Britannia Industries Ltd Management Discussions

I. INDUSTRY STRUCTURE AND DEVELOPMENT

The packaged food industry in India demonstrated resilience during FY 2024-25 despite facing economic and other challenges. Consumer demand remained subdued for most part of the year due to inflationary pressures and overall economic slowdown. However, rural markets began showing signs of recovery, supported by rise in agricultural income and increased manufacturing activities in some sectors.

While demand trends were stabilising, rising costs of key commodities became a major concern.

Amidst this challenging business environment, Britannia maintained its market leadership by focusing on distribution expansion, consistent brand investments and competitive pricing. Additionally, strategic investments such as supply chain optimisation and implementation of technology driven solutions along with robust cost efficiency programs helped the Company mitigate rising costs while ensuring product availability across urban and rural markets.

Packaged Food Industry Trends and Britannias Strategic Actions for FY 2024-25

FY 2024-25 was a year of evolving consumer preferences, shifting market dynamics and digital transformation.

Consumer-Centric Innovation and Premiumisation in Bakery:

Within the bakery segment, consumer preferences continued to evolve with a clear shift towards more premium and differentiated offerings. Britannia responded proactively to these evolving trends by accelerating innovation and premiumisation across its product portfolio.

Expanding Reach and Serving Value-Conscious Consumers:

Consumer demand for convenient and ready-to-eat products remained robust and Britannia capitalised on this momentum by expanding its reach in rural markets. With a sharp focus on value-driven offerings, particularly smaller pack sizes of biscuits and cakes, Britannia effectively catered to the preferences of price-sensitive consumers. Further, the

Companys extensive distribution network enabled penetration into underserved areas, contributing significantly to volume growth and reinforcing Britannias leadership across market segments.

Digital Acceleration and Building a Future- Ready Brand:

Digital transformation continued to reshape consumer purchasing behaviour within the packaged food industry. Britannia remained at the forefront of this shift by strengthening its presence across leading E-commerce and Quick Commerce platforms and scaling up modern marketing initiatives by use of Advanced Technology and Artificial Intelligence (‘AI). These tools enhanced consumer experiences and brand visibility among digitally savvy audiences. Britannia also leveraged digital platforms to launch exclusive products and drive targeted campaigns, ensuring that its brands remain on top of the mind in a competitive landscape.

FY 2024-25 underscored Britannias ability to adapt and thrive in a volatile business environment. By strengthening the core portfolio, enhancing operational efficiencies, implementing strategic pricing and prioritising innovation, Britannia emerged as a benchmark for resilience in the packaged food industry. Further, Britannias unwavering focus on consumer centricity, operational excellence and sustainability, strengthened its position as one of the Indias most trusted food companies.

(A) BAKERY BUSINESS Biscuit

The Biscuit category continued to evolve during FY 2024-25, reflecting shift in consumer preferences towards premium, indulgent and differentiated offerings. Despite the macroeconomic headwinds from geopolitical tensions, input cost inflation and intensified competition, the segment remained resilient, driven by urbanisation, changing lifestyles and growth of Quick Commerce channels.

Britannia proactively responded to these emerging trends by accelerating innovation across its portfolio to cater to diverse consumer tastes and preferences. Additionally, the Company leveraged generative AI, strategic collaborations and culturally resonant campaigns to deepen consumer engagement and reinforce brand loyalty across its diverse brands.

Cake

The Cake category, across both Slice and Non-Slice formats, continued to gain strong traction among consumers. Over the years, the segment has seen emergence of several regional and local players, leading to increased fragmentation and creation of niche sub-segments. In such a dynamic landscape, it is vital for the Company to maintain its presence across key formats to strengthen its leadership position. To stay relevant with younger consumers, Britannia has strategically evolved its offerings in this category. The Slice Cake portfolio was enhanced with improved recipes to deliver softer & tastier products and was launched in premium packaging to appeal to the youth demographic. Further, media initiatives aimed at driving awareness and generating trials through effective and engaging communications are being undertaken to accelerate growth in this portfolio. As large format cakes and premium offerings at higher price points have witnessed significant growth, particularly through non-traditional channels such as Modern Trade, E-commerce and Quick Commerce, Britannia has strategically leveraged these platforms to strengthen its presence and drive momentum in the Cake category.

Rusk

The Rusk category continued to witness growing localisation i.e., increase in share of regional and local players across markets. This intensifying competition posed challenges, particularly in price sensitive segments. Despite these challenges, Britannia Toastea delivered strong volume led growth during the year by focusing on delivering superior quality, consistent taste, unique propositions and expanding availability across geographies, thereby reinforcing its leadership in the category.

Bread

Bread continues to be a staple food for a large section of consumers with the category witnessing increased household penetration and rising consumption, particularly during breakfast occasions. The demand for longer shelf-life products and healthier variants has also gained momentum, especially in the emerging channels such as Quick Commerce.

Britannia remains focused on strengthening its Bread portfolio and deepening market presence through enhancing product quality, innovating on healthier variants and expanding reach across traditional and modern trade channels.

(B) DAIRY BUSINESS

India remains the worlds largest milk producer, contributing ~23% of global production. Milk has traditionally been considered an important health food and a good source of proteins, fats, carbohydrates, minerals and vitamins. Roughly half of Indias milk production is consumed as fluid milk while the remaining is processed into a variety of value-added dairy products.

The Indian dairy industry has seen a clear shift towards formalisation with the organised segment currently accountingforabout35–36%ofthemarketbyvaluewhich is registering faster growth compared to the unorganised sector. In the coming years, the organised dairy segment is expected to deliver healthy revenue growth, driven by sustained demand for value-added products, stable liquid milk sales and supportive pricing trends.

While packaged liquid milk remains a major growth driver, healthy demand is also anticipated in categories like cheese, yogurt and other value-added dairy offerings.

(C) ADJACENT BUSINESS

Cream Wafer

The Cream Wafer category was impacted by input price inflation in the second half of the year. Additionally, penetration levels remained low, indicating significant headroom for future expansion and growth.

Despite near-term pressures, the Company remains focused on building scale and strengthening its presence in this underpenetrated and fragmented category by increasing awareness, improving accessibility and offering differentiated products.

Croissant

The Croissant category in India remains at a nascent stage, with presence of a few players and modest category awareness. Further, market development efforts by most players have been largely restricted to store visibility & availability with minimal investment in category-building and consumer awareness. However, the category continues to provide significant opportunities for growth, given evolving consumer preferences for differentiated snacking formats and premium indulgence.

In a category that is still emerging, Britannia Treat Croissant delivered strong growth in FY 2024-25, driven by focused efforts in innovation, awareness building and brand engagement.

(D) INTERNATIONAL BUSINESS

Over the years, Britannia has evolved into a multinational organisation with a strong global presence spanning more than 80 countries. Britannias International Business is largely centered in the Middle East, Americas, Africa and Asia Pacific regions. The business environment in these geographies is highly competitive with the presence of large local and international players.

Britannia has a diversified manufacturing footprint, with owned facilities in Oman, United Arab Emirates (UAE), Kenya and Nepal, along with contract manufacturing arrangements in Egypt. This geographically distributed supply network enables agility in serving varied market needs. The business continued to face multiple challenges during the year including geo-political conflicts in the Middle East, localisation of workforce in Oman, currency volatility, commodity price fluctuations and modern trade dominance.

To mitigate these challenges, the Company responded with resilience, driving cost efficiency programs, implementing competitive yet premium pricing strategiesanddeepeningmarket-specificinsightstostay aligned with evolving consumer needs. The emphasis on locally manufactured products across emerging economies continues to increase and Britannia remains well-positioned to capitalise on this shift. Additionally, the rapid acceleration of E-commerce in key markets, particularly the GCC (‘Gulf Coperation Council) Countries and the Americas, presents an attractive growth opportunity for the Company.

II. BUSINESS STRATEGY (A) BAKERY BUSINESS Biscuit

Britannia continued to reinforce its leadership in the packaged food industry during FY 2024-25 by adopting a multifaceted business strategy focused on modernizing its core offerings, driving innovation, embracing digital transformation and prioritizing corporate responsibility. These strategic initiatives not only addressed industry challenges but also strengthened Britannias position as a consumer-centric and forward-thinking brand. Core brands such as Marie Gold, Good Day and Jim Jam were revitalised through purpose led initiatives and culturally relevant campaigns that deepened consumer connect. While premiumisation was fuelled by differentiated launches like ‘Pure Magic Choco Frames - Harry Potter Edition and ‘Pure Magic Choco Stars, innovations like ‘Good Day Chunkies Tropical Coconut Cookies, ‘50 50 Golmaal Top Buttery Bites and ‘50 50 Golmaal Butter Garlic, further offered consumers a wider range of flavours and experiences. Digital Transformation remained a critical enabler, with technology-led activations ranging from AI-driven storytelling to augmented reality based marketing, enhancing brand engagement, especially among younger audiences. While initiatives such as "Britannia A-Eye", democratised the retail experience empowering the visually impaired, the purpose-led initiatives such as "Har Pocket Ab Dustbin" and "Nature Shapes Britannia" reinforced the Companys commitment to sustainability and social impact.

Cake

In FY 2024-25, Britannia continued to strengthen its leadership in the Cake category through innovation, premiumisation and portfolio expansion across key formats and price points.

In the Layerz Cake range, the Company launched value-driven innovations such as ‘Jammy & Cr?me Layer Cake at an accessible Rs. 5/- price point along with distinctive flavoured Layer Cake variants like ‘Choco Vanilla and ‘Strawberry Cheese cakes, priced at Rs. 10/-. These products catered to evolving consumer preferences while expanding accessibility across markets.

In the Slice Cake portfolio, the Company successfully revamped its products with significantly improved recipes and contemporary packaging designed to resonate with younger consumers. This initiative has enhanced the appeal of Britannias Slice Cakes, making them more relevant and desirable to the youth. During the year, the Company also launched a ‘Double Choco Chip Cake in the large format, crafted with rich cocoa solids, to cater to the growing consumer demand for indulgent experiences.

Through these initiatives, Britannia continued to strengthen its position and drive growth in the Cake category.

Rusk

In FY 2024-25, Britannia continued to strengthen its market presence in the Rusk category by expanding the availability of its differentiated variants viz., Milk Rusk, Butter Rusk and Cake Rusk, ensuring a robust portfolio that caters to evolving consumer preferences. These newer variants were scaled up across geographies, supported by focused distribution efforts and region-specific print and digital media campaigns. A new TVC campaign for Milk Rusk launched in key geographies was received well by the influencer community and the marketing fraternity. The brand further strengthened its digital engagement with the introduction of dedicated social media handles for Britannia Toastea.

To support sustained growth and competitiveness, the Company maintained its focus on in-house manufacturing and delivering superior quality products. By combining product innovation, brand engagement and robust distribution, Britannia is well-positioned to drive growth and consumer relevance in the Rusk category.

Bread

In FY 2024-25, Britannia adopted a multifaceted strategy to enhance its position in the Bread category through product innovation and brand revitalisation. Recognising the rising demand for protein and fibre rich diets, driven by increased awareness around ingredients, clean labels and mindful consumption, the Company introduced differentiated offerings such as Protein Bread, High Fibre Bread and the Better Bread range.

Britannia also undertook a comprehensive revamp of Bread portfolio to redefine its market presence. The new packaging architecture features modern, vibrant designs with a premium edge, elevating the brands appeal and ensuring strong shelf visibility. To effectively communicate this transformation, Britannia launched a nationwide integrated marketing campaign across various channels, including out-of-home digital screens, vernacular print ads and mobile media along with impactful visibility formats in multiple cities to maximise brand recognition and engagement. Further, the Company optimised its digital strategy and investments to enhance visibility and strengthen its presence across fast-evolving online and Quick Commerce platforms.

This integrated approach on health-centric innovation, brand revitalisation and strategic channel expansion has further reinforced the Companys leadership in the Bread category.

(B) DAIRY BUSINESS

During FY 2024-25, Britannia continued its strategy of strengthening its core brands, diversifying its portfolio, enhancing manufacturing and procurement capabilities and improving the channel mix. The Company remained focused on delivering high-quality, innovative dairy products that cater to evolving consumer preferences while ensuring operational efficiency and sustainable sourcing across its value chain.

Strengthening the Core and Expanding Portfolio:

A key milestone during the year was the relaunch of the cheese portfolio under ‘Britannia The Laughing Cow brand. The refreshed range featured an improved product mix, vibrant packaging and competitive pricing, making it well-positioned to meet evolving consumer preferences and expand Britannias footprint in the cheese segment.

With innovation being a key growth driver, Britannia launched Winkin Cow ‘Grow, a flavoured milk fortified with 16 essential vitamins and minerals, developed specifically to support childrens nutrition and growth, at an accessible price point of Rs. 20/-.

The Company also relaunched Winkin Cow ‘Thick Classic Lassi with an improved formulation at Rs. 20/-, offering a refreshed entry and gain in the market share in the yogurt-based beverages space.

Enhancing Manufacturing and Procurement Capabilities:

On the operational front, Britannia scaled up activities at its world-class dairy manufacturing facility at Ranjangaon, Maharashtra. The facility currently handles ~350 kilolitres of milk per day and supports multi-category dairy production, including cheddar, mozzarella and processed cheese, milkshakes, yogurt, ghee, skimmed milk powder and whey powder, enabling the Company to respond to dynamic market requirements.

The Companys Milk procurement for FY 2024-25 stood at ~77,000 litres per day, facilitated through a strong network of over 3,000 dairy farmers. The Company maintained its focus on backward integration through initiatives in breeding, feeding and livestock management. These efforts not only enhanced the quality and consistency of milk supply but also contributed to livelihood enhancement in the dairy value chain.

Building Competitive Advantage Through Channel Strategy:

To accelerate growth, Britannia adopted a balanced channel strategy by strengthening the distribution of ‘Britannia The Laughing Cow Cheese and Winkin Cow beverages across conventional retail channels while also leveraging E-commerce, Modern Trade and Premium Channels as strategic growth levers. With product innovation, manufacturing excellence and a future-ready channel strategy, Britannia remains committed to scaling differentiated offerings, deepening its consumer connect and building a sustainable dairy business that is aligned with evolving industry dynamics and consumer expectations.

(C) ADJACENT BUSINESS Cream Wafer

In FY 2024-25, Britannia continued to strengthen its presence in the Cream Wafer category, focusing on strategic markets and value-led formats.

In view of increasing competition, Britannia strategically prioritised Tamil Nadu as a key market, focusing on offering superior quality products at attractive price points and leveraging its distribution network to achieve success in Tamil Nadu.

Innovation remained a key pillar, exemplified by the launch of the first-of-its-kind ‘Milk Bikis Wafer Roll under the iconic Milk Bikis brand, offering consumers a new, indulgent experience. Additionally, a targeted film campaign was rolled out in the state of Tamil Nadu to drive awareness. Responding to emerging consumption trends, Britannia introduced combo packs pairing Treat Cr?me Wafers with leading ice cream brands across key Quick Commerce platforms, tapping into new snacking occasions and enhancing product relevance.

Croissant

In FY 2024-25, Britannia continued to scale its presence in the nascent Croissant category through a strategy focused on disruptive innovations, impactful digital initiatives, premium brand positioning and competitive pricing. The Company launched 2 new variants viz., ‘Schezwan and ‘Triple Choco Croissant, each designed to create excitement across distinct consumer segments.

To further build awareness and establish brand connect, Britannia undertook multiple high-impact digital campaigns, including the Croissant Pronunciation Challenge and activations around National Croissant Day and Valentines Day. These initiatives resonated particularly well with Gen-Z consumers and earned multiple industry recognitions across digital and retail marketing platforms.

Through sustained investment in product innovation and consumer engagement, the Company continues to lead the emerging Croissant category in India.

(D) INTERNATIONAL BUSINESS

The Companys strategy to achieve growth and market share in the International Business includes:

Strengthening Brand Equity: Strengthen brand equity and product affinity among the Indian diaspora thereby maintaining a competitive edge over other international players.

Expanding Product Offerings:

Introducing new product experiences for existing consumers while developing ethnicity-inspired offerings to attract and engage consumers from diverse nationalities.

Deepening Consumer Engagement:

Enhancing brand relevance in the Middle East and other key markets by tailoring the product portfolio to meet local preferences and cultural expectations.

Expanding Operations:

Establishing and expanding local operations in fast-growing emerging markets through strategic evaluation of opportunities such as contract manufacturing, acquisitions and joint ventures.

Strengthening Distribution:

Customizing its distribution model across Middle East North Africa (‘MENA) markets to address to evolving business dynamics and consumer needs.

Accelerating Growth:

Scaling up presence in high-potential export markets across the Americas, Asia and Africa by intensifying efforts in mainstream retail and E-commerce channels and entering into white space markets to capture untapped demand.

III. SEGMENT INFORMATION

The operating segment of the Company is identified to be ‘Foods.

IV. OPPORTUNITIES AND THREATS (A) BAKERY BUSINESS

The Bakery segment continues to be an integral part of the packaged food industry in India. The segment is well-poised for significant growth, supported by rising disposable incomes, urbanisation, growing demand for convenient foods and evolving lifestyle preferences. Further, the growth of Quick Commerce and growing consumer affinity for digital platforms is giving rise to greater opportunities to reach consumers, especially in urban centres.

Health-conscious consumption patterns have opened up new avenues for innovation, ranging from high-fibre and multigrain variants to low-sugar bakery products. Premiumisation is another key lever, with consumers seeking indulgent experiences and differentiated formats, leading to growing demand for premium and chocolate-rich offerings. Additionally, rural markets are emerging as high growth zones supported by infrastructure improvements and the rising penetration of Modern Trade and E-commerce. However, the segment also faces structural challenges including commodity price volatility, inflationary pressures on supply chain costs and intensifying competition from regional and unorganised players. Addressing these risks through operational efficiency, cost optimization, differentiated offerings, brand building and consumer centric strategies will be critical for sustainable growth.

Biscuit

The Biscuit category continues to provide significant opportunities for growth, driven by rising consumer preference for healthy, convenient and ready-to-eat products. Urbanisation, rapid growth of Quick Commerce and the shift towards nuclear family structures are further enhancing the role of biscuits as an accessible meal option. Premiumization offers another promising growth avenue, with consumers willing to pay more for indulgent experiences such as premium cookies.

However, it faces headwinds from high inflation in raw materials like wheat, sugar, edible oil and intense competition from regional and unorganised players, especially in price-sensitive segments.

Cake

The Cake category continues to grow on the strength of increasing penetration and consumer interest in newer formats. Innovation and value-led premiumisation remain key levers for growth. However, profitability is affected by elevated commodity costs, especially cocoa and intensified competition from regional players.

Rusk

The Rusk category presents significant potential for growth, especially for companies with a national presence, due to its fragmented and unorganized nature. Expanding the consumer base is achievable by ensuring superior product quality and offering differentiated products at competitive prices.

However, rising health-consciousness and growing preference for local brands may pose risk to growth in this category.

Bread

The Bread segment is seeing increased demand for health-oriented and value-added products including high-fibre, multigrain and fortified breads. However, rising raw material prices continue to effect margins and cost management.

(B) DAIRY BUSINESS

The Dairy category presents strong long-term opportunities, driven by increasing demand for value-addedproductsandgrowingconsumerawareness around health and wellness. Rising penetration of modern trade and digital platforms further enhances the scope of this category for expanding operations and market reach. However, increasing milk prices and elevated input costs such as labour and raw materials continue to pose significant challenges to growth in this category.

(C) ADJACENT BUSINESS Cream Wafer

The Cream Wafer category remains underpenetrated at the national level, offering significant opportunities for growth across untapped markets in India. Britannias encouraging performance in the state of Tamil Nadu provides strong foundation to deepen brand relevance and replicate success in other regions through value-led propositions, accessible pack formats and stronger in-market execution. The growing acceptance of wafers as a convenient snack, especially among younger consumers, further strengthens the categorys long-term potential.

However, the emergence of new indulgent formats across both flat and roll wafer segment, poses a threat to Britannias share in the premium segment of the Wafer category.

Croissant

The Croissant category provides significant potential for growth, particularly for companies with a National presence, given that the penetration is low and consumer aspirations are growing. Modern Indian consumers are increasingly seeking new and exciting product formats and Croissant represents a product which gives consumers a taste of the premium bakery category.

However, increased activity from local bakeries and select national players poses a risk of fragmentation, making it imperative to build sustained relevance through product superiority, brand visibility and consumer education.

(D) INTERNATIONAL BUSINESS

Britannias International Business is poised for strong growth, with opportunities emerging in key markets like the GCC, Americas and Africa. This growth is being driven by E-commerce expansion, localized manufacturing and innovative product offerings tailored to meet regional preferences.

Strategic investments in innovation, consumer engagement through AI and Augmented Reality (‘AR) and cost efficiency programs are expected to further accelerate the momentum.

However, the business faces challenges such as geopolitical tensions in the Middle East, rising input & freight costs and currency fluctuations. Additionally competition from local and global players and evolving regional dynamics also pose risks, requiring continued agility, focused execution and proactive mitigation strategies.

V. OUTLOOK AND KEY RISKS

India continues to be one of the fastest growing major economies in the world. The growth prospects for the Indian FMCG Industry in FY 2025-26 seem attractive on account of favourable demographics, rising disposable incomes, increasing rural consumption and government-led initiatives focused on investment and demand. Despite the global economic slowdown primarily due to tariff uncertainties and restrictive trade practices, Indias GDP is expected to grow at around 6.5% thereby offering strong growth prospects for the FMCG sector.

However, rising protectionism, global trade disruptions and geopolitical tensions have slowed international economic activity and increased the risk of recession in several economies. These developments may impact India indirectly through inflation, currency fluctuations and global demand pressures.

High input prices especially for key commodities like wheat, edible oil, cocoa etc., remain a significant concern. Any adverse developments in monsoon or crop yield could intensify inflationary pressures and impact growth especially in rural markets. Additionally, the competitive intensity in both organised and unorganised segments continues to put pressure on pricing and margins, particularly in price-sensitive markets.

In spite of this challenging macroeconomic environment, the outlook for your Company looks positive for FY 2025-26. Britannias diversified portfolio, strong brand equity, robust distribution and continued focus on product innovation position it well to capture growth opportunities across both core and adjacent categories. While urban markets are likely to benefit from premiumisation and rapid expansion of modern and digital trade, continued momentum in rural consumption supported by a favourable monsoon forecast and government interventions are expected to aid volume growth.

Further, the Companys proactive approach to pricing and procurement, prudent cost management and investments in technology-led distribution are expected to drive expansion and growth in the coming years. Britannia is confident in its ability to navigate macroeconomic uncertainties while continuing to create long-term value for its Stakeholders.

VI. FINANCIAL AND OPERATIONAL PERFORMANCE The key highlights of the financial performance (on standalone basis) are given below:

( Rs. in Crores)

Particulars	2024-25	2023-24
Revenue from Operations	17,295.92	16,186.08
Operating Profit	2,778.98	2,799.63
Profit After Tax	2,130.72	2,082.05

VII. KEY FINANCIAL RATIOS

The Key financial ratios (on standalone basis) along with explanation for significant changes in these ratios, if any, compared to the previous financial year are given below:

Particulars	Unit of Measurement	2024-25	2023-24
Net Profit Margin	%	12.1	12.7
Operating Profit Margin	%	16.1	17.3
Debtors Turnover Ratio	Times	45.8	50.3
Inventory Turnover Ratio	Times	37.1	38.0
Debt Equity Ratio*	%	31.3	57.8

 

Particulars	Unit of Measurement	2024-25	2023-24
Current Ratio	Times	1.0	1.2
Interest Service Coverage Ratio	Times	22.1	19.9
Return on Net Worth#	%	57.5	62.1

* Debt Equity ratio has changed by 46%, primarily on account of change in debt position and Net Worth.

# Return on Net Worth has changed by 7%, primarily on account of increase in Net Worth.

VIII. INTERNAL CONTROL SYSTEMS AND THEIR

ADEQUACY

Your Companys Internal Control Systems are commensurate with the nature, size and complexity of its business.

The Directors have laid down Internal Financial Controls to be followed by your Company and such policies and procedures have been adopted for ensuring the orderly and efficient conduct of business, adherence to Companys policies, safeguarding of assets, prevention and detection of frauds and errors, accuracy and completeness of accounting records and timely preparation of reliable financial information. An independent firm carries out the Internal Audit of your Company and reports its findings to the Audit Committee on a regular basis. Internal Audit provides assurance on functioning and quality of Internal Controls along with the adequacy and effectiveness through periodic reporting. Internal Risk and Control function also evaluates organizational risks along with the controls required for mitigating those risks.

Your Company has a Code of Business Conduct for all the Employees and a clearly articulated and internalized delegation of financial authority. These authority levels are periodically reviewed by the Management and modifications, if any, are submitted to the Audit Committee and the Board for approval. Your Company also takes prompt action on any violations of the Code of Business Conduct by its Employees. To further strengthen the internal control process, your Company has a compliance management system to monitor and enforce timely compliance with the applicable Statutory Laws, Rules and Regulations.

During the year under review, the Internal Financial Control Audit was carried out by the Statutory Auditors and their Report on the same is forming part of the Annual Report.

IX. HUMAN RESOURCES AND INDUSTRIAL

RELATIONS

Britannia considers People as its greatest asset and it firmly belives in empowering People to Make Ti)NGS Happen. Guided by the values of INVITi)NG, IGNITi)NG, CREATi)NG and RESPECTi)NG, your Company believes that building a resilient, innovative and inclusive organisation begins with a culture that empowers individuals to take ownership, lead, grow and create value for the society. Britannia continues to foster an environment where individuals are inspired to innovate, collaborate and Make Ti)NGS Happen together, every single day.

INVITi)NG - Fostering a Culture of Well-being and Belongingness:

At Britannia, the spirit of INVITi)NG is reflected in a workplace that is welcoming and inclusive, where people feel supported, respected and nurtured. In line with this ethos, Britannia continues to offer a range of holistic wellness initiatives such as Mindful Mondays (focused on Mindfulness and Financial Wellness), Wellness Wednesdays (for Emotional Wellness) and Fitness Fridays (Physical Activities), designed to nurture the emotional, physical, financial and social Wellbeing of the Employees. These programs, led by Experts and Psychologists have positively impacted nearly 1,600 Employees, empowering them to live healthier and more fulfilling lives. Your Companys commitment to employee well-being was further exemplified through the Britannias Fitbrit program, a high impact fitness challenge that saw an enthusiastic participation from ~242 Employees to adopt healthier routines through walking, running and cycling thereby, demonstrating a strong commitment to physical health and wellness. This initiative not only promoted physical well-being but also fostered a culture of motivation, personal excellence and collective energy across teams.

IGNITi)NG - Fueling Ambition and Leadership:

At Britannia, IGNITi)NG represents our initiatives to fuel the hunger of our Employees at every level. Recognising that growth comes from within, the Company invests in robust learning and leadership development programs that empower individuals to step into larger roles with confidence.

In FY 2024-25, your Company undertook focused initiatives to build leadership skills and strengthen future readiness. Structured learning and development framework encompassing 3 key pillars viz., organisational capability, need based skill enhancement and leadership development was implemented to empower Employees to learn and add value by addressing specific skill gaps, boosting managerial effectiveness and entrepreneurial skills. Your Company also launched a thriving community learning platform with over 650 Managers to share knowledge and access external perspectives and upskill through curated e-learning modules. Collectively, these initiatives are enhancing organisational agility, deepening workforce capabilities and strengthening future readiness. In line with its commitment to foster a culture of creativity and excellence, Britannia actively collaborates with leading academic institutions to tap into emerging talent. In FY 2024-25, the Company launched "Ingenious", an innovation-led campus program focused on product and packaging ideation. This initiative received strong participation, with around 238 students submitting 120 entries, out of which 8 concepts were selected for further development. Through such platforms, the Company nurtures industry ready talent and reinforces its culture of innovation.

RESPECTiNG - Promoting Responsible Citizenship through Volunteering and Community Action:

Guided by its RESPECTi)NG ethos, your Company cultivates a culture that emphasises ethical conduct, responsible citizenship and respect for both People and the Planet. One of the key expressions of this commitment is the Companys structured Employee Volunteering Programme "Big Hearts". During FY 2024-25, over 300 Employees across multiple locations actively contributed to community-led initiatives focused on improving school infrastructure, supporting childrens education and leading cleanliness drives that promoted healthier living environments.

These initiatives are a reflection of Britannias belief that meaningful societal impact stems from everyday actions. By encouraging employee-led volunteering and integrating sustainability into workplace culture, your Company continues to reinforce its long term commitment to ‘DO THE RIGHT Ti)NG i.e., doing whats right for the People, Community and the Planet.

CREATi)NG - Enriching Careers, Empowering Growth:

At Britannia, we believe in building ‘enriching careers by giving people opportunities to grow, explore and exceed expectations. Towards our on-going efforts to develop leaders at all the levels, flagship programs such as LEAP (Leadership Excellence Accelerated Program) for emerging managers, STEP (Sustainable Talent Enhancement Program) for promising leaders, ASPIRE for mid-managers transitioning into leadership roles and a comprehensive Leadership Development Program for high-potential individuals are in place to strengthen and enhance the leadership skills and create the next generation of leaders. In FY 2024-25, around 15% of the Managers nominated across levels participated in these programs, gaining valuable exposure and enhancing their leadership capabilities. Through these structured interventions, Britannia continues to build a strong leadership pipeline while fostering careers that are both enriching for individuals and vital to the Companys long-term success.

A Culture Built for the Future

At Britannia, People are at the heart of everything we do and our focus remains on creating a workplace where People feel inspired, valued and empowered to contribute their best. As on 31 March 2025, Britannia had 4,672 permanent employees on rolls of the Company, who bring passion, curiosity and strong values to work every day. By continuing to invest in their growth, well-being and development, we aim to provide a workplace where individuals thrive and where Britannia grows not just as a business, but as a purposeful and future-ready organization built around its People.

Awards & Recognitions:

The Great Managers Awards 2024

Britannias consistent focus on building strong managerial capabilities was once again recognised at the Great Managers Awards 2024, organised in collaboration with People Business, where the Company was proudly recognized among the Top

50 ‘Companies with Great Managers Award.

Further reinforcing this achievement, two of the Britannias Managers were honoured with the ‘Great Managers Award, placing them among the Top 100 Managers recognised nationwide at the Great Managers Awards 2024. These recognitions reflect Britannias commitment to nurture high-performing individuals who exemplify excellence, impactful leadership and a growth mindset.

"10% Club" of the Jombay 1000 Women Leaders Program 2024

Britannia believes in nurturing the next generation of Women Leaders and continues to invest in their development through impactful partnerships.

As part of this endeavour, your Companys commitment to empowering women was recognised through its participation in Jombays 1000 Women Leaders Program 2024, where out of over 850 participants in the program, 2 of Britannias Women Leaders were honoured with the prestigious ‘10% Club recognition, for their exceptional performance and leadership skills. This recognition reflects Britannias IGNITi)NG value of fueling ambition and CREATi)NG ethos of building enriching, future-ready careers, especially for women shaping the Companys tomorrow.

Top 10 Desirable FMCG Companies 2025

Britannia was also recognised among the Top 10 most ‘Desirable FMCG Companies by Unstop, positioning it as a preferred place to build fulfilling careers and a workplace that inspires ambition.

X. CAUTIONARY STATEMENT

Statements in this Management Discussion and Analysis Report describing the Companys objectives, expectations or predictions may be forward looking within the meaning of applicable Laws and Regulations. Actual results could differ materially from those expressed or implied. Important factors that could make a difference to your Companys operations include raw material availability and prices, cyclical demand and pricing in the Companys principal markets, competitive actions, disruptions due to pandemic and natural calamities, changes in government regulations, tax regimes, economic developments in India and in countries in which the Company operates and other incidental factors.