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OPERATION MANAGEMENT BRITANNIA INDUSTRIES LTD

By Shashank Narayan 2011MB25

CONTENTS

Industry overview Britannia industry Value chain Strategy formulation process Plant location Forecasting Conclusion Reference

INDUSTRY OVERVIEW

Biscuit industry comes under the fast clock speed category. The total production of biscuits in India is estimated to be around 30 lakh MT, the organized sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume. The organized sector is valued at above Rs 8000 crores. The biscuit industry is estimated to grow over 15-17% in the next few years. The per capita consumption of biscuits in India is 2.0 kg. India is ranked 3rd after US and China amongst the global biscuits producers. The penetration of biscuits in urban and rural market is 85% and 55% respectively. The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people indirectly

MARKET SHARE BREAKDOWN

The Indian biscuit industry is dominated by brands like Parle, Britannia and Sunfeast.

BRITANNIA INDUSTRIES

INTRODUCTION

In 1892 to be precise, a biscuit company was started in a nondescript house in Kolkata with an initial investment of Rs. 295, the company we all know as Britannia today. Britannia strode into the 21st Century as one of India's biggest brands and the pre-eminent food brand of the country In 2002 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. Britannia will continue to dream big on its path of innovation and quality and millions of consumers will savour the results, happily ever after.

AMONG THE TOP 10 BRANDS IN THIS COUNTRY FOR THE LAST 10 YEARS. NO 1 FOOD BRAND

MILESTONES

1892- The Genesis - Britannia established with an investment of Rs. 295 in Kolkata. 1921-Imported machinery introduced; Britannia becomes the first company East of the Suez to use gas oven. 1975-Britannia Biscuit Company takes over biscuit distribution from Parry's 1979- Re-christened Britannia Industries Ltd. (BIL) 1983- Sales cross Rs.100 crore 1989- The Executive Office relocated to Bangalore 1997- Re-birth - new corporate identity 'Eat Healthy, Think Better' leads to new mission: 'Make every third Indian a Britannia consumer BIL enters the dairy products market

CONTD

2000 -Forbes Global Ranking - Britannia among Top 200 small

companies .

2001- BIL ranked one of India's biggest brands No.1 food brand of the country Britannia Lagaan Match: India's most successful promotional activity of the year Maska Chaska: India's most successful FMCG launch.2003- Treat Duet'- most successful launch of the year Britannia Khao World Cup Jao rocks the consumer lives yet again. 2005- Re-birth of Tiger - 'Swasth Khao, Tiger Ban Jao' becomes the popular chant! 2011- Always committed to constant innovation, Britannia launched Britannia Healthy Start in Mumbai in January 2011. Britannia received the Most Respected Company Award 2011 from Business world. Britannia further enhanced its foray into healthy milk based drinks by launching TigerZor Choco Milk & TigerZor Badam Milk in May 2011.

PRODUCT SERVICE CONTINUUM

SERVICES

PRODUCT

INCREASING RELEVANCE AND FOOTPRINT OF BRITANNIA

PRODUCT THAT HAD CREATED DIFFERENCE

Any Time, Any Where and on-thego consumption

Delight that is affordable to all

CONTD.Combining Health and Taste

Rusk?

Food as entertainment: Delighting through morphingBiscuit

Biscuit ?

Salty Snack?

NEW PRODUCT

VALUE CHAIN

VALUE CHAINCustomer layer Operation support layer

Core operation layer

Layer of innovation

Supplier layer

CONTD.Customer layer- Customers, retailer.Operation support layer- Planning, Quality, Material. Core operation layer -Testing , machinery. Layer of innovation -Strategy formulation. Supplier layer -Suppliers.

Strategic Formulation Process

Competitive dynamic at market place

Order winners & order qualifiers

Strategic options for sustaining competitive

Generic competitive priorities

Firms level strength and weakness

Corporate strategy

Strategic decision for operation system

Operational strategy

Measures for operational excellence

SWOT ANALYSISStrengths Provides good quality of biscuits Variable products range Excellent supply of products whenever required Widely accepted in all generations WeaknessQuantity of biscuits is less compare to its competitors, as they concentrate more on quality. Similar kind of Britannia product available in the market made by its competitors

CONTD

OpportunityChanging demographics (young, higher disposable income, experimental, urbanization, willingness to spend) Greater awareness of health and nutrition. ThreatsCompetition from existing players. New consumption moments, new consumers, new needs and desires

COMPETITIVE ADVANTAGEExpanding product range Manufacturing standard Recent modification Productivity enhancement program Innovation-an R and D breakthrough Aiming high

VISIBLITYCollege canteen Corporate Canteen

Railway Station

PLANT LOCATION

Mumbai Chennai Kolkata Uttarakhand Delhi

FACTORS THAT AFFECT LOCATION

UDYOG MITRA Land Bank Power Resource Good Quality of Life Availability of raw material Availability of skilled and cheap labour

Source-According to Uttarakhand plant

BISCUIT PRODUCTION LINE LAYOUTRepetitive Process - Line Process Steps of manufacturing process: i. Mixing ii. Forming iii. Baking iv. Cooling v. Packaging

QUALITY STANDARDS

Britannia strives to excel in quality standards, not only with respect to the products and packs it sells but also in its operations by establishing stringent quality systems and processes at critical points of the supply chain. Several innovative technology projects for achieving cost and quality advantages have been implemented. This helps in producing new products

QUALITY PROCESSES IN VARIOUS FACETS OF THE SUPPLY CHAIN :

Daily quality measurements Food Safety Certifications in the form of ISO 22000 Quality audits Vendor quality improvement programmes Regulatory processes Training

WHY IS FORECASTING NEEDED?

Sales forecasting is an important activity in Britannia sales process ,because Britannia deals with biscuits and cake products whose sales depend greatly on the taste preferences of the people. Moreover Britannia targets the urban as well rural market both of which need different strategy. Urban market is highly competitive and very dynamic in terms of different products brand and various price ranges. So Britannia periodically(3-6 months)reviews the sales turnover of its new as well as established products brands by collecting the monthly sales data from the retailers during the regular visits.

CONCLUSION

The opportunity is large and Britannia is well positioned to exploit it. Biscuit continues to be the most affordable packaged food, registering robust growth. Investing in people, brands infrastructure will enhance overall capability & competitiveness Company wishes to introduce a new product category in the market. Enter into various areas of food like snacks and health drinks. Boost sales with aggressive brand building strategies. Enter family size pack. Look out for both organic and inorganic growth.

REFERENCES

www.britannia.co.in Analyst Meet 21stFebruary 2011 money.rediff.com/companies/britannia-industries www.business-standard.com www.britannia.co.in/companyoverview_overview.htm http://www.britannia.co.in/companyreleases.htm http://www.britannia.co.in/investerzone_bonus_financial.htm http://www.britannia.co.in/be_brit_whatweoffer.htm