Indian BISCUIT INDUSTR

By: PRASOON MISH

MBAL 1020

9/9/16

HISTORY OF BSCUIT INDUSTRY

Biscuits are a very significant part of the food industry
in most
countries of the world.
A biscuit is a small baked product; the exact meaning
varies
markedly in differentparts of the world.
The origin of the word "biscuit" is from Latin which
means "cooked
twice" (similar to the German Zwieback).
Biscuit is most suited for local production. This factor
alone
has
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made India a bigbiscuit center. Biscuit Industry has

FEDERATION OF BISCUIT MANUFACTIRE OF

INDIA (FBMI)
FBMI, Established in 1950
It is thepremier forum of the organized segment of the
biscuit
industry in India and
it consisting of small scale, medium and large biscuit
manufacturers
located in all zones and all States of the country
It is serving with the prime objective of protecting and
promoting the
interests and developmentof the Biscuit industry. 3
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FBMI as the apex body of the biscuit industry, the

Federation striving with some objectives. The objectives
are:-

Topromote and protect theinterestoftheBiscuit

manufacturing industry, particularly in the small and
medium sector

TopromoteanddevelopasystematicandhygienicBiscu
t
manufacturing Industry

Topromoteresearchandproductdevelopmentfortheb
scuit
manufacturing industry
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4
andtheestablishmentofanyresearch

To assist the small and medium biscuit manufactures

in the
purchase of flour,
inputsandothercommoditiesandtheprovision
fortechnicaladviceforimproving manufacturing
techniques and
marketing method
To create appropriate bodies to advise Government of
various
aspects connected with thedevelopment ofthe
biscuit
manufacturing industry
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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,
per capita consumption of biscuits is 1.8 kg in our
country
but it is increasing day by day.
India Biscuits Industry came into limelight and started
gaining a
sound status in the later part of 20th century when
the urbanized
society called forready made food products at a
tenable
cost.
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6


MaharashtraandWestBengal,themost industrially
developed
states, hold the maximum amountof consumption
of biscuits.
The rural sector consumes around 55 percent of the
biscuits in the
bakery products.
Apart from Big 3 ( Britannia ,Parle , ITC ) there
arearound 150
medium to small biscuit factory in India.

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Few years back, large scale bakery manufacturers like

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
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8
biscuit

Two Sectors ofBiscuit

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 organizedplayers are Britannia and
Parle.
Britannias market share stands at Rs 27 billion.
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Other organized players include

domestic players like Brakemans, Champion, Kwality,
Priya and
MNCs like SmithKline Consumer, Sara, Heinz, Excelsia
(Nestle)
and United Biscuits.
The unorganized sector consists of small bakery units,
cottage
andhousehold type manufacturing
The goods distributing in the surroundingareas
without good
quality packaging.
10
Lower overhead cost due to limited local area,

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IMPORTANT BRANDS PITCHED AGAINST EACH

OTHER OR PRODUCT COMPARISION
Category

Britannia

Parle

Leader

Glucose

Tiger

Parle-G

Parle G

Marie

Marie Gold

Parle Marie

Marie Gold

Salty snacks

50-50

Krack Jack

Krack jack

Choco chips

Good day

Hide n seek

Good day

Milk

Milk bikis

Milk sakhti

Milk bikis

Bourbon

Bourbon

Hide n seek

Bourbon

Nice

Nice

-----------------

Britannia Nice

Multi grain

Nutri choice

-------------------

Nutri choice

Cream

Cream Treat

Kreams

Cream treats

Cookie

Good day

20-20

Good day

So the battle for market share continues and advantage is

for consumers who will get better product from both these
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11
biscuit majors .

GROWTH OF THE INDUSTRY

After 2005 India is - third largest producer ofBiscuits in
the
world, after the USA andChina.
Annual growth of

14-15% .

Growth in biscuit marketing has been achieved due to

improvement
in rural marketpenetration.
According to the NCAER Study, biscuit is
predominantly consumed
by people from the lower levels of society
EXPORTS of Biscuit are estimated to be around

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15%
12

Annual Production:
The organized biscuit manufacturing industrys annual
production figures are given below:

PRODUCTION (In lakh metric tonnes)

25
20

17.44
16.14

15

18.25

19.1

16.57

14.29

10
5
0
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2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

YEAR

13

Based on the production in India

biscuits can be broadly classified into:-

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Source:- Indian Biscuit Manufacturers

14

Industry Research
Objective: To study
eating habits with
regards to
consumption of
biscuits amongst
people.
The composition of
choices of food of
people for breakfast
and snacks shows
that only 16% prefer
biscuits.
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Source:- Indian Biscuit Manufacturers

15

Industry Research
Of the people who
consume biscuits
25% people prefer
cream biscuits,
12% prefer wafer
biscuits,
34% prefer sweet
plain biscuits and
29% of people prefer
namkeen or salty
biscuits.
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Source:- Indian Biscuit Manufacturers

16

Industry Research
The number of people
who eat biscuits include
37% of people who eat
them everyday,
29% eat twice a week,
14% eat four times a
week,
8% eat once in 15 days,
6% eat once in 10 days
and once in a month.

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Source:- Indian Biscuit Manufacturers

17

MARKETING OF
BISCUT
WholesaleandRetailmarketingintheBiscuitindustryis
carriedoutwitha network of Dealers / Wholesalers
and Retail shops
Market share data for Indian biscuit industry:
Here are market share data forbiscuit industry from report s
available at IBMA
( Indian Biscuit Manufacturers Association)
INDUSTRY
SHARE
Market
Share
Organized
% OFMajor
MARKET SHARE
BRAND WISE
(VOLUME)Holders
PARLE
40%
Sector
PARLE
BRITANNI
E
PRIYA
GOLD
ITC
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BRITANNIA

38%

PRIYAGOLD

15%

ITC

11%

REST

6%

18

Market

Share Sector wise

ORGANISE
D SECTOR

UNORGANISED
SECTOR

70%

30%

Market share penetrationPopln. wise

URBAN

RURAL

85%-75%

65%-55%

arket Share product wiseMarket share - Region wise:

MarieandGlu 50%
cose
sweet, crackers 50%
, cream ,milk

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Market share of the industry in india

ZONE

%
CONTRIBUTIO
N

NORTHZONE

25%

WESTZONE

23%

EASTZONE

28%

SOUTHZONE

24%
19

Marketing practices
Biscuits are consumed by people of all ages, from the
rich to the poor, living in cities & in villages.
While some have it for breakfast,
For others it is a complete wholesomemeal
For some it's the best accompanimentfor tea,
While for some it's a way of getting chargedwhenever
they are low
on energy.
Biscuit industry practices mass marketing, which
appeals to masses. Thus the industry adopted mass
production, mass distribution and mass promotion of
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products
for all buyers.

Pricing mix
Biscuit is a comparatively low margin food product
inthe PMCG
(Packaged Mass Consumption Goods) sector.
The commodity is also price sensitive,
Taxation has been amajor deterrent in the growth of
the biscuit industry
Most of the companies in the industry adoptedthe
Market
Penetration strategy i.e. low price along with
capturing of alarge
market.
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Also
they focus on providing goodquality products at

Cont
The value-for-money positioning helps to generate
large sales
volumes for theproducts.
The biscuits industry now has two clear models. Parle
products play
the low price game at all varieties of biscuits from
glucose to
cream.
But Britannia and Sunfeast look at a two-pronged
strategy. High
margins in cream variants and high volumes for the
Marie and
Glucose segments.
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For instance, cream biscuits from both Britannia and

Packi
ng
The packaging ofbakery products is closely interlinked
with
production, preservation,
storage,transportationandmarketing.
Theimportanceofpackagingis that
It constitutes a fair portion 10 to 25% of the entire
cost of the pack.
Its common sight now that retailers are keeping small
packs of
biscuit in Jar.
Britannia as well as Parle s biscuits are now available
in Jars
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Promotion
Industrys ability to connect to large population through
various
promotionalevents (such as schools industry visits to
plant, talk & TV
shows, rural programs) to target different age
segment will decide
the market share.
Biscuits are available to consumers, even inthe most
remote places
and in thesmallest ofvillages with a population of just
1500.
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ADVERTISEMENTS
The products were advertised mainly through press ads.
The
communication spoke about the basic benefits of
energy
andnutrition.
Good advertisement policies due to which people are
motivated to
buy their product at least once.
For instance, ITC has the advertisement about a child
entering the
cream world makes the children excited about the
product leading
to
increase in sales.
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Current market position of

Britannia biscuits
Nutri Choice
I
N
T
R
O
D
U
C
T
I
O
N

Sales

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Good Day
Tiger

Treat
Pure Magic

Little Hearts
Marie
Nice

M
A
T
U
R
I
T
Y

G
R
O
W
T
H

Time

D
E
C
L
I
N
E

26

Current market position of Parle

biscuits
K
r
e
a
m
s

Sales

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I
N
T
R
O
D
U
C
T
I
O
N

Hide & Seek

Krackjack

Parle g
Monaco

M
A
T
U
R
I
T
Y

G
R
O
W
T
H

Time

D
E
C
L
I
N
E

27

Strengths

Weaknesses

Brand building capabilities

Dependence on retailers and
Diversified product range of the
grocery
industry
stores for displaying diversified
covering all segments.
The depth of distribution
products on shelf.
Low and mid price range of the
Lack of technology up gradation
products
Industrycateringtomasses,asin
most

SW
Threats
developingeconomies,increasing
purchasing
power is aiding
the
Fluctuations in the prices of raw
Per
capita consumption
of OT
Opportunities

shift to
inaffordable options.
Biscuits
materials, transportation costs
India is only 1.8 kg
&
Growing demand of Sugar free
distribution
biscuits.
cost due to high wedges and oil
IBMA estimates annual growth
prices,
ofaround 20% in next couple
Entry of ITC (having very good
of years.
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distribution channels) in
The $220 Billion food industry is

Conclusion
In Indian BISCUIT Industry even the small companies
areable to
make profits.
Indian biscuit Industry has a continuous growth and
will not be
hindered due to external factors. Biscuit Industry has
flourished in
India enormously over the years and is still growing
phenomenally
Entrepreneurs or businessmen who are in process of
buying,
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29
installation of newbiscuit line should keep following

REFERENCES
www.google.com
www.mofi.nic.in
www.fbmi.in
www.economictimes.c
om
www.yahoo.com
www.britannia.com
www.parle-producuts.in

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QUESTIO
N
????????
???

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