britannia project
DESCRIPTION
britannia projectTRANSCRIPT
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A PROJECT ON
BRITANNIA
IN THE SUBJECT
ADVANCED FINANCIAL ACCOUNTING
SUBMITTED BY
NAME: SOUMEET D. SARKAR
ROLL NO.: 041
DIVISIONS: A
UNDER THE GUIDANCE OF
PROF. BHARAT PATEL
TO
UNIVERSITY OF MUMBAI FOR
MASTER OF COMMERCE PROGRAMME (SEMESTER - I)
YEAR: 2013-14
SVKMS
NARSEE MONJEE COLLEGE OF COMMERCE &ECONOMICS
VILE PARLE (W), MUMBAI 400056.
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EVALUATION CERTIFICATE
This is to certify that the undersigned have assessed and evaluated the
project on BRITANNIA submitted by student of M.Com. Part - I
(Semester I) for the academic year 2013-14. This project is original to the
best of our knowledge and has been accepted for Internal Assessment.
Name & Signature of Internal Examiner
Name & Signature of External Examiner
PRINCIPAL
Shri. Sunil B. Mantri
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DECLARATION BY THE STUDENT
I, student of M.Com. (Part I) Roll No.:041 hereby declare that the project
titled BRITANNIA for the subject ADVANCED FINANCIAL
ACCOUNTING submitted by me for Semester I of the academic year
2013-14, is based on actual work carried out by me under the guidance and
supervision of PROF. BHARAT PATEL. I further state that this work is
original and not submitted anywhere else for any examination.
Place: MUMBAI.
Date:
(SOUMEET D. SARKAR)
Name & Signature of Student
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ACKNOWLEDGEMENT
It is indeed a great pleasure and proud privilege to present this project
work.
I thank my project guide and M-COM co-ordinator of SVKMS NARSEE
MONJEE COLEGE OF COMMERCE AND ECONOMICS, VILE PARLE
(WEST). Their co-operation and guidance have helped me to complete this
project.
I would sincerely like to thank the principal of our college Shri.Sunil
B.Mantri for his support and guidance.
I would also like to thank the college library and its staff for patiently
listening and guiding me and finally. I would like to thank my family and
friends who supported me in this project.
THANK YOU.
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CONTENT
Sr. No. PARTICULARS Page No.
CHAPTER I INTRODUCTION
1.1 Company Information 6
1.2 Major Players & Market Share 8
1.3 Pricing & Cost Sheet 9
1.4 Milestones Achieved 11
1.5 Products Available 18
1.6 Product Information 12
CHAPTER II DATA ANALYSIS & COLLECTION
2.1 Balance Sheet 23
2.2 Profit & Loss A/c 25
2.3 Statement of Cash Flow 27
2.4 Comparative Balance Sheet 30
2.5 Comparative Profit & Loss A/c 32
2.6 Significant Ratios 34
CHAPTER IV CONCLUSION
4.1 Comments 37
4.2 Conclusion 40
4.3 Biblography 42
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INTRODUCTION:-
The story of one of India's favourite brands reads almost like a fairy tale. Once upon a
time, in 1892 to be precise, a biscuit company was started in a non-descript house in
Calcutta (now Kolkata) with an initial investment of Rs. 295. The company we all know
as Britannia today. Initially, biscuits were manufactured in a small house in central
Kolkata. Later, the enterprise was acquired by the Gupta brothers mainly Nalin Chandra
Gupta, a renowned attorney, and operated under the name of " V . S . Brothers ". In
1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and
the Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was
set up in 1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits
were in big demand during World War II, which gave a boost to the companys sales.
The company name finally was changed to the current "Britannia Industries Limited" in
1979. In 1982 the American company Nabisco Brands Inc. became a major foreign
shareholder.
The beginnings might have been humble the dreams were anything but. By 1910, with
the advent of electricity, Britannia mechanised its operations, and in 1921, it became the
first company east of the Suez Canal to use imported gas ovens. Britannia's business
was flourishing. But, more importantly, Britannia was acquiring a reputation for quality
and value. As a result, during the tragic World War II, the Government reposed its trust
in Britannia by contracting it to supply large quantities of "service biscuits" to the armed
forces.
As time moved on, the biscuit market continued to grow and Britannia grew along with
it. In 1975, the Britannia Biscuit Company took over the distribution of biscuits from
Parry's who till now distributed Britannia biscuits in India. In the subsequent public issue
of 1978, Indian shareholding crossed 60%, firmly establishing the Indian-ness of the
firm. The following year, Britannia Biscuit Company was re-christened Britannia
Industries Limited (BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue
mark.
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On the operations front, the company was making equally dynamic strides. In 1992, it
celebrated its Platinum Jubilee. In 1997, the company unveiled its new corporate identity
- "Eat Healthy, Think Better" - and made its first foray into the dairy products market. In
1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinity
consumers had with 'Brand Britannia'.
Britannia strode into the 21st Century as one of India's biggest brands and the pre-
eminent food brand of the country. It was equally recognised for its innovative approach
to products and marketing. The Lagaan Match was voted India's most successful
promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska
became India's most successful product launch. In 2002, Britannia's New Business
Division formed a joint venture with Fonterra, the world's second largest Dairy Company,
and Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision and
accelerating graph, Forbes Global rated Britannia 'One amongst the Top 200 Small
Companies of the World', and The Economic Times pegged Britannia India's 2nd Most
Trusted Brand.
Today, more than a century after those tentative first steps, Britannia's fairy tale is not
only going strong but blazing new standards, and that miniscule initial investment has
grown by leaps and bounds to crores of rupees in wealth for Britannia's shareholders.
The company's offerings are spread across the spectrum with products ranging from the
healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese.
Having succeeded in garnering the trust of almost one-third of India's one billion
population and a strong management at the helm means Britannia will continue to dream
big on its path of innovation and quality and millions of consumers will savour the
results. At present, the company is growing at a steady rate, and is currently profitable.
Between 1998 and 2001, the company's sales grew at a compound annual rate of 16%
against the market, and operating profits reached 18%. More recently, the company has
been growing at 27% a year, compared to the industry's growth rate of 20%. At present,
90% of Britannias annual revenue of Rs.22 billion comes from biscuits. Britannia is one
of India's 100 Most Trusted brands listed in THE BRAND TRUST REPORT.
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Major Players in the Industry:-
1) BRITANNIA INDUSTRIES LTD. (BIL)
2) PARLE
3) ITC Ltd.
4) Surya Foods & Agro Ltd. (PRIYA GOLD)
Market Share:-
MARKET SHARE
BRITANNIA
PARLE
OTHERS
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PRICING of the product has played an important role for the company to achieve a
major market share. For pricing company has taken into factors like fixed and variable
costs, competition, company objectives, proposed positioning strategies, target group and
willingness to pay. The pricing strategies adopted are:-
1) Competition Pricing:- They have set a price which is competitive when
compared with competitors.
2) Product Line Pricing:- Priced different products within the same product range at
different price points. The better the feature and the benefit given the greater the
consumer will pay. This form of price discrimination assists the company in
maximizing turnover and profits.
3) Bundle Pricing:- The organisation bundles a group of products at a reduced price
when providing family packs.
4) Value Pricing:- They have also used value based pricing.
Britannia has worked a lot on fixing the price of its biscuits. It has packaged its
products in various sizes and at various prices. Its biscuits ranges from Rs.10 to Rs.20.
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Cost Sheet:-
Particulars Rs.
Cost of Production
1.00
Company Profit
1.50
Packaging
0.50
Promotion
2.00
Transportation
1.00
Selling and Distribution
1.75
Cost to Distributor
7.75
Distributors Profit
0.75
Cost to Wholesaler
8.50
Wholesaler Profit
0.50
Retailer Cost
9.00
Retailer Profit
1.00
MRP 10.00
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MILESTONES ACHIEVED:-
1892 1. The Genesis - Britannia established with an investment of Rs. 295 in
Kolkata.
1910 2. Advent of electricity sees operations mechanized.
1921 3. Imported machinery introduced; Britannia becomes the first company
east of the Suez to use gas ovens.
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4. Sales rise exponentially to Rs.16,27,202 in 1939.
5. During 1944 sales ramp up by more than eight times to reach
Rs.1.36 crores.
1975 6. Britannia Biscuit Company takes over biscuit distribution from
Parry's.
1978 7. Public issue - Indian shareholding crosses 60%.
1979 8. Re-christened Britannia Industries Ltd. (BIL).
1983 9. Sales cross Rs.100 crores.
1989 10. The Executive Office relocated to Bangalore.
1992 11. BIL celebrates its Platinum Jubilee.
1993 12. Wadia Group acquires stake in ABIL, UK and becomes an equal
partner with Group Dan-one in BIL.
1994 13. Volumes cross 1,00,000 tons of biscuits .
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1997 14. Re-birth new corporate identity 'Eat Healthy, Think Better' leads to
new mission: 'Make every third Indian a Britannia consumer'.
15. BIL enters the dairy products market.
1999 16. "Britannia Khao World Cup Jao" - a major success profi t up by
37%.
2000 17. Forbes Global Ranking - Britannia among Top 300 small
companies.
2001 18. BIL ranked one of India's biggest brands.
19. No.1 food brand of the country.
20. Britannia Lagaan Match: India's most successful promotional
activity of the year.
21. Maska Chaska: India's most successful FMCG launch.
2002 22. BIL launches joint venture with Fonterra, the world's second largest
dairy company.
23. Britannia New Zealand Foods Pvt. Ltd. is born.
24. Rated as 'One amongst the Top 200 Small Companies of the
World' by Forbes Global.
25. Economic Times ranks BIL India's 2nd Most Trusted Brand.
26. Pure Magic - Winner of the World star, Asia star and India star
award for packaging.
2003 27. 'Treat Duet'- most successful launch of the year.
28. Britannia Khao World Cup Jao rocks the consumer lives yet again.
2004 29. Britannia accorded the status of being a 'Superbrand'.
30. Volumes cross 3,00,000 tons of biscuits.
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31. Good Day adds a new variant Choco-nut in its range.
2005 32. Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the
popular chant.
33. Britannia launched 'Greetings' range of premium assorted gift
packs.
34. The new plant in Uttaranchal, commissioned ahead of schedule.
35. The launch of yet another exciting snacking option - Britannia 50-50
Pepper Chakkar.
2006 36. Britannia re-launched Nutri-Choice Hi-Fibre Digestive biscuits in an
international large sized biscuit pack.
37. Britannia acquires 51% stake in Bangalore based bakery foods
retailer Daily Bread.
2007 38. Britannia industries formed a joint venture with the Khimji Ramdas
Group and acquired a 70% beneficial stake in the Dubai based
Strategic Foods International Co. LLC and 65.4% in the Oman
based Al Sallan Food Industries Co.
39. Britannia Nutri-Choice Sugar out range introduced - 1st of its kind
of biscuits to be launched in India with "No Added Sugar"
(Variants - Chocolate Cream, Orange Cream, and Lite-time).
2008 40. Britannia Nutri-Choice 5 Grain biscuits launched - Biscuits with
the goodness of 5 health cereals, and sweetened with natural honey.
Britannia Nutri-choice promised consumers "Bhook Bhagao, Kuch
Healthy Khao".
41. Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good
Day Classic Cookies' , Low Fat Dahi and renovated ' Marie-Gold'.
2009 42. Britannia launches Acti-Mind A first of its kind milk based health
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drink for kids, which helps improve mental sharpness. Launch of
Acti-Mind marked Britannia's entry into the beverage segment and
has further extended its creed of 'Eat Healthy, Think Better' to
'Drink Healthy, Think Better' as well.
43. Britannia Nutri-Choice Nature Spice Crackers launched - Your
favorite Cream Crackers, now made even more exciting with the
addition of Sabut, Ajwain and Jeera spices.
44. Britannia takes full control of Daily Bread.
45. Britannia Industries buys out New Zealand's Fonterra from
existing dairy joint venture, Britannia New Zealand Foods (BNZF).
BNZF became a 100% Britannia subsidiary and was renamed
Britannia Dairy Private Limited (BDPL).
46. Recognizing the changing global trends & health benefits of
removing trans-fats, Britannia is the first bakery brand in India to
remove trans-fats from its products.
47. Wadia Group acquired stake holdings from Group Dan-one and
becomes the single largest shareholder in BIL.
2010 48. 50-50 Maska Chaska was re-launched with a new masaaledar twist -
a delightful blend of butter and imported flavours along with
sprinkling of masala in September 2010.
49. Tiger enters the cookies category, with the launch of crunch cookies
in october. These cookies are not only high on de-light but also
high on energy and have been created keeping in mind the needs of
today's kids. These delightful cookies come in two exciting variants -
Fruit & Nut and Choco-chips and at an affordable price point
of just Rs.5.
50. Brand Nutri-Choice, in keeping with its track record of launching
differentiated healthy snacks, launched diabetic friendly essentials on
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14th
November, a day that is world over recognized as World
Diabetes Day. The range comprised of 2 variants - Oats cookies and
Ragi cookies - and is available in top Indian cities.
51. Britannia was presented the Master Brand 2010 Award by CMO
Council in November 2010.
52. Rotary Club of Chennai awarded CSR Award to Britannia in
November, for our work in nutrition.
2011 53. Always committed to constant innovation, Britannia launched
Britannia Healthy Start in Mumbai in January 2011. Specially
designed with Indian tastes in mind, Healthy Start is a complete
range of ready-to-cook breakfast mixes of Upmas, Pohas,
Porridges and Oats that are healthy, delicious, and take just 5
minutes to cook. This is the only product range in its category that
combines the natural nutrition of multi-grains, 100% real vegetables,
pulses and nuts all in one pack.
54. Britannia received the Most Respected Company Award 2011
from Business World.
55. Bourbon received the Most Popular Confectionery Product
Preferred by Youth (Biscuit) Award.
56. IMCRBNQA (Indian Merchant Chambers Ramakrishna Bajaj
National Quality Award) conferred the Manufacturing
Performance Excellence Trophy a National Quality Award for
the 2010 cycle, for Britannia Corporate Office (Bangalore),
Britannia Industries Ltd. (Rudrapur) and Sunandram Foods Pvt
Ltd (Mangaldoi, Guwahati).
57. Britannia further enhanced its foray into healthy milk based drinks
by launching Tiger-Zor Choco milk & Tiger-Zor Badam milk in
May 2011. These are delicious milk based beverages fortified with 5
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active nutrients that help in the overall development of mind and
body.
58. Britannia Bread launched its new range of Health Breads in Delhi
in November. The range consists of Honey & Oats Bread, Multi-
Grain Bread, 100% Whole Wheat Bread and Multi-Fiber Bread.
59. Delhi factory was adjudged as the winner for Outstanding
Performance in Food Safety Excellence in the category of 'Large
Food Businesses- Manufacturing', by CII. JBM Foods Pvt. Ltd.
was also recognized with Re-commendation Certificate for Strong
Commitment to Excel in the Category of 'Medium Food
Businesses- Manufacturing' for the year 2011. The awards were
given at the CII National Quality Summit held at Bangalore on
1st December 2011.
60. BRITANNIA was honoured with CREATIVE HR PRACTICES
AWARD by Employer Branding Institute India, on the occasion of
6th Employer Branding Awards ceremony held on the 10th of
December 2011 at Hotel Taj Deccan, Hyderabad.
2012 61. IMC Ramakrishna Bajaj National Quality Award 2011 was
awarded to Britannia Industries Limited, Bangalore, Bidadi, Delhi,
Gwalior & Khopoli in the manufacturing category, at the Fifteenth
IMC Ramakrishna Bajaj National Quality Awards and IMC Juran
Quality Medal ceremony held in Mumbai on 6th April 2012.
62. Britannia Industries Limited Khurda was commissioned on 17th
April 2012.
63. The Modern Trade team of Britannia was honoured with
Winner BEST BAKERY SUPPLIER award for the year 2011-
12 , at the 1st SPENCER'S Best Supplier Awards 2012 on 22nd
June.
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64. Britannia was awarded the Global Performance Excellence Award
(GPEA) by Asia Pacific Quality Organization (APQO) at the 18th
APQO International Conference on Quality in Colombo, Sri Lanka on
October 14. Britannia won this "Best in Class" award, an
international recognition for its manufacturing units and the overall
processes of performance excellence adopted by the company.
Britannia is the only Indian food and manufacturing company to
receive this award.
65. Britannia won Global award given out by 'World Quality
Congress' at their award ceremony at Mumbai held on 22nd
and
23rd
November 2012.
2013 66. On the 17th January 2013, Britannia Industries Ltd, Kolkata was
selected the winner of the GOLDEN PEACOCK NATIONAL
QUALITY AWARD for the year 2012 by the awards jury under
the chairmanship of Justice P. N. Bhagwati, former Chief Justice of
India and Member, UN Human Rights Commission.
67. Britannia was awarded "Manufacturing Supply Chain Award for
End to End Customer Solution Excellence" on 23rd
January 2013
at the Asia Manufacturing Supply Chain Summit (AMSCS) held in
Mumbai.
68. Britannia bagged two National Quality Excellence Awards for
2013 - one for Best End-to-End Customer Solution (Supply
Chain), and the second, for Planning, Processes and Systems - on
14th
February 2013 at Taj Lands End, Mumbai.
69. Britannia won the Namma Bengaluru Award for 2012, at the
award ceremony held on 16th
March 2013 in Bengaluru, in the
Corporate Social Responsibility category for initiating and
implementing Solid Waste Management.
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70. Britannia bagged the prestigious IWLF Award for 'Solid Waste
Management Project' at the International Women Leadership Forum
held in Mumbai on 25th April 2013.
PRODUCTS AVAILABLE:-
GLUCOSE BISCUITS
1) TIGER
2) CHOTA TIGER
3) TIGER CHAI BISKOOT
4) TIGER ROSEMILK CREAM
5) TIGER BRITA ENERGY POPS
6) TIGER CHOCLATE CREAM
7) TIGER ORANGE CREAM
8) TIGER COCONUT ENERGY
9) TIGER ELAICHI CREAM
10) TIGER KESAR CREAM
11) TIGER BANANA
CREAM BISCUITS
1) TREAT CHOCO GELO
2) TREAT DELICIOUS DATES
3) TREAT APPLE PUNCH
4) TREAT FLAVOURED TANGY ORANGE
5) TREAT STRAWBERRY FLAVOURED SURPRISE
6) BOURBORN TREAT
7) TREAT ELAICHI FON
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8) TREAT JIM JAM
9) TREAT MANGO MISCHIEF
10) TREAT MASTI ORANGE
11) TREAT PINEAPPLE PRANK
NUTRI CHOICE BISCUITS
1) NUTRI CHOICE 5 GRAINS
2) NUTRI CHOICE DIGESTIVE
3) NUTRI CHOICE CREAM CRACKER
4) NUTRI CHOICE THIN ARROWROOT
5) NUTRI CHOICE SUGAROUT CHOCLATE
6) NUTRI CHOICE SUGAROUT LITETIME
7) NUTRI CHOICE SUGAR OUT ORANGE CREAM
MARIE BISCUITS
1) MARIE GOLD
2) VITA MARIE GOLD
MILK BISCUITS
1) MILK BIKIS
2) MILK BIKIS CREAM
GOOD DAY BISCUITS
1) GOOD DAY CHOCONUT
2) GOOD DAY BUTTER SCOTCH
3) GOOD DAY HONEY & RAISIN
4) GOOD DAY CHOCLATE CHIP
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5) GOOD DAY RICH BUTTER COOKIES
6) GOOD DAY RICH CASHEW COOKIES
7) GOOD DAY RICH PISTA BADAM
50-50 BISCUITS
1) 50-50
2) 50-50 MASKA CHASKA
3) PEPPER CHAKKAR
LITTLE HEARTS
1) LITTLE HEARTS CLASSIC
PURE MAGIC
1) PURE MAGIC
1. 50-50:- Brand name 50-50 launched in 1993, 50-50 because of its "Hatke" taste and
youthful appeal quickly emerged as the leader of category with more than one-fourth of
market share. In 2001, the delicious Maska Chaska was launched as a variant of the
original brand and became an instant success. In 2008, 50-50 sharpened its focus on
housewives and positioned as a snack. 50-50 snacks the latest entry will give housewives
one more reason to be happy snack happy. Being aware of the needs of his consumers,
50-50 snacks comes in three unique international flavors- Italiano Pizza, Swiss cheese &
Chilly and Chinese Hot & Sweet. 50-50 snacks bridges the gap between biscuits &
snacks and tries to bring the best of many worlds - biscuits bhi Snack bhi, Sweet bhi
Spicy bhi, Baked bhi Chatapata bhi. The new product being baked and in bag format
allows guilt free snacking both in and out of home and thus making housewives "Snack
happy".
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2. GOOD DAY:- Britannia Good Day was launched in 1986 in two delectable avatars -
Good Day Cashew and Butter. Over the years, new variants were introduced - Good Day
Pista Badam in 1989, Good Day Choco-chips in 2000 and Good Day Choco-nut in 2004.
This rich cookie enjoys a fan following of consumers across all ages, loyal to the brand
promise of a great taste, evident from the visibly abundant ingredients. Good Day is
among the fastest growing brands in Britannia's portfolio and it has been the leader in
the cookies category ever since its launch. The brand is synonymous with everyday
treats that infuse happiness into people's lives. After two decades of magnificent success;
it was time to give the nation yet another reason to have a good day. Abundance ,
goodness , indulgence and now un-restrained joy that is the message of this new
campaign. The new TC ad is the un-controllable expression of the ticket collector's
happiness and joy that is stimulated by consumption of the cookie, that spreads cheer
amongst the people around him creating an atmosphere of shared joy that's un-
orchestrated and straight from the heart. The celebration was taken to the IPL as Good
day cheered along with a million cricket fans in the stadiums, each screaming and
proclaiming "Ho gaya re Good Day". The dazzling brilliance of this endeavour , the
contagious rhythm needs to be lived and spread through the nation, making 'Iska toh ho
Gaya Re Good Day' a part of the common lingo and a way of life. Good Day truly
believes laughter and happiness are infectious, it transcends race, caste creed unifying
humanity in an inclusive emotion. The brand perseveres to infuse cheer, hearten the
nation and enliven lives. With its rightful place on the front page of The Times of
India, Good Day gifts the nation a priceless treasure, that of spreading joy.
3. TIGER:- Britannia Tiger, one of the biggest brands in the kids segment, has re-
invented itself to revolutionize the concept of kids nutrition in the country. Equipped
with a new vision of leading the kids nutrition space, britannia tiger has revamped its
offerings to embody fun and energy on one hand and health and nutrition on the other.
Enriched with growth nutrients across all its variants, britannia tiger comes with the
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credo of 'Roz Badho'. Aimed at addressing every mothers concern on their kids
nutrition, britannia tiger has undergone a considerable shift in its product offering,
transforming itself into a healthier and tastier avatar. Identifying the role of biscuits as a
important component of daily food and a major carrier of nutrition, britannia tiger
fortifies itself, across categories, with growth nutrients like iron, calcium, folic acid,
vitamin A and D packed with 25% of daily growth nutrients (every 100 gms).
4. MILK BIKIS:- Milk Bikis, the favourite growth partner of kids, now brings greate r
value and delight to all with its new product and pack design. Recently re-launched in
its existing Southern & Eastern markets, and extended across India, the new milk bikis
is all set to add excitement and appeal to nutritious food. Whoever said that good food
needs to look dull and boring, will just have to take a look at milk bikis. With a
unique and attractive honeycomb design and an enhanced product experience, the new
biscuit prompts the kids will love it reaction amongst mothers. The milk goodness in
the recipe is now enhanced with smart nutrients & 4 vital vitamins, iron and iodine,
proven to aid mental and physical development in growing kids. The premium packaging,
besides appealing to kids, also ensures that the biscuits remain fresh and crisp. So
whether its breakfast time or snack time at school, rest assured that kids will look
forward to munching these crunchy, milky biscuits which even helps in their
development.
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DATA ANALYSIS AND COLLECTION:-
Britannia Annual Report 2011-12
BALANCE SHEET
Rs. in crores
As at 31 March
2012
31 March
2011
I. EQUITY AND LIABILITIES
(1) Shareholders funds
(a) Share capital 23.89 23.89
(b) Reserves and surplus 496.15 427.41
520.04 451.30
(2) Non-current liabilities
(a) Long-term borrowings 28.15 430.57
(b) Deferred tax liabilities (net) 8.16 6.24
(c) Other long-term liabilities 19.91 15.99
(d) Long-term provisions 116.82 122.68
173.04 575.48
(3) Current liabilities
(a) Trade payables 336.20 239.68
(b) Other current liabilities 518.26 119.38
(c) Short-term provisions 124.80 96.65
979.26 455.71
1,672.34 1,482.49
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II. ASSETS
(1) Non-current assets
(a) Fixed assets
(i) Tangible assets 370.63 298.68
(ii) Intangible assets 8.46 5.02
(iii) Capital work-in-progress 79.73 11.70
458.82 315.40
(b) Non-current investments 218.40 308.94
(c) Long-term loans and adv. 125.02 142.13
(d) Other non-current assets 12.12 12.12
(2) Current assets 210.54 236.06
(b) Inventories 382.28 311.20
(c) Trade receivables 52.14 57.26
(d) Cash and bank balances 30.94 28.75
(e) Short-term loans and adv. 182.08 70.63
857.98 703.90
1,672.34 1,482.49
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Britannia Annual Report 2011-12
STATEMENT OF PROFIT AND LOSS
Rs. in crores
For the year ended 31 March
2012
31 March
2011
I. Revenue From Operations
Sale of products 5,005.66 4,230.59
Less: Excise duty (58.62) (32.27)
Net sale of products 4,947.04 4,198.32
Other operating revenues 27.15 25.20
4,974.19 4,223.52
II. Other Income 58.53 48.92
III. Total Revenue (I + II) 5,032.72 4,272.44
IV. Expenses:
Raw materials including packaging
materials consumed
2,655.01 2,371.92
Purchase of stock-in-trade 529.53 410.31
Changes in inventories of finished goods,
work-in-progress and stock-in-trade
(4.79) (17.89)
Employee benefits expense 145.87 119.93
Finance costs 38.07 37.75
Depreciation and amortisation expense 47.32 44.59
Other expenses 1,369.34 1,107.77
Total Expenses 4,780.35 4,074.38
V. Profit Before Tax (III IV) 252.37 198.06
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VI. Tax Expense:
(1) Current tax
Income tax 63.71 41.52
Minimum alternative tax for earlier years - (13.91)
Income tax for earlier years - 12.34
(2) Deferred tax 1.92 12.82
VII. Profit / (Loss) For The Year (V
VI)
186.74 145.29
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Britannia Annual Report 2011-12
CASH FLOW STATEMENT
Rs. in crores
For the year ended 31 March 2012 31 March 2011
Cash Flows From Operating Activities
Profit before tax 252.37 198.06
Adjustments For:
Depreciation and amortisation 47.32 44.59
Provision / (reversal) for diminution in value
of investments, net
2.35 (1.78)
Profit on sale of investments, net (9.10) (8.66)
Profit on sale of fixed assets, net (16.40) (12.80)
Dividend income (0.19) (0.28)
Interest income (32.12) (24.84)
Interest expense 38.07 37.75
Operating Profit Before Working Capital
Changes
282.30 232.04
(Increase) / decrease in inventories (71.08) (42.86)
(Increase) / decrease in trade receivables 5.12 (17.77)
(Increase) / decrease in loans and advances
and other assets
(62.70) 72.55
(Increase) / decrease in bank balances (other
than cash and cash equivalents)
(0.88) 3.13
Increase / (decrease) in liabilities and
provisions
107.54 31.71
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28
Cash Generated From Operations 260.30 278.80
Income taxes paid, net of refund (49.64) (32.48)
Net Cash Provided By Operating Activities 210.66 246.32
Cash Flows From Investing Activities
Purchase of fixed assets ( including finance
leased assets)
(191.20) (82.35)
Proceeds from sale of fixed asset 20.14 14.64
Sale of investments, net 122.82 (43.91)
Inter-corporate deposits placed, net - (50.00)
Loans given to subsidiaries (37.96) (27.64)
Loans repaid by subsidiaries 2.27 10.23
Interest received 32.18 22.33
Dividend received 0.19 0.28
Net Cash Used In Investing Activities (51.56) (156.42)
Cash flows from financing activities
Re-payment of secured loans, net (0.83) (0.34)
Interest paid (37.66) (37.50)
Dividend paid including tax thereon (90.06) (69.55)
Net Cash Used In Financing Activities (128.55) (107.39)
Net increase in cash and cash equivalents 30.55 (17.49)
Cash and cash equivalents at the beginning of the
year
(4.36) 13.13
Cash and cash equivalents at the end of
the year (Refer note on next page)
26.19 (4.36)
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29
NOTE:-
For the year ended 31 March 2012 31 March 2011
Cash and cash equivalents at the end of
the year
26.19 24.88
Book overdraft - (29.24)
26.19 (4.36)
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30
Britannia Annual Report 2011-12
COMPARATIVE BALANCE SHEET
Rs. in crores
As at 31 March
2012
31 March
2011
Absolute
Increase or
Decrease
%
Increase
or
Decrease
I. EQUITY AND LIABILITIES
(1) Shareholders funds
(a) Share capital 23.89 23.89 NIL NIL
(b) Reserves and surplus 496.15 427.41 68.74 16.08
520.04 451.30 68.74 15.23
(2) Non-current liabilities
(a) Long-term borrowings 28.15 430.57 (402.42) (93.46)
(b) Deferred tax liabilities (net) 8.16 6.24 1.92 30.76
(c) Other long-term liabilities 19.91 15.99 3.92 24.51
(d) Long-term provisions 116.82 122.68 (5.86) (4.77)
173.04 575.48 (402.44) (69.93)
(3) Current liabilities
(a) Trade payables 336.20 239.68 96.52 40.27
(b) Other current liabilities 518.26 119.38 398.88 334.12
(c) Short-term provisions 124.80 96.65 28.15 29.12
979.26 455.71 523.55 114.88
1,672.34 1,482.49 189.85 12.80
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31
II. ASSETS
(1) Non-current assets
(a) Fixed assets
(i) Tangible assets 370.63 298.68 71.95 24.08
(ii) Intangible assets 8.46 5.02 3.44 68.52
(iii) Capital work-in-progress 79.73 11.70 68.03 581.45
458.82 315.40 143.42 45.47
(b) Non-current investments 218.40 308.94 (90.54) (29.3)
(c) Long-term loans and adv. 125.02 142.13 (17.11) (12.03)
(d) Other non-current assets 12.12 12.12 NIL NIL
(2) Current assets 210.54 236.06 (25.52) (10.8)
(b) Inventories 382.28 311.20 71.08 22.84
(c) Trade receivables 52.14 57.26 (5.12) (8.94)
(d) Cash and bank balances 30.94 28.75 2.19 7.61
(e) Short-term loans and adv. 182.08 70.63 111.45 157.79
857.98 703.90 154.08 21.88
1,672.34 1,482.49 189.85 12.80
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Britannia Annual Report 2011-12
COMPARATIVE STATEMENT OF PROFIT AND LOSS
Rs. in crores
For the year ended 31 March
2012
31 March
2011
Absolute
Increase or
Decrease
%
Increase
or
Decrease
I. Revenue From Operations
Sale of products 5,005.66 4,230.59 775.07 18.32
Less: Excise duty (58.62) (32.27) 26.35 81.65
Net sale of products 4,947.04 4,198.32 748.72 17.8
Other operating revenues 27.15 25.20 1.95 7.73
4,974.19 4,223.52 750.67 17.77
II. Other Income 58.53 48.92 9.61 19.64
III. Total Revenue (I + II) 5,032.72 4,272.44 760.28 17.79
IV. Expenses:
Raw materials including
packaging materials consumed
2,655.01 2,371.92 283.09 11.93
Purchase of stock-in-trade 529.53 410.31 119.22 29.05
Changes in inventories of
finished goods, work-in-progress
and stock-in-trade
(4.79) (17.89) (13.1) (73.22)
Employee benefits expense 145.87 119.93 25.94 21.62
Finance costs 38.07 37.75 0.32 0.84
Depreciation and amortization 47.32 44.59 2.73 6.12
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33
expense
Other expenses 1,369.34 1,107.77 261.57 23.61
Total Expenses 4,780.35 4,074.38 705.97 17.32
V. Profit Before Tax (III IV) 252.37 198.06 54.31 27.42
VI. Tax Expense:
(1) Current tax
Income tax 63.71 41.52 22.19 53.44
Minimum alternative tax for
earlier years
- (13.91) 13.91 100
Income tax for earlier
years
- 12.34 (12.34) (100)
(2) Deferred tax 1.92 12.82 (10.9) (85.02)
VII. Profit / (Loss) For The
Year (V VI)
186.74 145.29 41.45 28.52
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34
Britannia Annual Report 2011-12
SIGNIFICANT RATIOS
2011-
2012
2010-
2011
Measures of Investment
Return on Equity
Net profit
Shareholders funds
%
35.9
32.2
Earning Per Share
(NV of Rs. 2)
Net profit
Number of equity shares
Rs.
15.63
12.16
Dividend Cover
Earnings per share (Basic)
Dividend (plus tax) per share
Times
1.6
1.6
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35
Measures of
Performance
Profit Margin
Profit before tax
Revenue from operations +
Other income
%
5.0
4.6
Debtors Turnover
Sale of products
Trade receivables
Times
96.0
73.9
Stock Turnover
Sale of products
Inventories (Finished goods +
Stock-in-trade)
Times
39.2
34.8
Measures of Financial
Status
Debt Equity Ratio
Long-term borrowings + Current
maturities of long-term debt and
finance lease obligations
Shareholders funds
%
83.6
95.6
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36
Current Ratio Current assets
Current liabilities Current
maturities of long-term debt and
finance lease obligations
Times 1.5 1.5
Tax Ratio
Provision for tax
Profit before tax
%
26.0
26.6
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37
COMMENTS:-
Return on Equity Capital:- Return on equity capital ratio calculates the amount of profits
available to take care of equity dividends, transfer to reserves, etc.
1) The return on equity capital is 35.9%.
2) It indicates that on each Rs.100 of equity capital:-
a) Average net return of Rs.35.9 is earned.
b) This amount of Rs.35.9 is available for appropriation to equity shareholders.
3) There is a good scope to attract fresh funds by issue of equity shares by way of
rights or public issue.
Current Ratio:- Current ratio is a liquidity/solvency ratio which indicates the ability of
a concern to meet its short-term liability.
1) Rs.1.5 of current asset is available for each Re.1 of current liability.
2) Current ratio is constant for two financial years.
3) It shows an:-
a) Optimum liquidity/solvency position.
b) Optimum level of current asset.
c) Optimum level of trading(i.e, optimum turnover generated from the given level
of assets employed).
Debt-Equity Ratio:- Debt-equity ratio is a solvency ratio which indicates the proportion
of debt and equity in financing of the assets of the concern.
1) Debt-Equity ratio is 83.6% which means that long term loans(debts) are 83.6% of
shareholders funds.
2) It indicates that:-
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38
a) There is very satisfactory safety margin for the long term creditors.
b) More dependence on equity.
c) Ease of raising additional loans.
d) Smaller burden of fixed interest payments.
Stock Turnover Ratio:- Stock turnover ratio shows the relationship between the cost of
goods sold and the average stock.
1) Stock turnover ratio is 39.2 times which means that during the year stock was
converted into sales 39.2 times.
2) Stock Velocity will be 365/39.2 = 9.3 days which means that on an average 9.3
days production will be held by company as stock or it also means that it takes
9.3 days for the company to sell stock after it is produced.
3) Stock is sold out fast.
4) Working capital requirement is less.
Debtors Turnover Ratio:- Debtors turnover ratio shows relationship between credit sales
and debtors. Its purpose is to calculate the speed with which debtors get settled on an
average during the year and to calculate debtors velocity to indicate the period of credit
allowed to an average debtor.
1) The debtors turnover ratio is 96 times which shows that debts are being collected
at a fast speed during the year.
2) Debtors Velocity will be 365/96 = 3.48 days which shows that on an average it
takes 3.48 days to settle a debt.
3) The amount of credit given by the concern to its customer is less.
4) Less funds are blocked up in debtors and working capital.
5) There are less chances of bad debts.
6) The debtors are managed very efficiently.
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39
Profit Margin Ratio:- Profit margin ratio helps to judge how efficiently the concern is
managing all its activities of operations, financing and investment and how much amount
is available for appropriation.
1) The profit margin has increased from 4.6% to 5%.
2) All activities of the company are managed efficiently.
3) There is very good control over all cost ,i.e, operating as well as non-operating
cost.
4) A good margin is available to make appropriation.
Dividend Coverage Ratio:- Dividend coverage ratio indicates the capacity of a company
to pay dividends out of profit attributable to the shareholders.
1) The dividend coverage ratio is 1.6 times which is just above the standard ratio of
1.5 times.
2) It is constant for past two financial years which shows that company is retaining
similar portion of its earnings to meet its financial requirements.
Earning Per Share:- Earning per share calculates the amount of profits available to take
care of equity dividends, transfer to reserves, etc.
1) The earning per share has increased from Rs.12.6 to Rs.15.63 (NV is Rs.2).
2) It indicates that on each Rs.100 of equity capital:-
a) Average net return of Rs.15.63 is earned.
b) This amount of Rs.15.63 is available for appropriation to equity shareholders.
3) There is a good scope to attract fresh funds by issue of equity shares by way of
rights or public issue.
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40
Conclusion:-
Britannia Industries Limited is also a major player in the ready to eat food segment with
leadership position in bakery category. The companys plants are situated in Kolkata,
Delhi, Chennai, Mumbai, Uttarakhand, Orissa & Bihar with a capacity of 160,000 MT.
The company has transformed itself from being a primarily a biscuit company in 2008
with diversification efforts into other bakery products & dairy. Britannia made its strong
presence felt in dairy this year and recently forayed into ready to eat Indian breakfast
market & savory market. We expect this new initiative to start yielding results from
2014. Companys product categories are all growing at +15% while the overall industry
is growing at +10%. The company has over last 3-4 years done the innovations in its
product portfolio in all facets such as pricing, packaging and entry into new segments.
Innovation has been focused on growing its segments with the base of health and
nutrition. The company has over the years innovated its product portfolio so as to
command pricing premium in the market. Brand leverage has helped Britannia gain foot
hold in new segment such as chaas and healthy bread offerings. Innovation backed by
advertisement exposure to help improve growth. Britannia accelerated the nutritional drive
in the last 3-4 years and has been growing in double digits in this segment. The adults
Health and Wellness segment is growing at +20% levels and Britannia is witnessing
similar to higher growth. Approximately 50% of its revenues flow in from this health &
wellness segment.
In an increasingly challenging environment and continuing commodity inflation, Britannia
net profit has increased by 28.5% ,i.e, from Rs.145.29 crores to Rs.186.74 crores. The
company held its overall share of about one-third of the biscuit market, strengthened its
position in other bakery products like bread, cake & rusk and added Rs.775.07 crores to
sale of products, which grew 18.32%. Earnings per share of Rs.2 were Rs.15.63. In the
domestic market, competitive intensity in both bakery and dairy will continue to increase
as more players, both multinational and local companies, compete for a greater share of
the large and growing packaged food segment, of which biscuits account for the highest
share. Growth is expected to be driven through heavy investment in advertising &
promotions as well as infrastructure investments to build scale and support new
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41
introductions, both in the premium and discount segments. Also, Britannia Nutrition
Foundation continues to work on initiatives related to malnutrition in children and
women and will partner with the government, NGOs etc., to pilot and scale up
successful initiatives.
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BIBLOGRAPHY:-
1) WWW.BRITANNIA.CO.IN
2) WWW.MONEYCONTROL.COM
3) WWW.WIKIPEDIA.COM
4) WWW.BUSINESSTANDARD.COM
5) WWW.ECONOMICTIMES.COM
6) WWW.JUST-FOOD.COM