Biscuit Industry

Only available on StudyMode
  • Download(s): 115
  • Published: August 2, 2010
Read full document
Text Preview
Biscuit Industry

|Sr.No. | Topic | Page No. | |1. |Introduction to the product |3 | |2. |Section Analysis |4 | |3. |Major Players and Market share of major players |6 | |4. |Manufacturing, Raw material for product and Government regulations |9 | |5. |Market segmentation |10 | |6. |Substitute Available |11 | |7. |Mode of Supply to the market |13 | |8 |Financing from institutions like banks, schemes available, investment required |14 | |9. |Differentiating factors for major players and positioning |20 |

1. Introduction to the product

Biscuit is a hygienically packaged nutritious snack food available at very competitive prices, volumes and different tastes. According to the NCAER (National Council for Applied Economic Research) Study, biscuit is predominantly consumed by people from the lower strata of society, particularly children in both rural and urban areas with an average monthly income of Rs. 750.00. India Biscuits Industry is the largest among all the food industries and has a turnover of around Rs.4350 crores. Though India is considered as the third largest producer of Biscuits after USA and China, the per capita consumption of biscuits in our country is only 2.1 Kg. per annum, compared to more than 10 kg in the USA, UK and West European countries and above 4.25 kg in south east Asian countries, Singapore, Hong Kong, Thailand, Indonesia etc. China has a per capita consumption of 1.90 kg, while in the case of Japan it is estimated at 7.5 kg. Biscuits are estimated to enjoy around 37% share by volume and 75% by share by value of the bakery industry.  Biscuits constitute about 7% of the Rs 478 billion FMCG markets in India. India Biscuits Industry came into limelight and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for readymade food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has become one of the most loved fast food products for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully.

2. Section Analysis

It is classified under two sectors: organized and unorganized. The two major bakery industries, viz., bread and biscuits account for about 82% of the total bakery products. The production biscuit in the country both in the organized and unorganized sectors is estimated to be around 11 lakh tonnes. Of the total production of biscuits, about 35% is produced in the organized sector and the remaining is manufactured in the unorganized sector. The organized sector caters to the medium and premium segments, which are relatively less price-sensitive.  The organized sector is unable to compete...
tracking img