Indian Biscuit Industry

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