Britannia Industry Ltd. Manvi Bindal 22BSP0907
Britannia Industry Ltd. Manvi Bindal 22BSP0907
Britannia Industry Ltd. Manvi Bindal 22BSP0907
Current assets fell 10% and stood at Rs 40 billion, while fixed assets fell 2% and stood at Rs 35 billion in FY22.
Overall, the total assets and liabilities for FY22 stood at Rs 75 billion against Rs 80 billion during FY21, thereby witnessing
a fall of 7%.
SUMMARY
1. The net profit of BRITANNIA stood at Rs 15,162 m in FY22, which was down -18.0% compared to Rs 18,498 m
reported in FY21.This compares to a net profit of Rs 13,932 m in FY20 and a net profit of Rs 11,564 m in FY19. Over
the past 5 years, BRITANNIA’s net profit has grown at a CAGR of 10.9.
2. The revenues of BRITANNIA stood at Rs 143,591 m in FY22, which was up 6.8% compared to Rs 134,490 m
reported in FY21.BRITANNIA's revenue has grown from Rs 100,043 m in FY18 to Rs 143,591 m in FY22. Over the
past 5 years, the revenue of BRITANNIA has grown at a CAGR of 9.5%.
DIRECTOR’S REPORT
1. FINANCIAL PERFORMANCE
D. IT Revolution: DIGITAL PROJECTS LIKE: S4 HANA, ARTERIA & ARIBA helped to achieve efficiencies and enable growth.
E. Subsidiaries and Associates: Financial performance of each of them included in the consolidated financial statements is
provided in the form AOC-1 and forms part of the annual report.
F. Dividend: Directors recommended a final dividend of 5650% which is ₹56.50 per equity share and of the face value of ₹1 each for
the financial year 2021-2022 & total dividend payment amounts to ₹ 1,360.91 Crores.
G. Reserves: Company didn’t propose any amount to transfer to reserves for FY 2021-2022.
H. Share capital: No change in paid-up share capital of the company (during the year under review).
I. Material changes affecting the company: No material changes and commitment affecting the financial position of the company.
2. OPERATIONAL PERFORMANCE
The Britannia's promise to deliver 'Exciting Goodness' has been reimagined with sustainability at its core. The company has a state-of-
the-art R&D center enabling the development of innovative, high-quality & consumer-centric products like the launch of POTAZO &
GOLMAAL. The company aims to positively address climate change by minimizing its environmental footprint. The use of
renewable energy from wind and solar power has increased by more than 10% over the previous year, reduction in water consumption
by over 27% & reduced the consumption of laminates by 8.3%
With the objective of the 'Zero accident Goal' achieved the target of a 10% reduction in TRAFR as compared to the previous year. The
company also implemented VQAP across supply chains to integrate, monitor & control quality at all stages. Its focus has been going
on product quality and safety for more than 100 years.
All existing manufacturing units are ISO – 22000, HACCP certified & operate in compliance with stringent food safety & quality
standards. The company's "Consumer Care Cell" continues to be compliant with the 'GLOBAL STANDARDS ON QUALITY
MANAGEMENT FOR COMPLISH IN ORGANIZATION. Using Nutraceuticals, making a difference by providing Iron & folic
Acid fortified biscuits.
3. DIRECTORS
Dr. Urjit Patel, Non-Executive and Independent Director of the Company resigned. N Venkataraman was appointed as
Executive Director and Chief Financial Officer. Mr. Ness Wadia and Mr. Keki were appointed Independent Directors by
the shareholders. Board is of the opinion that the company's internal financial controls were adequate and operationally
effective during the financial year 2021-22.
4. CORPORATE SOCIAL RESPONSIBILITY
Pursuant to the provisions of Section 135 of the Companies Act, 2013 read with the Companies (Corporate Social
Responsibility Policy) Rules, 2014, Company has undertaken projects in accordance with the CSR Policy.
5. EMPLOYEES
Details of the remuneration of Directors, KMPs, and Employees as required under the Companies Act, 2013 read with
Rule 5 (Appointment and Remuneration. of Managerial Personnel Rules) 2014. The Board of Directors at their meeting
held on 30 July 2021 approved the termination of Britannia Industries Limited Employee Stock Option Scheme (ESOS)
6. AUDITORY
The Members of the Company at the 101st AGM held on 7 July 2020, appointed M/s. Walker & Co, LLP, Chartered
Accountants as Statutory Auditors. Internal Auditors Ernst and Young, LLP have carried out an Internal Audit for the
financial year 2021-22.
DAIRY BUSINESS
India is ranked No.1 in milk production and currently contributes ~23% of global milk production. The organized dairy
segment, which constitutes about 26%-30% of the Indian dairy industry (by value) has seen faster growth compared to the
unorganized segment.
BUSINESS STRATEGY
Continue to build a strategy to win in ‘Many India’s: As part of this strategy, your Company continued its march in Hindi-
speaking states with MILK BIKIS Atta. The proposition of ‘DOODH ROTI KI SHAKTI’ resonates with this part of the
country where consumers have grown up with these foods.
Renovate to Strengthen the Core: In its continuous endeavor to provide excitement and goodness, your
Company renovated its largest biscuit brand Good Day with the introduction of different smiles on the product.
Every pack of Britannia Good Day now comes with not just one, but four different smiles packed into it.
Engineer upgrades and tap into consumers moving up the economic ladder: Your Company continued to nourish its long-
term strategy of driving upgrades through launches such as Good Day Harmony and MILK BIKIS Classic aimed at
upgrading consumers of these brands to more premium offerings.
DAIRY BUSINESS
Product & Innovation - Your Company’s strategy is to continue its focus on the core brands as well as build a portfolio to
cater to various palates and taste preferences. As part of this strategy, your Company emphasized the relevance of
‘Britannia Cheese’ in meeting the need for ‘Good Quality Protein’ and created a fun and youthful imagery for the
‘WINKIN COW’ Brand.
Dairy Backend Capabilities - Your Company has invested in a state-of-the-art manufacturing facility at RANJANGAON,
which is fully compliant with global standards. It has the infrastructure to function as a multi-category dairy plant with
capabilities ranging from yogurt, ghee, cheddar, processed cheese, skimmed milk powder, etc. Milk collection has also
been scaled- up to 65,000 liters per day from 2,450 farmers.
Growth through Channel Mix - Scaling up availability is key to meeting the business goals and your Company has
improved distribution of Cheese and WINKIN’ Cow across traditional channels while developing E-commerce as a pivotal
part of its distribution strategy. Your Company is also evaluating partnerships with Quick Service Restaurants (QSRs) and
restaurants in the coming year.
SEGMENT INFORMATION
The primary business segment of your Company is Foods.
OUTLOOK
The economy was beset by a multitude of challenges all through the year. With humanity beginning to come to terms with
recurring waves of the Covid-19 pandemic and the progressive re-opening of economies, there were noticeable signs of
recovery. However, the severe and sustained inflation in commodities, especially edible oils, due to supply disruptions and
export restrictions in producer nations, impacted the economy and food companies severely.
ADJACENT BUSINESS
Cream Wafers
Cream Wafers are one of the fastest growing categories. The consumer acceptance of Treat Crème Wafers accompanied
by the recent launch of Treat Stix has encouraged your Company to innovate and launch differentiated products in the
market.
Salted Snacks
This is one of the important categories for your Company’s vision to become a ‘Global Total Foods Company’. Your
Company intends to strengthen its brand “Time Pass” to achieve a significant position in this category through the launch
of differentiated products at competitive prices.
.
OPPORTUNITIES AND THREATS
BAKERY BUSINESS
Biscuit
Due to high levels of household penetration in the biscuits category, the potential for growth is immense. The per capita
consumption of biscuits in India continues to lag behind the levels seen in developed countries. The possibilities for
increasing consumption through innovative, healthy, and superior offerings in this category are numerous, which augurs
well for your Company in view of the established brands and capabilities.
Cake
This category offers various opportunities for the launch of innovative products at different price points and expansion in
rural markets. The primary threat in this category is inflation in commodity prices and the emergence of disruptive formats
at entry-level price points.
INTERNAL CONTROL SYSTEMS AND ADEQUACY
Your Company’s Internal Control Systems are commensurate with the nature, size, and complexity of its business.
The Directors have laid down internal financial controls to be followed by your Company and such policies and procedures
have been adopted for ensuring the orderly and efficient conduct of business, including adherence to the Company’s
policies, safeguarding of assets, prevention and detection of frauds, and errors, accuracy, and completeness of accounting
records and timely preparation of reliable financial information.
CAUTIONARY STATEMENT
Statements in this Management Discussion and Analysis describing the Company’s objectives, expectations, or predictions
may be forward-looking within the meaning of applicable laws and regulations. Actual results could differ materially from
those expressed or implied. Important factors that could make a difference to your Company’s operations include raw
material availability and prices, cyclical demand and pricing in the Company’s principal markets, competitive actions,
disruptions caused by pandemic and natural calamities, changes in government regulations, tax regimes, economic
developments in India and in countries in which the Company conducts business and other incidental factors.
CORPORATE GOVERNANCE REPORT
The company considers good Corporate Governance a pre-requisite for meeting the needs and aspirations of its stakeholders and
firmly believes that the same could be achieved by maintaining transparency in its dealings, creating robust policies and practices,
effective processes, and systems with clear accountability, integrity, transparency governance practices and the highest standards of
governance.
BOARD OF DIRECTORS
The Board has an optimum mix of Executive, Non-Executive and Independent Directors and is headed by a Non-Executive Chairman,
Mr. Nusli N Wadia. The Board of the Company is diverse in terms of qualification, competence, skills, and expertise which enables it
to ensure long-term value creation for all the stakeholders.
COMMITTEES
The Board Committee is the pillar of the governance structure of the Company. The Board Committees are formed as a means of
improving board effectiveness and efficiency in areas where more focused, specialized, and technically oriented discussions are
required. These committees prepare the groundwork for decision-making and enhance the objectivity and independence of the Board’s
judgment. The Members constituting the Committees are the majority.
Independent Directors and each Committee is guided by its Charter or Terms of Reference, which outlines the composition, scope,
roles & responsibilities of the Committees. The Chairperson of the Committees apprises the Board about the executive summary of the
discussions held and decisions arrived at the Committee Meetings.
Expertise in developing and implementing strategies for growth in consumer and FMCG industries. Ability to assess strengths and
weaknesses of the Company and devise strategies to gain a competitive advantage. Deep understanding of complex business
processes, regulatory and governance environment, risk management, and ability to visualize and manage change.
REMUNERATION OF DIRECTORS
The Company has adopted the Remuneration Policy for Directors, Key Managerial Personnel, and other employees as required under
Section 178 of the Companies Act, 2013 and Regulation 19 read with Part D of Schedule II of SEBI Listing Regulations, 2015. The
salient features of the Remuneration Policy are as follows:
• To evaluate the performance of the members of the Board and provide a necessary report to the Board for further evaluation of the
Board.
• To recommend to the Board on Remuneration payable to the Directors, Key Managerial Personnel, and Senior Management.
• To provide to Key Managerial Personnel and Senior Management reward linked directly to their effort, performance,
dedication, and achievement relating to the Company’s operations.
• To retain, motivate and promote talent and ensure the long-term sustainability of talented managerial persons and create competitive
advantage.
WINNERS AND ACCOLADES