Mission Statement, Vision, & Core Values (2024) of Britannia Industries Limited

A Brief History of Britannia Industries Limited

Established in 1892, Britannia Industries Limited has grown to become one of India’s leading food companies, specializing in baked goods and dairy products. The company was founded by a group of British and Indian entrepreneurs in Kolkata, originally focusing on biscuits and bread.

In the early 20th century, Britannia introduced several products that contributed to its growth. Noteworthy milestones include the launch of its iconic Britannia Marie Gold in 1959, which has since become one of the best-selling biscuits in the country. By 1979, Britannia had transitioned from a British-owned entity to becoming publicly traded on the Indian stock exchanges.

As of the financial year 2022-2023, Britannia Industries reported a revenue of approximately ₹ 15,240 crores (approximately USD 1.8 billion), marking a significant increase from ₹ 14,523 crores in FY 2021-2022.

The company has consistently focused on innovation and expansion. In recent years, it ventured into new product categories, including healthy snacks and dairy items. For instance, the launch of the ‘Nutri Choice’ range in 2005 targeted health-conscious consumers.

Britannia's market strategy has resulted in a robust presence across various segments. As of 2023, its product portfolio includes over 1,200 products, catering to diverse consumer needs across biscuits, bread, cakes, and dairy. The company's brands, such as Good Day, Jim Jam, and Treat, dominate their respective categories.

Table 1 below illustrates key financial metrics for Britannia Industries over the past few financial years:

Britannia’s growth trajectory has been supported by its strong distribution network, covering over 5 million outlets across India. The company has also made strides in e-commerce, significantly increasing its online sales channels in response to changing consumer behavior, especially during the COVID-19 pandemic.

In a bid for sustainability, Britannia has committed to reducing its carbon footprint and has undertaken multiple initiatives, such as using recyclable packaging for its products and optimizing manufacturing processes for energy efficiency.

As of October 2023, Britannia's stock is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The stock has shown resilience, trading around ₹ 4,500 per share, reflecting a strong market position despite economic headwinds. The company's market capitalization stands at approximately ₹ 1.25 lakh crores.

Britannia Industries Limited continues to enhance its brand presence, with investments in advertising and marketing reaching approximately ₹ 1,200 crores in 2022. The company’s long-term strategy remains focused on product innovation, market expansion, and leveraging digital platforms to reach a broader audience.

A Who Owns Britannia Industries Limited

Brittania Industries Limited, a leading player in the Indian food processing sector, has a diverse ownership structure that includes prominent institutional and retail investors. As of the latest data available, the company’s ownership can be broken down as follows:

The promoter group, led by the B. M. Khaitan family, holds a significant portion of the shares. This stable ownership structure is crucial for the company's strategic direction and operational flexibility.

As of the latest quarter, Britannia reported total equity shares of approximately 118.9 million shares outstanding. The promoter holding translates to about 60.1 million shares. In recent years, the company has seen an increase in foreign investment, with FIIs holding approximately 25.92 million shares. The institutional investor space is dominated by large mutual funds and insurance companies, underscoring investor confidence in Britannia's growth trajectory.

Notably, Britannia’s stock performance has been impressive, with the share price hovering around ₹4,200 as of October 2023. This represents a growth of approximately 15% year-to-date. The market capitalization of Britannia Industries Limited stands at around ₹500 billion.

The recent financial results for the second quarter of FY2024 indicated a revenue growth of 8%, reaching ₹40.3 billion. Net profit also showed a solid performance, increasing by 12% to ₹5.2 billion. The company continues to expand its product portfolio, which has positively impacted its market presence and financial health.

According to the latest shareholding pattern, retail investors have also shown growing interest, contributing to a more balanced ownership structure within the company. Despite the competition in the food and beverage sector, Britannia’s brand equity and market strategies have allowed it to maintain a leading edge.

Overall, the diverse ownership base, coupled with strong financial performance, positions Britannia as a robust entity in the Indian market landscape.

Britannia Industries Limited Mission Statement

Britannia Industries Limited is one of India’s leading food companies, primarily known for its baked goods, dairy products, and snacks. The company's mission statement emphasizes the commitment to quality, innovation, and customer satisfaction.

The mission is succinctly captured in the phrase: "To be the most trusted and preferred brand of food products." This reflects a focus on establishing long-lasting relationships with consumers through quality and reliability.

In terms of market positioning, Britannia Industries aims to achieve exponential growth while ensuring the highest standards of quality in its product offerings. The company operates under several key principles aligned with its mission:

• Commitment to quality and safety in all products.
• Continuous innovation to meet changing consumer preferences.
• Environmental sustainability in production and packaging processes.
• Investment in human resources for excellence in operations.

As of the latest financial reports for FY 2022-23, Britannia Industries has demonstrated substantial growth metrics that align with its mission. The following table highlights key financial figures that showcase the company’s performance:

Britannia's efforts are also reflected in its commitment to innovation, with substantial investment directed toward research and development. For instance, the company allocated approximately ₹ 250 Crores in FY 2022-23 toward R&D initiatives aimed at product diversification and enhancement of existing offerings.

Moreover, their dedication to sustainability can be observed in their packaging initiatives. Britannia has pledged to make all its packaging recyclable or reusable by 2025, aligning with global sustainability trends. As part of its mission, the company recognizes the importance of social responsibility, contributing to community development and support programs.

Through these strategic initiatives, Britannia Industries Limited continues to strengthen its brand positioning and fulfill its mission of being a trusted food brand in India. The focus remains on delivering exceptional quality while catering to the evolving needs of consumers across diverse demographics.

How Britannia Industries Limited Works

Brittania Industries Limited, established in 1892, is one of India's leading food companies, primarily involved in the manufacture of biscuits, bread, and dairy products. The company's operations are extensive and span multiple segments of the food industry.

As of the fiscal year ended March 2023, Britannia reported a consolidated revenue of ₹14,916 crores, representing a year-on-year growth of 17%. The net profit for the same period stood at ₹2,067 crores, with a profit margin of 13.9%.

Product Categories

• Biscuits
• Breads
• Dairy Products
• Cakes
• Snacks
• Other Bakery Products

Biscuits account for the largest portion of the company’s sales, contributing approximately 75% to the total revenue. The flagship brand, Good Day, remains a market leader in the organized biscuit segment.

Market Presence

Brittania operates in over 100 countries and has a robust distribution network comprising approximately 6 million retail outlets. The company boasts significant market shares in key categories such as:

Financial Performance

In terms of financial health, Britannia reported a return on equity (ROE) of 21.1% and a debt-to-equity ratio of 0.20 as of the end of FY 2023, indicating a strong balance sheet and low leverage.

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) for FY 2023 stood at ₹3,133 crores with an EBITDA margin of 21%. The operating cash flow for the same period was ₹2,580 crores, showcasing strong liquidity.

Recent Developments and Innovations

Britannia has focused heavily on innovation and sustainability initiatives. The launch of new products like NutriChoice Immuno Boosting biscuits aligns with current health trends. The company has also committed to reducing packaging waste by 50% by 2025.

Stock Performance

As of October 2023, Britannia's stock is trading at around ₹4,800 per share, with a year-to-date return of 8%. The company's market capitalization is approximately ₹60,000 crores.

The price-to-earnings (P/E) ratio stands at 36.8, reflecting investor confidence in the company's growth prospects and consistent performance despite market volatility.

Conclusion

Overall, Britannia Industries Limited operates with a diversified product portfolio, strong financial metrics, and a strategic focus on innovation and market expansion. This positions the company favorably in the competitive food industry landscape.

How Britannia Industries Limited Makes Money

Brittania Industries Limited is a leading player in the Indian food industry, primarily known for its biscuits, breads, and dairy products. As of the financial year 2022-2023, the company's revenue stood at approximately ₹14,463 crores, indicating a robust growth trajectory.

Product Segmentation

The company's revenue stream is diversified across various product segments. The biscuits segment constitutes a significant portion of total revenue, accounting for about 70% of sales. Other major segments include:

• Breads: Approximately 10% of revenue
• Dairy Products: Contributing around 8%
• Other Snacks: Roughly 12%

Market Reach and Distribution

Brittania operates through a vast distribution network that includes over 6 million outlets across India. This extensive reach ensures that the brand is readily available, contributing to higher sales volumes. The company has also expanded its presence internationally, exporting to more than 60 countries.

Financial Performance Overview

Revenue Growth Drivers

Brittania's revenue growth can be attributed to several key drivers:

• Product Innovation: The company continuously introduces new variants and flavors. Recent launches include health-oriented products, addressing the growing demand for nutritious options.
• Brand Strength: With a strong legacy and a trusted brand name, Britannia enjoys customer loyalty, which translates to repeat purchases.
• Marketing Strategies: Aggressive advertising campaigns and promotional activities have bolstered brand visibility, resulting in increased market share.
• Supply Chain Optimization: Enhanced logistics and supply chain efficiency have reduced costs, allowing for competitive pricing.

Challenges and Competitive Landscape

Britannia faces challenges such as fluctuations in raw material prices and intense competition from both domestic and international players. Companies like Parle and ITC have emerged as formidable competitors in the snacks and biscuit segments. However, Britannia's robust brand equity helps maintain its market position.

Future Outlook

Looking ahead, Britannia aims to achieve a revenue target of ₹20,000 crores by the financial year 2025. The company plans to expand its product portfolio and deepen its penetration in untapped markets, particularly in rural areas.