Summer Training Project Report & Viva Voce

On

“Supply Chain Management at Britannia”

Undertaken at

BRITANNIA INDUSTRIES

Submitted in the partial fulfillment of the requirements

for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

to

DR. A.P.J. ABDUL KALAM TECHNICAL UNIVERSITY LUCKNOW

Under the Guidance of Submitted by:

Mr. Vishal Pawan Ashok More
Assistant Professor MBA – III Sem,
Enrollment No: 2301520700235

Academic Session

2024-25
 Certifcate

I Pawan Ashok More bearing Enrolment No. 2301520700235 from MBA-III Sem of the
Mangalmay Institute of Management & Technology, Greater Noida, U.P. hereby declare that the
Research Project Report & viva voce (KMBN 308) entitled “A Study on Supply Chain
Management at Britannia Industries” is an original work and the same has not been submitted to
any other Institute for the award of any other degree.

Date: Signature of the Student:

Certified that the Summer Training Report submitted in partial fulfillment of the requirements
for the award of the degree of MASTER OF BUSINESS ADMINISTRATION to DR. A.P.J.
ABDUL KALAM TECHNICAL UNIVERSITY LUCKNOW by Pawan Ashok More
Enrolment No. 2301520700235 has been completed under my guidance and is Satisfactory.

Date:

Signature of the Guide:

Name of the Guide:
Mr. Vishal
Assistant Professor
Signature of the HOD

Dr. Richa Sharma

 ACKNOWLEDGEMENT

I would like to thank Mr. Vishal, Department of MBA Mangalmay Institute of Management and
Technology for giving me this golden opportunity to work on The Research Project Report and
create my own Application and website or any other type of idea, original work which helped me
to learn many new things, gain more knowledge about different topics and various concepts.

I am also grateful towards my classmates who helped me working on this application all other
students of the MBA department for making me understand various aspects of the project and
helping me create and develop the project to be more useful and effective.

Last but not the least I am thankful to all those persons with whom I have interacted and who
have directly or indirectly contributed significantly to the successful completion of my Research
Project Report.
Pawan Ashok More
MBA (SEC-D)
 EXECUTIVE SUMMARY

Overview :
Britannia Industries Limited, a leading Indian food products company, has significantly
modernized its supply chain management to maintain its competitive edge in the FMCG sector.
This transformation has been driven by digital initiatives and strategic partnerships, aimed at
enhancing efficiency, visibility, and responsiveness across its supply chain.

Digital Transformation :
Britannia partnered with Accenture to implement a comprehensive digital transformation
program. This included deploying SAP S/4HANA®, which improved data accessibility and
visibility across the organization, and SAP Ariba® solutions for procurement and supply chain
management. These systems have enabled Britannia to streamline procurement processes,
optimize inventory, and improve product availability (Newsroom | Accenture).

Network and Distribution :

Britannia operates an extensive distribution network, reaching over 3.5 million retail outlets. The
company has focused on reducing the distance between its distribution centers and retail stores to
operate with a 'zero-day inventory' model. This approach helps minimize inventory holding costs
and ensures fresher product delivery to consumers (BSE Sensex).

Operational Efficiency :
Through the digitization of over 80 manufacturing units and 50 warehouses, Britannia has
significantly reduced IT operational costs. These improvements in operational efficiency are
crucial for maintaining high standards of product quality and consistency. The digital backbone
supports better decision-making with real-time data analytics, enhancing overall supply chain
resilience and agility (Newsroom | Accenture) (BSE Sensex).
Growth and Innovation:
Britannia’s digital initiatives have unlocked capital for innovation and growth. The company is
expanding into new product categories and markets, aligning with evolving consumer
preferences. By leveraging advanced technologies, Britannia aims to enhance its market presence
and drive future growth (Newsroom | Accenture).

Overall, Britannia Industries' supply chain management strategy revolves around digital
transformation, efficient distribution, and continuous innovation, positioning the company to
effectively meet market demands and sustain its growth trajectory.

The Britannia brand is all about eating healthy, to lead a better life. It advocates values that stand
for health, hygiene, family, trust and taste. It reflects the strong link between physical and mental
well-being that is so important to a person, and is typically a result of what one eats. Today,
Britannia, driven by a passion for excellence, manifested by its innovative thinking, has been
able to weave itself into the fabric of the consumer's everyday life. While Britannia strives to
give consumers a healthier life, the consumer on the other hand, has come to expect innovation
from Britannia's offerings - a huge challenge for the company.
Sr. No PARTICULARS Page No

1. Certificate 1-2

2. Acknowledgement 3

3. Executive Summary 4-5

4. Chapter 1-Introduction 7-25

5. Chapter 2- Review of Literature 26-66

6. Chapter 3- Research Methodology 67-68

7. Chapter 4- Data Reduction, Presentation &Analysis 69-76

8. Chapter 5- Data Interpretation 77-79

9. Chapter 6- Summary and Conclusion 80-82

10. Bibliography 83-84

11. Annexture 85-86

 CHAPTER : 1

INTRODUCTION

1
 INTRODUCTION

In today’s rapidly changing business environment, ever greater demands are being placed on
business

- to provide products and services quicker

- with greater added value

- to the correct location

- With no relevant inventory position.

Customers want more quality, design, innovation, choice, convenience and service, and they
want to spend less money, effort, time and risk. The supply chain of a company consists of
different departments, ranging from procurement of materials to customer service.

Supply Chain Management means transforming a company’s "supply chain" into an optimally
efficient, customer-satisfying process, where the effectively of the whole supply chain is more
important than the affectivity of each individual department.

NEED FOR SCM IN THE MARKET TODAY:

Businesses the world over are struggling to sustain competitiveness in a globalzing

economy. They are at present in the midst of a revolutionary transformation; that of
competition shifting from industrial age to information age. During the industrial age the
companies’ succeeded by how well they could capture the benefits from economies of scale
and scope. However, information age does not allow all this and has initiated following unique
challenges, which the businesses have to cope up with.

2
Managing uncertainty: Companies are finding difficult to predict the changes in this
competitive market today. Customers are becoming competitors; competitors are becoming
partners and unconventional competition is emerging.

Understanding customers: It is becoming increasingly important to understand customers

needs and wants deeply and to translate these into unique value added business mission.

Understanding globalization of business: Globalization is a process, which cuts across

national boundaries, integrating and connecting communities in new-spaces time combinations.
The emergence of Internet as a global communication vehicle has had a profound impact on the
business processes.

Since the industrial revolution, the developments in tooling, processes, materials etc.
accelerated the growth of factory system remarkably.
The concept of supply chain management is based on this view of competency alliance. In
fact, effective SCM is the result of powerful alliance between customer, manufacturer, and
the supplier.

3
 OBJECTIVE OF STUDY
WHAT IS SUPPLY CHAIN ?

Supply Chain: A supply chain is a network of facilities and distribution options that performs
the functions of procurement of materials, transformation of these materials into intermediate
and finished products, and the distribution of these finished products to customers. Supply
chains exist in both service and manufacturing organizations, although the complexity of the
chain may vary greatly from industry to industry and firm to firm.

Below is an example of a very simple supply chain for a single product, where raw material is
procured from vendors, transformed into finished goods in a single step, and then transported to
distribution centers, and ultimately, customers. Realistic supply chains have multiple end
products with shared components, facilities and capacities. The flow of materials is not always
along an arbores cent network, various modes of transportation may be considered, and the bill
of materials for the end items may be both deep and large.

WHAT IS SUPPLY CHAIN MANAGEMENT?

Supply chain management (SCM) is the combination of art and science that goes into improving
the way your company finds the raw components it needs to make a product or service and
deliver it to customers.

SCM is also called ‘”extending” which means integrating the internal and external partners on
the supply and process chain to get raw materials to the manufacturer and finished products to
the consumer. Most companies fail to integrate their supply chain strategies for a number of
reasons; among them a lack of system integration due to fragmented supply chain
responsibilities.

The following are five basic components of SCM:

1. Plan – This is the strategic portion of SCM. You need a strategy for managing all the
resources that go toward meeting customer demand for your product or service. A big piece of
planning is developing a set of metrics to monitor the supply chain so that it is efficient, costs
less and delivers high quality and value to customers.
4
2. Source – Choose the suppliers that will deliver the goods and services you need to create
your product. Develop a set of pricing, delivery and payment processes with suppliers and
create metrics for monitoring and improving the relationships. And put together processes for
managing the inventory of goods and services you receive from suppliers, including receiving
shipments, verifying them, transferring them to your manufacturing facilities and authorizing
supplier payments.

3. Make – This is the manufacturing step. Schedule the activities necessary for production,
testing, packaging and preparation for delivery. As the most metric- intensive portion of the
supply chain, measure quality levels, production output and worker productivity.

4. Deliver – This is the part that many insiders refer to as logistics. Coordinate the receipt of
orders from customers, develop a network of warehouses, pick carriers to get products to
customers and set up an invoicing system to receive payments

5. . Return - The problem part of the supply chain. Create a network for receiving
defective and excess products back from customers and supporting customers who have
problems with delivered products
Supply chain management has the following characteristics:

- An ability to secure raw material or finished good from anywhere in world. A

centralized, global business and management strategy with flawless local execution.
- On-line, real-time distributed information processing to the desktop, providing
total supply chain information visibility.
- The ability to manage information not only within a company but across industries
and enterprises.
- The seamless integration of all supply chain managements, including third-party suppliers,
information systems, cost accounting standards, and measurement systems.
- The development and implementation of accounting models such as activity- based
costing that like cost to performance are used as tools for cost reduction.
- A reconfiguration of the supply chain organization into high-performance team going from
the shop floor to senior management.
5
 6. Return - The problem part of the supply chain. Create a network for receiving
defective and excess products back from customers and supporting customers who have
problems with delivered products

Supply chain management has the following characteristics:

- An ability to secure raw material or finished good from anywhere in world. A

centralized, global business and management strategy with flawless local execution.
- On-line, real-time distributed information processing to the desktop, providing
total supply chain information visibility.
- The ability to manage information not only within a company but across industries
and enterprises.
- The seamless integration of all supply chain managements, including third-party suppliers,
information systems, cost accounting standards, and measurement systems.
- The development and implementation of accounting models such as activity- based
costing that like cost to performance are used as tools for cost reduction.
- A reconfiguration of the supply chain organization into high-performance team going from
the shop floor to senior management.

Traditionally, marketing, distribution, planning, manufacturing, and the purchasing organizations

along the supply chain operated independently. These organizations have their own objectives
and these are often conflicting. Marketing objectives are high customer service and maximum
sales dollars conflict with manufacturing and distribution goals. Many manufacturing operations
are designed to maximize throughput and lower costs with little consideration for the impact on
inventory levels and distribution capabilities. Purchasing contracts are often negotiated with
very little information beyond historical buying patterns. The result of these factors is that there is
not a single, integrated plan for the organization---there were as many plans as businesses.
Clearly, there is a need for a mechanism through which these different functions can be
integrated together. Supply chain management is a strategy through which such integration can
be achieved.

6
Supply chain management is typically viewed to lie between fully vertically integrated firms,
where a single firm and those own the entire material flow where each channel member operates
independently. Therefore coordination between the various players in the chain is keys in its
effective management. Cooper and Ellram [1993] compare supply chain management to a well-
balanced and well- practiced relay team. Such a team is more competitive when each player
knows how to be positioned for the hand-off. The relationships are the strongest between players
who directly pass the baton, but the entire team needs to make a coordinated effort to win the
race.

Supply Chain Decisions

Supply chain management is a cross-functional approach to managing the movement of raw

materials into an organization and the movement of finished goods out of the organization
toward the end-consumer. As corporations strive to focus on core competencies and become
more flexible, they have reduced their ownership of raw materials sources and distribution
channels. These functions are increasingly being outsourced to other corporations that can
perform the activities better or more cost effectively. The effect has been to increase the number
of companies involved in satisfying consumer demand, while reducing management control of
daily logistics operations. Less control and more supply chain partners led to the creation of
supply chain management concepts. The purpose of supply chain management is to improve
trust and collaboration among supply chain partners, thus improving inventory visibility and
improving inventory velocity. Supply chain activities can be grouped into strategic, tactical, and
operational levels of activities.

Strategic decisions : strategic decisions are made typically over a longer time horizon. These
are closely linked to the corporate strategy (they sometimes the corporate strategy), and guide
supply chain policies from a design perspective.

 Strategic network optimization, including the number, location, and size of

warehouses, distribution centers and facilities.

7
 Strategic partnership with suppliers, distributors, and customers, creating
communication channels for critical information and operational improvements such as
cross docking, direct shipping, and third-party logistics.
 Product design coordination, so that new and existing products can be
optimally integrated into the supply chain, load management
 Information Technology infrastructure, to support supply chain operations.
 Where to make and what to make or buy decisions
 Align Overall Organizational Strategy with supply strategy

8
Tactical decisions:

 Sourcing contracts and other purchasing decisions.

 Production decisions, including contracting, locations, scheduling, and planning
process definition.
 Inventory decisions, including quantity, location, and quality of inventory.
 Transportation strategy, including frequency, routes, and contracting.
 Benchmarking of all operations against competitors and implementation of best
practices throughout the enterprise.
 Milestone Payments

Operational decisions: operational decisions are short term, and focus on activities over a
day-to-day basis. The effort in these types of decisions is to effectively and efficiently manage
the product flow in the "strategically" planned supply chain

 Daily production and distribution planning, including all nodes in the supply
chain.
 Production scheduling for each manufacturing facility in the supply chain (minute by
minute).
 Demand planning and forecasting, coordinating the demand forecast of all customers
and sharing the forecast with all suppliers.
 Sourcing planning, including current inventory and forecast demand, in
collaboration with all suppliers.
 Inbound operations, including transportation from suppliers and receiving inventory.
 Production operations, including the consumption of materials and flow of finished
goods.
 Outbound operations, including all fulfillment activities and transportation to
customers.
 Order promising, accounting for all constraints in the supply chain, including all
suppliers, manufacturing facilities, distribution centers, and other customers.
 Performance tracking of all activities

9
Four major decision areas in supply chain management:

1) location
2) production
3) inventory
4) transportation (distribution)

And there are elements in each of these decision areas.

Location Decisions :

The geographic placement of production facilities, stocking points, and sourcing points is the
natural first step in creating a supply chain. The location of facilities involves a commitment of
resources to a long-term plan. Once the size, number, and location of these are determined, so
are the possible paths by which the product flows through to the final customer. These
decisions are of great significance to a firm since they represent the basic strategy for accessing
customer markets, and will have a considerable impact on revenue, cost, and level of service.
These decisions should be determined by an optimization routine that considers production
costs, taxes, duties and duty drawback, tariffs, local content, distribution costs, production
limitations, etc.
Production Decisions

The strategic decisions include what products to produce, and which plants to produce them
in, allocation of suppliers to plants, plants to direct customers, and direct customers to
customer markets. As before, these decisions have a big impact on the revenues, costs and
customer service levels of the firm. These decisions assume the existence of the facilities, but
determine the exact path(s) through which a product flows to and from these facilities.
Another critical issue is the capacity of the manufacturing facilities--and this largely depends
on the degree of vertical integration within the firm. Operational decisions focus on detailed
production scheduling. These decisions include the construction of the master production
schedules, scheduling production on machines, and equipment maintenance. Other
considerations include workload balancing, and quality control measures at a production

10
facility.

11
 Inventory Decisions

These refer to means by which inventories are managed. Inventories exist at every stage of the
supply chain as either raw material, semi-finished or finished goods. They can also be in
process between locations. Their primary purpose is to buffer against any uncertainty that
might exist in the supply chain. Since holding of inventories can cost anywhere between 20 to
40 percent of their value, their efficient management is critical in supply chain operations. It is
strategic in the sense that top management sets goals. However, most researchers have
approached the management of inventory from an operational perspective. These include
deployment strategies (push versus pull), control policies --- the determination of the optimal
levels of order quantities and reorder points, and setting safety stock levels, at each stocking
location.
Transportation Decisions

The mode choice aspects of these decisions are the more strategic ones. These are closely linked
to the inventory decisions, since the best choice of mode is often found by trading-off the cost of
using the particular mode of transport with the indirect cost of inventory associated with that
mode. While air shipments may be fast, reliable, and warrant lesser safety stocks, they are
expensive. Meanwhile shipping by sea or rail may be much cheaper, but they necessitate
holding relatively large amounts of inventory to buffer against the inherent uncertainty
associated with them. Therefore customer service levels and geographic location play vital roles
in such decisions. Since transportation is more than 30 percent of the logistics costs, operating
efficiently makes good economic sense. Shipment sizes (consolidated bulk shipments versus
Lot-for-Lot), routing and scheduling of equipment are keys in effective management of the
firm's transport strategy.

Functions of Supply chain management:

Supplier management: the goal is to reduce the number of suppliers and get them to become
partners in business in a win/win relationship. The benefits are seen in reduced purchase order
(PO) processing costs; increased numbers of POs processed by fewer employees, and reduced
order processing cycle times.
12
 Inventory management: the goal is to shorten the order-ship-bill cycle. When a majority of
partners’ are electronically linked, information faxed or mailed in the past can now be sent
instantly. Documents can be tracked to ensure they received, thus improving auditing
capabilities. The inventory management solution should enable the reduction of inventory
levels, improve inventory turns, and eliminate out-of-stock occurrences.
Distribution management: the goal is to move documents related to shipping (bills of lading,
purchase orders, advanced ship notices, and manifest claims). Paperwork that typically took
days to cycle in the past can now be sent in moments and contain more accurate data, thus
allowing improved resources planning.

Channel management: the goal is to quickly disseminate information about changing

operational conditions to trading partners. In other words, technical, product, and pricing
information that once required repeated telephone calls and countless labor hours to provide
can now be posted to electronic bulletin boards, thus allowing instant access. Thus
electronically linking production with their international distributor and seller networks
eliminates thousands of labor hours per week in the process.

Payment management: the goal is to link the company and the suppliers and distributors so
that payments can be sent and received electronically. This process increases the speed at which
companies can compute invoices, reducing clerical errors and lowering transaction fees and
costs while increasing the number of invoices processed.

Financial management: the goal is enable global companies to manage their money in
various foreign accounts. Companies must work with financial institutions to boost their
ability to deal on a global basis. They need to assess their risk and exposure in global financial
markets and with global information as opposed to local market information.
SUPPLY CHAIN STRATEGY:

Supply chain strategy will have a major impact on creating value for a company and its supply chain
partners. An effective supply chain strategy may be formulated to meet the needs of the market and
integrate them with technology to generate the highest level of customer satisfaction while delivering
the highest value to the shareholders.

13
Collaboration strategy: opportunity for collaboration among
business partners will vary depending upon the organization’s perspective role in the
supply chain.

Manufacturing/supplier collaboration: by collaborating with suppliers, manufacturers

will derive benefits in activities such as products development, order fulfillment and
capacity planning.

Manufacturer/customer collaboration: the opportunities of collaboration between

manufacturers and customers are focused on demand planning and inventory replenishment.
This approach ensures that the customer requirements are met efficiently.

Collaboration with third party and fourth party logistics providers: the collaboration of
companies with 3rd party logistics providers focuses on jointly planning logistics activities.
It also gives the company the added advantage of better packaging. The 4th party logistics
organization is one of the intermediate stages along the logistics spectrum that combine the
benefits of the outsourcing and in sourcing.

Demand flow strategy: traditionally, in supply chain management, the key focus and scope has
been in managing flow of goods from suppliers through the manufacturing and distribution
chain to the customer.
Customer service strategy: customer satisfaction level is directly proportional to the service
provided by the company. Formulating a customer service strategy involves addressing three
steps, namely, customer segmentation, cost to service and revenue management.

Customer segmentation: a company has to decide on the segment it wants to target for a
particular commodity. It can decide not to have a homogenous market, which is unacceptable.

Cost to serve: it is important to obtain an impartial assessment of whether the things that the
customers want the feasible for the company.

14
Revenue management: determination of the appropriate response to the identified needs and
expectations of each customer segment must be completed.The response that maximizes the
firm’s profitability and growth should be determined.

Technology integration strategy: developments in IT enabled the integration of business

information systems, both horizontally and vertically. A number of IT-based supply chain
information management tools are now available to provide intelligent decision support
and execution management

Integrated SCM approach

Supply chain management problems:

Supply chain management must address the following problems:

· Distribution Network Configuration: Number and location of suppliers, production
facilities, distribution centers, warehouses and customers.
· Distribution Strategy: Centralized versus decentralized, direct shipment, pull or push
strategies, third party logistics.
 Information: Integrate systems and processes through the supply chain to share valuable
information, including demand signals, forecasts, inventory and transportation.
Inventory Management: Quantity and location of inventory including raw materials,
work-in-process and finished goods.

Supply Chain Modeling Approaches:

Clearly, each of the above two levels of decisions require a different perspective. The strategic
decisions are, for the most part, global or "all encompassing" in that they try to integrate various
aspects of the supply chain. Consequently, the models that describe these decisions are huge, and
require a considerable amount of data. Often due to the enormity of data requirements, and the
broad scope of decisions, these models provide approximate solutions to the decisions they
describe. The operational decisions, meanwhile, address the day to day operation of the supply
chain. Therefore the models that describe them are often very specific in nature. Due to their
narrow perspective, these models often consider great detail and provide very good, if not
optimal, solutions to the operational decisions.

15
To facilitate a concise review of the literature, and at the same time attempting to accommodate
the above polarity in modeling, we divide the modeling approaches into three areas --- Network
Design, ``Rough Cut" methods, and simulation based methods. The network design methods,
for the most part, provide normative models for the more strategic decisions. These
models typically cover the four major decision areas described earlier, and focus more on the
design aspect of the supply chain; the establishment of the network and the associated flows on
them. "Rough cut" methods, on the other hand, give guiding policies for the operational
decisions. These models typically assume a "single site" (i.e., ignore the network) and add supply
chain characteristics to it, such as explicitly considering the site's relation to the others in the
network. Simulation methods are a method by which a comprehensive supply chain model can be
analyzed, considering both strategic and operational elements. However, as with all
simulation models one can only evaluate the effectiveness of a pre-specified policy rather
than develop new ones. It is the traditional question of "What If?" versus "What's Best?"

Network Design Methods:

As the very name suggests, these methods determine the location of production, stocking, and
sourcing facilities, and paths the product(s) take through them. Such methods tend to be large
scale, and used generally at the inception of the supply chain. The earliest work in this area,
although the term "supply chain" was not in vogue, was by Geoffrion and Graves [1974]. They
introduce a multi-commodity logistics network design model for optimizing annualized finished
product flows from plants to the DC's to the final customers. Geoffrion and Powers [1993] later
give a review of the evolution of distribution strategies over the past twenty years, describing
how the descendants of the above model can accommodate more echelons and cross
commodity detail.

Breitman and Lucas [1987] attempt to provide a framework for a comprehensive model of a
production-distribution system, "PLANETS", that is used to decide what products to produce,
where and how to produce it, which markets to pursue and what resources to use. Parts of this
ambitious project were successfully implemented at General Motors.

16
Cohen and Lee [1985] develop a conceptual framework for manufacturing strategy analysis,
where they describe a series of stochastic sub- models, that considers annualized product flows
from raw material vendors via intermediate plants and distribution echelons to the final
customers. They use heuristic methods to link and optimize these sub- models. They later give an
integrated and readable exposition of their models and methods in Cohen and Lee [1988].

Cohen and Lee [1989] present a normative model for resource deployment in a global
manufacturing and distribution network. Global after-tax profit (profit-
local taxes) is maximized through the design of facility network and control of material flows
within the network. The cost structure consists of variable and fixed costs for material
procurement, production, distribution and transportation. They validate the model by applying it
to analyze the global manufacturing strategies of a personal computer manufacturer.

Finally, Arntzen, Brown, Harrison, and Trafton [1995] provide the most comprehensive
deterministic model for supply chain management. The objective function minimizes a
combination of cost and time elements. Examples of cost elements include purchasing,
manufacturing, pipeline inventory, transportation costs between various sites, duties, and taxes.
Time elements include manufacturing lead times and transit times. Unique to this model was
the explicit consideration of duty and their recovery as the product flowed through different

countries. Implementation of this model at the Digital Equipment Corporation has produced
spectacular results --- savings in the order of $100 million dollars.

Clearly, these network-design based methods add value to the firm in that they lay down the
manufacturing and distribution strategies far into the future. It is imperative that firms at one
time or another make such integrated decisions, encompassing production, location, inventory,
and transportation, and such models are therefore indispensable. Although the above review
shows considerable potential for these models as strategic determinants in the future, they are not
without their shortcomings. Their very nature forces these problems to be of a very large scale.
They are often difficult to solve to optimality. Furthermore, most of the models in this category
are largely deterministic and static in nature. Additionally, those that consider stochastic
elements are very restrictive in nature. In sum, there does not seem to yet be a comprehensive
model that is representative of the true nature of material flows in the supply chain.
17
18
Rough Cut Methods:

These models form the bulk of the supply chain literature, and typically deal with the more
operational or tactical decisions. Most of the integrative research (from a supply chain context)
in the literature seems to take on an inventory management perspective. In fact, the term "Supply
Chain" first appears in the literature as an inventory management approach. The thrust of the
rough cut models is the development of inventory control policies, considering several levels or
echelons together. These models have come to be known as "multi-level" or "multi-echelon"
inventory control models. Company profiles

Indian food processors may be divided into the following main categories:

• Large Indian companies that have their production base in India or neighboring countries
(for tax-saving purposes)
•` Multinational and joint-venture companies that have their production base in India
• Medium/small domestic food-processing companies with a local presence
• Small local players in the unorganized sector

Sector trends

Production:
• The food-processing industry in India has undergone big changes over the last six to seven
years, in terms of types, variety, quality, and presentation of products, which is mainly a result of
the liberalization that led to foreign direct investment (FDI) in the processed food sectors.
• Most food-processing sectors have been brought under the liberal,
transparent, and investor-friendly FDI policy, which allows 100 percent FDI.
• However, the small-scale farming system in India, marketing problems,
lack of grading and standards, poor distribution channels, and onerous government policies
continue to pose problems for the processing industry to source the right type of raw materials
and to discourage more investment in the sector.
• Nevertheless, the proportion of FDI in the food-processing sector to total

19
FDI into India is low, constituting about 4 percent of total FDI inflow from 1991 to 2004.
• Several multinational companies, including US-based companies like
Pepsi, Coca Cola, ConAgra, Cargill, Heinz, Kellogg’s, IFF, and Mars (pet food only) have
entered the Indian food-processing industry with significant investments.
• Indian food and beverage companies are expanding their operations to
neighboring countries like Bangladesh, Nepal, Sri Lanka, Commonwealth of Independent States
countries, and the Middle East.
• The food-processing industry is beginning to focus on, and invest in, advertising and
awareness campaigns about products and brands.
• Companies have added extras to their existing brands, including stylish packaging.
• The growth in the food-processing sector has generated increased interest in high quality
food ingredients in order to produce high quality foods.
• The ready-to-eat food sector is growing at a high rate due to the changing lifestyles of the
middle-class consumers (both partners working, etc.).
• Some previously unknown regional brands are gaining national acceptance because of
consistent quality and product safety, thereby providing some competition to established
companies.
• The GOI is in the process of enacting a Food Safety and Standards Bill,
which if properly done and implemented, would provide increased transparency, better food
safety management systems, and science-based standards.

Consumption:
The following factors influence the type and quality of inputs in processed foods:

• A large and an exceedingly wealthier middle class are creating growing demand for a
wider variety of high quality processed foods.
• The changing age profile (sixty-five million people expected to enter 20-34 year age group
by 2010) and increasing exposure to western-type products and lifestyles.
• The market entry of several multinational food-processing companies and
ingredient suppliers.
• The increasing number of fast food chains.
20
• The recent trend toward a healthier lifestyle has generated a niche market for diet, healthy,
low-calorie, and non-fat food products.
• The increasing urbanization and growing number of working women.
• A slow but steady transformation of the retail food sector in cities.

Competition

India’s domestic industry is the primary competitor for US food-processing and ingredients
suppliers in India. India, with diverse agro-climatic conditions, has a production advantage in
many agricultural goods, with the potential to cultivate a large range of agricultural raw materials
required by the food-processing industry. India is a major producer of spices, spice oils, essential
oils, condiments, and fruit pulps. Significant variations in food habits and culinary traditions
across the country translate into a competitive advantage for small and medium local players,
who are familiar with local food habits and markets imports relatively costly. Existing domestic
food laws restrict the use of several ingredients, flavors, colors, and additives, thus posing an
additional challenge to US exporters interested in the Indian market.

Foreign competition to the United States is mostly from countries in closer geographic proximity
to India, such as Australia and New Zealand. Suppliers from other countries often supply inferior
goods at cheaper prices in comparison to those available from the United States. European
suppliers are major competitors in the food ingredient sector. Several foreign firms, including
some from the United States, have started operations in India.

After all these, find out that in India there are lots of scope for organized sectors like ITC,
BRITTANNIA and PRIYAGOLD to increase the business by applying supply chain
management process for right quantity on right time to right customer.

21
COMPANY PROFILE:

HISTORY OF BISCUITS:
Sweet or salty. Soft or crunchy. Simple or exotic. Everybody loves munching on biscuits, but do
they know how biscuits began? The history of biscuits can be traced back to a recipe created by
the Roman chef Apicius, in which "a thick paste of fine wheat flour was boiled and spread out on
a plate. When it had dried and hardened it was cut up and then fried until crisp, then served with
honey and pepper."
T``he word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus'
(meaning cooked or baked). The word 'Biscotti' is also the generic term for cookies in Italian.
Back then, biscuits were unleavened, hard and thin wafers which, because of their low water
content, were ideal food to store butter and oil. Today, though they are known by different names
the world over, people agree on one thing - nothing beats the biscuit!

Some interesting facts on the origin of other forms of biscuits:

The recipe for oval shaped cookies (that are also known as boudoir biscuits, sponge biscuits,
sponge fingers, Naples biscuits and Savoy biscuits) has changed little in 900 years and dates
back to the house of Savoy in the 11th century France. Peter the Great of Russia seems to have
enjoyed an oval-shaped cookie called "lady fingers" when visiting Louis XV of France.

The macaroon - a small round cookie with crisp crust and a soft interior - seems to have
originated in an Italian monastery in 1792 during the French
Revolution. SPRING-uhr-lee, have been traditional Christmas cookies in Austria and Bavaria for
centuries. They are made from a simple egg, flour and sugar dough and are usually rectangular in
shape. These cookies are made with a leavening agent called ammonium carbonate and baking
ammonia.
The inspiration for fortune cookies dates back to the 12th and 13th Centuries,
when Chinese soldiers slipped rice paper messages into moon cakes to help coordinate their
22
defense against Mongolian invaders

Manufacturing Process of Biscuits

1. Flour and sugar is dispensed into large mixers. The ingredients that are used in smaller
quantities are hand weighed and added into the mixing bowl for each batch of dough to be
mixed.
2. The ingredients are then mixed to form dough in the mixing bowl according to a specific
mixing procedure.

3. The dough is then tipped into a hopper and gravity-fed into the dough sheeting section of
the machine. In this process the dough is fed through various rollers to form a sheet of dough.
Depending on what type of biscuit is being produced, this process varies.

4. Different forming techniques are used to get the required shape and size of the piece of
dough which will form the biscuit.

5. The raw biscuits are transported through a gas-fired oven on a metal conveyor band where
they are baked to form fresh, warm and deliciously smelling biscuits. While still hot, the savory
biscuits are sprayed with oil and one of a number of types of flavoring is added to produce what
is required for that particular biscuit.

6. Biscuits are baked rather than fried, so the oil merely assists the flavour particles to cling
to the biscuit surface. The flavored biscuits then travel along a cooling conveyor in order to cool
off.

7. Once the biscuits have been cooled, they are packed into wrappers, cartons and cases,
ready for distribution to one of the warehouses

8. Quality checks are conducted at key points in the process to ensure process control and
23
product quality is constantly maintained at a high standard.

9. The finished product is then transported in cases to state-of-the-art distribution

warehouses. Stock is loaded as per delivery orders and sent to the various customers

Britannia Industries:

Britannia Industries Limited is an Indian company based in Kolkata that is famous for its
Britannia brand of biscuit, which is highly recognized throughout the country. The Company's
principal activity is the manufacture and sale of biscuits, bread, Rusk, cakes and dairy products
like cheese, butter and milk. The brand names of biscuits include Vita Marie Gold, Tiger
Variants, Nutri choice Junior, Good Day, 50 50 variants and Good Morning. Its Non-Executive
Chairman is Mr. Nusli Wadia, and Chief Executive is Ms. Vinita Bali. The Britannia's fame is
largely acknowledged through the colorful Britannia logos, Indian cricketers such as Virender
Sehwag, and Rahul Dravid wear on their bats.

Britannia's controlling stake is jointly with Groupe Danone and Nusli Wadia. Groupe Danone is
one of the leading players in the world in bakery products business. The Company is based in the
Indian city of Kolkata.

Britannia Industries Ltd (BIL) -- one of India's leading food companies & a leading manufacturer
of biscuits in the country has always been the pioneer in product innovation. Biscuits contribute
to nearly 90 % of Britannia's total turnover, the rest coming from a rapidly growing portfolio that
includes Cakes, Bread and Rusks.

Company overview:

The story of one of India's favorite brands reads almost like a fairy tale. Once upon a time, in
1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now
Kolkata) with an initial investment of Rs. 295. The company we all know as Britannia today.

The beginnings might have been humble-the dreams were anything but. By 1910, with the
24
advent of electricity, Britannia mechanized its operations, and in 1921, it became the first
company east of the Suez Canal to use imported gas ovens. Britannia's business was flourishing.
But, more importantly, Britannia was acquiring a reputation for quality and value. As a result,
during the tragic World War II, the Government reposed its trust in Britannia by contracting it to
supply large quantities of "service biscuits" to the armed forces.

As time moved on, the biscuit market continued to grow… and Britannia grew along with it. In
1975, the Britannia Biscuit Company took over the distribution of biscuits from Parry's who till
now distributed Britannia biscuits in India. In the subsequent public issue of 1978, Indian
shareholding crossed 60%, firmly establishing the Indianness of the firm. The following year,
Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). Four years
later in 1983, it crossed the Rs. 100 crores revenue mark. On the operations front, the company
was making equally dynamic strides. In 1992, it celebrated its Platinum Jubilee. In 1997, the
company unveiled its new corporate identity - "Eat Healthy, Think Better"

Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food
brand of the country. It was equally recognized for its innovative approach to products and
marketing: the Lagaan Match was voted India's most successful promotional activity of the year
2001 while the delicious Britannia 50-50 Maska-Chaska became India's most successful product
launch. In 2002, Britannia's New Business Division formed a joint venture with Fonterra, the
world's second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In
recognition of its vision and accelerating graph, 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.

Today, more than a century after those tentative first steps, Britannia's fairy tale is not only going
strong but blazing new standards, and that miniscule initial investment has grown by leaps and
bounds to crores of rupees in wealth for Britannia's shareholders. The company's offerings are
spread across the spectrum with products ranging from the healthy and economical Tiger biscuits
to the more lifestyle-oriented Milkman Cheese. Having succeeded in garnering the trust of
almost one-third of India's one billion populations and a strong management at the helm means
25
Britannia will continue to dream big on its path of innovation and quality. And millions of
consumers will savoir the results, happily ever after.

Companies values:

The Britannia values are those guidelines that help us add value to the life of the consumer.
Energize your Body and Mind - This is Britannia's Promise to the Consumer - All our actions
should ensure that this promise is delivered to the consumer. Optimized delivery to the AW, the
retailer and the end consumer is how we can deliver this value to the consumer.

Organizational efficiency for healthy eating - This means that the retail relationship management
has to be extremely effective so as to minimize costs and maximize coverage and range in each
store.

Laddering Innovation - There has to be a stretch in the implementation of newer approaches to

access the existing and new consumers.

Horizontal Empowerment- which in case of the sales function, translates to confident interaction
with all customers and consumers such that the company is represented in the best possible
manner.

Britannia to diversify product range:

21st July 2005 Kolkata: Confectionery major Britannia Industries Ltd, a joint venture between
the Nusli Wadia group and Groupe Danone of France, is planning to diversify into other areas of
foods from current product range of biscuit and cakes in order to become a complete food
company, Britannia chairman Nusli Wadia told reporters after the 86th annual general meeting
here today. Britannia earlier had a milk business, which was sold to Britannia New Zealand
26
Foods two years back.

Wadia said the company was now looking into various new areas of foods like snacks and health
drinks but had not yet finalized anything. "The board will take a decision in this regard soon," he
said. According to Wadia, BIL will look for both organic and inorganic growth opportunities for
venturing into new areas of foods.

Commenting on the commodity buying strategy, Wadia said the company would use the
commodity exchanges as a mechanism for hedging. "The company is heavily dependent on
commodities like wheat and sugar. The hedging activity will help control costs. It is now
implementing a commodity buying strategy for managing input cost," added Wadia.

According to him, the focus on cost control and supply chain management yielded savings of
Rs20.2 crores in 2004-05. BIL has already appointed KPMG for supply chain management.
"KPMG is looking into 48 projects like efficient procurement of raw materials, manufacturing
and distribution logistics etc," said Wadia.

The chief executive officer of Britannia, Vinita Bali, said the company was looking at new
distribution channels like malls. "The company is investing around 15-20 per cent of revenue
from a brand into brand promotion," she said. "Our company has six power brands in the
portfolio each exceeding Rs 100 crore in annual sales," she added.

Meanwhile Field Marshal Sam Manekshaw, one of the hero's of 1971 Indo- Pak war, is stepping
down from the board of Britannia Industries. The eminent soldier served in the board of BIL for
more than a decade. "He intimated to the company that he does not seek reappointment. The
company will not propose to fill up the vacancy in the forthcoming annual general meeting," an
official said.

Britannia Industries: Buy

BRITANNIA Industries has sure come a long way from being a company with a stodgy but well-
27
recognized brand name and an inconsistent financial performance in the mid-1990
After a thorough overhaul of the operational structure, a revamp of its product portfolio and an
ambitious foray into new areas, such as dairy products and snack foods, the company has
managed to turn in robust financial performance over the past four years.
The stock market has also taken notice; re-rating the stock, pushing up its price earnings multiple
from 14-15 times in 1997 to around 30 times now. The stock now ranks among the preferred
investment options within the universe of FMCG companies. So, what has driven Britannia's
valuations and what are its prospects?

Robust sales growth

At a time when growth rates for most FMCG products have wound down to single digit,
Britannia has managed to sustain a fairly healthy growth in its sales revenues. This is on account
of several factors. One, the company has rationalized its product portfolio, pruning the number of
brands from 35 to 25, so that it can devote greater attention to key businesses.

It also reduced contribution from the low-margin breads business to focus on faster-growing
segments such as biscuits and cakes. This appears to have resulted in better utilization of the ad
spend. Despite sustaining a high-decibel promotional campaign over the past two years,
Britannia's ad spend-to-sales ratio hovers at around 7 per cent, lowest in the FMCG universe.

Two, in 1998, the company moved into the mass market for biscuits introducing low-priced
varieties under the umbrella brand, Tiger. The success of this brand has enabled Britannia
expand its market share in the `Glucose' biscuit market from 10 per cent to over 20 per cent.

While growth rates in the mid-priced and premium biscuits have flagged, it is Tiger which has
kept Britannia's biscuit business roaring. Meanwhile, the company kept up the high-decibel
promotional campaign to make known its other major brands -- 50:50, Mariegold, Bourbon, Pure
Magic, Nice, Snax and Milk Bikis. Britannia Khao World Cup Jao and Britannia Khao Crorepati
Ban Jao have been among the more successful of these campaigns.

Three, to pep up overall growth rates, the company has also been leveraging its brand image to
28
establish a foothold outside of the highly competitive biscuit market. Over the past couple of
years, it has launched a slew of dairy products (processed cheese, flavored milk, butter, ghee and
dairy whitener) and ethnic snack foods such as Aloo Bhujiya and Chana Choor.

The foray into dairy products appears to be a success, with revenues improving more than two-
fold from Rs 38 crores in 1997-98 to Rs 89 crores in 2000-01. It is more difficult to find
evidence of the success of Britannia's snack food business which faces competition from a host
of local brands, apart from national players such as Pepsi Foods and Haldirams.

However, in both dairy and snack foods, Britannia outsources manufacturing. Therefore, should
these forays fail to contribute on the expected lines; Britannia's losses would be restricted to its
investments in product promotion. A proposed foray into bottled water, which was on the cards
earlier, appears to have been put on the hold.

The trouble spots

Will the Tiger cease to roar? But if robust sales performance is indeed the key behind the re-
rating of the Britannia stock, is the performance likely to be sustained? In this respect, there have
been a couple of negative developments for Britannia.

One, the removal of the excise exemption on low-priced biscuits (costing less than Rs 5 per
pack) in the 2001 Budget is bound to push up costs for the Tiger range of biscuits. Any attempt
to pass on higher costs through a hike in selling prices could well trim the high growth rates
hitherto enjoyed by this mass market brand. This could well mean that for the time being,
Britannia will have to absorb the additional costs arising from the enhanced excise duty.

Two, with the removal of quantitative restrictions on dairy products in the latest Exim Policy,
Britannia could well feel the sting of competition in its emerging dairy business as well. Apart
from expanding the number of brands competing at the premium end, the removal of QRs could
also make it easier for MNCs such as Nestle, which already have a presence in the domestic
market, to import and sell some of their global offerings in India.
29
The removal of QRs on biscuits has already brought a flood of foreign brands on to Indian
shelves. Though these products compete mainly at the premium end, they could pose a threat to
Britannia by intensifying competition in a segment which is already sluggish.With Hindustan
Lever and Nestle India also planning to expand their presence in the confectionery segment, the
threat to Britannia in this segment could be potent.

However, unlike Nestle or Hindustan Lever, Britannia has seldom drawn from the parent's
product portfolio for its domestic product launches. And Groupe Danone, which controls 36 per
cent of Britannia's equity, does not hold a majority stake in Britannia.

The bright spots

Benign input prices are the foremost. After record wheat output over the past two years, prices of
this key input have been soft over the past year, allowing Britannia to earn higher operating
profit margins. The carry-in stocks from the previous year and the fairly healthy output forecast
for the 2000-01 seasons could hold down wheat prices for the time being, allowing Britannia
greater leeway in managing its expenses and absorbing additional costs from the excise duty
hike.

INDUSTRY PROFILE

Competitors start from scratch

As for the threat from the phase-out of the QRs, in respect of biscuits, Britannia has faced this
threat reasonably well over the past one year, without a visible impact on its financial
performance. The proposed foray by Nestle India and Hindustan Lever into confectionery and
dairy products, could pose the only remaining threat to Britannia. On this, Britannia's already
established brand name in the foods business could erect an entry barrier, however temporary,
when it comes to mass market products. Though both HLL and Nestle have the option of
drawing products from their parents' portfolio, these brands would scarcely be familiar names in
India; therefore, investments in brand-building would be necessarily high, at least in the initial
stages. In the bakery business, HLL's acquisition of Modern Foods, the largest bread
manufacturer in India, could pose a threat. However, Britannia's dependence on the bread
30
segment is now negligible, and any extension of the Modern brand to biscuits and cakes could
take some time, affording some breathing space to Britannia.

A `Kwality' acquisition
As to the threat from the slowing sales growth in biscuits, Britannia's recent acquisition of an
equity stake in Kwality Biscuits should provide some spark to the performance over the next one
year. The purchase, which cost Rs 30 crores, would have made but a small dent in Britannia's
overall cash flows. (Britannia generated operating cash flows of Rs 97 crores in 1999-2000) the
Britannia Industries stock, which now trades at a price-earnings multiple of around 30 times its
earnings for 2000-01 (based on nine-month per share earnings of Rs 17), should offer scope for
reasonable capital appreciation over a three-year period.

SHAREHOLDERS can hold the Britannia Industries stock; given its relative low valuation visa
other FMCG players. At its current price-earnings multiple of about 15 times its trailing 12-
month earnings, the stock valuation is at a discount to other FMCG peers, which are hovering at
20-22 times. However, significant price appreciation on the stock is unlikely in the near term.
The company's numbers for the June quarter display a continuing trend of decelerating sales
growth, suggesting loss of market share to rivals in the biscuit business.

Profit growth has been outpacing sales growth due to cost savings. This is likely to continue as
the company ramps up production in the newly- commissioned manufacturing facility in
Uttaranchal and reaps tax savings. The company's ongoing buyback programmed may also
provide a stable underpinning to the stock price.

Sales growth losing steam:

Britannia Industries' sales growth for the just ended June quarter was at 2.7 per cent, indicating
that the company grew at a much slower rate than the sector, which posted double-digit growth.
Sales growth has also been on a steady downward spiral since the December quarter of 2004,
decelerating from 12 per cent in September 2004 to the present 3 per cent. The skidding sales
growth could be a sign that competitors such as ITC's Sun feast are eroding Britannia's
dominance in the biscuit market.
31
ITC has been steadily adding to its biscuit portfolio, with products such as Marie Light, Sun feast
Milky Magic, and rolling out a wide range of cream biscuits under the Sun feast banner. This
enhances competition for Britannia at the premium end of the market, which it has so far
dominated with its `Treat' range of cream biscuits. In the mid-priced segment, with regional
competitors such as Surya Foods (Priyagold) expanding distribution reach, there has been a
significant erosion of pricing power, with product prices remaining unchanged for over two to
three years now. These appear to have taken a toll on Britannia's market share and, thus, sales
growth numbers.
The long-term outlook for Britannia's business will hinge on a revival in sales growth. This will
depend, for now, on the success of product launches such as
Duet Treat, and buoyancy in rural market growth — a key market for the Tiger brand.

Profit growth robust:

While sales growth is winding down, profit growth at Britannia continues to be robust. Net
profits for the June quarter rose a healthy 22 per cent, after adjusting for exceptional items that
magnified the previous year's numbers and suppressed this years'. This is notable given the
inflationary trend in prices of inputs such as sugar and wheat in this particular quarter.
The significant expansion in the company's profit margin suggests that the restructuring
measures put in place over the past year are paying off. Over the past year, Britannia has closed
its manufacturing facilities at Mumbai, reduced its workforce through a VRS and streamlined its
procurement and supply chain. As a result of such measures, cash flows from operations have
risen about 80 per cent in 2004-05 and debt has been trimmed to negligible levels.

Likely to outpace sales growth:

Profit growth could continue to be robust in the coming quarters, as the company shifts a
substantial portion of its biscuit manufacture to its new facility at Uttaranchal, a tax-free zone.
Though this unit was commissioned in April, the company expects the facility to ramp up to full
capacity by the third (December) quarter of this year. Given that Britannia's excise and tax outgo
has been almost flat in the June quarter; one can assume that the benefits from the excise and tax
savings at the new unit are yet to reflect in a big way on the company's numbers.
32
 This offers promise for a further expansion in profitability over the next couple of quarters, if the
company manages to keep a tight rein on input costs. The superior cost-efficiencies in the new
unit could also help relieve some of the pricing pressures on Britannia and help it offer better
value on its brands.

Triggers:

Investors should also watch for a couple of additional triggers to the Britannia stock price. The
company has been steadily shrinking its equity base through buyback of its shares from the open
market. The fourth tranche of the latest buyback program was concluded in 2004-05, at a
maximum price of Rs 650 per share.
If Britannia decides to continue with its open market buyback program, it would be a positive for
the stock, as buybacks have proved to be good tools to protect against downside in stock prices
for other FMCG stocks.

Second, Groupe DANONE, one of Britannia's overseas co-promoters, has recently been the
object of speculation about a possible takeover. Though nothing concrete has happened, any
possible consolidation of DANONE’s food business at the global level with another strong
FMCG player could have implications for Britannia Industries. Shareholders need to watch out
for developments on both these fronts, so that they can be factored into the investment decision.

The origin of eat healthy think better:

Britannia -the 'biscuit' leader with a history-has withstood the tests of time. Part of the reason for
its success has been its ability to resonate with the changes in consumer needs-needs that have
varied significantly across its 100+ year epoch. With consumer democracy reaching new levels,
the one common thread to emerge in recent times has been the shift in lifestyles and a
corresponding awareness of health. People are increasingly becoming conscious of dietary care
and its correlation to wellness and matching the new pace to their lives with improved nutritional
and dietary habits.
33
This new awareness has seen consumers seeking foods that complement their lifestyles while
offering convenience, variety and economy, over and above health and nutrition.

Britannia saw the writing on the wall. Its "Swasth Khao Tan Man Jagao" (Eat Healthy, Think
Better) re-position directly addressed this new trend by promising the new generation a healthy
and nutritious alternative - that was also delightful and tasty.
Thus, the new logo was born, encapsulating the core essence of Britannia - healthy, nutritious,
and optimistic - and combining it with a delightful product range to offer variety and choice to
consumers.

Global partners:

The Wadia Group of India along with Group Danone of France is equal shareholders in ABIL,
UK which is a major shareholder in Britannia Industries Limited. GROUPE DANONE is an
International FMCG Major specializing in Fresh Dairy Products, Bottled Water and
Biscuits/Cereals. One of the World leaders in the food industry, these are some of the laurels it
possesses:
 worldwide in Fresh Dairy Products
 worldwide equally placed in Bottled Water (by volume)
 worldwide in Biscuits and Cereal Products

Through its three core businesses (Fresh Dairy Products, Beverages and Biscuits and Cereal
Products), GROUPE DANONE is committed to improving the lives of people around the world
by providing them with better food products, a wider variety of flavors and healthier pleasures.
Its dominant position worldwide is based on major international brands and on its solid presence
in local markets (about 70% of global sales come from brands that are local market leaders).

34
 CHAPTER :2

REVIEW OF LITERATURE

35
 CHAPTER II
REVIEW OF LITERATURE

36
Market summary:

India’s food-processing sector, though still developing, contributes 14 percent to the

manufacturing GDP (5.5 percent of aggregate GDP), produces goods worth Rs. 2.8 trillion
($64 billion), and employs 13 million people.
Much of India’s food-processing industry is small-scale and involves very little value addition,
although in recent years several multinational food-processing companies have started operations
in India. A plethora of internal restrictions, including (a) prohibition on foreign direct investment
in retail, (b) prohibitions on contract farming, (c) barriers to interstate commerce based on
revenue and food security concerns, (d) some of the highest taxes on processed foods in the
world, and (e) inefficient in infrastructure and marketing networks seriously constrain growth of
the sector.

The almost year-round availability of fresh products across the country, combined with the
consumers’ preference for fresh products and freshly cooked foods has dampened demand for
processed food products. The level of processing varies across segments – ranging from less than
2 percent of the production in the case of fruits and vegetables to over 90 percent in non-
perishable products such as cereals and pulses. In the latter, however, processing involves very
little value addition, and is mostly confined to grading, cleaning, milling, and packing; with
negligible use of additives, preservatives, and flavors.

Level of processing in perishable products:

“Unorganized” in fruits and vegetables includes unbranded pickles, sauces. And potato chips, but
excludes processing by street vendors; “unorganized” in dairy
includes processing by sweet food makers; “unorganized” in marine products includes
processing by small fishermen.

37
According to the Ministry of Food-processing Industries (MFPI), the food- processing industry
over the last decade has grown at an average annual rate of 7.1 percent. This higher rate is
indicative of the relatively low base, the increasing marketable surpluses of agricultural products,
changing consumer life styles and tastes, and the country’s higher disposable income. The
growth is projected at around 7.3 percent per annum over the next five years. Of the estimated
total food sales of rupees 8.6 trillion ($198 billion) in 2003/04, processed food consumption was
valued at Rs. 5.3 trillion ($122 billion), with the share of value-added foods (juice, jams, pickles,
cheese, butter, ghee, processed meat, confectionary and chocolate, alcoholic beverages, aerated
beverages, malted beverages, food services, etc.) estimated at 37 percent.

Entry strategy

It is essential to survey existing and potential markets in India for products before initiating
export sales. The Office of Agricultural Affairs in the American Embassy New Delhi (see
Section V) and market research firms in India can assist new exporters. If the US companies do
have products of promising sales potential in India, they can either set up a base in India or
appoint distributors or agents. The Indian government encourages foreign investment in the
food-processing sector. Hundred percent equity participation or joint ventures with Indian
companies are possible. Tax benefits and incentives are available to companies setting up
operations in Special Economic Zones (SEZ).includes processing by sweet food makers;
“unorganized” in marine products includes processing by small fishermen.

According to the Ministry of Food-processing Industries (MFPI), the food- processing industry
over the last decade has grown at an average annual rate of 7.1 percent. This higher rate is
indicative of the relatively low base, the increasing marketable surpluses of agricultural products,
changing consumer life styles and tastes, and the country’s higher disposable income. The
growth is projected at around 7.3 percent per annum over the next five years. Of the estimated
total food sales of rupees 8.6 trillion ($198 billion) in 2003/04, processed food consumption was
valued at Rs. 5.3 trillion ($122 billion), with the share of value-added foods (juice, jams, pickles,
cheese, butter, ghee, processed meat, confectionary and chocolate, alcoholic beverages, aerated
beverages, malted beverages, food services, etc.) estimated at 37 percent.

38
39
Entry strategy

It is essential to survey existing and potential markets in India for products before initiating
export sales. The Office of Agricultural Affairs in the American Embassy New Delhi (see
Section V) and market research firms in India can assist new exporters. If the US companies do
have products of promising sales potential in India, they can either set up a base in India or
appoint distributors or agents. The Indian government encourages foreign investment in the
food-processing sector. Hundred percent equity participation or joint ventures with Indian
companies are possible. Tax benefits and incentives are available to companies setting up
operations in Special Economic Zones (SEZ).

India’s food-processing industry can be broadly classified into the following categories:

 Fruits and vegetable based products

 Dairy product
 Cooking oils
 Meat and poultry
 Fisheries
 Non-alcoholic beverages
 Alcoholic beverages
 Confectionary
 Grain and grain-based products (milling & baking)

Milling and baking: 75 percent of India’s wheat production is milled into wheat flour (atta) to
make rotis or chapattis (unleavened flat bread), mostly in small chakkis (small wheat grinding
mills) in the unorganized sector. Branded atta is a relatively new segment, developed to provide
consumers a more hygienic quality, as compared to chakki atta. Annual production of branded
atta is about 1 million tons, and is growing at 7 to 9 percent annually. Major players are ITC,
Pillsbury, HLL, Agro Tech Foods, and Shakti Bhog Foods.

40
Bakery products constitute the largest segment of grain-based processed foods. Small and
medium unorganized local players and a limited number of organized units dominate the
industry. Major players are Britannia, HLL, ITC, Parle, Priya Gold, and Cremica.

The grain-based snack market, comprising extruded snacks and savories, is estimated at around
($667 million). Of this, the organized segment contributes only
15 percent of sales. Major players are Pepsi, Haldiram, SM Dyechem, Bikanerwala, etc.
Breakfast cereal production in the organized sector is very small, and is mainly confined to corn
flakes. Major producers are Kellogg’s and Mohan Meakins. Pepsi is reportedly interested in
investing in the breakfast segment over the next five years.
GROUPE DANONE is recognized for the dynamism and strength of its brands:

 DANONE: the leading brand worldwide for Fresh Dairy Products; DANONE represents
almost 20% of the international market. DANONE is present in 40 countries worldwide.

 Evian: the best selling mineral water brand, with 1.5 billion bottles sold every year. Present
in the 5 continents, in 125 countries.
 LU: the second brand worldwide, the first biscuits brand of GROUPE DANONE, which
represents almost the half of the sales for the Biscuits and Cereal Products division. LU is
mainly present in Western Europe.

 Wahaha: the leading brand for refreshing still water (water, readymade tea, fruit juices).
The brand is one of the most popular in China, with more than 1.5 billion liters of water sold
each year. Its name means "the child who laughs".

What’s make a Britannian:

If you think Britannians are extraordinary individuals who are passionate about everything they
do…create inspiration through everything they do…and succeed in everything they do…you’re
probably right. Britannians are hand-picked for a singular purpose…to perpetually ensure Market
Leadership and generate exemplary performance in every function. Britannians exhibit the
following leadership behaviors (we fondly call BULBs – Britannia Universal Leadership Behaviors)

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 Integrity

Team Orientation People

Development Learning
Orientation Customer
Orientation Quality
Orientation Drive for Results

Entrepreneurial Spirit

System and Process Orientation

Communication

Company releases:

Britannia reports robust top line growth of 24%. Mumbai, October 28th, 2006: Britannia Industries
Ltd. (BIL) has delivered its 4th Successive quarter of 20%+ growth.

Net Sales Revenue at Rs. 550 crores represents a growth of 24%. Profit after Tax declined by
Rs. 23 crores for the quarter, impacted by unprecedented and inordinate inflation of 15% - 20% in
commodities like wheat, sugar, milk and edible oils. Biscuit prices to the consumer have remained
firm for the last 5-6 years. Cost effectiveness and technical efficiencies have significantly absorbed
the extraordinary inflation in all input costs. Net Profit is also impacted by the onetime exceptional
income of Rs. 117 Mn available in the previous period (six months ending Sep 05) that did not re-
occur in the current period.

The accelerated trajectory of 20%+ top line growth continued this quarter as well with all of the
company's key brands - Good Day, Tiger, 50:50 etc., and categories, like bread, cakes and exports,
posting double digit growth, in excess of 40%.
Specifically:

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  This quarter's growth of 24% continues the accelerated trend achieved over the last four
quarters - with the Company consistently growing more than 20% each quarter for the last 4
quarters.
 To meet the high rate of growth, the Company is also investing in augmenting its
manufacturing capability with plans to invest over Rs. 150 crores in infrastructure.
 Britannia has led the industry in innovation bringing delightful, 'new to the market' offerings
like 50:50 Pepper Chakkar, MarieGold Doubles, Chota Tiger, Good Day cup cakes. The
range of Festive Packs under the "Greetings" umbrella has doubled sales this Diwali.
 Consistent with its strategy of innovation, Daily Bread in which Britannia had acquired a
strategic stake, has opened its first Italian frozen dessert parlour 'DeLuca's Gelato Italiano' in
Bangalore.

Financial performance Annual Performance (FY 2006)

Britannia's gross sales turnover increased to Rs 18,179 mn in 2005-06 from Rs 16,154 mn in the
previous year, registering a growth of 13%. Operating profit at Rs 1,763 mn increased by 7%,
profit before tax and exceptional items at Rs. 1,958 mn declined by 19% against 2004-05 ,
Impacted by the profit on sale of long term investments that accrued to 'other income' last year.

The Company achieved these results despite significant increases in input cost, particularly
sugar, fuel and Oils, coupled with aggressive pricing in the industry. Your Company's focused
initiatives on commercializing market place opportunities, supply chain efficiencies and overall
cost management resulted in its top line growth and profitability. Operating margin at 10.3% in
2005-06 compared with 10.9% in the previous year was impacted by the inflation in input costs.

Bonus and divided history:

 B This quarter's growth of 24% continues the accelerated trend achieved over the last four
quarters - with the Company consistently growing more than 20% each quarter for the last 4
quarters.
 To meet the high rate of growth, the Company is also investing in augmenting its
manufacturing capability with plans to invest over Rs. 150 crores in infrastructure.
 Britannia has led the industry in innovation bringing delightful, 'new to the market' offerings
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 like 50:50 Pepper Chakkar, MarieGold Doubles, Chota Tiger, Good Day cup cakes. The
range of Festive Packs under the "Greetings" umbrella has doubled sales this Diwali.
 Consistent with its strategy of innovation, Daily Bread in which Britannia had acquired a
strategic stake, has opened its first Italian frozen dessert parlour 'DeLuca's Gelato Italiano' in
Bangalore.
 This quarter's growth of 24% continues the accelerated trend achieved over the last four
quarters - with the Company consistently growing more than 20% each quarter for the last 4
quarters.
 To meet the high rate of growth, the Company is also investing in augmenting its
manufacturing capability with plans to invest over Rs. 150 crores in infrastructure.
 Britannia has led the industry in innovation bringing delightful, 'new to the market' offerings
like 50:50 Pepper Chakkar, MarieGold Doubles, Chota Tiger, Good Day cup cakes. The
range of Festive Packs under the "Greetings" umbrella has doubled sales this Diwali.
 Consistent with its strategy of innovation, Daily Bread in which Britannia had acquired a
strategic stake, has opened its first Italian frozen dessert parlour 'DeLuca's Gelato Italiano' in
Bangalore.
 This quarter's growth of 24% continues the accelerated trend achieved over the last four
quarters - with the Company consistently growing more than 20% each quarter for the last 4
quarters.
 To meet the high rate of growth, the Company is also investing in augmenting its
manufacturing capability with plans to invest over Rs. 150 crores in infrastructure.
 Britannia has led the industry in innovation bringing delightful, 'new to the market' offerings
like 50:50 Pepper Chakkar, MarieGold Doubles, Chota Tiger, Good Day cup cakes. The
range of Festive Packs under the "Greetings" umbrella has doubled sales this Diwali.
 Consistent with its strategy of innovation, Daily Bread in which Britannia had acquired a
strategic stake, has opened its first Italian frozen dessert parlour 'DeLuca's Gelato Italiano' in
Bangalore.
ritannia has an excellent track record of rewarding its shareholders. The company has an
uninterrupted record of distributing dividends for several decades. The dividends declared over the
last 10 years are as under:

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Bonus History

Year Bonus Particulars

1 equity share for every 2
1961 shares held
4 equity shares for every 10 shares
1966 held
2 equity shares for every 3 shares
1968 held
2 equity shares for every 3 shares
1971 held
7 equity shares for every 10 shares
1976 held
2 equity shares for every 5 shares
1984 held
2 equity shares for every 5 shares
1987 held
1 equity share for every 2 shares
1990 held
1 equity share for every 2 shares
2000 held

Brand milestones:

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Overview:

The success of Britannia lies in its strategy of identifying high value opportunities and
capitalizing on them through relevant and differentiated brands, supported by an effective and
efficient supply chain. The fountainhead of this strategy is Brand Building, i.e. increasing consumer
relevance, preference and purchase. The key drivers are availability, presence, and merchandising
for brands that offer consumers a satisfying experience across a variety of consumption occasions,
and price points that represent good value for money.
As a corporate, Britannia has worked for the benefit of all stakeholders - shareholders, consumers,
dealers, suppliers, bankers, and employees. It has established an excellent track record in terms of
its financial performance and dividends distributed to its shareholders. This has been adequately
demonstrated with the Company's top line growing from Rs. 7,523 mn in 1997 to Rs. 18,179 mn in
2006
-a growth of 142% over the last 10 years. The net profit grew even more significantly at 718% from
Rs. 179 mn in 1997 to Rs. 1,464 mn in 2005-06, giving a CAGR of 26.30%.

As of 31st March 2006, the issued and paid up capital of Britannia amounts to 23,890,163
equity shares having a nominal value of Rs. 10/- each. The shareholder base is about 23,000 in
number.

Britannia's shares are listed at the Bombay Stock Exchange, National Stock Exchange and
Calcutta Stock Exchange.

Britannia Marie Gold Doubles:

Everybody's favorite Marie biscuit now comes in a completely new avatar! Recently launched in
Tamil Nadu, Britannia Marie Gold Doubles is all about doubling expectations and experience.
Naturally, everything about it is new and exciting. This special variant of Marie, through a patented
production process, offers three delicious layers in a new flavor concept - with the same old
crispiness and a subtle new taste. The shape of the new Marie Gold Doubles biscuit is completely
altered and nowhere resembles the classic round Marie biscuit. The premium packaging is also a
breakthrough design with an outer sleeve and unique shape. So whether people savor the biscuit
themselves or gift it, Britannia Marie Gold Doubles is definitely double the enjoyment!

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More Power to Britannia Treat!

In a one-of-its-kind tie-up with the immensely popular kids' show "Power Rangers" on Toon Disney,
Britannia Treat created a huge buzz amongst kids. The brand activity targeted children in three cities
- Delhi, Mumbai and Bangalore - at various touch points such as schools, malls, residential colonies
and amusement parks. The idea behind it was to bring fun and adventure into the Britannia Treat
brand of cream biscuits with the help of a unique new collectible toy - the Power Rangers Shooter.
These exciting new toys were available with packs of Britannia Treat, and kids had to collect them to
solve the "Power Rangers" contest. An eye-catching float, specially designed to promote this contest,
was moved around these cities and became the pulse point of "Shooter Mania". At the end of 10
days, the activity touched 225 schools across the three cities and reached more than 50,000 kids -
and got every kid talking about Britannia Treat.

Britannia Tiger's 'Alti Palti' Offer for Children:

Alti Palti was an exciting offer to go with the most popular biscuit in the country - Britannia Tiger.
Children love ventricular or 3D picture collections and Tiger biscuits gave them just that. With the
purchase of Britannia Tiger, kids collected ventricular gifts such as rulers, book labels, bag tags and
stickers. Each gift had the animated Tiger mascot on it doing crazy things like skateboarding,
cycling, dancing and more
.As part of the promotion, a life-size Tiger mascot visited select schools and distributed the 3D
collection to the lucky children. They even got to photograph themselves with their favorite Tiger!
This exciting offer ran at retail stores across the country. Buzz was created with in-store display
materials like attractive dispensers and branded posters all based on the Alti Palti theme.
Britannia 50-50 Pepper Chakkar :

The launch of the latest 50-50 variant left everybody guessing "What it eez?" From TV ads, radio,
outdoor and in-store display materials to events, a website and SMS and email blasts, traditional and
new media were blended synergistically to create excitement and curiosity about the unique taste of
the biscuit. The tangy and distinctive pepper flavored biscuit, that's thin and crispy and more like a
snack, caught the imagination of a younger audience craving something to nibble on. The 50-50
Pepper Chakkar launch is truly a case of leveraging the marketing mix to best advantage.

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Recent Developments

A new initiative taken by Britannia, to cater to all the taste fads of the consumer, seeks to
widen the range of its snack foods. This will be Britannia's biggest challenge in the next few years.
Meanwhile in existing categories of biscuits and baked products, innovation will be the key
principle.

A host of new flavors and food- formats, as never seen before in the Indian market, are due to
enter the market in 2004. Thus, Britannia will continue to define the Indian market in biscuits and
other food products.

Promotion:

The role of promotions for Britannia is especially important in this highly fragmented
and competitive market. Today, the company prides itself on communication that is innovative,
yet constantly able to strike a chord in the consumers' hearts and minds. Britannia's promotions
have virtually redefined consumer expectations from this category.

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To reach out to the Indian consumer, Britannia has successfully leveraged India's two prime
passions - cricket and movies. Britannia addressed these platforms in a manner true to its
unique innovative style. It capitalized on every Indian's dream to watch a cricket World Cup
match and created the 'Britannia Khao, World Cup Jao' contest in 1999. It based itself on
instant gratification. The entire consumer needed to do was buy packs of Britannia biscuits,
scratch a lucky card and win an all-expenses paid trip to England to watch a World Cup
match. This promotion was so successful that it set a trend that has got every company
scrambling for tickets to take their consumers for the World Cup. This promotion was
repeated successfully in 2002/03 with the destination of choice being South Africa. Taking
the success further was the promotion of 'Britannia Khao, Cricketer Ban Jao' that was fuelled
by the need of every Indian to be a part of the passion called cricket. Britannia followed it
up with another unique promotion; a vehicle that dealt with India's other passion - movies. A
promotion called 'Britannia Lagaan Match' that revolved around a movie called Lagaan was
based on a cricket match. This promotion gave the consumer a chance to interact with the
film stars and also get to play cricket with them. The match had over 40,000 spectators and
made the headlines of leading newspapers and news channels.

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Brand Values:

The Britannia brand is all about eating healthy, to lead a better life. It advocates values
that stand for health, hygiene, family, trust and taste. It reflects the strong link between
physical and mental well- being that is so important to a person, and is typically a result of
what one eats. Today, Britannia, driven by a passion for excellence, manifested by its
innovative thinking, has been able to weave itself into the fabric of the consumer's everyday
life. While Britannia strives to give consumers a healthier life, the consumer on the other
hand, has come to expect innovation from Britannia's offerings - a huge challenge for the
company.

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 CHAPTER : 3

RESEARCH METHODOLOGY

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Research methodology

The non-exploratory research methodology will be used for thesis writing.

Objectives:

Analyze the effects of supply chain management on Britannia industries process. Supplier Chain

management in Britannia industries visa priyagold biscuits.

To provide possible strategies for better implementation in SCM in Britannia industries

Research instruments:-

The secondary data will be collected through internet, books and the materials published in
journals and magazines.

Scope of the study:

In competitive scenario how to increases the business with the implementation of supply chain
management.

Limitations:

Not private data’s or primary data’s which really give correct information

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 CHAPTER : 4

DATA REDUCTION, PRESENTATION & ANALYSIS

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 Milestones

The Genesis - Britannia established with an investment of Rs.

1892
295 in Kolkata
Advent of electricity sees operations
1910
mechanized
Imported machinery introduced; Britannia becomes the
1921 first company East of the Suez to use gas ovens

1939 – 44 Sales rise exponentially to Rs.16,27,202 in 1939 During

1944 sales ramp up by more than eight times to
1939 – 44 reach Rs.1.36crores
Britannia Biscuit Company takes over biscuit distribution from Parry
1975

1978 Public issue - Indian shareholding crosses 60%

1979 Re-christened Britannia Industries Ltd. (BIL)

1989 The Executive Office relocated to Bangalore

1992 BIL celebrates its Platinum Jubilee

Wadia Group acquires stake in ABIL, UK and becomes an equal
1993
partner with Groupe DANONE in BIL Volumes cross
1994 1,00,000 tons of biscuits
BIL enters the dairy products market"Britannia Khao World
1999 Cup Jao" - a major success! Profit up by 37%

Forbes Global Ranking - Britannia among Top 300 small

2000 companies

Forbes Global Ranking - Britannia among Top 300 small

2001 Companies

2002 BIL ranked one of India's biggest No 1 Brand

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 CHAPTER : 5

DATA INTERPRETATION

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DATA ANALYSIS:

As per my analysis I find out these factors in both companies:

Data Interpretation of Britannia industries:

- The Company's principal activity is the manufacture and sale of biscuits, bread, Rusk, cakes
and dairy products like cheese, butter and milk.
- Britannia products are sold in over two million outlets, reaching millions of consumers
who buy approximately 2.4 billion packs each year.
- A small army keeps Britannia going-over 100 stock-keeping units, 3000 employees over
1500 authorized whole sellers. 53 depots and 46 factories. All - -
- Britannia biscuits sold in a year would stand 10000 times taller than Mount Everest.
- Launched in 1997, tiger became the largest selling Britannia biscuit brand in just four months
of launch. It crossed the rs. One billion sales mark in its very first year and growing stronger.
- Britannia's controlling stake is jointly with Groupe Danone and Nusli Wadia. Groupe
Danone is one of the leading players in the world in bakery products business
- Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent
food brand of the country. It was equally recognized for its innovative approach to products
and marketing.
- Britannia will continue to dream big on its path of innovation and quality The focus on
cost control and supply chain management yielded savings of
Rs20.2 crores in 2004-05.

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 INTERPRETATION:

Britannia industries covering more market share.

Britannia is a global brand and it has global partners like Groupe Danone and Nusli
Wadia.
Brand value of Britannia is more as compare to any other bakery industries. As per the
products categories Britannia is in biscuits, breads, and packed food.
A Britannia biscuit is an industry but priyagold is the product of company Surya Food &
Agro Ltd which produces juice also.
Britannia has covering both rural and urban areas but priyagold only urban Giving
divided and bonus to shareholders and registered in BSE, NSE stock exchange.
Britannia has wide network with big infrastructure, new technology and good customer
relations.
Britannia is working on supply chain.
Britannia biscuits have wide variety and flavor in biscuits. But priyagold is not as much.

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 CHAPTER :

SUMMARY AND CONCLUSION

 SUGGESTIONS

Among the factors, which have contributed the most towards growth are market related factors
and IT factors like rise in e-commerce and usage of Internet.
The food and beverage industry has very small margins and is very dynamic
for these accurate supply chain information is absolutely key, not just for planning, but also for
operational efficiency. Britannia biscuits industries has a great opportunity to take advantage of
the modern technologies available that can help it to increase the level of customer service,
create new operational efficiencies, reduce risk, and increase profitability. It’s still a vastly
untapped area of supply chain management.
The common factors which have contributed towards manufacturing and service both are rise in
e commerce and sourcing out. Globalisation and Liberalisation policies have benefited the
service sector more than the manufacturing sector.

Improving supply chain processes requires better collaboration between retailers and suppliers.
So keep good relation with them.
The customers today are not very forgiving, referring to the consequences of missed delivery
schedules. If a company was able to manufacture a product with the right quality and the right
price but missed on delivery, the other two got nullified. So company should deliver on right
time. Services should be standardized.

Managing the supply chain was not just about transportation of goods. It was about managing
the mismatch of stocks, looking at high inventory and eliminating premium freight, and
managing many suppliers.

There is the need for improving infrastructure to take advantage of the wave of outsourcing.

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 CONCLUSIONS

During this thesis I have read lots of material about the organization and their process of
manufacturing the products. I find one similarity between these is that the organizations want
value for their money. They want quality and quick services. This is because time saved is the
money gained. So that organizations fulfill the requirement of the customers with the satisfaction
and make good relations. Britannia industries also try to give maximum satisfaction to their
customers. The company main motive is to provide the right quality to right customer at right
time with satisfaction. Company is using supply chains to control the cost.

The Britannia brand is all about eating healthy, to lead a better life. It advocates values that stand
for health, hygiene, family, trust and taste. It reflects the strong link between physical and mental
well-being that is so important to a person, and is typically a result of what one eats. Today,
Britannia, driven by a passion for excellence, manifested by its innovative thinking, has been
able to weave itself into the fabric of the consumer's everyday life. While Britannia strives to
give consumers a healthier life, the consumer on the other hand, has come to expect innovation
from Britannia's offerings - a huge challenge for the company.

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Page 83 of 77
 ANNEXURE

1. GENDER

· Male
· Female

2. AGE

· 20-30
· 31-40
· 41-50

3. OCCUPATION

· Govt .Employees
· Pvt. Employees
· Self Employed

4. MONTHLY (FAMILY) INCOME

· 10000 and above
· 15000 and above
· 20000 and above

5. Are you from the urban area or rural area?

· Urban Area
· Rural Area

6. Are you aware of the promotion activities launch by the

Britannia Industry Schemes?
· Aware abou tthe schemes
· Not Aware

7. How long you are working in the organization?

· 0–2 Years
· 2–5 Years
· 5–10 Years

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8. Are you comfortable with the Supply Chain Process in Britannia?
· Good
· Satisfied
· Bad

9. What are processes of implementation of new Supply Chain Process?

· Top Management Decision
· Branch Manager Level
· Both

10. Do you know who you rcritical suppliers are what exposures
they face for at least one productline?
· Yes
· No

11. Are supplie rexposures integrated in the decision to select a supplier?

· Yes
· No

12. Have you developed supply chain risk mitigation strategy?

- Yes
- No

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