The Business Model of Britannia: The Untold Model of The Household Name

Damini Bhandary Damini Bhandary
Sep 16, 2021 6 min read
The Business Model of Britannia: The Untold Model of The Household Name

It is almost impossible to not hear about Britannia while living in India. This household name has conquered the country with its spectacular food products, which have been tasted by almost everyone. From starting a ‘Good Day’ by being the partner of a cup of tea to patch up the broken hearts with ‘Little Hearts’. It has done everything, to be one of the leading food companies in India specializing in bakery and dairy products.

Britannia, the name of the brand itself speaks its value. Since the 1990s, it has fallen under the Wadia group that has now been lead by Nusli Wadia. It has been a part of the country for over a hundred years and has been serving the taste buds of many generations.  From biscuits to cheese, to cakes, you name it, they have it.

The success that this company tastes is a result of a structured business model. Let’s find out about the model that helps the business to climb the stairs, to reach the top position.

Legacy of Britannia
Where Does Britannia Operate?
Products of Britannia
Target Audience of Britannia
Business Model of Britannia
What is unique about Britannia’s Business Model?
How Does Britannia Make Money through Its Business Model?
FAQ

Legacy of Britannia

The history of Britannia is just like the taste of its products, rich and fascinating. In 1892, the Britannia industry was founded by some English businessmen and the investment was of just ₹295. It was started as a mere bakery at first.

Later on 21st March of 1918, another businessman, named C.H. Holmes becomes a partner and the Britannia Biscuit Company Limited came into existence. Initially, Britannia was only manufacturing biscuits and was selling them. Although, in 1997, they started producing dairy products as well, since then it hasn’t looked back.

Where Does Britannia Operate?

Britannia has its footprints in more than 60 countries and has been serving them nonchalantly. Especially, it has conquered the hearts of the Middle Easterns, by locally manufacturing its products in UAE and Oman. International Bakery products serve as the subsidiary of Britannia. The main headquarters of the company is in Kolkata. Britannia products are distributed among over 5 million stores in the country.


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Products of Britannia

As mentioned before, Britannia manufactures and sells Bakery and dairy items.

  • Bread and Buns -Britannia bread, Atta Kulcha bread, Britannia Pav, Britannia sweet bun, Britannia fruit bun
  • Biscuits -Good Day, Britannia Crackers 50-50, JimJam, Milk Bikis, Tiger, Marie Gold, Little Hearts, Bourbon, Nutri Choice
  • Cakes- Britannia Gobbles, Britannia Muffins, Tiffin Fun
  • Dairy - Cheese, Milk, Butter, Ghee Yoghurt

Target Audience of Britannia

The target audience of Britannia is not limited to a certain age group or of an income group. It is truly for anyone and everyone. Products like Little Hearts, Tiffin cakes are used, to appeal the kids. Nutri Choice is for those who are a little bit health-conscious. Marie Gold caters to the need of the older generation as well.

Business Model of Britannia

Britannia is a brand that decided to serve the people with utmost care with deliciousness and nutrition. It basically focuses on two things, Bakery products, and Dairy products. Its main motive is to provide healthy and nutritious food items to the people. With that target, it has become the first food company that has zero Trans Fat in its food items.

It mostly deals with the outdoor and traditional forms of advertisements for its marketing strategy. It placed its bets on Television and radio advertisements, thus attracting almost every group of consumers.

Net profit of Britannia Industries Limited
Net profit of Britannia Industries Limited

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What is unique about Britannia’s Business Model?

Britannia becomes one of the leading Indian bakery brands by following some unique strategies. It has 13 factories located all over the country and has 4 franchises.

Some of the key points of Britannia’s business models that make it unique are:

  • Its main objective is to promote biscuits of the Britannia brand more than other products.
  • It concentrates on providing food items to its customers that will fulfill their daily need for nutrition.
  • It believes in quality food items that deal with fruits, nuts, seeds, pulses, dairy, and protein substances that are necessary for the healthy growth of a normal human being.
  • Focuses on producing better quality food and selling them economically in prices for every income group.
  • It has joined hands with the Government and different NGOs to fight against malnutrition and undernutrition prevailing in the country.
  • It has started the Britannia Cares program that offers fitness activities to ensure a healthy lifestyle amongst its employees.
  • To counter attack micronutrient deficiencies in India, it has taken steps to avoid all those products that are harmful according to the Food Safety and Standards Authority of India (FSSAI)
  • Britannia also decided to curb down the salt and sugar limit of its snacks to promote Eat Right Movement by FSSAI in 2018.

How Does Britannia Make Money?

There is a number of ways Britannia makes money although its main focus is to provide nutritional elements through their food items to everyone.

  • Britannia’s revenue depends on the sale of its bakery and dairy products.
  • 95% of sales depend on the products dealing with biscuits.
  • 5% of sales depends on dairy products.

Britannia has signed a deal of joint venture with a Greek Company named Chipita S.A to produce and sell ready-to-eat croissants in India. It is also working on expanding its demand abroad, especially in Africa and South East Asia.


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Did You Know?

Some of the interesting facts of Britannia are:

  • In 1921, Britannia becomes the first company from the East of The Suez Canal to import and use gas ovens.
  • The trust Britannia has created from their initial days made it possible for them to supply biscuits to the British army during World War II.
  • It is one of the oldest biscuit companies in India and carrying its legacy since 1918.

Conclusion

‘Britannia’, this name carries the trust of millions of people. From providing biscuits to the soldiers during World War II  to being responsible by taking steps to eradicate malnutrition and undernutrition from the country. It has come a long way to be one of the biggest Food and Beverage companies of India.

FAQ

What is the revenue of Britannia?

The revenue of Britannia was ₹11,878.95 Crores (US$1.7billion) in 2020.

Who is the CEO of Britannia?

The current CEO of Britannia is Varun Berry.

When was Britannia founded?

Britannia is one of the oldest companies in India founded in 1892 and is headquartered in Kolkata.

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