SUPPLY CHAIN

INDUSTRY REPORT
SECTION-C
TEAM 1
ASHISH GEORGE F21133
HARIHARAN A F21143
KRUTHIKA NIVASINI A S F21152
LUIS NICOLE F21153
NIHAL V T F21160
THOMSON PRABHU MK F21177

CONTENTS
1. ABOUT THE COMPANY
2. SUPPLY CHAIN STRATEGY
3. NETWORK FACILITIES
4. INVENTORY PERFORMANCE
5. SALES
6. SUSTAINABLE PRACTICES
7. ROLE OF INFORMATION TECHNOLOGY
8. BEST PRACTICES
ABOUT BRITANNIA
Britannia Industries is one of India’s leading food companies with a 100 year legacy and annual revenues in excess of
Rs. 9000 Cr. Britannia is among the most trusted food brands, and manufactures India’s favorite brands like Good
Day, Tiger, NutriChoice, Milk Bikis and Marie Gold which are household names in India.

Britannia’s product portfolio includes Biscuits, Bread, Cakes, Rusk, and Dairy products including Cheese, Beverages,
Milk and Yoghurt. It’s products are available across the country in close to 5 million retail outlets and reach over
50% of Indian homes.
Their strategic expansion plan is based on the principle of ‘One new market a year’. They plan to expand through
local operations in Africa and South East Asia in the coming years.

They have a presence in more than 60 countries across the globe. Their international footprint includes presence in
Middle East through local manufacturing in UAE and Oman, and have a similarly strong market position in the other
GCC countries. They are also the market leaders in Nepal and are in the process of investing a manufacturing facility
in the country.
SUPPLY CHAIN STRATEGY:
Britannia Industries Ltd is adapting the “leanest possible" distribution model to directly “tailor-
serve retail outlets" across the country in less than a day as part of its plan to multiply sales and
expand retail reach. In the new distribution model, Britannia plans to operate with a “zero-day
inventory" by “reducing distance between its distribution centres and retail stores" that the
company reaches directly.

In the new direct distribution model, the entire supply chain is controlled by Britannia. Every day, around 20,000
people who are on Britannia’s direct payroll, visit retail stores, analyse local demands, suggest required tweaks in
product placements based on the company’s in-house analytics and take orders on their mobile phones through an
app. The orders are then delivered directly by Britannia from the nearest distribution centre within a day.

Traditionally, Britannia stocks products at its distribution centres. Products first go to its
exclusive wholesale dealers, then distributors and direct retailers. The entire process takes
anything from one week to three weeks, depending on the distance between the retail outlet and
the factory. Britannia wants to reduce this to less than a day. The new system is mapped real-
time. It also reduces operational cost for dealers and distributors as they would not need to stock
products.
PANDEMIC PROCEDURES:

Supply chain operations played a crucial role in ensuring

continued supply of food products to consumers during the
COVID-19 pandemic. The company’s Business Continuity
Plan (BCP) enabled availability of material, manpower and
manufacturing capacity across factories, daily monitoring of
stock and partnering with government and local communities
to ensure uninterrupted supply of products.
NETWORK FACILITIES:

India-based food major Britannia Industries has announced large-scale capital expenditure
plans that will see it investing INR7bn (US$93.6m) in its factory network.

Britannia said it will build new plants in Bihar, Uttar Pradesh and Tamil Nadu and add new
units at its existing factories in Orissa and in Ranjangaon to enhance production capacity.
INVENTORY PERFORMANCE

INVENTORY TURNOVER RATIO - 1.64

INVENTORY DAYS - 39
DAYS SALES OF INVENTORY (DSI) - 35
SALES:
Good Day currently contributes around one-fourth of the revenue of Britannia Industries, which had a total revenue from
operations of Rs 12,378.83 crore in 2020-21.
Larger consumption of Good Day comes from the urban market, which has a larger potential for the brand.
Britannia sells around 42 crore packs per month in different stock keeping units (SKUs).
Britannia holds overall around 70 per cent market share in the premium cookie segment
Their shares in the urban area will be over 80 per cent and share in the rural area would be sub-50 per cent and they have
tremendous potential to grow.
The core idea of Good Day has always been about spreading happiness. Today, the brand has undergone its biggest
makeover to date, to reflect the diverse smiles of India.
Every pack of Good Day across the country will carry multiple smiles as part of the biscuit design from the dimpled smile to
the small smile, from the big smile to the double dimpled smiles. This is the biggest tribute we can pay to the beautiful
smiles of the large and loyal consumer base of Good Day”
Beyond the boundaries of the country, Good Day biscuits are also sold in around 75 countries and Britannia has plans to
expand it further also.
Besides India, Britannia has manufacturing facilities in Nepal, Oman, Dubai and Egypt. It is also putting up a new facility in
Uganda in Africa.
SUSTAINABILITY PRACTICES
Britannia have developed a strategic framework for sustainability which rests on 4 core pillars:

Resources (Environment),
People (Social).
Growth (Economic),
Governance

The pillars in turn are supported by 8 levers which split into 26 programs. Each of these 26 programs is
assigned annual targets and key performance indicators (KPIs) to evaluate progress as Britannia put the
strategy into action. Britannia’s sustainability strategy framework is depicted as follows:
SUSTAINABILITY PRACTICES
RESOURCES (ENVIRONMENT)
Energy & emissions
• Increasing share of renewable energy in the mix through PPAs with renewable electricity providers, and the use of
biomass in select plants
• Reducing energy footprint through efficiency initiatives in manufacturing processes as well as utilities

Water
• Water use reduction and recycling through water efficient fixtures, monitoring mechanisms and reuse of treated
water for landscaping
• Responsible water management and sanitation practices at dairy farms for ensuring health of cows and farmers

Waste & packaging

• Reduction in waste quantity generation through increasing efficiency of input material use and ensuring freshness
of food postproduction
• Use of recycled content in secondary packaging
• Packaging harmonization initiatives to reduce laminate consumption

Responsible procurement
• Economic empowerment of farmers in the dairy farmer extension program through animal welfare initiatives and
yield improvement
SUSTAINABILITY PRACTICES
RESOURCES (ENVIRONMENT)
Fuel and Energy Efficiency
In addition to consuming power from renewable sources, we are conscious of the use of fossil fuels in our operations. Therefore, enhancing energy & fuel
efficiency in our processes, utilities and transportation is another critical pillar of our approach to decarbonization. We have continually improved our
technological interventions towards greater efficiency, which include:
Auto feeding of biscuits to packaging machines
Implementation of improved version of thermic fluid oven
LED replacement across sites
Insulation enhancement in ovens
Use of variable frequency drives
Waste heat recovery systems

Sustainable Packaging
Sustainable packaging is integral to Britannia’s approach to sustainability. Our overall approach to sustainable packaging is shown below:
Reduce Plastics Usage
Recyclable Laminate/ Biodegradable Plastics
Extended Producer’s Responsibility (EPR)
Paper Reduction in Secondary Packaging
Usage Of Recycled Plastic
SUSTAINABILITY PRACTICES
PEOPLE

Health, Safety and Wellbeing

• Focus on creating a safe working environment for our people to thrive through a robust occupational health and safety
program

Diversity
• Diversity in hiring of new employees across gender
• 38% share of women at the factory level
• Supporting women and adolescent girls to become leaders that drive positive change in communities by identifying
malnourished children

Freedom of Association & Human Rights

• Right to freedom of expression and remedial action for violation of Human Rights

Community Nutrition
• Addressing malnutrition in India among children, adolescents and women
• Capacity building of Anganwadi workers towards promoting health of expectant mothers and adolescent girls
• Health camps carried out by the SNWF with connect to the Wadia hospital
SUSTAINABILITY PRACTICES
GROWTH
Decent work and economic growth
• Contribute to the national economic growth through robust financial performance
• Support local entrepreneurs (women homemakers) through the Marie Gold My Start Up Campaign

Economic Performance
Britannia acknowledged its role in providing its products to its customers despite the human and operational challenges.
Strategies to ensure material availability, digital sales initiatives, a relentless focus on safety and the drive our people
ensured that Britannia remained resilient despite the pandemic. A robust business continuity plan (BCP) was also
implemented to manage the pandemic.

Being a Customer Centric and Trusted Brand

Britannia initiatives to enhance and communicate the value of its brands give centrality to customer need fulfilment and
feedback. Insights based on customer engagement are incorporated in the development of new products or enhancements
of existing ones and its different functions e.g., R&D, Marketing, partner to ensure that Britannia products launched in
the market address and fulfil ever evolving customer needs.

Healthy Product Portfolio

Aligning their efforts to responsibly enhance the goodness in their brands, they have pledged to the Food Safety and
Standards Authority of India’s (FSSAI) requirement of Eat Right, Eat Safe
SUSTAINABILITY PRACTICES
GOVERNANCE

Ethics and Culture

Britannia foster an ethos of ethical behaviour and social responsibility among all Britannians. Britannia’s Whistle Blower
Policy allows employees and Directors of the Company to approach the Ethics Committee or Chairman of the Audit
Committee to report actual or suspected unethical behaviours, fraud or violation of the Company’s Code of Conduct and
SEBI Insider Trading Regulations

Disclosure
Britannia believe in transparent communication of our financial and non-financial performance, and in going beyond
regulatory requirements to communicate our ESG performance to its stakeholders

Product Safety and Quality

Britannia’s consumers trust them to provide them and their families with high-quality products. Britannia design and
manufacture our products, so they are safe for their intended use
SUSTAINABILITY PRACTICES
GOVERNANCE

Leadership Development
Britannia are well equipped to focus both on performance orientation as well as identify and support internal talent to take on roles of
increasing responsibility, challenges and leadership. This is done by providing a learning platform early in Britannians’ careers, thus
developing a talent pipeline as well as strengthening our position for sustainable growth and industry leadership

Ethical Labelling, Marketing, and Influence

It is our aim to transparently communicate the sustainable value created by our products and enable customers to make informed choices.
All our products carry comprehensive and clear nutrition information including contents of all macro and micronutrients on the packaging,
complying with requirements for back, side and front of pack information

Data Security and Privacy

Britannia respect the privacy of their employees, business partners and visitors who interact with our online platforms. It have an
appropriate safeguard for data privacy of all our stakeholders, along with legal and security standards. Britannia collect information only
when offered voluntarily
ROLE OF IT
Internet of Things (IoT) is being increasingly deployed at 126-year-old Britannia’s factories, the machines flag and alert the plant
operator as soon as any packet from the assembly line fails to meet the specified weight. The operations manager can then intervene
and rectify this immediately and hence prevent any further loss.

While IoT has helped prevent wastage, analytics has helped improve Britannia's production planning. It has developed an algorithm to
identify demand clusters, which often cut across state borders.
While the company was previously making such estimations manually, the data analytics algorithms have automated the procedure. It
was a process that began in 2013 using SAP technology.

Britannia is looking forward to several artificial intelligence (AI) and machine learning (ML) models for predicting demand trends
across seasons, it has not implemented anything in this regard just yet.

Britannia have enabled salesmen with outlet-level prediction on what SKUs should be going to certain outlets based on past data, but
these are not necessarily AI models yet.

The company is also using on-premise server infrastructure while using several software products that are available only on the cloud.
BEST PRACTICES
NUTRITION
Programmes to fight malnutrition and undernutrition take up the biggest share of Britannia CSR activities. Biscuits
fortified with vitamins and micronutrients are part of the nutrition programme. Most of the initiatives are carried out
by Britannia Nutrition Foundation.

BRITANNIA NUTRITION FOUNDATION (BNF)

Britannia Nutrition Foundation (BNF) is more than a decade old. It was set up with the goal of delivering every Child’s Right to
Nutrition and Growth. BNF runs long term replicable programmes in various states. Community development is considered a focus
area since BNF assumes responsibility for the nourishment and vitality of the whole community it works in.

SIR NESS WADIA FOUNDATION

Sir Ness Wadia Foundation (SNWF) is nearly five decades old, making it one of the oldest charitable organisations in India. SNWF
is a registered NGO set up in honour of philanthropist-industrialist Sir Ness Wadia. He was one of the most respected Parsi
gentlemen who has pioneered the way charity is done on a large scale, and inspired many others to follow. He had a burning desire
to empower the most impoverished sections of society by fulfulling their basic needs of food, education and economic
independence. SNWF supports various CSR projects to reduce malnutrition in Jharkhand and Madhya Pradesh. The Foundation
works towards improving the beneficiary’s quality of life through better nutrition, education and rehabilitation where needed.
BEST PRACTICES
HEALTHCARE
Britannia CSR projects in healthcare include hospitals of repute that house modern equipment and provide free to
low-cost treatment and medical care.

NOWROSJEE WADIA MATERNITY HOSPITAL

Nowrosjee Wadia Maternity Hospital (NWMH) in Mumbai will celebrate its centenary year in 2026, five years from now. NWMH was established to
provide affordable healthcare to women across all sections of society. It specialises in obstetric and gynaecological services, to avail which women
come from far and wide. It is renowned for care following complicated pregnancies. The IVF Centre was the first in our country to achieve QAI
accreditation. The certified Human Milk Bank for newborns was another first. The hospital treats 1 lakh outpatients a year. The hospital also counsels
women on their health and the importance of clealiness and sanitation in their surroundings.
 
BAI JERBAI WADIA HOSPITAL FOR CHILDREN 
Bai Jerbai Wadia Hospital for Children (BJWHC) is a hospital and research centre that is nearly 100 years old. Women and children who cannot
afford private treatment benefit from this facility in Mumbai. Not only does it provide health care, it is also one of the most reputed paediatric
teaching institutes in the country with a massive Neonatal Intensive Care Unit.
It has been bestowed with several international accolades, such as International Quality Award for Excellence in Child Health Care Services;
Outstanding Achievement Award in HealthCare – Social Cause and the Best use of Six Sigma in Healthcare. The children’s hospital regularly reaches
out to the tribal communities by conducting medical camps.
 
BEST PRACTICES
SWASTH BHARAT:
The Britannia Nutrition Foundation was set up as an autonomous body in 2009 with the goal to secure every child’s right to growth and
development through good food every day.
PARTNERSHIP WITH THE STATE GOVERNMENT OF MAHARASHTRA

THE MELGHAT NUTRITION PROJECT

The Britannia Nutrition Foundation was set up as an autonomous body in 2009 with the goal to secure every child’s right to growth and
development through good food every day.

500 Children on an average die every year, as against

its population of 3 Lakh
75% Tribal dominated district hilly terrain leads to
inaccessibility
35% children under 5 years are malnourished
2 of the most severely hit divisions Chikhaldara &
Dharni
PARTNERSHIP WITH THE STATE GOVERNMENT OF MAHARASHTRA

THE MELGHAT NUTRITION PROJECT

THE PROCESS FLOW