Contents

Executive Summary...........................................................................................................................3
Introduction.......................................................................................................................................3
History.................................................................................................................................................3
Business Model Canvas.....................................................................................................................4
Sector Definition................................................................................................................................5
Sector Information............................................................................................................................5
Sector Category..................................................................................................................................6
FMCG Contribution in GDP...............................................................................................................7
FMCG CAGR & Forecasting................................................................................................................7
FMCG Sector Category Wise CAGR..................................................................................................7
Customer Buying Behavior of FMCG Sector..................................................................................8
Consumer buying behaviour of bakery sector.............................................................................9
FMCG Growth Factor.......................................................................................................................10
Growth/Degrowth Pattern of Sector Pre and Post Pandemic..................................................10
Effect of pandemic of bakery sector.............................................................................................11
Top Three Players of FMCG Sector................................................................................................12
Top Three player in Bakery Sector...............................................................................................13
Revenue, Market share & CAGR (2018-2019)............................................................................13
Porter 5 force model.......................................................................................................................14
Pestle Analysis.................................................................................................................................14
SWOT Analysis of Sector.................................................................................................................14
Introduction of Company...............................................................................................................14

pg. 1
Executive Summary

Introduction
Britannia Industries Limited is an Indian company specialized in food industry, part of
the Wadia Group headed by Nusli Wadia. Founded in 1892 and headquartered in Kolkata, it
is one of India's oldest existing companies and best known for its biscuits products. The
company sells its Britannia and Tiger brands of Biscuits, breads and dairy products
throughout India and abroad. Beginning with the circumstances of its takeover by the Wadia
Group in the early 1990s, the company has been mired in several controversies connected to
its management. However, it still has a large market share and it is profitable.

Britannia becomes a bakery manufacturer in India. In 2009, the business enterprise had

commenced supplying especially fortified biscuits to small groups of college-going
youngsters. The movement presented the organization’s awareness of the substantial national
problem of malnutrition and ambition to increase the logo. But, Vinita Bali, lead executive
officer, confronted two demanding situations- the way to scale up the manufacture and
distribution of social merchandise, and how to expand the social product right into a
sustainable commercial enterprise. In order to conquer the difficulties, Bali made several
critical policies. The file analyses the foremost plans in finance, marketing, competition, and
external surroundings elements.

History
The company was established in 1892 by a group of British businessman with an investment
of ₹295. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the
enterprise was acquired by the Gupta brothers, mainly Nalin Chandra Gupta, an attorney, and
operated under the name "V.S. Brothers." In 1918, C.H. Holmes, an English businessman
based in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited
(BBCo) was launched. The Mumbai factory was set up in 1924 and Peek Freans UK,
acquired a controlling interest in BBCo. Biscuits were in high demand during World War II,
which gave a boost to the company's sales. The company name was changed to the current
"Britannia Industries Limited" in 1979. In 1982, the American company Nabisco Brands,
Inc. acquired the parent of Peek Freans and became a major foreign shareholder.
In September 2022, Varun Berry was named as Executive VC and MD of Britannia. The
company also announced the appointment of Rajneet Kohli as its executive director and chief
executive officer.

pg. 2
Business Model Canvas

Key Partners Key Activities Value Proposition Customer Relation Key Partners

 Distributers  Brand  Guarantee  Transactional  Distributers

 Retailers Building of Quality  Media  Retailers
 Internal  Production  Access and Marketing  Internal
Management of Health Availability Management
 Testing Products  Emotional  Testing
Management Value Management
 Local  Price  Local
Farmers Farmers
 Product Key Resources Channels  Product
Manufacture Manufacture
 Biscuits  Retail Trade
 Snacks  TV Channels
 Dairy

Cost Structure Revenue Streams

 Materials  Sales of Biscuits

 Labour  Sales of Bread, Cake
 Other Expenses  Sales of Dairy Products

pg. 3
Sector Definition
Fast-moving consumer goods (FMCG), also known as consumer packaged goods (CPG), are
products that are sold quickly and at a relatively low cost. Examples include non-durable
household goods such as packaged foods, beverages, toiletries, candies, cosmetics, over the
counter drugs, dry goods, and other consumables.
Fast moving consumer goods have a high inventory turnover and are contrasted with
specialty items, which have lower sales and higher carrying charges. Many retailers carry
only FMCGs; particularly hypermarkets, big box stores and warehouse club stores. Small
convenience stores also stock fast moving goods; the limited shelf space is filled with higher
turnover items.

Sector Information
The fast-moving consumer goods (FMCG) industry in India is the fourth largest sector in
Indian economy. Household and personal care products accounts for 50% of the sales in the
industry, healthcare accounts for 31%-32% and food and beverage accounts approximately
19%. In the 10 years FMCG sector is growing at the rate of 21.4%, there was a dramatic
change in revenue in FMCG sector from US$ 31.6 billion in 2011 to US$ 52.8 billion in
2017-2018 respectively. The FMCG market of packed food is expected to just double by
2025 to reach US$ 70 billion.

pg. 4
Sector Category
There are five sub categories in FMCG they are as follow:
1. Home care
2. Personal care
3. Food and Beverages
4. Alcohols and Cigarettes
5. OTC
Let discuss about them in detail

Categories Product
Home care  Dish washing
 Fabric care
 Surface care
 Home Insecticides
 Air care
 Toilet care
Personal care  Hair care
 Soap & Bath
 Skin Care
 Oral Care
 Baby care
Food & Beverages  Stable food
 Baked food
 Convenience food
 Snacks
 Dairy Products
 Confectionery food
 Soft drink
 Fruit Drinks/ Juices
 Mineral Water
 Tea/Coffee
 Health and Beverages
Cigarettes & Alcohol  ITC – classic wills
 GODEREY PHILLIPS INDIA-
four square, Marlboro, Red & white
 VST- Charminar
 IMFL
 Beer
 Wine
OTC  Dabur
 Emami
 GSK
 Amrutanjan

pg. 5
FMCG Contribution in GDP
FMCG is the fourth largest sector in the Indian economy. It provides employment to around 3
million people accounting for approximately 5% of the total factory Employment in India. It
is an important contributor to India’s GDP growth. Growth in the country’s FMCG sector is
being fueled by improving scenarios in both demand as well as supply side.
As per reports by CRISIL, the FMCG sector is set for double-digit growth in 2022 at 10-12
percent.

FMCG CAGR & Forecasting

The global FMCG packaging market was worth around USD 691.5 billion in 2021 and is
estimated to grow to about USD 955.6 billion by 2028, with a compound annual growth rate
(CAGR) of approximately 4.68 percent over the forecast period.

FMCG Sector Category Wise CAGR

 Revenue in the Beauty & Personal Care market amounts to US$25.45bn in 2022. The
market is expected to grow annually by 5.20% (CAGR 2022-2026).
 The market's largest segment is the segment Personal Care with a market volume of
US$12.08bn in 2022.
 In global comparison, most revenue is generated in the United States (US$85.06bn in
2022).

pg. 6
Customer Buying Behavior of FMCG Sector
Consumer behaviour is the study of consumers and the processes they use to choose, use
(consume), and dispose of products and services, including consumers’ emotional, mental,
and behavioural responses.
A consumer behaviour analysis should reveal:
 What consumers think and how they feel about various alternatives (brands, products,
etc.);
 What influences consumers to choose between various options;
 Consumers’ behaviour while researching and shopping;
 How consumers’ environment (friends, family, media, etc.) influences their
behaviour.

Types of consumer behaviour:

There are four main types of consumer behaviour:

1. Complex buying behaviour

This type of behaviour is encountered when consumers are buying an expensive, infrequently
bought product. They are highly involved in the purchase process and consumers’ research
before committing to a high-value investment. Imagine buying a house or a car, these are an
example of a complex buying behaviour.

2. Dissonance-reducing buying behaviour

The consumer is highly involved in the purchase process but has difficulties determining the
differences between brands. ‘Dissonance’ can occur when the consumer worries that they
will regret their choice.
Imagine you are buying a lawnmower. You will choose one based on price and convenience,
but after the purchase, you will seek confirmation that you have made the right choice.
3. Habitual buying behaviour
Habitual purchases are characterized by the fact that the consumer has very little involvement
in the product or brand category. Imagine grocery shopping: you go to the store and buy your
preferred type of bread. You are exhibiting a habitual pattern, not strong brand loyalty.
4. Variety seeking behaviour
In this situation, a consumer purchases a different product not because they weren’t satisfied
with the previous one, but because they seek variety. Like when you are trying out new
shower gel scents.

pg. 7
Consumer buying behaviour of bakery sector
Before buying a product, Consumers walk or move through a series of steps. They emphasis
the product in a way that it should satisfy their needs and have good quality with low or more
affordable price, and should deliver them with value added features. Consumer buying
pattern differ when comes to the product quality, price, status, features, packaging. They
mostly follow the rhythm of fashion and this changing preference affects their buying pattern.
To identify and predict this changing behaviour, marketers spend million rupees every year
for market research. Currently the marketers are facing difficulties to understand and target
the consumer’s behaviour because they are flourished by the different varieties, affordable
price and changing trend in the market of cosmetics. Consumer’s preference is changing
along with time. Five stages of consumer buying behaviour
There are mainly five steps/ stages in consumer decision process
1. Recognition of problem
Recognition of a problem starts when a customer realizes a problem or need. In all phases of
life, humans are considered to be the customers of one company or another. Moreover, they
have requirements and needs which have to be fulfilled at each phase. These requirements
may be low or high involved ones. The first step of consumer buying behaviour starts when
the customer realizes that he needs or wants something.
2. Search for information
Once a customer identifies a problem, the next step is to adequate information to solve the
problem. The extent of search for information depends on the customer’s level of
involvement in the purchase. The major source of information that influence the consumer’s
buying behaviour are – Advertisements, Friends, Public, commercials and experience.

3. Evaluation of alternative
Next stage of the consumer decision process is evaluating the alternatives. In this stage the
Consumer will find the alternatives. They will compare and understand what they know about
the alternative products and brands with what they considered the most.
4. Purchase decision
After making a decision whether or not to purchase, a consumer might move through the
first decision process as it plans and intends to purchase a particular brand or product.
5. Outcome
In this step, after critically analyzing each stage in the decision process, final purchase is
made.

pg. 8
FMCG Growth Factor
Here are a few reasons why the tide is changing for consumer goods:
1. Demand showing improvement post note ban: Most companies from Unilever to
Dabur to Marico, Nestle and Modules have highlighted recently that demand has
recovered post the high-value note ban in the December quarter. They say that
consumers, especially, in urban areas have got past the hurdles faced during the note
ban, prompting sales to show improvement in the March quarter.
2. Consumer staples is resilient as a category: Most analysts believe that consumer
staples as a category remains resilient to external factors such as note ban since these
are essential goods required for consumption and survival. So while factors such as
demonetization can dampen demand for one quarter, it cannot do so for long.
3. Companies were quick to adapt to the changing scenario: To lessen the pain,
companies were quick to manage inventory and distribution during the note ban,
increasing credit period for trade strapped for cash. In recent months, companies have
been talking to traders to switch to digital payments to ensure seamless transfer of
goods.
4. Companies focusing on urban for now: Most FMCG companies admit that business
will take time to return to normal in rural areas owing to the note ban. Therefore, the
focus for them will be on pushing sales in urban areas. While rural constitutes a third
of FMCG, two-thirds continues to come from urban areas so for the medium to short
term emphasis on urban till rural returns to normal, say analysts, is not a bad idea.
5. GST preparedness: That is expected to be critical for companies going forward. How
they accustom themselves to this tax regime will determine whether it will be
business as usual for them in the coming quarters.

Growth/Degrowth Pattern of Sector Pre and Post Pandemic

 Pre-covid -The FMCG industry in India has been dynamic and was undergoing
significant changes in the years leading up to the pandemic. The sector had been
seeing a slow-down since mid-2018, with growth rates steadily declining for the past
15-18 months from the mid-teens to around half of that by Jan/Feb 2020. In this
scenario, FMCG players had been trying to compete by way of price cuts and greater
offers to consumers in the hope of gaining market share. This is especially true for
urban India.
 Post-covid -However, the rural India story is one that cannot be ignored. Of late, the
FMCG sector in rural India has grown at a faster pace than its urban counterpart with
FMCG products accounting for about half of total rural spending. Semi-urban and
rural segments contribute over 40% of the overall revenues of the FMCG sector in
India and with about 12% of the world’s population living in the villages of India, the
Indian rural FMCG market is set to be a driving force for the industry at large. To
deepen their rural reach, FMCG companies are contemplating the introduction of
smaller packages for goods that will likely match the lower incomes of people in
rural India. This is a prime example of how businesses keep coming up with newer
strategies to ensure growth.

pg. 9
Effect of pandemic of bakery sector

 Due to lockdown, during the start of 2020, sales of non-edible products such as
disinfectants, toilet paper, paper goods, and hand sanitizer were high in demand and
the sales of edible products such as bakery, meat products, and many others were up
to the mark as the supply of bakery was insufficient as many of the bakers have shut
operations due to shortage of labours. Along with this, disruption in logistics
facilities due to the lockdown has created more issues in the market as consumers
were not getting products as per their requirement, which ultimately affected the
market.
 But as the time passed, government started allowing reopening of the shops, the
demand for the bakery products took hike especially bread and others as these are the
essential products which are used in daily diet, majorly as breakfast and evening
snacks. Therefore, the demand from house hold sector for bakery products has
increased on the other hand the food services sector has faced decline in the market
for bakery products that were considered to be one of the demanding products in food
service sector.

pg. 10
Top Three Players of FMCG Sector

1. Adani Wilmar (Market cap: Rs 93,056.99 Cr / PE: 115.78)

2. Hindustan Unilever limited (Market cap: Rs 530,455.47 Cr / PE: 60.55)

3. ITC (Market Cap: Rs 283,731.01 Cr/ PE: 19.17)

pg. 11
Top Three player in Bakery Sector

1. Britannia Industries Ltd.

Britannia Industries is a major food company in India. Some of its most popular brands
include NutriChoice, Good Day, and Marie Gold, among others. The company’s products are
available in over 5 million retail stores and are consumed by more than 50% Indian homes.
With a wide presence in above 60 countries across the globe, the company has presence in
the Middle East through its local manufacturing in Oman and the United Arab Emirates. It
has removed over 8,500 tonnes of trans-fat from its products and it is one of the prominent
Zero Trans Fat companies in India.

2. Parle Products Pvt. Ltd.

Parle Products is an Indian bakery and confectionery company. The company owns the
world's largest selling biscuit, Parle-G. Its product range includes biscuits, confectionery,
cakes, rusk, snacks and platina, and gift range. With more than 150 products and 36 product
brands, the company’s products are exported to more than 21 destinations.

3. Surya Food & Agro Ltd.

Surya Food and Agro Ltd manufactures and sells biscuits, cookies, cakes, confectioneries,
and juices/beverages. The company supplies its products to airlines, hotels, railways,
canteens stores departments, and organised retail outlets. Its products are available in more
than 20 countries. The popularity of brands like Zig Zag, CNC, Snacks, Butter Bite, and
Marie Lite has enabled the company's market share to increase.

Revenue, Market share & CAGR (2018-2019)

Company name Market share Revenue (cr) CAGR

ITC 14% 48159 25%
HUL 12% 47000 13%
Procter & gambler 10.74% 39291 6.84%
Britannia 6% 13449 17%

pg. 12
Porter 5 force model

Pestle Analysis

SWOT Analysis of Sector

Introduction of Company

pg. 13