94187572 study of supply chain management at britannia industries

7/23/2019 94187572 Study of Supply Chain Management at Britannia Industries

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ANALYSIS OF SUPPLY CHAIN MANAGEMENT

AT

BRITANNIA INDUSTRIES



Acknowledgement

It would be of great pleasure for me to take the opportunity of thanking nearly

everybody who had been of great help in the completion of my dissertation. My

sincere gratitude goes to MR.KAPIL GARG (DEPPT. OF MANAGEMENT)

and MR.MANORANJAN (DEAN). My institute guide, without whose help this

dissertation would have seemed impossible.

I owe immensely for the minute help that was forwarded to me by friends in my

organization. Both of the above mentioned persons supported me incredibly and

guided me with suggestions and probation’s for the betterment of my

accomplished work.

It has been of great learning to be on the job and doing the dissertation

simultaneously, which enriched my knowledge and developed my outlook.

I am looking forward to continued support from my friends and colleagues in

future as well. nly with their encouragement and coorporation.

SARITA KUMARI



Content

!hapter ": Introd!t"on

#$eed of the study # Background

!hapter %: R#$#%r!& '#t&odoo*

#bjectives of the study

#&esearch Methodology 'sample size, instrument

used, Methods of data collection(

!hapter ): D#$!r"+t",# -or o/ $0to+"! on $td*

!hapter *: D%t% %n%*$"$ 1 Int#r+r#t%t"on

!hapter +: S#$t"on$ 1 Con!$"on$

!hapter : B"0"or%+&* 1 Ann#2r#



SYNOPSIS

TOPIC: 3 STUDY OF SUPPLY CHAIN MANAGEMENT AT BRITANNIA

INDUSTRIES.

Chapter 1:

I$-&/!0-I$1#

2hat is supply chain management3

4upply chain management is a process of strategically managing the procurement,

movement and storage of materials, parts and finished inventory through the

organization and its marketing channels in such a way that current and future are

ma5imized through the cost effective fulfillment of orders.

6lements of supply chain management1 # -wo main elements4upply chain management planning1 based on optimization theory and the use of

highly sophisticated systems are imperative to arrived at the most efficient

production schedules, distribution plans and transportation plans.

4upply chain management e5ecution1 start from date of schedule. ue to various

practical reasons and limitations deviations from the plans are generated. 0n

e5ecution level decision includes re#planning of the material flows, loading

factors and the margins.

7rimary focus of 4!M is to serve consumers with e5cellent goods and servicesagainst minimum possible costs and response times. It based on sophisticated I-

systems and knowledge workers.

Chapter 2:

&6460&!8 M6-89:;1#

-he non#e5ploratory research methodology will be used for thesis writing.

B<6!-I=641

0nalyze the effects of supply chain management on Britannia industries

process.

4upplier !hain management in Britannia industries visa priyagold

biscuits.

-o provide possible strategies for better implementation in 4!M in

Britannia industries.



&6460&!8 I$4-&/M6$-41#

-he secondary data will be collected through internet, books and the materials

published in journals and magazines.

4!76 > -86 4-/;1In competitive scenario how to increases the business with the implementation ofsupply chain management.

9IMI-0-I$41

$ot private data’s or primary data’s which really give correct information.

Chapter 3:

escriptive works on the other biscuits producers companies.

Chapter 4:

ata analysis ? Interpretation

Base on the secondary data’s which will be collect through internet, magazines,

books etc.

Chapter 5:

4uggestions ? conclusions

Chapter 6:

Bibliography ? 0nne5ure



INTRODUCATION:

In today’s rapidly changing business environment, ever greater demands are being

placed on business

• to provide products and services @uicker

• with greater added value

• to the correct location

• 2ith no relevant inventory position.

!ustomers want more @uality, design, innovation, choice, convenience andservice, and they want to spend less money, effort, time and risk.

-he supply chain of a company consists of different departments, ranging from

procurement of materials to customer service.

4upply !hain Management means transforming a company’s Asupply chainA into

an optimally efficient, customer#satisfying process, where the effectively of the

whole supply chain is more important than the affectivity of each individual

department.

NEED FOR SCM IN THE MARKET TODAY:

Businesses the world over are struggling to sustain competitiveness in a global

zing economy. -hey are at present in the midst of a revolutionary transformation

that of competition shifting from industrial age to information age. uring the

industrial age the companies’ succeeded by how well they could capture the

benefits from economies of scale and scope. 8owever, information age does not

allow all this and has initiated following uni@ue challenges, which the businesses

have to cope up with.



M%n%"n n!#rt%"nt*: !ompanies are finding difficult to predict the

changes in this competitive market today. !ustomers are becoming competitors

competitors are becoming partners and unconventional competition is emerging.

Und#r$t%nd"n !$to'#r$: It is becoming increasingly important to

understand customers needs and wants deeply and to translate these into uni@ue

value added business mission.

Und#r$t%nd"n o0%"4%t"on o/ 0$"n#$$: :lobalization is a process,

which cuts across national boundaries, integrating and connecting communities in

new#spaces time combinations. -he emergence of Internet as a global

communication vehicle has had a profound impact on the business processes.

4ince the industrial revolution, the developments in tooling, processes, materials

etc. accelerated the growth of factory system remarkably.

-he concept of supply chain management is based on this view of

competency alliance. In fact, effective 4!M is the result of powerful alliance

between customer, manufacturer, and the supplier.

5HAT IS SUPPLY CHAIN6

S++* C&%"n: 0 supply chain is a network of facilities and distribution options

that performs the functions of procurement of materials, transformation of these

materials into intermediate and finished products, and the distribution of these

finished products to customers. 4upply chains e5ist in both service and

manufacturing organizations, although the comple5ity of the chain may vary

greatly from industry to industry and firm to firm.

Below is an e5ample of a very simple supply chain for a single product, where

raw material is procured from vendors, transformed into finished goods in a single

step, and then transported to distribution centers, and ultimately, customers.

&ealistic supply chains have multiple end products with shared components,

facilities and capacities. -he flow of materials is not always along an arbores cent

network, various modes of transportation may be considered, and the bill of

materials for the end items may be both deep and large.



5&%t "$ $++* !&%"n '%n%#'#nt6

4upply chain management '4!M( is the combination of art and science that goes

into improving the way your company finds the raw components it needs to make

a product or service and deliver it to customers.

4!M is also called CDe5tendingD which means integrating the internal and e5ternal

partners on the supply and process chain to get raw materials to the manufacturer

and finished products to the consumer. Most companies fail to integrate their

supply chain strategies for a number of reasons among them a lack of system

integration due to fragmented supply chain responsibilities. But in neglecting

integration and the broader concept of supply chain management, firms might be

missing an opportunity to cut costs and boost customer service.

T&# /oo-"n %r# /",# 0%$"! !o'+on#nt$ o/ SCM:

7. P%n E -his is the strategic portion of 4!M. ;ou need a strategy for managing

all the resources that go toward meeting customer demand for your product or

service. 0 big piece of planning is developing a set of metrics to monitor the

supply chain so that it is efficient, costs less and delivers high @uality and value to

customers.

8. Sor!# E !hoose the suppliers that will deliver the goods and services you

need to create your product. evelop a set of pricing, delivery and payment

processes with suppliers and create metrics for monitoring and improving the

relationships. 0nd put together processes for managing the inventory of goods

and services you receive from suppliers, including receiving shipments, verifying

them, transferring them to your manufacturing facilities and authorizing supplier

payments.

9. M%# E -his is the manufacturing step. 4chedule the activities necessary for

production, testing, packaging and preparation for delivery. 0s the most metric#

intensive portion of the supply chain, measure @uality levels, production output

and worker productivity.



. D#",#r E -his is the part that many insiders refer to as logistics. !oordinate the

receipt of orders from customers, develop a network of warehouses, pick carriers

to get products to customers and set up an invoicing system to receive payments.

;. R#trn E -he problem part of the supply chain. !reate a network for receiving defective ande5cess products back from customers and supporting customers who have problems with

delivered products.

S++* !&%"n '%n%#'#nt &%$ t&# /oo-"n !&%r%!t#r"$t"!$:

0n ability to secure raw material or finished good from anywhere in world.

0 centralized, global business and management strategy with flawless local

e5ecution.

n#line, real#time distributed information processing to the desktop, providing total supply chain information visibility.

-he ability to manage information not only within a company but across

industries and enterprises.

-he seamless integration of all supply chain managements, including third#

party suppliers, information systems, cost accounting standards, and

measurement systems.

-he development and implementation of accounting models such as

activity#based costing that like cost to performance are used as tools forcost reduction.

0 reconfiguration of the supply chain organization into high#performance

team going from the shop floor to senior management.

-raditionally, marketing, distribution, planning, manufacturing, and the

purchasing organizations along the supply chain operated independently. -hese

organizations have their own objectives and these are often conflicting. Marketing

objectives are high customer service and ma5imum sales dollars conflict withmanufacturing and distribution goals. Many manufacturing operations are

designed to ma5imize throughput and lower costs with little consideration for the

impact on inventory levels and distribution capabilities. 7urchasing contracts are

often negotiated with very little information beyond historical buying patterns.

-he result of these factors is that there is not a single, integrated plan for the



organization###there were as many plans as businesses. !learly, there is a need for

a mechanism through which these different functions can be integrated together.

4upply chain management is a strategy through which such integration can be

achieved.

4upply chain management is typically viewed to lie between fully vertically

integrated firms, where a single firm and those own the entire material flow where

each channel member operates independently. -herefore coordination between

the various players in the chain is keys in its effective management. !ooper and

6llram F"GG)H compare supply chain management to a well#balanced and well#

practiced relay team. 4uch a team is more competitive when each player knows

how to be positioned for the hand#off. -he relationships are the strongest between

players who directly pass the baton, but the entire team needs to make a

coordinated effort to win the race.

S++* C&%"n D#!"$"on$:

4upply chain management is a cross#functional approach to managing themovement of raw materials into an organization and the movement of finishedgoods out of the organization toward the end#consumer. 0s corporations strive tofocus on core competencies and become more fle5ible, they have reduced their

ownership of raw materials sources and distribution channels. -hese functions areincreasingly being outsourced to other corporations that can perform the activities better or more cost effectively. -he effect has been to increase the number ofcompanies involved in satisfying consumer demand, while reducing managementcontrol of daily logistics operations. 9ess control and more supply chain partnersled to the creation of supply chain management concepts. -he purpose of supplychain management is to improve trust and collaboration among supply chain

partners, thus improving inventory visibility and improving inventoryvelocity.4upply chain activities can be grouped into strategic, tactical, andoperational levels of activities.



Str%t#"! d#!"$"on$ : strategic decisions are made typically over a longer time

horizon. -hese are closely linked to the corporate strategy 'they sometimes the

corporate strategy(, and guide supply chain policies from a design perspective.

• 4trategic network optimization, including the number, location, and size of

warehouses, distribution centers and facilities.

• 4trategic partnership with suppliers, distributors, and customers, creating

communication channels for critical information and operational

improvements such as cross docking, direct shipping, and third#party

logistics.

• 7roduct design coordination, so that new and e5isting products can be

optimally integrated into the supply chain, load management

• Information -echnology infrastructure, to support supply chain operations.

• 2here to make and what to make or buy decisions

• 0lign verall rganizational 4trategy with supply strategy

T%!t"!% d#!"$"on$:

• 4ourcing contracts and other purchasing decisions.• 7roduction decisions, including contracting, locations, scheduling, and

planning process definition.• Inventory decisions, including @uantity, location, and @uality of inventory.• -ransportation strategy, including fre@uency, routes, and contracting.• Benchmarking of all operations against competitors and implementation of

best practices throughout the enterprise.• Milestone 7ayments

O+#r%t"on% d#!"$"on$ : operational decisions are short term, and focus on

activities over a day#to#day basis. -he effort in these types of decisions is toeffectively and efficiently manage the product flow in the AstrategicallyA plannedsupply chain

• aily production and distribution planning, including all nodes in thesupply chain.

• 7roduction scheduling for each manufacturing facility in the supply chain'minute by minute(.

• emand planning and forecasting, coordinating the demand forecast of allcustomers and sharing the forecast with all suppliers.



• 4ourcing planning, including current inventory and forecast demand, incollaboration with all suppliers.

• Inbound operations, including transportation from suppliers and receivinginventory.

• 7roduction operations, including the consumption of materials and flow offinished goods.

• utbound operations, including all fulfillment activities and transportationto customers.

• rder promising, accounting for all constraints in the supply chain,including all suppliers, manufacturing facilities, distribution centers, andother customers.

• 7erformance tracking of all activities

For '%<or d#!"$"on %r#%$ "n $++* !&%"n '%n%#'#nt:

"( location

%( production

)( inventory

*( transportation 'distribution(

0nd there are elements in each of these decision areas.

Lo!%t"on D#!"$"on$

-he geographic placement of production facilities, stocking points, and sourcing

points is the natural first step in creating a supply chain. -he location of facilities

involves a commitment of resources to a long#term plan. nce the size, number,

and location of these are determined, so are the possible paths by which the

product flows through to the final customer. -hese decisions are of great

significance to a firm since they represent the basic strategy for accessing

customer markets, and will have a considerable impact on revenue, cost, and level

of service. -hese decisions should be determined by an optimization routine thatconsiders production costs, ta5es, duties and duty drawback, tariffs, local content,

distribution costs, production limitations, etc. 0lthough location decisions are

primarily strategic, they also have implications on an operational level.



Prod!t"on D#!"$"on$

-he strategic decisions include what products to produce, and which plants to

produce them in, allocation of suppliers to plants, plants to direct customers, anddirect customers to customer markets. 0s before, these decisions have a big

impact on the revenues, costs and customer service levels of the firm. -hese

decisions assume the e5istence of the facilities, but determine the e5act path's(

through which a product flows to and from these facilities. 0nother critical issue

is the capacity of the manufacturing facilities##and this largely depends on the

degree of vertical integration within the firm. perational decisions focus on

detailed production scheduling. -hese decisions include the construction of the

master production schedules, scheduling production on machines, and e@uipment

maintenance. ther considerations include workload balancing, and @uality

control measures at a production facility.

In,#ntor* D#!"$"on$

-hese refer to means by which inventories are managed. Inventories e5ist at every

stage of the supply chain as either raw material, semi#finished or finished goods.

-hey can also be in process between locations. -heir primary purpose is to buffer

against any uncertainty that might e5ist in the supply chain. 4ince holding ofinventories can cost anywhere between % to * percent of their value, their

efficient management is critical in supply chain operations. It is strategic in the

sense that top management sets goals. 8owever, most researchers have

approached the management of inventory from an operational perspective. -hese

include deployment strategies 'push versus pull(, control policies ### the

determination of the optimal levels of order @uantities and reorder points, and

setting safety stock levels, at each stocking location. -hese levels are critical,

since they are primary determinants of customer service levels.



Tr%n$+ort%t"on D#!"$"on$

-he mode choice aspects of these decisions are the more strategic ones. -hese are

closely linked to the inventory decisions, since the best choice of mode is oftenfound by trading#off the cost of using the particular mode of transport with the

indirect cost of inventory associated with that mode. 2hile air shipments may be

fast, reliable, and warrant lesser safety stocks, they are e5pensive. Meanwhile

shipping by sea or rail may be much cheaper, but they necessitate holding

relatively large amounts of inventory to buffer against the inherent uncertainty

associated with them. -herefore customer service levels and geographic location

play vital roles in such decisions. 4ince transportation is more than ) percent of

the logistics costs, operating efficiently makes good economic sense. 4hipment

sizes 'consolidated bulk shipments versus 9ot#for#9ot(, routing and scheduling of

e@uipment are keys in effective management of the firmJs transport strategy.

Fn!t"on$ o/ S++* !&%"n '%n%#'#nt:

S++"#r '%n%#'#nt: the goal is to reduce the number of suppliers and

get them to become partners in business in a winKwin relationship. -he

benefits are seen in reduced purchase order '7( processing costs

increased numbers of 7s processed by fewer employees, and reducedorder processing cycle times.

In,#ntor* '%n%#'#nt: the goal is to shorten the order#ship#bill cycle.

2hen a majority of partners’ are electronically linked, information fa5ed or

mailed in the past can now be sent instantly. ocuments can be tracked to

ensure they received, thus improving auditing capabilities. -he inventory

management solution should enable the reduction of inventory levels,

improve inventory turns, and eliminate out#of#stock occurrences.

D"$tr"0t"on '%n%#'#nt: the goal is to move documents related to

shipping 'bills of lading, purchase orders, advanced ship notices, and

manifest claims(. 7aperwork that typically took days to cycle in the past

can now be sent in moments and contain more accurate data, thus allowing

improved resources planning.



C&%nn# '%n%#'#nt: the goal is to @uickly disseminate information

about changing operational conditions to trading partners. In other words,

technical, product, and pricing information that once re@uired repeated

telephone calls and countless labor hours to provide can now be posted to

electronic bulletin boards, thus allowing instant access. -hus electronicallylinking production with their international distributor and seller networks

eliminates thousands of labor hours per week in the process.

P%*'#nt '%n%#'#nt: the goal is to link the company and the suppliers

and distributors so that payments can be sent and received electronically.

-his process increases the speed at which companies can compute invoices,

reducing clerical errors and lowering transaction fees and costs while

increasing the number of invoices processed.

F"n%n!"% '%n%#'#nt: the goal is enable global companies to manage

their money in various foreign accounts. !ompanies must work with

financial institutions to boost their ability to deal on a global basis. -hey

need to assess their risk and e5posure in global financial markets and with

global information as opposed to local market information.

S%#$ /or!# +rod!t","t*: the goal is to improve the communication and

flow of information among the sales, customer, and production functions.

9inking the sales force with regional and corporate offices establishes

greater access to market intelligence and competitor information that can be

funneled into better customer service and service @uality. !ompanies need

to collect market intelligence @uickly and analyze it more thoroughly. -hey

also need to help their customers introduce their products to market faster,

giving them a competitive edge.

In sum, the 4!M process increasingly depends on electronic markets because

of global sourcing of products and services to reduce costs, short product lifecycle, and increasingly fle5ible manufacturing resulting in a variety of

customizable products.



SUPPLY CHAIN STRATEGY:

4upply chain strategy will have a major impact on creating value for a company

and its supply chain partners. 0n effective supply chain strategy may beformulated to meet the needs of the market and integrate them with technology to

generate the highest level of customer satisfaction while delivering the highest

value to the shareholders.

S++* !&%"n $tr%t#* /r%'#-or

emand flowstrategy

!ollaborationstrategy

4upply chainstrategy

framework

!ustomer

servicestrategy

-echnologyintegrationstrategy



7. Co%0or%t"on $tr%t#*: opportunity for collaboration among business partners will vary depending upon the organization’s perspective role in thesupply chain.

M%n/%!tr"n=$++"#r !o%0or%t"on1 by collaborating with suppliers,manufacturers will derive benefits in activities such as products development,order fulfillment and capacity planning.

M%n/%!tr#r=!$to'#r !o%0or%t"on: the opportunities of collaboration between manufacturers and customers are focused on demand planning andinventory replenishment. -his approach ensures that the customer re@uirementsare met efficiently.

Co%0or%t"on -"t& t&"rd +%rt* %nd /ort& +%rt* o"$t"!$ +ro,"d#r$: thecollaboration of companies with )rd party logistics providers focuses on jointly planning logistics activities. It also gives the company the added advantage of better packaging. -he *th party logistics organization is one of the intermediatestages along the logistics spectrum that combine the benefits of the outsourcingand in sourcing.

8. D#'%nd /o- $tr%t#*: traditionally, in supply chain management, the keyfocus and scope has been in managing flow of goods from suppliers through themanufacturing and distribution chain to the customer.

9. C$to'#r $#r,"!# $tr%t#*: customer satisfaction level is directly proportional to the service provided by the company. >ormulating a customerservice strategy involves addressing three steps, namely, customer segmentation,cost to service and revenue management.

C$to'#r $#'#nt%t"on1 a company has to decide on the segment it wants to

target for a particular commodity. It can decide not to have a homogenous market,which is unacceptable.

Co$t to $#r,#: it is important to obtain an impartial assessment of whether thethings that the customers want the feasible for the company.

R#,#n# '%n%#'#nt: determination of the appropriate response to theidentified needs and e5pectations of each customer segment must be completed.



-he response that ma5imizes the firm’s profitability and growth should bedetermined.

. T#!&noo* "nt#r%t"on $tr%t#*: developments in I- enabled the

integration of business information systems, both horizontally and vertically. 0number of I-#based supply chain information management tools are nowavailable to provide intelligent decision support and e5ecution management

4upply chainmanagement

!ustomer

analysisemand?lead#timemgt

Manufacturing

7urchasing

-ransportation

Materials

management

!ost benefitand analysis

Inventory mgt? control



Int#r%t#d SCM %++ro%!&

Supply chain management problems:

4upply chain management must address the following problems1

• istribution $etwork !onfiguration1 $umber and location of suppliers, production facilities, distribution centers, warehouses and customers.

• istribution 4trategy1 !entralized versus decentralized, direct shipment, pull or push strategies, third party logistics.

• Information1 Integrate systems and processes through the supply chain toshare valuable information, including demand signals, forecasts, inventoryand transportation.

• Inventory Management1 Luantity and location of inventory including raw

materials, work#in#process and finished goods.

S++* C&%"n Mod#"n A++ro%!&#$:

!learly, each of the above two levels of decisions re@uire a different perspective.

-he strategic decisions are, for the most part, global or Aall encompassingA in that

they try to integrate various aspects of the supply chain. !onse@uently, the models

that describe these decisions are huge, and re@uire a considerable amount of data.

ften due to the enormity of data re@uirements, and the broad scope of decisions,

these models provide appro5imate solutions to the decisions they describe. -he

operational decisions, meanwhile, address the day to day operation of the supply

chain. -herefore the models that describe them are often very specific in nature.

ue to their narrow perspective, these models often consider great detail and

provide very good, if not optimal, solutions to the operational decisions.

-o facilitate a concise review of the literature, and at the same time attempting to

accommodate the above polarity in modeling, we divide the modeling approaches

into three areas ### $etwork esign, &ough !utA methods, and simulation basedmethods. -he network design methods, for the most part, provide normative

models for the more strategic decisions. -hese models typically cover the four

major decision areas described earlier, and focus more on the design aspect of the

supply chain the establishment of the network and the associated flows on them.

A&ough cutA methods, on the other hand, give guiding policies for the operational

http://en.wikipedia.org/wiki/Distribution_(business)

http://en.wikipedia.org/wiki/Strategy

http://en.wikipedia.org/wiki/Inventory

http://en.wikipedia.org/wiki/Distribution_(business)

http://en.wikipedia.org/wiki/Strategy

http://en.wikipedia.org/wiki/Inventory



decisions. -hese models typically assume a Asingle siteA 'i.e., ignore the network(

and add supply chain characteristics to it, such as e5plicitly considering the siteJs

relation to the others in the network. 4imulation methods are a method by which a

comprehensive supply chain model can be analyzed, considering both strategic

and operational elements. 8owever, as with all simulation models one can onlyevaluate the effectiveness of a pre#specified policy rather than develop new ones.

It is the traditional @uestion of A2hat If3A versus A2hatJs Best3A

N#t-or D#$"n M#t&od$:

0s the very name suggests, these methods determine the location of production,

stocking, and sourcing facilities, and paths the product's( take through them. 4uch

methods tend to be large scale, and used generally at the inception of the supplychain. -he earliest work in this area, although the term Asupply chainA was not in

vogue, was by :eoffrion and :raves F"GN*H. -hey introduce a multi#commodity

logistics network design model for optimizing annualized finished product flows

from plants to the !Js to the final customers. :eoffrion and 7owers F"GG)H later

give a review of the evolution of distribution strategies over the past twenty years,

describing how the descendants of the above model can accommodate more

echelons and cross commodity detail.

Breitman and 9ucas F"GONH attempt to provide a framework for a comprehensivemodel of a production#distribution system, A790$6-4A, that is used to decide

what products to produce, where and how to produce it, which markets to pursue

and what resources to use. 7arts of this ambitious project were successfully

implemented at :eneral Motors.

!ohen and 9ee F"GO+H develop a conceptual framework for manufacturing

strategy analysis, where they describe a series of stochastic sub# models, that

considers annualized product flows from raw material vendors via intermediate plants and distribution echelons to the final customers. -hey use heuristic

methods to link and optimize these sub# models. -hey later give an integrated and

readable e5position of their models and methods in !ohen and 9ee F"GOOH.

!ohen and 9ee F"GOGH present a normative model for resource deployment in a

global manufacturing and distribution network. :lobal after#ta5 profit 'profit#



local ta5es( is ma5imized through the design of facility network and control of

material flows within the network. -he cost structure consists of variable and

fi5ed costs for material procurement, production, distribution and transportation.

-hey validate the model by applying it to analyze the global manufacturing

strategies of a personal computer manufacturer.

>inally, 0rntzen, Brown, 8arrison, and -rafton F"GG+H provide the most

comprehensive deterministic model for supply chain management. -he objective

function minimizes a combination of cost and time elements. 65amples of cost

elements include purchasing, manufacturing, pipeline inventory, transportation

costs between various sites, duties, and ta5es. -ime elements include

manufacturing lead times and transit times. /ni@ue to this model was the e5plicit

consideration of duty and their recovery as the product flowed through different

countries. Implementation of this model at the igital 6@uipment !orporation has

produced spectacular results ### savings in the order of P" million dollars.

!learly, these network#design based methods add value to the firm in that they lay

down the manufacturing and distribution strategies far into the future. It is

imperative that firms at one time or another make such integrated decisions,

encompassing production, location, inventory, and transportation, and such

models are therefore indispensable. 0lthough the above review shows

considerable potential for these models as strategic determinants in the future,they are not without their shortcomings. -heir very nature forces these problems

to be of a very large scale. -hey are often difficult to solve to optimality.

>urthermore, most of the models in this category are largely deterministic and

static in nature. 0dditionally, those that consider stochastic elements are very

restrictive in nature. In sum, there does not seem to yet be a comprehensive model

that is representative of the true nature of material flows in the supply chain.

Ro& Ct M#t&od$:

-hese models form the bulk of the supply chain literature, and typically deal with

the more operational or tactical decisions. Most of the integrative research 'from a

supply chain conte5t( in the literature seems to take on an inventory management

perspective. In fact, the term A4upply !hainA first appears in the literature as an



inventory management approach. -he thrust of the rough cut models is the

development of inventory control policies, considering several levels or echelons

together. -hese models have come to be known as Amulti#levelA or Amulti#

echelonA inventory control models.

Multi#echelon inventory theory has been very successfully used in industry.

!ohen et al. F"GGH describe A7-IMIQ6&A, one of the most comple5 models to

date ### to manage IBMJs spare parts inventory. -hey develop efficient algorithms

and sophisticated data structures to achieve large scale systems integration.

0lthough current research in multi#echelon based supply chain inventory

problems shows considerable promise in reducing inventories with increased

customer service, the studies have several notable limitations. >irst, these studies

largely ignore the production side of the supply chain. -heir starting point in most

cases is a finished goods stockpile, and policies are given to manage these

effectively. 4ince production is a natural part of the supply chain, there seems to

be a need with models that include the production component in them. 4econd,

even on the distribution side, almost all published research assumes an

arborescence structure. 6ach site receives re#supply from only one higher level

site but can distribute to several lower levels. -hird, researchers have largely

focused on the inventory system only. In logistics#system theory, transportation

and inventory are primary components of the order fulfillment process in terms ofcost and service levels. -herefore, companies must consider important

interrelationships among transportation, inventory and customer service in

determining their policies. >ourth, most of the models under the Ainventory

theoreticA paradigm are very restrictive in nature. Mostly they restrict themselves

to certain well known forms of demand or lead time or both, often @uite contrary

to what is observed.



NEED OF THE STUDY:

-hough bakery business has started developing in India, it still remains

largely unorganized and dominated by the small bakers. In fact in "GNN#"GNO, the

government reserved bread and biscuit manufacturing for small scale sectors and

restricted entry of large producers. uring the last two decades, small and

unorganized players have shared the growth in the industry. !urrently there are an

estimated % million bakeries across the country engaged in the production of

bread, biscuits and other products. -he 0bid 8ussain !ommittee recommended

de#reservation of the sector. -he government in the "GG#GN budgets implemented

the recommendation and the sector was de#reserved. 0fter that there has been a

steady inflow of M$!’s and other organized players into this sector, Britannia

Industries 9imited 'BI9(, 899 and I-!. >or the e5isting players, appropriatemarketing and branding strategy will be the keys for growth and customer

retention, for which understanding of consumer behavior.

4ome organized sectors apply the proper supply chain to retention of the

customer. 4o, first know the process of food sectors.

Ind"% Food Pro!#$$"n Inr#d"#nt$ S#!tor:

India’s food#processing sector, although still in a nascent stage, has undergoneimportant changes over the last si5 to seven years. -he types, variety, @uality,

and presentation of products have all improved, mainly as a result of

economic liberalization, which led to foreign direct investment '>I( in this

sector. 4everal multinational companies, including /4 companies like 7epsi,

!oca !ola, !on0gra, !argill, 8einz, and Rellogg’s have invested in the

Indian food#processing industry. -he growth in the food#processing sector

has generated increased interest in @uality food ingredients in order to produce

higher @uality foods.



M%r#t $''%r*:

India’s food#processing sector, though still developing, !ontr"0t#$ 7

+#r!#nt to t&# '%n/%!tr"n GDP (;.; +#r!#nt o/ %r#%t# GDP)> +rod!#$ood$ -ort& R$. 8.? tr""on (@ 0""on)> %nd #'+o*$ 79 '""on +#o+#.

Much of India’s food#processing industry is small#scale and involves very little

value addition, although in recent years several multinational food#processing

companies have started operations in India. 0 plethora of internal restrictions,

including 'a( prohibition on foreign direct investment in retail, 'b( prohibitions on

contract farming, 'c( barriers to interstate commerce based on revenue and food

security concerns, 'd( some of the highest ta5es on processed foods in the world,

and 'e( inefficient in infrastructure and marketing networks seriously constraingrowth of the sector.

-he almost year#round availability of fresh products across the country,

combined with the consumers’ preference for fresh products and freshly cooked

foods has dampened demand for processed food products. -he level of

processing varies across segments E ranging from less than % percent of the

production in the case of fruits and vegetables to over G percent in non#

perishable products such as cereals and pulses. In the latter, however, processing

involves very little value addition, and is mostly confined to grading, cleaning,

milling, and packing with negligible use of additives, preservatives, and flavors.

L#,# o/ +ro!#$$"n "n +#r"$&%0# +rod!t$:

Prod!t L#,# o/ Pro!#$$"n ( o/ tot% +rod!t"on)

Or%n"4#d

S#!tor

Unor%n"4#d

S#!tor 7=

Tot%

>ruits ?vegetables ".% .+ ".N

Milk "+. %%. )N.

Meat %". %".

7oultry . .

Marine fisheries ".N G. ".N

4hrimp .* ". ".*



S/norganizedD in fruits and vegetables includes unbranded pickles, sauces.

0nd potato chips, but e5cludes processing by street vendors SunorganizedD in

dairy includes processing by sweet food makers SunorganizedD in marine

products includes processing by small fishermen.0ccording to the Ministry of >ood#processing Industries 'M>7I(, the food#

processing industry over the last decade has grown at an average annual rate of

N." percent. -his higher rate is indicative of the relatively low base, the

increasing marketable surpluses of agricultural products, changing consumer life

styles and tastes, and the country’s higher disposable income. -he growth is

projected at around N.) percent per annum over the ne5t five years. f the

estimated total food sales of rupees O. trillion 'P"GO billion( in %)K*,

processed food consumption was valued at &s. +.) trillion 'P"%% billion(, with theshare of value#added foods 'juice, jams, pickles, cheese, butter, ghee, processed

meat, confectionary and chocolate, alcoholic beverages, aerated beverages, malted

beverages, food services, etc.( estimated at )N percent.

Entr* $tr%t#*

It is essential to survey e5isting and potential markets in India for products

before initiating e5port sales. -he ffice of 0gricultural 0ffairs in the 0merican

6mbassy $ew elhi 'see 4ection =( and market research firms in India can assistnew e5porters. If the /4 companies do have products of promising sales potential

in India, they can either set up a base in India or appoint distributors or agents.

-he Indian government encourages foreign investment in the food#processing

sector. 8undred percent e@uity participation or joint ventures with Indian

companies are possible. -a5 benefits and incentives are available to companies

setting up operations in 4pecial 6conomic Qones '46Q(.

o etermine through surveys that their potential customers are, and

where in India these customers are locatedo &ecognize that agents with fewer principals and smaller set#ups often

are more adaptable and committed than those with largeinfrastructure and big reputations.

o -here may be a conflict of interest where the potential agent handles

similar product lines, as many agents do.



Ind"%$ /ood3+ro!#$$"n "nd$tr* !%n 0# 0ro%d* !%$$"/"#d

"nto t&# /oo-"n !%t#or"#$:

•

>ruits and vegetable based products• airy products

• !ooking oils

• Meat and poultry

• >isheries

• $on#alcoholic beverages

• 0lcoholic beverages

• !onfectionary

• :rain and grain#based products 'milling ? baking(

M""n %nd 0%"n: N+ percent of India’s wheat production is milled into wheat

flour 'atta( to make rotis or chapattis 'unleavened flat bread(, mostly in small

chakkis 'small wheat grinding mills( in the unorganized sector. Branded atta is a

relatively new segment, developed to provide consumers a more hygienic @uality,

as compared to chakki atta. 0nnual production of branded atta is about " million

tons, and is growing at N to G percent annually. Major players are I-!, 7illsbury,

899, 0gro -ech >oods, and 4hakti Bhog >oods.

Bakery products constitute the largest segment of grain#based processed

foods. 4mall and medium unorganized local players and a limited number of

organized units dominate the industry. Major players are Br"t%nn"%, 899, I-!,

7arle, Pr"*% God> and !remica.

-he grain#based snack market, comprising e5truded snacks and savories, is

estimated at around 'PN million(. f this, the organized segment contributes

only "+ percent of sales. Major players are 7epsi, 8aldiram, 4M yechem,

Bikanerwala, etc. Breakfast cereal production in the organized sector is very

small, and is mainly confined to corn flakes. Major producers are Rellogg’s and

Mohan Meakins. 7epsi is reportedly interested in investing in the breakfast

segment over the ne5t five years.



Co'+%n* +ro/"#$

Indian food processors may be divided into the following main categories1

• 9arge Indian companies that have their production base in India or

neighboring countries 'for ta5#saving purposes(

• Multinational and joint#venture companies that have their production base

in India

• MediumKsmall domestic food#processing companies with a local presence

• 4mall local players in the unorganized sector

INDIAN COMPANIES

Co'+%n* N%'# Prod!t$

:odrej >oods

9td.

=egetable oils, fruit juices, tomato

paste, soy beverages

abur India9td.

>ruit juices, cooking paste, honey

Mother airy

hara

airy products, ice cream, canned

vegetables, fruit juices, cooking oils

0mul airy products, ice cream, chocolate

I-! Branded wheat flour, biscuits, ready#

to#eat food, confectionary

8industan

9ever '899(

Ice cream, branded wheat flour, bread,

sauces, jams, jellies=8 :roup 7oultry products

Britannia

Industries

Biscuits, bread, packaged food

7arle 7roducts Biscuits, candies, toffees



$utrine

!onfectionary

!ompany

!onfectionary, chewing gum

2eikfield

7roducts!ompany

!ustard powder, baking powder, jelly

crystals, drinking chocolate, sauces,soups

&asna '7ioma

Industries(

Instant drink, health drink, soft drink

concentrates, flavors

8aldiram’s 4nack foods

/B :roup Beer, alcoholic beverages

Marico

Industries

=egetable oils, jams

M-& >oods &eady#to#eat foods, soups, spices, ice

cream mi5es, pickles

7unjab

Markfed

!anned food, rice, vegetable oils

=ista

7rocessed

>oods

>rozen chicken and vegetables

ynami5

airyIndustries

!heese, whey, other dairy products

MULTINATIONAL=JOINT ENTURE

COMPANIES

http://images.google.co.in/imgres?imgurl=http://www.prdomain.com/companies/r/rasna/images/rasna_logo.gif&imgrefurl=http://www.prdomain.com/companies/r/rasna/news_releases/pr_rasna_index.htm&h=57&w=158&sz=3&tbnid=lGHfFIC58SEJ:&tbnh=33&tbnw=91&st%20



Co'+%n* N%'# Prod!t$

7epsi 4oft drinks, potato chips, snack

food, fruit juices

!argill =egetable oils

8einz Retchup, health drinks

Rellogg’s Breakfast cereals, biscuits

Bunge =egetable oil, margarine

$estle !offee, chocolates, confectionary,

instant noodles, milk products,

beverages, health drinks

!adbury !hocolates, health drinks

!oca !ola 4oft rinks, beverages

0gro -ech

>oods

'!on0gra’s(

Branded vegetable oils, branded

wheat flour, snack food, popcorn

7illsbury 2heat flour, cake mi5es

:la5o4mith

Rline

8ealth drinks

7erfetti !hewing gum, candy

2rigley !hewing gum

9otte India

!orporation

9td. '7arry’s(

!onfectionary

Mc!ain >oods >rench fries

0dani 2ilmar

9td.

!ooking oils, bakery shortenings

-he 4olace

!ompany

4oy nuggets

http://images.google.co.in/imgres?imgurl=http://www.westonspirit.org.uk/charity_supporters/images/kelloggs_logo.jpg&imgrefurl=http://www.westonspirit.org.uk/charity_supporters/companies.html&h=36&w=94&sz=3&tbnid=_QGSMYPJPCcJ:&tbnh=28&tbnw=73&st%20



S#!tor tr#nd$

Prod!t"on:

• -he food#processing industry in India has undergone big changes over the

last si5 to seven years, in terms of types, variety, @uality, and presentation

of products, which is mainly a result of the liberalization that led to foreign

direct investment '>I( in the processed food sectors.

• Most food#processing sectors have been brought under the liberal,

transparent, and investor#friendly >I policy, which allows " percent

>I.

• 8owever, the small#scale farming system in India, marketing problems,

lack of grading and standards, poor distribution channels, and onerous

government policies continue to pose problems for the processing industry

to source the right type of raw materials and to discourage more investment

in the sector.

• $evertheless, the proportion of >I in the food#processing sector to total

>I into India is low, constituting about * percent of total >I inflow from"GG" to %*.

• 4everal multinational companies, including /4#based companies like

7epsi, !oca !ola, !on0gra, !argill, 8einz, Rellogg’s, I>>, and Mars 'pet

food only( have entered the Indian food#processing industry with

significant investments.

• Indian food and beverage companies are e5panding their operations toneighboring countries like Bangladesh, $epal, 4ri 9anka, !ommonwealth

of Independent 4tates countries, and the Middle 6ast.

• -akeovers and mergers are beginning to occur in the Indian food#

processing sector, leading to consolidation.



• -he food#processing industry is beginning to focus on, and invest in,

advertising and awareness campaigns about products and brands.

• !ompanies have added e5tras to their e5isting brands, including stylish

packaging.

• -he growth in the food#processing sector has generated increased interest

in high @uality food ingredients in order to produce high @uality foods.

• -he ready#to#eat food sector is growing at a high rate due to the changing

lifestyles of the middle#class consumers 'both partners working, etc.(.

• 4ome previously unknown regional brands are gaining national acceptance

because of consistent @uality and product safety, thereby providing some

competition to established companies.

• -he :I is in the process of enacting a >ood 4afety and 4tandards Bill,

which if properly done and implemented, would provide increased

transparency, better food safety management systems, and science#based

standards.



Con$'+t"on:

-he following factors influence the type and @uality of inputs in processed foods1

• 0 large and an e5ceedingly wealthier middle class are creating growing

demand for a wider variety of high @uality processed foods.

• -he changing age profile 'si5ty#five million people e5pected to enter %#)*

year age group by %"( and increasing e5posure to western#type products

and lifestyles.

• -he market entry of several multinational food#processing companies and

ingredient suppliers.

• -he increasing number of fast food chains.

• -he recent trend toward a healthier lifestyle has generated a niche market

for diet, healthy, low#calorie, and non#fat food products.

• -he increasing urbanization and growing number of working women.

• 0 slow but steady transformation of the retail food sector in cities.

Co'+#t"t"on

India’s domestic industry is the primary competitor for /4 food#processing

and ingredients suppliers in India. India, with diverse agro#climatic conditions,

has a production advantage in many agricultural goods, with the potential to

cultivate a large range of agricultural raw materials re@uired by the food#

processing industry. India is a major producer of spices, spice oils, essential oils,condiments, and fruit pulps. 4ignificant variations in food habits and culinary

traditions across the country translate into a competitive advantage for small and

medium local players, who are familiar with local food habits and markets. 4ome

Indian food#processing companies have increased market share by decreasing

product prices. 8igh import duties on processed food and food ingredients make



imports relatively costly. 65isting domestic food laws restrict the use of several

ingredients, flavors, colors, and additives, thus posing an additional challenge to

/4 e5porters interested in the Indian market.

>oreign competition to the /nited 4tates is mostly from countries in closergeographic pro5imity to India, such as 0ustralia and $ew Qealand. 4uppliersfrom other countries often supply inferior goods at cheaper prices in comparisonto those available from the /nited 4tates. 6uropean suppliers are majorcompetitors in the food ingredient sector. 4everal foreign firms, including somefrom the /nited 4tates, have started operations in India.

0fter all these, find out that in India there are lots of scope for organizedsectors like I-!, B&I--0$$I0 and 7&I;0:9 to increase the business byapplying supply chain management process for right @uantity on right time to

right customer.

BACKGROUND:

HISTORY OF BISCUITS:

4weet or salty. 4oft or crunchy. 4imple or e5otic. 6verybody loves munchingon biscuits, but do they know how biscuits began3 -he history of biscuits can betraced back to a recipe created by the &oman chef 0picius, in which Aa thick paste

of fine wheat flour was boiled and spread out on a plate. 2hen it had dried andhardened it was cut up and then fried until crisp, then served with honey and pepper.A

-he word JBiscuitJ is derived from the 9atin words JBisJ 'meaning JtwiceJ( andJ!octusJ 'meaning cooked or baked(. -he word JBiscottiJ is also the generic termfor cookies in Italian. Back then, biscuits were unleavened, hard and thin waferswhich, because of their low water content, were ideal food to store.

0s people started to e5plore the globe, biscuits became the ideal travelling food

since they stayed fresh for long periods. -he seafaring age, thus, witnessed the boom of biscuits when these were sealed in airtight containers to last for monthsat a time. 8ard track biscuits 'earliest version of the biscotti and present#daycrackers( were part of the staple diet of 6nglish and 0merican sailors for manycenturies. In fact, the countries which led this seafaring charge, such as those in2estern 6urope, are the ones where biscuits are most popular even today. Biscottiis said to have been a favorites of !hristopher !olumbus who discovered 0merica



Making good biscuits is @uite an art, and history bears testimony to that. uringthe "Nth and "Oth !enturies in 6urope, baking was a carefully controlled

profession, managed through a series of JguildsJ or professional associations. -o become a baker, one had to complete years of apprenticeship # working throughthe ranks of apprentice, journeyman, and finally master baker. $ot only this, theamount and @uality of biscuits baked were also carefully monitored.

-he 6nglish, 4cotch and utch immigrants originally brought the first cookiesto the /nited 4tates and they were called teacakes. -hey were often flavored withnothing more than the finest butter, sometimes with the addition of a few drops ofrose water. !ookies in 0merica were also called by such names as AjumblesA,AplunketsA and Acry babiesA.

0s technology improved during the Industrial &evolution in the "Gth century,the price of sugar and flour dropped. !hemical leavening agents, such as bakingsoda, became available and a profusion of cookie recipes occurred. -his led to thedevelopment of manufactured cookies.

Interestingly, as time has passed and despite more varieties becoming available,the essential ingredients of biscuits havenJt changed # like JsoftJ wheat flour 'whichcontains less protein than the flour used to bake bread( sugar, and fats, such as

butter and oil. -oday, though they are known by different names the world over, people agree on one thing # nothing beats the biscuitT

So'# "nt#r#$t"n /%!t$ on t&# or""n o/ ot&#r /or'$ o/ 0"$!"t$:

-he recipe for oval shaped cookies 'that are also known as boudoir biscuits,sponge biscuits, sponge fingers, $aples biscuits and 4avoy biscuits( has changedlittle in G years and dates back to the house of 4avoy in the ""th century>rance. 7eter the :reat of &ussia seems to have enjoyed an oval#shaped cookiecalled Alady fingersA when visiting 9ouis U= of >rance.

-he macaroon # a small round cookie with crisp crust and a soft interior # seemsto have originated in an Italian monastery in "NG% during the >rench &evolution.47&I$:#uhr#lee, have been traditional !hristmas cookies in 0ustria and Bavariafor centuries. -hey are made from a simple egg, flour and sugar dough and areusually rectangular in shape. -hese cookies are made with a leavening agentcalled ammonium carbonate and baking ammonia.



-he inspiration for fortune cookies dates back to the "%th and ")th !enturies,when !hinese soldiers slipped rice paper messages into moon cakes to help co#ordinate their defense againstMongolian invaders

M%n/%!tr"n Pro!#$$ o/ B"$!"t$

". >lour and sugar is dispensed into large mi5ers. -he ingredients that are used insmaller @uantities are hand weighed and added into the mi5ing bowl for each

batch of dough to be mi5ed.

%. -he ingredients are then mi5ed to form dough in the mi5ing bowl according toa specific mi5ing procedure.

). -he dough is then tipped into a hopper and gravity#fed into the dough sheetingsection of the machine. In this process the dough is fed through various rollers toform a sheet of dough. epending on what type of biscuit is being produced, this

process varies.

*. ifferent forming techni@ues are used to get the re@uired shape and size of the piece of dough which will form the biscuit.

+. -he raw biscuits are transported through a gas#fired oven on a metal conveyor band where they are baked to form fresh, warm and deliciously smelling biscuits.2hile still hot, the savory biscuits are sprayed with oil and one of a number oftypes of flavoring is added to produce what is re@uired for that particular biscuit.



.Biscuits are baked rather than fried, so the oil merely assists the flavour particles to cling to the biscuit surface. -he flavored biscuits then travel along acooling conveyor in order to cool off.

N. nce the biscuits have been cooled, they are packed into wrappers, cartons andcases, ready for distribution to one of the warehouses

O. Luality checks are conducted at key points in the process to ensure processcontrol and product @uality is constantly maintained at a high standard.

G. -he finished product is then transported in cases to state#of#the#art distributionwarehouses. 4tock is loaded as per delivery orders and sent to the various

customers



Br"t%nn"% Ind$tr"#$:

Britannia Industries 9imited is an Indian company based in Rolkata that is

famous for its Britannia brand of biscuit, which is highly recognized throughout

the country. -he !ompanyJs principal activity is the manufacture and sale of biscuits, bread, &usk, cakes and dairy products like cheese, butter and milk. -he

brand names of biscuits include =ita Marie :old, -iger =ariants, $utri choice

<unior, :ood ay, + + variants and :ood Morning. Its $on#65ecutive

!hairman is Mr. $usli 2adia, and !hief 65ecutive is Ms. =inita Bali. -he

BritanniaJs fame is largely acknowledged through the colorful Britannia logos,

Indian cricketers such as =irender 4ehwag, and &ahul ravid wear on their bats.

BritanniaJs controlling stake is jointly with :roupe anone and $usli 2adia.

:roupe anone is one of the leading players in the world in bakery products

business. -he !ompany is based in the Indian city of Rolkata.

Britannia Industries 9td 'BI9( ## one of IndiaJs leading food companies ? a

leading manufacturer of biscuits in the country has always been the pioneer in

product innovation. Biscuits contribute to nearly G V of BritanniaJs total

turnover, the rest coming from a rapidly growing portfolio that includes !akes,

Bread and &usks. Britannia is synonymous with JbiscuitsJ and its brands like

Marie:old, :ood ay, +#+, -reat and -iger have become household names in

the country.

http://en.wikipedia.org/wiki/India

http://en.wikipedia.org/wiki/Kolkata

http://en.wikipedia.org/wiki/Nusli_Wadia

http://en.wikipedia.org/wiki/Sehwag

http://en.wikipedia.org/wiki/Rahul_Dravid

http://en.wikipedia.org/wiki/Cricket_bat

http://en.wikipedia.org/wiki/Groupe_Danone


http://en.wikipedia.org/wiki/India


http://en.wikipedia.org/wiki/Nusli_Wadia

http://en.wikipedia.org/wiki/Sehwag

http://en.wikipedia.org/wiki/Rahul_Dravid

http://en.wikipedia.org/wiki/Cricket_bat





Co'+%n* o,#r,"#-:

-he story of one of IndiaJs favorite brands reads almost like a fairy tale. nce

upon a time, in "OG% to be precise, a biscuit company was started in a nondescripthouse in !alcutta 'now Rolkata( with an initial investment of &s. %G+. -he

company we all know as Britannia today.

-he beginnings might have been humble#the dreams were anything but. By

"G", with the advent of electricity, Britannia mechanized its operations, and in

"G%", it became the first company east of the 4uez !anal to use imported gas

ovens. BritanniaJs business was flourishing. But, more importantly, Britannia was

ac@uiring a reputation for @uality and value. 0s a result, during the tragic 2orld

2ar II, the :overnment reposed its trust in Britannia by contracting it to supply

large @uantities of Aservice biscuitsA to the armed forces.

0s time moved on, the biscuit market continued to growW and Britannia

grew along with it. In "GN+, the Britannia Biscuit !ompany took over the

distribution of biscuits from 7arryJs who till now distributed Britannia biscuits in

India. In the subse@uent public issue of "GNO, Indian shareholding crossed V,

firmly establishing the Indianness of the firm. -he following year, Britannia

Biscuit !ompany was re#christened Britannia Industries 9imited 'BI9(. >our

years later in "GO), it crossed the &s. " crores revenue mark.

n the operations front, the company was making e@ually dynamic strides. In

"GG%, it celebrated its 7latinum <ubilee. In "GGN, the company unveiled its new

corporate identity # A6at 8ealthy, -hink BetterA # and made its first foray into the

dairy products market. In "GGG, the ABritannia Rhao, 2orld !up <aoA promotion

further fortified the affinity consumers had with JBrand BritanniaJ.



Britannia strode into the %"st !entury as one of IndiaJs biggest brands and

the pre#eminent food brand of the country. It was e@ually recognized for its

innovative approach to products and marketing1 the 9agaan Match was voted

IndiaJs most successful promotional activity of the year %" while the delicious

Britannia +#+ Maska#!haska became IndiaJs most successful product launch. In%%, BritanniaJs $ew Business ivision formed a joint venture with >onterra, the

worldJs second largest airy !ompany, and Britannia $ew Qealand >oods 7vt.

9td. was born. In recognition of its vision and accelerating graph, >orbes :lobal

rated Britannia Jne amongst the -op % 4mall !ompanies of the 2orldJ, and

-he 6conomic -imes pegged Britannia IndiaJs %nd Most -rusted Brand.

-oday, more than a century after those tentative first steps, BritanniaJs fairy

tale is not only going strong but blazing new standards, and that miniscule initial

investment has grown by leaps and bounds to crores of rupees in wealth forBritanniaJs shareholders. -he companyJs offerings are spread across the spectrum

with products ranging from the healthy and economical -iger biscuits to the more

lifestyle#oriented Milkman !heese. 8aving succeeded in garnering the trust of

almost one#third of IndiaJs one billion populations and a strong management at the

helm means Britannia will continue to dream big on its path of innovation and

@uality. 0nd millions of consumers will savoir the results, happily ever after.

Co'+%n"#$ ,%#$:



-he Britannia values are those guidelines that help us add value to the life of the

consumer.

En#r"4# *or Bod* %nd M"nd # -his is BritanniaJs 7romise to the !onsumer #

0ll our actions should ensure that this promise is delivered to the consumer.ptimized delivery to the 02, the retailer and the end consumer is how we can

deliver this value to the consumer.

Or%n"4%t"on% #//"!"#n!* /or &#%t&* #%t"n # -his means that the retail

relationship management has to be e5tremely effective so as to minimize costs

and ma5imize coverage and range in each store.

L%dd#r"n Inno,%t"on # -here has to be a stretch in the implementation of newerapproaches to access the e5isting and new consumers.

Hor"4ont% E'+o-#r'#nt3 which in case of the sales function, translates to

confident interaction with all customers and consumers such that the company is

represented in the best possible manner.

Br"t%nn"% to d",#r$"/* +rod!t r%n#:

%"st <uly %+ Rolkata1 !onfectionery major Britannia Industries 9td, a joint

venture between the $usli 2adia group and :roupe anone of >rance, is

planning to diversify into other areas of foods from current product range of

biscuit and cakes in order to become a complete food company, Britannia

chairman $usli 2adia told reporters after the Oth annual general meeting here

today. Britannia earlier had a milk business, which was sold to Britannia $ew

Qealand >oods two years back.

2adia said the company was now looking into various new areas of foods like

snacks and health drinks but had not yet finalized anything. A-he board will take a

decision in this regard soon,A he said. 0ccording to 2adia, BI9 will look for both

organic and inorganic growth opportunities for venturing into new areas of foods.

!ommenting on the commodity buying strategy, 2adia said the company

would use the commodity e5changes as a mechanism for hedging. A-he company

http://www.domain-b.com/companies/companies_b/britannia/index.html

http://www.domain-b.com/companies/companies_b/britannia/index.html



is heavily dependent on commodities like wheat and sugar. -he hedging activity

will help control costs. It is now implementing a commodity buying strategy for

managing input cost,A added 2adia.

0ccording to him, the focus on cost control and supply chain management

yielded savings of &s%.% crores in %*#+. BI9 has already appointed R7M:for supply chain management. AR7M: is looking into *O projects like efficient

procurement of raw materials, manufacturing and distribution logistics etc,A said

2adia.

-he chief e5ecutive officer of Britannia, =inita Bali, said the company was

looking at new distribution channels like malls. A-he company is investing around

"+#% per cent of revenue from a brand into brand promotion,A she said. Aur

company has si5 power brands in the portfolio each e5ceeding &s " crore in

annual sales,A she added.Meanwhile >ield Marshal 4am Manekshaw, one of the heroJs of "GN" Indo#

7ak war, is stepping down from the board of Britannia Industries. -he eminent

soldier served in the board of BI9 for more than a decade. A8e intimated to the

company that he does not seek reappointment. -he company will not propose to

fill up the vacancy in the forthcoming annual general meeting,A an official said.



Br"t%nn"% Ind$tr"#$: B*

B&I-0$$I0 Industries has sure come a long way from being a company with

a stodgy but well#recognized brand name and an inconsistent financial

performance in the mid#"GGs.

0fter a thorough overhaul of the operational structure, a revamp of its product

portfolio and an ambitious foray into new areas, such as dairy products and snack

foods, the company has managed to turn in robust financial performance over the

past four years.

-he stock market has also taken notice re#rating the stock, pushing up its price

earnings multiple from "*#"+ times in "GGN to around ) times now. -he stock

now ranks among the preferred investment options within the universe of >M!:

companies. 4o, what has driven BritanniaJs valuations and what are its prospects3



Ro0$t $%#$ ro-t&

0t a time when growth rates for most >M!: products have wound down to

single digit, Britannia has managed to sustain a fairly healthy growth in its sales

revenues. -his is on account of several factors. ne, the company has rationalizedits product portfolio, pruning the number of brands from )+ to %+, so that it can

devote greater attention to key businesses.

It also reduced contribution from the low#margin breads business to focus on

faster#growing segments such as biscuits and cakes. -his appears to have resulted

in better utilization of the ad spend. espite sustaining a high#decibel promotional

campaign over the past two years, BritanniaJs ad spend#to#sales ratio hovers at

around N per cent, lowest in the >M!: universe.

-wo, in "GGO, the company moved into the mass market for biscuits introducing

low#priced varieties under the umbrella brand, -iger. -he success of this brand

has enabled Britannia e5pand its market share in the :lucoseJ biscuit market

from " per cent to over % per cent.

2hile growth rates in the mid#priced and premium biscuits have flagged, it is

-iger which has kept BritanniaJs biscuit business roaring. Meanwhile, the

company kept up the high#decibel promotional campaign to make known its othermajor brands ## +1+, Mariegold, Bourbon, 7ure Magic, $ice, 4na5 and Milk

Bikis. Britannia Rhao 2orld !up <ao and Britannia Rhao !rorepati Ban <ao have

been among the more successful of these campaigns.

-hree, to pep up overall growth rates, the company has also been leveraging its

brand image to establish a foothold outside of the highly competitive biscuit

market. ver the past couple of years, it has launched a slew of dairy products

'processed cheese, flavored milk, butter, ghee and dairy whitener( and ethnic

snack foods such as 0loo Bhujiya and !hana !hoor.

-he foray into dairy products appears to be a success, with revenues improving

more than two#fold from &s )O crores in "GGN#GO to &s OG crores in %#". It is

more difficult to find evidence of the success of BritanniaJs snack food business



which faces competition from a host of local brands, apart from national players

such as 7epsi >oods and 8aldirams.

8owever, in both dairy and snack foods, Britannia outsources manufacturing.

-herefore, should these forays fail to contribute on the e5pected lines BritanniaJslosses would be restricted to its investments in product promotion. 0 proposed

foray into bottled water, which was on the cards earlier, appears to have been put

on the hold.

T&# tro0# $+ot$

2ill the -iger cease to roar3 But if robust sales performance is indeed the key

behind the re#rating of the Britannia stock, is the performance likely to be

sustained3 In this respect, there have been a couple of negative developments for

Britannia.

ne, the removal of the e5cise e5emption on low#priced biscuits 'costing less

than &s + per pack( in the %" Budget is bound to push up costs for the -iger

range of biscuits. 0ny attempt to pass on higher costs through a hike in selling

prices could well trim the high growth rates hitherto enjoyed by this mass market

brand. -his could well mean that for the time being, Britannia will have to absorb

the additional costs arising from the enhanced e5cise duty.

-wo, with the removal of @uantitative restrictions on dairy products in the latest

65im 7olicy, Britannia could well feel the sting of competition in its emerging

dairy business as well. 0part from e5panding the number of brands competing at

the premium end, the removal of L&s could also make it easier for M$!s such as

$estle, which already have a presence in the domestic market, to import and sell

some of their global offerings in India.

-he removal of L&s on biscuits has already brought a flood of foreign brandson to Indian shelves. -hough these products compete mainly at the premium end,

they could pose a threat to Britannia by intensifying competition in a segment

which is already sluggish.



2ith 8industan 9ever and $estle India also planning to e5pand their presence

in the confectionery segment, the threat to Britannia in this segment could be

potent. f course, Britannia also does have the option to draw from the product

portfolio of one of its parents, :roupe 0$$6, one of the largest food

companies in the world.

8owever, unlike $estle or 8industan 9ever, Britannia has seldom drawn from

the parentJs product portfolio for its domestic product launches. 0nd :roupe

anone, which controls ) per cent of BritanniaJs e@uity, does not hold a majority

stake in Britannia.

T&# 0r"&t $+ot$

Benign input prices are the foremost. 0fter record wheat output over the past

two years, prices of this key input have been soft over the past year, allowing

Britannia to earn higher operating profit margins. -he carry#in stocks from the

previous year and the fairly healthy output forecast for the %#" seasons could

hold down wheat prices for the time being, allowing Britannia greater leeway in

managing its e5penses and absorbing additional costs from the e5cise duty hike.

Co'+#t"tor$ $t%rt /ro' $!r%t!&

0s for the threat from the phase#out of the L&s, in respect of biscuits, Britannia

has faced this threat reasonably well over the past one year, without a visible

impact on its financial performance. -he proposed foray by $estle India and

8industan 9ever into confectionery and dairy products, could pose the only

remaining threat to Britannia. n this, BritanniaJs already established brand name

in the foods business could erect an entry barrier, however temporary, when it

comes to mass market products. -hough both 899 and $estle have the option of

drawing products from their parentsJ portfolio, these brands would scarcely be

familiar names in India therefore, investments in brand#building would be

necessarily high, at least in the initial stages. In the bakery business, 899Js

ac@uisition of Modern >oods, the largest bread manufacturer in India, could pose

a threat. 8owever, BritanniaJs dependence on the bread segment is now

negligible, and any e5tension of the Modern brand to biscuits and cakes could

take some time, affording some breathing space to Britannia.



A K-%"t* %!"$"t"on

0s to the threat from the slowing sales growth in biscuits, BritanniaJs recent

ac@uisition of an e@uity stake in Rwality Biscuits should provide some spark to

the performance over the ne5t one year. -he purchase, which cost &s ) crores,would have made but a small dent in BritanniaJs overall cash flows. 'Britannia

generated operating cash flows of &s GN crores in "GGG#%(

the Britannia Industries stock, which now trades at a price#earnings multiple of

around ) times its earnings for %#" 'based on nine#month per share earnings

of &s "N(, should offer scope for reasonable capital appreciation over a three#year

period. Investors can use any decline in stock price in keeping with market trends

to build e5posures to this stock.

Br"t%nn"% Ind$tr"#$: Hod



480&6896&4 can hold the Britannia Industries stock given its relative low

valuation visa other >M!: players. 0t its current price#earnings multiple of about

"+ times its trailing "%#month earnings, the stock valuation is at a discount to

other >M!: peers, which are hovering at %#%% times. 8owever, significant price

appreciation on the stock is unlikely in the near term. -he companyJs numbers forthe <une @uarter display a continuing trend of decelerating sales growth,

suggesting loss of market share to rivals in the biscuit business.

7rofit growth has been outpacing sales growth due to cost savings. -his is

likely to continue as the company ramps up production in the newly#

commissioned manufacturing facility in /ttaranchal and reaps ta5 savings. -he

companyJs ongoing buyback programmed may also provide a stable underpinning

to the stock price.

S%#$ ro-t& o$"n $t#%':

Britannia IndustriesJ sales growth for the just ended <une @uarter was at %.N per

cent, indicating that the company grew at a much slower rate than the sector,

which posted double#digit growth. 4ales growth has also been on a steady

downward spiral since the ecember @uarter of %*, decelerating from "% per

cent in 4eptember %* to the present ) per cent. -he skidding sales growth could

be a sign that competitors such as I-!Js 4un feast are eroding BritanniaJsdominance in the biscuit market.

I-! has been steadily adding to its biscuit portfolio, with products such as

Marie 9ight, 4un feast Milky Magic, and rolling out a wide range of cream

biscuits under the 4un feast banner. -his enhances competition for Britannia at

the premium end of the market, which it has so far dominated with its -reatJ

range of cream biscuits. In the mid#priced segment, with regional competitors

such as 4urya >oods '7riyagold( e5panding distribution reach, there has been a

significant erosion of pricing power, with product prices remaining unchanged for

over two to three years now. -hese appear to have taken a toll on BritanniaJs

market share and, thus, sales growth numbers.

-he long#term outlook for BritanniaJs business will hinge on a revival in sales

growth. -his will depend, for now, on the success of product launches such as



uet -reat, and buoyancy in rural market growth X a key market for the -iger

brand.

Pro/"t ro-t& ro0$t:

2hile sales growth is winding down, profit growth at Britannia continues to be

robust. $et profits for the <une @uarter rose a healthy %% per cent, after adjusting

for e5ceptional items that magnified the previous yearJs numbers and suppressed

this yearsJ. -his is notable given the inflationary trend in prices of inputs such as

sugar and wheat in this particular @uarter.

-he significant e5pansion in the companyJs profit margin suggests that the

restructuring measures put in place over the past year are paying off. ver the

past year, Britannia has closed its manufacturing facilities at Mumbai, reduced its

workforce through a =&4 and streamlined its procurement and supply chain. 0s a

result of such measures, cash flows from operations have risen about O per cent

in %*#+ and debt has been trimmed to negligible levels.

L"#* to ot+%!# $%#$ ro-t&1

7rofit growth could continue to be robust in the coming @uarters, as the

company shifts a substantial portion of its biscuit manufacture to its new facilityat /ttaranchal, a ta5#free zone. -hough this unit was commissioned in 0pril, the

company e5pects the facility to ramp up to full capacity by the third 'ecember(

@uarter of this year. :iven that BritanniaJs e5cise and ta5 outgo has been almost

flat in the <une @uarter one can assume that the benefits from the e5cise and ta5

savings at the new unit are yet to reflect in a big way on the companyJs numbers.

-his offers promise for a further e5pansion in profitability over the ne5t couple of

@uarters, if the company manages to keep a tight rein on input costs.

-he superior cost#efficiencies in the new unit could also help relieve some of the pricing pressures on Britannia and help it offer better value on its brands.



Tr"#r$1

Investors should also watch for a couple of additional triggers to the Britannia

stock price. -he company has been steadily shrinking its e@uity base through buyback of its shares from the open market. -he fourth tranche of the latest

buyback program was concluded in %*#+, at a ma5imum price of &s + per

share. 0nnouncements on the ne5t tranche of buyback, if any, are awaited.

If Britannia decides to continue with its open market buyback program, it

would be a positive for the stock, as buybacks have proved to be good tools to

protect against downside in stock prices for other >M!: stocks.

4econd, :roupe 0$$6, one of BritanniaJs overseas co#promoters, hasrecently been the object of speculation about a possible takeover. -hough nothing

concrete has happened, any possible consolidation of 0$$6’s food business

at the global level with another strong >M!: player could have implications for

Britannia Industries. 4hareholders need to watch out for developments on both

these fronts, so that they can be factored into the investment decision.

T&# or""n o/ #%t &#%t&* t&"n 0#tt#r:

Britannia #the JbiscuitJ leader with a history#has withstood the tests of time.

7art of the reason for its success has been its ability to resonate with the changes

in consumer needs#needs that have varied significantly across its "Y year

epoch. 2ith consumer democracy reaching new levels, the one common thread to

emerge in recent times has been the shift in lifestyles and a corresponding

awareness of health. 7eople are increasingly becoming conscious of dietary care

and its correlation to wellness and matching the new pace to their lives with

improved nutritional and dietary habits.

-his new awareness has seen consumers seeking foods that complement theirlifestyles while offering convenience, variety and economy, over and above health

and nutrition.

Britannia saw the writing on the wall. Its A4wasth Rhao -an Man <agaoA '6at

8ealthy, -hink Better( re#position directly addressed this new trend by promising



the new generation a healthy and nutritious alternative # that was also delightful

and tasty.

-hus, the new logo was born, encapsulating the core essence of Britannia #

healthy, nutritious, and optimistic # and combining it with a delightful productrange to offer variety and choice to consumers.

Go0% +%rtn#r$:

-he 2adia :roup of India along with :roup anone of >rance is e@ual

shareholders in 0BI9, /R which is a major shareholder in Britannia Industries

9imited. :&/76 0$$6 is an International >M!: Major specializing in

>resh airy 7roducts, Bottled 2ater and BiscuitsK!ereals. ne of the 2orldleaders in the food industry, these are some of the laurels it possesses1

• worldwide in >resh airy 7roducts

• worldwide e@ually placed in Bottled 2ater 'by volume(

• worldwide in Biscuits and !ereal 7roducts

-hrough its three core businesses '>resh airy 7roducts, Beverages and

Biscuits and !ereal 7roducts(, :&/76 0$$6 is committed to improving

the lives of people around the world by providing them with better food products,

a wider variety of flavors and healthier pleasures. Its dominant position

worldwide is based on major international brands and on its solid presence in

local markets 'about NV of global sales come from brands that are local market

leaders(.



:&/76 0$$6 is recognized for the dynamism and strength of its brands1

• DANONE: the leading brand worldwide for >resh airy 7roducts

0$$6 represents almost %V of the international market. 0$$6 is

present in * countries worldwide.• E,"%n: the best selling mineral water brand, with ".+ billion bottles sold

every year. 7resent in the + continents, in "%+ countries.

• LU: the second brand worldwide, the first biscuits brand of :&/76

0$$6, which represents almost the half of the sales for the Biscuits

and !ereal 7roducts division. 9/ is mainly present in 2estern 6urope.

• 5%&%&%: the leading brand for refreshing still water 'water, readymade

tea, fruit juices(. -he brand is one of the most popular in !hina, with more

than ".+ billion liters of water sold each year. Its name means Athe child

who laughsA.

5&%t$ '%# % Br"t%nn"%n:

If you think Britannians are e5traordinary individuals who are

passionate about everything they doWcreate inspiration through everything

they doWand succeed in everything they doWyou’re probably right.

Britannians are hand#picked for a singular purposeWto perpetually ensure

Market 9eadership and generate e5emplary performance in every function.Britannians e5hibit the following leadership behaviors 'we fondly call

B/9Bs E Britannia /niversal 9eadership Behaviors(

Int#r"t*

T#%' Or"#nt%t"on

P#o+# D#,#o+'#nt

L#%rn"n Or"#nt%t"on

C$to'#r Or"#nt%t"on %"t* Or"#nt%t"on

Dr",# /or R#$t$

Entr#+r#n#r"% S+"r"t

S*$t#' %nd Pro!#$$ Or"#nt%t"on

Co''n"!%t"on



Co'+%n* r##%$#$:

Britannia reports robust top line growth of %*V. Mumbai, ctober %Oth, %1Britannia Industries 9td. 'BI9( has delivered its *th 4uccessive @uarter of %VY

growth.

$et 4ales &evenue at &s. ++ crores represents a growth of %*V. 7rofit after

-a5 declined by &s. %) crores for the @uarter, impacted by unprecedented and

inordinate inflation of "+V # %V in commodities like wheat, sugar, milk and

edible oils. Biscuit prices to the consumer have remained firm for the last +#

years. !ost effectiveness and technical efficiencies have significantly absorbed

the e5traordinary inflation in all input costs. $et 7rofit is also impacted by theonetime e5ceptional income of &s. ""N Mn available in the previous period 'si5

months ending 4ep +( that did not re#occur in the current period.

-he accelerated trajectory of %VY top line growth continued this @uarter as

well with all of the companyJs key brands # :ood ay, -iger, +1+ etc., and

categories, like bread, cakes and e5ports, posting double digit growth, in e5cess of

*V.

4pecifically1

• -his @uarterJs growth of %*V continues the accelerated trend achieved over

the last four @uarters # with the !ompany consistently growing more than

%V each @uarter for the last * @uarters.

• -o meet the high rate of growth, the !ompany is also investing in

augmenting its manufacturing capability with plans to invest over &s. "+

crores in infrastructure.

• Britannia has led the industry in innovation bringing delightful, Jnew to the

marketJ offerings like +1+ 7epper !hakkar, Marie:old oubles, !hota-iger, :ood ay cup cakes. -he range of >estive 7acks under the

A:reetingsA umbrella has doubled sales this iwali.

• !onsistent with its strategy of innovation, aily Bread in which Britannia

had ac@uired a strategic stake, has opened its first Italian frozen dessert

parlour Je9ucaJs :elato ItalianoJ in Bangalore.



M"#$ton#$:

7?8 -he :enesis # Britannia established with an investment of &s. %G+

in Rolkata

77 0dvent of electricity sees operations mechanized

787 Imported machinery introduced Britannia becomes the first

company 6ast of the 4uez to use gas ovens

79 4ales rise e5ponentially to &s.",%N,%% in "G)G

uring "G** sales ramp up by more than eight times to reach

&s.".) crores

7; Britannia Biscuit !ompany takes over biscuit distribution from

7arryJs

7? 7ublic issue # Indian shareholding crosses V

7 &e#christened Britannia Industries 9td. 'BI9(

7? -he 65ecutive ffice relocated to Bangalore

78 BI9 celebrates its 7latinum <ubilee

79 2adia :roup ac@uires stake in 0BI9, /R and becomes an e@ual

partner with :roupe 0$$6 in BI9

7 =olumes cross ",, tons of biscuits

7 &e#birth # new corporate identity J6at 8ealthy, -hink BetterJ leads to

new mission1 JMake every third Indian a Britannia consumerJ



• BI9 enters the dairy products market

7 ABritannia Rhao 2orld !up <aoA # a major successT 7rofit up by

)NV

8 >orbes :lobal &anking # Britannia among -op ) small

companies

87 BI9 ranked one of IndiaJs biggest brands

$o." food brand of the country

Britannia 9agaan Match1 IndiaJs most successful promotional

activity of the year

Maska !haska1 IndiaJs most successful >M!: launch

88 BI9 launches joint venture with >onterra, the worldJs second

largest dairy company

Britannia $ew Qealand >oods 7vt. 9td. is born

&ated as Jne amongst the -op % 4mall !ompanies of the

2orldJ by >orbes :lobal

6conomic -imes ranks BI9 IndiaJs %nd Most -rusted Brand

7ure Magic #2inner of the 2orldstar, 0siastar and Indiastar award

for packaging

89 J-reat uetJ# most successful launch of the year

Britannia Rhao 2orld !up <ao rocks the consumer lives yet again

8

•

Britannia accorded the status of being a J4uperbrandJ

=olumes cross ),, tons of biscuits

:ood ay adds a new variant # !hoconut # in its range



8; &e#birth of -iger # J4wasth Rhao, -iger Ban <aoJ becomes the

popular chantT

Britannia launched J:reetingsJ range of premium assorted gift

packs

-he new plant in /ttaranchal, commissioned ahead of schedule.

-he launch of yet another e5citing snacking option # Britannia +#

+ 7epper !hakkar.

F"n%n!"% +#r/or'%n!# Ann% P#r/or'%n!# (FY 8)

BritanniaJs gross sales turnover increased to &s "O,"NG mn in %+# from &s

","+* mn in the previous year, registering a growth of ")V. perating profit at

&s ",N) mn increased by NV, profit before ta5 and e5ceptional items at &s.

",G+O mn declined by "GV against %*#+ , Impacted by the profit on sale of

long term investments that accrued to Jother incomeJ last year.

-he !ompany achieved these results despite significant increases in input cost, particularly sugar, fuel and ils, coupled with aggressive pricing in the industry.;our !ompanyJs focused initiatives on commercializing market placeopportunities, supply chain efficiencies and overall cost management resulted inits top line growth and profitability. perating margin at ".)V in %+#compared with ".GV in the previous year was impacted by the inflation in inputcosts.



Bon$ %nd d","d#d &"$tor*:

Britannia has an e5cellent track record of rewarding its shareholders. -he

company has an uninterrupted record of distributing dividends for several

decades. -he dividends declared over the last " years are as under1

Y#%r D","d#nd P#r!#nt%#

"GG *.

"GGN *.

"GGO +.

"GGG ++.

% *+.%" ++.

%% N+.

%) ".

%* "".

%+ "*.

% "+.

Bon$ H"$tor*

Y#%r Bon$ P%rt"!%r$

"G" " e@uity share for every % shares held

"G * e@uity shares for every " shares held

"GO % e@uity shares for every ) shares held

"GN" % e@uity shares for every ) shares held

"GN N e@uity shares for every " shares held

"GO* % e@uity shares for every + shares held

"GON % e@uity shares for every + shares held"GG " e@uity share for every % shares held

% " e@uity share for every % shares held

Br%nd '"#$ton#$:



O,#r,"#-:

-he success of Britannia lies in its strategy of identifying high valueopportunities and capitalizing on them through relevant and differentiated brands,

supported by an effective and efficient supply chain. -he fountainhead of this

strategy is Brand Building, i.e. increasing consumer relevance, preference and

purchase. -he key drivers are availability, presence, and merchandising for brands

that offer consumers a satisfying e5perience across a variety of consumption

occasions, and price points that represent good value for money.



0s a corporate, Britannia has worked for the benefit of all stakeholders #

shareholders, consumers, dealers, suppliers, bankers, and employees. It has

established an e5cellent track record in terms of its financial performance and

dividends distributed to its shareholders. -his has been ade@uately demonstrated

with the !ompanyJs top line growing from &s. N,+%) mn in "GGN to &s. "O,"NG mnin % #a growth of "*%V over the last " years. -he net profit grew even more

significantly at N"OV from &s. "NG mn in "GGN to &s. ",** mn in %+#,

giving a !0:& of %.)V.

0s of )"st March %, the issued and paid up capital of Britannia amounts to

%),OG,") e@uity shares having a nominal value of &s. "K# each. -he

shareholder base is about %), in number.

BritanniaJs shares are listed at the Bombay 4tock 65change, $ational 4tock

65change and !alcutta 4tock 65change.

Br"t%nn"% M%r"# God Do0#$:

6verybodyJs favorite Marie biscuit now comes in a completely new avatarT

&ecently launched in -amil $adu, Britannia Marie :old oubles is all about

doubling e5pectations and e5perience. $aturally, everything about it is new and

e5citing. -his special variant of Marie, through a patented production process,offers three delicious layers in a new flavor concept # with the same old crispiness

and a subtle new taste. -he shape of the new Marie :old oubles biscuit is

completely altered and nowhere resembles the classic round Marie biscuit. -he

premium packaging is also a breakthrough design with an outer sleeve and uni@ue

shape. 4o whether people savor the biscuit themselves or gift it, Britannia Marie

:old oubles is definitely double the enjoymentT



Br"t%nn"% ;3; P#++#r C&%%r :

-he launch of the latest +#+ variant left everybody guessing A2hat it eez3A

>rom -= ads, radio, outdoor and in#store display materials to events, a website

and 4M4 and email blasts, traditional and new media were blended synergisticallyto create e5citement and curiosity about the uni@ue taste of the biscuit. -he tangy

and distinctive pepper flavored biscuit, thatJs thin and crispy and more like a

snack, caught the imagination of a younger audience craving something to nibble

on. -he +#+ 7epper !hakkar launch is truly a case of leveraging the marketing

mi5 to best advantage.

Mor# Po-#r to Br"t%nn"% Tr#%t

In a one#of#its#kind tie#up with the immensely popular kidsJ show A7ower&angersA on -oon isney, Britannia -reat created a huge buzz amongst kids. -he

brand activity targeted children in three cities # elhi, Mumbai and Bangalore # at

various touch points such as schools, malls, residential colonies and amusement

parks. -he idea behind it was to bring fun and adventure into the Britannia -reat

brand of cream biscuits with the help of a uni@ue new collectible toy # the 7ower

&angers 4hooter. -hese e5citing new toys were available with packs of Britannia

-reat, and kids had to collect them to solve the A7ower &angersA contest. 0n eye#

catching float, specially designed to promote this contest, was moved aroundthese cities and became the pulse point of A4hooter ManiaA. 0t the end of " days,

the activity touched %%+ schools across the three cities and reached more than

+, kids # and got every kid talking about Britannia -reat.

Br"t%nn"% T"#r$ At" P%t" O//#r /or C&"dr#n:

0lti 7alti was an e5citing offer to go with the most popular biscuit in the

country # Britannia -iger. !hildren love ventricular or ) picture collections and

-iger biscuits gave them just that. 2ith the purchase of Britannia -iger, kidscollected ventricular gifts such as rulers, book labels, bag tags and stickers. 6ach

gift had the animated -iger mascot on it doing crazy things like skateboarding,

cycling, dancing and more.



0s part of the promotion, a life#size -iger mascot visited select schools and

distributed the ) collection to the lucky children. -hey even got to photograph

themselves with their favorite -igerT -his e5citing offer ran at retail stores across

the country. Buzz was created with in#store display materials like attractive

dispensers and branded posters all based on the 0lti 7alti theme. -he 0lti 7alticraze caught on like wildfire amongst the kids # just like Britannia -iger biscuitsT

Br"t%nn"% $+#r 0r%nd 8938;

Moving on to other age groups, Britannia created +#+ as a biscuitsnack for young adults with its sweet#salty duality. -he savory -ime 7ass

brand is targeted at the same age group as well. Britannia Marie :old is a

venerated tea#time offering that is Jpacked with wheat energyJ and has foundmuch favor with health conscious urban adults. :ood ay, a cookie filledwith rich ingredients is a healthy everyday treat for the entire family.Britannia has a range of bread and cakes entrenched in the fresh bakerysegment. -hese products allow the consumers to interact with the brandmore often and maintain continuity of the taste#with#health promise.



R#!#nt D#,#o+'#nt$

0 new initiative taken by Britannia, to cater to all the taste fads of theconsumer, seeks to widen the range of its snack foods. -his will be BritanniaJs

biggest challenge in the ne5t few years. Meanwhile in e5isting categories of biscuits and baked products, innovation will be the key principle.

0 host of new flavors and food#formats, as never seen before in the Indianmarket, are due to enter the market in %*. -hus, Britannia will continue todefine the Indian market in biscuits and other food products.



Pro'ot"on:

-he role of promotions for Britannia is especially important in this highlyfragmented and competitive market. -oday, the company prides itself on

communication that is innovative, yet constantly able to strike a chord in theconsumersJ hearts and minds. BritanniaJs promotions have virtually redefinedconsumer e5pectations from this category.

-o reach out to the Indian consumer, Britannia has successfully leveragedIndiaJs two prime passions # cricket and movies. Britannia addressed these

platforms in a manner true to its uni@ue innovative style. It capitalized on everyIndianJs dream to watch a cricket 2orld !up match and created the JBritanniaRhao, 2orld !up <aoJ contest in "GGG. It based itself on instant gratification.

-he entire consumer needed to do was buy packs of Britannia biscuits, scratcha lucky card and win an all#e5penses paid trip to 6ngland to watch a 2orld!up match. -his promotion was so successful that it set a trend that has gotevery company scrambling for tickets to take their consumers for the 2orld!up. -his promotion was repeated successfully in %%K) with the destinationof choice being 4outh 0frica. -aking the success further was the promotion ofJBritannia Rhao, !ricketer Ban <aoJ that was fuelled by the need of everyIndian to be a part of the passion called cricket. Britannia followed it up withanother uni@ue promotion a vehicle that dealt with IndiaJs other passion #movies. 0 promotion called JBritannia 9agaan MatchJ that revolved around a

movie called 9agaan was based on a cricket match. -his promotion gave theconsumer a chance to interact with the film stars and also get to play cricketwith them. -he match had over *, spectators and made the headlines ofleading newspapers and news channels.

Britannia promotions have proved to the marketing world that promotions per se need not be only tactical but could also be strategic # used as a tool tofurther brand e@uity.

Britannia advertising has distinguished itself from competition in terms of

imagery and recall value. -he innovation of such communication wase5emplified through the launch of BritanniaJs salt#sweet biscuit. -he brand namewas +#+ and the consumer was never to upfront that the product was salt#sweet. But by just allowing the consumer to decipher the message himself, thecompany was able to draw the consumer closer and distinguish the offering fromcompetition.



Br%nd %#$:

-he Britannia brand is all about eating healthy, to lead a better life. Itadvocates values that stand for health, hygiene, family, trust and taste. It reflectsthe strong link between physical and mental well#being that is so important to a

person, and is typically a result of what one eats. -oday, Britannia, driven by a passion for e5cellence, manifested by its innovative thinking, has been able toweave itself into the fabric of the consumerJs everyday life. 2hile Britanniastrives to give consumers a healthier life, the consumer on the other hand, hascome to e5pect innovation from BritanniaJs offerings # a huge challenge for the

company.



R#$#%r!& '#t&odoo*-he non#e5ploratory research methodology will be used for thesis writing.

O0<#!t",#$:

0nalyze the effects of supply chain management on Britannia industries process.

4upplier !hain management in Britannia industries visa priyagold biscuits.

-o provide possible strategies for better implementation in 4!M inBritannia industries

R#$#%r!& "n$tr'#nt$:3

-he secondary data will be collected through internet, books and the materials published in journals and magazines.

S!o+# o/ t&# $td*:In competitive scenario how to increases the business with the implementation ofsupply chain management.

L"'"t%t"on$: $ot private data’s or primary data’s which really give correct information



escriptive works on the other biscuits producer company 'priyagold biscuits(

Introd!t"on o/ +r"*%od 0"$!"t$:

-he wondrous magical journey of our company 4urya >ood ? 0gro 9td. began in ct."GG) ? since then we have been one of the leading manufacturers of biscuits in northern India. ur brand S7&I;0:9D has been a perennialhousehold favorite since then. n a profound level spread in to western as well assouthern India, the inevitable cycle of distribution network has helped us tospread into western India as well. ur obsession is to make the finest @uality

biscuits available to the consumers ? our constant endeavor is to provide ourconsumers, a palate to look forward to a taste ? flavor that is uni@uelyS+r"*%odD.

2e are operating in the new age, ruled by the dizzying pace of technology, poised to pace up with emerging trends thus improving @uality standards everytime. ur fully automated ovens bake the biscuits round the clock and then theyfind their way to the automatic packing units at the company’s plant in 4urajpur,:reater $oida '/.7.(, catering the ever growing demand of S7&I;0:9D

biscuits. -his is reflected through our brand’s positioning which says S8a@ 4eMaangoD, a positioning that was formulated keeping in mind that everyone hasthe right to good taste and the right to ask for it. 2e feel that the means to findingthe future lies in believing in ourselves. ur over the period created trust and

confidence, can never be destroyed, just like the eternal force of nature. 2eadhere to ensure that S7&I;0:9D continue moving forward towards achieve best @uality for total consumer’s satisfaction.

B7 0garwal, chairman, 4urya >ood ? 0gro 9imited, the maker of 7riyagold brand of biscuits, is a small regional player who presents an insight into chasteIndian entrepreneurship and the minds of its practitioners.

0nd global giants would do well to take heed, for these are the local fighterswho have not allowed global brands to make a clean sweep of the markets indifferent industries. -hey continue to nag global brands in their own inimitable

local ways. A-hey have all the resources while we are small players in this business,A justifies 0garwal, with a note of sarcasm.2hile 0garwal maintains that 7riyagold is a small local brand, heJs @uick toflaunt his achievements in select markets. A2e sell more biscuits than Britannia in/7 and have a share of %+#) per cent,A he boasts.



In other towns and cities of northern India, 7riyagold has become a determiningfactor for whatever large players like Britannia and 7arle plan to do. >rom modestsales of less than &s %O crores in "GGO, 7riyagold has become an &s " crores

brand. 0nd the target this year is &s % crores. A2e hope to cross the &s *crores mark by %*#end, when weJll be selling in the 4outh and the 6ast ande5panding in the 2est,A says 0garwal. -hat may not impress the 0$$6’s ofthe world, but considering that the growth for 7riyagold comes primarily from alimited geographical coverage, it speaks volumes for the potential of the Indianmarket.

7riyagold hasnJt succumbed to pressures from mega#brands Britannia and7arle, which enjoy greater clout due to large product portfolios. $ot alldistributors and retailers are happy with big brands, claims 0garwal1 A2eJve triedto give a healing touch to egos bruised by the arrogant attitude of the M$!s andlarge companies.A 8and#in#hand with better returns, it can work wonders. 0nd

0garwal gives margins that are far more attractive than those offered by the large players. istributors get seven per cent against *#*.+ per cent from Britannia, andretailers get %#%+ per cent rather than an industry average of "#"+ per cent in theorganized sector./nlike bigger companies, 0garwal ensures distributors operate in clearlydemarcated territories so they are able to cover all retail outlets in their areas moreefficiently. A-his allowed a faster inventory turnover,A says 0garwal. 0t the sametime, 0garwal identified newer segments and flavors where there was virtually nocompetition, and launched variants like Resar Bite, !heese !rackers and !ashew!hat Masala.

In the cream segment, which accounts for almost * per cent of the total biscuit market by volume, 7riyagold had the regular chocolate, orange and elaichi.But 0garwal decided to target kids and launched new flavors like butter,chocolate and strawberry. A2e wanted to give consumers a new base of flavorsand train them to e5perience new tastes,A he e5plains. -oday he offers around %varieties, and retailers have begun to see 7riyagold as an alternative to big brands.0garwal has gone more by gut feel and understanding of the consumer, thanrelying on marketing te5tbooks.

In order to emphasize the value#for#money proposition, 0garwal focused on

economy packs and 7riyagold was the first to enter the %+ gm segment when itsButter Bite was launched in "GG). 4eeing the success of Butter Bite, BritanniaJs:ood ay, which sold in " gm packs 'priced at &s "(, also entered the %+ gmsegment at &s "O, the same as the former. 0garwal takes pride in the fact7riyagold has strength to make big players react. -oday 7riyagold biscuits comein " gm, %+ gm and 0-! packs. 2hen Britannia introduced its Marie sachetof two, 7riyagold responded with a pack of four at the same price of one rupee.



0garwal is targeting hospitals like 0pollo for these sachet packs.0ccording to &adhika &oy, national @ualitative head, $> India, biscuits, as a

category, bring certain category boundaries. verall, 'barring the cream variety(most formats are driven by JrationalJ consumption triggers and aspects like taste,indulgence and gratification are less dominant. Aften itJs as a filler, cheaphospitality item or sustenance that one buys biscuits,A she says. 0nd this is theneed gap that 0garwal wants to fill.

-he larger players have been trying to change this by imbuing the categorywith higher order rational vales 'health, vitamins etc(. >or 7riyagold, it makessense to push sales through salience and retail measures. A-he strategy in the shortterm to build critical mass is good from their point of view. But when they

become significant players, they will have to look at more enduring and long#terminitiativesA, says &oy. -hat will be the challenge for people like 0garwal. 0fterall, the task of brand differentiation is a huge one, e5pensive and fraught with

many pitfalls.0nalysts agree that while not necessary for market leaders, for challengers,

the strategy adapted by 7riyagold seems more prudent and effective. AInstead ofreinventing some of the issues, theyJve focused on value#adding, such as puttingmore sugar or making biscuits softer and crunchier,A adds &oy.

>or si5 years since its launch in "GG*, 7riyagold clung to its obvious targetconsumer, the middle and lower middle class in 46! B and !. irect competitioncame from local cousins in north India, like 0psara, 0nmol, !remica and !rown.0garwal had enough money 'from his oil mills( to pump into his new venture.!learly savvier than local rivals, he communicated with consumers by spendingon the mass media.

-his was enough for him to leave local rivals far behind and @uickly becomeacceptable to the middle class. 4tarting with /7 and $ew elhi, 7riyagolde5panded into 7unjab, 8aryana, <?R and &ajasthan. 2hile the brand got astronghold on the 46! B and ! consumer segment, over the years, it distanceditself from the high#end consumers, who turned to Britannia and 7arle. A2eJrestill not acceptable to top#end consumers in the large cities,A confides a seniorstaffer in the company.



9ast year, 0garwal decided to take the brand to up market retail shelves in elhito attract consumers in the upper income strata. But resistance came from largeretailers in localities like :reater Railash and 7anchsheel 7ark. In a bid toconvince them 0garwal undertook a complete packaging overhaul across theentire range. 0garwal convinced big#time retailers to let 7riyagold set up acounter and was even willing to pay them says a big 7riyagold distributor. -heresults were good, if not amazing X the brands found a place in swanky outlets,like Morning 4tores in elhi. 0lthough he hiked 7riyagold advertising budgetfrom &s + crores last year to &s N crores, 0garwal believes smaller players willnot be able to match resources of national marketers and M$!s when it comes tofrills and imagery. AItJs more essential to improve processes in your back#endoperations to convince people about @uality and hygiene,A he says. -hatJs surelyone thing consumers evaluate while considering local brands.

-herefore, 0garwal is pumping money into e5tensively modernizing his

factory. 4urya is setting up a new integrated plant at 4urajpur on the outskirts ofelhi at a whopping &s + crores, which will have flour, oil mill and biscuitmaking and packaging units.0nother new plant is being set up in 9ucknow at a cost of &s % crores so that7riyagold can cater to the eastern /7 market better. 0garwal is now importing astate#of#the#art cream sandwiching machine for &s + crores X which, he claims,nobody has in the whole of south 0sia. -hese may be small things for globalgiants, but give tremendous joy to 0garwal.

Pr"*%od to t%# on Br"t%nn"% on "t$ tr/:

6=6$ as the Big -woJ # Britannia and 7arle # fight a pitched battle in the &s),#crore biscuits market, one regional player that has been @uietly grabbingmarket share and forcing competition to have a rethink of their strategies, is theelhi#based, &s "+#crore 4urya >ood ? 0gro 9td, marketer of 7riyagold

biscuits.

-he decade#old 4urya >ood, which has stronghold markets in /ttar 7radesh,

7unjab and 8aryana, plans to take on Britannia on its own turf later this year. Inother words, the company plans to foray in the 4outhern market by the end#%),

beginning with Rarnataka. A4ubse@uently, we intend to set up a manufacturingunit in the 4tate,A Mr 4hekhar 0garwal, irector, 4urya >ood ? 0gro, told

Business Line. 8e added that the companyJs immediate priority was to doubleturnover # to &s ) crore # in the current fiscal.



Meanwhile, 4urya >ood plans to set up a fresh manufacturing facility in:reater $oida '/7( ne5t financial year, on an investment of &s % crore. -hecompanyJs third manufacturing base in 9ucknow, set up on an investment of &s +crore, kicked off production in >ebruary this year, and is e5pected to begin

production in full swing later this month, he said. 4urya >oodJs e5istingmanufacturing bases are in 4urajpur 'where it has seven biscuit lines( and>aridabad 'a franchisee unit(.

-he 7riyagold brand already claims market leadership in the non#glucose biscuit segment, which, according to industry estimates, accounts for ) per centof the overall biscuits market. Meanwhile, BritanniaJs market share dropped to*+.% per cent in ctober from *.+ per cent in 4eptember last year, according to0! $ielsen data.

8e ruled out the privately#held 4urya >ood entering into joint ventures or tie#ups at this stage, even as he admitted that several multinationals have e5pressedinterest in either buying out or forging strategic alliances with his company.7riyagold which currently has %) varieties of biscuits, plans foray into salty

biscuits ne5t year.

-he company plans to hike its consolidated ad spend from &s + crore last yearto &s O crore this fiscal. 65ports of 7riyagold biscuits to markets such as ubai,Muscat and man are on the cards, and the first consignment is e5pected to beshipped later this year.

Pr"*% Food %n!&#$ $!&#'# /or Pr"*%od 0"$!"t$ :

7riyagold brand biscuits manufacturer, 4urya >ood ? 0gro, is

aggressively promoting its brand with the launch of a scheme titled Rhaao 0ur

Rhelo. 0ccording to the scheme, on every purchase of &s+ and above worth of

7riya:old biscuits, customers will receive a free gift coupon, enabling him to

become eligible for a prize. -he first prize will be a Mercedes Benz car, followed

by Maruti 0lto 'five second prizes(, -anish@ <ewellery '" third prizes( and a

!ompa@ 9aptop '" fourth prizes(.



Pr"*%od /or%*$ "nto <"!#$ $#t$ + n"t "n No"d%:

698I $!&#based 4urya >oods and 0gro 9td, manufacturers of 7riyagold

biscuits, has forayed into the juices segment. It has set up a state#of#the#artmanufacturing facility in :reater $oida with an investment of &s %+ crore. -he plant has a capacity of producing ".+ lakh liters of juice per day.

Branded >reshgoldJ, the one#liter juice in cartons is available in supermarketsand malls in and around elhi for &s . 4peaking to Business 9ine, Mr B.7.0garwal, !hairman, 4urya >oods and 0gro 9td, said, A-hough the juices arecurrently available only in the northern markets, we plan to launch it in the south

by the ne5t month. 2e are also working on a specific distribution network for thesame.A

-he &s )#crore turnover company is also setting up a biscuit manufacturing plant in /ttaranchal to avail of the ta5 incentives. A2e are investing around &s %crore on the plant with a capacity of " tons per day, which would be operational

by ecember %,A Mr 0garwal said.

-he company has been keeping a low profile with regard to advertising and promotions after its not#so#good e5perience with the 7riyagold khaao or kheloJcontest. 0ccording to Mr 0garwal, A-he retailers did not give out the coupons tothe end#consumers. !onse@uently, we had to withdraw the scheme from the

market.A 8owever, he said that the company has earmarked around &s ) crore for promoting the juices. 2hile tele#commercials have already begun on India -=,the company is hopeful of running them on all other channels by the ne5tfortnight.

It is also in the process of sprucing up its e5ports operations. !urrently ite5ports its biscuits to countries such as ubai and $epal. 0ccording to Mr0garwal, A-he high level of ta5ation in the domestic market, which is a majorconcern, is one of the reasons why we are looking to increase e5port volumes.A

65plaining further, he pointed out that high input costs and ta5es are affectingmargins and profits. 0s fierce competition from other players is preventing thecompany from increasing prices, he said, A8igh ta5es are even forcingmanufacturing units to close down. In fact, we have already had to shut down twoout of si5 companyJs plants.A



2hile speaking on the companyJs performance, he said, A2e face immensecompetition not just from competitors in organized retail but also from theunorganized market which holds almost * per cent of the market share and hasthe benefit of not being subject to any ta5es.A -he government needs to look intothe matter before the situation worsens, he added.

B#/or# d%t% %n%*$"$ -# $&od no- t&# $tr%t#"! %r#% o/ %

!o'+%n*. So t&%t % !o'+%n* !%n %n%*4# t&# 0$"n#$$ +ro!#$$#$.

Str%t#"! %r#%$:

L#%d#r$&"+: Investing in leaders who are personally involved in thedevelopment and achievement of the organizations vision and !orporatebjectives, who develop values re@uired for long#term success, and implementthese via appropriate actions and behaviors and manage the workforce in a fairand supportive manner.

P#o+#: eveloping a learning organization which cultivates the full potential ofits people at an individual, team and organization level and provides them withthe competencies and skills needed to meet service re@uirements in a constantlychanging environment.

Po"!*: eveloping an organization, which manages fairly, consistently andeffectively within a sound framework of stakeholder focused strategies, supported

by relevant policies, plans, objectives, targets and processes.

P%rtn#r$&"+: Building an outward looking organization, which values thediversity of the community it serves, seeks to reflect this within its workforce, andnurtures partnerships for the benefit of the community.

R#$or!#$: !ontinuously improving the use of resources 'both internal ande5ternal( to ma5imize the effectiveness and efficiency of the rganization.



2hy an organization should decide the strategies3

T&# $tr%t#"#$ +ro,"d# $o'# 0%$"!$:

". 6nsure the provision advisory and support services across all services.

%. Identify the re@uirements and priorities for all functions in accordance with thecorporate objectives, the corporate plan and the epartmental 4ervice 7lans of all

other epartments.

). 4eek to provide Best =alue in the provision of all services

*. 6stablish @ualitative and @uantitative performance targets and indicators to

continually improve standards.

+. 7romote the role and continuously develop the employees engaged in service

delivery, supporting and enabling them to deliver @uality and cost effective

services.

. >or epartmental representatives to meet on a regular basis to ensure that there

is clear communication and to develop best practice internally.

N. -o work with the trade unions and to seek to maintain effective employee

relations and in doing so produce a clear statement of shared values between the

!ouncil and representatives of the workforce.

-he food marketing and supply chain management group combines e5pertise in

marketing and supply chain management in the conte5t of the food industry.!urrent research is focused on a number of inter#related issues.

K#* %r#%$ "n!d#:

• food safety and risk management• demand management and promotional planning• brand e@uity and segmentation• food labeling and communication• sustainable sourcing• !orporate social responsibility.



#rt"!% !o3ord"n%t"on %nd S++* C&%"n R#%t"on$&"+$

4upply !hain management '4!M( is concerned with the sharing ofinformation, in order to reduce uncertainty and risk, save time, reduce costs,increase effectiveness and add value. In competitive markets continualimprovement is essential but difficult to achieve when businesses work in avacuum. -he food industry has been slow to emulate other industries that haveembraced the principles of 4!M in order to meet consumer needs more @uickly,more effectively and more efficiently

D#'%nd '%n%#'#nt %nd +ro'ot"on% +%nn"n

Management of demand is increasingly recognized as a key area for improving

the efficiency of supply chain operations. -here has been considerable work in

both the academic and practitioner fields as to how to improve the management ofdemand, ranging from the early work on demand amplification to more recent

initiatives in 6fficient !onsumer &esponse '6!&( and !ollaborative 7lanning

>orecasting and &eplenishment '!7>&(.

Food S%/#t* %nd R"$ M%n%#'#nt

-he need for greater scrutiny of farming and food manufacturing practices and

effective traceability back to the farm 'and beyond( has imposed additional costs

on the agri#food industry but provided much#needed momentum for improved

communication within the food chain. 8owever, compliance remains a challenge,

for the rule makers as well as the rule breakers. &esearch in this area includes the

e5ploration of public#private partnerships in the regulation of food safety , vertical

co#ordination as a risk management strategy and the role of assurance schemes in

developing transparent integrity in the food chain and the impact of food labeling

and public sector communication campaigns on food purchasing behavior.



Br%nd o*%t* %nd '%r#t $#'#nt%t"on

0s competition for market share and Jshare of stomachJ intensifies in a foodretailing industry that is highly concentrated and reaching maturity, so the

development, growth and defence of brand loyalty becomes increasinglyimportant for food manufacturers and retailers at risk of falling into thecommodity trap. ur research in this area focuses on the use of alternativemethods of market segmentation and particularly psychographics to develop

brand loyalty amongst distinct consumer groups and the way in which different promotional tools can be used to encourage brand switching behavior.

Food L%0#"n %nd Co''n"!%t"on

!onsumers are becoming increasingly aware of 'and concerned about( thecomposition 'health and safety(, provenance and environmentalKanimal welfareimplications associated with the foods they purchase. -he :overnment is alsogrowing increasingly concerned about the health of the nation and is

becoming more involved in promotional and educational campaigns in an effort toraise awareness of the dietary issues and encourage the consumption of morehealthy foods.

S$t%"n%0# Sor!"n %nd Cor+or%t# So!"% R#$+on$"0""t*

!onsumers are becoming increasingly aware of and concerned about theenvironmental, social and ethical issues associated with food production,distribution, manufacturing and retailing. -hese impacts most strongly on foodretailers and manufacturers, who are global sourcing strategies, have fuelled theJfood milesJ debate and whose relationships with suppliers have raised concernsabout ethical trading practices and the sustainability of food production.



Supply Chain Business Process Integration:

4uccessful 4!M re@uires a change from managing individual functions tointegrating activities into key supply chain processes. 4upply chain business

process integration involves collaborative work between buyers and suppliers, joint product development, common systems and shared information.

0ccording to 9ambert and !ooper '%( operating an integrated supply chainre@uires continuous information flows, which in turn assist to achieve the best

product flows. 8owever, in many companies, management has reached theconclusion that optimizing the product flows cannot be accomplished withoutimplementing a process approach to the business. -he key supply chain processesstated by 9ambert '%*( are1

• !ustomer relationship management• !ustomer service management• emand management• rder fulfillment• Manufacturing flow management• 4upplier relationship management• 7roduct development and commercialization• &eturns management

ne could suggest other key critical supply business processes combining these processes stated by 9ambert such as1

a. !ustomer service Management b. 7rocurementc. 7roduct development and !ommercializationd. Manufacturing flow managementKsupporte. 7hysical istributionf. utsourcingK 7artnershipsg. 7erformance Measurement



%) C$to'#r $#r,"!# '%n%#'#nt +ro!#$$

!ustomer service provides the source of customer information. It also providesthe customer with real#time information on promising dates and productavailability through interfaces with the companyJs production and distributionoperations.

0) Pro!r#'#nt +ro!#$$

4trategic plans are developed with suppliers to support the manufacturing flowmanagement process and development of new products. In firms where operationse5tend globally, sourcing should be managed on a global basis. -he desired

outcome is a win#win relationship, where both parties benefit, and reduction timesin the design cycle and product development is achieved. 0lso, the purchasingfunction develops rapid communication systems, such as electronic datainterchange '6I( and Internet linkages to transfer possible re@uirements morerapidly. 0ctivities related to obtaining products and materials from outsidesuppliers. -his re@uires performing resource planning, supply sourcing,negotiation, order placement, inbound transportation, storage and handling and@uality assurance. 0lso, includes the responsibility to coordinate with suppliers inscheduling, supply continuity, hedging, and research to new sources or

programmes.

!) Prod!t d#,#o+'#nt %nd !o''#r!"%"4%t"on

8ere, customers and suppliers must be united into the product development process, thus to reduce time to market. 0s product life cycles shorten, theappropriate products must be developed and successfully launched in ever shortertime#schedules to remain competitive. 0ccording to 9ambert and !ooper '%(,managers of the product development and commercialization process must1

". coordinate with customer relationship management to identify customer#articulated needs%. select materials and suppliers in conjunction with procurement, and). evelop production technology in manufacturing flow to manufacture and

integrate into the best supply chain flow for the productKmarketcombination.

http://en.wikipedia.org/wiki/Quality_assurance

http://en.wikipedia.org/wiki/Quality_assurance



d) M%n/%!tr"n /o- '%n%#'#nt +ro!#$$

-he manufacturing process is produced and supplies products to thedistribution channels based on past forecasts. Manufacturing processes must befle5ible to respond to market changes, and must accommodate masscustomization. rders are processes operating on a just#in#time '<I-( basis inminimum lot sizes. 0lso, changes in the manufacturing flow process lead toshorter cycle times, meaning improved responsiveness and efficiency of demand

to customers. 0ctivities related to planning, scheduling and supportingmanufacturing operations, such as work#in#process storage, handling,transportation, and time phasing of components, inventory at manufacturing sitesand ma5imum fle5ibility in the coordination of geographic and final assemblies

postponement of physical distribution operations.

#) P&*$"!% D"$tr"0t"on

-his concerns movement of a finished productKservice to customers. In physicaldistribution, the customer is the final destination of a marketing channel, and the

availability of the productKservice is a vital part of each channel participantJsmarketing effort. It is also through the physical distribution process that the timeand space of customer service become an integral part of marketing, thus it links amarketing channel with its customers 'e.g. links manufacturers, wholesalers,retailers(.

/) Ot$or!"n=P%rtn#r$&"+$

-his is not just outsourcing the procurement of materials and components, butalso outsourcing of services that traditionally have been provided in#house. -helogic of this trend is that the company will increasingly focus on those activities inthe value chain where it has a distinctive advantage and everything else it willoutsource. -his movement has been particularly evident in logistics where the

provision of transport, warehousing and inventory control is increasinglysubcontracted to specialists or logistics partners. 0lso, to manage and control thisnetwork of partners and suppliers re@uires a blend of both central and local

http://en.wikipedia.org/wiki/Logistics

http://en.wikipedia.org/wiki/Logistics



involvement. 8ence, strategic decisions need to be taken centrally with themonitoring and control of supplier performance and day#to#day liaison withlogistics partners being best managed at a local level.

) P#r/or'%n!# M#%$r#'#nt

65perts found a strong relationship from the largest arcs of supplier andcustomer integration to market share and profitability. By taking advantage ofsupplier capabilities and emphasizing a long#term supply chain perspective incustomer relationships can be both correlated with firm performance. 0s logisticscompetency becomes a more critical factor in creating and maintainingcompetitive advantage, logistics measurement becomes increasingly important

because the difference between profitable and unprofitable operations becomesnarrower.

0ccording to e5perts internal measures are generally collected and analyzed bythe firm including

". !ost%. !ustomer 4ervice). 7roductivity measures*. 0sset measurement, and

+. Luality.

65ternal performance measurement is e5amined through customer perceptionmeasures and Abest practiceA benchmarking, and includes1

"( !ustomer perception measurement

%( Best practice benchmarking

Co'+on#nt$ o/ S++* C&%"n M%n%#'#nt %r#

". 4tandardization

%. 7ostponement

). !ustomization



-he data analysis Base on the secondary data’s which I have collected throughinternet, magazines, books etc.

DATA ANALYSIS:

0s per my analysis I find out these factors in both companies1

A0ot Br"t%nn"% "nd$tr"#$:

-he !ompanyJs principal activity is the manufacture and sale of biscuits,

bread, &usk, cakes and dairy products like cheese, butter and milk.

Britannia products are sold in over two million outlets, reaching millions of

consumers who buy appro5imately %.* billion packs each year.

0 small army keeps Britannia going#over " stock#keeping units, )

employees over "+ authorized whole sellers. +) depots and * factories.

0ll Britannia biscuits sold in a year would stand " times taller than

Mount 6verest.

9aunched in "GGN, tiger became the largest selling Britannia biscuit brand

in just four months of launch. It crossed the rs. ne billion sales mark in its

very first year and growing stronger.

BritanniaJs controlling stake is jointly with :roupe anone and $usli

2adia. :roupe anone is one of the leading players in the world in bakery

products business

Britannia strode into the %"st !entury as one of IndiaJs biggest brands and

the pre#eminent food brand of the country. It was e@ually recognized for its

innovative approach to products and marketing.

Britannia will continue to dream big on its path of innovation and @uality

-he focus on cost control and supply chain management yielded savings of

&s%.% crores in %*#+.





7rofit growth has been outpacing sales growth due to cost savings

$et 4ales &evenue at &s. ++ crores represents a growth of %*V.

BritanniaJs gross sales turnover increased to &s "O,"NG mn in %+# from

&s ","+* mn in the previous year, registering a growth of ")V. perating

profit at &s ",N) mn increased by NV, profit before ta5 and e5ceptional

items at &s. ",G+O mn declined by "GV against %*#+.

espite stiff competition, your !ompany stabilized and held its overall

market share at )".NV in volume and )O.OV in value for the last year.

0s of )"st March %, the issued and paid up capital of Britannia amounts

to %),OG,") e@uity shares having a nominal value of &s. "K# each. -heshareholder base is about %), in number.

BritanniaJs shares are listed at the Bombay 4tock 65change, $ational

4tock 65change and !alcutta 4tock 65change.

!ommenting on the performance, Ms. =inita Bali, Managing irector, BI9

said> Averall, in a year characterized by e5traordinary and unprecedented

inflation in key inputs, we have created a step change in our growth rate,

and in fact doubled it. -his is driven by focused investment in fundamental

growth pillars like renovating e5isting bands, launching new innovative

products, creating efficient capacity, strengthening infrastructure and

building organizational capabilities. Britannia brands now have greater

reach in rural markets and pervasive presence in modern tradeA

Brand =alues1 -he success of Britannia lies in its strategy of identifying

high value opportunities and capitalizing on them through relevant and

differentiated brands, supported by an effective and efficient supply chain.

-he fountainhead of this strategy is Brand Building, i.e. increasing

consumer relevance, preference and purchase. -he key drivers are

availability, presence, and merchandising for brands that offer consumers a



satisfying e5perience across a variety of consumption occasions, and price

points that represent good value for money.

A0ot +r"*%od 0"$!"t$:

7riyagold big strength is that about N per cent of the brandJs sales come

from rural markets. 0part from Britannia and 7arle, other significant

players in the market include Bakemans, 7riya Biscuits 'also a 4urya group

company( in the 6astern region, and uke that is strong in the 4outh. 2hile

Britannia leads by value, 7arle is the biggest volumes player in the

organized market, according to industry estimates.

Biscuits are one >M!: category that has been on steady growth path even

as most others have been sliding. 7riyagold biscuits grew ".) per cent by

value and "". per cent by volume.

It has set up a state#of#the#art manufacturing facility in :reater $oida with

an investment of &s %+ crore. -he plant has a capacity of producing ".+

lakh liters of juice per day.

istributors get seven per cent against *#*.+ per cent from Britannia, and

retailers get %#%+ per cent rather than an industry average of "#"+ per

cent in the organized sector.

6ven as the Big -woJ # Britannia and 7arle # fight a pitched battle in the &s

),#crore biscuits market, one regional player that has been @uietlygrabbing market share and forcing competition to have a rethink of their

strategies, is the elhi#based, &s "+#crore 4urya >ood ? 0gro 9td,

marketer of 7riyagold biscuits.



7riyagold hasnJt succumbed to pressures from mega#brands Britannia and

7arle, which enjoy greater clout due to large product portfolios.

INTERPRETATION:

Britannia industries covering more market share.

Britannia is a global brand and it has global partners like :roupe anone

and $usli 2adia.

Brand value of Britannia is more as compare to any other bakery industries.

0s per the products categories Britannia is in biscuits, breads, and packed

food.

0 Britannia biscuit is an industry but priyagold is the product of company

4urya >ood ? 0gro 9td which produces juice also.

Britannia has covering both rural and urban areas but priyagold only urban

:iving divided and bonus to shareholders and registered in B46, $46

stock e5change.

Britannia has wide network with big infrastructure, new technology and

good customer relations.

Britannia is working on supply chain.

Britannia biscuits have wide variety and flavor in biscuits. But priyagold is

not as much.



ADANTAGES AND CHALLENGES

Ad,%nt%#$ C&%#n#$

Increasing disposable income

changing life style of consumers

8igh tariffs and increasing

non# tariff barriers

:rowing health and hygiene

awareness among the middle class

0nti@uated food laws and

internal policies which restrict

marketing

:overnment’s high priority on

food#processing industry

Inade@uate infrastructure

facilities, like cold storage and

roads

7lentiful availability of rawmaterials

Increasing competition fromlocal players

Increasing presence of

multinational companies

9ong and fragmented supply

chain

Modernizing retail sector in big

cities

7roblems in tapping the vast

rural market and unorganized

retail sector

Move towards a new S>ood 4afety

and 4tandardsD legislation by the

government

!onsumer preference for fresh

foods



SUGGESTIONS:

0mong the factors, which have contributed the most towards growth aremarket related factors and I- factors like rise in e#commerce and usage ofInternet.

-he food and beverage industry has very small margins and is very dynamic.for these accurate supply chain information is absolutely key, not just for

planning, but also for operational efficiency. Britannia biscuits industrieshas a great opportunity to take advantage of the modern technologiesavailable that can help it to increase the level of customer service, createnew operational efficiencies, reduce risk, and increase profitability. It’s stilla vastly untapped area of supply chain management.

-he common factors which have contributed towards manufacturing and

service both are rise in e commerce and sourcing out. :lobalisation and9iberalisation policies have benefited the service sector more than themanufacturing sector.

Improving supply chain processes re@uires better collaboration betweenretailers and suppliers. 4o keep good relation with them.

-he customers today are not very forgiving, referring to the conse@uences ofmissed delivery schedules. If a company was able to manufacture a productwith the right @uality and the right price but missed on delivery, the othertwo got nullified. 4o company should deliver on right time. 4ervices should

be standardized. Managing the supply chain was not just about transportation of goods. It

was about managing the mismatch of stocks, looking at high inventory andeliminating premium freight, and managing many suppliers.

-here is the need for improving infrastructure to take advantage of the waveof outsourcing.



CONCLUSIONS:

uring this thesis I have read lots of material about the organization and

their process of manufacturing the products. I find one similarity between these isthat the organizations want value for their money. -hey want @uality and @uick

services. -his is because time saved is the money gained. 4o that organizations

fulfill the re@uirement of the customers with the satisfaction and make good

relations. Britannia industries also try to give ma5imum satisfaction to their

customers. -he company main motive is to provide the right @uality to right

customer at right time with satisfaction. !ompany is using supply chains to

control the cost.

-he Britannia brand is all about eating healthy, to lead a better life. It

advocates values that stand for health, hygiene, family, trust and taste. It reflects

the strong link between physical and mental well#being that is so important to a

person, and is typically a result of what one eats. -oday, Britannia, driven by a

passion for e5cellence, manifested by its innovative thinking, has been able to

weave itself into the fabric of the consumerJs everyday life. 2hile Britannia

strives to give consumers a healthier life, the consumer on the other hand, has

come to e5pect innovation from BritanniaJs offerings # a huge challenge for the

company.



ANNEURE:

F"n%n!"% r#$t$:

• $et sales in %*1 "),%* million 6uros 'Y."V at comparable scope(

• perational Income1 ",N million 6uros



S&o-!%$# %nd 0r%nd $tor"#$:

http://www.britannia.co.in/brandstories_breadcakes.htm

http://www.britannia.co.in/brandstories_greetings.htm

http://www.britannia.co.in/brandstories_nicetime.htm

http://www.britannia.co.in/brandstories_littlehearts.htm

http://www.britannia.co.in/brandstories_timepass.htm

http://www.britannia.co.in/brandstories_nutrichoice.htm

http://www.britannia.co.in/brandstories_milkbikis.htm

http://www.britannia.co.in/brandstories_treat.htm

http://www.britannia.co.in/brandstories_mariegold.htm

http://www.britannia.co.in/brandstories_50-50.htm

http://www.britannia.co.in/brandstories_goodday.htm

http://www.britannia.co.in/brandstories_tiger.htm



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