Britannia's Story: How It Began With Just Rs 295 & Grown Into Rs 1 Trillion FMCG Giant?

In the year 1892, a group of British businessmen formed a company in a room of a small house in Kolkata with only Rs 295.

And now, 130 years later, that company is one of the biggest FMCG companies in India. We are talking about Britannia. Just as recently as November 2022, Britannia¡¯s shares zoomed to an all-time high on the back of strong revenue growth in the June-September quarter, which resulted in Britannia entering the Rs 1 trillion market value club.

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But how did the FMCG giant turn into a Rs 1 trillion company after starting with just Rs 295? Read on as we unfold Britannia¡¯s story.

How It Began

Britannia was founded in 1892 by a group of British businessmen with a mere Rs 295 investment. 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.S. Brothers."

Later in 1918, C.H. Holmes, an English businessman based in Kolkata, was taken on as a partner, and The Britannia Biscuit Company Limited (BBCo) was finally launched. The Mumbai factory was set up in 1924, and Peek Freans UK acquired a controlling interest in BBCo.

Also Read: The Story Of Parle-G

The Role Of World War II

As biscuits were in high demand during World War II (1939¨C1945), this gave a boost to Britannia's sales as it supplied biscuits to the British army.

Reuters

Later, the company¡¯s name was changed to the current one, "Britannia Industries Limited," in 1979.

In 1982, the American company Nabisco Brands, Inc. acquired the parent company of Peek Freans and became a major foreign shareholder.

Also Read: Parle Crosses $2 Billion In Annual Revenue

Building The Brand

After 1979, the combined sales of biscuits and bread allowed Britannia to grow at an exceptional pace. However, the brand's popularity was still limited to the country's major cities.

The company soon realised that they needed to expand their brand name if they wanted to become the go-to company for everyday food items.

That is what led to the beginning of Britannia's dairy product manufacturing in 1997.

Along with that, they managed to start several manufacturing plants across the country. In the same year, they introduced products such as Tiger biscuits, Checkers, and Jim Jams, which are still popular even now. Their affordability, taste, and quality have enabled them to remain popular even after such a long period.

Other brand names of Britannia's biscuits include 50-50, Nutrichoice, Good Day, Pure Magic, and Milk Bikis, Bourbon, Nice Time, and Little Hearts, among others.

Recent Financial Result

For the June-September quarter, Britannia Industries reported a 28.47% jump in consolidated net profit to Rs 490.58 crore. Britannia¡¯s total revenue from operations climbed 21.40% to Rs 4,379.61 crore.

As per the PTI report, this was Britannia¡¯s highest quarterly revenue. Total expenses for the FMCG giant were Rs 3,773.71 crore in the September quarter.

Currently, Britannia Industries is headed by Rajneet Kohli as CEO and Varun Berry as Executive Vice-Chairman & MD.

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Hitting The Rs 1 Trillion Mark

In November 2022, the stock of Britannia jumped 10% through a sharp rally in the stock price on the back of strong quarterly results. This increase aided Britannia in reaching the Rs 1 trillion market capitalization (m-cap). Currently, Britannia's market cap is Rs 1.06 trillion, and its shares are up 22% this year to date.

In comparison to Britannia, Parle has a market cap of 110.46 million, and its shares are currently down 11% this year to date. On the other hand, Nestle India¡¯s market cap is Rs 1.95 trillion, and its shares are up 3% year to date.

Also Read: The Success Story Of Zara: From Starting With Just 30 Euros To Owning Nearly 7,000 Stores Today

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