IBMA: Indian Biscuits manufacturers associationIndustry Profile
| 1. Segments: The organized and unorganized sectors of the biscuit industry is in the proportion Of 55%:45% ratio. 2. Exports of Biscuit is estimated to around 10% of the annual production during the year 2006-07. 3. Imports of biscuits into India has not shown any significant growth during the last two years and has not affected production/sales by the Indian Biscuit industry. 4. Marketing: Wholesale and Retail marketing in the Biscuit industry is carried out with a network of C & F Agencies (for States and/specific Districts) Dealers / Wholesalers and Retail shops. 5. Biscuit Industry, especially the Small & Medium Sector, consisting of around 150 units(besides three Large Industries), are facing erosion in their profitability and competitive capability, due to imposition of Value Added Tax (VAT) by the State Governments @ 12.5% on Biscuits, compared to VAT oat 4% levied on other similar food products. 6. Taxation: On behalf of the industry, IBMA has been pursing the issue with the Chief Ministers/Finance Ministers of all States and also with the Chairman of the Empowered Committee on VAT, seeking reduction in the rate of VAT on biscuit to 4%.IBMA estimates annual growth in the range of 15% to 20% during the next five years, in the event of reduction in the rate of VAT on Biscuits to 4%. 7. Per capita consumption of Biscuits in the country is only 1.8 kg, as compared to 2.5 kg to 5.5 kg in South eastern countries and European countries & USA respectively. 8. . Main Categories of Biscuits are broadly as under:Glucose, Marie. Sweet, Salty. Cream, & Milk 9. Popular Brands of Biscuits in the country are, Britannia, Parle, Priyagold, Anmol, Biskfarm, Dukes, Cremica, Priya, Veeramani, Bonn, Bhagwati, Raja, Champion,Sobisco,Madhabi, Nezone, Windsor, Cookieman, Sufeast, Ankit, Shangrila, Nalanda, etc.
BISCUIT INDUSTRY IN INDIA-STATUS PAPER
1. Annual Growth: The biscuit industry in India witnessed annual growth as below:- 2005-06 -
14% 2006-07 -
13% 2007-08 -
15% 2008-09 - 10% 2009-10
The biscuit industry has been growing almost at static level during the last decade.However, production of Biscuits witnessed steep decline to 10% in 2008-09 and further to 14% in 2009-10 and 15% in 2010-11, Indian Biscuit Manufacturers’ Association (IBMA) estimate biscuit industry to grow in the range of 15% to 18%in ensuing five years.Annual Production:The organized biscuit manufacturing industry‘s annual production figures are given below:(In Lakh Metric Tonnes) 2005-06 - 14.29 2006-07 - 16.14 2007-08 - 17.44 2008-09 - 16.57 2009-10
- 18.25 2010-11 - 19.10 Segments: The organized and unorganized sector of the biscuit industry is in the proportion of 65%:35% ratio.
EXPORTS of Biscuit was 10% of the annual production during the year 2007-08, which declined to around 7% in 2008-09 and witnessed higher growth of 12% and 15% in 2009-10 and 2010-11, respectively.
IMPORTS of biscuits into India has not shown any significant growth during the last two years and has not affected production/sales by the Indian Biscuit industry.Rural-Urban penetration growth of Biscuit Urban Market: 75% to 85%Rural Market: 50% to 65% MarketingWholesale and Retail marketing in the Biscuit industry is carried out with a network of C & F Agencies (for States and specific Districts), Dealers / Wholesalers and Retail shops. HIKE IN COST OF PRDUCTION Biscuit Industry especially the Small & Medium Sector, consisting of around 150 units are facing erosion in their profitability and competitive capability, due to Steep hike in cost of production on account of increase in prices of major raw materials, i.e. Wheat Flour Veg. Oil, Sugar, Milk, Packaging Materials,...
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