How Britannia Industries is Selling Biscuits for More than 125 Years?

Star of Indian FMCG Market – Conglomerate Britannia Industries

Britannia Industries Limited is a multinational food and beverage corporation headquartered in India. The firm offers biscuits, slices of bread, and dairy goods under the Britannia and Tiger brands exported worldwide.

Tiger, Nutrichoice, Good Day, 50/50, Jim Jam, Milk Bikis, Bourbon, and Little Hearts are just a few Britannia’s biscuit brands. In comparison, their dairy products include milk, cheese, curd and bread & the firm sells dairy goods to the general public as well as trades dairy products to businesses. Today, we’ll study deep this FMCG giant and understand its business model & other things.

Britannia Success Story - Key Stats

Britannia Success Story - History

• 1892: Established by British Merchants Britannia Industry was formed in 1892 with an Rs. 295 investment by a group of British merchants. Britannia was first made in a small house in Calcutta (Kolkata) central business district. The firm was established as a public limited company on March 21, 1918.
• 1921: Service to WWII Soldiers Britannia is the first firm east of the Suez Canal to employ imported gas ovens in 1921. The business of Britannia was booming. However, Britannia was developing recognition of value and quality. As a result, the government put its faith in Britannia by contracting them to deliver enormous amounts of ‘service biscuits’ to the military soldiers during the terrible World War II.
• 1924: Mumbai Factory In the year 1924, Mumbai saw the opening of a new factory. That year, the firm became a subsidiary of Peek Frean & Company Limited UK, a prominent biscuit manufacturer, and expanded its operations in Calcutta and Mumbai, bolstering its position.
• 1952: Relocations The Kolkata plant was relocated from Dum Dum to Taratola Road in the outskirts of Kolkata in 1952. Automatic plants were established in Calcutta in the same year.
• 1965: Delhi Bread Factory The firm began developing high-quality sliced and wrapped bread in India, initially produced in Delhi in 1954. Later in 1965, a new bread bakery was established in Delhi, and 1976, Britannia bread was first launched in Chennai and Kolkata.
• 1978: Stock Market IPO In 1978, Britannia launched their IPO, with Indian shareholders increased to 62%. From Britannia Biscuit Company Limited to Britannia Industries Limited, the company changed its name in 1979.

Britannia Success Story - Growth and Market Share

• Britannia has a market share of around 38% and is hugely profitable.
• The Brand Trust Report lists Britannia as one of India’s 100 Most Trusted Brands.
• In March 2021, the company reported revenue of 13,136 Crores INR (13.24% Year on Year), whereas 32.86% growth in net profit year over year.

Britannia Success Story – Tagline & USP

• Tagline: For a long time, the company’s motto has been “Eat healthier, think better,” making it one of the most trusted brands in the country. The brand’s tagline has just been updated, and it now reads “Zindagi Mei Life.” Britannia aspires to become a whole foods firm, introducing new goods such as wafers and croissants and expanding into other sectors.
• USP: Britannia’s USP is “India’s very own bakery and dairy products brand that is trusted for its quality.”

Britannia Success Story – Mission & Vision

• Mission: Throughout the portfolios, we emphasise eating healthy, fresh, and delicious food.
• Vision: We inspire our employees to collaborate in cross-functional groups to exchange information.

Britannia Success Story – Business Model & Financial Data

Bakery products and dairy products are the company’s two main business divisions. The biscuits section generates 95% of the company’s revenue, with the non-biscuits category (dairy) and international market accounting for 5% of overall sales.

Britannia dairy products are sold directly to 1 Lac outlets, and the company’s dairy sector provides close to 5% of sales. With Rs. 450 crores in value & an annual turnover of over 1 lac tons in volume, Britannia Bread is the leading brand in the structured bread industry. The company has 13 facilities and four franchisees that sell almost one million each day across India.

Britannia Success Story - Major Competitors

• Parle Products Ltd
• Nestle Ltd.
• Amul
• Mother Dairy

Britannia Success Story - Future Plans

• Britannia, the maker of Good Day and Tiger Biscuits, now plans to invest a total of over 1,000 crores over the next two years, including a total of 700 crores for greenfield facilities
• Scaling up capacities of core products and another 300 crores for new launches, including dairy, according to Varun Berry, Managing Director, Britannia
• Demand for packaged foods, especially cookies, has outpaced manufacturing capacity, according to Britannia Industries, which plans to spend Rs 700 crore in new plants.

Britannia Success Story - Controversy

Rajan Pillai, a Kerala businessman, took control of the company in the late 1980s and earned the moniker “Biscuit Raja” in India. In 1993, the Wadia Group bought a share in Associated Biscuits International (ABIL) and joined Groupe Danone in Britannia Industries Limited as an equal partner. Pillai surrendered power to Wadia and Danone following a heated boardroom battle, then fled to India in 1995 amid charges of defrauding Britannia, where he died the same year in Tihar Jail.

Britannia Success Story – Investments & Acquisitions

• Fonterra Brands: Britannia Industries, India’s largest processed food firm, has agreed to buy Fonterra Brands (Mauritius Holding) Ltd of Mauritius’ 49 percent equity and preference interest in Britannia New Zealand Foods Private Ltd (BNZF), its joint venture company in the dairy industry. The Reserve Bank of India must approve this transaction.
• Strategic Foods International LLC: In March 2007, the firm and its partners bought a controlling share in Strategic Foods International LLC, Dubai, and Al Sallan Food Industries, Oman.

Britannia Industries – Star of Indian FMCG

Britannia Industries, the star of the Indian FMCG pack of late, believes the biggest challenge in the coming year is increasing customer demand. In recent quarters, FMCG firms, in general, have reported disappointing performance. However, the biscuit maker’s results exceeded expectations, with profit margins reaching new highs in the previous two quarters.