BRITANNIA INDUSTRIES LIMITED INDIA
A global Indian corporation, Britannia Industries Limited, sells breads, cookies, and dairy goods. One of the oldest businesses still operating in India, it was founded in 1892 and is presently a member of the Wadia Group, which is led by Nusli Wadia. By 2023, biscuit products accounted for roughly 80% of its total revenue.
The company has been embroiled in a number of management-related scandals since the Wadia Group acquired it in the early 1990s, but it still commands a sizable portion of the market. Today, after Parle G, Britannia Industries dominates the biscuit market in India.
Establishment & History-
With an initial investment of ₹295, a group of British businesspeople founded the company in 1892. In the beginning, biscuits were made in a modest home in the heart of Kolkata. Subsequently, the business was taken over by the Gupta brothers, led by lawyer Nalin Chandra Gupta, and it was renamed V.S. Brothers. The Britannia Biscuit Company Limited (BBCo) was established in 1918 after C.H. Holmes, an English merchant with headquarters in Kolkata, was brought on as a partner. In 1924, the Mumbai facility was established, and Peek Freans obtained a majority stake in BBCo.
The British Indian government required a steady supply of cookies for its soldiers fighting in World War II. For a number of years, the Britannia Biscuit Company provided biscuits to the British Army. At times, the company would use 95% of its production capacity to make biscuits for the armed forces. World War II saw a spike in the demand for biscuits, which helped the company's revenues.
 |
| Inside Manufacturing Plant |
In 1979, the business renamed itself as Britannia Industries Limited. 1982 saw the American corporation Nabisco purchase Peek Freans' parent company and grow to become a significant foreign stakeholder. When Britannia had its initial public offering in 1978, its percentage of Indian stock had risen to 62%, solidifying Britannia's status as an Indian business. The UK-based Associated Biscuits International Limited (ABIL) held the 38 percent foreign ownership. With the assistance of the massive French food firm Danone, textile magnate Nusli Wadia of Bombay Dyeing ousted Britannia's then-chairman Rajan Pillai from the company in 1993. After obtaining Group Danone's 25% ownership in BIL in 2009, Wadia Group rose to become the company's largest stakeholder.
Treat Crème Wafers, a new category, was introduced in December 2018. In October 2022, Britannia purchased a majority share in Kenafric Biscuits, a company based in Kenya. Britannia Industries Limited nominated Varun Berry as Executive Vice Chairman and Managing Director in September 2022, and Ranjeet Kohli as Executive Director and CEO.
 |
| Biscuit Manufacturing |
With the release of Treat Croissant, a new product, the firm entered the western snacking market in August 2022, broadening its product line. To develop, produce, and market cheese products in India and other markets, Britannia Industries signed a joint venture agreement with Bel SA of France and Britannia Dairy Private Limited (BDPL) in December 2022. Bel SA invested an extra ₹215 crore in the joint venture and paid ₹262 crore to buy a 49% share in BDPL, a Britannia Industries subsidiary.
* BUSINESSES -
The primary operations of Britannia Company involve the production and retailing of biscuits as well as bakery goods such as bread, toast, cakes, and other things.
- Dairy Products :- Britannia outsources the majority of its dairy products from its affiliate and has an equity position in Dynamix Dairy. Almost 10% of Britannia's income comes from dairy products. The business trades dairy commodities business-to-business in addition to marketing dairy products to the general public. Its portfolio of dairy products increased to 47% in 2000–01 and 30% in 2001–02. Amul, the National Dairy Development Board (NDDB), and Nestlé India are its principal rivals.
 |
| Dairy Products |
Britannia and the Fonterra Co-operative Group of New Zealand, an integrated dairy corporation that manages the whole value chain from milk procurement to the creation of value-added products including cheese and buttermilk, established a joint venture on October 27, 2001. Britannia plans to import the majority of its goods from New Zealand, which it would then sell in India. Britannia will be able to transmit technology thanks to the joint venture. A strategic investor will own the remaining 2 percent of the JV, with Britannia and the New Zealand Dairy holding 49% each.
Additionally, Britannia has hinted that Dynamix and other aspects of its dairy business would be moved to the joint venture. Nonetheless, the company was required to establish its own manufacturing facilities as a condition of the authorities' acceptance of the joint venture. It would be forced to compete with Danone, who had just started its own dairy company, as it would only be permitted to trade at the wholesale level.
- Biscuits :- As of 2023, biscuit sales account for nearly 80% of Britannia's yearly income. In India's organized biscuit market, Britannia is predicted to hold a 33% market share.
 |
| Biscuit Product |
The yearly capacity of the company's factories is 433,000 tons. Britannia's biscuit brands include Milk Bikis, Bourbon, Nice Time, Marie Gold, Tiger, Nutrichoice, Good Day, 50 50, Treat, Pure Magic, and Little Hearts. Tiger, a mass-market brand, generated sales of $150.75 million in 2006, which included exports to the United States and Australia. This represents twenty percent of Britannia's income for that year.
* Partnership and Joint Ventures :-
- It established a joint venture with the Greek company Chipita SA in March 2017 to manufacture and market croissants that are ready to eat in India.
- The firm and Accenture teamed in September 2021 to digitize the company's warehouses and manufacturing facilities.
- It partnered with personal concierge startup Dunzo during the COVID-19 outbreak in India to deliver necessities right to customers' doorsteps in April 2020.
 |
| Joint Venture With Bel Good Cheese |
