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Britannia

Britannia Industries began in 1892 as a small biscuit maker in Kolkata, India with an initial investment of Rs 295. During World War II, it supplied biscuits to British soldiers. Britannia has since grown to a Rs 4,000-crore leader in India's Rs 12,400-crore biscuits market. In the late 1990s, Nusli Wadia took control of Britannia with help from Danone, and later bought out Danone's stake. Currently led by Managing Director Vinita Bali, Britannia earns over Rs 4,000 crore annually and has expanded beyond biscuits into bread, dairy, and other products

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109 views3 pages

Britannia

Britannia Industries began in 1892 as a small biscuit maker in Kolkata, India with an initial investment of Rs 295. During World War II, it supplied biscuits to British soldiers. Britannia has since grown to a Rs 4,000-crore leader in India's Rs 12,400-crore biscuits market. In the late 1990s, Nusli Wadia took control of Britannia with help from Danone, and later bought out Danone's stake. Currently led by Managing Director Vinita Bali, Britannia earns over Rs 4,000 crore annually and has expanded beyond biscuits into bread, dairy, and other products

Uploaded by

Kezha Lhousa
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© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Not by bread alone

Britannia has risen from a Rs 295 start-up to a Rs 4,000-cr leader


K.R. Balasubramanyam Edition: July 10, 2011 Business Today

Share3 STORY TOOLS Change font size Print this story E-Mail this story Comment RELATED India's 100-yr-old firms still young

During World War II, the government of British India needed a supply of specially made biscuits for its soldiers. The Britannia Biscuit Company rose to the challenge. The deal ran into several years, and the company sometimes devoted 95 per cent of its capacity to produce biscuits for the armed forces. Today, the biscuit maker, rechristened Britannia Industries in 1979, partners with the United Nations World Food Programme, supplying biscuits worldwide, especially during emergencies. Many are customised to fulfil specific nutrient requirements. Britannia, today a leading player in the Rs 12,400-crore biscuits market, started out in 1892 as a tiny operation in a modest house in Calcutta (now Kolkata), with an initial investment of Rs 295. Five years later, it was acquired by two brothers about whom little information is available besides their name: Gupta. The Guptas moved operations to Dum Dum, continuing them under the name V.S. Brothers. The company was incorporated as the Britannia Biscuit Company in 1918, after English businessman C.H. Holmes teamed up with the Guptas. It became the first biscuit maker in India to mechanise production, and the first one east of the Suez Canal to use gas ovens, which it imported in 1921. In 1924, Britannia became a subsidiary of Peek, Frean & Co., a leading British biscuit maker. It was a public issue in 1978 that firmly established the company as Indian, as its

Indian shareholding crossed 60 per cent. The company went through its most acrimonious phase in the mid-1990s. A saga with many twists played out, ending with Nusli Wadia, owner of the Bombay Dyeing empire, teaming up with French food giant Danone, to wrest control from the Britannia chairman, the late Rajan Pillai. The relationship between Wadia and Danone remained uneasy. For instance, the Wadia Group claimed in 2007 that Danone had registered the Tiger brand in other countries without its consent. Wadia also stalled Danone's attempt to set up an independent business venture in India. The French company exited two years ago, after selling its holding to Wadia. Britannia, whose product range spans biscuits, bread, dairy, cakes, and cereals, earned revenues of Rs 4,213 crore and a profit of Rs 145 crore in the last financial year. Managing director Vinita Bali told analysts in February that "the opportunity is large, and Britannia is well-positioned to exploit it''.

Nusli Wadia

Established in 1892 1892: A biscuit-making operation begins in a small house in Calcutta with an investment of Rs 295 1897: The business is acquired by Gupta brothers 1918: Englishman C.H. Holmes partners with Gupta brothers, and Britannia is incorporated 1921: Britannia becomes the fi rst company east of the Suez to use gas ovens II 1983: Sales cross Rs 100 crore 1993: Nusli Wadia of Bombay Dyeing takes control from Britannia Chairman Rajan Pillai, with the help of French food giant Danone 2009: Wadia buys out Danone and emerges the largest shareholder 1939-45: Britannia supplies biscuits to soldiers during World War

The cookie rumbles: Vinita Bali

28 Nov 2010 Business today In the past five years, Vinita Bali has more than doubled revenues at Britannia Industries, the Bangalore-based biscuits-tobreads company, from Rs 1,500 crore to Rs 3,800 crore. The firm's nascent dairy business has quadrupled in size and she has also doubled the bakery business through a series of acquisitions, product innovations and aggressive marketing.
Biggest achievement in 2010: Creation of Britannia Nutrition Foundation Being a powerful woman is important because: You can be impactful within and outside business. Impact, rather than power, is key Tip for work-life balance: Have fun at work, don't let it become a burden on you A workplace without women is like: A sky without stars

This growth hasn't come easy. Bali has had to deal with rising commodity prices and increasingly aggressive competition, especially from Parle Products, which has held a sizeable lead in glucose biscuits, and reportedly is in first place in the overall biscuits market, too. More than market share, however, Bali's focus is now on improving profitability. However, it isn't just business that has held Bali's attention recently. Rather, it is the formation of the Britannia Nutrition Foundation, which supports research and development of nutrition in different food categories.

Britannia has internally been fortifying its biscuits with additional nutrients, but Bali believes that this movement can be more widespread. "People used to go on asking us what our CSR plans were," says Bali, adding, "We have no skill in building a school, but we do know about food." -Rahul Sachitanand

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