Demand Estimation for Britannia Biscuit Industry

3306 Words Aug 18th, 2010 14 Pages
Demand Estimation for Britannia Biscuit Industry

1.Introduction:
Our objective was to study the demand variation of Britannia Biscuits in India with respect to certain variables like, Price, Price of the substitute (Parle Biscuits), Income of Consumer and Population. To achieve this we assume all other factors like Tastes of Consumer, Advertising etc are constant. The biscuit industry is taken as a whole without differentiating between various segmented brands. To arrive at the demand function of Britannia, multivariate regression analysis has been used over non linear model. All data has been taken from the Centre for Monitoring Indian Economy (CMIE) database.

1.1 Biscuit Industry in India:
Indian Biscuit Industry is the largest among
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The Company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.
The Britannia's fame is largely acknowledged through the colorful Britannia logos that Indian cricketers such as Virender Sehwag and Rahul Dravid wear on their bats.
1.2.1 History:
It was started way back in 1892 with an investment of Rs. 295. Initially, biscuits were manufactured in a small house in central Kolkata. Later, the business was acquired by the Gupta brothers and operated under the name of V.S. Brothers. In 1918, C H Holmes, an English businessman in Kolkata was taken as a partner and The Britannia Biscuit Company Limited (BBCo) was launched. The Mumbai factory was setup in 1924 and Peak Freans, UK acquired a controlling interest in BBCo. Biscuits were in big demand during World War II, which gave a fillip to the company’s sales. The company name was changed to the current Britannia Industries Limited in 1979. In 1982 Nabisco Brands Inc., USA became a major foreign shareholder.
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 ABIL, UK 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
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