Subject: Security Analysis and Portfolio Management

Company: Britannia Industries

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Assignment: Equity Analysis

Particular 2019 - 20 2020 -21 (in Changes 2021 -22 (in Changes Changes
s (in Rs. Cr.) Rs. Cr.) (in 20-21) Rs. Cr.) (in 21-22) 2022 - 23 (in Rs. Cr.) (in 22-23)
↑ ₹0.04 Cr.
(Increase in share
Equity 24.05 24.09 capital on exercise 24.09 NIL 24.09 NIL
Paid Up of employee stock
Capital options)
Return on
Equity ↑ 9.9%
↑ 20.38%
(Profit ↑ 10.64% (This was
(This was driven
after 35.71% 46.35% (This was driven by 66.73% driven by higher
by higher profits 76.63%
Tax/Avera (1,484.30/41 (1,760.03/3797. higher profits, lower (1603.19/240 profits and
and efficient use (2139.3/2791.85)
ge 57.05 ) 09) debt, and a smaller 2.54) favourable
of shareholders
Sharehold equity base) market
equity)
ers' conditions)
Funds)
Net Profit
Margin
13.11% 13.89% 11.68%
(Profit 13.51%
(1484.30/11 (1760.03/12671 ↑ 0.78% (1603.19/137 ↓ 2.21% ↑ 1.83%
after (2139.3/15839.3)
322.11) .53) 31.05)
Tax/Total
Income)
↑ ₹1349.42 Cr. ↑ ₹2108.25 Cr.
(This was driven by ↑ 1059.52 Cr. (This was
factors like (This was driven driven by
11,322.11 12,671.53 increased in-home 13731.05 by factors like 15,839.30 factors like
consumption and increased sales strategic price
Sale (Total strategic price volume) increases and
Income) adjustments.) expansions)
↑ ₹275.73 Cr.
(This was driven by
↑ 536.11 Cr.
factors like ↓ ₹156.84 Cr.
(This was
increased sales (This was driven
driven by
1,484.30 1,760.03 volume, improved 1,603.19 by factors like 2,139.30
factors like cost
operational rising input
efficiency and
efficiency, and costs)
premiumization)
favourable market
Net Profit conditions.)
841.64 3491.41
Dividend (Interim (Interim N/A 1,661.99 N/A 1,734.25 N/A
History Dividend) Dividend)
Dividend
Yield N/A N/A N/A N/A N/A 2.58% N/A
(Current)
Share
Promoter 50.6%
Holding
N/A N/A N/A N/A N/A Institutional 33.8% N/A
Pattern
Public 15.6%
(Current)

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Assignment: About the Company

Brief History

● Established in 1892 with ₹295

investment, initially as V.S.
Brothers in Kolkata, Britannia
evolved through ownership
changes, notably by the Gupta
brothers and C.H. Holmes,
leading to the launch of The
Britannia Biscuit Company
Limited in 1918.

● The Mumbai factory was established in 1924, playing a crucial role

in supplying biscuits during World War II.

● Renamed Britannia Industries Limited in 1979, the company

experienced foreign acquisitions, a public issue, and leadership
changes.

● In 1993, Nusli Wadia assumed control with Danone's help. Wadia

Group became the largest shareholder in 2009.

● Recent milestones include the launch of Treat Crème Wafers in

2018, acquisition of Kenafric Biscuits in 2022, key appointments,
and a joint venture with Bel SA in 2022 for cheese product
development.

● In August 2022, Britannia expanded its portfolio with Treat Croissant

in the western snacking market.

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Promoter of the Company

Nusli Wadia is an Indian billionaire

businessman and the chairman of the
Wadia Group, a conglomerate involved in
various industries such as FMCG, textiles,
and real estate.

Here's a summary of his achievements and

background:

● Chairman of the Wadia Group: The Wadia Group is an Indian

conglomerate with roots dating back to 1736. It includes well-known
companies like Britannia Industries, Bombay Dyeing, and GoAir
(which recently filed for bankruptcy).

● Billionaire businessman: His net worth is estimated at around

US$4.5 billion.

● Prominent family: He comes from a well-known family in India. His

paternal grandfather was a renowned textile industrialist, and his
maternal grandfather was Muhammad Ali Jinnah, the founder of
Pakistan.

● Controversial figure: He is known for his aggressive business style

and has been involved in several legal battles.

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Management Team

● Mr. Varun Berry, Executive

Vice-Chairman and Managing Director

● Mr. Rajneet Singh Kohli, Executive

Director and Chief Executive Officer

● Mr. N. Venkataraman, Executive Director

and Chief Financial Officer

Market Capitalization

Approximately ₹1,24,000 crore (as of February 2024)

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Category of Company

Fast moving consumer goods (FMCG)

Product Portfolio

Biscuits, Bread, Cakes, Rusk, and Dairy

products including Cheese, Beverages, Milk and Yoghurt.

Brand Portfolio

Tiger, Marie Gold, Good Day, 50:50, Treat,

NutriChoice and Milk Bikis.

Recent Expanisons / Diversifications

● Expansion within core categories:

Adding cheese, yoghurts, rusks, and
croissants to their dairy and bakery
lines.
● Diversification into new categories:
Launching healthy snacks (Better Snack
Co.) and exploring salty snacks (Treat brand).
● International Expansion: Growing their presence in the Middle East,
Africa, and Southeast Asia.