Company Analysis of BRITANNIA INDUSTRY LIMITED
Overview of the company
In an Indian household Britannia Industries has been a generational brand that has been trusted for
past 100 years, catering brands like Good Day, Tiger, NutriChoice, Milk Bikis and Marie Gold etc. The
Britannia Industries has a slogan stating ‘Eat Healthy, Think Better’ these healthy products include
Biscuits, Bread, Cakes, Rusk, Dairy and adjacencies. The revenue has exceeded more than 9000Cr.
From this about 5% of revenue. The company is a multinational company that has shown presence in
more than 60 countries, even then they have been focused on quality.
Shareholder’s Pattern Over Past Few Years
1) Britannia’s promoters have remained unchanged for a past few years holding the stakes of
companies a bit more than 50% holding at a rate of 50.55%.
2) FII’s (Foreign Institutional Investor) have been varying from range of 14.71%-18.40%, the
investment of FII have been decreasing constantly from June 2021 till newest quarter in Sep
2022 being 17.18%.
3) Number of FII have increased from 688 to 751 in Sep 2022 QRT.
4) DII’s (Domestic Institutional Investor) have been hovering around at a percentage rate of
13.4%.
5) Mutual funds have increased the holding of Britannia Industry from 5.22% to 5.92% in Sep
2022.
6) Public holding of the shares has been quite a roller-coaster and now hovers at a percentage
rate of 20%.
This graph shows the latest shareholding pattern of Britannia Industries.
Management of the company: Professionally Managed
Britannia has a good professionally owned management hold in domestic field but talking about the
international management the company has yet to improve as the management has been
restructured quite a few times, as the company is expanding in the international business they have
been facing a low growth rate in the food business. The price of the commodities has been
increasing creating uneasiness among the customers. This can be the reason as the international
management is not as stable as the domestic management should be. The management of the
company is highly qualified in respect to the company they own, thus keeping the company in good
hands.
SWOT ANALYSIS
The analysis done on every company that tells us about the strengths weakness from the insides and
the threats the company might be facing from its competitors or the opportunity it can gran to grow
and expand more.
Here is a SWOT Analysis done on Britannia Industry for the same.
1) Strength
a) Heavy market share- The company has a good market hold where it stands up to a stake
of 30% in the category as the products produced are at a reasonable price and can be
consumed by all income earning individuals.
b) Market leader- The company is a major player and offers variety of products which
attract the customers like breads cakes etc. making it a market leader.
2) Weakness
a) Overdependence on one business- the biscuit industry for Britannia is huge comprising
about 3/4th of the revenue thus can affect if that business tends to slow down due to
change in customer preference.
b) Frequent changes in top management- The top management has been restructured
quite a few times due to the expanding market only in the international sector.
3) Opportunity
a) Foreign market- As the company has been expanding in the international business being
a whole new market can take the business to new heights and grow more.
b) Ecommerce- Due to the introduction of grocery apps and all this the delivery to the rural
area has also opened up as the products can reach doorstep expanding the market to
new areas with ease.
4) Threats
a) Competition- The food industry is quite competitive and also that the products cannot
be differentiated much from each other leads to a loss for the company.
b) Price of Raw Material- Due to inflation and increase in the cost of raw material the
products produced by the company are increasing in price and thus decreasing the
profitability or can lead to case where customers shift to different products.
c) Bargaining power of buyers- Due to increasing variety of the products available to the
customers the customers are shifting to different brands so that they can find good
products at a reasonable price and this leads to decreased in consumption for the
company.
COMPETITIVE ANALYSIS
A company might not be able to achieve whole market over the others unless it is a monopoly as
other companies may provide similar or a bit different products to satisfy the customer’s needs.
Now we will check Britannia’s performance with respect to its competitors
1) PE RATIO
This shows the PE ratio of Britannia Industry in pink with its competitors namely Tata Consumers in
blue and nestle India in red.
Britannia has a Upper hand in respect of PE which grew by more than 21% in case of nestle which
was around 10%, showing that shareholders are able to earn more per share.
2) EP
Tata consumers has a considerable Advantage in EPS Growth being as high as 47% while
Britannia hovers with a negative EPS of -0.76%.
3) Operating Profit Margin
Operating Profit Margin
12 000
10 000
8 000
6 000
4 000
2 000
0
2011
2012
2013
tata
2014
nestle
2015
2016
Britannia
Operating profit margin tells us about the profitability of the company from its operating activities
while nestle has a High operating profit margin Britannia doesn’t fall behind in this case while Tata
has not been able to earn much from its operating activities.
4) Sales Growth Rate
Sales growth rate
30,00%
25,00%
20,00%
15,00%
10,00%
5,00%
0,00%
-5,00%
-10,00%
-15,00%
-20,00%
-25,00%
2012
2013
2014
tata
2015
2016
nestle
2017
2018
2019
2020
2021
Britannia
While nestle and Tata saw a negative trend of sales growth in 2015,2016 respectively Britannia has
been able to keep up with the sales growth rate hovering between 10-15% every year, which is a
commendable job to do so.
Conclusion
To sum up everything that has been included in the report created about Britannia Industry is a
remarkable company with a superior management that has knowledge about the work making it
quite stable, due to its long legacy in India Britannia has made it’s a respectable brand with the India
generation as they grew up with the products the company provided. According to my analysis the
company should work on its raw material pricing or find a better alternative to give a competitive
advantage over the other firms, while making a good grip on the international business so that the
company can generate more revenue which would help them reach new heights.