Britannia Industries facts for kids
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Formerly
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Britannia Biscuit Company Limited |
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| Public | |
| Traded as | BSE: 500825 NSE: BRITANNIA NSE NIFTY 50 Constituent |
| ISIN | INE216A01030 |
| Industry | Food processing |
| Founded | 1892 in Calcutta 1918 as Britannia Biscuit Company Limited |
| Headquarters | , |
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Area served
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Worldwide |
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Key people
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| Products | |
| Revenue |  ₹11,878.95 crore (US$2.0 billion) (2020) |
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Operating income
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₹1,860.87 crore (US$320 million) (2020) |
| ₹1,402.63 crore (US$240 million) (2020) |
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| Total assets | ₹7,253.34 crore (US$1.2 billion) (2020) |
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Number of employees
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4,480 (as on 31 March 2019) |
| Parent | Wadia Group |
| Subsidiaries |
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Britannia Industries Limited is an Indian company specialised in food industry, part of the Wadia Group headed by Nusli Wadia. Founded in 1892 and headquartered in Kolkata, it is one of India's oldest existing companies and best known for its biscuit products. The company sells its Britannia and Tiger brands of biscuits, breads and dairy products throughout India and abroad. Beginning with the circumstances of its takeover by the Wadia Group in the early 1990s, the company has been mired in several controversies connected to its management. However, it still has a large market share and it is profitable.
History
The company was established in 1892 by a group of British businessmen with an investment of ₹295. 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 the name "V.S. Brothers." In 1918, C.H. Holmes, an English businessman based 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.
Businesses
The company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.
Biscuits
The company's factories have an annual capacity of 433,000 tonnes. The brand names of Britannia's biscuits include VitaMarieGold, Tiger, Nutrichoice, Good day, 50 50, Treat, Pure Magic, Milk Bikis, Bourbon, Nice Time and Little Hearts among others.
In 2006, Tiger, the mass market brand, realised $150.75 million in sales, including exports to the U.S. and Australia. This amounts to 20% of Britannia revenues for that year.
Also Britannia Industries has roped in Bollywood actor Salman Khan to endorse its range of 'Tiger' brand of biscuits. According to Britannia, Khan will play a role in further enhancing Tiger's core values through his association in presenting the brand, its products and promotional activities.
Dairy products
Dairy products contribute close to 10% to Britannia's revenue. The company not only markets dairy products to the public but also trades dairy commodities business-to-business. Its dairy portfolio grew to 47% in 2000-01 and by 30% in 2001-02. Its main competitors are Nestlé India, the National Dairy Development Board (NDDB), and Amul (GCMMF).
Britannia holds an equity stake in Dynamix Dairy and outsources the bulk of its dairy products from its associate.
On 27 October 2001, Britannia announced a joint venture with Fonterra Co-operative Group of New Zealand, an integrated dairy company which handles all aspects of the value chain from procurement of milk to making value-added products such as cheese and buttermilk. Britannia intends to source most of the products from New Zealand, which they would market in India. The joint venture will allow technology transfer to Britannia. Britannia and New Zealand Dairy each hold 49% of the JV, and the remaining 2 percent will be held by a strategic investor. Britannia has also tentatively announced that its dairy business (probably including Dynamix) would be transferred to the joint venture. However, the authorities' approval to the joint venture obliged the company to start manufacturing facilities of its own. It would not be allowed to trade, except at the wholesale level, thus pitching it in competition with Danone, which had recently established its own dairy business.
Performance and profitability
Between 1998 and 2001, the company's sales grew at a compound annual rate of 16% against the market, and operating profits reached 18%. More recently, the company has been growing at 27% a year, compared to the industry's growth rate of 20%. At present, 90% of Britannia's annual revenue of Rs 22 billion comes from biscuits.
Britannia is one of India's 100 Most Trusted brands listed in The Brand Trust Report. Britannia has an estimated market share of 38%.
Sponsorship
- Indian Super League 2018–present
