CHAPTER – 1

INTRODUCTION
 Modern Trade
With the organized retail sector growing at 30 per cent, the contribution of large-format retail

store to the turnover of fast moving consumer goods (FMCG) firms is set to more than double in

2008. The FMCG sector has taken some steps to match the pace of growth to the organise the

retail sector. Companies have launched dedicated sales personnel for modern trade channels and

taken initiatives to boost point of purchase (POP) management at the large stores. Modern trade

refers to retailing through large-format stores whereas general trade refers toretailing through

kirana stores. The servicing needs of modern trade are vastly different from the traditional stores

and it requires a sell through approach. The exciting new formats also open up immense

opportunities for brand activation at the point of purchase. The selling skills are vastly different

and are of a higher order. A team with appropriate skill sets has been put in place within

Britannia India to respond to the requirements in modern trade and the results are most

encouraging. It has initiated a program titled DARE (Driving Achievement of Retail Excellence)

aimed at improving Britannia distribution effectiveness in organized retail sector. Industry

experts say that while the emergence of modern trade has surely altered the retail and scope in

India, the fact remain that a bulk of FMCG sales still comes from traditional trade .On an

average 95% of the sales come from kirana stores with ameager 5% coming from large format

retail stores.

For some categories of products like premium skin and hair care, organized retail contributes a

higher % of up to 50%. Secondly, the main fear of FMCG companies that modern retailers will
squeeze their margins was dispelled by the head of a leading retail chain who said in a seminar

on retail that Unlike developed countries where FMCG companies are pressed on margins by

retailers, in India since the retail sector is just picking up, retailers tend to not pressurize

companies for margins.

a) Modern Trade - A boon for certain consumer goods

Modern Trade by virtue of effective merchandise display has spurred sales of certain FMCG

categories. This is particularly true for impulse purchases made by shoppers. Food categories

such as salty snacks, cheese, biscuits, noodles, breakfast cereals and chocolate in MT clocked

over 20% growth during 2011. Even food staples, which were the exclusive domain of Kirana

stores, have successfully entered MT in the form of branded staples. In 2011, packaged rice and

packaged atta retailed through MT registered brisk double-digit growth. Apart from that, MT has

coaxed consumers to opt for more premium products. For example, refined edible oils witnessed

considerable "uptrading" from the regular edible oils to premium refined edible oils in the MT

channel in 2011. Sensing this opportunity, retailers such as Trent Hypermarket that operate the

Super Bazaar chain of stores are planning to have a separate section for health products across its

stores.

The growing popularity of MT is reflected in the fact that this retail channel is the preferred

channel for the sale of FMCG products such as packaged rice, liquid soap, floor cleaners,

breakfast cereals and air fresheners (refer chart below). FMCG companies claims that in, certain

categories, its sale volumes through modern trade are growing faster than through general trade.

This faster growth of certain product categories in MT have led to the emergence of private label

brands. These are essentially in-house "retailer" brands sold at lower prices than higher ad
spending main-frame brands. Despite the relatively recent arrival of private label products, it has

already clinched 7% of overall MT sales.

b) Modern Trade Consumers :-

With increased exposure to global brands, latest internet communications, and desire for better

lifestyle, the consumers today are looking to use the global, trendy, life-style oriented products

and are demanding more in terms of the shopping experience, simplicity, quality products, and

value.

The evolution of Modern Trade is just meeting the demands of these consumers and together

causing rapid growth in modern retail. With increased exposure to Modern Trade, the consumer

today is becoming more and more comfortable and loyal with Modern Trade. Nielsen says that a

fifth of the Urban India Shoppers now regularly shop at Modern Trade stores .

Technopak forecasts that the penetration of Modern Trade in India will triple to about 15-

20% in the next five years by 2018:-

 (Fig 3.3)

c) From the consumer point of view, modern trade results in:

i) Consumers feel that they are smart buyers

ii) Increased availability of choice in brands and categories

iii) Promises better prices and value to the consumers

iv) Better quality products

v) Enjoyable shopping experience with product and brand voyeurism

vi) Perceptual benefits of improved standard of living

d) Consumers feel smart as they have more control in Modern Trade

With increased brand choice, freedom to browse the products, and the visibility of deals and

promotions, the modern trade consumer perceives his buying experience as a smarter way of

buying things. It also leads to the consumer willing to experiment more, buying new brands and

categories in the modern trade store. It is observed that the modern trade consumers look to buy

large packs and aggressively look for promotions, trying to get more value out of every buy.

e) A family shopping experience with enjoyable product and brand voyeurism

i) The modern trade consumer is most likely to be accompanied by family and friends, and is not

so likely to shop alone. It is increasingly seen that kids sit in the shopping cart, and the mother

and father discussing about the product. This increases the fun in the buying experience and

provides more opportunity for the retailers to increase the basket size and increase interaction

with wide array of brands.

ii) Moreover, the large displays, islands, and the strict arrangement of brands always make the

consumers be voyeuristic of the brands and products. This makes them checkout products that

were never in their consideration and drop it in the basket. Modern Trade consumers’

willingness to buy new products and niche variants is making manufacturers add high-end

variants to upgrade the consumers.

f) The rise of mini-modern stores to meet the “modern consumer” needs

i) The Sarvodaya supermarket in Mumbai is an example of a growing trend of traditional stores

adopting modern practices to meet changing consumer needs. There are about 100 such stores in

Mumbai, and this trend is soon catching up in smaller towns too.

ii) The future implications of Modern trade evolution are obvious as more and more consumers

flock to the modern trade stores, and as more global retailers look to enter India after the FDI

approval.

g) Modern Trade Trends :-

i) Modern Trade is expanding rapidly globally and constitutes a major portion of retail trade.

ii) In the Gulf alone: The modern trade has a share of 60% of the retail business.

iii) Global research shows that for every dollar spent 50 cents is on the big basket shopping

iv) International & Domestic/Regional players are driving this trend to take advantage of the

change in shoppers buying behavior.

v) This growth is inevitable in India with big International and domestic

players ready to take a big slice of the large market.

vi) Hypermarkets carry on assortment of over 70,000 SKU’s as compared to a grocery which

carries a 1,000.

vii) The service requirement of these stores is intense from a supply and merchandising needs.
viii) A high frequency of promotional activities would require the supplier to be flexible.

ix) Entrance of modern trade with the large format hypermarkets or supermarkets throws up

several challenges to FMCG producers/distributers.

h) Importance Of Modern Trade in respect to supply chain :-

The job of Modern Trade and the FMCG companies is shopper value creation so that both can

mutually benefit.

i) Shopper value creation comprises of :-

1) Quality of Product

2) Cost of Product

3) Efficient price and promotion

4) Efficient assortment

5) Efficient introduction of new product.

i) How does supply chain change with emergence of Modern Trade :-

Challenges :-

1) Just in time inventory

2) Electronic coding of SKU’s

3) Measures on delivery reliability

4) virtual warehousing

5) Turnaround time at delivery point.

6) Frequencies of delivery

7) Retail customer specific SKU

8) Damages and returns

9) Shelf out of stock

Learning’s

Re-assess capability of the organization

People –

1) Skill set

2) Quality/Numbers

3) Multi-functional Teams

4) Training and development

Business Processes

1) Demand forecasting
2) System enhancement

3) B to B

4) Joint Business planning

5) True score carding

Infrastructure

1) Warehousing space

2) Automation

3) Palletization

4) Vehicles

Product Specification

1) Ready to sell

2) Electronic Coding

Cost implications/Payoffs

1) Investment in infrastructure

2) Automation
3) People Cost

OBJECTIVE :-

a) The primary objective of this study is to study the Modern Trade Process of Britannia

Industries Limited and to study its impact on sales.

b) To know, if the sales of the company has increased due to modern trade practices.

c) To study the difference between the Modern Trade and Traditional Trade.
 Scope of Study

(A) Data Collection

Data collection is a process of collecting data about the company in various fields such as

Marketing, HR, Production and Operation, IT etc. The data from all these areas is collected to

get a picture of how the company is performing its various functions and how it’s getting the

work done in a smooth and efficient manner. It is done under some of the heads that are :-

3.1) Human Resource Department :-

Not many companies can boast a 100-year distinguished history, and fewer still can be linked

with stakeholders and markets across continents. This superlative trajectory not with standing, at

Britannia it's always been recognized that none of it would have been possible without the

people. Over the years, Britannia has been associated with many brilliant careers, and evidence

of the success of its strategic-yet-friendly people policies is to be seen in the current crop of

management and staff and indeed the performance of the company itself.

Part of the allure of working at Britannia emanates from our strong belief in nurturing people so

they can get in their full stride. The other aspects that make Britannia a coveted destination

include proffered opportunities for growth, and that 'idea leadership' and 'accountability' are

encouraged every step of the way.

Today, with the extraordinarily dynamic and adaptive people we attract, Britannia is fully geared

for the new-age business paradigm. The search for young, enthusiastic talent is always on at

Britannia. The work culture at Britannia is characterised by strong performance focus coupled

with result orientation.

3.11 Fair Employment Practices and Diversity

Britannia believes that diversity in our staff is critical to our success as an organization, as we

seek to recruit, develop and retain the most talented people from a diverse candidate pool.

Advancement at Britannia is based on competencies and performance. Britannia is committed to

providing equal opportunities to all the employees and all qualified applicants for employment

without regard to their race, caste, religion, colour, ancestry, marital status, sex, age and

nationality.

All employees and their immediate superiors, regardless of level, shall endeavor to meet the

following objectives:

a) Respect each employee, customers and their representative of suppliers and contractors as an

individual, showing courtesy and consideration and fostering personal dignity. Encourage

employees to voice their opinions freely about the policies and practices of the company by

communicating and practicing Britannia policy.

b) Keep colleagues and co-workers generally informed of the policies, plans and progress of the

company through regular communications, afford colleagues and co-workers a reasonable

opportunity, consistent with the needs of the company, for training to become better skilled in

their roles.

c) Encourage promotion from within, consistent with the needs of the company, whenever

qualified employees are available.

d) Assure uniformly fair compensation and benefit practices that will attract, reward and retain

quality employees.

3.12 Maintaining Discipline at workplace

Britannia endeavors to maintain the best of employment practices and envisages a mutual

commitment between the company and employees towards effectively maintaining the same.

Discipline, therefore, would include:

a) Punctuality and respect for time

b) Good housekeeping, cleanliness

c) Limited personal telephones / e-mails during office hours

Britannia also expects compliance to the following by all employees and directors while

executing individual responsibilities:

a) High level of service orientation

b) Honoring commitments

c) Meeting reporting timelines

d) Respecting and understanding the requirement of jobs of other colleagues

e) Doing the job without follow ups

f) Transparency and openness

g) Working collaboratively across geographies and functions

h) Looking after employees' development needs

i) Focusing on results

j) Taking personal responsibility and ownership

3.13 Privacy of Employee Information

Britannia recognizes and protects the privacy and confidentiality of employee medical and

personnel records. Such records must not be shared or discussed outside Britannia, except as

authorized by the employee or as required by law, rule, regulation or court summons or order

issued by a court of competent jurisdiction or requested by a judicial or administrative or

legislative body. Requests for such records from anyone outside the company under any other

circumstances must be approved by the Compliance Officer.

3.14 What makes a Britannian ?

People Working with Britannia are called “Britannians”. They are extraordinary individuals who

are passionate about everything they do. Create inspiration through everything they do , and

succeed in everything they do. Britannian’s are hand-picked for a singular purpose, to

perpetually ensure Market Leadership and generate exemplary performance in every function.

Britannians exhibit the following leadership behaviors (we fondly call BULBs – Britannia

Universal Leadership Behaviors) :-

a) Integrity

b) Team Orientation

c) People Development

d) Learning Orientation

e) Customer Orientation

f) Quality Orientation

g) Drive for Results

h) Entrepreneurial Spirit

i) System and Process Orientation

j) Communication
3.15 The Gateway :-

a) Entry Level Recruitment

i) Management Training / Officer Trainee

b) Lateral Recruitment

c) Eligibility: For people with 2 or more years of experience

d) Functions one can join (based on actual vacancies):

i) Sales

ii) Marketing

iii) Research and Development

iv) Quality Assurance

v) Exports

vi) Legal, Administration and Supply Chain

 vii) Finance and IT

viii) Human Resources

3.16 Recruitment process:

a) Application (online / through consultant / Direct / Employee Referrals)

b) Shortlisting

c) Interview (multiple rounds)

d) Final Offer

e) Pre Employment Medical Examination

f) Appointment

3.17 Management Training Program:-

a) Nurturing Tale

An innovative company like Britannia is always on the lookout for innovative, young minds. The

Management philosophy encourages nurturing of talent through grooming of bright and young
entry-level managers. The organisational culture provides a perfect blend of fun and learning that

helps in the overall development of talented individuals recruited into the system.

Today, with a huge variety of professional institutions spread across the country, there is a

broader canvas to choose from. The main sources of recruitment of Management Trainees are:

i) Business Schools (MBA)

ii) Engineering Institutes

iii) Food Technology Institutes

iv) ICAI/ICWAI/ICSI/ICFAI and other such institutes offering professional courses

An alternative route is for candidates to apply directly to Britannia or through a recruitment

consultant. The distinguishing factor between MTs and other lateral hires would be in terms of

their experience and qualifications. In this case, however, candidates may or may not have prior

experience. For experienced candidates, 1 year or less would be the maximum cap to be eligible

for the Management Training Scheme.

b) Campus - Campus recruitment has two stages, viz. Summer Trainee Recruitment and

Management Trainee Recruitment. Summer Training takes place for a period of two months

where students from Business Schools and Functional Institutes (Engineering/Food

Technology/Finance) work on projects with Britannia in the following functional areas -

Marketing; Sales and Distribution; Operations and Supply Chain; Human Resource

Management; Finance and Quality Assurance. Summer Trainees at the end of their training

tenure are taken through an evaluation process to assess placement within the company as
Management Trainees. This happens through a Pre-Placement Interview by a panel that assess

the candidate on his/her project and his/her potential to fit into the organisation.

c) Management Training - Management Trainees are recruited on the basis of actual vacancies

in the system. They are recruited either through Pre-placement offers made to exceptional

Summer Trainees or through direct Campus Recruitment. MTs join the covenant grade as

Management Trainee - (function), and are absorbed into the following functions - Sales and

Distribution; Operations and Supply Chain; Human Resources; Finance and Quality Assurance.

The Marketing function has so far been insulated from the Management Training Route as entry

level marketing positions require knowledge of Sales or prior knowledge of Marketing (lateral

route).

d) The Program - Once MTs are on-board, they are taken through a series of carefully designed

Training Modules that encompass almost all functions of the business. The Training Modules are

interspersed with live projects in different functions to test their knowledge and problem-solving

abilities. Ideally, any Management Trainee would need to complete at least 2 live projects related

to his/her stream of interest and 1 live project in a related function or a function of choice. At the

end of the training period, all MTs are assessed on the basis of their learning and project

performances by a cross-functional panel consisting of Functional Heads. On successful

completion of their Training Program, MTs are confirmed as Managers in their respective

functions. The total tenure of Management Training is 18 months for a Technical Trainee

(Engineer/Food Technologist) and 12 months for all other trainees.

3.2) Finance Department :-

Every business needs funds for two purposes for its establishment and to carry out its day- to-day

operations. Long terms funds are required to create production facilities through purchase of

fixed assets such as plant and machinery, land, building, furniture, etc. Investments in these

assets represent that part of firm’s capital which is blocked on permanent or fixed basis and is

called fixed capital. Funds are also needed for short-term purposes for the purchase of raw

material, payment of wages and other day – to- day expenses etc.

These funds are known as working capital. In simple words, working capital refers to that part of

the firm’s capital which is required for financing short- term or current assets such as cash,

marketable securities, debtors & inventories. Funds, thus, invested in current assets keep

revolving fast and are being constantly converted in to cash and this cash flows out again in

exchange for other current assets. Hence, it is also known as revolving or circulating capital or

short term capital. Britannia is a production oriented company and it needs a huge amount of

working capital to meet there day to day financial needs.

3.21 Annual Performance 2012-2013

In an increasingly competitive market place and continuing commodity inflation during the year,

Profit from Operations increased 35.6%, from Rs. 231.91 crores to Rs. 314.45 crores. Against an

overall revenue growth of 12.5%, several of your Company’s iconic brands grew at a

significantly higher rate, whilst a few were laggards. Company has added Rs. 644 crores to its

Operating Revenue (Sale of Products) and Rs. 82.54 crores to its Profit from Operations.

Earnings per share (Basic) of Rs. 2 were Rs. 19.57. The tables below show trends in performance

across key parameters :-

 (Fig 3.1)

(Fig 3.2)

3.22 Significant Ratios :-

Measures of Investment:- 2012-13 2011-12

 Net Profits
Return on equity % 36.7 35.9
Shareholder’sFund

Shareholder’s fund
Book value per share Rs 53.2 43.5
Number of Equity shares

Earnings per share(Basic)

Dividend Cover times 2.0 1.6
Dividend(plus tax)Per share

Measures of Performance -

Profit before tax

Profit Margin % 5.9 5.0
Revenue from operations + other
incomes
Sale of products
Debtors Turnover times 73.3 96.0
Trade Receivables

Sale of products
Stock Turnover times 40.7 39.2
Inventories(Finished goods +
Stock in trade)
Measures Of Financial

Status

Long term borrowings+short

Debt-Equity Ratio % 33.9 83.6
term borrowings +current
maturities of long term debt and
finance lease obligations
Shareholder’s fund
Current assets
Current Ratio times 0.8 1.5
Current liabilities

Provision for tax

Tax Ratio % 29.6 26
Profit before tax

3.24 Insider Trading

Britannia policy and the laws of India prohibit trading in the securities (including equity

securities, convertible securities, options, bonds and any stock index containing the security) of

any company while being an employee of that Company and being in possession of material, non

public information (also known as "inside information") regarding the company. This prohibition

applies to Britannia securities. It applies to transactions for any Britannia account, client account

or personal account. A personal account is any account in which you have a financial or

beneficial interest or the power to affect or ability to influence trading or investment decisions,

either directly or indirectly. Personal accounts typically include accounts of spouses, children

and other members of your household, and accounts over which you have investment discretion.

If you believe you have come into possession of inside information, you may not execute any

trade in the securities of the Company without first consulting with the Compliance Officer, who

will then determine whether such trade would violate Britannia policy or applicable laws. The

definition of "material, non public information" is broad. Information is "material" (and hence,

potentially subject to the prohibition on insider trading) if there is a substantial likelihood that a

reasonable investor would consider the information important in determining whether to trade in

a security, or if the information, if made public, likely would affect the market price of a

company's securities. Information may be material even if it relates to future, speculative or

contingent events, and even if it is significant only when considered in combination with

publicly available information. Information is considered to be "non public" unless it has been

publicly disclosed, and adequate time has passed for the securities markets to digest the

information. Examples of adequate disclosure include public filings with securities regulatory

authorities and the issuance of press releases, and may also include meetings with members of

the press and public. It is also illegal in India to "tip" or pass on inside information to any other
person if you know or reasonably suspect that the person receiving such information from you

will misuse such information by trading in securities or passing such information on further,

even if you do not receive any monetary benefit from the person passing the tip.

3.25 Dividend record of the company :-

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 15 years are as under:

(Table 3.3)

3.3) Production and Operations :-

Britannia comes under the FMCG sector and has great importance in serving the biscuits in India

and overseas also. Britannia has its operating plants at various locations of India. Britannia deals

with the production of Biscuits, Cakes and Breads. Operation Department and supply chain

management in Britannia plays a vital role in smooth working of business and making a

company a profitable company. Every production company has to undergo the operating cycle

Period.

3.31 Operating Cycle Period:

The length or time duration of the operating cycle of any firm can be defined as the sum of its

inventory conversion period and the receivable conversion period.

a). Inventory Conversion Period (ICP): It is the time required for the conversion of raw materials

into finished goods sales. In A manufacturing firm the ICP is consisting of Raw Materials

Conversion Period (RMCP), Work-in-process Conversion Period (WPCP), and the Finished Goods

conversion Period (FGCP). RMCP refers to the period for which the raw materials are generally kept

in stores before it is issued to the production department. The WPCP refers to the period for which

the raw materials remain in the production process before it is taken out as a finished unit.

b) Receivable Conversion Period (RCP): It is the time required to convert the credit sale into cash

realization. It refers to the period between the occurrence of credit sales and collection from debtors.

The total of ICP and RCP is also known as total operating Cycle Period (TOCP). The firm might be

getting some credit facilities from the supplier of raw materials, wage earners etc. this period for

which the payment to these parties are deferred or delayed is known as Deferred Period (DP). The

Net Operating Cycle (NOC) of the firm is arrived at by deducting the DP from the TOCP.

3.32 Material Flow Diagram Of Britannia :-

VENDORS/SUPPLIERS OF RAW MATERIALS

RECEIVING AND INSPECTION

FACTORY STORES

PRODUCTION / MANUFACTURING
 LOGISTICS (TRANSPORTATION AND SHIPMENTS)

WAREHOUSING

3.33 The Biscuit Making Process

(a) Mixing: This is a process where all ingredients are put together in right proportion for dough

formation. These ingredient are then fed into Mixers where mixing is done and dough is prepared

for molding .Major ingredients are flour, fat, sugar and others as per the product one would like

to have.

(b) Moulding: In this section we laminate the dough into sheet which then passes down to gauge

rollers and sheet thickness achieved for cutting. Here we have a cutter or a moulder as per the

variety where one gets the shape and sizes of biscuits.

(c) Baking: This is the area where we pass these moulded wet biscuit into baking oven The

biscuits are baked on desired temperatures. Various type of heating are available now days as per

the convenience and cost.

(d) Cooling: These baked biscuits are then passed on to cooling conveyors for natural cooling

prior to packing. The temperatures are brought down to room temperature.

(e) Packing: These biscuit are then stacked and fed into packing machine for packing. Different

packing material are available for packing of these biscuit in different packs .slug packs, pouch

pack or family packs etc. These packs are then put into secondary packaging like cartons to be

transported to retailers.
3.34 Bakery equipment and machinery

(a) Mixers

Z type twin arm mixers, dual speed mixers, single speed mixers, front loading mixers, top

loading mixers, vertical type- two or three spindle.

(b) Gauge rolls

Pre sheeter, two stand rolls, three stand rolls, four stand rolls.

(c) Oven

Electric type, direct heating type, indirect heating type, hybrid type, mark I, II, III.

(d) Conveyor

Cross conveyor, cooling conveyor, packing table conveyor, scrap return conveyor.

(e) Packing machines

Vertical pouch feeling machines, cream sandwich machines, horizontal flow rap machines.

(f) Spray machines

Oil spray unit, salt and sugar depositors

(g) Refrigeration equipment

Cold storages, direct expansion type chillers

(h)Material handling equipments

Pallet truck, power conveyor, floor mobile crane, trolleys, Forklift

3.35 Biscuits and classification

The word biscuit is derived from a Latin word “Panis biscotus” which means twice baked bread

and refers to bread rusks that were made for mariners. These are baked products made from

dough using flour, fats, liquid (water, milk, eggs), salt, sugar, leavening agents and flavouring
agents. Based on the dough characteristics dough making procedures, biscuit are of the following

two types:-

(a) Soft dough biscuits

The dough consists of wheat flour (maida) obtained from soft wheat, having low protein content,

less elastic, contains high fat and sugar, single step method.

(b) Hard dough biscuits

The dough consists of wheat flour (maida) obtained from hard wheat, having high protein

content, elastic dough, contains low fat and sugar, two step method (fermented variety)

3.36 Supply chain and manufacturing operations

Britannia has been focusing on improving operational efficiencies in Supply Chain and

Manufacturing. New biscuit manufacturing facilities at Hajipur, Khurda and Madurai were

optimally utilized. It has added a state-of-theart facility for cake manufacturing at Rudrapur and

along with its co-packer, a reenfield factory for biscuit manufacturing at Hyderabad. Capacity

and capability continued to be enhanced both in the company’s manufacturing units and co-

packers. All these have helped in creating the right capacity with superior technology to better

serve the market. Additionally, fiscal benefits in several of these regions have helped contain
cost. To improve the back-end planning process and availability, it is in the process of

implementing Advanced Planning & Optimizing (APO) which is progressing as per plan.

3.4 ) Information Technology (IT)

3.41 Britannia Konnect

The company implements best in class Supply Chain IT capabilities enabled through SAP to

transform and integrate end-to-end supply chain covering demand, capacity, production and

material planning. This will enable dynamic demand planning and accurate forecasting in both

the short and long term and provide the capability to quickly respond to changing market needs.

It has also successfully implemented a handheld based system to enable its sales people to drive
efficiencies in generating and servicing retail orders. ‘Britannia Konnect’ is another world class

capability that was launched during the year to enable tighter collaboration, communication and

knowledge management within the organization. In 2013-14, the company proposes to build

powerful IT capabilities for marketing.

3.42 Internet-Based Software

a) Britannia is a hosted solution. You can manage and grow your business without unnecessary

IT expenses. You access the software over the Internet while we handle server security, item file

loads, back-ups, and routine maintenance — a dramatic savings in hardware and labour.

b) Britannia users also enjoy trouble-free, overnight system updates. When a new version of the

software is released, it is automatically loaded for all Britannia users.

c) Employees can access business data from home—or any other location. All they need is a

Web browser and Internet connection.

3.43 Part of IT Strategy

a) Create Objectives, Annual Goals, forecast cost saving, procurement requirement.

b) Track objectives and do a Quarterly Analysis to management.

c) Explore on new Technology, Present to management on benefits of adoption (open source or

proprietary)
d) Identify areas for Improvement, Plan, pool resources and work with Project management team

e) Active role in global IT management, Project review committee and Change management

f) Business continuity management /Disaster recovery Management for India.

g) Member of India Technology Management group, Represent IT LOB.

3.5) MARKETING :-

3.51 Products of Britannia :-

a) Tiger Biscuit
Britannia Tiger, one of the biggest brands in the kids segment, has re-invented itself to

revolutionize the concept of kids' nutrition in the country. Equipped with a new vision of leading

the kids' nutrition space, Britannia Tiger has revamped its offerings to embody fun and energy on

one hand and health and nutrition on the other. Enriched with growth nutrients across all its

variants -Glucose, Krunch Cookies and Creams, Britannia Tiger comes with the credo of 'Roz

Badho Aimed at addressing every mother's concern on their kid's nutrition, Britannia Tiger has

undergone a considerable shift in its product offering, transforming itself into a healthier and

tastier avatar. Identifying the role of biscuits as a important component of daily food and a major

carrier of nutrition, Britannia Tiger fortifies itself, across categories, with growth nutrients like

iron, calcium, folic acid, vitamin A and D*. Packed with 25% of daily growth nutrients (every

100 gms).

b) Britannia Nutrichoice oat Cookies

For the first time in India we have Britannia NutriChoice 'Diabetic Friendly' Essentials specially

designed for people with diabetes. There's no longer a need to avoid snacks or go hungry while

traveling or at work. Rather approach snacking in a healthy way with our Oat Cookies.Britannia

NutriChoice Oat Cookies are scientifically created to suit the special lifestyle and nutrition needs

of diabetics to manage extreme swings in blood sugar. They are tasty, crunchy and convenient

option for those mid-meal pangs. In addition, the oat fiber lowers rise in blood sugar, helps

control blood cholesterol and helps you feel satisfied and active for longer

c) Britannia Nutrichoice Ragi cookies

For the first time in India we have Britannia NutriChoice 'Diabetic Friendly' Essentials specially

designed for people with diabetes. There's no longer a need to avoid snacks or go hungry while
traveling or at work. Rather approach snacking in a healthy way with our Ragi Cookies.

Britannia Nutri Choice Ragi Cookies are scientifically created to suit the special lifestyle and

nutrition needs of diabetics to manage extreme swings in blood sugar levels. They are tasty,

crunchy and convenient option for those mid-meal pangs. Ragi helps lower blood glucose levels

and in a rich source of magnesium, which is instrumental for the production of important

enzymes. Our Ragi Cookies are a good source of fiber, both soluble and insoluble, for heart and

digestive health.

d) Veg Cakes

Britannia Veg Cakes is every vegetarian's dream come true! 100% vegetarian cake with all the

softness and delight a cake should have. Every slice is soft and fluffy, stuffed with real fruit bits,

to give you a cake that is truly delicious, down to the last slice. Add to this zero cholesterol and a

3 month shelf life and you have a healthy, convenient snack to enjoy any time, anywhere. Grab a

pack of Britannia Veg Cake today. Masti ka Green signal.

e) Nutrichoice Health Starter Kit

2010 - Britannia Nutrichoice launches a New Year pack - the Nutrichoice Health Starter Kit.

Created for everyone who makes a New Year resolution to become healthy and does not follow

through on it. The Health Starter Kit contains a range of healthy biscutis - 1 pack each of

Nutrichoice Hi-Fiber Digestive, Nutrichoice 5 Grain and Nutrichoice Nature Spice Cracker. It

also has a one week free pass to Talalkars gym that entitles every consumer to one week free trial

of any Talwalkars (TBVF ltd) gym across the country. In addition to this the pack also contains a

Fit Sip Sipper and a fitness chart. All this for only Rs 100
f) Treat Fruit Rollz

All kids who have relished the yummy creamy treasures of Britannia Treat in exciting flavors,

have yet another reason to celebrate! Britannia Treat launches the amazingly yummy Treat Fruit

Rollz!! These tasty soft rolls are filled with real fruits and provide a healthy yet mouth-watering

treat to the kids. Fruit Rollz comes in four masti fruit flavours - Juicy Apple, Strawberry

Surprise, Tangy Orange and Delicious Dates!

They make the best tiffin treats! So during snack time what better than to munch on the delicious

and healthy Fruit Rollz and discover the yummy fruit flavor from within the shells. Keeping up

with Britannia's platform of 'taste bhi, health bhi', Fruit Rollz is indeed a yummy snacking option

for kids, while keeping the Moms assured about the goodness provided by the fruit filling.

g) New Britannia Milk Bikis

Milk Bikis, the favourite growth partner of Kids, now brings greater value and delight to all with

its new product and pack design. Recently re-launched in its existing Southern & Eastern

markets, and extended across India, the new Milk Bikis is all set to add excitement and appeal to

‘nutritious’ food. Whoever said that ‘good food’ needs to look ‘dull and boring’, will just have to

take a look at Milk Bikis. With a unique and attractive honeycomb design and an enhanced

product experience, the new biscuit prompts the ‘Kid’s will love it’ reaction amongst mothers.

The milk goodness in the recipe is now enhanced with SMART NUTRIENTS – 4 vital vitamins,

iron and iodine, proven to aid mental and physical development in growing kids. The premium

packaging, besides appealing to kids, also ensures that the biscuits remain fresh and crisp.

So, whether its breakfast time or snack time at school, rest assured that kids will look forward to
munching these crunchy, milky biscuits which even helps in their development. And yes, adults

won’t be far behind in reaching out for a pack.

3.52 Pricing of Britannia Products:-

a) Britannia follows the strategy of Market – Penetration Pricing for the products like TIGER

b) Product quality leadership pricing for Goodday and Treat

c) Special Event pricing in festive season.

3.53 Price Range of products :-

Product Name Weight Price (RS)

Britannia Good Day Coconut Butter Biscuit 180gm 35

Good Day 90gm 12

Good Day choco nut cookies 90gm 15

Good Day 180gm 23

Good Day 180gm 23

Mariegold 337gm 25

Milk Bikis Milk cream 89gm 5

Milk Bikis 128gm 10

Marie Gold 171gm 13

Marie Gold 69gm 5

Yummy choco Cakes 145gm 22

Nutri choice Hi fibre 250gm 38

Treat Choco 67gm 10

Pure Magic chocolate Cream 150gm 20

Tiger Orange 128gm 10

Nutri choice 100gm 25

50-50 165gm 16

50-50 Maska chaska 66gm 10

Nice time 133gm 14

(Table 3.4)

3.54 Promotion Policies

a) Promotions have been the chief propeller for growth of Britannia. Britannia has gained the

edge by creating an “emotional surplus” for the Britannia brand through effective

communication and providing products for different moments of consumption. Another equally

important move is exciting the consumers with new products.

b) Among the biggest promotions in 2001 was Britannia’s glucose biscuit brand TIGER tie-up

with the hindi film blockbuster LAGAAN. Biscuits market has become the third largest category

in terms of promotions after toothpastes and toiletries- in the last one year. The launch was

supported with an advertising campaign extending to print POS (Point – of – sale) materials and

outdoor branding.

c) Britannia always takes the advantage of major events for the promotion of their biscuits. In

1999 Britannia focused on the world –cup. Britannia gained most from World cup promos. They

made a punchline “Britannia Khao, World-cup jao”. It has emerged as the most recalled sales

promotion among all world-cup related sales-promotion. The campaign was a continuation of the

success stories of “Britannia Khao, world cup jao” in 1999. The promotion offered 100 cricket

enthusiasts an opportunity to visit south Africa and cheer the Indian team.

d) Another strategy has been to indulge in cross-promotions. In 2000, the company offered a

Little Hearts biscuit packet (Priced at Rs3) free with the purchase of a 300gm pack of TIGER.

This also helped in pushing trials for the Little Hearts Brand.
COMPANY PROFILE-
Name of a Company – BRITANIA PRIVATE LIMITED
Address of the company :-

Registered Office Executive Office

5/1/A Hungerford Street Britannia Gardens

Kolkata – 700 017 Airport Road(old) , Vimanapura

West Bengal Bangalore – 560 017

Ph : 033-22870505/22872439 Ph : 080-3940 0080

Research and Development Centre Mumbai Office

194 , MTH Road , Padi Neville House , 1st Floor

Chennai – 600 050 Currimbhoy Road , Ballard Estate

Tamil Nadu Mumbai – 400 001

Ph : 044-3021 6000 Maharashtra

Fax : 044-2625 8563 Ph : 022 – 2261 8071

Kolkata Chennai

15 , Taratola Road MTH Road , Padi

Kolkata – 700 088 Chennai – 600 050

West Bengal Tamil Nadu

Ph :033 – 3043 7069/3043 7041 Ph : 044-30216000/30216001

Fax : 033-24014456/24014451 Fax : 044-26258568/26254872

Mumbai Delhi

Reay Road East 33 Lawrence Road

Mazgaon New Delhi – 110035

Mumbai – 400010 Ph : 011-3078 8000

Maharashtra Fax : 011 – 27183499

Ph : 022 3000 8500

Fax : 022 3000 8545

Odisha Uttaranchal

Plot no F21 Industrial Estate Plot no 1 , Sector 1

Khurda – 752057 Integrated Industrial Estate

Dist Khurda, Odisha Rudrapur , Pantnagar

Ph : 067465 50655 Udham singh Nagar Dist.

Uttaranchal – 263153

Ph : 05944 – 304814

Fax : 05944 – 250 202

Website of the Company : http://www.britannia.co.in/
Britannia was incorporated in 1918 as Britannia Biscuits Co Ltd in Calcutta. In 1924, Peak

Freans, UK acquired a controlling stake, which later passed on to the Associated Biscuits

International (ABI) a UK based company. During the 1950 and 1960 Britannia expanded

operations to Mumbai, Delhi and Chennai. The exports of sea foods started in the 1970. In 1987,

Nabisco Brands Inc, a well known European food company, acquired ABI. In 1989, J M Pillai, a

Singapore based NRI businessman along with the Group Danone acquired Asian operations of

Nabisco, thus acquiring controlling stake in Britannia. Later, Group Danone and Nusli Wadia

took over Pillai’s holdings.

In 1977, the Government reserved the industry for small scale sector, which constrained

Britannia's growth. Britannia adopted a strategy of engaging contract packers (CP) in the small

scale sector. This led to several inefficiencies at the operating level. In April ’97,the Government

deserved the industry for small scale sector, which constrained Britannia's growth. Britannia

adopted a strategy of engaging contract packers (CP) in the small scale sector. This led to several

inefficiencies at the operating level.

In April ’97, the Government deserved the biscuit sector from small scale. Britannia has

expanded captive manufacturing facilities and has modernized and upgraded its facilities in the

last five years. Today Britannia is an organisation having its presence in both the national and

international markets and heading towards a bright future. Britannia's controlling stake is jointly

with Group Danone and Nusli Wadia. Group Danone is one of the leading players in the world in

bakery products business. It acquired interest in Britannia Industries in 1989 and acquired

controlling stake in 1993. Nusli Wadia group is one of the leading industrial houses in the

country, with interests mainly in textiles and petrochemicals.

Britannia's plants are located in the 4 major metro cities - Kolkata, Mumbai, Delhi and Chennai.

A large part of products are also outsourced from third party producers. Dairy products are out

sourced from three producers - Dynamix Dairy based in Baramati, Maharashtra, and Modern

Dairy at Karnal in Haryana and Thacker Dairy Products at Howrah in West Bengal. Britannia as

a company was started in 1892 in Calcutta .The Britannia brand was introduced about 80 years

ago, and today enjoys a status of the strongest food brand in the country with a net sales growth

of 10%. Britannia, as a company, is guided by the benefits of the long tradition coupled with the

most modern management practices.

The seeds of success are rooted in variety of factors. Britannia has an excellent distribution

network of over 100 stock- keeping units, 3000 employees, over 1500 authorized whole-sellers,

53 depots and 46 factories. Britannia sells around 1.50lakhs tones of biscuits, over 4500tonnes of

breads and cakes and 3,000tonnes of dairy products. Britannia products are sold in over 2 million

outlets, reaching millions of consumers who buy approximately 2.4 billion packs every year.

Throughout its existence, Britannia has operated on the principle of providing products to

consumer that are healthy and tasty. This is brought about by the use of high quality ingredients

with a string focus on “naturalness” and modern manufacturing practices. The company today

has a wide range of bakery products in the biscuit, bread and cake segments. With its pioneering

role in bakery sector, Britannia’ has an excellent value wholesome and hygiene products for the

consumer. However, Britannia sees its role as being larger than just this. The company has a

commitment to the health of Indian masses, and this commitment is especially strong in the

context of children. As the market leader, Britannia understands its responsibility of providing

the possible products to the consumers. No effort is spread in acquiring the finest technology and

products ideas, either indigenously or from the internal associates, Group Danone of France.
In the last few years, the company has made a strong entry into the mass-market segment with

tiger brand. A range of products has been introduced which, apart from the goodness of wheat,

also provide the benefits of milk, glucose and calcium. The brand has been welcomed by the

consumer in all markets and by all consumer types.

Britannia brand name has always stood for good wholesome food values. Britannia is the

epitome of health, hygiene and nutrition. It has undergone a change, which is truly

comprehensive in nature. The dynamic new motto “EAT HEALTHY,THINK BETTER” is

designed to indicate the very essence of purity, energy and freshness, implicit in all its food

products along with the existing products they have also expanded their portfolio with the

introduction of Britannia cheese and cheese spreads, Britannia butter and Britannia dairy

whitener.
Mission and Vision of the Company

Vision -

a) To dominate the food and beverage market in India through a profitable range of tasty yet

healthy products.

Mission –

a) Reduction in consumer complaints.

b) To start documentation of market returns dealer wise.

c) To empower the workmen on individual work area to ensure that only quality products are

passed onto the next stage of production.

d) Continuous training for the development of the human resources.

e) To minimize the accident rate.

Product Range of the company :-

Biscuits

BRAND DESCRIPTION

CREAM TREAT Sandwich Cream Biscuit

CHEKKERS Wafer Cream Biscuit

GOOD DAY Biscuits with Real Butter

NUTRI CHOICE Health Biscuits

MILK BIKIS Milk Biscuits

TIGER Health Force Biscuits

MARIEGOLD Semi sweet, Light, Teatime Biscuits

LITTLE HEARTS Sugar Glazed Puffed Pastry Biscuits

50-50 Sweet and Salt Crackers

SNAX Flaky Salted Crackers

(Table 4.1)
Cakes

MERRI CAKE Single Slice Cakes

Sliced Bar Cakes

(Table 4.2)

Breads

PREMIUM BAKE Sliced Sandwich Bread

Soft, White Bread

(Table 4.3)
Present Leadership

Name Designation

Mr Nusli Neville wadia Chairman

Ms Vinita Bali Managing Director

Mr AK Hirjee Director

Dr Ajai Puri Director

Mr Avijit Deb Director

Mr Jeh N Wadia Director

Mr Keki Dadiseth Director

Mr Nasser Munjee Director

Mr Ness Nusli Wadia Director

Mr Nimesh N Kampani Director

Mr S.S Kelkar Director

Dr Vijay L Kelkar Director

(Table 4.5)
Market Share of Britannia In Indian Market :-

Market Share of Following companies

6%
8%

10% Britannia
44%
Parle

14% ITC Ltd

Bakeman's
Glaxosmithkline
18%
Nutrine

(Fig 4.1)

Name Of the Company Market Share (in percentage)

Britannia 44 %

Parle 18%

ITC Ltd 14%

Bakeman’s 10%

Glaxosmithklin’s 8%

Nutrine 6%

(Table 4.5)
Industry Profile

The multi-billion food and beverage industry comprises several markets including bakery

products such as bread, biscuits etc., milk and dairy products, beverages such as tea, coffee,

juices, bottled water etc., snack food, chocolates, etc. beverage, confectionery, processed foods

and others. India's Food and Beverage industry is valued at Rs. 3584 billion. India produces

above 600 million tonnes of food products every year and is one of the major producers of food

in the world.

The food and beverage industry registered a growth rate of 8.5% in 2005-06. With increase in

disposable income of consumers, growing awareness among consumers about health products,

rapid urbanization, and increasing popularity of convenience foods, food and beverage sector is

expected to grow at a high rate. This sector holds a huge potential to grow because of the

increase in advertisement spending, awareness campaign about products in urban as well as rural

areas, and large scale transformation.

The food and beverage industry is primarily driven by consumer health trends. Presently the food

and beverage industry is in a dynamic phase, marked by a high degree of competition. As

product development within the food and beverage market moves towards a focus on health and

nutrition, the growth and development of food manufacturers in the market depends on having

prudent strategies in place, which can be applied globally. In effect, this has created a highly

competitive market place, which fosters growth of participants with a clear vision of "growing

with their customers."

The major players in the "Food and Beverage" Industry is: Heinz, Mars, Marico, Conagra, Pepsi,

HUL, Pillsbury, Nestlé, Amul, ITC, Dabur, Britannia, Cadbury, Smith Kline Beecham, The
Surya Food and Agro Private Ltd. Bakery industry in India is probably the largest among the

processed food industries, production of which has been increasing steadily in the country.

Bakery products once considered as sick man’s diet have now become essential food items of the

vast majority of population. The two major bakery industries, viz., bread and biscuit account for

about 82% of the total bakery products. The annual production of bakery products which

includes bread, biscuits, pastries, cakes, buns, rusk, etc. Most of which are in the unorganized

sector, is estimated to be in excess of 3 million tonnes. The production of bread and biscuits in

the country both in the organized and unorganized sectors is estimated to be around 1.5 million

tonnes and 1.1 million tonnes respectively. Of the total production of bread and biscuits, about

35% is produced in the organized sector and the remaining is manufactured in the unorganized

sector. Indian Bakery sector is indicating significant growth both in terms of volumes and

customer base. The sector, which is estimated at Rs 3,500 crore, is currently registering a 40%

growth according to industry sources. The production of Bakery products has increased from

5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990 recording four-fold increase in 15 years.

Some of the well-known and most frequented bakeries in the country are Sweet Chariot, Modern

Bakery, Daily Bread in Bangalore, Monginis, Birdie's, Croissants in the west, and in the north

and eastern parts of the country, there are quite a few big players too.
CHAPTER-2
REVIEW OF
LITERATURE
 CHAPTER-3
RESEARCH
METHODOLOGY
Research Design

For this Project, a questionnaire was prepared and it has made part of the project report. The

questionnaire was designed in a simple language so that the targeted population must understand

and able to respond effectively. Sample size taken is 25.

Sources for data Collection

Data was collected from various sources, Sales report and annual reports were taken for the study

and the Working Capital Information; the business profile of the company, relevant information

related to management of the sales of the company, various Modern trade retail outlets of the

company and the sales record of the company. Some information was also taken from the

website of the company.

The methodology adopted for the project was divided into two types of analysis: Qualitative and

Quantitative

a) Qualitative analysis requires the study of the business profile of the company, its nature, its

functioning, the hierarchy and the functioning of the management of the company, the

performance of the company in last few years and what policy they have adopted and studying

what role the working capital plays in a manufacturing concern.

b) Quantitative analysis requires analysis of the current assets and the current liabilities of the

company, the statement of working capital changes, sales record of the company, performing the

analysis for estimating the working capital requirement, analyzing the operating cycle, analyzing

the different ratios.

 CHAPTER-5
DATA REDUCTION,
PRESENTATION
AND ANALYSIS
Presentation of the data

Marketing

a) Sales volume has increased due to Modern Trade Policies of Britannia.

PARAMETERS NO. (%)

Strongly agree 22 88%

Agree 3 12%

Neutral 0 0

Disagree 0 0

Strongly disagree 0 0

(Table 5.1)

3
Strongly agree
Agree
Neutral

22 Disagree
Strongly Disagree

(Fig 5.1)

Inference – 88% employees strongly agree that due to modern trade policies of Britannia the

sales volume has increased and 12% simply agree with the statement. This shows that the sales

volume has increased due to Modern trade.

b) Modern trade led to increase in overall market share.

PARAMETERS NO. (%)

Strongly agree 19 76%

Agree 2 4%

Neutral 4 16%

Disagree 0 0

Strongly disagree 0 0

(Table 5.2)

4
2 Strongle Agree
Agree
Neutral
19 Disagree
Strongly Disagree

(Fig 5.2)

Inference – 76% employee strongly agree that market share of the company has increased

overall , 4% employee simply agree with the statement and 16% employee remained neutral.

Britannia has increased there market share with the help of modern trade. Market share increases

with the increase in sales volume.

c) Due to Modern trade, the price of products has increased.

PARAMETERS NO. (%)

Strongly agree 0 0

Agree 5 20%

Neutral 5 20%

Disagree 0 0

Strongly disagree 15 60%

(Table 5.3)

5
Strongly Agree
Agree
15 5
Neutral
Disagree
Strongly disagree

(Fig 5.3)

Inference – 20% employee agreed with the statement that price of products has increased due to

modern trade and 20% employee remained neutral , 60% employee strongly disagreed with the

statement. The price of products has not increased due to modern trade.
d) Modern trade increased the product range.

PARAMETERS NO. (%).

Strongly agree 23 96%

Agree 2 4%

Neutral 0 0

Disagree 0 0

Strongly disagree 0 0

(Table 5.4)

strongly agree
Agree
Neutral
Disagree
23
Strongly Disagree

(Fig 5.4)

Inference – 96% employee strongly agree that due to modern trade the product range has

increased and 4% simply agree with the statement. This shows that Britannia has increased their

product range by understanding the needs of the customer.

e) Modern trade increased the quality of product and attracted large number of customers.

PARAMETERS No of Persons (%)

Strongly agree 20 80%

Agree 2 8%

Neutral 3 12%

Disagree 0 0

Strongly disagree 0 0

(Table 5.5)

3
2
Strongly Agree
Agree
Neutral
20 Disagree
Strongly Disagree

(Fig 5.5)

Inference – 80% employees strongly agree that modern trade increased the quality of product

and attracted large number of customers , 8% simply agree with the statement and 12%

employee remained neutral.

f) Modern trade is better then Traditional trade .

PARAMETERS NO. (%)

Strongly agree 9 36%

Agree 4 16%

Neutral 5 20%

Disagree 3 12%

Strongly disagree 4 16%

(Table 5.6)

4
9
3 Strongly agree
Agree
Neutral
5 Disagree
4
Strongly Disagree

(Fig 5.6)

Inference – 36% employee strongly agree that modern trade is better then traditional trade , 16%

employee simply agree with the statement , 20% employees remained neutral, 12% employees

disagreed with the statement and 16% employee strongly disagreed with the statement.

Employees have mixed opinion about this.

g) Modern trade satisfies maximum number of customers.

PARAMETERS NO. (%)

Strongly agree 15 60%

Agree 5 20%

Neutral 3 12%

Disagree 2 8%

Strongly disagree 0 0

(Table 5.7)

2
3
strongly agree
Agree
5 15 Neutral
Disagree
strongly Disagree

(Fig 5.7)

Inference – 60% employees strongly agree with the statement that due to modern trade Britannia

has satisfied maximum number of customers. 20% employee simply agree with the statement,

12% employees remained neutral, 8% employees disagreed with the statement.

h) Modern trade makes shopping experience more comfortable for the customers.

PARAMETERS NO. (%)

Strongly agree 18 72%

Agree 5 20%

Neutral 2 8%

Disagree 0 0

Strongly disagree 0 0

(TABLE 5.8)

(FIG 5.8)

Inference – 72% employees simply agree that due to modern trade shopping experience

becomes more comfortable for the customers as they get variety of products under one roof, 20%

of employees simply agree with the statement and 8% employees remained neutral.
i) Modern trade signifies improved standard of living.

PARAMETERS NO. (%)

Strongly agree 22 88%

Agree 2 8%

Neutral 1 4%

Disagree 0 0

Strongly disagree 0 0

(Table 5.9)

2 1
Strongly agree
Agree
Neutral

22 Disagree
Strongly disagree

(Fig 5.9)

Inference – 88% employees strongly agrees that modern trade signifies the improved living

standard of people, 8% employees simply agreed with the statement and 4% employees remained

neutral.

j) Modern trade gives better idea about the product to the consumer .

PARAMETERS NO. (%)

Strongly agree 17 68%

Agree 6 24%
 Neutral 1 4%

Disagree 1 4%

Strongly disagree 0 0

(Table 5.10)

1 1
6 Strongly agree
Agree
Neutral
17
Disagree
Strongly disagree

(Fig 5.10)

Inference – 68% employees strongly agreed with the statement that modern trade gives a better

idea about the product to the consumers , 24% employees simply agrees with the statement, 4%

employees remained neutral and 4% employees disagreed with the statement.

ANALYSIS OF A COMPANY
Increase in Sales Volume .

a) Due to upcoming of Modern Trade the level of sales has increased as more and more

customers are attracted to the products when they are displayed in big retail stores in a very

sophisticated manner.

b) Employees of Britannia industries also feel that due to modern trade the sales has increased as

compared to past sales .

c) Modern trade has attracted larger number of customers and also helped company to have a

larger market share.

Increase in Product Range

a) Due to Modern trade the customers has increased in the market and the demand of customers

has also increased , so to fulfil the demand of the customers the company has increased the range

of the products.

b) Increase in product range has also helped the company to compete with there competitors

openly as in FMCG sector the competition is very hard and it increases daily due to introduction

of new products in the market.

Customer Satisfaction

a) Rate of customer satisfaction is more in the modern trade as customers have an ease of

shopping because they can buy more products under one roof.
b) Large variety of products are displayed under one store and customers have a choice of

purchasing the products out of a varied products.

c) Some customers are not satisfied with the concept of the modern trade as they feel that

traditional trade was more better then modern trade because for purchasing very less items they

cannot go to the big retail stores all the time.

d) Many customers still prefer small Kirana stores for making purchase of products.

4.2 Finance

a) Profit from Operations has increased 35.6%, from Rs. 231.91 crores to Rs. 314.45 crores.

Against an overall revenue growth of 12.5%, several of your Company’s iconic brands grew at a

significantly higher rate, while a few were laggards.

b) Company has added Rs. 644 crores to its Operating Revenue (Sale of Products) and Rs. 82.54

crores to its Profit from Operations. Earnings per share (Basic) of Rs. 2 were Rs. 19.57.

c) The book value per share has also increased from Rs43.5 to Rs53.2 this year and Dividend

cover has also increased by Rs1.5 to Rs2.

d) Company has also increased the provision for tax from 26% to 29.6%.

4.3 Human Resource

a) Britannia places great deal of confidence on its excellent pool of human resources, which it

realizes is the key to its further growth strategy.

b) Britannia has implemented a uniform HR structure across all the departments of the company.

This helps to maintain a uniformity in all the work areas and there are very less chances of

disputes.

c) To encourage learning, the Company is providing continues training and mentoring sessions to

its employees so that they are well equipped and informed about the latest advancements in any

particular area of concern.

d) Training calendar is prepared in the starting of the year sand the employee are given training

according to that calendar.

4.4 IT

a) Towards this overall goal of technology-driven performance, Britannia is utilizing Information

Technology in a big way. This help in integrating a vast distribution system spread all over India

and across the world. It also cut down costs and increase profitability.

b) Information Technology (IT) has played a major role in strengthening the supply chain

management by improving operational efficiencies in procurement, production and delivery

systems.

c) Britannia has centralised their system and they have intranet through which they can access

the information. They have their own privacy system so that their confidential information is not

disclosed.

4.5 Conceptual Framework

4.51 Modern Trade Vs Traditional Trade

Modern trade as opposed to traditional retail shops refers to a full range of sale methods based on

marketing techniques: for instance in self-service shops you have no more sales attendants

behind a count. Now the customer can touch the articles. The more expensive goods will be

ready at hand whereas you'll have to bend to reach good with less added value for the store. A

few articles will be offered at rock bottom prices with much publicity in order to attract as many

customers as possible. The display of goods is very important and needs an elaborate know-how.

4.52 Modern Trade - Current Share and Penetration

Modern Trade has a market share of 19.2% in overall FMCG sales. But MT still continues to be

an urban phenomenon. As per researchers, 17 key metros account for a whopping 73% of overall

modern trade in India and accounted for a third of the general trade's sales in those geographies.

Further, one in every five urban shoppers now frequents Modern Trade in the form of super or

hyper markets. This growing importance of MT has also resulted in FMCG companies setting up

sales and marketing teams dedicated only to MT.

Modern Trade accounts for more than 10% of Britannia’s overall FMCG sales at present which

is highest in FMCG sector till now. Britannia’s modern trade is giving a tough competition to all

the FMCG companies.

 CHAPTER-5
DATA
INTERPRETATION
TECHNIQUES :-

Some of the ratios are –

a) Inventory turnover ratio:

16 15.06 14.54
14 12.88
11.79
12
9.98
10
8
6
4
2
0
Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Inventory turnover…

(Fig 3.14)

Inference:

It is clear from the above graph that company has good rate of converting stock into cash.

Significance:

Inventory turnover ratio measures the velocity of conversion of stock into sales. Usually a high

inventory turnover/stock velocity indicates efficient management of inventory because more

frequently the stocks are sold; the lesser amount of money is required to finance the inventory. A

low inventory turnover ratio indicates an inefficient management of inventory. A low inventory

turnover implies over-investment in inventories, dull business, poor quality of goods, stock

accumulation, accumulation of obsolete and slow moving goods and low profits as compared to
total investment. The inventory turn over ratio is also an index of profitability, where a high ratio

signifies more profit; a low ratio signifies low profit.

b) Current Ratio :

1.56
1.6
1.4 1.27
1.18
1.2 1.1
0.94
1
0.8
0.6
0.4
0.2
0
Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Current ratio

(Fig 3.15)

Inference:

Here company is able to manage its current ratio approximately 1 which is good for the company

like this. It will help them to provide sufficient fund for operation.

Significance:

A relatively high current ratio is an indication that the firm is liquid and has the ability to pay its

current obligations in time and when they become due. On the other hand, a relatively low

current ratio represents that the liquidity position of the firm is not good and the firm shall not be

able to pay its current liabilities in time without facing difficulties. The idea of having doubled

the current assets as compared to current liabilities is to provide for the delays and losses in the
realization of current assets. However, the rule of 2:1 should not be blindly used while making

interpretation of the ratio. Firms having less than 2 : 1 ratio may be having a better liquidity than

even firms having more than 2 : 1 ratio. This is because of the reason that current ratio measures

the quantity of the current assets and not the quality of the current assets. If a firm's current assets

include debtors which are not recoverable or stocks which are slow-moving or obsolete, the

current ratio may be high but it does not represent a good liquidity position.

c) Quick Ratio :-

0.7 0.65 0.67

0.6
0.51
0.5 0.47
0.43
0.4
0.3
0.2
0.1
0
Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Quick ratio

(Fig 3.16)

Inference:

It is clear from the above and previous graph that company is fastly converting its stock into cash

assets as there is less difference between current ratio and quick ratio.
Significance:

The quick ratio/acid test ratio is very useful in measuring the liquidity position of a firm. It

measures the firm's capacity to pay off current obligations immediately and is more rigorous test

of liquidity than the current ratio. It is used as a complementary ratio to the current ratio. Liquid

ratio is more rigorous test of liquidity than the current ratio because it eliminates inventories and

prepaid expenses as a part of current assets. Usually a high liquid ratio an indication that the firm

is liquid and has the ability to meet its current or liquid liabilities in time and on the other hand a

low liquidity ratio represents that the firm's liquidity position is not good. As a convention,

generally, a quick ratio of "one to one" (1:1) is considered to be satisfactory.

d) Debt/Equity Ratio :-

1.2 1.08

0.8

0.6

0.4

0.2 0.14
0.03 0.01 0.01
0
Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Debt/equity

(Fig 3.17)

Inference:
From above graph it is clear that company has changed its debt equity ratio to a significant level

last year.

Significance:

The purpose of this ratio is to get an idea of the cushion available to outsiders on the liquidation

of the firm. However, the interpretation of the ratio depends upon the financial and business

policy of the company. The owners want to do the business with maximum of outsider's funds in

order to take lesser risk of their investment and to increase their earnings (per share) by paying a

lower fixed rate of interest to outsiders. The outsider’s creditors) on the other hand, want that

shareholders (owners) should invest and risk their share of proportionate investments. A ratio of

1:1 is usually considered to be satisfactory ratio although there cannot be rule of thumb or

standard norm for all types of businesses. Theoretically if the owner’s interests are greater than

that of creditors, the financial position is highly solvent. In analysis of the long-term financial

position it enjoys the same importance as the current ratio in the analysis of the short-term

financial position.

e) EPS:
 90 80.08
80 73.8
70 61.46
60 55.78
50 41.62
40
30
20
10
0
Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

EPS (Rs)

(Fig 3.18)

Inference:

Although company has a increasing trend in its EPS and now it is able to increase its EPS with a

significant margin.

Significance:

The earnings per share is a good measure of profitability and when compared with EPS of

similar companies, it gives a view of the comparative earnings or earnings power of the firm.

EPS ratio calculated for a number of years indicates whether or not the earning power of the

company has increased.

f) Gross profit margin (%):

 12
10.46
10
7.85
8
6.12
6 4.89 4.7
4

0
Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Gross profit margin (%)

(Fig 3.19)

Inference:

This graph shows that company has its gross profit margin very less and it shows a decreasing

trend which is a cause of concern for the management.

Significance:

Gross profit ratio may be indicated to what extent the selling prices of goods per unit maybe

reduced without incurring losses on operations. It reflects efficiency with which a firm produces

its products. As the gross profit is found by deducting cost of goods sold from net sales, higher

the gross profit better it is. There is no standard GP ratio for evaluation. It may vary from

business to business. Hence, an analysis of gross profit margin should be carried out in the light

of the information relating to purchasing, mark-ups and markdowns, credit and collections as

well as merchandising policies.

g) Net profit margin (%):

 8 7.31
7
5.75
6
4.86
5
4 3.38
3
2
1
0
0
Mar'13 Mar'12 Mar'11 Mar'10 Mar'09

Net profit margin (%)

(Fig 3.20)

Inference:

As from above graph it is clear that there is a less difference in Gross Profit Margin and Net

profit margin so it shows that there is more extra expenses that is occurring in the company.

Significance:

NP ratio is used to measure the overall profitability and hence it is very useful proprietors. The

ratio is very useful as if the net profit is not sufficient; the firm shall not be able to achieve a

satisfactory return on its investment. This ratio also indicates the firm's capacity to face adverse

economic conditions such as price competition, low demand etc. Obviously, higher the ratio the

better is the profitability. But while interpreting the ratio it should be kept in minds that the
performance of profits also be seen in relation to investments or capital of the firm and not only

in relation to sales.
 CHAPTER-6
SUMMARY AND
CONCLUSION
Findings and Results

a) Management should make the proper use of inventory control techniques like fixation of

minimum, maximum and ordering levels for all the items for less blockage of money and

maintaining the proper supply chain.

b) The management should improve their distribution channel to increase their sales and

management should also invest more money in modern trade.

c) Due to competition prices are market driven and for earning more margin, company should

give the more concentration on cost reduction by improving its efficiency

d) The investments of surplus funds are made by the corporate office and the unit is not generally

involved while taking decisions with regard to structure of investment of surplus funds. The

corporate office should involve the units so as to better ascertain the future requirements of funds

and accordingly the investments are made in different securities.

e)The company is losing its overseas customers due to decrease in exports so the sufficient

amount of exports should the maintained.

f) Company should focus more on the big retail stores and should also take first mover advantage

for the new upcoming stores.

g) Company needs to introduce some more variety of products to increase there channel of

distribution and also to make huge profits.

Limitations

a) This project is based on the Primary data and secondary data so the reliability depends on the

data. It is only based on the data gathered by limited number of people from the different fields.

b) There was a time constraint to carry out an effective research, as tracking the modern trade of

any company needs an extensive search and lot of time.

c) The sample size taken for the survey was less and questionnaire was only filled by the

employees of Britannia Industries.

d) Customer’s feedback was not taken on the topic “Modern Trade”

Suggestions

It is worth doing summer Internship in Britannia Industries. Students should be sent to the

Britannia Industries for the Summer Internships in the future as they provide lot of practical

knowledge and give proper training to the students.

Conclusion

Modern Trade has opened up an important sales channel catering to the growing urban shoppers

who have strong purchasing power and with more choices, a willingness to experiment. This

sales channel has not only nudged consumers to make more impulse purchases but has also led to

the growth of premium products and incubated new product categories. Although modern trade

has only a 19.2% share in overall FMCG trade in India, it is growing much faster than general

trade.
 Bibliography :-

1. Annual report of Britannia Industries Limited

2. Books

a) Ramaswamy, V.S (2009), Marketing Management, New Delhi, Macmillan Publishers Pvt Ltd.

b) Kotler, Phillips (2009) Marketing Skills, Tsinghua University, Redmargin Publications.

c) Marnith, Jones (2011) Sales management, Stanford University, Earth publications.

3. Websites

a) http://www.britannia.co.in/investerzone_bonus_financial.htm last accessed on August10,

2013.

b) http://www.britannia.co.in/Britannia_Annual-Report_2012-13.pdf last accessed on August 14,

2013

c) http://www.salisburyareafoundation.org/general-trade-business.html last accessed on August

20, 2013.

d) http://en.wikipedia.org/wiki/Britannia_Industries last accessed on August 22, 2013.

 Annexures

Annexure 1

Questionnaire

I Kashish Mehra, BBA student of Tecnia Institute Of Advanced Studies (GGSIPU) seek your co-
operation in connection with my project work. The fundamental aim of this study is to
understand “Modern Trade Process of Britannia Industries Limited “. Your frank and sincere
reply will guide me in understanding the topic in detail and provide true results of the study.
Individual anonymity is completely guaranteed.

I thank you very much for spending your precious time and co-operation for the same.

The options are as follows:-

Strongly Disagree – 1, Disagree – 2, Neutral – 3, Agree – 4, Strongly Agree – 5

Name : _______________________________

Gender : ______________________________

Department : ___________________________
 QUESTIONS LIKERT SCALE

Sales volume has increased due to Modern Trade Policies of

1. 1 2 3 4 5
Britannia.

Modern trade led to increase in overall market share.

2. 1 2 3 4 5

Due to Modern trade, the price of products has increased.

3. 1 2 3 4 5

Modern trade increased the product range.

4. 1 2 3 4 5

Modern trade increased the quality of product and attracted

5. 1 2 3 4 5
large number of customers.

Modern trade is better then Traditional trade .

6. 1 2 3 4 5

Modern trade satisfies maximum number of customers.

7. 1 2 3 4 5

Modern trade makes shopping experience more comfortable

8. 1 2 3 4 5
for the customers.

Modern trade signifies improved standard of living.

9. 1 2 3 4 5

Modern trade gives better idea about the product to the

10. 1 2 3 4 5
consumer .