Britannia Industries Share Price

Britannia Industries is a significant food company in India, with a 100-year history and yearly revenues of over INR 9000 Cr. Britannia is one of India's most trusted food companies, producing popular products such as Good Day, Tiger, NutriChoice, Milk Biscuits, and Marie Gold. Britannia's product line includes Biscuits, Bread, Cakes, Rusk, and Dairy items such as Cheese, Beverages, Milk, and Yoghurt.

Britannia Bread is the leading brand in the organized bread market, with an annual volume turnover of over 1 lac tonnes and a value turnover of INR 450 crores. The company has 13 plants and 4 franchisees.

History                      

Britannia Industry was established in 1892 by a group of British businesspeople with an INR 295 investment. Biscuits were first made in a modest cottage in central Kolkata. The company was established as a public limited company on 21st March 1918.

Britannia was the first enterprise east of the Suez Canal to use imported gas ovens in 1921. Britannia's business was doing well. However, Britannia was gaining a reputation for quality and value. As a result, during the disastrous World War II, the government put its faith in Britannia by contracting it to deliver large amounts of "service biscuits" to the armed forces.

In the year 1924, a new factory was constructed in Mumbai. In the same year, the company became a subsidiary of Peek Frean & Company Limited UK, a prominent biscuit-making company, and expanded its factories in Calcutta and Mumbai.

Mumbai and Kolkata welcomed a factory from Dum Dum to larger grounds on Taratola Road on the city's outskirts in 1954. Automatic plants were installed in Calcutta the same year.

The year 1954 also saw automatic plants being placed in the Mumbai facility. The business launched the creation of high-quality sliced and wrapped bread in India, which was first manufactured in Delhi. In the year 1965, a new bread bakery was established in Delhi.

In 1975, Britannia Biscuit Company took over biscuit distribution from Parry's. Further, in the year1976, the company launched Britannia bread in Calcutta and Chennai. 1978 was the year when the company became public, and Indian shareholding surpassed 60%. The redefinition of the company from Britannia Biscuit Company Limited to Britannia Industries Limited took place in 1979. 

Products of Britannia

Britannia Product focuses on bringing more productive items to market and rapidly increasing the market. It began in 1892. It has a history of almost 120 years, and its business has expanded greatly by focusing on larger margins and addressing consumer needs by providing superior quality items. Their brand name, which includes features, quality, pricing, design, and so on, would aid them in rapid sales growth, retaining frequent customers, and picking their product in the market.

Britannia products are mainly divided into four sectors: the biscuit sector, Gift sector, Dairy products  Bread, cake and rusk sector.

Biscuit Sector

Britannia Biscuits is well-known worldwide for its delicious taste, which is available at a reasonable and inexpensive price. Many millions of people enjoy eating biscuits, healthy snacks that can be found in stores anytime and anywhere.

Britannia Biscuits is further classified as follows:

• Nutrition for Children
• Luxury or treat
• Snacking
• Adult Wellness

Dairy products

Britannia Dairy Products is well-known worldwide for its delicious taste, which is available at a reasonable and affordable price. Millions of people enjoy eating butter, ghee, milk, cheese, Dahi, health drink, choco milk, and badam milk, which are available in stores at any time, anyplace, and on any day. Britannia Dairy Products are further classed as follows:

• Cheese
• Dahi
• Gourmet Cheddar
• Ghee
• Butter
• Milk
• Whitener for Dairy
• Actimind
• TigerZor Badam Milk and TigerZor Choco Milk

Bread and Rusk industries

Bread and rusk, which are ingested by adults, children, and people of all ages, include critical nutrients and vitamins, Honey & Oats, Multi-Grain, Whole Wheat, and Multi-Fiber.

Britannia offers a wide choice of such Bread and toasted Rusk, allowing consumers to select from these items and experience the benefits associated with the Bread and Rusk sectors.

• British Bread
• Toasted Rusk Britannia

Corporate Social Responsibility Information

According to Section 135 of the Companies Act of 2013, Britannia Industries Ltd. must invest at least 2% of its average net profit over the previous three fiscal years in corporate social responsibility (CSR) initiatives if it meets the application level.

In the financial year 2019-20, Ness N Wadia's Britannia spent 2% of its three-year average net profit on CSR-related costs.

According to the annual report, CSR expense was INR 28.43 Crores, whereas the company's average net profit over the previous three fiscal years was INR 1,421.71 Crores for the year under review. The Britannia's CSR initiatives for the 2019–20 financial year were focused on combating poverty and malnutrition, advancing education, the arts and culture, health care, the rehabilitation of the poor, environmental sustainability, disaster relief, and rural development initiatives. These activities, listed in Schedule VII of the 2013 Companies Act, were carried out throughout the year, with the majority of the cash allotted to a corpus.

The company assists numerous organizations with their work in general semantics, education, health care, and rural development. Britannia's CSR projects and programs are started after determining which communities need development. According to the report, the company engages with stakeholders to ensure its initiatives are carried out successfully.

This year, the company gave the Sir Ness Wadia Foundation a CSR donation for it to carry out various activities and projects for preventive health care, such as reducing the COVID-19 pandemic's impact in India and promoting children's health, growth, and development in India, either directly or in collaboration with the Bai Jerbai Wadia Hospital for Children (BJWHC), Nowrosjee Wadia Maternity Hospital (NWMH), and Britannia Nutrition Foundation (BNF).

Financial Information

Top Line

Over the last 5 years, the audited financial statements show sales of INR 9304 crores in 2018, INR 10482 crores in 2019, INR 10986 crores in 2020, INR 12378 crores in 2021 and INR 13371 crores in the year ending 2022.
The company has a strong track record of return on equity (ROE):  in three years, ROE is 44.6%.
The company has kept a healthy dividend distribution of 119.06%.

Bottom Line

On the other hand, the net profit recorded was INR 948 crores in 2018, INR 1122 crores in 2019, INR 1484 crores in 2020, INR 1760 crores in 2021, and INR 1603 crores in 2022.
Stock is trading at 34.72 times its book value.
The company has delivered a poor sales growth of 9.71% over the past five years.