Company profile:

The story of one of India's favourite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit
company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. 295. The company
we all know as Britannia today.

The beginnings might have been humble-the dreams were anything but. By 1910, with the advent of electricity, Britannia
mechanised its operations, and in 1921, it became the first company east of the Suez Canal to use imported gas ovens.
Britannia's business was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a
result, during the tragic World War II, the Government reposed its trust in Britannia by contracting it to supply large
quantities of "service biscuits" to the armed forces.

As time moved on, the biscuit market continued to grow… and Britannia grew along with it. In 1975, the Britannia Biscuit
Company took over the distribution of biscuits from Parry's who till now distributed Britannia biscuits in India. In the
subsequent public issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indianness of the firm. The
following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years later in 1983, it
crossed the Rs. 100 crores revenue mark.

On the operations front, the company was making equally dynamic strides. In 1992, it celebrated its Platinum Jubilee. In
1997, the company unveiled its new corporate identity - "Eat Healthy, Think Better" - and made its first foray into the dairy
products market. In 1999, the "Britannia Khao, World Cup Jao" promotion further fortified the affinity consumers had with
'Brand Britannia'.

Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country. It
was equally recognised for its innovative approach to products and marketing: the Lagaan Match was voted India's most
successful promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became India's most
successful product launch. In 2002, Britannia's New Business Division formed a joint venture with Fonterra, the world's
second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision and
accelerating graph, Forbes Global rated Britannia 'One amongst the Top 200 Small Companies of the World', and The
Economic Times pegged Britannia India's 2nd Most Trusted Brand.

Today, more than a century after those tentative first steps, Britannia's 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 for Britannia's
shareholders. The company's offerings are spread across the spectrum with products ranging from the healthy and
economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having succeeded in garnering the trust of almost
one-third of India's one billion population and a strong management at the helm means Britannia will continue to dream big
on its path of innovation and quality. And millions of consumers will savour the results, happily ever after.
 VINITA BALI
Vinita Bali was appointed Managing Director on 31st May 2006. Vinita joined as Chief Executive Officer of the Company in
January 2005. She received her Bachelor's Degree in Economics from LSR at the University of Delhi and her MBA at the
Jamnalal Bajaj Institute of Management Studies at Bombay University. She pursued postgraduate studies in Business and
Economics at Michigan State University on a scholarship from The Rotary Foundation, and was selected to work as a
Graduate Intern at the United Nations headquarters in New York.

She started her career with Voltas Ltd.-a Tata Group company focusing on consumer products, where she launched Rasna
soft-drink concentrate. In 1980, Vinita joined Cadbury India, where she had a successful career in roles of increasing
responsibility, not just in India, but also in the UK, Nigeria and South Africa. Vinita also served on the Boards of Cadbury
Nigeria and Cadbury South Africa.

The Coca-Cola Company chose her as its worldwide Marketing Director in 1994 where she was responsible for the
worldwide strategy for Coke, and was one of the key players in doubling its historical growth rate. In 1997 she took over as
Vice President of Marketing for Latin America, and in 1999 relocated to Chile as President of the Andean Division with sales
in excess of USD 1 Billion. In 2001, she was made a corporate officer of The Coca-Cola Company and appointed Vice
President of Corporate Strategy reporting to the Chairman.

After an eventful nine-year association with Coke, Vinita joined her mentor at Coke, Sergio Zyman at the Zyman Group in
July 2003 as a Managing Principal and Head of the Business Strategy practice in the company's Atlanta office. As a member
of the company's Board of Managers, Vinita shared responsibility for developing and managing Zyman Group's consulting
business.

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 Good Day was launched in 1986 in two delectable avatars - Good Day Cashew and
ver the years, new variants were introduced - Good Day Pista Badam in 1989, Good
cochips in 2000 and Good Day Choconut in 2004.

cookie enjoys a fan following of consumers across all ages, loyal to the brand promise
t taste, evident from the visibly abundant ingredients. Good Day is among the fastest
brands in Britannia's portfolio and it has been the leader in the cookies category ever
launch. The brand is synonymous with everyday treats that infuse happiness into
lives.

decades of magnificent success; it was time to give the nation yet another reason to
good day. Abundance, goodness, indulgence and now unrestrained joy - that is the
of this new campaign.

TT ad is the uncontrollable expression of the ticket collector's happiness and joy that is
d by consumption of the cookie, that spreads cheer amongst the people around him
an atmosphere of shared joy that's unorchestrated and straight from the heart. The
on was taken to the IPL as Good day cheered along with a million cricket fans in the
, each screaming and proclaiming "Ho gaya re Good Day". The dazzling brilliance of this
ur, the contagious rhythm needs to be lived and spread through the nation, making
h ho Gaya Re Good Day' a part of the common lingo and a way of life.

y truly believes laughter and happiness are infectious, it transcends race, caste creed
humanity in an inclusive emotion.

d perseveres to infuse cheer, hearten the nation and enliven lives. With its rightful
the front page of The Times of India, Good Day gifts the nation a priceless treasure,
preading JOY!

ay Consumer Promo >>

Chennai
M T H Road, Padi,
Chennai - 600 050
Tamil Nadu
Ph: 044 - 3021 6000 / 3021 6001 / 3021 6002
Fax: 044 - 2625 8568 / 2625 4872
 Britannia Industries Limited

Public
Type (BSE: 500825)
(NSE: BRITANNIA)

Industry Food

Founded 1892

Kolkata and Bangalore; R&D

Headquarters
Chennai, India

Number of
300 stores (2000)
locations

Area served India

Nusli Wadia, Chairman

Key people
Ms. Vinita Bali, (Managing Director)

Biscuits Tiger, Britannia,

Products
milk

Revenue ▲ Rs 2,200 crore

Danone, Kalabakan
Owner(s)
Investments

Parent Wadia Group,

 Associated Biscuits Intl.
Holdings

Website www.britannia.co.in

Britannia Industries
From Wikipedia, the free encyclopedia
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Britannia Industries Limited

Public
Type (BSE: 500825)
(NSE: BRITANNIA)

Industry Food

Founded 1892

Kolkata and Bangalore; R&D

Headquarters
Chennai, India

Number of
300 stores (2000)
locations

Area served India

Key people Nusli Wadia, Chairman

 Ms. Vinita Bali, (Managing Director)

Biscuits Tiger, Britannia,

Products
milk

Revenue ▲ Rs 2,200 crore

Danone, Kalabakan
Owner(s)
Investments

Wadia Group,
Parent Associated Biscuits Intl.
Holdings

Website www.britannia.co.in

Britannia Industries Limited is an Indian company based in Kolkata that is famous for its
Britannia and Tiger brands of biscuit, which are highly recognised throughout the country.
Britannia is one of India’s leading biscuit firms, with an estimated 38% market share.[1]
The Company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and
dairy products.
The Britannia's fame is largely acknowledged through the colourful Britannia logos that Indian
cricketers such as Virender Sehwag and Rahul Dravid wear on their bats.

Contents
[hide]
• 1 History
• 2 Growth and profitability
• 3 Business
○ 3.1 Dairy products
 3.1.1 Joint venture with New Zealand Dairy
○ 3.2 Biscuits
• 4 Ownership and relationship between major shareholders
• 5 See also
• 6 References
• 7 External links
[edit] History
It was started way back in 1892 with an investment of Rs. 295.[2] Initially, biscuits were
manufactured in a small house in central Kolkata. Later, the business was acquired by the Gupta
brothers and operated under the name of V.S. Brothers. In 1918, C H Holmes, an English
businessman in Kolkata was taken as a partner and The Britannia Biscuit Company Limited
(BBCo) was launched. The Mumbai factory was setup in 1924 and Peek Freans, UK acquired a
controlling interest in BBCo. Biscuits were in big demand during World War II, which gave a
fillip to the company’s sales. The company name was changed to the current Britannia Industries
Limited in 1979. In 1982 Nabisco Brands Inc., USA became a major foreign shareholder
Kerala businessman K. Rajan Pillai secured control of the group in the late 1980s, becoming
known in India as the 'Biscuit King'. In 1993, the Wadia Group acquired a stake in ABIL, UK
and became an equal partner with Groupe Danone in Britannia Industries Limited. In what The
Economic Times referred to as one of [India's] most dramatic corporate sagas,[3] Pillai ceded
control to Wadia and Danone after a bitter boardroom struggle,[4] then fled his Singapore base to
India in 1995 after accusations of defrauding Britannia, and died the same year in Tihar Jail.[5]
[edit] Growth and profitability
The company is a growing and profitable one. Between 1998 and 2001, the company's sales
grew at a compound annual rate of 16 per cent against the market, and operating profits reached
18 per cent. More recently, the company has been growing at 27 per cent a year, compared to the
industry's growth rate of 20 per cent. At present, 90 per cent of Britannia’s annual revenue of
Rs2,200 crore comes from biscuits.
[edit] Business
[edit] Dairy products
Dairy products contribute close to 10 per cent to Britannia's revenue.[6] Britannia trades and
markets dairy products, and its dairy portfolio grew at 47% in 2000-01 and by 30% in 2001-02.
Britannia holds an equity stake in Dynamix Dairy and had outsourced the bulk of its dairy
products from its associate. Its main competitors are Nestle India, and the National Dairy
Development Board (NDDB),and amul(GCMMF)[7]
[edit] Joint venture with New Zealand Dairy
On 27 October 2001, Britannia announced a joint venture with Fonterra Co-operative Group of
New Zealand, an integrated dairy company from procurement of milk to making value-added
products such as cheese and buttermilk.[7] Britannia planned to source most of the products from
New Zealand, which they would market in India.[6] The joint venture will allow technology
transfer to Britannia.[7] Britannia and New Zealand Dairy each holding 49% of the JV, and the
remaining 2 per cent held by a strategic investor. Britannia has also tentatively announced that its
dairy business would be transferred and run by the joint venture.[7]
The authorities' approval to the joint venture obliged the company to start manufacturing
facilities of its own. It would not be allowed to trade, except at the wholesale level, thus pitching
it in competition with Danone, which had recently established its own dairy business.[7]
[edit] Biscuits
The company's factories have an annual capacity of 433,000 tonnes.[1] The brand names of
biscuits include VitaMarieGold, Tiger, Nutrichoice Junior,Good Day, 50 50, Treat, Pure Magic,
Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice and many more.
Tiger, the mass market brand, realised $150.75 million in sales including exports to countries
including the U.S. and Australia, or 20% of Britannia revenues in 2006.
The company alleged that Danone has violated its intellectual property rights in the Tiger brand
by registering and using Tiger in several countries in 2006 without the consent of the Britannia
Board. Managing Director Vinita Bali claims the company found out in 2004 Danone launched
the Tiger brand in Indonesia in 1998, and later in Malaysia, Singapore, Pakistan and Egypt when
it attempted to register the Tiger trademark in some of these countries.[8] Whilst it was initially
reported in December 2006 that agreement had been reached,[9] it was reported in September
2007 that a solution remained elusive.[8] In the meantime since Danone's biscuit business has
been taken over by Kraft, the Tiger brand of biscuits in Malaysia has been renamed Kraft TiGER
Biscuits beginning September 2008.
Britannia initiated legal action against Danone in Singapore in September 2007.[10]
The dispute has been resolved with Denone paying Rs 220 Million for utilizing the brand, and
Britannia securing legitimate right to use the Tiger brand worldwide[11]
[edit] Ownership and relationship between major
shareholders
The Wadias' Kalabakan Investments and Groupe Danone have two equal joint venture
companies, Wadia BSN and UK registered Associated Biscuits International Holdings Ltd.,
which together hold 51 per cent stake in Britannia.[12] The ABIH tranche was acquired in 1992,
while the controlling stake held by Wadia BSN was acquired in 1995. It was agreed that, in case
of a deadlock between the partners, Danone is obliged to buy the Wadia BSN stake at a "fair
market value". ABIH which has a separate agreement signed in 1992 and is subject to the British
law.[12] [13]
Wadia was to be Danone's partner in the food and dairy business, and product launches from
Groupe Danone’s were expected but never materialised despite the JV being in existence for
over 11 years in India.[12] Under the 1995 joint venture agreement, Danone is prohibited from
launching food brands within India without the consent of the Wadias.[14] In addition, the partners
agreed there would be the right of first refusal to buy out the remaining partner in the event of
the other wishing to sell its holding.[15]
In May 2007, Nusli Wadia told the Ministry of Commerce and Industry that Danone invested in
a Bangalore-based bio nutrition company, Avesthagen, in October 2006 in violation of the
government's Press Note 1, 2005, which requires a foreign company to obtain the consent of its
Indian joint venture partner before pursuing an independent business in a similar area, including
joint ventures based purely on technical collaboration. Danone argued that Press Note 1 did not
apply to it as it did not have a formal technology transfer or trademark agreement with
Avesthagen, and that its 25 pct holding in Britannia was indirect.[16] Wadia also filed a case in the
Bombay High Court for a breach of a non-compete clause in that connection. The court ordered
Danone not to alienate, encumber or sell shares of Avestagen.[17]
In September 2007, the Foreign Investment Promotion Board of India rejected Danone's claims
that it does not need a non-compete waiver from the Wadias to enter into business in India alone.
[18]
In June 2006, Wadia claimed Danone had used the Tiger brand to launch biscuits in Bangalore.
[15]

After a prolonged legal battle, Danone has finally agreed to sell its stake in Britannia and get out
of this line of business. Danone will sell its 25.48% stake to Leila Lands, which is a Wadia group
entity based in Mauritius. The deal is valued to be at $175–200 m. With this buy-out, Wadia's
will hold a majority stake of 50.96%.[19]