Weaknesses in the SWOT analysis of Britannia
1.Over dependency on the biscuit business: Britannia’s 75% revenue comes from
biscuit business. Although they are market leader in the same but over dependency on the
same may affect their long term existence in the business.
2.Various brands got commoditized over time: Brands like Bourbon & glucose
biscuits of Britannia got commoditized over time such as in case of “bourbon”, Parle also
introduced “Parle bourbon” biscuits. Brand name when used like this by other companies,
creates confusion in the mind of the consumers resulting in loss of sale.
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10. SWOT Analysis
• Opportunities in the SWOT analysis of Britannia
1. Emerging Dairy Industry: With organoleptic (flavour, taste & colour) features shaping the
dairy industry, improving dairy products can help the company to improve their market share
& reposition itself in dairy market.
2.Changing lifestyle & demand for healthier food products: Improvement in literacy
rate, health awareness, changing lifestyle,& increase in disposable income are shaping the
demand for healthy food products.
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11. SWOT Analysis
• Threats in the SWOT analysis of Britannia
1. Competition in the market: With increasing number of players (local players – Anmol, Priya &
national- ITC, Parle), it’s becoming very hard for the company to differentiate themselves from others.
There is also threat from counterfeit products destroying its brand image in the market.
2.Price of raw material: Increasing price of commodities will result in further increase in the price of
the end product. Further increase in price will result in decrease in profitability or reduced consumption.
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12. Conclusion
Britannia is one of the most known Biscuit, bakery and dairy food FMCG companies in India. The vast variety
of products with known brand names like Good day, Marie, Cheese, butter etc make up the core product portfolio of
Britannia. Naturally, the distribution of Britannia is far and wide.
The company has also laid out a robust capex plan, with one new plant in Tamil Nadu, its largest state in terms of sales,
another one in UP, currently the second largest market and the third one in Bihar. In addition to this a brownfield
expansion is also planned in Orissa and Ranjangaon facility in Maharashtra, altogether costing Rs. 700 crore in the
next 2-3 years. According to management, growth is already baked into Britannia’s long-term plans
Britannia was among the very few manufacturers that was first off the block to restart its production facilities, taking
advantage of low competitive intensity. Consequently, its rusk and bread volumes, where local players usually rule the
roost, jumped dramatically growing even faster than biscuits.
After dipping to its 52-week low on 23rd March, Britannia stock price touched 4000 levels by 20th July as phenomenal
June quarter results enthused investors. After a dismal 2.5% revenue growth in March quarter FY20, Britannia
reported 27% revenue growth, 118% jump in PAT and operating profit rising 82% YoY in June quarter FY21 stimulated
by pantry loading and packaged food coming to everyone’s rescue amidst lockdown restrictions
Britannia makes nearly 80% of its revenue from biscuits. That is likely to change as the company wants to expand the
‘non-biscuits’ segment. It has plans to make it contribute up to 50% of revenue in the next five years. The company is
also increasing its dairy market share
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