BRITANNIA

Company Overview

The story of one of India's favorite brands reads almost like a fairy tale. Once upon a

time, in 1892 to be precise, a biscuit company was started in a nondescript house in

Calcutta (now Kolkata) with an initial investment of Rs. 295. The company we all

know as Britannia today.

1. The beginnings might have been humble-the dreams were anything but. By

1910, with the advent of electricity, Britannia mechanised its operations, and

in 1921, it became the first company east of the Suez Canal to use imported

gas ovens. Britannia's business was flourishing. But, more importantly,

Britannia was acquiring a reputation for quality and value. As a result, during

the tragic World War II, the Government reposed its trust in Britannia by

contracting it to supply large quantities of "service biscuits" to the armed

forces.

As time moved on, the biscuit market continued to grow… and Britannia grew

along with it. In 1975, the Britannia Biscuit Company took over the

distribution of biscuits from Parry's who till now distributed Britannia biscuits

in India. In the subsequent public issue of 1978, Indian shareholding crossed

60%, firmly establishing the Indianness of the firm. The following year,

Britannia Biscuit Company was re-christened Britannia Industries Limited

(BIL). Four years later in 1983, it crossed the Rs. 100 crores revenue mark.

On the operations front, the company was making equally dynamic strides. In

1992, it celebrated its Platinum Jubilee. In 1997, the company unveiled its new

corporate identity - "Eat Healthy, Think Better" - and made its first foray into

the dairy products market. In 1999, the "Britannia Khao, World Cup Jao"

promotion further fortified the affinity consumers had with 'Brand Britannia'.

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

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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.

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%.

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.

In an intensely competitive biscuit environment, all ³Power Brands² of the Company

recorded double digit growth, with Tiger and Good Day growing in excess of 20%.

The Company¹s innovation forays have successfully addressed new benefit clusters

and NutriChoice Digestive has claimed its position in the health and vitality space.

The Company continues to maintain its leadership edge in 6 out of 7 key product

segments, the only exception being Glucose.

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.

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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.

As a Corporate, Britannia worked for the benefit of all stakeholders - shareholders,

consumers, dealers , suppliers, bankers and employees. It has established an excellent

track record in terms of its financial performance and dividends distributed to its

shareholders. This has been adequately demonstrated with the Company's topline

growing from Rs 10,301 Mn in 1999 to Rs 26,176 Mn in 2008, a growth of 154%

over the last 10 years. The net profit grew even more significantly at 382% from Rs

396 Mn in 1998-99 to Rs 1,910 Mn in 2007-08, giving a CAGR of 19.1%. As at 31st

March 2008, the issued and paid up capital of Britannia amounts to 23, 890,163

equity shares having a nominal value of Rs 10 each. The shareholder base is about

25,300 in number

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MILESTONES OF THE COMPANY

1892 The Genesis - Britannia established with an investment of Rs. 295 in

Kolkata

 1910 Advent of electricity sees operations mechanized

1921 Imported machinery introduced; Britannia becomes the first company

East of the Suez to use gas ovens

1939 – 44 Sales rise exponentially to Rs.16,27,202 in 1939 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

BrandPure Magic -Winner of the Worldstar, Asiastar and Indiastar

award for packaging

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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

2005 Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular

chant! Britannia launched 'Greetings' range of premium assorted gift

packs The new plant in Uttaranchal, commissioned ahead of schedule.

The launch of yet another exciting snacking option - Britannia 50-50

Pepper Chakkar

2007 Britannia industries formed a joint venture with the Khimji Ramdas

Group and acquired a 70 percent beneficial state in the Dubai-based

Strategic Foods International Co. LLC and 65.4% in the Oman-based

Al Sallan Food Industries Co. SAOG

2008 Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day

Classic Cookies', Low Fat Dahi and renovated 'MarieGold'

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COMPANY HISTORY

1918

The Company was Incorporated on 21st March, as a public limited company under

the Indian Companies Act, VII of 1913. The Company Manufacture bakery and

soyabean products, export of cashew Kernels marine products, general merchandise

items and computer software.

1921

The Company obtained a priority of Certificate and imported new machinery thereby

becoming the first biscuit company in India to install and run a gas oven plant.

1924

A new factory was established at Kasara Pier Road in Mumbai. In the same year, the

Company became a subsidiary of Peek, Frean & Co. Ltd., U.K., a leading biscuit

manufacturing company, and further strengthened its position by expanding the

factories at Calcutta and Mumbai.

1939-45

A large part of the Company's production was diverted to war effort on account of

World War II and at times as much as 95% of the total capacity was booked for the

production of Service Biscuit.

1951

19,779 Equity shares issued to acquire the Delhi Biscuit Co. Ltd. In August 1,53,234

Bonus equity shares issued in the proportion 1:1.

1952

The Calcutta Factory was shifted from Dum Dum to spacious grounds at Taratola

Road in the suburbs of Calcutta. During the same year automatic plants were

installed there and later in Mumbai in 1954.

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1954

The development of high quality sliced and wrapped bread in India was pioneered by

the Company and was first manufactured at Delhi. 1,53,234 Bonus equity shares

issued in the proportion 1:2.

1961

Manufacture of bread was started in Mumbai and a new bread bakery was

set up at Delhi in 1965.

2,29,851 Bonus equity shares issued in the proportion 1:2.

1966

In May 1966, 3,06,468 Bonus equity shares issued in the proportion 4:9.

1968

On 14th May, 6,64,014 Bonus equity shares issued in the proportion 2:3.

1970

9,96,021 Bonus equity shares issued in the proportion 3:5.

1976

Britannia bread was introduced in Calcutta and Chennai.18,59,239 Bonus equity

shares issued in the proportion 7:10 in April.

1978

After the issue of shares to the Indian public, the non-resident holding in the

Company was reduced to less than 40%.18,00,000 Equity shares issued at a premium

of Rs 5 per share 4,06,286 shares offered as rights to resident Indian shareholders in

proportion 1:5. 43,714 shares offered to the Company's employees; 1,00,000 shares

to UTI and 50,000 shares each to LIC and GIC were reserved for allotment and

11,50,000 shares offered to the public during January/February.

1979

With effect from 3rd October, the name of the Company was changed from the

Britannia Biscuit Co., Ltd., to Britannia Industries Ltd.

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1980

The Company signed a 10 year technical collaboration agreement with Nebico Pvt.

Ltd., Nepal, for the supply of know-how relating to manufacturing, packaging and

marketing of biscuits and selection of plant and machinery.

1982

25,26,118 Bonus equity shares issued in proportion 2:5.

1986

The turnover increased by 19.4% over the the previous year to Rs 192.15 crores.

Sales of biscuits, in terms of volume, registered a satisfacotry growth. Good Day, a

new biscuit launched during the year met with good market response. Production of

bread at Delhi unit was adversely affected due to launched pure refined cooking oil

under the brand name of Vital. 35,36,565 Bonus shares issued in proportion 2:5

during July 1987.

1987

In (16 months), the total sales turnover increased on an annualized basis by 38.7%

over the previous year. Increase in sales of bakery and soya products divisions and

higher cashew exports helped to realise higher sales. With the introduction of some

more brands during the year, the total biscuit brands of the bakery division reached

27. The soya products division introduced a range of extruded products under the

brand name VITAL FEAST.

1989

The Company launched new brand of biscuit, namely, `CIRCUT'. Another brand

PURE MAGIC was extended nationally and posta badam was added to GOOD DAY

range of biscuits. Bread production and affected for some time at Delhi factory due to

industrial unrest. 61,88,989 Bonus shares issued in proportion 1:2.

1990

Two new brands of biscuits,Elaichi Creamand Petit Beurre were launched. Also, a

new cashew badam variant of the brand Milk Bikis and brand extension of Pure

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magic biscuit Vanilla cream were launched. Fruit bread was launched in Delhi and

was well received.

1991

The Company launched two new speciality brands viz., Britannia milk bread and

Britannia brown bread in Delhi and extended nationally its main brands Petit Beurre

and elaichi cream.On 17th August, the Company handed over to SM Dychem Ltd, its

soya unit at Vidisha, MP.The Company proposed to invest in the equity capital of

Britco Company Pvt. Ltd., a joint venture with JMRPCO Ltd., Hongkong, for

manufacture of beverage bases and essence for Coca Cola, Fanta & Sprite and to

export processed snack foods.

1992

The Company launched a new brand of biscuit, namely `Little Hearts' which carved a

niche in the market.

1993

The Company launched new brand of biscuit, namely, `Fifty-Fifty'.Bread market

remained depressed. To revive the market, the Company launched a speciality brand

viz. Premium Bake' in both Delhi and Mumbai. During the year, the company has

started exporting Basmati Rice under the name `Britannia Indian Pearl'.

1994

During the year, the bakery division launched `Bakers Choice' a sweet biscuit and

Thinlite' a light semi-sweet biscuit aimed at fitness concious consumers.

1995

Under the `Pure Magics' Umbrella, the company launched a new sandwich cream

biscuit with two-in-one flavour viz. double cream and this was well received in the

market. In the cake market, under the premium segment, the company launched with

Groupe Danone's technological input a Swissroll Cake Mini Roule which was also

met with good response.

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1996

Mariegold biscuits registered quantum growth in volumes and milk bikis milk cream

launched during the year was well received. Despite general slow down in the

economy the company's profits improved.

1997

The Biscuit industry has been dereserved which would not only remove restriction on

increasing capacity but would also provide opportunities of growth through new

products and efficient production systems. The Company undertook to diversify into

cheese and dairy whitner. The Company launched `Tiger' range of biscuits for mass

market category, `Jim-Jam' and Chekkers' in the premium segment. The Company

also launched Butter in Delhi during the year.

Britannia Industries (BIL) is one of the largest bakery in the private sector and

a household name in food products. Britannia Industries Ltd (BIL) will shortly enter

the cheese and milk products market with an alliance proposed between itself and the

Mumbai-based Dynamix Dairy Ltd.

Britannia Industries Ltd is all set to launch a new corporate identity and a total

revamp of its product portfolio, with strategic inputs from an international strategic

design and brand repositioning company - Shining Strategic Design.

1998

Food major Britannia Industries Ltd (BIL) has signed a wage agreement with the

Maharashtra General Kamgar Union (MGKU), providing an average wage increase

for 1,000 workers employed in the biscuit manufacturing unit at Reay Road, Mumbai.

The company has launched Half/Half, a soft cake filled with cream in two variants,

chocolate-vanilla and vanilla-orange. Half/Half comes in a twin-cake pack (Rs.6) and

a tray pack containing five cakes. Britannia Industries Ltd has launched a festival

offer for

Britannia Dairy Whitener in Kerala.

A Ind AAA rating has been signed to the Rs.100-crore secured non-

convertible debenture issue from Britannia Industries Limited (BIL).

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1999

Britannia Industries Ltd has rolled out its flavoured milk brand `Zip-Sip' in

tetrapaks. Zip-Sip has been launched in Mumbai and some markets in the South.

Britannia Industries, launching the country's first branded flavoured milk is another

step towards its goal of becoming a dairy-products giant. In a move meant to sharply

increase its India-profile, knowledge major' Encyclopaedia Britannica Inc plans to

come out - for the first time - with India and south Asia-specific volumes targeted at

school children as well as institutions and the general `knowledge-seeker'.

2000

Britinnia Industries has launched consumer promotion scheme Britannia Khao,

Cricketer Ban Jao' on May 1st.

Britannia Industries, in its second coming in the Indian dairy market under the

Milkman' brand, is introducing a range of products many in desi flavours to woo the

Indian consumer.The Company has launched Vita Mariegold, a semi-sweet biscuit

which reportedly has 10 essential vitamins, milk protein and 58 cereals.

Britannia's Milk Bikis Funland biscuits an innovative extension of the Milk Bikis

brand.

The Industry is set to start bread-manufacturing factories in Kochi, Hyderabad and

Chennai to tap the region's market potential.The Company has become the first

company to take its products to the Net in the form of a video file.

Britannia Industries has launched Britannia Milkman Butter, a product under the

Milkman brand.The Company has appointed Tata Energy Research Institute (Teri) for

a power audit.

FITCH rating India Pvt. Ltd has reaffirmed the Ind AAA rating assigned to the Rs

1000 million non convertible debenture program of Britannia Industries Ltd.

The Company has lauched two new dairy products Milkman Cold Coffee and

Milkman Sweet lassi.

Britannia Industries Ltd. has introduced a new range of traditional namkeens called

Britannia Snaz in Mumbai.

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2001

Britannia Industries has launched Britannia Milkman Milk in Delhi. - Biscuits major

Britannia Industries will fund its in-principle agreement to acquire 49 per cent of

Kwality Biscuits through internal accruals.

2002

Britannia Industries Ltd announced on March 26, 2002 that it has entered into a joint

venture with the Fonterra Cooperative Group, New Zealand's biggest company and

one of the leading diary co-operative groups in the world. Britannia's new COO is

Nikhil Sen.

2003

Board of Directors of Britannia Industries Ltd has passed a resolution to terminate the

employment of Mr S K Alagh as Managing Director of the company with immediate

effect.

The management of Britannia Industries has roped in John Miller, a Danone

representative, as additional director on its board.

-Britannia New Zealand Foods, a joint venture of Britannia Industries and Fonterra

Co-operative group of New Zealand has launched Britannia MilkMan fresh milk.

Britannia's Non-convertible Debentures have been rated AAA by Fitch Rating India

as Stable Outlook.Britannia Industries has appointed Mr.Nikhil Sen,Chief Operating

Officer as the manager of the company

.

2004

Britannia Industries Ltd has informed that pursuant to the approval of the shareholders

of the Company at the AGM held on August 08, 2003 and the subsequent application

to the Cochin Stock Exchange Ltd., the said stock exchange has delisted the securities

of the Company with effect from November 15, 2003.

-Britannia Industries Ltd reviews marketing alliance with the Kolkata-based Thacker

Dairy Products Pvt Ltd

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2005

Britannia New Zealand launches health drink for adult

2006

Britannia Industries Ltd has forged a strategic alliance with CCD Daily Bread Pvt Ltd

a Bangalore based Company engaged in manufacturing and retailing of premium

breads, cakes and high end ready to eat foods and snacks

Britannia Industries Ltd has appointed Mr. Stephan Gerlich as a Director.

Britannia Industries Ltd has informed that Mr. Durgesh Mehta has joined the

Company as the Chief Financial Officer (CFO) with effect from November 16, 2006.

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KEY EMPLOYEES OF THE COMPANY

Name Designation

Mr. Nusli Neville Wadia Chairman

Ms. Vinita Bali Managing Director

Mr. A.K.Hirjee Director

Dr. Ajai Puri Director

Mr. Avijit Deb Director

Mr. Jeh N Wadia Director

Mr. Keki Dadiseth Director

Mr. Nimesh N Kampani Director

Mr. Pratap Khanna Director

Mr. S.S.Kelkar Director

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LOCATION DETAILS - BRITANNIA INDUSTRIES

Location Type Address

Office Executive Office: Britannia Gardens

Airport Road Vimanapura

Bangalore - 560017

Karnataka - India

Phone : 66928000

Fax : 25263265

Email : madanv@britindia.com

Internet : N.A.

Factory/plant Plot No. 1, Sector 1 Integrated Industrial

Estate (IIE) Pant Nagar, Tehsil/Taluk

Udham Singh Nagar Di -

Uttaranchal - India

Phone :

Fax :

Email : N.A.

Internet : N.A.

Factory/plant Reay Road (East),

Mumbai - 400010

Maharashtra - India

Phone :

Fax :

Email : N.A.

Internet : N.A.

Branch Office Sandhu Farms P O Box No. 18

Nainital District - 263153

Uttar Pradesh - India

Phone :

Fax :

Email : N.A.

15

Internet : N.A.

Factory/plant Sanchi Vidisha Road

Vidisha - 464001

Madhya Pradesh - India

Phone :

Fax :

Email : N.A.

Internet : N.A.

Branch Office Village Fazipur Mehrola

Nainital District - 0

Uttar Pradesh - India

Phone :

Fax :

Email : N.A.

Internet : N.A.

Registered Office 5/1A,

Kolkata - 700017

West Bengal - India

Phone : 22872439, 22872057

Fax : 22872501

Email : bguha@britindia.com

Internet : N.A.

Factory/plant 15, Taratola Road

Kolkata - 700088

West Bengal - India

Phone :

Fax :

Email : N.A.

Internet : N.A.

Factory/plant MTH Road,

Chennai (Madras) - 600050

Tamil Nadu - India

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Phone :

Fax :

Email : N.A.

Internet : N.A.

Factory/plant Plot No. 1, Sector 1 Integrated Industrial

Estate (IIE), Pant Nagar, Tehsil/Taluk,

Rudrapur Kichha,

Udham Singh Nagar Di -

Uttaranchal - India

Phone :

Fax :

Email : N.A.

Internet : N.A.

Factory/plant Reay Road (East), Mazagaon

Mumbai - 400010

Maharashtra - India

Phone :

Fax :

Email : N.A.

Internet : N.A.

Registered Office 5/1A, Hungerford Street,

Kolkata - 700017

West Bengal - India

Phone : 22872439, 22872057

Fax : 22872501

Email : investorrelations@britindia.com

Internet : N.A.

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PRODUCTS & SERVICES

Tiger, launched in 1997, became the largest brand in Britannia's

portfolio in the very first year of its launch and continues to be so

till today. Tiger has grown from strength to strength and the re-

invigoration in June 2005 and more recently, in Apr 2008 has further helped bolster

its growth in the highly competitive glucose biscuit category .

Tiger is a Glucose biscuit, which comes with the added goodness of wheat and

milk. It is for modern mothers who play an enabling role for their children to compete

in today's world and thus want the best. Now Tiger Glucose has been fortified with

"Iron Zor" with an attempt towards addressing the Iron Deficiency crisis the children

of India face.

Over the years, Tiger has become the mass-market face of Britannia

symbolising fun and energy in both urban and rural India, and transcending glucose

biscuits.

Tiger Coconut : Delicious Coconut Flavoured Energy Biscuits, launched in 2001

Tiger Creams : Was Introduced in 2002 at just Rs 5 per pack. Tiger Cream is now

available in Orange, Elaichi, Chocolate, Pineapple, Strawberry and Butterscotch

flavours, and promises to bring more fun and more energy to children across the

country.

Chota Tiger : Is an extension of brand Tiger launched nationally in May, 2007. It is

mini sized poppable glucose biscuit with coloured sugar sprinkling. It comes in two

variants: Milk Sparkies and Choco Sparkies

Tiger Banana : Britannia is committed to help secure every child's right to Growth &

Development through good food everyday. Purposefully taking forward the credo of

'Eat Healthy, Think Better ', we have launched a new variant under our power brand

TIGER - TIGER BANANA - power packed with IRON ZOR & and with the

delightful taste of banana.

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Britannia Good Day was launched in 1986 in two

delectable avatars - Good Day Cashew and Butter. Over the

years, new variants were introduced - Good Day Pista

Badam in 1989, Good Day Chocochips in 2000 and Good

Day Choconut in 2004.

This rich biscuit enjoys a fan following of consumers across all ages, loyal to

the brand promise of a great taste evident from the visibly abundant ingredients. Good

Day is amongst the fastest growing brands in Britannia's portfolio and is today the

market leader with almost 2/3 share of the market. The brand is synonymous with

everyday treats that infuse happiness into people's daily lives.

After two decades of magnificent success; it was time to give the nation yet

another reason to have a good day. Abundance, goodness, indulgence and now

unrestrained joy - that is the message of this new campaign.

The new TT ad is the uncontrollable expression of the ticket collector's

happiness and joy that is stimulated by consumption of the cookie, that spreads cheer

amongst the people around him creating an atmosphere of shared joy that's

unorchestrated and straight from the heart. The celebration was taken to the IPL as

Good day cheered along with a million cricket fans in the stadiums, each screaming

and proclaiming "Ho gaya re Good Day". The dazzling brilliance of this endeavour,

the contagious rhythm needs to be lived and spread through the nation, making 'Iska

toh ho Gaya Re Good Day' a part of the common lingo and a way of life.

Good Day truly believes laughter and happiness are infectious, it transcends

race, caste creed unifying humanity in an inclusive emotion.

The brand perseveres to infuse cheer, hearten the nation and enliven lives.

With its rightful place on the front page of The Times of India, Good Day gifts the

nation a priceless treasure, that of spreading JOY!

With a brand name like 50-50, can the product be

anything but fun? Launched in 1993, 50-50 belongs to the

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family of crackers and is considered the "very very tasty tasty" snack.

Britannia 50-50 is the leader in its category with more than one-third of market share.

The versatile and youthful brand constantly aims to provide a novel and exciting taste

experience to the consumer. As a result, in 2001, the delicious Maska Chaska was

launched as a variant of the original brand and became an instant success.

Kids may dislike drinking milk, but they love Britannia

Milk Bikis! Milk Bikis has been trusted by mothers as a

source of growth energy of milk and their loyalty to the

brand has made it an integral part of their children's

nutrition regimen

In 1996, Milk Bikis launched a variant called Milk Cream. These round biscuits come

with smiley faces and are full of milk cream that makes them very popular with

children. Milk Cream also promoted the idea of 'eating milk' in a yummy way, which

makes mothers happy as well

.

To keep pace with the demands of the new generation and to bring milk nutrition to

the masses in a delightful form, Milk Bikis, went one step further in the last quarter of

2006 in providing not just energy but ‘developmental fuel’ for children. With a unique

and attractive honeycomb design and an enhanced product experience, the new biscuit

is now fortified with SMART NUTRIENTS – 4 vital vitamins, iron and iodine,

proven to aid mental and physical development in growing kids.

Britannia's oldest brand enjoys a heritage that spans the last 50

years - and going strong. In a market swamped with me-too

products and where even the name 'Marie' has become generic,

Britannia Marie Gold has maintained its stronghold. Today, the

ever-popular Marie Gold is synonymous with the 'Tea Time Biscuit'. Its taste,

crispiness and lightness make it a must for every tea break. It is the #1 brand in its

category by a long shot.

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Need For Study:-

In India brittania is one of biggest brand & preminent food brand of the country. The

main aspect or need for study to know about the present financed position of the

company. To know about the employee relations & their commitment towards the

company. To gather the information regarding distribution of its products. To

determine global expansion of the company.

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Objectives Of The Study:-

To know about the status of the competitors.

To analyse the business level strategy of the company.

To analyse the financial performance of the company

To know about the experts view of the company.

To determine sales activities by understanding customers business.

To analyse strengths and weakness of the company.

To know about the key employees of the company.

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Data sources

The source of study is secondary data.

The company information is collected from various websites related to BRITANNIA

retail.

www. BRITANNIA.com

www.moneycontrol.com

www.financialexpress.com.

www.wikipedia.com

www.indianfinancelevel.com

www.companyreviews.com

www.webindia.com

www.businesstimes.com

Company website: www.BRITANNIAretail.net

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Limitations Of Study:-

Reliability is not guaranteed.

Secondary data can be general and vegue and maynot really help

companies with decision making.

The data may be old and out of data.

The company publishing the data may not be reputable.

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FINANCIAL STATEMENT

Balance sheet

(Rs crore)

  Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

Sources of funds

Owner's fund

Equity share capital 23.89 23.89 23.89 23.89 25.11

Share application money - - - - -

Preference share capital - - - - -

Reserves & surplus 731.92 590.93 525.20 419.63 405.91

Loan funds

Secured loans 1.94 1.53 1.62 6.14 39.19

Unsecured loans 104.16 3.25 7.74 - -

Total 861.91 619.60 558.45 449.66 470.21

Uses of funds

Fixed assets

Gross block 453.18 392.12 315.37 250.35 273.51

Less : revaluation reserve - - - - -

Less : accumulated depreciation 212.19 193.75 174.81 154.39 146.07

Net block 240.99 198.37 140.56 95.95 127.44

Capital work-in-progress 9.69 16.03 11.08 31.70 0.86

Investments 380.83 320.05 359.86 330.08 291.32

Net current assets

Current assets, loans & advances 554.84 382.61 349.10 278.07 239.96

Less : current liabilities &

provisions 347.67 323.03 318.22 320.37 235.67

Total net current assets 207.17 59.58 30.88 -42.30 4.29

Miscellaneous expenses not

written 23.23 25.58 16.06 34.24 46.30

Total 861.91 619.60 558.45 449.66 470.21

Notes:

Book value of unquoted

investments 380.81 352.55 392.33 228.56 291.28

Market value of quoted 2.93 2.12 2.88 2.02 1.41

25

investments

Contingent liabilities 169.55 102.63 67.24 61.24 58.55

Number of equity

sharesoutstanding (Lacs) 238.90 238.90 238.90 238.90 251.12

Cash flow

(Rs crore)

  Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

Profit before tax 232.26 118.41 200.71 220.24 184.39

Net cashflow-operating activity 63.13 87.08 64.90 192.46 82.59

Net cash used in investing activity -130.31 59.05 -37.41 -45.18 39.47

Netcash used in fin. activity 53.08 -49.15 -36.17 -140.51 -185.96

Net inc/dec in cash and equivlnt -14.10 96.98 -8.68 6.77 -63.90

Cash and equivalnt begin of year 238.91 141.93 150.61 9.86 73.76

Cash and equivalnt end of year 224.81 238.91 141.93 16.63 9.86

Profit loss account

(Rs crore)

  Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

26

Income: 

Operating income  2,587.86 2,199.32 1,713.34 1,587.57 1,439.61

Expenses 

Material consumed  1,563.79 1,404.58 1,008.64 899.46 767.10

Manufacturing expenses  244.96 212.30 162.42 204.39 194.39

Personnel expenses 90.53 76.71 73.07 71.64 82.06

Selling expenses 363.20 303.67 209.75 157.64 167.39

Adminstrative expenses 93.06 73.37 58.50 70.51 67.24

Expenses capitalised - - - - -

Cost of sales 2,355.54 2,070.62 1,512.38 1,403.63 1,278.18

Operating profit 232.32 128.70 200.96 183.94 161.44

Other recurring income 24.07 15.67 13.38 19.49 15.81

Adjusted PBDIT 256.39 144.37 214.34 203.43 177.24

Financial expenses 9.73 8.90 5.09 2.10 6.05

Depreciation  29.08 25.27 21.72 18.97 22.40

Other write offs - - - - 9.72

Adjusted PBT 217.57 110.20 187.53 182.35 139.07

Tax charges  41.26 10.76 54.29 57.95 65.59

Adjusted PAT   176.31   99.44   133.25   124.40   73.48

Non recurring items -3.95 5.89 8.90 34.44 38.93

Other non cash adjustments 18.64 2.32 4.28 -8.99 6.39

Reported net profit 191.00 107.65 146.43 149.85 118.80

Earnigs before appropriation 251.00 157.65 196.43 199.85 168.80

Equity dividend 43.00 35.84 35.84 33.45 27.23

Preference dividend - - - - -

Dividend tax 7.31 6.09 5.03 4.69 3.49

Retained earnings 200.69 115.73 155.57 161.71 138.08

Capital structure

(Rs crore)

From To Class Of Authorized Issued Paid Up Paid Up Paid Up

27

Year Year Share Capital CapitalShares

(Nos)

Face

ValueCapital

2007 2008Equity

Share50.00 23.89 23890163 10 23.89

2006 2007Equity

Share50.00 23.89 23890163 10 23.89

2005 2006Equity

Share50.00 23.89 23890163 10 23.89

2004 2005Equity

Share50.00 23.89 23890163 10 23.89

2003 2004Equity

Share50.00 25.11 25112050 10 25.11

2002 2003Equity

Share50.00 25.90 25904276 10 25.90

2001 2002Equity

Share50.00 26.85 26850450 10 26.85

1999 2001Equity

Share50.00 27.85 27850450 10 27.85

1989 1999Equity

Share50.00 18.57 18566967 10 18.57

1988 1989Equity

Share20.00 12.38 12378000 10 12.38

Ratios

28

(Rs crore)

  Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

Per share ratios 

Adjusted EPS (Rs)  73.80 41.62 55.78 52.07 29.26

Adjusted cash EPS (Rs)  85.98 52.20 64.87 60.01 42.05

Reported EPS (Rs)  79.95 45.06 61.29 62.27 47.31

Reported cash EPS (Rs)  92.12 55.64 70.38 70.21 60.10

Dividend per share    18.00   15.00   15.00   14.00   11.00

Operating profit per share (Rs)    97.24   53.87   84.12   76.99   64.29

Book value (excl rev res) per

share (Rs) 306.65 246.65 223.12 171.32 153.20

Book value (incl rev res) per share

(Rs.)   306.65   246.65   223.12   171.32   153.20

Net operating income per share

(Rs) 1,083.23 920.60 717.17 664.53 573.28

Free reserves per share (Rs)    294.86   234.99   211.46   159.66   142.11

Profitability ratios 

Operating margin (%)    8.97   5.85   11.72   11.58   11.21

Gross profit margin (%)    7.85   4.70   10.46   10.39   9.65

Net profit margin (%)    7.31   4.86   8.48   9.25   8.16

Adjusted cash margin (%)    7.86   5.63   8.97   8.92   7.25

Adjusted return on net worth (%)    24.06   16.87   24.99   30.39   19.09

Reported return on net worth (%)    26.07   18.26   27.47   36.34   30.87

Return on long term funds (%)    29.99   19.32   34.97   41.58   33.66

Leverage ratios 

Long term debt / Equity    -   -   -   -   -

Total debt/equity    0.14   0.01   0.01   0.01   0.09

Owners fund as % of total source    87.69   99.22   98.32   98.63   91.66

Fixed assets turnover ratio    5.73   5.63   5.43   6.34   5.93

Liquidity ratios 

Current ratio    1.60   1.18   1.10   0.86   1.02

Current ratio (inc. st loans)    1.23   1.17   1.07   0.83   0.76

Quick ratio    0.72   0.51   0.47   0.40   0.44

Inventory turnover ratio    9.98   12.88   11.79   14.13   14.69

29

Payout ratios 

Dividend payout ratio (net profit)    26.34   38.94   27.90   25.63   25.86

Dividend payout ratio (cash

profit)   22.85   31.54   24.30   22.73   20.35

Earning retention ratio    71.47   57.84   69.34   69.35   58.19

Cash earnings retention ratio    75.51   66.39   73.64   73.40   70.91

Coverage ratios 

Adjusted cash flow time total

debt   0.51   0.03   0.06   0.04   0.37

Financial charges coverage ratio    26.34   16.22   42.14   96.71   29.32

Fin. charges cov.ratio (post tax)    23.61   15.94   34.06   80.74   25.96

Component ratios 

Material cost component (%

earnings)   59.76   65.41   59.58   56.04   54.20

Selling cost Component    14.03   13.80   12.24   9.92   11.62

Exports as percent of total sales    0.44   0.66   0.65   2.51   0.37

Import comp. in raw mat.

consumed   0.09   0.20   0.19   5.03   1.69

Long term assets / total Assets    0.53   0.58   0.59   0.62   0.61

Bonus component in equity

capital (%)   91.82   91.82   91.82   91.82   92.22

Annual Performance 2007-08 

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

30

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%.

Exceptional items for the year include Rs 130.5 Mn towards amortisation of VRS

costs. Earnings per Share are Rs. 80 compared with Rs.45.1 last year 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.

In an intensely competitive biscuit environment, all ³Power Brands² of the Company

recorded double digit growth, with Tiger and Good Day growing in excess of 20%.

The Company¹s innovation forays have successfully addressed new benefit clusters

and NutriChoice Digestive has claimed its position in the health and vitality space.

The Company continues to maintain its leadership edge in 6 out of 7 key product

segments, the only exception being Glucose.

31

The business continued to face inflationary pressure in key raw materials such as

wheat flour, refined palm oil, skimmed milk powder and other dairy products, as well

as energy costs. These were more than offset on the cost side through operational and

procurement efficiencies, productivity improvements, cost reduction programs and on

the revenue side through improved product mix and higher realisation, aided by

strong consumer off take.

britannia has an excellent track record of rewarding its shareholders. The company

has an uninterrupted record of distributing dividends for several decades. The

dividends declared over the last 10 years are as under:

Year Dividend Percentage

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

Year Bonus Particulars

32

1961 1 equity share for every 2 shares held

1966 4 equity shares for every 10 shares held

1968 2 equity shares for every 3 shares held

1971 2 equity shares for every 3 shares held

1976 7 equity shares for every 10 shares held

1984 2 equity shares for every 5 shares held

1987 2 equity shares for every 5 shares held

1990 1 equity share for every 2 shares held

2000 1 equity share for every 2 shares held

Comparison with Competitors

33

Last Price Market Cap.(Rs. cr.)

Sales

Turnover

Net Profit Total Assets

GlaxoSmith Con 930.95 3,915.16 1,592.30 188.33 646.36

Britannia 1,565.55 3,740.12 3,127.11 180.40 861.92

Lotte India 525.00 197.99 170.96 -2.14 77.67

Heritage Foods 81.65 94.14 588.03 0.94 272.44

SKM Egg Product 18.10 47.66 123.90 10.50 82.15

Agro Dutch Ind 11.45 38.43 143.47 -32.05 482.41

Sita Shree Food 10.35 22.81 95.08 1.39 56.82

Balance sheet

34

------------------- in Rs. Cr. -------------------

Britanni

aNestle

GlaxoSmith

Con

Mavens Biotech

Kwality

Dairy

Mar '08 Dec '08 Dec '07 Mar '08 Mar '07

Sources Of Funds

Total Share Capital 23.89 96.42 42.06 10.99 18.20

Equity Share Capital 23.89 96.42 42.06 10.99 18.20

Share Application Money 0.00 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 0.00 0.00 0.00

Reserves 731.92 376.93 604.29 3.39 1.99

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Networth 755.81 473.35 646.35 14.38 20.19

Secured Loans 1.94 0.82 0.00 0.00 13.79

Unsecured Loans 104.16 0.00 0.00 0.00 0.85

Total Debt 106.10 0.82 0.00 0.00 14.64

Total Liabilities 861.91 474.17 646.35 14.38 34.83

Britanni

aNestle

GlaxoSmith

Con

Mavens

Biotech

Kwality

Dairy

Mar '08 Dec '08 Dec '07 Mar '08 Mar '07

Application Of Funds

Gross Block 453.181,404.8

5523.68 4.52 17.18

Less: Accum. Depreciation 212.19 651.85 297.65 0.39 10.28

Net Block 240.99 753.00 226.03 4.13 6.90

Capital Work in Progress 9.69 109.17 17.31 0.53 0.00

Investments 380.83 34.90 297.84 0.37 0.00

Inventories 301.53 434.91 194.82 5.95 17.91

Sundry Debtors 46.33 45.59 27.36 2.84 24.02

Cash and Bank Balance 43.54 12.66 32.17 0.10 0.51

Total Current Assets 391.40 493.16 254.35 8.89 42.44

35

Loans and Advances 163.22 162.67 62.15 1.17 16.96

Fixed Deposits 0.23 181.03 61.50 0.00 0.68

Total CA, Loans &

Advances554.85 836.86 378.00 10.06 60.08

Deffered Credit 0.00 0.00 0.00 0.00 0.00

Current Liabilities 247.02 582.44 243.65 0.02 31.43

Provisions 100.65 677.32 29.17 0.69 0.69

Total CL & Provisions 347.671,259.7

6272.82 0.71 32.12

Net Current Assets 207.18 -422.90 105.18 9.35 27.96

Miscellaneous Expenses 23.23 0.00 0.00 0.00 0.00

Total Assets 861.92 474.17 646.36 14.38 34.86

Contingent Liabilities 169.55 84.90 7.03 0.00 11.78

Book Value (Rs) 316.37 49.09 153.69 13.09 11.09

Profit & Loss account

------------------- in Rs. Cr. -------------------

Britanni Nestle GlaxoSmith Mavens Kwality

36

a Con Biotech Dairy

Mar '08 Dec '08 Dec '07 Mar '08 Mar '07

Income

Sales Turnover 2,617.664,472.0

41,429.97 20.77 149.61

Excise Duty 29.80 143.39 122.09 0.00 0.00

Net Sales 2,587.864,328.6

51,307.88 20.77 149.61

Other Income 20.12 29.88 31.67 0.12 0.07

Stock Adjustments -17.05 31.11 27.34 0.25 6.81

Total Income 2,590.934,389.6

41,366.89 21.14 156.49

Expenditure

Raw Materials 1,546.742,153.8

5471.61 0.00 141.75

Power & Fuel Cost 22.78 159.76 30.44 0.02 3.22

Employee Cost 90.53 314.58 154.94 0.14 0.86

Other Manufacturing

Expenses222.18 73.46 113.41 19.71 0.64

Selling and Admin Expenses 382.26 736.73 270.50 0.27 1.11

Miscellaneous Expenses 74.00 81.40 32.03 0.06 0.37

Preoperative Exp Capitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 2,338.493,519.7

81,072.93 20.20 147.95

Britanni

aNestle

GlaxoSmith

Con

Mavens

Biotech

Kwality

Dairy

Mar '08 Dec '08 Dec '07 Mar '08 Mar '07

Operating Profit 232.32 839.98 262.29 0.82 8.47

PBDIT 252.44 869.86 293.96 0.94 8.54

Interest 9.73 1.64 4.61 0.00 1.91

37

PBDT 242.71 868.22 289.35 0.94 6.63

Depreciation 29.08 92.36 43.49 0.09 0.89

Other Written Off 0.00 0.00 0.00 0.00 0.08

Profit Before Tax 213.63 775.86 245.86 0.85 5.66

Extra-ordinary items 18.64 0.00 0.02 0.00 0.00

PBT (Post Extra-ord Items) 232.27 775.86 245.88 0.85 5.66

Tax 41.26 238.74 82.46 0.30 1.93

Reported Net Profit 191.00 534.08 162.68 0.54 3.73

Total Value Addition 791.741,365.9

2601.32 20.21 6.20

Preference Dividend 0.00 0.00 0.00 0.00 0.00

Equity Dividend 43.00 409.77 50.47 0.39 0.00

Corporate Dividend Tax 7.31 69.64 8.58 0.00 0.00

Per share data (annualised)

Shares in issue (lakhs) 238.90 964.16 420.56 109.92 182.00

Earning Per Share (Rs) 79.95 55.39 38.68 0.49 2.05

Equity Dividend (%) 180.00 425.00 120.00 3.00 0.00

Book Value (Rs) 316.37 49.09 153.69 13.09 11.09

38

TEN YEAR FINANCIAL STATISTICS : 1999 - 2008

Rs.

million

As at / Year ended 31st March 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Assets employed

Fixed assets less Depreciation

&  Amortisation1,353 1,306 1,588 1,632 1,481 1,283 1,338 1,516 2,144 2,507

Investments 1,293 1,470 2,156 3,104 2,969 2,913 3,301 3,599 3,200 3,808

Net current assets 18 65 257 592 747 43 (485) 309 596 2,072

Miscellaneous expenditure - 122 163 217 260 463 342 161 256 232

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 & Surplus 1,308 1,586 2,123 3,430 3,653 4,059 4,196 5,252 5,909 7,319

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 10,30111,69813,32514,51013,49114,70516,15418,17923,171 26,177

Profit before Depreciation,

Amortisation

 and Tax

735 962 1,369 1,630 1,722 2,251 2,645 2,218 1514 2,723

Depreciation and Amortisation 159 172 189 240 261 224 190 217 253 291

Profit before tax and

Exceptional items576 790 1,180 1,390 1,461 2,027 2,455 2,001 1,261 2,432

Exceptional items - (19) (41) 1,201 12 (183) (252) 6 (77) (109)

Profit before tax * 576 771 1,139 2,591 1,473 1,844 2,203 2,007 1,184 2,323

Taxation 180 261 434 559 482 656 715 543 108 413

Profit after tax 396 510 705 2,032 991 1,188 1,488 1,464 1,076 1,910

Dividends 102 125 153 201 251 272 334 358 358 430

Tax on dividend 11 14 16 - 32 35 47 50 61 73

Debenture Redemption Reserve - - 47 14 18 - - - - -

Retained earnings 283 371 489 1,564 692 910 1,117 1,056 657 1,407

39

Cash flows

------------------- in Rs. Cr. -------------------

Britanni

a

Mavens

Biotech

Mount

Everest

GlaxoSmith

ConNestle

Mar '08 Mar '08 Mar '08 Dec '08 Dec '08

Net Profit Before Tax 12 mths 12 mths 12 mths 12 mths 12 mths

Net Cash From Operating

Activities232.26 0.84 -6.17 284.09 772.83

Net Cash (used in)/from

Investing Activities63.13 0.11 -10.23 130.67 723.57

Net Cash (used in)/from

Financing Activities-130.31 -0.12 -69.84 23.38 -251.92

Net (decrease)/increase In

Cash and Cash Equivalents53.08 0.00 71.23 -54.57 -375.22

Opening Cash & Cash

Equivalents-14.10 -0.01 -8.84 99.48 96.43

Closing Cash & Cash

Equivalents

40

The Directors present their Annual Report together with the Statement

of Accounts for the year ended March 31, 2008.

1. FINANCIAL RESULTS

Rs. Mn

Particulars Year Year

ended 31st ended 31st

March 08 March 07

Gross Turnover and Other 26,679 23,487

Income

Profit before Finance Cost, 2,820 1,603

Depreciation & amortisation

and Exceptional items

Finance Cost 97 89

Profit before Depreciation 2,723 1,514

and Exceptional Items

Depreciation and 291 253

Amortisation

Exceptional items 109 77

Profit before tax 2,323 1,184

Less: Tax 413 108

Net Profit 1,910. 1,076

Add: Profit brought forward 600 500

Profit available for 2,510 1,576

appropriation

Less: Dividend on Equity 430 358

Shares

Less: Tax on Dividend 73 61

Less: Transfer to General 1,407 557

Reserve

Balance carried forward to 600 600

41

Balance Sheet

2. COMPANY PERFORMANCE

For the year ended 31st March, 2008, your 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 to Rs. 1,076 Mn in

2006-07. Operating margin increased by 307 basis points to 7.5%.

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.

In an intensely competitive biscuit environment, all Power Brands of the Company

recorded double digit growth, with Tiger and Good Day growing in excess of 20%.

Your Companys innovation forays have successfully addressed new benefit clusters

and Nutri Choice Digestive has claimed its position in the health and vitality space.

Your Company

continues to maintain its leadership edge in 6 out of 7 key product segments, the only

exception being Glucose.

The business continued to face inflationary pressure in key raw materials such as

wheat flour, refined palm oil, skimmed milk powder and other dairy products, as well

as energy costs. These were more than offset on the cost side through operational and

procurement

efficiencies, productivity improvements, cost reduction programs and on the revenue

side through improved product mix and higher realisation, aided by strong consumer

off take.

Exceptional items for the year include Rs. 130.5 Mn towards amortisation of VRS

costs. Earnings per share is Rs. 80 compared to Rs. 45 last year.

42

3. DIVIDEND

The Board of Directors is pleased to recommend a dividend of 180% onthe paid up

equity share capital of the Company, which works out to Rs.18 per share, for

consideration and approval by the shareholders at theAnnual General Meeting. The

total payout amounts to Rs. 503 Mnncluding dividend distribution tax of Rs. 73 Mn.

4. BUSINESS OUTLOOK

After several years of strong GDP growth, the Indian economy is witnessing a

slowdown. We enter the new financial year, in the midst of a serious food crisis

globally, which has led to high inflation in all staples like wheat, rice, corn, pulses etc.

We expect this supply constrained inflationary environment to dampen industry

growth in the coming year.

In this scenario, your Company will continue to pursue a strategy to identify and

exploit profitable growth opportunities by increasing the consumer preference and

consumption of Britannia brands, leveraging the three growth vectors of brand,

geography and channel. The key themes pursued by your Company are to increase

brand relevance and

differentiation, improve availability, structurally building capability and efficiencies

to be cost competitive.

The overall level of brand and infrastructure investment has increased with both

national and regional players pursuing aggressive growth in an increasingly

competitive market.

From a consumer perspective, several new dimensions have opened up as others have

gained strength, spurred by lifestyle and life stage choices. Your Company will

continue to focus on providing a range of enjoyable and healthy choices to consumers.

5. BRAND INVESTMENT

All Power Brands - Tiger, Good Day, Milk Bikis, Treat, MarieGold, 50:50 and

NutriChoice saw significant investment in increasing preference and purchase and

secured double digit growth.

43

Your Company also introduced several new and renovated offerings in Tiger, Good

Day, Treat and MarieGold. The health and nutrition platform was buttressed by Tiger

Banana with iron-zor, 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.

6. INTELLECTUAL PROPERTY RIGHTS (IPR)

Last year we reported the creation of the IPR Committee of the Board to monitor and

direct the Companys IPR. The key issue addressed by the Committee was the

unauthorised use by Generate Biscuit, a subsidiary of Groupe Danone, of your

Companys Tiger brand in five countries and registration in a large number of other

countries. Based on legal advice, your Company initiated proceedings against

Generale Biscuit, and its

Associates in Singapore and Malaysia. Further, during the year, Groupe Danone

divested its biscuit business worldwide (with the exception of India and Latin

America) including Generale Biscuit, in favour of M/s Kraft Inc. USA and your

Company continues to pursue the return of its Tiger IPR under the direction of the

Committee.

7. MANUFACTURING OPERATIONS

Following the significant addition to manufacturing capacity in the previous year, the

focus in 2007- 08 was to increase responsiveness and cost effectiveness of the supply

chain.

44

Several technology innovation projects to secure cost and quality advantages and

support introduction of differentiated products were completed. New technology

based products were successfully manufactured using equipment designed internally.

During the year your Company filed for 2 patents.

Uttarakhand factory continued to perform at high efficiency levels and reached full

capacity utilisation of 5,000 Tonnes/month. Overall conversion costs were reduced

due to efficiency and productivity improvements in manufacturing. Capacity for

Bread, Cakes and Rusks was also expanded with a greenfield, state of the art, cake

manufacturing facility in Assam.

With a view to optimise capacities and manufacturing cost, your Company, in April

2008, offered a Voluntary Retirement Scheme (VRS) to workmen at its Chennai unit.

The same was accepted by all the workmen and consequently manufacturing

operations have been suspended.

8. QUALITY STANDARDS

Notable progress was made in quality, the drive for ongoing quality training,

including the development of an e-learning portal. The vendor quality improvement

program was intensified and the continuous grinding in of quality practices at all

manufacturing units formed a key plank of building a quality culture. A retail audit

system was rolled out to monitor quality of products at point of sale.

9. INFORMATION TECHNOLOGY

Several initiatives were undertaken to enhance business performance, enabled by IT

infrastructure and processes. These included availability of timely and granular

information to improve planning and performance measurement in manufacturing,

logistics, distribution, sales and quality.

Information protection infrastructure and systems were significantly strengthened.

With the objective of securing the best IT competencies, higher service levels for

45

users, better infrastructure management and inflation proofing cost, IT was outsourced

in its entirety to Hewlett Packard (HP) with a lock in period of 3 years.

10. ENVIRONMENT AND SAFETY

The drive to reduce energy consumption through process innovations and technology

upgradation continued during the year. Burner efficiency improvement was achieved

through use of magnetic resonance energisers for fuel.

Recycling of the waste heat was extended to manufacturing locations as also the

usage of alternate energy sources like gas which was extended wherever available,

including Delhi factory as well as contract packers.

Your Company has filed an application for availing carbon reduction benefits under

the Clean Development Mechanism of the Ministry of Environment and Forests,

Government of India as part of the United Nations Framework for Climate Change

Control (UNFCCC) for the Delhi factory.

11. CORPORATE SOCIAL RESPONSIBILITY

The partnership your Company has created with Global Alliance for Improved

Nutrition (GAIN) and the Naandi Foundation to supply iron fortified Tiger biscuits to

supplement the Mid-Day Meal program in schools, has been recognised as a unique

program globally by GAIN. This prompted the World Bank Institute to write a case

study and your Company was invited to make a commitment to the Clinton Global

Initiative, a non-partisan catalyst for action that brings together a community of global

leaders to devise and implement solutions for some of the worlds pressing challenges

like nutrition. Iron deficiency among Indian children is a key cause of school dropouts

as well as decreased productivity. Based on the experience from the Britannia-GAIN-

Naandi partnership, your Company created a new offering for all consumers - Tiger

Banana, a delightful banana biscuit fortified with vitamins and minerals.

In keeping with its core essence of Swasth Khao Tan Man Jagao, your Company

constantly strives to find sustainable opportunities to drive home the message of

nutrition and good food habits among children at the right age. Britannia is committed

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to help secure every childs right to growth and development through good food

everyday. Its largest power brand, Tiger, is also being rolled out, fortified with iron.

Your Company was also the first in the industry to remove trans fat from most its

biscuits as yet another meaningful step in offering products that are both healthy and

enjoyable.

12. PENSION

The Britannia Industries Limited Covenanted Staff Pension Fund (Trust) received a

Show Cause Notice from the Commissioner of Income Tax, Kolkata, asking the Trust

to show cause why the recognition granted to the Trust should not be withdrawn for

refund of excess contribution of Rs. 121.2 Mn to the Company. The matter has been

dealt with in note No. 29 of Schedule T to the Accounts, which is self explanatory.

13. ENERGY, TECHNOLOGY AND FOREIGN EXCHANGE

Details of energy conservation, technology absorption, foreign exchange earnings

and outgoings in accordance with the provisions of clause (e) of sub-section (1) of

Section 217 of the Companies Act, 1956, read with the Companies (Disclosure of the

Particulars in the Report of Board of Directors) Rules, 1988, are given as an annexure

to the Directors Report.

14. CONSOLIDATED FINANCIAL RESULTS

Your Company has prepared Consolidated Financial Statements in accordance with

Accounting Standard 21(AS-21) issued by the Institute of Chartered Accountants of

India. The Consolidated Statements reflect the results of the Company with that of its

Subsidiaries, Joint Ventures and Associates. As required by Clause 32 of the Listing

Agreement with the Stock Exchanges, the Audited Consolidated Financial Statements

together with the Auditors Report thereon are annexed and form part of this Annual

Report.

The Consolidated turnover and net profits of the Company for the year ended 31st

March, 2008 were Rs. 28,099 Mn and Rs. 1,774 Mn respectively.

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15. SUBSIDIARIES, JOINT VENTURES AND ASSOCIATES

Your Directors present herewith a broad overview of the operations and financials of

its Subsidiaries, Joint Ventures and Associates. Subsidiaries

Investment and Holding Companies

M/s Boribunder Finance and Investments Private Limited (Boribunder), M/s Flora

Investments Company Private Limited (Flora) and M/s Gilt Edge Finance and

Investments Private Limited

(Gilt Edge) form the Investment Associates of your Company. During 2007-08, M/s

Boribunder Finance and Investments Private Limited (Boribunder) became a wholly

owned subsidiary of your Company.

The combined revenue and loss of investment companies for the year ended 31st

March, 2008 was Rs. 24 Mn and Rs 14 Mn respectively. The losses are due to

provision for diminution in value of investments.

Further, pursuant to Section 4 of the Companies Act, 1956, the following companies

engaged in manufacture of biscuits at various locations are also deemed to be

subsidiaries of your Company. The Gross Income and Net Profit of the said

subsidiaries during 2007-08 are as under:

Name of Subsidiary Gross Net Profit/ Income (Loss)

Rs.Mn Rs.Mn

International Bakery 106 3.5

Products Limited, TC

Balam, Tamil Nadu

J B Mangharam Foods 98 (7.4)

Private Limited, Gwalior

Manna Foods Private 30 1.6

Limited, Bangalore

Ganges Vally Foods 96 0.6

Private Limited, Kolkata

Sunrise Biscuit 83 (0.3)

Company Private Limited, Guwahati

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Britannia and Associates (Mauritius) Private Ltd.

Britannia and Associates (Mauritius) Private Ltd, (BAMPL) a Company formed in

Mauritius is the holding Company of Britannia and Associates (Dubai) Private Co.

Ltd, (BADCO) a Jebel Ali Free Zone Company, which in turn holds strategic

investments in Strategic Food International Co. LLC, Dubai and Al Sallan Food

Industries Company SAOG, Oman.

The combined revenue and loss of the holding companies for the year ended 31st

December, 2007 was USD 0.62 Mn and USD 0.77 Mn respectively.

Joint Ventures

Britannia New Zealand Foods Private Limited (BNZF) BNZF, the Joint Venture

with M/s Fonterra Co-operative Group Limited of New Zealand is engaged in the

business of dairy products, comprising cheese, skimmed milk powder, butter and

ghee. BNZF brands are available nationally and lead the cheese segment. For the year

ended 31st March 2008, BNZF recorded a turnover of Rs. 1,424 Mn and incurred a

net loss of Rs. 51 Mn compared to a turnover of Rs. 1,186 Mn and a net loss of Rs.

112 Mn in the previous year.

Strategic Foods International Co. LLC, Dubai (SFIC) Your Company acquired 70%

stake in SFIC in March 2007. For the year ended 31st December, 2007, SFIC

recorded a turnover of AED 104.02 Mn and operating profit (before finance charges

and depreciation) of AED 6.48 Mn and Net Loss of AED 3.14 Mn. During 2007 the

business

encountered severe cost challenges due to unprecedented increases in market prices of

all key commodities like flour, skimmed milk powder, etc. The Company has

implemented several cost effectiveness programs which, together with efficient

buying, managed to contain part of the input cost inflation.

Al Sallan Food Industries Company SAOG, Oman (Al Sallan) Your Company

acquired 65.5% stake in Al Sallan in March 2007. Al Sallan recorded a turnover of

RO 3.24 Mn for the year ended 31st December, 2007.

Both these acquisitions have given your Company the opportunity, infrastructure and

competence to effectively compete in the rapidly growing markets of the Middle East.

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Daily Bread Gourmet Foods (India) Private Limited (Daily Bread) Daily Bread,

another acquisition made last year, is engaged in the business of premium bakery

products. The Company registered a growth of 47% last year. It has continued to

focus on expanding its retail presence as well as drive institutional business through

addition of new customers. As a part of this strategy, new manufacturing facilities

were set up in Delhi and Hyderabad while expanding capacity at Bangalore.

Welfare Companies

M/s Britannia Employees General Welfare Association Private Limited, M/s Britannia

Employees Educational Welfare Association Private Limited and M/s Britannia

Employees Medical Welfare Association Private Limited are the three other

associates of your Company.

These are companies limited by guarantee and have no share capital. These have

been set up for general, educational and medical welfare of the employees of your

Company.

16. CORPORATE GOVERNANCE

In accordance with Clause 49 of the Listing Agreement with the Stock Exchanges, a

separate report on Corporate Governance along with the Auditors Certificate on its

compliance is attached to this Report.

17. DIRECTORS

Consequent to taking over as Chairman of the Finance Commission constituted

by the Government of India, Dr. Vijay Kelkar resigned as Director of your Company

with effect from 31st December, 2007. Your Board records its deep gratitude and

appreciation for the various contributions made by Dr. Kelkar during his association

with the Company.

Mr. Georges Casala resigned as a Director of your Company with effect from 28th

May, 2008. Your Board records its deep gratitude and appreciation for the various

contributions made by Mr. Casala during his association with the Company.

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Your Board appointed Mr. Philippe Loic Jacob as an Additional Director at its

meeting on 28th May, 2008. Mr. Jacob will hold office upto the date of the

forthcoming Annual General Meeting of the Company.

In accordance with the provisions of the Companies Act 1956 and the Articles of

Association of the Company, Mr. S S Kelkar, Mr. Pratap Khanna, Mr. Nusli N Wadia

and Mr. Francois-Xavier Roger, Directors, retire by rotation at the forthcoming

Annual General Meeting and are eligible for reappointment.

18. PARTICULARS OF EMPLOYEES

Information in accordance with sub-section (2A) of Section 217 of the Companies

Act, 1956, read with the Companies (Particulars of Employees) Rules, 1975, and

forming part of the Directors Report for the year ended 31st March, 2008 is also given

in the annexure to this report.

19. AUDITORS

M/s. Lovelock & Lewes retire in accordance with the provisions of the Companies

Act, 1956. They have indicated their willingness to continue in office and are

recommended for reappointment as the Companys Auditors for the ensuing year.

20. DIRECTORS RESPONSIBILITY

Pursuant to sub-section (2AA) of Section 217 of the Companies Act, 1956, your

Directors, based on representations from the Operating Management, confirm that:

I. In the preparation of annual accounts, the applicable accounting standards have

been followed and there are no material departures;

II. They have, in selection of the accounting policies, consulted the statutory auditors

and applied these policies consistently, making judgments and estimates that are

reasonable and prudent, so as to give a true and fair view of the state of affairs of the

Company as on 31st March, 2008 and of the profit of the Company for the year ended

31st March, 2008;

III. They have taken proper and sufficient care, to the best of their knowledge and

ability, for the maintenance of adequate accounting records in accordance with the

provisions of the Companies Act, 1956 for safeguarding the assets of the Company

and for preventing and detecting fraud and other irregularities;

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IV. They have prepared the annual accounts on a going concern basis.

21. ACKNOWLEDGEMENTS

The Directors would like to thank all stakeholders, namely, customers, shareholders,

dealers, suppliers, bankers, employees and all other business associates for the

continuous support given by them to the Company and its management.

52

Top competitors of company

HERITAGE

PRIYAGOLD

PURE FOOD

PARLE-G

NESTLE

GALXOSMITH CON

Status of the competitors

Last Price Market Cap.(Rs. cr.)

Sales

Turnover

Net Profit Total Assets

GlaxoSmith Con 930.95 3,915.16 1,592.30 188.33 646.36

Britannia 1,565.55 3,740.12 3,127.11 180.40 861.92

Lotte India 525.00 197.99 170.96 -2.14 77.67

Heritage Foods 81.65 94.14 588.03 0.94 272.44

SKM Egg Product 18.10 47.66 123.90 10.50 82.15

Agro Dutch Ind 11.45 38.43 143.47 -32.05 482.41

Sita Shree Food 10.35 22.81 95.08 1.39 56.82

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Generally all organizations have competitors in the market. A particular organization

always comprises with other same business and according to market share we clarify

the brand of product is giving more challenge to my product.

I found many products which can be compared with Britannia Biscuit. As a

conclusion I found that particularly in my provided area Britannia is really doing well

and its performance is on surprising level. During the field work and after intensive

study it was found that main competitor of PRIYAGOLD biscuits is BRITANNIA as

the market leader.

In my provided area the share of the market is as follows.

BRITANNIA 48%

PRIYAGOLD 20%

PARLE-G 16%

PURE FOOD 8%

OTHERS 8%

When we compared with other businesses then we follow the quality, price,

distribution system, promotional strategy etc. of the competitors Britannia in this area

is doing well.

So this is the comparison with other biscuits brands. According to our findings we

found that BRITANNIA is the market leader followed by BRITANNIA biscuits.

These two biscuits companies the lion's share in the 2,200 crore biscuits industry.

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Expert views:

Britannia Industries-the market leader in the biscuits industry with a 34% share in

value terms-is back on the stock market analyst’s radar. After having been through

uncertain times, especially at the management level, analysts seem to be glad at the

emerging clarity. This is despite the biscuit industry facing intense competition and

players like ITC and Priyagold taking the battle to Britannia. Overall, in volume

terms, the company was impacted as there were supply constraints in the second half

of FY08. Hence, when the industry grew by around 7% (in volume terms) in FY08,

Britannia recorded a 2.8% growth. This was largely due to reduction in pack sizes

across brands.

As players fight it across segments, Britannia has been concentrating on the premium

category where it recorded more than 20% growth in Goodday and Tiger brands in

FY08. It will work on extending the Tiger brand with new variants like Tiger Banana,

Tiger Cream, while also introducing newer Goodday variants. Analysts at Motilal

Oswal Research expect more lifestyle products, focus on modern retail and cost

efficiencies ahead for Britannia. Focus on the premium segment also allows the

company to be flexible on pricing, thereby protecting it against rising commodity

prices. Recently, it undertook a 2-12% price hike across brands by way of pack size

reduction and absolute price increases in order to ward off the continued rise in prices

of wheat, vegetable oil and sugar. It reported a 350bp increase in gross margins and

320bp increase in EBITDA margins for FY08.

Reduction in pack sizes helped here, as it cut material costs directly and also saw a

380bp decline in excise duty. The fact that the company is sitting on a treasure trove

in the form of its real estate assets also attracts analysts. However, these investments

do not directly translate into earnings for Britannia. Also, analysts are now looking at

the ability to deliver price hikes on a consistent basis, and maintain margins as well,

as its working capital requirements have grown by three times in FY08. This, if not

stemmed, could have a serious dent on net earnings.

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Product News

19 June 2009

We've made some changes to our mortgage range this week. Visit our mortgage

section to get a clear idea of what we can do for you.

We've also introduced two new fixed rate ISAs to expand our ISA range. Please be

aware that the products are limited issues and may be withdrawn at any time.

Of course it's not just our new products we're proud of! We're very proud of our

continuing range. Why not take a look at what we have to offer in

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SWOT ANALYSIS

Strength

Fulfill one of our Basic

Requirement among Air , Water ,

Food, Shelter

Widely accepted in all

Generations

Easily available in various forms

Provide good Instant Remedy for

hunger in the form of readymade

food

Preserves the non seasonal food

and makes it available all

throughout the year

Weakness

Decreases nutritional value

Increases the cost of food product

Industry and technology requires

high investment

Regular usage of processed food

can cause alteration in health

Opportunities

Increase economy of India

Generate employment opportunity

Good quality of Goods

Provide competition to foreign

companies

Improve living standard

Provide goods to nation at

cheaper rate

Inflow of foreign reserve and

funds for the govt.(taxes)

Threats

Many companies are result

oriented

Increase in pollution

Sometimes provide poor quality

of product for more profit

Lack of technology

Unable to utilize all the resources

efficiently

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EXPORTS OF THE COMPANY

USA

GHANA

SAUDI ARABIA

KUWAIT

BAHRAIN

OATAR

SEYCHELLES

SINGAPORE

OMAN

UAE

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MAJOR FINDINGS

1. Britannia is one of the biggest brand & permanent food brand in India.

2. Britannia was established with an investment of Rs.295 in Kolkata.

3. Britannia Company preserves the non seasonal food and makes it

available all throughout the year.

4. Company distributed dividend percentage increases Rs.40.00 to

Rs.180.00.

5. A large part of the company’s production of service biscuits.

6. In 1983 company sales cross Rs.100 Crores.

7. Britannia Company having high volume assets among its competitors.

8. Britannia Company one amongst top 200 small companies of the world.

9. Britannia company growth has been increasing year by year.

10. The company maintain issued capital & paid up capital in 1988 50 2004

changes but in the year of 2005 to 2008 company maintain some

standard.

11. Company may cause to increase in pollution.

12. Company increases the cost of food product.

13. Regular usage of processed food can cause alteration in health.

14. Company sometimes provides poor quality of products for more profit.

15. Company some time unable to utilize all the resources efficiently.

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SUGGESTIONS

1. Britannia Company must maintain good environment condition.

2. Company maintains proper usage of raw material value.

3. The company has to concentrate on nutritional value by that they will

attract more customers.

4. The company has to take control measures to reduction of cost.

5. Company must use the recent technology for increases the sales volume.

6. Company must decrease the cost of food product.

7. Company must follow the some measures to decrease in pollution.

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CONCLUSION

Britannia is one of the biggest biscuit company in India. Britannia

company products are popular any where in India. Company having high

volume assets among its competitors. Company preserves the non-seasonal

food and makes it available all throughout the year. Company distributed

dividend and company growth have been increases year by year. Company

has well dedicated management team to efficiently lead the company

always to the next level. So, Britannia to hold their leadership positions in

the market for long term. Finally Britannia Company is the best company

when compare to other companies.

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Reference:

www. BRITANNIA.com

www.moneycontrol.com

www.financialexpress.com.

www.wikipedia.com

www.indianfinancelevel.com

www.companyreviews.com

www.webindia.com

www.businesstimes.com

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