Britannia Industries facts for kids
 |
|
|
Formerly
|
Britannia Biscuit Company Limited |
|---|---|
| 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 | |
|
Area served
|
Worldwide |
|
Key people
|
|
| Products |
|
| Revenue |  ₹16,301 crore (US$2.8 billion) (FY23) |
|
Operating income
|
₹2,605 crore (US$440 million) (FY23) |
| ₹2,322 crore (US$390 million) (FY23) |
|
|
Number of employees
|
4,480 (2019) |
| Parent | Wadia Group |
| Subsidiaries |
|
Britannia Industries Limited is an Indian multinational food products company, which sells biscuits, breads and dairy products. Founded in 1892, it is one of India's oldest existing companies and currently part of the Wadia Group headed by Nusli Wadia. As of 2023, about 80% of its revenues came from biscuit products.
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, but it continues to hold a large market share.
Contents
History
The company was established in 1892 by a group of British businessmen with an initial 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 acquired a controlling interest in BBCo. During the World War II, the government of British India needed a continuous supply of biscuits for British soldiers. The Britannia Biscuit Company started supplying biscuits to British Army for several years, and the company sometimes devoted 95% of its capacity to produce biscuits for the armed forces. 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 acquired the parent of Peek Freans and became a major foreign shareholder. In 1978, Britannia came out with its public issue, and its Indian shareholding had increased to 62%, which firmly established Britannia as an Indian company. The 38% foreign stake was owned by the UK-based Associated Biscuits International Limited (ABIL).
In 1993, textile tycoon Nusli Wadia of Bombay Dyeing took control of the company from Britannia's then-chairman Rajan Pillai, with the help of French food giant Danone. In 2009, Wadia Group became the largest shareholder in BIL after acquiring a 25% stake owned by Group Danone.
In December 2018, it launched a new category, Treat Crème Wafers.
Britannia acquired a controlling stake in Kenya's Kenafric Biscuits in October 2022. In September 2022, Varun Berry was appointed as Executive Vice-Chairman and Managing Director of Britannia Industries Limited, and Ranjeet Kohli was also appointed as Executive Director and CEO.
In December 2022, Britannia Industries entered into a joint venture agreement with Bel SA of France and Britannia Dairy Private Limited (BDPL) to develop, manufacture and sell cheese products in India and other markets. Under the joint venture, Bel SA acquired a 49% stake in BDPL, a subsidiary of Britannia Industries, for ₹262 crore and infused an additional ₹215 crore in the joint venture.
In August 2022, the company expanded its product portfolio by entering the western snacking market with the launch of its new product, Treat Croissant.
Businesses
The company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.
Biscuits
As of 2023, about 80% of Britannia's annual revenue comes from biscuits. Britannia has an estimated market share of 33% in the organised biscuits market in India.
The company's factories have an annual capacity of 433,000 tonnes. The brand names of Britannia's biscuits include MarieGold, 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's revenue for that year.
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 the 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.
Partnerships
In March 2017, it formed a joint venture with Greek firm Chipita SA for producing and selling ready-to-eat croissants in India. In September 2021, the company partnered with Accenture to digitize the company's manufacturing units and warehouses. During the COVID-19 pandemic in India, it tied up with personal concierge startup Dunzo to deliver essential goods at the customer's doorstep in April 2020.
Philanthropy
The company has been engaged in various social and philanthropical activities. It has joined the United Nations Global Compact, the world's largest sustainability initiative, and has aligned with the Sustainable Development Goals (SDG). It supports the maritime insurance industry and provides assistance to shipowners in developing transitional methods to achieve the objectives of the Paris Agreement. Britannia P&I is an associate member of the International Maritime Rescue Federation.
It runs a non-profit Britannia Nutrition Foundation that advocates better child nutrition and addresses child malnutrition issues in India.
Awards and recognition
- In 2022, the company was ranked 4th in the list of India's most chosen FMCG brands, as per Kantar India's annual Brand Footprint report.
- Britannia won the Global Sustainability Leadership Awards by the World Sustainability Congress in 2021.
- The Economic Times listed the company's Good Day biscuit brand as the Brand Equity’s Most Trusted Brands of Indians in 2019-20.
- The company was selected for special recognition under the Leading RE Investor category at Renewable Energy India Awards 2016.
- In 2014, the company was voted as Reader's Digest Trusted Brand in India under the food and beverage category, part of the Reader's Digest Trusted Brand Survey.
- In 2014, The Economic Times ranked the company at 11 in the 100 Most Trusted Brands of India list 2014.
- The company was listed in India's Most Attractive Brands 2013 in a TRA Brand Trust Report survey.
- It was awarded the Global Performance Excellence Award (GPEA) by Asia Pacific Quality Organization (APQO) in June 2012.
- It was ranked #2 in the Brand Equity's Most Trusted Brands survey by The Economic Times.
- In 2012, Britannia received the Golden Peacock National Quality Award – 2012 under the FMCG category.
- In 2011, Britannia won the Indian Merchants' Chamber (IMC)'s Ramkrishna Bajaj National Quality Award.
- In 2011, the company received the CII's National Award for Food Safety 2011 in the category of 'Large Food Businesses - Manufacturing' by the Confederation of Indian Industry.
- According to The Economic Times' Brand Equity Survey, the brand was ranked 5th in the top 10 most trusted brands list in India in 2010 and 2nd in 2012 in India's top 10 most trusted brands list.
- Britannia is one of India's 100 Most Trusted brands listed in The Brand Trust Report.
Sponsorship
- Indian Super League (2018–present)
See also
- Parle Products
