Today we are discussing a biscuit manufacturing company called Britannia.
The company was established in 1892 by a group of British businessmen with an investment of ₹265. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the Gupta brothers mainly Nalin Chandra Gupta, an attorney, and operated under the name “V.K Brothers.” In 1918, C.H. Holmes, an English businessman based in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited was launched. The Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling interest in Britannia. Biscuits were in high demand during World War II, which gave a boost to the company’s sales. The company name was changed to the current “Britannia Industries Limited” in 1979. In 1982, the American company Nabisco Brands, Inc. acquired the parent of Peek Freans and became a major foreign shareholder.
A few years later, control moved through a complicated process, which is still not fully understood, to Rajan Pillai, a Kerala-based businessman and a crony of Nusli Wadia. The two cronies fell out with each other and an uprorious corporate drama unfolded. It ended after the death of Rajan Pillai in police custody and the confirmed takeover of control by Nusli Wadia.
The company’s principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products
Biscuits account for 90% of Brittania’s annual revenue. The company’s factories have an annual capacity of 433,000 tonnes. The brand names of Brittania’s biscuits include VitaMarieGold, Tiger, Nutrichoice Junior, Good day, 50 50, Treat, Pure Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice and Little Hearts among others.
Dairy products contribute close to 10% to Britannia’s revenue. The company not only markets dairy products to the public but also trades dairy commodities business-to-business. Its dairy portfolio grew to 47% in 2000-01 and by 30% in 2001-02
Between 1998 and 2001, the company’s sales grew at a compound annual rate of 16% against the market, and operating profits reached 18%. Britannia is one of India’s 100 Most Trusted brands listed in The Brand Trust Report. Britannia has an estimated market share of 38%.
#Now come to the investment call
Company’s balance sheet
Here’s the Link
Now comes to the annual revenue during FY 2017-18 9829.52 Crore with net profit of 1004.14 with an EPS of 83.64
During FY 2018-19 10973.46 Crore with net profit of 1146.53 with an EPS of 48.12
Currently stock is trading nearly 2700 currently there is a tough way for FMCG company’s to grow some the big names Nestle, ITC, Dabur, Patanjali etc
But in Long run it will definitely go on the upside because India is growing right now
#So I would suggest a buy on Britannia on staggered manner