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Industry overview Britannia industry Value chain Strategy formulation process Product and Process design Plant location Supply chain Inventory Forecasting Conclusion Reference

Size of the Industry The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive power of 25 K.W. Geographical distribution Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Output per annum Biscuit industry contribute Rs 8,000 crore to the FMCG industry today provides vast opportunity Percentage in World Market Indian subcontinent is known to be the second largest manufacturer of biscuits, the first being USA.

Industry Overview
Biscuit industry comes under the fast clock speed category. The total production of biscuits in India is estimated to be around 30 lakh MT, the organized sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume. The organized sector is valued at above Rs 8000 crores. The biscuit industry is estimated to grow over 15-17% in the next few years. The per capita consumption of biscuits in India is 2.0 kg. India is ranked 3rd after US and China amongst the global biscuits producers. The penetration of biscuits in urban and rural market is 85% and 55% respectively. The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people indirectly

Market Share Breakdown

The Indian biscuit industry is dominated by brands like Parle, Britannia and Sunfeast.

Britannia Industries

In 1892 to be precise, a biscuit company was started in a nondescript house in Kolkata with an initial investment of Rs. 295, the company we all know as Britannia today. Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country In 2002 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. Britannia will continue to dream big on its path of innovation and quality and millions of consumers will savour the results, happily ever after.

Among the top 10 brands in this country for the last 10 Years. No 1 food brand

1892- The Genesis - Britannia established with an investment of Rs. 295 in Kolkata. 1921-Imported machinery introduced; Britannia becomes the first company East of the Suez to use gas oven. 1975-Britannia Biscuit Company takes over biscuit distribution from Parry's 1979- Re-christened Britannia Industries Ltd. (BIL) 1983- Sales cross Rs.100 crore 1989- The Executive Office relocated to Bangalore 1997- Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to new mission: 'Make every third Indian a Britannia consumer BIL enters the dairy products market

2000 -Forbes Global Ranking - Britannia among Top 300 small companies . 2001- BIL ranked one of India's biggest brands No.1 food brand of the country Britannia Lagaan Match: India's most successful promotional activity of the year Maska Chaska: India's most successful FMCG launch.

Any Time, Any Where and on-thego consumption

Delight that is affordable to all

Combining Health and Taste


Food as entertainment: Delighting through morphingBiscuit

Biscuit ?

Salty Snack?

And our brands are where people are

College canteen Corporate Canteen

Railway Station

Increasing relevance and footprint of Britannia


Value chain
Customer layer Operation support layer

Core operation layer

Layer of innovation

Supplier layer

Customer layer- Customers, retailer.
Operation support layer- Planning, Quality, Material. Core operation layer -Testing , machinery. Layer of innovation -Strategy formulation. Supplier layer -Suppliers.


Diabetes friendly
5 Grain Cracker

Strategic Formulation Process

Competitive dynamic at market place

Order winners & order qualifiers

Strategic options for sustaining competitive

Generic competitive priorities

Firms level strength and weakness

Corporate strategy

Strategic decision for operation system

Operational strategy

Measures for operational excellence

Strengths Provides good quality of biscuits Variable products range Excellent supply of products whenever required Widely accepted in all generations WeaknessQuantity of biscuits is less compare to its competitors, as they concentrate more on quality. Similar kind of Britannia product available in the market made by its competitors

Opportunity Changing demographics (young, higher disposable income, experimental, urbanization, willingness to spend) Greater awareness of health and nutrition. Threats Competition from existing players. New consumption moments, new consumers, new needs and desires


Product Design
Idea development Screening of ideas Design testing Final design Design for manufacturing & assembly - Standardization

Process Design

Repetitive Process - Line Process Steps of manufacturing process: i. Mixing ii. Forming iii. Baking iv. Cooling v. Packaging

Manufacturing Process
Receiving Raw material GMS paste Lecithin blend Flavor 27699 Flavor BS Flavor PMN HVO / palm oil Flour Ammonia M. sugar Soda Sugar Soda Ammonia Water Dust Dough mixers Sugar Sol. tank Processing

Invert sugar storage tank 1 Invert syrup storage tank 2 HVO service tank 1


Invert sugar syrup sol. prep. tank

Sugar sol. prep. tank

Palm oil Tanks 1

Palm oil service tank 1 Palm oil service tank 2 Feed cell for flour Feed cell for sugar

Flour Shifter 4 5 6

Sugar grinder

Cashew Sprinkler Dough crusher Metal detector Distributor web Moulder web

Return Scrap conveyoror Rotary Cutting web Panner web

Inclined Web

BAKING SECTION Zone 7 180 Celsius T- 50%, 50% S- 100%, OP Zone 6 240 Celsius T- 50%, 50% S- 100%, OP Zone 5 265 Celsius T- 50%, 50% S- 100% Zone 4 285 Celsius T- 50%, 50% S- 100% Zone 3 265 Celsius T- 50%, 50% S- 100%, OP Zone 2 240 Celsius T- 50%, 50% S- 100%, OP Zone 1 215 celsius T- 50%, 50% S- 100%, OP



Metal Detector


Stacker Inclined Shoot

Wrapper Seeding machine

Carton Packing machine


Storage & Forwarding

Manufacturing operations
Constant focus on manufacturing operations to deliver quality products consistently coupled with intensive research and development has catapulted Britannia into an enviable position in the market. Concentration on cost minimization. Uttarakhand factory continues to deliver a significant share of production and with investment in automation and mechanization, will continue to drive efficiencies.

Ferrari is a high speed flow wrap auto feeder packaging machine for a dedicated Good Day line Product variety: (a) PP (90g) (b) FP (180g) Stack length: 92 1mm (92mm avg. with 0.3 standard deviation) Production: 60 tonnes/day (Average) Product arrival: in 24 lines from oven

Ferrari (High speed auto feeder packaging machine) has various advantages over the Standard Horizontal flow wrap (HRW) - manual loading of product.
Standard Machine Family Pack PP Pack 45-50 PPM 100 PPM Ferrari Machine 120 PPM 150 PPM

Machine speed is considerably better. Reduction of man power and saving of electric power (up to 50%). Higher productivity and efficiency. Lesser product wastage and rejection. Hygienic product handling.


Plant location
Mumbai Chennai Kolkata Uttarakhand Delhi

Factors that affect location

UDYOG MITRA Land Bank Hydro Power Resource Good Quality of Life Availability of raw material Availability of skilled and cheap labour

Source-According to Uttarakhand plant location


Supply Chain

Distribution Channel

Consumer Connect

Quality Standards
Britannia strives to excel in quality standards, not only with respect to the products and packs it sells but also in its operations by establishing stringent quality systems and processes at critical points of the supply chain. Several innovative technology projects for achieving cost and quality advantages have been implemented. This helps in producing new products

Quality processes in various facets of the supply chain :

Daily quality measurements Food Safety Certifications in the form of ISO 22000 Quality audits Vendor quality improvement programmes Regulatory processes Training


Types of inventories: Raw materials Materials in process Finished goods

Inventory Turnover Ratio

Cost of Good Sold Investment in inventory

RATIO Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10

Inventory turnover ratio 11.79 12.88 9.98 14.54 15.06


Why is Forecasting Needed?

Sales forecasting is an important activity in Britannia sales process ,because Britannia deals with biscuits and cake products whose sales depend greatly on the taste preferences of the people. Moreover Britannia targets the urban market which is highly competitive and very dynamic in terms of different products brand and various price ranges. So Britannica periodically(3-6 months)reviews the sales turnover of its new as well as established products brands by collecting the monthly sales data from the retailers during the regular visits.

Forecasting methods
Moving average method Causal method Top Down approach Surveys

The opportunity is large and Britannia is well positioned to exploit it. Biscuit continues to be the most affordable packaged food, registering robust growth. Investing in people, brands infrastructure will enhance overall capability & competitiveness Company wishes to introduce a new product category in the market. Enter into various areas of food like snacks and health drinks. Boost sales with aggressive brand building strategies. Enter family size pack. Look out for both organic and inorganic growth.

References Analyst Meet 21stFebruary 2011