Term Paper FM
Term Paper FM
Term Paper FM
Submitted To :- Submitted By :-
Reg.No. 10808662
MCA-IInd
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, happily
ever after.
MILESTONES :-
1892 The Genesis - Britannia established with an
investment of Rs. 295 in Kolkata
1910 Advent of electricity sees operations mechanised
1921 Imported machinery introduced; Britannia becomes
the first company East of the Suez to use gas ovens
1939 -Sales rise exponentially to Rs.16,27,202 in 1939
44
During 1944 sales ramp up by more than eight times
to reach Rs.1.36 crore
1975 Britannia Biscuit Company takes over biscuit
distribution from Parry's
1978 Public issue - Indian shareholding crosses 60%
1979 Re-christened Britannia Industries Ltd. (BIL)
1983 Sales cross Rs.100 crore
1989 The Executive Office relocated to Bangalore
1992 BIL celebrates its Platinum Jubilee
1993 Wadia Group acquires stake in ABIL, UK and
becomes an equal partner with Groupe Danone in
BIL
1994 Volumes cross 1,00,000 tons of biscuits
1997 Re-birth - new corporate identity 'Eat Healthy, Think
Better' leads to new mission: 'Make every third
Indian a Britannia consumer'
BIL enters the dairy products market
1999 "Britannia Khao World Cup Jao" - a major success!
Profit up by 37%
2000 Forbes Global Ranking - Britannia among Top 300
small companies
2001 BIL ranked one of India's biggest brands
No.1 food brand of the country
Britannia Lagaan Match: India's most successful
promotional activity of the year
Maska Chaska: India's most successful FMCG launch
2002 BIL launches joint venture with Fonterra, the world's
second largest dairy company
Britannia New Zealand Foods Pvt. Ltd. is born
Rated as 'One amongst the Top 200 Small Companies
of the World' by Forbes Global
Economic Times ranks BIL India's 2nd Most Trusted
Brand
Pure Magic -Winner of the Worldstar, Asiastar and
Indiastar award for packaging
2003 'Treat Duet'- most successful launch of the year
Britannia Khao World Cup Jao rocks the consumer
lives yet again
2004 Britannia accorded the status of being a 'Superbrand'
Volumes cross 3,00,000 tons of biscuits
Good Day adds a new variant - Choconut - in its
range
Thus, the new logo was born, encapsulating the core essence of
Britannia - healthy, nutritious, optimistic - and combining it
with a delightful product range to offer variety and choice to
consumers.
1996 40.00
1997 40.00
1998 50.00
1999 55.00
2000 45.00
2001 55.00
2002 75.00
2003 100.00
2004 110.00
2005 140.00
2006 150.00
2007 150.00
2008 180.00
Bonus History
SHAREHOLDING PATTERN ;-
31st March 2009
31st December 2008
30th September 2008
30th June 2008
31st March 2008
31st December 2007
30th September 2007
30th June 2007
31st March 2007
31st December 2006
30th September 2006
30th June 2006
31st March 2006
31st December
2005
FINANCIAL PERFORMANCE:-
For the year ended 31st March 2008, the Company achieved a
sales growth of 17.5% on an expanded base arising from 27.5%
growth in the previous year. Net Profit of the Company
increased 77.5 % to Rs 1,910 Mn compared with Rs 1,076 Mn in
2006-07. Operating Margin increased by 307 basis points to
7.5%.
SIGNIFICANT RATIOS
2007- 2006-
08 07
Measures of
Investment
Return on equity Profit after tax % 26.1 18.3
Shareholders’ funds
Book value per
Shareholders' funds Rs. 306.6 246.6
share
Number of equity
shares
Dividend cover Earnings per share times3.8 2.6
Dividend (plus tax) per
share
Measures of
Performance
Profit before tax &
Profit margin % 9.2 5.7
exceptional item
Net Sales + Other
Income
Debtors turnover Gross Sales times56.5 81.0
Debtors + Bills
receivable
Stock turnover Gross Sales times8.7 10.8
Stock
Measures of
Financial Status
Debt ratio Borrowed capital % 14.5 0.8
Shareholders’ funds
Current ratio Current assets times1.6 1.2
Current liabilities
Tax ratio Tax provision % 17.8 9.1
Profit before tax
As at / Year
ended 31st 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
March
Assets
employed
Fixed assets 1,353 1,306 1,588 1,632 1,481 1,283 1,338 1,516 2,144 2,507
less
Depreciation
&
Amortisation
Investments 1,293 1,470 2,156 3,104 2,969 2,913 3,301 3,599 3,200 3,808
Net current
18 65 257 592 747 43 (485) 309 596 2,072
assets
Miscellaneous
- 122 163 217 260 463 342 161 256 232
expenditure
2,664 2,963 4,164 5,545 5,457 4,702 4,496 5,585 6,196 8,619
Financed by
Equity shares 186 279 279 269 259 251 239 239 239 239
Reserves &
1,308 1,586 2,123 3,430 3,653 4,059 4,196 5,252 5,909 7,319
Surplus
Loan funds 1,170 1,098 1,762 1,846 1,545 392 61 94 48 1,061
2,664 2,963 4,164 5,545 5,457 4,702 4,496 5,585 6,196 8,619
Profits and
appropriations
Sales 10,30111,69813,32514,51013,49114,70516,15418,17923,17126,177
Profit before
Depreciation,
735 962 1,369 1,630 1,722 2,251 2,645 2,218 1514 2,723
Amortisation
and Tax
Depreciation 159 172 189 240 261 224 190 217 253 291
and
Amortisation
Profit before
tax and
576 790 1,180 1,390 1,461 2,027 2,455 2,001 1,261 2,432
Exceptional
items
Exceptional
- (19) (41) 1,201 12 (183) (252) 6 (77) (109)
items
Profit before
576 771 1,139 2,591 1,473 1,844 2,203 2,007 1,184 2,323
tax *
Taxation 180 261 434 559 482 656 715 543 108 413
Profit after
396 510 705 2,032 991 1,188 1,488 1,464 1,076 1,910
tax
Dividends 102 125 153 201 251 272 334 358 358 430
Tax on
11 14 16 - 32 35 47 50 61 73
dividend
Debenture
Redemption - - 47 14 18 - - - - -
Reserve
Retained
283 371 489 1,564 692 910 1,117 1,056 657 1,407
earnings
Financial highlights
2008 2007
In $ In $
Taxation
(230,325) (85,639) (39,495) (21,492) (13,077)
Profit after 516,467 223,340 139,568 86,010 54,554
taxation
Dividends
– – (49,924) (25,500) (20,500)
Retained in 516,467 223,340 89,644 60,510 34,054
the
business
Earnings 2.8p 1.6p N/a N/a N/a
per share
Assets
employed
Tangible
fixed 124,356 115,533 59,198 49,364 31,894
assets
Stocks and
8,843,687 4,372,669 1,486,713 662,728 196,430
debtors
Creditors
and (441,625) (199,437) (175,132) (178,500) (116,091)
provisions
Total 8,526,41 4,288,765 1,370,779 533,592 112,233
8
Funds
employed
Share
1,841,767 857,903 210,610 120,966 60,456
capital and
reserves 6,684,651 3,430,862 1,160,169 412,626 51,777
Net debt
Taxation on profit on
ordinary activities (230,325) (85,639)
In $ In $
FIXED ASSETS
Stocks – 4,187
Convertible unsecured
loan notes 2011 (303,750) –
PROVISIONS FOR
LIABILITIES AND
CHARGES
(14,000) (3,586)
Deferred tax
NET ASSETS 1,841,767 857,903
CAPITAL AND RESERVES
22,733 –
CREDITORS
Convertible unsecured
loan notes 2011
(303,750) –
TOTAL ASSETS LESS
CURRENT LIABILITIES
939,323 528,080
CAPITAL AND RESERVES
In $ In $
Net cash outflow from
operating activities
(3,247,020) (2,427,408)
Returns on investments
and servicing of finance
(338,402) (142,115)
Taxation
(91,367) (36,762)
Capital expenditure
(44,397) (10,262)
Financing 2
– Share issue 467,397 423,953
– Debt financing –
(1,319,373) 1,935,970
(decrease) increase
Increase/(Decrease) in
cash in the year
(4,269,412) (256,624)
Reconciliation of net cash
flow to movement in net
debt
(4,269,412) (256,624)
Increase/(Decrease) in
cash in the year
In $ In $
1 RECONCILIATION OF OPERATING
PROFIT TO NET CASH OUTFLOW
Operating profit
1,085,194 451,094
Depreciation charges
34,974 27,550
Loss on disposal of fixed assets
600 4,476
Decrease/(increase) in stocks
4,187 (4,187)
Increase in debtors
(4,475,205) (2,881,769)
Increase/(decrease) in creditors
103,230 (24,572)
Net cash outflow from operating
activities
(3,247,020) (2,427,408)
2 ANALYSIS OF CASH FLOWS FOR
HEADINGS NETTED
Interest received
(335,466) (139,726)
Interest paid
(3,039) (2,748)
3,000 4,000
(325,792) (4,550,866) –
(303,419) (4,269,412) –
Debt:
Depreciation
17,277 11,241
– owned assets
17,697 16,309
– assets on hire purchase
600 4,476
contracts
52,694 41,362
Loss on disposal of fixed
assets 177,520 185,175
Other services
Exceptional item –
commission clawback
2 DIRECTORS AND
EMPLOYEES
Staff costs
Wages and salaries 735,851 615,566
Bank interest
22,082 3,183
Bank loan interest
313,384 136,543
Hire purchase loans
3,039 2,748
338,505 142,474
5 TAXATION
Current tax:
Deferred tax:
53,085 70,783
Depreciation charged in the year 17,697 16,309
10 DEBTORS
Amounts falling due
within one year:
Trade debtors
Prepayments and
accrued income
321,664 –
Total 5,910,808 2,690,884
11 LOAN CAPITAL
AND OTHER
BORROWINGS
Secured borrowings:
Bank loans
1,765,338 3,065,765
Bank overdrafts
4,876,658 325,792
Hire purchase contracts
42,732 61,678
Total 6,684,728 3,453,235
Hire purchase contracts
comprise:
Gross obligations
(6,738) (9,764)
Total 42,732 61,678
Finance charges fall
due:
Within one year 2,822 3,039
GLOBLE PARTNERS :-
The Wadia Group of India along with Groupe Danone of France, are equal
shareholders in ABIL, UK which is a major shareholder in Britannia Industries
Limited. GROUPE DANONE is an International FMCG Major specializing in Fresh
Dairy Products, Bottled Water and Biscuits/Cereals. One of the World leaders in
the food industry, these are some of the laurels it possesses:
Through its three core businesses (Fresh Dairy Products, Beverages and Biscuits
and Cereal Products), GROUPE DANONE is committed to improving the lives of
people around the world by providing them with better food products, a wider
variety of flavors and healthier pleasures. Its dominant position worldwide is
based on major international brands and on its solid presence in local markets
(about 70% of global sales come from brands that are local market leaders).
GROUPE DANONE is recognized for the dynamism and strength of its brands:
Danone: the leading brand worldwide for Fresh Dairy Products; DANONE
represents almost 20% of the international market.
Evian: the best selling mineral water brand, with 1.5 billion bottles sold every
year. Present in the 5 continents, in 125 countries.
LU: the second brand worldwide, the first biscuits brand of GROUPE DANONE,
which represents almost the half of the sales for the Biscuits and Cereal Products
division. LU is mainly present in Western Europe.
Wahaha: the leading brand for refreshing still water (water, ready made tea, fruit
juices). The brand is one of the most popular in China, with more than 1.5 billion
liters of water sold each year. Its name means "the child who laughs".
Financial results:
The Company witnessed all round growth in key categories with Biscuits recording
sales of Rs. 23,299 Mn. Bread, Cake and Rusk business crossed the Rs. 2,700 Mn
mark during 2007-08. This business has doubled in two years.
The Company introduced several new and renovated offerings in Tiger, Good Day,
Treat and MarieGold. The health and nutrition platform was buttressed by Tiger
Banana with ³iron-zor², fortified Milk Bikis, renovated MarieGold and Nutrichoice
Digestive. To tap the more indulgent consumers, your Company launched Good
Day Classic Cookies, while continuing to roll out individual consumption packs at
the highly affordable Rs. 5 price point.
The Bread, Cake and Rusk portfolio was strengthened with the successful
relaunch of Breads, fortified with vitamins and minerals, positioning them firmly
as the healthy start to your day. This innovation combined with relevant
consumer activation in key markets has seen a 30%+ growth in the Bread, Cake
and Rusk business.
In March 2007, Britannia Industries Limited formed a Joint Venture with the
Khimji Ramdas Group, one of the largest and the most respected business
conglomerates in the Middle East. Britannia and its Associates have acquired a
significant stake in Dubai based Strategic Food International Co. LLC and Oman
based Al Sallan Food Industries Co SAOG. The two companies are key regional
players in the biscuits, wafers and cookies segment in the GCC markets and export
their products across the world.
Strategic Food International Co. LLC (SFIC) is one of the largest biscuit and wafer
manufacturing companies in the Middle East. An ISO and HACCP certified
company, SFIC is also a proud winner of the Dubai Quality Appreciation
Certificate. It offers a wide spectrum of products under the brand Nutro, which is
a leading biscuit brand in the Middle East.
Al Sallan Food Industries Co is one of the foremost companies for the production
of cookies, rolls and chocolates. The products are well known under the brand
name of Baker's Pride.
INVESTORRELATIONS@BRITINDIA.COM
Board of Directors :-
Designation
Name
Mr. Nusli Neville Wadia Chairman
Ms. Vinita Bali Managing Director
Mr. Keki Dadiseth Director
Mr. Avijit Deb Director
Mr. A.K.Hirjee Director
Mr. Nimesh N Kampani Director
Mr. S.S.Kelkar Director
Mr. Pratap Khanna Director
Mr. Jeh N Wadia Director
Management Team:-
References:-
1. Official website of Britannia Co.
“http://www.britannia.co.in