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I N D U S T R Y
Presented By

SUHAS M.H.
ID NO. MBAL008

INTRODUCTION
A bakery is an establishment which produces or/and sells bread, pastries, cakes, biscuits, cookies, etc. Baking is the technique of prolonged cooking of food by dry heat acting by convections, and not by radiation, normally in an oven, but also in hot ashes, or on hot stones. It is primarily used for the preparation of bread, cakes, pastries and pies, tarts, quiches, and cookies. Such items are sometimes referred to as "baked goods," and are sold at a bakery. A person who prepares baked goods as a profession is called a Baker.
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HISTORY
In ancient history, the first evidence of baking occurred when humans took wild grass grains, soaked them in water, and mixed everything together, mashing it into a kind of broth-like paste. The paste was cooked by pouring it onto a flat, hot rock, resulting in a bread-like substance. Later, this paste was roasted on hot embers, which made breadmaking easier, as it could now be made anytime fire was created. Around 2500 B.C., records show that the Egyptians had bread, and may have learned the process from the Babylonians.

y The Greek Aristophanes, around 400 B.C., also recorded

information that showed that tortes with patterns and honey flans existed in Greek cuisine.
y During middle ages most of the Landlords were having their own

bakery

INDIAN BAKERY iNDUSTRY

y The Indian bakery industry is the largest among the processed

food industries. The current estimated market is about Rs 3,295 crore and is expected to cross Rs 4,308 crore by 2012.
y At present, the bread & biscuit industry accounts for 82% of the

total

bakery

products

in

the

country.

y At present, the annual production of bakery products which

include bread, biscuits, pastries, cakes, buns and rusk, most of which are in the unorganised sector, is estimated to be in excess of 3 million tonnes. y The production of bread and biscuits in the country both in the organised and unorganised sectors is estimated to be around 2.6 6 million tonnes.

y Of the total production of bread and biscuits, only 35% is produced in the organised sector and the remaining is manufactured in the unorganised sector. y Broadly, the bakery market is divided into the rural market and the urban market. The market share is about 22.5% (rural) and 77.5% (urban) in the country.

y Further, the market can be segmented into cakes, pastries and unpackaged biscuits. and valued at Rs136 crore and Rs 1088 crore respectively
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y Per capita consumption of

1.Bread - 3kg/year 2.Biscuit - 1kg/year

y 55% of biscuit is consumed by rural area. y 37% of consumption of bakery item is by people with

monthly income of Rs.750 and below.

y At present 70% of total bakery products is prepared by

small and family scale units.

RAW MATERIALS USED IN BAKERY

y Wheat flour y Sugar and honey y Yeast y Egg y Milk and milk powder y Dry fruits y Fats

Bakery Products
y The market for bakery industry is valued at

Rs. 69 billion. The two major bakery products, i.e. breads and biscuits hold for about 82 % of the market share. Product coverage Bread y Biscuits y Pastries y Cakes y Buns y Confectionary products

SCOPE OF BAKERY INDUSTRY

y In hotel business y Biscuit industry y Bread y Retailing of bakery y Healthier bakery y Sugar free bakery y Confectionary
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HISTORY OF BISCUIT
A biscuit is a small baked product; the exact meaning varies markedly in different parts of the world.

The origin of the word Biscuit is from Latin and means "cooked twice", hence Biscotti in Italian.

A biscuit is a hard baked sweet or savoury product like a small, flat cake, which in North America may be called a cookie or cracker .

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IMPORTANCE
y

Biscuit market is growing at rate of 7% per annum. Provide employment opportunity to both men and women. The emergence of nuclear families will see a boom in products, which have convenience and nutrition attached to them. India is witnessing a revolution in healthy foods and people are conscious. India is the 2nd largest producer of biscuits after USA.
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PRESENT STATUS OF BISCUIT INDUSTRY

The present biscuits-bakery sector in India looks like a battlefront. There are two entrenched players in the biscuits market Parle and Britannia have 85% of the market share. Britannia is undoubtedly- leader with brands like Tiger, Little Hearts, Milk Bikis. Britannia's Tiger brand is selling largely in the rural areas which actually constitute 56% of the biscuit market. But in the Glucose segment Parle G is the market leader.

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y According to market research in 2003,Britannia brand has over 46 per cent market share in this fiercely competitive market i.e. far above all, & Parle enjoys a 40% share of the total biscuit market y Biscuits market on an average grew at 8% per annum in the last five years. y The rural penetration of the branded biscuits segment is also significant. y Towns with populations of less than a lakh contribute significantly to the industry's turnover, with some estimates placing it at 40%.
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Biscuits
 The biscuit market has a total production volume of 1.1 million tonnes.  The growth drivers for the biscuit industry are focused advertising, urban

market, and new launches.

Major Players
The major players in the biscuit segment are:  Britannia  Parle  Bakeman  ITC Foods Ltd.  Surya Food and Agro Pvt. Ltd.  HLL  Priya Gold  Cremica  Dukes  Anupam  Horlicks

y y y y y y y y

Bread
The bread market has a business volume of 1.5 million tonnes. The bread industry has a production of approximately 27 lakh tonnes. This segment is characterized by high level of fragmentation, and high margin. The major factors for growth in this segment are: Brand loyalty Volumes Strong distribution networks The major challenge faced by the organized bread sector at present is low margins of profit. Hike in the prices of major raw materials like sugar, vegetable oil, milk, and wheat flour has been accounted for the industry's low margins of profit.

y Major Players

The major players in the bread industry that holds about 90% of the market share are: y Britannia y Modern Industries Ltd.

PRESENT STATUS
y In India there are about 60000 different sector bakery units. y Food processing industry ranks 9th in industrial sector comprising of

bakery instant foods, confectionary, dairy, soft drinks etc. which biscuit industry constitute 60%.

y Bakery industry roughly constitute 10% of processed food industry, of y The Indian biscuits' market is estimated to be 1.1 million tonnes per

annum and valued at over Rs 50 billion.

y The unorganized sector accounts for over 50% of the market. y The

market

has

been

growing

at

CAGR

of

6-7%

pa.

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y Bakery ingredients market is valued at Rs 500 crore in the country and is registering a growth rate of 20 per cent y The market is expected to double in a year going by the demand for healthy and nutritious options in bakery foods easy to make and carry y It give opportunity for youth to explore their creativity

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CONTD
y The per capita consumption of bread in India is 2 kgs per annum and by far the lowest compared to Sri Lanka, which is 8 kgsand Europe's 80 kgs. y The abysmal low consumption in India comes in because bread has often been treated as a sick man's food and eaten when ill. y The penetration of branded product in this segment is quite significant, and is valued at Rs 2,500-3,000 crore.

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SCOPE
y Changing trend. y New challenges, like healthy nutritious, tasty and fresh products. y Diversified products like, 1. High protein products. 2. Vitaminised & Mineralized product. 3. Anti diabetic products. 4. High fiber content product. 5. Low salt product. 6. Low fat product. y Export of bakery product
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Chocolate Market in India -Facts

1. Chocolate market is estimated to be around 1500 crores (ACNielson) growing at 18-20% per annum 2. Cadbury is the market leader with 72% market share 3. The per capita consumption of chocolate in India is 300 gram compared with 1.9 kilograms in developed markets such as the United Kingdom 4. Over 70 per cent of the consumption takes place in the urban markets 5. Margins in the chocolate industry range between 10 and 20 per cent, depending on the price point at which the product is placed

Cont
6. Chocolate sales have risen by 15% in 2007 to reach 36000 tonnes according to one estimate. Another estimate puts the figure at 25000 tonnes 7. The chocolate wafer market (Ulta Perk etc) is around 35 % of the total chocolate market and has been growing at around 13% annually 8. As per Euromonitor study, Indian candy market is currently valued at around USD 664 million, with about 70%, or USD 461 million, in sugar confectionery and the remaining 30%, or USD 203 million, in chocolate confectionery 9. Entire Celebrations range marketshare is 6.5% 10. The global chocolate market is worth $75 billion annually

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SWOT ANALYSIS
STRENGTHS
y Plenty of men and raw material at cheep rate. y Changing consumption pattern. y Growing market. y Bakery products are tasty, nutritious readily available

and easily carried.

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WEAKNESS
y Lack of financial support. y High cost of equipment. y Lack of availability of trained persons. y Low shelf life of bakery products. y Irregularity in power supply. y Very less organized bakery firm at big level so less business professional .
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OPPORTUNITY
y Vast market. y Provide opportunity for self entrepreneurship. y A need of a national level company in bakery sector. y High value for attractive and quality package. y Demand for innovative products.
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THREATS
y High consumption of bakery products leads to obesity and other health problem. y Most of pure vegetarians don t consume bakery item. y Lot of loss due to insects and low shelf life. y FDI in bakery sector may affact domestic players like puratos from belgium is already entered in indian bakery industry.

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MARKETING
y Determine the quality of product. y Modification of product based on consumer preference. y Create

specific product for specific end segmentation.

users,

i.e.

y Make product easily available to all end users. y Quick transportation of

final product because bakery is

perishable product.

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The Indian bakery market

y The cake market in India is valued at Rs 1,088 crore for

2008, and is growing at a CAGR of 10 per cent. y The pastries market in the country is valued at Rs 136 crore for 2008, and it is also growing at a CAGR of 10 per cent. y The unpackaged biscuits market is valued at Rs 2,071 crore for the current year, and is growing at a CAGR of 5 per cent.

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The Indian bakery market

y The Indian bakery market is valued at Rs 3,295 crore and is

expected to reach Rs 4,308 crore by 2012.

y The market is split into the rural market, which is 22.5 per

cent, and the urban market, which is 77.5 per cent, of the total market.
y The bakery market can be segmented into cakes, pastries

and unpackaged biscuits.

Source- Buiness standard news paper

MARKET STRUCTURE
Market Segmentation(biscuit)
Segment Organized Informal Share (%) 50 50

Lead Players and Alliances

Company Britannia Denone, France Parle Biscuits Bakeman's Share (%) 46 40 3.5

Market Segmentation (bread)

Segment Organized Informal
Source- Society of Indian Bakers

Share (%) 15 85
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GROWTH RATE
Market Growth Rates (bakery)
1990-91 - 1996-97 1996-97 - 2001-02 2001-02 - 2006-07 5.4% 7.9% 6.9%

Source- Bakers Association of India

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PROSPECTS
y Increasing dependence on bakery products. y Use of sophisticated and modern machineries which increases bakery efficiency. y High quality packaging material increases shelf life of product.

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CASE STUDY: MONGINIS BAKERY, KOLKATA

y Introduction :- Arnav Basu with the help of Khorakiwala family as monginis foods ltd at Kolkata in 1980. y At that time name monginis was unknown to Kolkata. y Monginis starts becoming popular after starting bakery in 1991.

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FEATURES OF MONGINIS BAKERY

y Turn over raised from INR 5.3 m in 1992 to INR 150 m in 2003. y Import best quality machines from many country. y Launching of international quality chocolates and so many recipes of bakery very first time in Kolkata. y Key success for monginis is highly effective franchisee system as more than 100 franchisee outlets only in Kolkata.
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y Monginis mainly targeted middle and upper middle class of Kolkata as it offers fresh , quality produce at affordable price. y Innovations :- As monginis was producing salty snacks in spite of others were producing sweet bakery products mainly. y Introduction of new product :- Like chicken salad roll, chicken wrap & Vegetable Manchurian. y Monginis outlets contains reheating and facilities

air condition
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KEY TO SUCCESS OF MONGINIS

y Good franchisee management. y Packed cakes. y Return management. y Pricing. y Promotions.
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FRANCHISEE MANAGEMENT
y

Sight selection :- Area should be at least 200 square ft &frontage be of 10 feet. Has standard format of dcor, colors , display counter, ac, freeze , microwave oven etc. Commission paid on good sales be 14%. Constant monitoring of stores. Payments of bills at alternate day. Distribution timely once or twice a day.

y y y y

Prominent Food and Bakery Associations in India

y Indian Stainless Steel y y y y y y y y y y y

Development Association Fragrances and Flavours Association of India(FAFAI) All India Food Processors Association Poultry Processors Association All India Distillers Association Association Of Food Scientists & Technologies National Association of Bakery Industry Federation of Biscuit Manufacturers Association The Soyabean Processors Association of India The Seafood Exporters Association of India Indian Institute of Packaging Oil Technologists Association of India (Western Zone)

y Indian Biscuits Manufacturers y y y y y y y y y y y

Association Confederation of Indian Food Trade and Industry Federation of Hotel and Restaurant Association of India Indian Confectionery Manufact urers Association Indian Dairy Association Indian Sugar Mills Association All India Bread Manufacturers Association ltd Bakers Association of India Roller Flour Millers Federation of India All India Grain Exporter Association Wheat Product Promotion Society Society of Indian Bakers

References
y Indian Biscuits Manufacturers Association y All India Bread Manufacturers Association ltd y All India Food Processors Association y Society of Indian Bakers y Indian Confectionery Manufacturers Association

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CONCLUSSION
y Due to changing consumption pattern there is lot of scope for bakery industry. y Due to modernization , westernization industrialization demand for bakery has increased. y Good opportunity to emerge as a national brand.

and

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