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Presented By

SUHAS M.H.ID NO. MBAL008

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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.

HISTORY

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• 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 bread-making 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.

The Greek Aristophanes, around 400 B.C., also recorded information that showed that tortes with patterns and honey flans existed in Greek cuisine.

During middle ages most of the Landlords were having their own bakery

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INDIAN BAKERY iNDUSTRY

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.

At present, the bread & biscuit industry accounts for 82% of the total bakery products in the country.

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.

The production of bread and biscuits in the country both in the organised and unorganised sectors is estimated to be around 2.6 million tonnes.

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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.

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.

Further, the market can be segmented into cakes, pastries and unpackaged biscuits. and valued at Rs136 crore and Rs 1088 crore respectively 7

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Per capita consumption of 1.Bread - 3kg/year

2.Biscuit - 1kg/year

55% of biscuit is consumed by rural area.

37% of consumption of bakery item is by people with monthly income of Rs.750 and below.

At present 70% of total bakery products is prepared by small and family scale units.

RAW MATERIALS USED IN BAKERY

Wheat flour Sugar and honey YeastEgg Milk and milk powder Dry fruitsFats

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Bakery ProductsThe 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 coverageBread

BiscuitsPastriesCakesBunsConfectionary products

SCOPE OF BAKERY INDUSTRYIn hotel businessBiscuit industryBreadRetailing of bakery Healthier bakerySugar free bakeryConfectionary

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• 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” .

HISTORY OF BISCUIT

IMPORTANCE 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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• 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.

PRESENT STATUS OF BISCUIT INDUSTRY

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

Biscuits market on an average grew at 8% per annum in the last five years.

The rural penetration of the branded biscuits

segment is also significant.

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 PlayersThe 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

BreadThe 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 loyaltyVolumesStrong distribution networksThe 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. 

Major PlayersThe major players in the bread industry that holds about 90% of the market share are:

BritanniaModern Industries Ltd.

PRESENT STATUS

In India there are about 60000 different sector bakery units.

Food processing industry ranks 9th in industrial sector comprising of bakery instant foods, confectionary, dairy, soft drinks etc.

Bakery industry roughly constitute 10% of processed food

industry, of which biscuit industry constitute 60%. The Indian biscuits' market is estimated to be 1.1 million

tonnes per annum and valued at over Rs 50 billion.

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

The market has been growing at a CAGR of 6-7% pa.

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Bakery ingredients market is valued at Rs 500 crore in the country and is registering a growth rate of 20 per cent

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

It give opportunity for youth to explore their creativity

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CONTD……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.

The abysmal low consumption in India comes in because bread has often been treated as a sick man's food and eaten when ill.

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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SCOPEChanging trend.

New challenges, like healthy nutritious, tasty and fresh products.

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.

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

STRENGTHSPlenty of men and raw material at cheep rate.

Changing consumption pattern.

Growing market.

Bakery products are tasty, nutritious readily available and easily carried.

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WEAKNESS

Lack of financial support.

High cost of equipment.

Lack of availability of trained persons.

Low shelf life of bakery products.

Irregularity in power supply.

Very less organized bakery firm at big level so less business professional .

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OPPORTUNITYVast market.

Provide opportunity for self entrepreneurship.

A need of a national level company in bakery sector.

High value for attractive and quality package.

Demand for innovative products.

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THREATSHigh consumption of bakery products leads to

obesity and other health problem.

Most of pure vegetarians don’t consume bakery item.

Lot of loss due to insects and low shelf life.

FDI in bakery sector may affact domestic players like puratos from belgium is already entered in indian bakery industry.

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MARKETINGDetermine the quality of product.

Modification of product based on consumer preference.

Create specific product for specific end users, i.e. segmentation.

Make product easily available to all end users.

Quick transportation of final product because bakery is perishable product.

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The Indian bakery market

The cake market in India is valued at Rs 1,088 crore for 2008, and is growing at a CAGR of 10 per cent.

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.

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

The Indian bakery market is valued at Rs 3,295 crore and is expected to reach Rs 4,308 crore by 2012.

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. 

The bakery market can be segmented into cakes, pastries and unpackaged biscuits.

Source- Buiness standard news paper

MARKET STRUCTURE

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Market Segmentation(biscuit)

Segment Share (%)

Organized 50

Informal 50

Lead Players and Alliances

Company Share (%)

Britannia Denone, France

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Parle Biscuits 40

Bakeman's 3.5Market Segmentation

(bread)Segment Share (%)

Organized 15

Informal 85

Source- Society of Indian Bakers

GROWTH RATE

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Market Growth Rates (bakery)

1990-91 - 1996-97 5.4%

1996-97 - 2001-02

7.9%

2001-02 - 2006-07 6.9%

Source- Bakers Association of India

PROSPECTS

Increasing dependence on bakery products.

Use of sophisticated and modern machineries which increases bakery efficiency.

High quality packaging material increases shelf life of product.

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CASE STUDY: MONGINIS BAKERY, KOLKATA

Introduction :- Arnav Basu with the help of Khorakiwala family as monginis foods ltd at Kolkata in 1980.

At that time name monginis was unknown to Kolkata.

Monginis starts becoming popular after starting bakery in 1991.

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FEATURES OF MONGINIS BAKERY

Turn over raised from INR 5.3 m in 1992 to INR 150 m in 2003.

Import best quality machines from many country.

Launching of international quality chocolates and so many recipes of bakery very first time in Kolkata.

Key success for monginis is highly effective franchisee system as more than 100 franchisee outlets only in Kolkata.

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Monginis mainly targeted middle and upper middle class of Kolkata as it offers fresh , quality produce at affordable price.

Innovations :- As monginis was producing salty snacks in spite of others were producing sweet bakery products mainly.

Introduction of new product :- Like chicken salad roll, chicken wrap & Vegetable Manchurian.

Monginis outlets contains reheating and air condition facilities

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KEY TO SUCCESS OF MONGINIS

Good franchisee management. Packed cakes.

Return management. Pricing.

Promotions.

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FRANCHISEE MANAGEMENT

Sight selection :- Area should be at least 200 square ft &frontage be of 10 feet.

Has standard format of décor, 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.

Prominent Food and Bakery Associations in India Indian Stainless Steel

Development AssociationFragrances and Flavours

Association of India(FAFAI)All India Food Processors

AssociationPoultry Processors

AssociationAll India Distillers

AssociationAssociation Of Food

Scientists & TechnologiesNational Association of

Bakery IndustryFederation of Biscuit

Manufacturers AssociationThe Soyabean Processors

Association of IndiaThe Seafood Exporters

Association of India Indian Institute of PackagingOil Technologists

Association of India (Western Zone)

Indian Biscuits Manufacturers Association

Confederation of Indian Food Trade and Industry

Federation of Hotel and Restaurant Association of India

Indian Confectionery Manufacturers Association

Indian Dairy Association Indian Sugar Mills

AssociationAll India Bread

Manufacturers Association ltd

Bakers Association of IndiaRoller Flour Millers

Federation of IndiaAll India Grain Exporter

AssociationWheat Product Promotion

SocietySociety of Indian Bakers

ReferencesIndian Biscuits Manufacturers AssociationAll India Bread Manufacturers Association ltdAll India Food Processors AssociationSociety of Indian BakersIndian Confectionery Manufacturers

Association

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CONCLUSSIONDue to changing consumption pattern there is lot

of scope for bakery industry.

Due to modernization , westernization and industrialization demand for bakery has increased.

Good opportunity to emerge as a national brand.

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