A

PROJECT REPORT
ON
“STUDY OF INVENTORY MANAGEMENT OF BRITANNIA
INDUSTRIES”

FOR
THE PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE DEGREE
OF
BACHELOR OF BUSINESS ADMINISTRATION (2024-2025)

SUBMITTED TO:
SUBMITTED BY:

MS. JYOTI JALAL

ANJALI GUPTA

Department Of Business Administration

Sardar Bhagat Singh govt. Post Graduate College
Rudrapur (U.S.Nagar)

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 TO WHOM SO EVER IT MAY CONCERN

This is to certify that this project work titled “study of inventory management of Britannia” submitted by
Anjali Gupta of BBA V Semester for partial fulfilment of award of the degree of the bachelor of business
administration was carried out by her under my guidance. She was sincere in putting efforts to present this
project report.

Ms. Jyoti Jalal

Designation ____________________
Department of business administration
S.B.S. GOVT. POST RADUATE COLLEGE
Rudrapur (U.S. Nagar)

II
 Student Declaration

I hereby declare that project report entitled “Study of Inventory Management of Britannia Company” is written and
submitted by me under the guidance of MS. JYOTI JALAL department of business administration, S.B.S. GOVT post
graduate college, Rudrapur (U.S. Nagar). the information incorporated in this project is true and original to the best of
my knowledge. This report is my original work and has not been copied from any other sources.

Anjali Gupta

BBA IV SEM

ROLL NO: 229006945

III
Company Certificate

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 ABSTRACT

This report presents a study of inventory management practices at Britannia Industries, conducted as part of a
summer internship program. Britannia, a leading player in the FMCG sector, relies on efficient inventory management
to ensure consistent product availability, minimize costs, and meet high consumer demand. The study explores the
key components of Britannia’s inventory management process, including demand forecasting, stock control, and
warehouse management.

Throughout the internship, data was gathered through hands-on observation, interactions with department heads,
and an examination of company records. The report highlights the use of inventory management software that
integrates demand forecasting and real-time stock tracking, enabling the company to streamline its supply chain.
Particular attention is given to strategies employed to prevent stockouts and overstock situations, both of which are
critical in managing perishable goods and reducing waste.

The findings indicate that Britannia's inventory management system is largely effective, though certain areas, such as
seasonal stock planning and supplier lead time management, present opportunities for improvement.
Recommendations for enhancing inventory accuracy, optimizing storage, and improving responsiveness to market
fluctuations are provided.

This internship experience emphasized the importance of effective inventory management in sustaining operational
efficiency and highlighted the role of advanced technology and strategic planning in optimizing inventory
performance in the FMCG sector.

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 ACKNOWLEDGEMENT

I take this opportunity to extend my gratitude to BRITANNIA INDUSTRIES for providing me an unbelievable practical
learning experience during the internship. It was unbelievable practical learning experience during the internship. It
was indeed to be a pleasure to be a part of such organization for 30 days.

First and foremost, I would like to thank MR. NAVNEET KUMAR, FINANCE MANAGER and special thanks to all other
faculties, who supported and helped me throughout the internship and for giving me nice industrial experience.

Secondly, I am no less grateful to other employees and members of the department for the kind co-operation and
spontaneous response.

Last but not the least, I express my gratitude towards my college faculty DR. B.S. RAJPUT (CO-ORDINATOR) as his
guidance is never forgettable and for sharing their knowledge, helping me and gave me inspiration to complete the
internship program successfully.

ANJALI GUPTA

B.B.A. VTH SEM

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 CONTENTS
Page no.
Chapter 1

1.1 Introduction……………………………………………………………………………………………… 1

1.2 Theoretical Background……………………………………………………………………………. 2 -4

Chapter 2

2.1 Industry profile…………………………………………………………………………………………. 5

2.2 Company profile…………………………………………………………………………………………. 6-8

Chapter 3

3.1 Objective of study……………………………………………………………………………………… 9

3.2 Period of study…………………………………………………………………………………………… 9

3.3 Research Methodology………………………………………………………………………………. 9

3.4 Scope of the study………………………………………………………………………………………. 10-18

Chapter 4

4.1 Data analysis & Interpretation……………………………………………………………………. 19

Chapter 5

5.1 Findings……………………………………………………………………………………………………. 20

5.2 Suggestions & Recommendations………………………………………………………………. 21

5.3 Limitation of study……………………………………………………………………………………. 22

5.4 Conclusion…………………………………………………………………………………………………. 23

Bibliography 24

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CHAPTER I
1.1 INTRODUCTION

Inventory management is a cornerstone of efficient operations in any manufacturing or fast-moving

consumer goods (FMCG) company. It encompasses the processes, practices, and policies that ensure the
timely availability of materials and products in the right quantities. Effective inventory management serves
to streamline production, reduce costs, and meet customer demand efficiently. For large-scale FMCG
companies such as Britannia Industries Limited, inventory management is not only about controlling costs
but also about achieving seamless coordination across complex supply chains, ultimately boosting overall
operational performance and market competitiveness.
Britannia Industries Limited, established over a century ago, has grown to become one of India’s most
trusted brands in the food and beverage industry. Known for its high-quality bakery and dairy products,
Britannia serves a diverse customer base, which demands constant innovation and reliability in product
availability. The company’s scale and reputation rely heavily on robust inventory management practices that
prevent stockouts and minimize excess inventory, both of which can adversely impact production costs and
customer satisfaction.
Inventory management involves a delicate balance between demand and supply. It requires careful
forecasting, real-time monitoring, and a dynamic approach to managing inventory levels. If inventory levels
are not managed effectively, companies may encounter two critical problems: excess inventory, which ties
up capital and increases holding costs, and inventory shortages, which disrupt production schedules and
reduce customer satisfaction. An optimal inventory management strategy, therefore, seeks to minimize
these risks by aligning supply with demand while maintaining cost efficiency.
Britannia’s Pantnagar Plant follows a structured approach to inventory management, which is segmented
into several key stages. The first stage, Material Inward, managed by the Store Department, focuses on
receiving and organizing raw materials. This is followed by a quality check on the raw materials to ensure
compliance with Britannia’s high standards. The production stage converts raw materials into finished
products, which then undergo a final quality check to guarantee they meet consumer expectations. The
final stage, Outbound Logistics, involves dispatching the finished goods from the Supply and Fulfilment
(S&F) Department to reach various distribution points. Each of these stages incorporates best practices in
inventory management to maintain cost efficiency, reduce waste, and ensure the timely and high-quality
delivery of products.

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1.2 THEORETICAL BACKGROUND
Effective inventory management is essential to the success of any manufacturing or FMCG (Fast-Moving
Consumer Goods) company, providing a strategic advantage by ensuring optimal production flows, reducing
costs, and enhancing customer satisfaction. This section delves into the theoretical principles that underpin
inventory management, covering key concepts, models, and techniques that form the foundation for the
practices examined in this report on Britannia Industries Limited. By understanding these theoretical
frameworks, we can better appreciate the strategies employed at Britannia’s Pantnagar Plant, where
inventory management practices contribute significantly to operational efficiency, cost savings, and
sustainable competitive advantage.

1.Inventory Management Fundamentals

Inventory management encompasses the processes and strategies used to control the ordering, storage,
and use of materials and products within an organization. For manufacturing companies, effective inventory
management balances two critical goals: minimizing inventory costs (holding costs, ordering costs, etc.) and
ensuring materials are available to meet production demands without interruption. For FMCG companies
like Britannia, which deals in perishable goods, inventory management is particularly challenging due to the
high turnover rates and demand variability.

2. Key Inventory Management Models

To achieve these objectives, companies rely on various inventory management models. Some of the key
theoretical models relevant to Britannia’s practices include:
Economic Order Quantity (EOQ) Model: EOQ is a fundamental model that calculates the optimal order
quantity to minimize the total costs of ordering and holding inventory. It is based on the premise that there
is a trade-off between the costs of ordering inventory and holding it. The EOQ formula aims to balance
these costs to determine the most cost-effective quantity of inventory to order.
Just-in-Time (JIT) Inventory System: JIT is a strategy designed to minimize inventory levels by ordering
materials to arrive just as they are needed in the production process. JIT reduces holding costs and waste,
which is beneficial for companies with high inventory turnover, like Britannia. However, it requires precise
forecasting and reliable suppliers to avoid production delays.
ABC Analysis: This inventory categorization method is based on the Pareto principle (80/20 rule) and divides
inventory into three categories (A, B, and C) according to value and importance. “A” items represent the
highest value but smallest quantity, whereas “C” items are lower in value but larger in quantity. By
prioritizing high-value items (Category A), companies can focus resources on managing the most impactful
inventory segments.
Safety Stock and Reorder Point Calculations: Safety stock refers to the extra inventory held to mitigate the
risk of stockouts due to demand variability or supply delays. The reorder point is the level at which new
orders should be placed to replenish inventory before it runs out. For Britannia, safety stock is critical to
prevent interruptions, especially in an FMCG setting where demand can fluctuate frequently.
Inventory Turnover Ratio: This metric measures how frequently inventory is used or sold over a given
period. A high inventory turnover ratio indicates efficient inventory management, with goods moving
quickly through the supply chain. For a perishable goods company like Britannia, a high turnover rate is
essential to minimize the holding of unsellable or spoiled stock.
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3. Forecasting and Demand Planning
Accurate demand forecasting is essential in FMCG companies, where production planning and inventory
management rely on anticipating consumer demand. Inventory forecasting models, such as time-series
analysis, regression analysis, and machine learning-based demand prediction, enable companies to
estimate future sales and adjust inventory accordingly. By leveraging demand forecasts, Britannia can align
its inventory levels with anticipated market demand, reducing the risk of both shortages and excess
inventory.

4. Lean Inventory Management and Waste Reduction

Lean inventory management is a philosophy that emphasizes waste reduction and process efficiency. In
inventory management, "lean" focuses on reducing non-value-added activities and minimizing excess
inventory, which can add to holding costs and risk of obsolescence. Lean inventory techniques include
process streamlining, quality checks, and continuous improvement practices. For Britannia, waste reduction
is particularly crucial given the perishable nature of many of its products.

5. Quality Control and Logistics

Quality control is another essential element in inventory management, particularly in FMCG. Quality control
processes help ensure that raw materials meet standards before they enter production, and that finished
goods maintain the expected quality before they reach consumers. In the case of Britannia, multiple quality
checks are performed during the stages of Material Inward, Production, and Finished Goods. Effective
quality management reduces the risk of wastage and aligns with the company’s commitment to delivering
high-quality products.
Logistics management also plays a significant role in inventory management by overseeing the movement,
storage, and distribution of goods. For companies like Britannia, efficient logistics ensures timely delivery,
cost control, and optimal inventory levels across distribution channels. Britannia’s outbound logistics
strategy aims to streamline the dispatch of finished goods from the plant to various distribution points,
reducing lead times and enhancing customer satisfaction.

6. Technology in Inventory Management

In recent years, advancements in technology have significantly impacted inventory management practices.
Automation, inventory tracking software, and real-time data analytics allow companies to manage
inventory levels with greater precision and responsiveness. For example, barcode scanning, RFID tags, and
cloud-based inventory management systems improve accuracy in tracking inventory across the supply
chain, while analytics tools help identify trends and optimize inventory levels. Britannia’s inventory
management is enhanced by these technological tools, allowing for better demand forecasting, waste
reduction, and inventory turnover.
By applying these inventory management theories and models, Britannia Industries not only achieves cost
control and waste reduction but also ensures it can meet demand reliably, thereby enhancing its
competitiveness in the FMCG sector. This theoretical background provides the foundation upon which the
practical analysis in this report is built, as it seeks to evaluate Britannia’s inventory management practices
and their impact on overall business performance.

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 The flowchart illustrates the journey of materials through various stages, emphasizing the integration of
inventory management practices at each point. It begins with Material Inward, where practices focus on
accurate inventory recording and compliance with stock management protocols during the receipt of
materials. The flowchart then transitions to the Quality phase, where inventory practices ensure that the
costs associated with quality inspections and control are effectively monitored and managed. Following
this, the materials move to Production, where inventory strategies are applied to control production costs,
optimize resource utilization, and ensure efficient operations. The next stage, Quality Check, involves
additional assessments to confirm that quality standards are met within the allocated inventory levels.
Finally, in the Outbound Logistics phase, inventory management practices are employed to manage and
optimize logistics processes, ensuring cost-effective distribution and timely delivery. This flowchart visually
represents the seamless integration of inventory management practices throughout the supply chain, from
material receipt to final distribution, enhancing overall operational efficiency and control.

Material Quality
Quality Outbound
Inward check
Check (Raw Production logistics (s&f
(Store (finished
Material) department)
Department) goods)

Flowchart describing the flow of operation in Britannia, pantnagar plant

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5
CHAPTER II

2.2 About the Sector: Basic Overview of the FMCG Industry

The Fast-Moving Consumer Goods (FMCG) or Consumer Packaged Goods (CPG) sector is the fourth-largest in the
Indian economy. The FMCG market size in India grew significantly, from an estimated US$ 30 billion in 2011 to
approximately US$ 74 billion by 2018. Within this market, food products are the largest segment, making up 43% of
the total. This is followed by personal care products at 22% and fabric care products at 12%. Key growth factors in the
sector include increasing consumer awareness, easier accessibility, and evolving lifestyles.

Growth in Rural Markets

Rural areas are expected to be a primary growth driver for FMCG, as growth in these regions continues to be
substantial. For instance, rural markets experienced a 16% growth rate compared to 12% in urban markets.
Recognizing this opportunity, many companies have expanded their distribution networks and enhanced
infrastructure in rural regions. Additionally, businesses are creating products tailored specifically for rural consumers.
The Government of India supports this growth through initiatives like increased Minimum Support Prices (MSPs),
loan waivers, and schemes such as the National Rural Employment Guarantee Act (NREGA). These efforts have
reduced poverty and increased purchasing power in rural India, boosting demand for FMCG products as incomes and
brand awareness rise.

Trends in Urban Markets

In urban areas, rising disposable incomes have led middle- and high-income consumers to shift from basic necessities
to premium products. Companies have responded by expanding their portfolios to include more premium options.
Both Indian and international FMCG companies are positioning India as a key manufacturing and development hub,
producing cost-effective goods for global markets.

Top Companies
A study by AC Nielsen reveals that 62 of the top 100 FMCG brands in India are owned by multinational companies
(MNCs), while the remaining brands belong to Indian firms. Fifteen companies own these top brands, with Hindustan
Unilever (HUL) holding 27 of the 62 brands. The leading FMCG companies in India are as follows:

1. HUL 7. Cadbury India

2. ITC 8. Britannia industries

3. Nestlé India 9. Procter & gamble hygiene and health care

4. GCMMF (AMUL 10. Marico industries

5. Dabur India

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6. Asian Paints

2.3 BRITANNIA: INTRODUCTION

Britannia Industries, founded in 1892 in Kolkata, has a 130-year legacy of crafting beloved and nutritious
snacks. Starting with biscuits, the company's portfolio now spans biscuits, cakes, breads, and wholesome
snacks, catering to diverse consumer tastes and occasions across India. With iconic products like Good Day,
Marie Gold, and Nutri Choice, Britannia has become a household name.

Driven by a vision to be a Responsible Global Total Foods company, Britannia emphasizes innovation,
sustainability, and community impact. Its R&D team continually develops products aligned with evolving
preferences, while sustainability practices focus on renewable energy, waste reduction, and responsible
sourcing. Britannia’s CSR initiatives support education, health, and nutrition, positively impacting
communities across India.

MILESTONES
 1892: Britannia was founded in Kolkata with an initial investment of 295 rupees.
 1910: With the introduction of electricity, operations became mechanized.
 1918: the company was incorporated on 21st march, as a public limited company under the Indian
Companies act, VII of 1913
 1921: Industrial gas ovens were imported to increase production
 1954: Development of high quality sliced and wrapped bread in India was pioneered by the company
 1955: Britannia Launched Bourbon biscuits.
 1963: Britannia cakes hit the market
 1979: With effect from 3rd October, the name of the Company was changed from the Britannia Biscuit Co.
Ltd. to Britannia Industries Ltd.
 1983: Sales cross ₹100 Crores
 1986: The now popular Good Day brand was launched
 1989: The executive office of the company moves to Bangalore
 1993: Little Hearts and 50-50 find their place on market shelves
 1997: Britannia Incorporates the 'Eat Healthy. Think Better' corporate identity.
 Britannia launches its dairy products
 2000: Britannia was voted in Top 300 small companies by Forbes Global
 2004: Britannia was accorded the status of being a 'super brand'
 2012: Britannia was awarded the Global Performance Excellence Award by Asia Pacific Quality
Organisation
 2014: An exclusive tie up with Amazon for the launch of its latest product, Good Day Chunkies, a super-
premium chocolate chip cookie
 2015: Britannia Bourbon, India's first premium chocolate biscuit completes 60 glorious years
 2016: State of the art R&D facility launched in Karnataka
 2017: Entered into a joint venture agreement with Chipita S.A., a Greek company, for the manufacture
and sale of ready to-eat delicious croissants.
 2018: 100 years of incorporation of Britannia
 2019: Launch of Britannia Marie Gold My Start-up Initiative
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  2020: Covid Relief Initiatives across 19 states and 110 cities
 2021: Good day relaunch inspired by the Smiles of India
 Winkin' Cow crosses 100 Cr
 Launch of 5050 Potazos
 2022: JV with BEL for Cheese

Britannia Industries Limited: Pantnagar Plant

Britannia Industries Limited established its Pantnagar plant in 2005 on a 20acre site, primarily for biscuit production
due to the area's tax advantages. The plant has four operational units producing various biscuit brands.

• Established in 2005 with an investment.

• Spread across 20 acres of land

• Minimum production capacity of 180 tons per day

• Maximum production capacity of 300 tons per day

• Produces brands like Good Day, Tiger, Nutri Choice, Treat, and Bourbon

• Follows strict hygiene protocols with mandatory caps for all personnel entering the production area

• Implements modern concepts like 5S and is ISO 22000 certified.

Britannia- LOGO AND ITS MEANINGS:

Britannia’s logo signifies, “rebranding as the total foods

company from now on with the expansion of its offerings
in both healthy and indulgent products. The wings of a
bird signify freedom to choose, whenever and wherever
you want on enjoy your food”

Britannia– vision

To dominated the food and beverage market in India with a distinctive range of
“tasty yet healthy” Britannia brands.

Britannia- mission:
To dominate the food and beverage market in India through a portfolio range of “tasty yet healthy” products
by making every Indian a Britannia consume. “We want to be part of our consumer- at home,
out of home, a natural part of his life.”

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 Company Profile

Company Britannia Industries Limited

Name
Headquater Kolkata, West Bengal, India
Industry Food Processing
Parent Wadia Group
Company
Founded 1892
CEO Ranjeet Singh Kohli
Revenue 16,301 Crores INR (US $2.0 Billion)
Area Seved Worldwide
website www.britannia.co.in

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CHAPTER III

3.1 Objective of the Study

The main objectives of the study of inventory management practices are:
 To study about the techniques which they are adopting for inventory control.

 To study about over store and underneath stocking.

 To study data for short- term and long-term planning and control of inventory.

 To study the inventory management system of Britannia industries.

3.2 Period of Study

The internship period was from June 25, 2024, to August 8, 2024, totalling six weeks. Under the guidance of
My Mentor, Navneet Sir, Finance Manager at Britannia Industries, I focused on studying inventory
management practices. This period provided valuable insights into the company’s supply chain processes,
allowing me to observe key areas such as material inward, quality checks, production, and
outbound logistics.

3.3 Research Methodology

 R1 Data Collection: Primary data gathered through direct observation at Britannia's Pantnagar Plant,
discussions with department heads, and review of company records.

 R2 Observation: Detailed observation of daily inventory management operations, including stock

control, quality checks, production, and dispatch.

 R3 Document Analysis: Reviewing records and reports related to inventory management, including
inventory turnover ratios, cost reports, and lead time records.

 R4 Qualitative Analysis: Interviews with team leaders and staff to understand qualitative factors
affecting inventory management.

 R5 Secondary Data: Reference to industry reports and literature on inventory management practices
in the FMCG sector to provide context and benchmarks.

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3.4 Scope of Study
Store department in Britannia.
The Store Department at Britannia Industries plays a critical role in inventory management, ensuring smooth and
efficient operations. It carefully maintains optimal inventory levels by balancing raw materials, packaging supplies,
and finished goods, thus avoiding both overstocking and understocking. Effective storage and handling practices
prevent damage and maintain quality, while organized storage systems improve accessibility and support efficient
material flow. The department also oversees the receiving and inspection process, ensuring that incoming materials
meet quality and quantity standards, and coordinates closely with suppliers and procurement teams to maintain
inventory accuracy. Through detailed record-keeping, it tracks inventory levels, receipts, and issuances, which aids in
usage tracking, future planning, and conducting audits. Regular stock audits and reconciliations further support
accurate inventory control by matching physical counts with recorded data and addressing discrepancies.
Additionally, the Store Department actively manages inventory costs by reducing waste, optimizing stock levels, and
implementing cost-saving measures, contributing to profitability while supporting consistent production. Overall, the
Store Department’s robust inventory management practices ensure materials are available when needed, control
costs, and enhance the company’s operational efficiency.

Operating Procedure of the Store Department at Britannia

The Store Department at Britannia is vital for ensuring the efficient handling and storage of raw materials and
finished products. The following detailed procedure outlines the various steps involved, from gate entry to the
creation of a Goods Receipt Note (GRN) on SAP, with a strong emphasis on inventory management throughout the
process.

Gate Entry

1. Document Verification and Health Check:

 Driver Documentation: Verify the driver's documents, including the registration certificate (RC), driving
license, insurance, fitness certificate, national permit, and tax invoice, to confirm that the truck is
transporting Britannia materials. If any documents are missing, entry is denied.
 Health Assessment: Ensure the driver passes a health check before proceeding.

2. Safety Briefing:

Safety officers provide drivers with a safety vehicle checklist.

Security personnel record truck details in various gate entry registers, including the General Inward RM/PM,
Engineering Inward, and Godown Inward Register.

3. Truck Entry and Weighing:

 Traffic Marshal: Guides the truck to the weighbridge for weighing.

 Security Check: Verify the Advance Shipping Notice (ASN) and ensure that the material weight matches the
invoice.
 Weighing Machine: Record the gross weight of the loaded truck.
 Weighment Register: Log the gross weight, tare weight, and net weight, including the UTC number, using the
formula:
 Net Weight = Gross Weight (loaded truck) - Tare Weight (empty truck).
 Attach the weight slip, indicating gross weight and the security personnel's signature, to all vendor
documents.

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4. Entry in Gate Entry Application Software:
Enter ASN and invoice number into the software, ensuring that quantities match. If discrepancies arise, further entry
is halted until resolved with the vendor.

5. Handling Multiple ASN Numbers:

For transporters carrying multiple ASN numbers, create entries for each ASN and invoice under the transporter's
name.

6. Generate UTC Number:

A UTC (Gate Entry) number is generated and recorded in the documents with the transporter.

7. Document Receipt:
The store officer collects essential documents from the driver, including the tax invoice, vehicle checklist, Certificate
of Analysis (COA), and e-way bill.

8. Safety Training:
Driver Safety Training: The store officer provides safety training, emphasizing critical guidelines such as:
No alcohol or tobacco in the truck.
Speed limit of 10 km/h within factory premises.
Mandatory presence of a helper or traffic marshal when moving vehicles.
Use of wheel chocks when trucks are stationary.
Document the training in the driver safety training record register.

9. Material Inspection:
A Material Inspection Report (MIR) is generated from the tax invoice.
The MIR and COA are forwarded to the relevant lab for inspection (RM lab for raw materials, PM lab for packaging
materials, and Cake Plant lab for cake materials).

10. Purchase Register:

Log all incoming materials into the purchase register (Excel format) for comprehensive tracking.

11. Approval and Unloading:

Upon lab approval of the MIR, the truck is unloaded. If materials are rejected, follow the material rejection process in
SAP using movement type 122.

12. Second Weighment Procedure:

Britannia implements a two-way weighing process, varying by product type:
For Materials in Bags: Compare the net weight of the vehicle (from the weighbridge) with the average weight of a
sample of 10 bags multiplied by the total number of bags received.
For CBBs (Containerized Bulk Bags): Verify the total count of CBBs by physically counting 10% of the bundles, then
calculate the total based on bundle count and CBBs per bundle. Deduct the weight of empty CBBs or bags to
determine the exact weight of the materials.

13. Weight Verification:

Tolerance Check: Compare weights from the weighbridge and the loading point, allowing for a maximum difference
of 2%. The lower of the two weights is used for the GRN in SAP.

14. Goods Receipt Note (GRN):

Create the GRN in SAP using the lower weight of the materials. The GRN serves as an official receipt, documenting
the delivery and acceptance of goods from the supplier. The store officer is responsible for ensuring that a GRN is
generated for all materials entering the factory, moving away from the previous practice of recording based solely on
acceptance or rejection by quality control.

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15. Gate Out Process:
 Check GRN: Security guards ensure that a GRN has been created.
 Gate Out Entry in Software: Execute the gate-out entry in SAP based on the UTC number.

Issuance of Materials
The process of issuing materials at Britannia Industries involves several critical steps to ensure precision and
efficiency, highlighting effective inventory management throughout:

1. Requisition:
Departments needing materials submit a requisition form that specifies the type and quantity of materials required.

2. Approval:
The requisition form is reviewed and authorized by the designated authority or manager to validate the necessity of
the request.

3. Verification:
The Store Department checks the inventory to confirm the availability of the requested materials, ensuring efficient
resource utilization.

4. Preparation:
 Picking: Materials are picked from the storage area based on the approved requisition.
 Weighing: The materials are weighed to ensure the correct quantity is being issued.

5. Documentation:
An issuance form is completed with details of the materials issued, including quantity, date, and the receiving
department. The issuance is recorded in the inventory management system for tracking and auditing.

6. Distribution:
The materials are handed over to the requesting department, and the receiving department signs the issuance form
to acknowledge receipt.

7. Reconciliation:
Inventory records are updated to reflect the materials issued, ensuring accurate stock levels are maintained and
supporting overall inventory management efficiency.

Cold storage
Effective inventory management is crucial for cold storage facilities to ensure the integrity and safety of stored
products. Here are several best practices tailored for managing inventory in these environments:

Expiry Date Tracking: Each cold storage room contains various raw materials and products tailored to specific
temperature and humidity requirements. Meticulous tracking of expiry dates is essential to implement a first-in, first-
out (FIFO) approach, ensuring that products with earlier expiration dates are used first.

Temperature Monitoring: Continuous monitoring of temperature using sensors and data logging is vital to maintain
the required storage conditions. This practice provides an audit trail and helps identify any temperature excursions
that could compromise product quality.

Labelling and Traceability: Proper labelling of storage locations, product details, and expiry dates enhances efficient
inventory management and traceability throughout the supply chain, ensuring that all products can be easily
identified and managed.

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Inventory Management Systems: Utilizing advanced inventory management systems that employ technologies such
as RFID and barcode scanning offers real-time visibility into stock levels, locations, and shelf life. This capability
supports effective forecasting and minimizes waste, allowing for better decision-making regarding inventory.

Cold Storage Management at Britannia

At Britannia, specific temperature ranges are maintained in various cold storage facilities to support the safe storage
of diverse raw materials and finished products:

Temperature Range: 2°C to 6°C:

Cold Store - 01
Stored Products:
 Almond Mix (3 months)
 Pista Big (3 months)
 Cashew Big (1 month)
 Milk Chocolate (6 months)
 Dark Chocolate Chips (9 months)
 Various Flavors, including Strawberry Tip Drops and Chocolate Truffle (12-24 months)

Temperature Range: 26°C:

Cold Store - 02
Stored Products:
 Fresh fruits
 Vegetables
 Dairy products
 Temperature-sensitive pharmaceuticals

Temperature Range: 26°C:

Cold Store - 03
Stored Products:
 Similar to Cold Store 02, with an additional focus on bulk dairy storage and some refrigerated processed
foods.

Temperature Range: 17°C to 25°C:

Cold Store - 04
Stored Products:
 Room temperature-stable pharmaceuticals
 Processed foods
 Chemicals requiring controlled room temperature storage.
These facilities maintain specified temperature ranges to ensure the appropriate storage of various raw materials and
finished products, thus preserving their quality and safety through effective inventory management practices.

Capacity:
 RPO: 240 ml
 SELO: 60 MT
 Floor Area: 200 MT (750 MT overall)

Quality department at Britannia industries

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The Quality Department at Britannia Industries is essential for maintaining the company's esteemed reputation in the
food industry. Comprising skilled professionals, this department ensures the highest standards of product quality and
safety through advanced technologies and comprehensive quality management systems. Key practices include
conducting thorough inspections of incoming raw materials, allowing only those meeting rigorous quality criteria into
production, and implementing continuous monitoring during the manufacturing process to maintain consistency and
adherence to safety standards. Prior to dispatch, comprehensive evaluations guarantee that only high-quality
products reach consumers. The department ensures compliance with national and international regulations through
regular audits and collaborates closely with suppliers to maintain quality across the supply chain. Continuous
improvement efforts are driven by feedback from quality assessments, while rigorous documentation of quality
inspections helps track rejected materials, influencing inventory management. Effective communication with the
store department ensures inventory accuracy, while the rejection process and documentation maintain transparency
and support compliance. Ultimately, these practices enhance inventory management by safeguarding product
integrity and promoting operational efficiency throughout the supply chain.

Production department at Britannia industries

The Production Department at Britannia Industries is crucial for converting raw materials into high-quality finished
products, overseeing the entire manufacturing process while ensuring efficiency, consistency, and adherence to
quality standards. This department utilizes advanced technology and skilled personnel to uphold Britannia's
reputation for excellence.

Key roles include efficient resource utilization, where raw materials, labour, and machinery are optimized to minimize
waste and control production costs, supported by financial metrics that monitor resource efficiency. Quality
assurance is integrated through collaboration with the quality department, promptly addressing any deviations to
avoid financial losses and supply chain disruptions.

Production planning and scheduling are developed to align with market demand, minimizing inventory holding costs
by leveraging financial forecasting and supply chain data. Cost management measures keep production expenses
within budget, with regular financial analyses identifying areas for potential savings and improvements in efficiency.

Furthermore, the production department coordinates closely with the supply chain team to ensure the timely
availability of raw materials, enhancing agility in response to supply and demand fluctuations. Compliance with
regulatory standards and sustainability practices is also prioritized, considering the financial implications to maintain
profitability.

Investments in modern production technologies are made to boost efficiency and product quality, with financial
assessments evaluating the return on investment (ROI). Finally, capacity management is employed to adjust
production levels according to demand, utilizing financial and supply chain data for strategic planning of capacity
expansion or contraction. Through these practices, the Production Department plays a vital role in enhancing
inventory management and operational success at Britannia Industries.

POST-PRODUCTION QUALITY CHECK

After production, a stringent quality check is conducted by the quality department. Only if all the properties of the
finished goods meet the required standards, the products are approved for dispatch to the suppliers. If any quality
criterion is not met, the goods are placed on hold, and the issue is discussed with the production manager and
authorized personnel. Only once these concerns are resolved, and quality standards are met, can the products be
dispatched. If the quality standards are not adhered to, the goods will not be sent to the dispatch department.

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Store and forward (S&F) department at Britannia industries
The Store and Forward (S&F) Department at Britannia Industries is essential for ensuring that products are
dispatched efficiently and delivered in optimal condition. This department plays a crucial role in maintaining
Britannia’s reputation for quality and reliability by managing inventory, coordinating logistics, enforcing quality
control, and ensuring compliance with regulations. Its objectives include efficient inventory management through
accurate reporting and adherence to the First-In-First-Out (FIFO) method, effective coordination and communication
with headquarters and the planning department, and optimal logistics management using SAP for tracking
requirements. Quality assurance is maintained through thorough vehicle and driver checks, while regulatory
compliance is ensured via meticulous documentation, including invoices and e-way bills. The department also focuses
on cost efficiency by minimizing waste and optimizing the utilization of warehouse space and transportation
resources. Customer satisfaction is prioritized through timely deliveries and the preservation of product integrity
during storage and transportation.

The S&F department follows a streamlined process beginning with communication of closing stock to headquarters,
followed by the receipt of a dispatch plan detailing production and requirements. It calculates the necessary truck
requirements, enters this data into the SAP system, and coordinates logistics to ensure timely truck availability.
Security checks are conducted to verify vehicle condition and driver compliance before loading, which is overseen by
a supervisor who ensures adherence to FIFO and quality control measures. The loading process is meticulously
documented, and all loaded products are reconciled for accuracy. Finally, a thorough final check is conducted before
dispatch, ensuring that all documentation is verified and the truck is cleared for departure. This detailed process
allows the S&F department to efficiently manage dispatch operations while maintaining high standards of quality and
operational efficiency, with the Pantnagar Plant capable of holding approximately 1,100 metric tons of stock,
including 1,050 tons of biscuits and 50 tons of cake.

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THE 5S METHODOLOGY AT BRITANNIA
The 5S methodology is a system for organizing and manging the workplace
to improve efficiency and productivity. At Britannia industries, implementing
the 5S methodology can lead to significant improvements in production
processes, quality control, and overall workplace safety.

 Sort
 Set in order (Seiton)
 Shine (Seiso)
 Standardize (Seiketsu)
 Sustain

❖ Sort: The first step, Sort, involves identifying and separating necessary items from unnecessary items in the work
area. This helps eliminate clutter and reduce distractions. At Britannia, you would go through the store and sort the
inventory, tools, and equipment, keeping only what is essential for current operations and removing anything that is
not needed.

❖ Set in Order (Seiton) Once the unnecessary items have been removed, the next step is to Arrange or Set in Order
the remaining items. This involves organizing the work area by assigning a designated and labeled location for each
item, making them easy to find and access when needed. This step improves workflow and efficiency.

❖ Shine (Seiso) The third step, Shine, focuses on cleaning and maintaining the work area. This includes regular
cleaning, inspection, and preventative maintenance of equipment, tools, and the overall workspace. Keeping the area
clean and wellmaintained helps identify issues early and prevents defects.

❖ Standardize (Seiketsu) The fourth step is to Standardize the first three 5S steps. This involves creating standard
procedures, schedules, and responsibilities to ensure the Sort, Set in Order, and Shine steps are consistently followed.
Visual controls, checklists, and training help embed these practices into daily routines.

❖ Sustain The final step is to Sustain the 5S system. This requires developing a culture of discipline where employees
take ownership of maintaining the organized, clean, and efficient work environment. Regular audits, recognition
programs, and continuous improvement efforts help sustain the 5S practices over the long term.

Types of Inventory Management Practices Used by Britania:

1. FIFO (First In, First Out):
Britannia uses the FIFO method extensively, especially for managing inventory of perishable goods. This ensures that
older stock is sold first, reducing the risk of product expiration and waste. The practice is particularly important for
their food items, where maintaining freshness and quality is critical.

2. Just-in-Time (JIT) Inventory:

Britannia often adopts a JIT approach to reduce holding costs and manage inventory efficiently. By sourcing materials
close to production times and minimizing stock levels, the company can reduce storage costs and ensure that fresh
ingredients are used. This practice is balanced carefully to avoid stockouts that could disrupt production.

3. ABC Analysis:
Britannia employs ABC analysis to prioritize and categorize inventory based on importance and value. High-value
items (A-category) are closely monitored with strict controls, while lower-value items (C-category) receive less
stringent management. This helps Britannia allocate resources effectively and maintain an optimal inventory level.

4. Safety Stock Management:

To mitigate the risks associated with supply chain disruptions or demand spikes, Britannia maintains a safety stock of
essential raw materials and finished goods. This ensures that production can continue smoothly, even if there are
unexpected supply issues.

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5. Periodic Inventory Reviews:
Regular reviews of inventory levels, especially at high-traffic warehouses, are conducted to keep stock aligned with
demand forecasts. Britannia’s inventory management team routinely monitors stock levels and adjusts orders
accordingly to match demand and prevent overstocking or understocking.

6. Quality Checks:
Stringent quality checks are applied at different stages in the inventory cycle—from raw materials to finished
products. This ensures that only high-quality items proceed to the next stage in the supply chain, reducing waste and
enhancing customer satisfaction.

Britannia's ESG Initiatives:

Environmental:
• Achieved 60% renewable energy in energy mix (2024)
• Reduced water intensity by 32.8% since FY 201920
• Met 30% water consumption reduction target (2024)
• Eliminated 15,00,000 kg of plastic trays in packaging (2023)

Social:
• Reached 20% women in senior management (2021)
• Increased women in factories to 39% (2024)
• Benefited 62,587 malnourished individuals (2023)
• Improved 94% of malnourished children to healthy status (2023)
• Impacted 2.3 lakh people through Britannia Nutrition Foundation

Governance:
• Completed ESG assessment of 453 suppliers
• Maintain high professional and ethical standards
• Engaged 26 locations near Ranjangaon plant (2021)
• Trained 400 women in dairy farming (2021)

Results:
• Named among 1000 Leading Listed ESG firms by Dun & Bradstreet
• Won 2 Gold and 1 Silver in ESG category at SKOCH Awards (2023)
• Recognized as Best Employer for 5 consecutive years (2023)

SWOT Analysis

Strengths:
1. Market Leadership: Britannia holds a dominant position in India's food industry,
generating an impressive Rs. 16,546 crores in revenue for FY 202324.
2. Strong Brand Portfolio: The company boasts iconic brands like Good Day, Tiger, and
Nutri Choice, which have become household names in India.

3. Extensive Distribution: With a direct reach to 27.9 lakh outlets and 30,000 rural
distributors, Britannia's distribution network ensures widespread product availability.
4. Robust Financials: Britannia has demonstrated consistent growth, with a 10year
CAGR of 9% in sales and 19% in profits from FY 2014 to 2024.
5. High Profitability: The company has significantly improved its operating profit margin
from 7% in FY 2013 to 17.3% in FY 2024, indicating strong operational efficiency.

6. Innovation: New product launches have been successful, contributing Rs. 275+ crore
annually to the company's revenue.
7. Strong Returns: Britannia offers impressive returns to shareholders, with a ROE of
57.2% and ROCE of 48.9% in FY 2024.
18
Weaknesses:

1. Biscuit Dependence: Despite diversification efforts, 8085% of Britannia's revenue

still comes from biscuits, making it vulnerable to shifts in this specific market.

2. Uneven Market Penetration: The company's focus states are growing 2.4 times faster
than the rest of India, indicating potential for improvement in other regions.

3. Limited International Presence: Only 5.5% of revenue comes from global markets,
suggesting untapped potential for international expansion.

Opportunities:

1. Rural Expansion: Britannia is strengthening its rural distribution network, which

could open up significant new markets.

2. Ecommerce Growth: With 50% growth in modern trade and ecommerce channels,
there's potential for further expansion in digital sales.

3. International Markets: Strong growth in GCC and America indicates promising

opportunities for global expansion.

4. Health & Wellness: The growing health-conscious consumer base presents

opportunities for Britannia's Nutri Choice range and health focused apps.

5. Adjacent Businesses: Expansion into cake, rusk, bread, and dairy segments offers
diversification and growth potential.

Threats:

1. Intense Competition: Britannia faces strong competition from both domestic and
multinational players in the food industry.

2. Raw Material Volatility: The company is exposed to fluctuations in commodity prices,

which can impact profitability

3. Economic Factors: Slowing private consumption growth (3% in FY 202324) could

affect sales and market expansion.

4. Changing Consumer Preferences: Britannia must continuously innovate to meet

evolving consumer tastes and healt

19
CHAPTER IV
1.1 Data Analysis and Interpretation
Britannia industries Inventory turnover
The following section summarizes insights on Britannia industries ltd.’s inventory turnover.

20
Performance Summary

• Britannia Industries’ latest twelve months inventory turnover is 16.3x

• Britannia Industries's inventory turnover for fiscal years ending March 2020 to 2024 averaged 8.0x.

• Britannia Industries's operated at median inventory turnover of 8.0x from fiscal years ending March 2020 to 2024.

• Looking back at the last 5 years, Britannia Industries's inventory turnover peaked in June 2024 at 16.3x.

• Britannia Industries's inventory turnover hit its 5-year low in March 2022 of 7.1x.

• Britannia Industries's inventory turnover decreased in 2021 (8.4x, -7.3%) and 2022 (7.1x, -14.6%) and in 2020 (9.0x,
+6.7%), 2023 (7.5x, +4.8%), and (8.0x, +6.9%).

Definition of Inventory Turnover

“Inventory Turnover for Britannia Industries is calculated as follows: Cost of Goods

Sold [ 96.569 B]
(/) Average Inventory over Period [ 5.941B] (=) Inventory Turnover [ 16.3x]”
The tables below summarize the trend in Britannia Industries's inventory turnover over the last five years:

Fiscal year Cost of goods sold Average inventory Inventory turnover

2020-03-31 69.909 B 7.761 B 9.0x
2021-03-31 76.911 B 9.211 B 8.4x
2022-03-31 88.37 B 12.385 B 7.1x
2023-03-31 96.842 B 12.951 B 7.5x
2024-03-31 95.802 B 11.981 B 8.0x

The Inventory Turnover ratio measures the number for times a company's inventory is sold and replaced over a year.
It is a measure of working capital efficiency and a company's inventory turnover is often benchmarked against
competitors or the industry average. A low turnover ratio can serve as a leading indicator of poor sales (excess
inventory) while a high ratio may strong sales.
CHAPTER V
5.1 Findings
1. Integration of Inventory Management Practices:

21
  Material Receipt: At this stage, inventory management practices focus on accurate recording of incoming
materials and ensuring compliance with stock management protocols. Effective management ensures that
received materials are properly documented and stored to prevent loss or spoilage.

 Inventory Management: The FIFO (First In, First Out) method is utilized to manage inventory effectively. This
approach ensures that older materials are used before newer ones, minimizing spoilage and waste.
Additionally, inventory practices are employed to optimize inventory levels and reduce holding costs.

 Production Planning: Inventory management practices involve analysing inventory levels to manage
production schedules effectively. This ensures that there are sufficient materials available to meet production
needs while avoiding excess stock that could lead to waste.

 Quality Control: In this phase, inventory management is essential for assessing the availability of quality
materials and ensuring that they meet production standards. Regular checks are performed to maintain
inventory quality without overstocking.

 Dispatch and Logistics: Inventory management practices focus on optimizing logistics processes, including
transportation and warehousing. This ensures that the right materials are delivered on time, reducing delays
and improving overall efficiency.

 Use of SAP: The use of SAP facilitates the integration of various inventory management practices into the
supply chain. It provides real-time data for tracking inventory levels, managing stock movements, and
ensuring accurate reporting.

 Accounts Department: While primarily focused on financial transactions, the accounts department supports
inventory management by providing accurate data regarding material costs and inventory levels, aiding in
decision-making processes.

2. Flowchart Integration:
 The flowchart outlines the inventory management processes from gate to dispatch, illustrating how these
practices are integrated into each stage of the supply chain. It highlights key touchpoints where inventory
management intersects with operational activities, ensuring a cohesive approach to maintaining optimal
inventory levels and enhancing operational efficiency.


22
5.2 Recommendations and Suggestion

1. Enhancing Logistics Efficiency:

a. Implementation of Advanced Inventory Management Systems:

AI and Data Analysis: Leverage AI-powered analytics to predict demand patterns and optimize inventory levels.
Implement machine learning algorithms to analyse historical data, enabling accurate forecasts of future needs. This
approach will help reduce excess inventory and minimize stockouts, leading to a more responsive supply chain.

Automated Tracking: Adopt automated tracking systems for real-time inventory monitoring. Implement RFID and
barcode scanning technologies to ensure accurate tracking of materials from receipt to dispatch, enhancing visibility
and control over inventory movements.

b. Streamlining FIFO Integration:

Automated FIFO Management: Utilize automated inventory management systems to enforce FIFO rules effectively.
These systems can track product batches and expiration dates, ensuring that older stock is prioritized for use, thereby
minimizing waste.

Data-Driven FIFO Compliance: Regularly analyse inventory turnover data to identify and address any deviations from
FIFO practices. Implement alerts for inventory nearing expiration to prioritize its usage, ensuring that products are
utilized efficiently.

2. Improving Cost Efficiency:

a. Optimized Logistics Operations:

Route Optimization: Employ AI-driven route optimization tools to design efficient delivery routes, which will reduce
transportation costs and improve delivery times. This can enhance overall logistics efficiency and customer
satisfaction.

Dynamic Inventory Management Models: Develop dynamic inventory management approaches that adapt to
demand fluctuations, ensuring optimal stock levels while maintaining operational efficiency and responsiveness in
supply chain operations.

23
5.3 Limitation of the study

 Focusing primarily on Britannia's Pantnagar Plant limits the study's ability to capture inventory
practices across other plants or regions where different practices might be in place.

 Certain proprietary or confidential information about Britannia’s inventory management practices

and financials may not be accessible, leading to a reliance on secondary data or estimates for some
aspects.

 With the internship lasting from June to August, there may be limited time to observe and analyse
long-term inventory trends, seasonal variations, or responses to specific challenges.

 Observing practices over a short period may not reveal the full impact of methods like Just-in-Time
(JIT) or seasonal inventory adjustments that require longer-term analysis.

 Findings from a single location may not be entirely representative of practices across the entire
company, as variations in management, local suppliers, or product lines could lead to differences.

 Economic factors, supply chain disruptions, and evolving customer preferences can influence
inventory practices, meaning findings might become outdated as these external conditions shift.

 Emphasis on quantitative data like inventory turnover ratios might overlook qualitative aspects, such
as employee insights on inventory handling or operational challenges, which can also impact
inventory efficiency.

 If the project involves interviews or self-reported data from employees, there may be bias in
responses that could affect the accuracy of findings regarding inventory processes or challenges.

 If the plant does not use advanced inventory management technology, it could limit the
effectiveness of methods like ABC analysis or real-time monitoring, which may not reflect the latest
best practices.

 If your data is collected in a specific season, it might not reflect inventory management practices
during peak seasons or times of higher demand variability, which could influence inventory turnover
and safety stock levels.

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5.4 Conclusion

1. Enhanced Inventory Efficiency:

The integration of inventory management practices within the supply chain processes at Britannia Industries
significantly improves overall inventory efficiency. By effectively managing stock levels from material receipt to
dispatch, the company can minimize waste, optimize resource utilization, and enhance operational performance.

2. Improved Inventory Management:

The application of FIFO and other inventory management practices helps maintain product quality while reducing
spoilage. This integration ensures that older inventory is prioritized for use, aligning with operational objectives and
enhancing overall efficiency.

3. Optimized Production and Quality Control:

Inventory management practices in production planning and quality control aid in balancing the availability of
materials and product quality. Effective management ensures that production processes are efficient and adhere to
quality standards without excess inventory.

4. Streamlined Dispatch and Logistics:

Inventory management strategies applied to dispatch and logistics contribute to improved efficiency. By optimizing
transportation and warehousing processes, Britannia can enhance its supply chain performance and improve
customer satisfaction.

5. Effective Use of SAP:

SAP serves as a robust platform for integrating inventory management practices into supply chain operations. It
supports real-time data tracking, inventory reporting, and management, facilitating better decision-making and
operational control.

25
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 Otchere, A. F., Adzimah, E. D., & Aikens, I. (2016). Assessing the inventory management practices in a selected
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Thank you

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