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MINOR PROJECT REPORT ON Cost Sheet Analysis of Britannia Bread SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD

OF THE DEGREE OF BACHELOR IN BUSINESS ADMINISTRATION

UNDER THE GUIDANCE OF: Ms. NITIKA SHARMA Assistant Professor/ Associate Professor/ Professor, RDIAS SUBMITTED BY: Name of the Student Rinki Khatri Enrollment No. 03515901711 BBA, Semester 3 Batch 2011 2013

RUKMINI DEVI INSTITUTE OF ADVANCED STUDIES NAAC Accredited A Grade Category Institute High Grading 81.7% by joint Assessment An ISO 9001:2008 Certified Institute (Approved by AICTE, HRD Ministry, Govt. of India) Affiliated to Guru Gobind Singh Indraprastha University, Delhi 2A & 2B, Madhuban Chowk, Outer Ring Road, Phase-1, Delhi-110085
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Cost Sheet Analysis of Britannia Bread

STUDENT s DECLARATION

This is to certify that I have completed the Project titled COST SHEET ANALYSIS OF BRITANNIA BREAD under the guidance of Ms. NITIKA SHARMA in the partial fulfillment of the requirement for the award of the degree of Bachelor in Business Administration from Rukmini Devi Institute of Advanced Studies, New Delhi.

This is an original work and I have not submitted it earlier elsewhere.

Name of the Student RINKI KHATRI Enrollment No. - 03515901711 Class & Section- BBA SEMESTER 3

CERTIFICATE OF GUIDE

This is to certify that the project titled COST SHEET ANALYSIS OF BRITANNIA BREAD is an academic work done by RINKI KHATRI submitted in the partial fulfillment of the requirement for the award of the degree of Bachelors in Business Administration from Rukmini Devi Institute of Advanced Studies, New Delhi. under my guidance and direction.

To the best of my knowledge and belief the data and information presented by him / her in the project has not been submitted earlier elsewhere.

Name of the Faculty NITIKA SHARMA Designation of the Faculty RDIAS

ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to Rukmini Devi Institute Of Advanced Studies, GGSIP University, New Delhi for imparting us very valuable professional training in MBA.

I pay my gratitude and sincere regards to Ms. Nitika Sharma, my project Guide for giving me the cream of his knowledge. I am thankful to him as he has been a constant source of advice, motivation and inspiration. I am also thankful to him for giving his suggestions and encouragement throughout the project work.

I take the opportunity to express my gratitude and thanks to our computer Lab staff and library staff for providing me opportunity to utilize their resources for the completion of the project.

I am also thankful to my family and friends for constantly motivating me to complete the project and providing me an environment which enhanced my knowledge.

Name of the Student Rinki Khatri Enrollment No. - 03515901711 Class & Sec BBA-2-3 SEMESTER

Executive Summary

This project is an attempt to give knowledge about Cost Sheet Analysis of Britannia Bread. It aims to make its reader well versed with each and every aspects of Britannia Bread. It throws light on the following:1) In 1st chapter you will find the introduction of the project report and its objective. 2) In 2nd chapter you will find the introduction of Britannia Company, its history 3) In 3rd chapter, you will find the research methodology used in the project report. 4) In 4th chapter you will find how data is collected and its analysis. 5) In 5th chapter there are findings and conclusion about 5the project report. 6) In 6th chapter you will find some suggestions about the project.

CONTENTS
TOPIC PAGE NO

Chapter I ..8-34 Plan of the Study 1.1 1.2 1.3 Introduction to topic Objective of the study Literature review And/or Theoretical Background

Chapter II.35-43 Company Profile / Industry profile or details Chapter III44-49 Research Methodology 3.1 Purpose of the study 3.2 Research Objectives of the study 3.3 Research Methodology of the study 3. 3.1 Research Design 3.3.2 Data Collection 3.3.3Method of data collection 3.3.4Limitations Chapter IV50-60 Data Analysis and Interpretation Chapter V.61-64 Findings & Conclusions Chapter VI65-66
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Suggestion/ Recommendation

BIBLIOGRAPHY ..67 ANNEXURES .68 -70

Chapter 1 Introduction

MEANING OF COST

COST represents a sacrifice of values, a foregoing or a release of something of value. It is the price of economic resources used as a result of producing or doing the thing costed. It is the amount of expenditure incurred on a given thing. Cost has been defined as the amount measured in money or cash expended or other party transferred, capital stock issued, services performed or a liability incurred in consideration of goods and serviced received or to be received. By cost, we mean the actual cost i.e. historical cost. ICWA (UK) defines cost as the amount of expenditure (actual or notional) incurred on, or attributable to a specified thing or activity.

CLASSIFICATION OF COST

Cost classification is the process of grouping costs according to their common features. Costs are to be classified in such a manner that they are identified with cost center or cost unit.

ON THE BASIS OF BEHAVIOUR OF COST

Behavior means change in cost due to change in output. On the basis of behavior cost is classified into the following categories:

FIXED COST

It is that portion of the total cost which remains constant irrespective of the output upto capacity limit. It is called as a period cost as it is concerned with period. It depends upon the
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passage of time. It is also referred to as non-variable cost or stand by cost, capacity cost or period cost. It tends to be unaffected by variations in output. These costs provide conditions for production rather than costs of production. They are created by contractual obligations and managerial decisions. Rent of premises, taxes and insurance, staff salaries constitute fixed cost.

VARIABLE COST

This cost varies according to the output. In other words, it is a cost which changes according to the changes in output. It tends to vary in direct proportion to output. If the output is decreased, variable cost also will decrease. It is concerned with output or product. Therefore, it is called as a product cost. If the output is doubled, variable cost will also be doubled. For example, direct material, direct labour, direct expenses and variable overheads. It is shown in the diagram below.

SEMI-VARIABLE COST

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This is also referred to as semi-fixed or partly variable cost. It remains constant up to a certain level and registers change afterwards. These costs vary in some degree with volume but not in direct or same proportion. Such costs are fixed only in relation to specified constant conditions. For example, repairs and maintenance of machinery, telephone charges, supervision professional tax, etc.

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ON THE BASIS OF ELEMENTS OF COST

Elements means nature of items. A cost is composed of three elements, material, labour and expenses. Each of these elements can be direct and indirect.

DIRECT COST

It is the cost which is directly chargeable to the product manufactured. It is easily identifiable. Direct cost consists of three elements which are as follows:

DIRECT MATERIAL
It is the cost of basic raw material used for manufacturing a product. It becomes a part of the product. No finished product can be manufactured without basic raw materials. It is easily identifiable and chargeable to the product. For example, leather in leatherwares, pulp in paper, steel in steel furniture, sugarcane for sugarcane etc. what is raw material for one manufacturer might be finished product for another. Direct material includes the following: 1. All materials specially purchased for production or the process. 2. All components purchased for production or the process. 3. Material transferred from one cost center to another or one process to another. 4. Primary packing materials, wrappings, cardboard boxes etc, necessary for preservation or protection of product. Some of the items like nails or thread in the store are a part of finished product. They are not treated as direct materials in view of negligible cost.

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DIRECT LABOUR OR DIRECT WAGES

It is the amount paid to those workers who are engaged in the manufacturing line for conversion of raw materials into finished goods. The amount of wages can be easily identified and directly charged to the product. These workers directly handle raw materials, work in progress and finished goods on the production line. Wages paid to the workers operating lathes, drilling, cutting machines etc are direct wages. Direct wages are also as productive labour, process labour or prime cost labour. Direct wages include the payment made to the following group of workers: 1. Labour engaged on the capital production of the product. 2. Labour engaged in aiding the operations viz. Supervisor, Foreman, Shop clerks and Worker on internal transport. 3. Inspectors, Analysts needed for such production.

DIRECT EXPENSES OR CHARGEABLE EXPENSES


It is the amount of expenses which is directly chargeable to the product manufactured or which may be allocated to product directly. It can be easily identified with the product. For example, hire charges of a special machine used for manufacturing a product, cost of designing the product, cost of patterns, architects fees/surveyors fees, or job cost of experimental work carried out especially for a job etc. Cost of special drawings, cost of special layout designs, patents, patterns, cost of models, surveyors fees, Excise duty, royalty on production, cost of rectifying defective work. Utility of such expenses is exhausted on completion of job.

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INDIRECT COST

It is that portion of the total cost which cannot be identified and charged directly to the product. It has to be allocated and apportioned and absorbed over the units manufactured on a suitable basis. It consists of the following three elements:

INDIRECT MATERIAL

It is the cost of the material other than direct material which cannot be charged to the product directly. It cannot be treated as a part of the product. It is also known as expenses materials. It is the material which cannot be allocated to the product but which can be apportioned to the cost units. Examples are as follows: 1. Lubricants, cotton waste, oil, grease, stationery etc 2. Small tools for general use 3. Some minor items such as thread in dress making, cost of nails in shoemaking etc

INDIRECT LABOUR

It is the amount of wages paid to those workers who are not engaged on the manufacturing line, for example, wages of workers in administration department, watch n ward department, sales department, general supervision.

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INDIRECT EXPENSES

It is the amount of expenses which is not chargeable to the product directly. It is the cost of giving service to the production department. It includes factory expenses, administrative expenses, selling and distribution expenses etc.

Overheads Or On Cost Or Burden Or Supplementary Cost

Aggregate of indirect cost is referred to as overheads. It arises as a result of overall operation of a business. According to Weldon overheads mean, the cost of indirect material, indirect labour and such other expenses, including services as cannot conveniently be charged direct to specific cost units. It includes all manufacturing and non-manufacturing supplies and services. These costs cannot be associated with a particular product. The principal feature of overheads is the lack of direct traceability to individual product. It remains relatively constant from period to period. The amount of overheads is not directly chargeable i.e. it has to be properly allocated, apportioned and absorbed on some equitable basis.

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CLASSIFICATION OF OVERHEADS

On the basis of functions Factory overheads

It is the aggregate of all the factory expenses incurred in connection with manufacture of a product. These are incurred in connection with running of factory. It includes the items of expenses viz, factory salary, work managers salary, factory repairs, rent of factory premises, factory lighting, lubricants, factory power, drawing office salary, haulage (cost of internal transport) depreciation of plant and machinery unproductive wages, estimation expenses, royalties, loose tools w/ off, material handling charges, time office salaries, counting house salaries etc.

ADMINISTRATIVE OR OFFICE OVERHEADS

It is the aggregate of all the expenses as regards administration. It is the cost of office service or decision-making. It consists of the following expenses: Staff salaries, printing and stationery, postage and telegram, telephone charges, rent of office premises, office conveyance, printing and stationery and repairs and depreciation of office premises and furniture etc.

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SELLING & DISTRIBUTION OVERHEADS

It is the aggregate of all the expenses incurred in connection with sales and distribution of finished product and services. It is the cost of sales and distribution services. Selling expenses are such expenses which are incurred acquiring and retaining customers. It includes the following expenses:

a- Advertisement b- Show room expenses c- Traveling expenses d- Commission to agents e- Salaries of Sales office f- Cost of catalogues g- Discount allowed h- Bad debts written off i- Commission on sales j- Rent of Sales Room k- Sample and Free gifts l- After sales service expenses m- Expenses on demonstration and technical advice to prospective customers n- Free repairs and servicing expenses o- Expenses on market research p- Fancy packing and demonstration. Distribution expenses include all those expense which are incurred in connection with making the goods available to customers these expense includes the following (a) Packing charges (b) Loading charges (c) Carriages on sales (d) Rent on warehouse (e) Insurance and lighting of warehouse (f) Insurance of delivery van (g) Expense on delivery van (h) Salaries of Godownkeeper, drivers and packing staff.

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COST SHEET

For determination of total cost of production a statement showing the various elements of cost is prepared. This statement is called as a statement of cost or cost sheet. Cost sheet is a statement which provides assembly of the detailed cost of a cost center or a cost unit. It is a statement showing the details of a) total cost of job b) Cost of an operation or order. It brings out the composition of total cost in a logical order under proper classifications & subdivisions. The period is covered by the cost sheet may be by a week a month or so. Separate columns are provided to show total cost, cost per-unit etc. In case of different products there are different cost sheets for different products. A cost sheet is prepared under output or unit costing method.

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PURPOSE OF COST SHEET

1. It gives the breakup of total cost under different elements. 2. It shows total cost as well as cost per unit. 3. It helps in comparison with previous years. 4. It facilities preparation of tenders or quotations. 5. It enables the management to fix up selling price. 6. It controls cost.

DIVISIONS OF COST

PRIME COST

It comprises of all direct materials, direct labour and direct expenses. It is also known as flat cost

Prime cost = Direct Materials + Direct Labour + Direct Expenses

WORKS COST
It is also known as a factory cost or cost of manufacture. It is the cost of manufacturing an article. It includes prime cost and factory expenses.

Works Cost = Prime Cost + Factory Overheads

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COST OF PRODUCTION
It represents factory cost plus administrative expenses.

Cost of Production = Factory Cost + Administrative Expenses

TOTAL COST

It represents cost of production plus selling and distribution expenses.

Total Cost= Cost of Production + Selling & Distribution Expenses

SELLING PRICE

It is the price which includes total cost plus margin of profit or minus loss, if any.

Selling Price = Total Cost + Profit (-Loss)

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NON COST ITEMS

Non-cost items are those items which do not form part of cost of a product. Such items should not be considered while ascertaining the cost of a product. These are items included in the Profit & Loss A/c. These will not come in the cost sheet a) Income tax b) Interest on capital c) Interest on loan d) Profit on Sale of fixed assets e) All the assets f) Donations g) Capital Expenditure h) Discount on shares & Debentures i) Commission to Partners, Managers etc j) Brokerage k) Preliminary Expenses Written off. l) Wealth tax etc m) Bonus to directors and employees if it is based on profit, expenses of raising capital, penalties & fines.

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UTILITY OF COST SHEET

DETERMINE THE TOTAL COST

A total cost sheet (statement) helps in determining aggregate cost of manufacturing a product or providing a service.

DETERMINING PRODUCT PRICE

A cost sheet helps in identifying the total cost for a product or service which in turn helps in properly pricing of products & services.

COST REDUCTION OR COST CONTROL

Cost sheets helps in identifying the total cost stage wise & any unwanted cost can be curtailed.

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PREPARE BUDGETS

A cost statement helps in preparing budget for each department

PROFIT PLANNING

It helps to minimize cost & increase profits.

1. STAGE WISE COST IDENTIFICATION Costs such as prime cost, factory cost, cost of production, cost of goods sold, total cost of sale etc.

2. DETERMINE THE COST PER UNIT This helps in determining cost per unit on which u can predict further cost.

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DETERMINATION OF TOTAL COST

Cost of product is determined as per cost attach concept. Total cost of a product consists of various elements of cost which have the quality of coherence. All the elements of cost can be grouped and regrouped. Grouping and regrouping of various elements of cost leads to significant divisions of cost. The logical process of determination of cost by grouping and regrouping various elements is illustrated as follows:

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COST SHEET
PROFORMA OF COST SHEET

PARTICULARS

TOTAL COST Rs.

Opening Stock Raw Materials Add: Purchase XXX Add: Carriage Inward Add: Octroi and Customs Duty Less: Closing Stock of Raw Materials Cost of Direct Material Consumed Direct Wages XXX Direct or Chargeable Wages XXX PRIME COST XXX Add: Works of Factory Overheads: XXX Indirect Materials Indirect Wages Leave Wages
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XXX

XXX

XXX

Bonus to Workers Overtime Wages Fuel and Power Rent and Taxes Insurance Factory Lightings Supervision Works Stationary Canteen and Welfare Expenses XXX Repairs Works Salaries Depreciation of Plant and Machinery Works Expenses Gas and Water XXX Technical Directors Fees Laboratory Expenses Works Transport Expenses Works Telephone Expenses Add: Opening Stock of Work-in-Progress XXX Less: Closing Stock of Work-in-Progress Less: Sale of Waste XXX
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XXX

XXX

XXX

XXX

XXX

XXX

XXX

XXX

WORKS COST

XXX

XXX

XXX Add: Office and Administration Overheads: Office Salaries Directors Fees XXX Office Rents And Rates Office Stationary and Printing Sundry Office Expenses Depreciation on Office Furniture Subscription to Trade Journals XXX Office Lightings Establishment Charges Directors Traveling Expenses Consultants Fees Contribution to Provident Fund XXX Postage Legal Charges Audit Fees XXX XXX XXX XXX XXX XXX

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Bank Charges Depreciation Equipments Bonus to Staff And Repairs of Office

XXX

XXX

COST OF PRODUCTION Add :Opening Stock of Finished Goods Less: Closing Stock of Finished Goods

XXX XXX XXX XXX XXX XXX XXX

COST OF GOODS SOLD

Add: Selling and Distribution Overheads Advertising Show Room Expenses Salesmans Salaries and Expenses Packing Expenses Carriage Outward

XXX XXX XXX XXX XXX XXX XXX

Commission of Sales Agents Cost of Catalogues Expenses of Delivery Vans Collection Charges

XXX XXX XXX XXX XXX


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Traveling Expenses Cost Tenders Warehouse Expenses Cost of Mailing Literature Sales Managers Salaries XXX Insurance of Showroom Sales Directors Fees Sales Office Expenses Rent of Sales Office Depreciation of Delivery Vans Expenses of Sales Branch Establishments Branch Office Expenses XXX

XXX

TOTAL COST/TOTAL OF SALES Profit or Loss

SALES

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ESTIMATION OF COST

Very often, the management desires to know, what will be the cost? even before the production starts. The purpose to know the cost before it is incurred, might be different. It may be to keep the cost within control or it may be used for profit planning. May times it is required to submit tenders, to give quotations, to prepare price lists etc. For this purpose the estimations of probable cost of production is essential. This requires the past cost data to be analysed, present circumstances are taken into consideration and future is projected. The technique is known as estimation of cost. This involves the study of each and every element of cost and their nature of behaviour . Keeping in view the nature of behaviour of elements of cost, it can be classified into following three categories:

FIXED COST
Fixed cost is that cost which remains unaffected even though there is change in the level of output. It remains constant at all levels of output for a given period of time. Examples of such costs are rent, rated and taxes of factory premises, salary of general manager, foreman, watchman, insurance, depreciation etc. These expenses incur according to the unit of time and not according to level of production. Hence sometimes it is called as periodic cost. For example such fixed cost is ascertained of a particular concern Rs. 12000 pm. The capacity of this concern is to produce 1000 units pm. If they produce 100 units or 500 units or 700 units or 100 units the fixed cost will remain constant at all these levels of output. This fixed cost remains fixed at all levels of output, but the cost per unit changes if there is a change in the level of output.

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VARIABLE COST

It is the cost which tends to vary directly with the volume of output. If there is increase in output this cost increases and vice versa. The change in the variable cost takes place in the same direction in which the level of output changes. This cost consists of direct materials, direct wages, direct expenses and some part of indirect expenses which varied according to the level of output. Say for example if standard unit of final product requires the raw materials of Rs.20 per unit the expenses on direct materials will change if level of output changes. However variable cost per unit will remain unchanged provided the price level does not change.

SEMI-VARIABLE COST
This is the third category of nature of behavior of the expenses. These expenses are neither fixed nor variable. These expenses change in the same direction in which the level of output changes. Thus these expenses are partly fixed partly variable in nature. Examples of such expenses are depreciation of plant and machinery, maintenance of factory building etc. These expenses will increase if factory is run from single shift to double or triple shifts. Depreciation and maintenance will increase but not in the same ratio, the output increases. Thus these expenses are neither fixed nor variable cent percent. Hence they are called as semi variable expenses.

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OBJECTIVES OF THE STUDY

1. This project was undertaken to have an insight into the cost structure of Britannia. 2. The objective of cost sheet analysis is to determine the cost and with this cost we can find profit margin for the Britannia. 3. To study how cost sheet analysis is helping the Britannia Company in controlling the cost. 4. To analyse the cost of advertisement done by Britannia Company through cost sheet analysis. 5. To study, how Britannia Company determine the cost of its product through cost sheet analysis.

LITERATURE REVIEW

The multi-billion food and beverage industry comprises several markets including bakery products such as bread, biscuits etc., milk and dairy products, beverages such as tea, coffee, juices, bottled water etc., snack food, chocolates, etc. beverage, confectionery, processed foods and others. India's Food and Beverage industry is valued at Rs. 3584 billion. India produces above 600 million tonnes of food products every year and is one of the major producers of food in the world. The food and beverage industry registered a growth rate of 8.5% in 2005-06. With increase in disposable income of consumers, growing awareness among consumers about health products, rapid urbanization, and increasing popularity of convenience foods, food and beverage sector is expected to grow at a high rate. This sector holds a huge potential to grow

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because of the increase in advertisement spending, awareness campaign about products in urban as well as rural areas, and large scale transformation. The food and beverage industry is primarily driven by consumer health trends. Presently, the food and beverage industry is in a dynamic phase, marked by a high degree of competition. As product development within the food and beverage market moves towards a focus on health and nutrition, the growth and development of food manufacturers in the market depends on having prudent strategies in place, which can be applied globally. In effect, this has created a highly competitive market place, which fosters growth of participants with a clear vision of "growing with their customers." The major players in the "Food and Beverage" Industry is: Heinz, Mars, Marico, Conagra, Pepsi, HLL, Pillsbury, Nestl, Amul, ITC, Dabur, Britannia, Cadbury, Smith Kline Beecham, The Surya Food and Agro Private Ltd. Bakery industry in India is probably the largest among the processed food industries, production of which has been increasing steadily in the country. Bakery products once considered as sick mans diet have now become essential food items of the vast majority of population. The two major bakery industries, viz., bread and biscuit account for about 82% of the total bakery products. The annual production of bakery products which includes bread, biscuits, pastries, cakes, buns, rusk, etc., most of which are in the unorganized sector, is estimated to be in excess of 3 million tonnes. The production of bread and biscuits in the country both in the organized and unorganized sectors is estimated to be around 1.5 million tonnes and 1.1 million tonnes respectively. Of the total production of bread and biscuits, about 35% is produced in the organized sector and the remaining is manufactured in the unorganized sector. Indian Bakery sector is indicating significant growth both in terms of volumes and customer base. The sector, which is estimated at Rs 3,500 crore, is currently registering a 40% growth according to industry sources. The production of Bakery products has increased from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990 recording four-fold increase in 15 years.

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Some of the well-known and most frequented bakeries in the country are Sweet Chariot, Modern Bakery, Daily Bread in Bangalore, Monginis, Birdie's, Croissants in the west, and in the north and eastern parts of the country, there are quite a few big players too. Bread is the cheapest and basic instant food available for consumption. Though bread is not a staple food in the country, its consumption has increased over the years. In India it is still a secondary staple food when compared to chapatti, puri or rice. The different types of bread available are White bread, Whole meal or whole wheat bread, mixed grain bread, Kibbled wheat and cracked wheat bread, Fibre-increased white breads, Rye bread

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Chapter 2
Company Profile

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INTRODUCTION TO BRITANNIA INDUSTRIES


Britannia Industries Limited (BIL) is a major player in the Indian Foods market with leadership position in Bakery category. Its brand portfolio includes Tiger, Marie Gold, Good Day, 50:50 and Treat. The Company was born in 21st March of the year 1918 as a public limited company. The Company's plants are situated in Kolkata, Delhi, Chennai, Mumbai and Uttarakhand. 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. A new factory was established in the year 1924 at Kasara Pier Road in Mumbai. In the same year, the Company became a subsidiary of Peek, Frean & Company Limited, U.K., a leading biscuit manufacturing company, and further strengthened its position by expanding the factories at Calcutta and Mumbai. In 1952, the Kolkata factory was shifted from Dum Dum to spacious grounds at Taratola Road in the suburbs of Kolkata. During the same year automatic plants were installed in Calcutta and later in 1954 the automatic plants were installed in Mumbai plant, also in the same year the development of high quality sliced and wrapped bread in India was initiated by the company and was first manufactured at Delhi and a new bread bakery was set up at Delhi in the year 1965. Britannia Biscuit Company takes over biscuit distribution from Parry's during the year 1975. In 1976, the company had introduced Britannia bread in Calcutta and Chennai. During the year 1978, the company made Public issue, in that Indian shareholding crossed 60%. The Company re-christened from Britannia Biscuit Company Limited to Britannia Industries Limited with effect from 3rd October of the year 1979. The Company had signed a 10-year technical collaboration agreement with Nebico Pvt Ltd., Nepal during the year 1980 for the supply of know-how relating to manufacturing, packaging and marketing of biscuits and selection of plant and machinery. During the year 1989, BIL's Executive Office was relocated to Bangalore. During the year 1990, two new brands of biscuits, Elaichi Creamand and Petit Beurre were launched. Also, in the same year a new cashew badam variant of the brand Milk Bikis and brand extension of pure magic biscuit Vanilla cream were launched, Fruit bread was launched in Delhi. The Company launched two new speciality brands in the
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year 1991 viz., Britannia milk bread and Britannia brown bread in Delhi and extended nationally its main brands Petit Beurre and Elaichi Cream. In 17th August of the year 1991, the Company handed over its Soya unit at Vidisha, MP to SM Dychem Ltd. BIL had celebrated its Platinum Jubilee in the year 1992. After a year in 1993, Wadia Group had acquired the stake in ABIL, UK and becomes an equal partner with Group Danone in BIL. The Company was in re birth phase during the year 1997, new corporate identity 'Eat Healthy, Think Better' leads to new mission of 'Make every third Indian a Britannia consumer' and in the same year BIL entered into the dairy products market. In 1998, BIL had launched Half/Half, a soft cake filled with cream in two variants, chocolate-vanilla and vanilla-orange. The Company had rolled out its flavored milk brand Zip-Sip' in tetrapaks in the year 1999. Zip-Sip had been launched in Mumbai and some markets in the South. Forbes Global Ranking was rated the company during the year 2000, Britannia among Top 300 small companies. In the same year, the company had launched Britannia Milkman Butter, a product under the Milkman brand. BIL made its fund in-principle agreement to acquire 49 per cent of Kwality Biscuits in the year 2001 through internal accruals. During the year 2002, the company had entered into a joint venture with the Fonterra Cooperative Group, New Zealand's biggest company and one of the leading diary co-operative groups in the world and the Britannia New Zealand Foods Pvt. Ltd was born. Pure Magic, the company's product was winner of the Worldstar, Asiastar and Indiastar award for packaging in the same year 2002. After a year, in 2003, BIL had launched 'Treat Duet', most successful of the year and Britannia Khao World Cup Jao rocks the consumer lives yet again. During the year 2004, Britannia accorded the status of being a 'Superbrand' and the brand Good Day added a new variant Choconut in its range. Reviewed marketing alliance with the Kolkata-based Thacker Dairy Products Pvt Ltd. In the year 2005, Britannia New Zealand had launched health drink for adult. The new plant in Uttaranchal, commissioned during the year 2005, it was ahead of schedule. In the same year, launched yet another exciting snacking option the Britannia 5050 Pepper Chakkar. BIL had forged a strategic alliance with CCD Daily Bread Pvt Ltd in the year 2006, a Bangalore based Company engaged in manufacturing and retailing of premium breads, cakes snacks and high end ready to eat foods. In the year 2007, Britannia industries formed a joint venture with the Khimji Ramdas Group and acquired a 70 percent beneficial stake in the Dubai-based Strategic Foods International Co. LLC and 65.4% in the Oman38

based Al Sallan Food Industries Co. SAOG. The company was rated as the No 1 Most Trusted Food Brand in a survey conducted by AC Nielsen ORGO-MARG and published in Economic Times in the year 2007. Britannia launched Iron fortified 'Tiger Banana' biscuits, 'Good Day Classic Cookies', Low Fat Dahi and renovated 'MarieGold' during the period of 2008. BIL was ranked 27th place in the list of India's Fastest Growing Large Companies by Business Today, Special on June of the year 2008.

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 is one of Indias best known brands and also one of the most admired Food Brand in the country. Having succeeded in garnering the trust of almost one-third of India's one billion population and a strong management at the helm means Britannia will continue to dream big on its path of innovation and quality. And millions of consumers will savors the results, happily ever after. The company has four production facilities, 4367 employees, and sells its products in over 600,000 outlets across India. The Britannia Brand is all about eating healthy for leading a better life. It is the largest company in the food processing industry whose product range also includes breads and cakes. Britannia has a basketful of goodies with biscuits like Nice Time, Tiger, Marie Gold, 50 50 Maska Chaska, Milk Bikis, Pure Magic, Time Pass Nimkee, Treat, Good Day, Little Hearts, Nutri Choice, Nutrichoice Digestive, Daily Fresh Bread and Britannia Cakes.

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History
The company was established in 1892, with an investment of Rs. 295. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the enterprise was acquired by the Gupta brothers mainly Nalin Chandra Gupta, a renowned attorney,and operated under the name of "V.S. Brothers." In 1918, C.H. Holmes, an English businessman in Kolkata, was taken on as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was set up in 1924 and Peek Freans UK, acquired a controlling interest in BBCo. Biscuits were in big demand during World War II, which gave a boost to the companys sales. The company name finally was changed to the current "Britannia Industries Limited" in 1979. In 1982 the American company Nabisco Brands, Inc. became a major foreign shareholder.

The 'Biscuit King'


Kerala businessman K. Rajan Pillai secured control of the group in the late 1980s, becoming known in India as the 'Biscuit King'. In 1993, the Wadia Group acquired a stake in Associated Biscuits International (ABIL), and became an equal partner with Groupe Danone in Britannia Industries Limited. In what The Economic Times referred to as one of [India's] most dramatic corporate sagas, Pillai ceded control to Wadia and Danone after a bitter boardroom struggle, then fled his Singapore base to India in 1995 after accusations of defrauding Britannia, and died the same year in Tihar Jail.

Wadia and Danone


The Wadias' Kalabakan Investments and Groupe Danone had two equal joint venture companies, Wadia BSN and UK registered Associated Biscuits International Holdings Ltd., which together held a 51 per cent stake in Britannia. The ABIH tranche was acquired in 1992, while the controlling stake held by Wadia BSN was acquired in 1995. It was agreed
40

that, in case of a deadlock between the partners, Danone was obliged to buy the Wadia BSN stake at a "fair market value". ABIH had a separate agreement signed in 1992 and was subject to British law. Wadia was to be Danone's partner in the food and dairy business, and product launches from Groupe Danones were expected but never materialised despite the JV being in existence for over 11 years in India. Under the 1995 joint venture agreement, Danone is prohibited from launching food brands within India without the consent of the Wadias. In addition, the partners agreed there would be the right of first refusal to buy out the remaining partner in the event of the other wishing to sell its holding. In May 2007, Nusli Wadia told the Ministry of Commerce and Industry that Danone invested in a Bangalore-based bio nutrition company, Avesthagen, in October 2006 in violation of the government's Press Note 1, 2005, which requires a foreign company to obtain the consent of its Indian joint venture partner before pursuing an independent business in a similar area, including joint ventures based purely on technical collaboration. Danone argued that Press Note 1 did not apply to it as it did not have a formal technology transfer or trademark agreement with Avesthagen, and that its 25% holding in Britannia was indirect. Wadia also filed a case in the Bombay High Court for a breach of a non-competition clause in that connection. The court ordered Danone not to alienate, encumber or sell shares of Avestagen. In September 2007, the Foreign Investment Promotion Board of India rejected Danone's claims that it did not need a non-compete waiver from the Wadias to enter into business in India alone. In June 2006, Wadia claimed Danone had used the Tiger brand to launch biscuits in Bangalore. After a prolonged legal battle, Danone agreed to sell its 25.48% stake in Britannia to Leila Lands, which is a Wadia group entity based in Mauritius, and quit this line of business. The deal was valued at $175200 m. With this buy-out, Wadia holds a majority stake of 50.96%.

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Growth and profitability


The company is growing at a steady rate, and is currently profitable. Between 1998 and 2001, the company's sales grew at a compound annual rate of 16% against the market, and operating profits reached 18%. More recently, the company has been growing at 27% a year, compared to the industry's growth rate of 20%. At present, 90% of Britannias annual revenue of Rs2,200 crore comes from biscuits. Britannia is one of India's 100 Most Trusted brands listed in The Brand Trust Report.

Business
Dairy products : Dairy products contribute close to 10 per cent to Britannia's revenue.
Britannia trades and markets dairy products, and its dairy portfolio grew to 47% in 2000-01 and by 30% in 2001-02. Britannia holds an equity stake in Dynamix Dairy and outsources the bulk of its dairy products from its associate. Its main competitors are Nestl India, the National Dairy Development Board (NDDB), and Amul (GCMMF).

Joint venture with New Zealand Dairy: On 27 October 2001, Britannia announced
a joint venture with Fonterra Co-operative Group of New Zealand, an integrated dairy company from procurement of milk to making value-added products such as cheese and buttermilk. Britannia planned to source most of the products from New Zealand, which they would market in India. The joint venture will allow technology transfer to Britannia. Britannia and New Zealand Dairy each holding 49% of the JV, and the remaining 2 per cent held by a strategic investor. Britannia has also tentatively announced that its dairy business would be transferred and run by the joint venture.

42

The authorities' approval to the joint venture obliged the company to start manufacturing facilities of its own. It would not be allowed to trade, except at the wholesale level, thus pitching it in competition with Danone, which had recently established its own dairy business.

Biscuits
Britannia Little Hearts
The company's factories have an annual capacity of 433,000 tonnes. The brand names of biscuits include VitaMarieGold, Tiger, Nutrichoice Junior,Good day, 50 50, Treat, Pure Magic, Milk Bikis, Good Morning, Bourbon, Thin Arrowroot, Nice, Little Hearts and many more. Tiger, the mass market brand, realised $150.75 million in sales including exports to countries including the U.S. and Australia, or 20% of Britannia revenues in 2006. In a separate dispute from the shareholder matters, the company alleged in 2006 that Danone had violated its intellectual property rights in the Tiger brand by registering and using Tiger in several countries without its consent. Britannia claimed the company found out that Danone had launched the Tiger brand in Indonesia in 1998, and later in Malaysia, Singapore, Pakistan and Egypt, when it attempted to register the Tiger trademark in some of these countries in 2004. Whilst it was initially reported in December 2006 that agreement had been reached, it was reported in September 2007 that a solution remained elusive. In the meantime since Danone's biscuit business has been taken over by Kraft, the Tiger brand of biscuits in Malaysia was renamed Kraft Tiger Biscuits in September 2008. Britannia initiated legal action against Danone in Singapore in September 2007. The dispute was resolved in 2009 with Britannia securing rights to the Tiger brand worldwide, and Danone paying Rs 220 million to utilise the brand.

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BRITANIA DAILY FRESH BREAD

Till 1958, there were no breads in the organized sector and bread consumption was a habit typified by the British. Then, a mechanised bread unit was set up in Delhi with the name "Delbis" which produced sliced bread and packed it under the Britannia name. Thus, Britannia was not only the pioneer, but also inculcated in the people of Delhi the habit of eating white sliced bread.

The Mumbai unit came up in 1963, and there again Britannia was the first branded bread in the city. From a company offering 2 packs - the 400gm and the 800gm plain white sliced bread - Britannia has evolved into a company offering 22 packs, catering to a variety of taste and price segments in the bread consuming market. The last couple of years also saw the introduction of Whole Wheat Bread as a part of "Eat Healthy, Think Better" credo. Britannia Daily Fresh Bread, which finds its way to over 6 lakh households daily, is the mainstay of the companys non-biscuit business at present. Britannia hopes to drive this emerging business through the exploding modern trade and has already gained access to Reliance Retail, Trinethra and Fabmall for its breads. Britannia is widely recognized as an innovative marketer.

44

Chapter-3 Research Methodology

45

Research methodology
Research methodology is a way to systematically, solve the research problem. It may be understood as a science of study how research is done. In this we study the various steps (the research process) that are generally adopted by a researcher in studying his research problem along with the logic behind them. The basic steps in this research are also as following:

Steps in planning a research study: Formulating a research problem. Conceptualizing a research design. Constructing an instrument for data collection. Selecting a design. Writing a research proposal.

Steps in conducting a study: Collecting the data. Processing data. Writing a research project

Research design

Research design is a plan outlining how information is to be gathered for an assessment or evaluation that includes identifying the data gathering methods, the instruments to9 be used or created, how the instruments will be administered, and how the information will be organized and analyzed. The preparation of the research design, appropriate for a particular research problem, involves usually the consideration of the following:
46

The means of obtaining the information; The availability and skills of the researcher and his staff (if any); Explanation of the way in which selected means of obtaining information will be organized and the reasoning leading to the selection;

The time available for research; and The cost factor relating research, i.e., the finance available for the purpose.

Data collection
In dealing with any real lift problem it is often found that data at hand are inadequate, and hence, it becomes necessary to collect data that are appropriate. There are several ways of collecting the appropriate data which differ considerably in context of money costs, time and other resources at the disposal of the researcher.

There are two types of Data: Primary data: Primary data is important for all areas of research because it is unvarnished information about the results of an experiment or observation. It is like the eyewitness testimony at a trial. No one has tarnished it or spun it by adding their own opinion or bias so it can form the basis of objective conclusions. Primary data is the specific information collected by the person who is doing the research. It can be
47

obtained through clinical trials, case studies, true experiments and randomized controlled studies. This information can be analyzed by other expects who may decide to test the validity of data by repeating the same experiments. Secondary data: Secondary data is data collected by someone other than user. Common sources of secondary data for social science include censuses, surveys, organizational records and data collected through qualitative methodologies or qualitative research. Primary data, by contrast, are collected by the investigator conducting the research. Secondary data analysis saves time that would otherwise be spent collecting data and, particularly in the case of quantitative data, provides larger and higher-quality databases than would be unfeasible for any individual researcher to collect on their own. In addition to that, analysts of social and economic change consider secondary data essential, since it is impossible to conduct a new survey that can adequately capture past change and/or developments.

But my research concerned with secondary data only.

Secondary data

Secondary data is the data that have been already collected by and reality available from other sources. Such data are cheaper and more quickly obtainable than primary data and also may be available when primary data cannot be obtained at all.

Advantages of secondary data


It is economical. It saves efforts and expenses. It is time saving.
48

It helps to make primary data collection more specific since with the help of secondary data we are able to make out what are gaps and deficiencies and what additional information needs to be collected.

It helps to improve the understanding of the problem. It provides a basis for comparison for the data that is collected by the researcher.

Disadvantages of secondary data


Secondary data is something that seldom fits in the framework of the marketing research factors. Accuracy of secondary data is not known. Data may be outdated.

Sources of data collection


Website Books Magazines News

Limitations of study
1. 2. The project is only based on secondary data. Time and cost play major role in the development of a project.

49

50

Chapter 4
Data Collection & Analysis

51

SWOT Analysis

SWOT analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. The technique is credited to Albert Humphrey, who led a convention at Stanford University in the 1960s and 1970s using data from Fortune 500 companies. A SWOT analysis must first start with defining a desired end state or objective. A SWOT analysis may be incorporated into the strategic planning model. Strategic Planning has been the subject of much research.
1-

Strengths: characteristics of the business or team that give it an advantage over others in the industry.

2-

Weaknesses: are characteristics that place the firm at a disadvantage relative to others.

34-

Opportunities: external chances to make greater sales or profits in the environment. Threats: external elements in the environment that could cause trouble for the business.

52

Strengths:

1234-

Wide Distribution network all round the globe. Britania acquired 50% stake in Daily Bread Britania has presence in around 60 countries across the world. Britania is the worlds largest Bread manufacturer. Britannia is the 2nd most trusted brand

56789-

Provides good quality of biscuits cakes Products range from Re1 to Rs 500 Easily available in various forms Excellent supply of products whenever required Widely accepted in all generations

Weaknesses:

1- Quantity of biscuits is less compare to its competitors, as they concentrate more on quality.

2- Similar kind of Britannia product available in the market made by its competitors

53

Opportunities:

1- Bakery industry growing at 40% per annum. 2- All major firms are now supplying fast food at work spot. 3- Bread is now becoming staple food. With the opening of new offices in the different areas scope of sale of products will increase. 4- Generate employment opportunity.

Threats:

123-

Unorganised Bakery firms operating in rural areas Raw material cost increasing due to inflation Huge Competition in the market. Companies like Biskfirm, Parle , Sunfeast entering into this segment of market

4-

Providing products to the offices at lesser rates by offering heavy discounting.

54

COST SHEET OF BRITANNIA BREAD

PROFORMA OF COST SHEET

Cost sheet for every 1lac units produced and sold.

Cost Per Unit

Quantity Manufactured Quantity sold

1 1

100000 100000

CPU(Rs) DIRECT COST Raw materials consumed Opening stock of raw materials Purchases of Raw Materials (-)Closing stock of Raw Materials Materials Consumed Direct labour/wages Direct cost/expenses PRIME COST
55 0 5.805 0 5.805 0.124 0.2415 6.1705

INDIRECT COST Factory/Works Overheads Indirect labour Depreciation on Machinery Works Overheads Cost of Maintanence Other Factory Expenses Supervisors Salary Power & Fuel Total Overheads FACTORY COST/WORKS COST Office and Administrative Overheads Depreciation on office furniture@7% Office Rent Salary to Staff Office and General Expenses Telephone expenses Electricity and Lightings Printing and stationary Total Office and Administrative Overheads COST OF GOODS SOLD Selling and Administrative Overheads Sales Commission
56 0.705 0.0281 0.0585 0.089 0.0257 0.0219 0.03123 0.00294 0.25737 0.122 0.675 0.05204 0.0589 0.0282 0.0385 0.5678 1.54244

7.71294

7.97031

Salary of Salesman Carriage Outward Sales Expenses Total Selling and Administrative Overheads COST OF SALES PROFITS SALES

0.1 0.12798 0.057 0.98998

8.96029 1.03971 10

Raw Materials Cost Flour Water Yeast Salt Raw Materials per unit
NOTE The Value are determined on the basis of apportionment as the company produces more than one product (including fixed cost) Cost sheet for every 1lac units produced and sold. Some of the above Values are estimated
3.756 0.892 0.6789 0.4781 5.805

57

COST SHEET ANALYSIS

Direct Cost:
Direct materials
To manufacture one unit of bread the following RAW MATERIALS are required. Flour Water Yeast Salt

Direct labor/wages:
Direct labor/Wages amounts to Rs. 0.124 per unit which is approximately 2.009% of the PRIME COST. This percentage is low because a good amount of work is automated as a result of which Human resources are diverted to more productive areas such as SALES and MARKETING.

Direct cost/expenses:
Direct cost includes costs incurred in bringing the raw materials into the factory which is Carriage inward. It also includes the amount paid loading unloading charges and other petty expenses.
58

Indirect Costs:
Factory Overheads:
The Factory Overheads includes the indirect labor, Depreciation on Machinery, Works Overheads, Cost of Maintenance, Other Factory Expenses, supervisors Salary and Power & Fuel.

Indirect labor: The amount of indirect labor is Rs. 0.122 per unit. This value includes sweeper charges, support staff etc. Depreciation on machinery: The depreciation is calculated on the basis of WDV calculated @ 10% p.a. This value amounts to around 43.7% of the FACTORY OVERHEADS. The percentage high because of the level automation and technology used for production.

Power: Per unit power and fuel consumption is Rs. 0.5678.

Other factory expenses: Other factory expenses include maintenance of factory and other miscellaneous expenses.

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Office and Administration Overheads:Office and administration overheads include Depreciation on office furniture@7%, office rent, salary to staff, office and general expenses, Postage and Telegrams, telephone expenses, electricity and lightings Salary to staff: The salary paid to staff comes up to around Rs. 0.089 per unit cost.

Office and general expenses: This comprises of refreshments (tea and snacks), Postage and Telegrams and other petty expenses.

Printing and stationary: This consists of photocopy charges, printouts and other stationary items.

Telephone Expenses: Calls made by the staff members.

Electricity and lightings: It consists of office lighting and air conditioning expenses

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Sales and distribution overheads:Selling and distribution cost includes Sales Commission, Discount salesmen, Carriage outward and Sales expenses allowed, Salary of

Sales Commission :
As a part of encouragement for sales people, they are given commission of 5 % of the total sales done by them.

Discount allowed :
To attract whole sellers to buy the product they are offered a discount of 5% on the selling price.

Salary of salesmen :
The average salary paid to the sales people is around Rs. 0.1 of the total per unit cost of the product.

Carriage outward :
To carry the finished goods to the whole sellers, the transportations charge per unit/product is set as RS 0.12798.

Sales expenses :
This includes expenses incurred on advertisements and promotional expenses such as newspaper advertisements, hoardings, TV commercials etc.

Profit:
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The Profit arise out of selling per unit of the product is 11.603% of the total per unit cost price

Chapter 5
Findings & Conclusions

62

Finding The Study:


1- Direct labor/Wages amounts to Rs. 0.124 per unit which is approximately 2.009% of

the PRIME COST


2- Direct cost includes costs incurred in bringing the raw materials into the factory

which is Carriage inward. 3- The amount of indirect labor is Rs. 0.122 per unit. This value includes sweeper charges, support staff etc.
4- The depreciation is calculated on the basis of WDV calculated @ 10% p.a. This value

amounts to around 43.7% of the FACTORY OVERHEADS 5- Office and administration overheads include Depreciation on office furniture@7%, office rent, salary to staff, office and general expenses, Postage and Telegrams, telephone expenses, electricity and lightings 6- As a part of encouragement for sales people, they are given commission of 5 % of the total sales done by them. 7- The average salary paid to the sales people is around Rs. 0.1 of the total per unit cost of the product.

Conclusion
63

1.Britannia is undoubtedly the number one retailer in India. It has built a very emotional and cordial relationships with its customers which is very essential for a successful business venture. 2. The employees accept their responsibilities wholeheartedly, accept that it is their responsibility to carry out a part of their activities of Britannia company as they will be held accountable for the quality of their work. 3. As per the study, we would like to conclude that bread not being the staple food in India, has definitely evolved as a substitute for chapattis, rotis, rice, etc. It is easily available due to its excellent distribution channels. Britannia bread has acquired almost 50% stake in daily bread market. 4. Today a variety of breads are available, such as brown bread, whole wheat bread, chutney bread, etc. 5. The company is reaching out to all the sections of the society. Even after having many competitors around, Britannia bread has managed to capture a large market share not just in the urban but has also managed to penetrate the rural markets.

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Chapter-6 Suggestion

Suggestions:
1- The amount of direct as well as indirect labor should be decreased from Rs. 0.122 per unit to Rs. 0.1 in order to decrease the per unit cost.

2- The average Salary paid to the sales people should be maximized in order to motivate the sales personnel in order to maximize the sales in the market. 3- As a part of encouragement for sales people, they should be given a commission of 8 % instead of 5% of the total sales done by them in order to maximize sales and production and decreasing cost per unit.

65

BIBLIOGRAPHY
Internet: Websites
1- http://www.m4bfinance.com/costing- cost-sheet-analysis 2- http://www.britannia.co.in/dairy.htm 3- http://www.scribd.com/doc/19636482/Cost-Analysis-of-Britania-Bread

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Journals:

1- Bettis, R.A& hit, M.A (1995) The new competitive landscape, the cost management journal, Volume 16, Page no. 7-19. 2- Volkmann, Roger J., and Ronald H. Gorman. "The Influence of Cost on the production process." Journal of Management Studies. 35.1 (1998): 105-121.

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Annexure
(Cost Sheet)

68

Annexure

COST SHEET OF BRITANNIA BREAD

PROFORMA OF COST SHEET

Cost sheet for every 1lac units produced and sold.

Cost Per Unit

Quantity Manufactured Quantity sold

1 1

100000 100000

CPU(Rs) DIRECT COST Raw materials consumed Opening stock of raw materials Purchases of Raw Materials (-)Closing stock of Raw Materials Materials Consumed Direct labour/wages Direct cost/expenses PRIME COST INDIRECT COST Factory/Works Overheads
69 0 5.805 0 5.805 0.124 0.2415 6.1705

Indirect labour Depreciation on Machinery Works Overheads Cost of Maintanence Other Factory Expenses Supervisors Salary Power & Fuel Total Overheads FACTORY COST/WORKS COST Office and Administrative Overheads Depreciation on office furniture@7% Office Rent Salary to Staff Office and General Expenses Telephone expenses Electricity and Lightings Printing and stationary Total Office and Administrative Overheads COST OF GOODS SOLD Selling and Administrative Overheads Sales Commission Salary of Salesman Carriage Outward
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0.122 0.675 0.05204 0.0589 0.0282 0.0385 0.5678 1.54244

7.71294

0.0281 0.0585 0.089 0.0257 0.0219 0.03123 0.00294 0.25737

7.97031

0.705 0.1 0.12798

Sales Expenses Total Selling and Administrative Overheads COST OF SALES PROFITS SALES

0.057 0.98998

8.96029 1.03971 10

Raw Materials Cost Flour Water Yeast Salt Raw Materials per unit
NOTE The Value are determined on the basis of apportionment as the company produces more than one product (including fixed cost) Cost sheet for every 1lac units produced and sold. Some of the above Values are estimated
3.756 0.892 0.6789 0.4781 5.805

71

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