management control systems of Britannia

7/29/2019 management control systems of Britannia

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BRITANNIA INDUSTRIES LTD

Management Control System


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Introduction

Organizational Structure

Strategies- Marketing, Operational and Financial

Organizational Culture

Control System-HR Policies

Focus on Cost, Quality and Profitability

Corporate Governance

Board Committees

Code of Conduct.


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BRITANNIAESTABLISHED- 1892

PRODUCT LINE- Biscuits, snacks, packed milk, cheese, butter, buttermilk andyogurt

PLANTS - Kolkata, Mumbai, Delhi, and Chennai

Market Leader- 38% share & Annual Sales Turnover Rs.4847 Crores

Corporate Strategy- To lay the base to project our future as a successful'food' company, a company that provides high quality and tasty, yet healthyfoods and beverages.

Vision - Every third person, in India, should be a Britannia consumer.

Mission - To dominate the food and beverage market in India through aprofitable range of Tasty Yet Healthy products by making every Indian aBritannia consumer.


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ORGANIZATIONAL STRUCTURE


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STRATEGIES

Marketing Strategies Target customers in each and every segment

Customer-oriented approach

New choices for consumers

Operational Strategies Techniques like JIT ,TQM ,Kaizen implemented to enhance

the quality of products. Investment in infrastructure

Consolidating its manufacturing locations

Improvement in efficiency and cost reduction


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Financial strategy Financial businesses named Britannia finance & kotak

Britannia are established.

Sinking funds kept to meet the future uncertainties

Long term capital needs met by preference shares mostly


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ORGANIZATIONAL CULTUREBritina has a very Open and transparentculture

Which Aims at Creating growth opportunities

Decision making and ideal leadership isencouraged

It Emphasizes on various functional training

programs upgrading its employeees

The main Focus is given on strongperformance and high results


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The critical Leadership Behavior/ Skills that are desiredwhile hiring are:

Integrity

Team Orientation

People Development

Learning Orientation Customer Orientation

Quality Orientation

Drive for Results

Entrepreneurial SpiritSystem and Process

Orientation

Communication


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The talent search in Britannia has led to the following avenues(the recruitment and hiring is done from 3 different sources)

1. From within: wer they look for Consistent excellentperformers.

2. Management Trainee program : (it includes campus

hiring and training programs etc..) it leads To building across-functional, cross-regional and cross-divisional skillsand competencies in the trainees who go through it.

The ultimate objective is to build them into BusinessManagers of the future.

1. Lateral hires: Hire on a lateral basis from the marketwith a view to bring in skills and competencies from thepremier companies.


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FOCUS ON COST, QUALITY, PROFITABILITY

1. Environment &Safety Environmental fuels like propane, LPG, PNG & biodiesel are used for

baking purpose whenever available to reduce pollution. Safety Measure:- Implementation of fuel safety measures

Creation of emergency control room

2. Quality Standards

Each year the companies quality standards are becoming morestringent.

One of its contract packer- Sunandram Foods Pvt Lts at

Guwahati(cakes) was awarded the Performance Excellence Trophy

in manufacturing.

3. Information Technology Continuous investment in IT to improve operational efficiency &

productivity.

Implementation of Business Intelligence System

Coz of the adoption of consolidated core ERP infrastructure-there

hve bn significant reductions in energy/ power consumption and

enhanced efficiencies.


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4. Energy Conservation

Replacement Of Inefficient Motors In Circulating Fans Of Baking Ovens By EnergyEfficient Motors

Installation Of Efficient Continuous Mixing System.

Installation Of Roof Top Air Extractor (Operating Without Electricity). Installation Of CFL Lights Replacing Conventional Tube Lights.

5. Technology absorption, adaptation & Innovation

New pre-heating technology in baking process is being tested, which can increase

plant output by 10%. Direct transfer of flour from flour mill to factory through pipe lines

Packing machine speed enhancement has been effected through automation & servocontrolled motion.

Benefit:

Improved Productivity Reduction of Wastage

Better Energy Utilization

Process improvement.


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6. Supply Chain Initiatives A study on optimizing supply chain efficiencies was undertaken with the

support of KPMG

identify and prioritize the key initiative to derive benefits out of efficient

purchase of raw materials, manufacturing & distribution logistics &

operational plan.

As a result,

Yielded a saving of Rs 202mn (partly because of opportunities identified

in supply chain & partly from ongoing process improvement in

business) Operating profit increased by 62%

PAT increased by 30%

Net sales increased by 22%


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CORPORATE GOVERNANCE

Board of Directors

Head: Mr. Nusli N Wadia (Non-Ex. Chairman)

3/4th of the Board Members are Non-Ex Directors.

Board comprises 6 independent Directors.

Maximum Gap between any 2 board meetings: 4months

Audit Committee

Role of audit-committee :

Review of Internal Audit reports and Statutory Auditors report on FinancialStatements

General interaction with Internal Auditors

Review of Financial Statements


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Internal Audit and Control

The Companys internal control systems are commensurate with:

Nature, Size and Complexities of the business

Ensures proper safeguarding of assets

Maintaining proper accounting records

Remuneration Committee

Broad terms of reference of the Remuneration

Recommendations to the Board, of salary/perquisites

To be responsible for the administration and superintendence of the

ESOS


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Share transfer & shareholders/investors grievance and

ethics/compliance committee

Approves and monitors transfers &transmission of securities.

Looks into various issues relating to shareholders.

Other Committees

Investment Committee

o Approves investments/divestments of the funds

Nomination Committee

o Appointment of the Managing Director

INNOVATION COMMITTEE

Address all matters relating to the Companys product

Address technical development activities


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RESPONSIBILITIESOF EMPLOYEES OF

BRITANNIA

Standards ofEthical Behavior

ProtectingCorporate Assets

Accuracy ofCompany Records

and Reporting

WORKPLACE

RESPONSIBILITIES

FairEmploymentPractices and

Diversity

Harassmentand

Intimidation

Drug-FreeWorkplace

Safety in theWorkplace

MaintainingDiscipline atworkplace


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Gifts, Favors and Entertainment.

Dealing with Third Parties

Financial Reporting & Records

Media, Publishing and Public Appearances

Quality of Products & Services

Fair Treatment

REPRESENTING BRITANNIA TO CUSTOMERS & OTHER EXTERNAL CONSTITUENCIES

PRIVACY /CONFIDENTIALITY

Proprietary andConfidentialInformation

Privacy ofCustomer

Information andData Protection

Privacy ofEmployee

Information


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CORPORATE SOCIAL RESPONSIBILITY

National Interest

Corporate Citizenship

Working with Governments

INVESTMENTSAND OUTSIDEACTIVITIES

FinancialInterests

Conflicts ofInterest


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management control systems of Britannia

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