Profitability of Britannia Industries Limited”
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FINAL YEAR BBA(H) STUDY PAPER ON “PROFITABILITY OF BRITANNIA INDUSTRIES LIMITED” SUBMITTED BY: GROUP MEMBERS SUBHAJIT BHATTACHARYA (Roll: 15405015050) SUSHMITA SAHA (Roll: 15405015061) PRITAM DASGUPTA (Roll: 15405015023) RADHIKA DUTTAGUPTA (Roll: 15405015025) STREAM- BBA (H) YEAR- 3rd (THIRD) SEMESTER – 6th (SIXTH) SESSION- 2015-2018 COLLEGE- DINABANDHU ANDREWS INSTITUTE OF TECHNOLOGY AND MANAGEMENT UNIVERSITY- MAULANA ABUL KALAM AZAD UNIVERSITY OF TECHNOLOGY, WEST BENGAL INDEX TOPICS PAGE NUMBER INTRODUCTION 03 OBJECTIVES 04 SIGNIFICANCE OF 04 OBJECTIVES COMPANY PROFILE 04 BOARD OF DIRECTORS 07 PRODUCT LINE 08 THEORITICAL 20 FRAMEWORK RESEARCH METHODOLOGY 35 FINDINGS 36 SUGGESTION 44 CONCLUSION 45 BIBLIOGRAPHY 45 ANNEXURE 46 INTRODUCTION This project is all about analysis of profitability of Britannia Industries Ltd. for last five years (2013-2017) through ratio analysis, where we have analysed company’s profitability & its impact to the business. Here, we have estimated the profitability of the company through changes in gross profit ratio, net profit ratio, operating profit ratio, net worth ratio & return on long term fund ratio. OBJECTIVES The objectives for this project are as follows: i) To enumerate the profitability of Britannia Industries ltd. through profitability ratio analysis. ii) To formulate some specific suggestion from the ratio analysis for the growth of Britannia Industries ltd. SIGNIFICANCE OF OBJECTIVES • Measuring the profitability: Profitability is the profit earning capacity of the business. This can be measured by Gross Profit, Net Profit, Expenses and Other Ratios. If these ratios fall we can take corrective measures. • Facilitating comparative analysis: Present performance can be compared with past performance to discover the plus and minus points. Comparison with the performance of other competitive firms can also be made. • Budgeting and forecasting: Ratio analysis is of much help in financial forecasting and planning. Ratios calculated for a number of years work as a guide for the future. Meaningful conclusions can be drawn for future from these ratios. COMPANY PROFILE Britannia Industries is one of India’s leading food companies with a 100 year legacy and annual revenues in excess of Rs. 9000 Cr. Britannia is among the most trusted food brands, and manufactures India’s favorite brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold which are household names in India. Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy products including Cheese, Beverages, Milk and Yoghurt. The company was established in 1892, with an investment of ₹265.[4] Initially, biscuits were manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the Gupta brothers mainly Nalin Chandra Gupta, an attorney, and operated under V.K 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 high demand during World War II, which gave a boost to the company’s sales. The company name was changed to the current "Britannia Industries Limited" in 1979. In 1982 the American company Nabisco Brands, Inc. acquired the parent of Peek Freans and became a major foreign shareholder. Britannia products are available across the country in close to 5 million retail outlets and have reached over 50% of Indian homes.The company’s Dairy business contributes close to 5 per cent of revenue and Britannia dairy products directly reach 100,000 outlets. Britannia Bread is the largest brand in the organized bread market with an annual turnover of over 1 lakh tons in volume and Rs.450 crores in value. The business operates with 13 factories and 4 franchisees selling close to 1 million loaves daily across more than 100 cities and towns of India. They have a presence in more than 60 countries across the globe. Their international footprint includes presence in Middle East through local manufacturing in UAE and Oman, they are the No 2 biscuit player in UAE with a strong contention to leadership and has a similarly strong market position in the other GCC countries. They are also the market leaders in Nepal and are in the process of investing a manufacturing facility in the country. Britannia takes pride in having stayed true to its credo, ‘Eat Healthy, Think Better’. Having removed over 8500 tonnes of Trans Fats from products, Britannia became India’s first Zero Trans Fat Company. Over 50% of the Company’s portfolio is enriched with essential micro- nutrients which nourish the body. The company has set up the Britannia Nutrition Foundation in 2009, and began working on public private partnership to address malnutrition amongst under- privileged children and women. Their relentless focus on quality and freshness haswon them prestigious accolades including the Golden Peacock National Quality Award and the Ramakrishna Bajaj National Quality Award. However, the award that they cherish the most is the one given by theconsumers. Britannia is recognized as one of the most trusted, valuable and popular brands among Indian consumers in various reputed surveys. BOARD OF DIRECTORS NUSLI N WADIA Chairman VARUN BERRY Managing Director A.K. HIRJEE Promoter Non-Executive Director AVIJIT DEB Non Executive Independent Director S S KELKAR Non Executive Independent Director NIMESH N KAMPANI Non Executive Independent Director JEH N WADIA Promoter Non Executive Director KEKI DADISETH Non Executive Independent Director DR. AJAI PURI Non Executive Independent Director NESS N WADIA Director PRODUCT LINE The product line of Britannia Industries Ltd. Includes: ✓ Biscuits ✓ Breads ✓ Dairy ✓ Rusk ✓ Cakes ✓ Biscuits: i. Good Day: It’s a Smile that makes it a Good Day! The smaller joys of life that can brighten up one’s life everyday often get ignored in the pursuit of larger joys. With its tagline of “Har cookie mein kayi Smiles.” Good Day will act as an enabler in enjoying all those small moments in everyday life! In its brand new tastier avatar, Britannia Good Day brings alive its philosophy of Smiles through its new Logo, packaging and cookie, the New Good Day cookie comes with a smiley design on it as well! ii. NutriChoice: Britannia NutriChoice is one of India’s leading health brands today, changing the way Indians think, feel and behave about health and healthy living. NutriChoice provides a range of ‘power packed’ snacks specially created for people who seek a healthy way of life. NutriChoice Oat cookies made with crunchy Almonds and zesty Oranges, a delicious new way to have Oats. iii. Marie Gold: Tea times are incomplete without a packet of Britannia Marie biscuits. As today’s woman packs in more each day while caring for her family, these low fat and zero cholesterol biscuits are her tea time mates. Each Marie Gold biscuit is crisp and light, and is packed with the goodness of Vitamins and Minerals that make for healthier teatimes. iv. Tiger: Britannia Tiger has created biscuits which are high in nutrition, and great in taste. A delicious biscuit, fortified with 25% Daily Growth Nutrients like Iron, Calcium and Vitamins, help moms keep their little Tigers strong and roaring. v. Jim Jam+Treat: In 2002, Britannia lovingly baked a Treat for little pranksters. An irresistible range of yummy, creamy biscuits to fuel their tricks. Its lip-smacking flavours, cool shapes and soft cream famous with the kids and in the market. Jimmy and Jammy come together to give you a twin Treat of Masti Cream and Naughty Jam in a pack of Treat Jim Jam. The combo of thick vanilla or cunning chocolate cream sandwiched between crisp biscuits, topped with a dollop of Jam and sugar crystals, makes Jim Jam the king of the Treat range. vi. Bourbon: Britannia Bourbon is all about showing off your wickedly smooth side. It has always been the chocolate lover’s favourite guilt trip. One bite of this smooth, luscious chocolate cream enveloped in crunchy, sugary chocolate biscuit and the smooth operator in you will be unleashed! Other biscuit products of Britannia Industries Ltd. Include: vii. Milk Bikis: viii. Crackers: ix. Little Hearts: x. Pure Magic: xi. Nice Time: ✓ Breads: i.Daily Breads: Made from hand-picked ingredients to create flavours which are innovative, delectable and elevating... this new range is bread but not quite! This vitamin enriched, wholewheat Bread is made with wheat flour, gram flour and turmeric flavoured just right with a blend of choicest Indian spices - ajwain, methi, coriander, jeera, chilli, this is bread, but not quite! Enjoy it simply toasted with butter or have it with chole or any subzi of your choice. This is Missi in a pack! ii. Whole Wheat Breads: Britannia’s range of wholesome and delicious breads is filled with the goodness you need to keep your body healthy and happy. Being the largest selling brand of breads in India, we rise every day to bake fresh, high-quality products so that you can start your day on a nourishing and delightful note. Ready-to-eat 100% Atta Kulcha - Toast it with Butter, wrap it with an Indian curry or spread it with Jam. And get ‘Healthy Khana without Pakana’. Available in two variants – Atta and Maida. iii. White Sandwich Breads: Soft white sandwich bread that'll treat your palate to delicious taste and B Vitamin to your tummy. iv. Bread assortment: Ready-to-eat Kulcha - your no-fuss, meal companion. Toast it with butter, wrap it with Chole or bake it Pizza-style to enjoy these soft and delicious Kulchas. Available in two variants – Atta and Maida. ✓ Dairy: i. Cheese: Britannia Cheese proudly offers the widest range of cheese in India- Slices, Cubes, Blocks, Spreads, Pizza Cheese, Low-fat cheese and Cream Cheese. Super nutritious slices, each with the goodness of a glass of cow’s milk.