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    Company Analysis - Britannia Industries Ltd. (Jayraj Agrawal)

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    JAYRAJ AGRAWAL
    Britannia Industries Ltd is one of India's leading food companies with a market capitalization over 97,500 crores. It manufactures popular Indian brands like Good Day, Milkbikis, and Mariegold. The company has seen sales growth of 9% over the past 5 years and net profit growth of 20%. Britannia is part of the Wadia Group and the promoters hold approximately 50.55% shares while FIIs and DIIs hold around 30%. The company faces competition in biscuits from Parle and in dairy from Amul but has opportunities to expand overseas and in healthier products.

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    Company Analysis - Britannia Industries Ltd. (Jayraj Agrawal)

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    JAYRAJ AGRAWAL
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    Britannia Industries Ltd is one of India's leading food companies with a market capitalization over 97,500 crores. It manufactures popular Indian brands like Good Day, Milkbikis, and Mariegold. The company has seen sales growth of 9% over the past 5 years and net profit growth of 20%. Britannia is part of the Wadia Group and the promoters hold approximately 50.55% shares while FIIs and DIIs hold around 30%. The company faces competition in biscuits from Parle and in dairy from Amul but has opportunities to expand overseas and in healthier products.

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    Britannia Industries Ltd is one of India's leading food companies with a market capitalization over 97,500 crores. It manufactures popular Indian brands like Good Day, Milkbikis, and Mariegold. The company has seen sales growth of 9% over the past 5 years and net profit growth of 20%. Britannia is part of the Wadia Group and the promoters hold approximately 50.55% shares while FIIs and DIIs hold around 30%. The company faces competition in biscuits from Parle and in dairy from Amul but has opportunities to expand overseas and in healthier products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    40 views3 pages

    Company Analysis - Britannia Industries Ltd. (Jayraj Agrawal)

    Uploaded by

    JAYRAJ AGRAWAL
    Britannia Industries Ltd is one of India's leading food companies with a market capitalization over 97,500 crores. It manufactures popular Indian brands like Good Day, Milkbikis, and Mariegold. The company has seen sales growth of 9% over the past 5 years and net profit growth of 20%. Britannia is part of the Wadia Group and the promoters hold approximately 50.55% shares while FIIs and DIIs hold around 30%. The company faces competition in biscuits from Parle and in dairy from Amul but has opportunities to expand overseas and in healthier products.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 3

    Research Insight 1:

    Sector – Food & Beverage


    Company - Britannia Industries Ltd.

    General Overview:
    The company has a legacy of more than 100 years with a well-established dealer network and
    consumer base. It is one of the India’s leading food companies with a market capitalization of
    over 97,500 crores. It is among most trusted brand in India and manufactures India’s favourite
    brands like Good Day, Milkbikis, Nutrichoice and Mariegold which are household names in
    India. Looking at the numbers, as mentioned in the annual report, the sales have grown at a
    CAGR of 9% in the past 5 years, Net profit at a CAGR of 20% and Dividends at a CAGR of
    54%.
    Shareholding pattern of the company:
    Britannia Industries belongs to the Wadia Group, a reputed Indian Business house who has
    presence in wide range of business segments like Airlines (Go Air), Realty (Bombay Realty),
    Textiles (Bombay Dyeing) and Plantations (Bombay Burmah) and other business. The Holding
    pattern can be summed up briefly in the table below:

    Shareholder Group Shareholder Name Holding Percentage


    Promoters Associated Biscuits International Limited 44.76
    Spargo Enterprises Pte Ltd 1.16
    Valletort Enterprises Pte Ltd 1.16
    Nacupa Enterprises Pte Ltd 1.16
    Dowbiggin Enterprises Pte Ltd 1.16
    Bannatyne Enterprises Pte Ltd 1.16
    Ness Nusli Wadia 0.01
    (A) Total Promoter Holding 50.55 % (Approx.)
    FIIs 18.40
    DIIs Life Insurance Corporation of India 5.25 11.18
    General Insurance Corporation of India 1.29
    SBI Magnum Equity ESG Fund 1.27
    Others 3.37
    Public 19.87
    (B) Total Non-Promoter Holding 49.45 % (Approx.)

    Management of the company:


    The Board has an optimum mix of Executive (1), Non-Executive (3) and Independent Directors
    (8) and is headed by a Non-Executive Chairman, Mr. Nusli N Wadia. The Board of the
    Company is diverse in terms of qualification, competence, skills, and expertise which enables
    it to ensure long term value creation for all the stakeholders.
    The Board of Directors identifies themselves competent in the following domains:
    1. Leadership of large organizations
    2. Visioning and Strategic Planning
    3. Consumer Insights and Innovation
    4. Financial Management and Accounting
    5. Supply Chain Management
    6. Knowledge and expertise of Trade and Economic Policies
    7. Governance and Regulatory requirements of large Companies

    (Source: Annual Report 2020 – 2021)


    SWOT Analysis:
    1. Strengths:
    a. Legacy of more than 120 years in the industry
    b. Major market share in the biscuits segment (Approx. 30%)
    c. Most trusted brand with strong brand recall
    d. In-depth Product and Brand portfolio
    e. Strong distribution network with strong presence in rural areas

    2. Weakness:
    a. Low Overseas presence
    b. Struggling Dairy Business (Only 5% contribution to revenues)
    c. Similar products by competitors resulting in high switching of customers
    d. Over-dependence on the biscuit business (75% contribution of overall revenues)

    3. Opportunities:
    a. Expansion in overseas markets
    b. Revival and reinvention of the dairy business
    c. Product Line extension in existing segments to gain market share
    d. Change in consumer preferences for healthier products

    4. Threats:
    a. Competition in the market from players like Nestle, Parle, ITC.
    b. Increasing prices of raw materials
    c. High bargaining power of buyers can lead to brand switching
    d. Rise of local dairies and bakeries can hamper growth
    Competitive Analysis:
    The competitive analysis for Britannia can be classified into two segments:
    1. Biscuits / Bakery Segment:
    a. Parle
    b. ITC
    c. Mrs. Bectors, Creamica
    d. Local Players – Anmol, Priya Gold
    Britannia dominates this segment with approx. 30% market share but still faces intense
    competition in this segment from national as well as local players.
    2. Dairy Segment
    a. Amul
    b. Mother Dairy
    c. Horlicks
    d. Local Players and Businesses serving the dairy segment
    Britannia is struggling in the dairy segment with only 5% contribution to the overall
    revenues.
    Conclusion:
    There are ample growth opportunities for Britannia, by working on the weakness, it can tap the
    opportunities in the Dairy segment to gain significant market share in the segment. Also to
    retain its market share in the Bakery segment, it has to constantly innovate to tap into new
    markets and the trends arising therein.
    References:
    https://www.bseindia.com/bseplus/AnnualReport/500825/69500500825.pdf
    https://www.screener.in/company/BRITANNIA/consolidated/
    https://www.mbaskool.com/brandguide/food-and-beverages/3226-britannia-industries.html
    https://www.marketing91.com/swot-analysis-of-britannia/

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