Indian Biscuit Industry

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INDUSTRY ANALYSIS ON BISCUIT INDUSTRY

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CONTENTS

1) CHAPTER-1 2) CHAPTER-2 3) CHAPTER-3 4) CHAPTER-4 5) CHAPTER-5 6) CHAPTER-6 7) CHAPTER-7 8) CHAPTER-8 9) CHAPTER-9 10) APPENDICIES

INTRODUCTION PRODUCT LINES AND CUSTOMER BEHAVIOR GROWTH OF THE INDUSTRY TECHNOLOGY OF PRODUCTION AN DISTRIBUTION MARKETING INNOVATION STRATEGIES AND COMPETETION IN THE INDUSTRY BUSINESS ENVIRONMENT CRITICAL SUCCESS FACTORS

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CHAPTER-1
INTRODUCTION

OVER VIEW OF THE INDIAN BUSCUIT INDUSTRY
Biscuit industry contribute Rs 8,000 crore to the FMCG industry and provide a vast opportunity for growth, as the per capita consumption of biscuits is less than 2.1 kg 3

in our country. India It is classified under two sectors: organized and unorganized. Branded /Organized to Unbranded/Un organized market share of biscuit has been 70% for Organized sector and 30% for Unorganized sector . Apart from Big 3( Britannia , Parle , ITC ) there are around 150 medium to small biscuit factory in India . The Industry is now facing problem from increase of raw material price. With Government VAT up to 12.5% has added to their woes .Biscuit consumption per capita in India has grown to 2.1kg per capita in comparison to 10kg per capita consumption in USA ,UK and Europe . 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. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal, the most industrially developed states, hold the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the bakery products. The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to 18.95 lakh tones in 1990. Biscuits contributes to over 33 percent of the total production of bakery and above 79 percent of the biscuits are manufactured by the small scale sector of bakery industry comprising both factory and non-factory units.

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery production. Few years back, large scale bakery manufacturers like

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cadbury, nestle, and brooke bond tried to trade in the biscuit industry but couldn't hit the market because of the local companies that produced only biscuits. 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.

Two Sectors of Biscuit Industry
In terms of volume biscuit production by the organized segment is estimated at 1.30 million tones. In the organized sector, the industry is dominated by Britannia and Parle, which account for 70 per cent of the industry's volumes. The two major organized players are Britannia and Parle. Britannia’s market share stands at Rs 27 billion. Parle derives a large portion of its revenues from low-priced biscuits. Parle-G and Britannia derive a fairly large share of their revenues from the medium- and premium varieties. In fact, Britannia's market share in the medium and premium varieties is significantly higher. Other organized players include domestic players like Brakeman’s, Champion, Kwality, Priya and MNC’s like SmithKline Consumer, Kelloggs, Sara, Heinz, Excelsia (Nestle) and United Biscuits. The...
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