Analyst Meet

21st February 2011

Disclaimer
This presentation may contain statements which reflect
Management’s current views and estimates and could be
construed as forward looking statements. The future involves
risks and uncertainties that could cause actual results to differ
materially from the current views being expressed. Potential
risks and uncertainties include factors such as general
economic conditions, commodities and currency fluctuations,
competitive product and pricing pressures, industrial relations
and regulatory developments. This communication is not an
offer to sell or the solicitation of an offer to buy securities.
Will talk about

• The opportunity in food - - market, consumers, growth

• How Britannia is positioned to tap that opportunity

– Consumer & Brands
– Customers & Markets
– Go To Market Approach

• The trajectory of our performance

Food is a large and growing space

Source: Ministry of Food Processing Industries, India

http://www.worldoffoodindia.com/thefair/market_data.php
* Projected
 Mostly unbranded --- Therefore branded food is a big opportunity

Source: Ministry of Food Processing Industries, India

Industry estimates, Nielsen Retail Audit
Branded, packaged biscuits dominate food

Food Non-Food
% Contribution to total
FMCG

Total Sales (Rs Billion) 669 617

Top 5 Categories by Sales (Rs

Billion)

Source: Nielsen Retail Audit

Branded Food growth has outstripped Non-Food growth

Source: Nielsen Retail Audit

… Driven by

Income growth

Higher preference for

branded foods because
Convenience
of better quality and
sensorial experience
However there are less noticed
household/individual level shifts that have an
equally big impact on business
Key insights driving our business

• Affordable Delight

• Health and Taste

• Any Time, Any Where -- on-the-go consumption

• Indulgent Delight

• Morphing of Categories
Any Time, Any Where and on-the-go consumption
Delight that is affordable to all
Combining Health and Taste
Food as entertainment: Delighting through morphing

Rusk?

Biscuit ?

Salty Snack?
Biscuit or Chocolate?
A deep understanding of this phenomenon is
helping us diversify our portfolio
Increasing relevance and footprint of Britannia

Anytime
Main Meal
• Biscuits Anywhere • Dahi
• Rusks • On-the-go Packs • Butter. Cheese • Bread
• Cake • Time Pass • Milk • Healthy Start
• Daily Bread
In-between Meal
meals @ home Accompaniment
The Bread, Cake and Rusk Growth Story

Source: BIL
The Dairy Growth Story

190

161

139

116
100

2005-06 2006-07 2007-08 2008-09 2009-10

NSV (Indexed to 2005-06)

Source: BIL
We are ideally placed to benefit from the
current trends
Key Momentum Fulcrums

Strong Brands

Right Position
Supply Chain
in the delight
Infrastructure
Chain

Rich
Go-to-market
Innovation
Infrastructure
Funnel
Strong Brands (1)
Consumer connect

9 decades Universality of
of Appeal
Credentials

Enjoyable food that is good for you;

Anytime, Anywhere, Everyday

Delight
And Enjoyment
In every Bite

Umpteen Britannia
Special Moments
Among the top 10 brands in this country for the last 10 Years. No 1 food brand

2010
Strong Pillar Brands make for a diversified consumption foot print
Strong and versatile NutriChoice our seventh pillar brand

Digestive

Nature Spice Cracker Diabetes Friendly

5 Grain
Innovation to drive profitable growth
Activation of the Britannia Credo
The conventional Distribution infrastructure delivers to 35 Lakhs outlets. 8.5
Lakhs outlets are serviced directly

Institutions/Chain
retailers

AW
Urban Retailer
(Direct)

Wholesalers

Consumers
Urban Retailer
(Indirect)
BIL

Rural Retailer
(Indirect)

RPD

Super
Stockist Rural Retailer
(Direct) mk mkmk
And our brands are where people are

Railway Station

Coffee Day Xpress

Kiosk Corporate Canteen

CSR – Integral to our business proposition

Britannia @ PDS

Britannia at
the closing
plenary of the
CGI Annual
Meeting in
2009
Britannia – India’s Most Respected FMCG Company
The trajectory of our performance
 NSV Doubled In 4 Years

35,000

30,000

25,000
Rs. MM

20,000

15,000

10,000
05-06 06-07 07-08 08-09 09-10
NSV - Standalone 17,133 21,992 25,848 31,122 34,014
NSV - Consolidated 22,662 27,769 34,212 37,708

YTD December 10- Growth of 25%

Sustained Investment Behind Brands

10
2,800 7.9
9

2,300 6.8
Rs. MM

% NSV
8
7.0
1,800
7
6.3 6.2
1,300 6

800 5
2005-06 2006-07 2007-08 2008-09 2009-10

A & SP 1,071 1,356 1,797 2,112 2,688

YTD Dec 10 – Increase of 14%

Inflationary And Volatile Commodity Scenario….
 …..And Competitive Intensity - Impacted Profit….

…..Despite cost reduction of over Rs. 2,000 MM

1,800 PAT
Rs. MM

1,300

800
2005-06 2006-07 2007-08 2008-09 2009-10
PAT - Standalone 1,464 1,076 1,910 1,804 1,165
PAT - Consolidated 1,051 1,774 1,515 1,032

YTD Dec 10 – Rs. 1,020 MM

To Summarize

• The opportunity is large and Britannia is well positioned to exploit it

• Subsidiary losses curtailed

• Biscuit continues to be the most affordable packaged food, registering robust

growth

• Commodity inflation will stress operating margin – being addressed through

fundamental cost re-structuring and revenue management

• Investing in people, brands and infrastructure will enhance overall capability

& competitiveness
Investor Relations Contact:

invrl@britindia.com