Biscuit Industry India

ITC Limited, Britannia Industries

EXECUTIVE SUMMARY FOR BISCUIT INDUSTRY IN INDIA •Biscuit industry in India in the organized sector produces around 60% of the total production, balance 40% is produced by the unorganized sector (i.e. bakeries). •Biscuit market in India is around 12,662 crores.

There are around 150 medium to small biscuit factories in India •Indian biscuit industry is the 3rd largest industry, behind U.S.A and China. PERCENTAGE OF MARKET SHARE BRAND WISE
Parle- 40%
Britannia- 38%
Priya Gold – 15%
ITC- 11%
Rest- 6%

The export of biscuits contributes to 15% of annual production; however imports have not shown any significant growth in the last 2 years. •IBMA estimates annual growth in the range of 25% and above mainly due to decrease in VAT on biscuits. •Current penetration levels are

Urban- 75 to 85%
Rural-50 to 65%
AC Nielson studies show that India is the world’s leading market for biscuits ahead of US, China and most European countries •India showed a volume market share of 22%, the second slot was occupied by the US at 13% •The top 3 countries- India, US, and Mexico contribute to over 40% of the total biscuits •The glucose segment has already reached maturity phase of the PLC, no value benefit, Parle being the key player that drives profits through economies of scale .

Per capita consumption of 2.5 kg as compared to 10 kg of mature markets like US and Europe.\ •Demand from rural markets account for half the biscuit sales in India (rural markets account for 30% revenues for Britannia and Parle and over 50% for regional brands. •Today biscuits contribute to over 33% of the total production of bakery and above 79% of the biscuits are manufactured in the small scale sector of bakery industry, comprising both factory and non factory units in the country. •The biscuit industry is estimated to grow at about 15-17% in the next few years.

The export of biscuits is about 17% of the annual production; the export of sweet...
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