Bread industry in India, valued at INR 33bn (USD 0.5 billion) in 2015, is expected to grow at a CAGR of 10% to reach INR 53bn (USD 0.8 billion) by 2020

1. Bread Industry / Market in India
 2015 - 2020
Picture Courtesy: www.info.wowlogistics.com

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• 43 cities in India have a population of 1mn+
• Cities in India are classified on the basis of cost of
living.
• 4 Metros including Mumbai, Delhi,
Chennai, Kolkata
• 9 Tier 1 (+5 million ) cities including Pune,
Ahmedabad and Bangalore
• 22 Tier 2 cities (1 million to 5 million )
including Patna, Kochi, Rajkot, Madurai
• 41 Tier 3 cities (less then 1 million )
including Ranchi, Mangalore, Gwalior,
Roorkee
India - Snapshot
Population growth 1.4% p.a
Land Area 3.29 mn sq km
Population density 324 persons per sq km
Form of government Democracy
Number of States 29 states & 6 union territories
Capital New Delhi
Per capita income Nominal: USD1,124.4 p.a
Religion 6 main religions
Languages
Hindi (national language), English
(business language), 22 (official
languages)
Currency Rupees
Exchange rate (USD
to INR)
1 USD = INR 63.97
(as on 13th May 2015)
Rural-urban mix 68% people reside in rural areas
Households 246 mn
Literacy rate 74.04%
Source: Government websitesMetro cities
Tier-I cities
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
India Fact File
Andhra
Pradesh
Arunachal
Pradesh
AssamBihar
Chhattisgarh
Goa
Gujarat
Haryana
Himachal
Pradesh
Jammu
and
Kashmir
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Manipur
Meghalaya
Mizoram
Nagaland
Orissa
Punjab
Rajasthan
Sikkim
Tamil
Nadu
Tripura
Uttar Pradesh
Uttaranchal
West
Bengal
Mumbai Pune
Hyderabad
Bangalore
Jaipur
New Delhi
Kolkata
Chennai
Ahmadabad
Lucknow
Nagpur
Patna
Surat
Telangana
West
North
South
East

3. Preface to the Report
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Who is the reader?
 Any participant or stakeholder in the bread and bakery industry
 Analysts, industry experts or any person with an interest in tracking the progress of the bread industry
Purpose of the report
 Gives the reader an overview of the bread industry in India
 The report provides estimates the size and expected of bread industry till 2020. It offers intelligent and actionable insights
on the drivers and challenges faced by the industry and its key segments, i.e. by end users and by geography
 It provides the profiles of the top industry players in the bread industry in India
Scope of the report
 This report covers:
• Current estimated market size and future growth
• Industry structure
• Growth drivers and inhibitors
• Competitive landscape
 Bakery products such as biscuits and cookies, cakes and pastries do not come under the purview of this report
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness

4. Copyright @ 2015 ValueNotes Database Pvt Ltd. All rights reserved
Executive Summary Slide 10
1 Industry Structure Slide 11
1.1 Bread industry structure Slide 12
1.2 Evolution of bread industry in India Slide 13
1.3 Definition of bread for the report Slide 14
1.4 Bread industry classification Slide 15
1.5 Industry supply chain Slide 16
2 Industry Overview Slide 17
2.1 Market size & growth Slide 18
2.2 Industry segmentation
2.2.1 - By flavor Slide 19
2.2.2 - By category Slide 20
2.3 Consumption by category Slide 21
2.4 Urban and rural market Slide 22
2.5 Geographical analysis Slide 23
3 Drivers & Inhibitors Slide 24
3.1 Driver 1 : Changing lifestyle and preference of the consumer Slide 26
3.2 Driver 2 : Increase in disposable income Slide 27
3.3 Driver 3 : Growth in organized retail Slide 28
3.4 Driver 4 : Product and technology innovation Slide 29
3.5 Inhibitor 1: Infrastructure problems Slide 30
4 Industry Trends Slide 31
4.1 Recent trends witnessed Slide 32
4
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
TableofContents

5. Copyright @ 2015 ValueNotes Database Pvt Ltd. All rights reserved
5 Industry Analysis Slide 33
5.1 Porters analysis Slide 34
5.2 Industry attractiveness index Slide 35
6 Competitive Environment Slide 36
6.1 Industry segmentation – Organized and Unorganized Slide 37
6.2 Market share of players Slide 38
6.3 Brand positioning – Price & quality analysis Slide 39
6.4 Competitive benchmarking Slide 40
6.5 Competitor profiles Slide 41
6.5.1 Bonn Nutrients Slide 42
6.5.2 Britannia Industries Ltd. Slide 44
6.5.3 Harvest Gold Industries Pvt. Ltd. Slide 46
6.5.4 Kitty Industries Pvt. Ltd. Slide 48
6.5.5 Modern Foods Industries Ltd. (HUL) Slide 50
7a Annexure Slide 52
Price index of Wheat flour, Sugar and Butter in last few quarters Slide 53
7b Appendix Slide 54
7b.1 Abbreviations and Bibliography Slide 55
7b.2 Glossary Slide 56
7b.3 Research methodology Slide 57
5
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
TableofContents

6. Copyright @ 2015 ValueNotes Database Pvt Ltd. All rights reserved6
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
TableofContents|ListofCharts&Tables
Chart 1 Supply-chain in Indian bread industry Slide 15
Chart 2 Share of bread in bakery segment in 2014 – India Slide 17
Chart 3 Bread industry market size & growth (INR billions) Slide 17
Chart 4 Bread industry segment by category (by value) Slide 18
Chart 5 Market segmentation by flavor (by value) Slide 19
Chart 6 Consumption by category Slide 20
Chart 7 Share of urban and rural market in India Slide 21
Chart 8 Bread industry market size & growth (INR billions) Slide 21
Chart 9 Geographical segmentation of bread consumption in India (2014) Slide 22
Chart 10 Growth of young population in India (millions) Slide 25
Chart 11 Growth of urban population in India (millions) Slide 25
Chart 12 Female work participation – Overall and Urban Slide 25
Chart 13 Rise in per capita income Slide 26
Chart 14 Consumer breakdown by income level (USD millions) Slide 26
Chart 15 Increase in organized retail in India (INR crores) Slide 27
Chart 16 Organized retail market in India (INR crores) Slide 27
Chart 17 Estimation of distribution in various parts Slide 29
Chart 18 Porter’s analysis of bread industry in India Slide 33
Chart 19 Organized and unorganized segmentation of the bread market Slide 36
Chart 20 Market share of key players Slide 37
Chart 21 Price and quality perception of bread products Slide 38
Chart 22 Annual turnover of Bonn Industries Ltd Slide 42

7. Copyright @ 2015 ValueNotes Database Pvt Ltd. All rights reserved7
TableofContents|ListofCharts&Tables
Chart 23 Key manufacturing locations of Bonn Industries Ltd. Slide 42
Chart 24 Annual turnover of Britannia Industries Ltd. Slide 44
Chart 25 Key manufacturing locations of Britannia Industries Ltd. Slide 44
Chart 26 Annual turnover of Harvest Gold Industries Pvt. Ltd. Slide 46
Chart 27 Key manufacturing locations of Harvest Gold Industries Pvt. Ltd. Slide 46
Chart 28 Annual turnover of Kitty Industries Pvt. Ltd. Slide 48
Chart 29 Key manufacturing locations of Kitty Industries Pvt. Ltd. Slide 48
Chart 30 Annual turnover of Modern Foods Industries Ltd. Slide 50
Chart 31 Key manufacturing locations of Modern Foods Industries Ltd. Slide 50
Chart 32 Price index of Wheat flour, Sugar and Butter from FY 12 to Q3 FY 15 (INR) Slide 52
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness

8. Copyright @ 2014 ValueNotes Database Pvt Ltd. All rights reserved8
Table 1 Bread market share and expenditure – Key states Slide 21
Table 2 Competitive benchmarking of top players in India Slide 39
Table 3 Financial indicators of Bonn Industries Ltd. Slide 42
Table 4 Financial indicators of Britannia Industries Pvt. Ltd. Slide 44
Table 5 Financial indicators of Harvest Gold Industries Pvt. Ltd. Slide 46
Table 6 Financial indicators of Kitty Industries Pvt. Ltd. Slide 48
Table 7 Financial indicators of Modern Foods Industries Ltd. (HUL) Slide 50
TableofContents|ListofCharts&Tables TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness

9. Bread Industry
ValueNotes India Market Intelligence Dashboard
Market share of top 5 firms = 80% Output in organized Sector = 45%
Organized SectorConcentration
Macro Data: Market size, growth, market
shares of key players, customer segments,
key industry metrics
Micro Data: Segmental market size &
growth, financials of key players
Completeness: All data points is available
Quality: Accuracy of data
Recency: Latest period data is available:
Source of Data
Data Availability
Industry
Structure
Ministry of Statistics and Programme
Implementation (MOSPI), Economic
Survey of India, Census, etc
National Council of Applied Economic
Research (NCAER), IBEF, Euro Monitor,
World Bank, Company Websites, News
Articles, Food & Beverages News, National
Sample
Copyright © 2015 ValueNotes Database Pvt Ltd. All rights reserved. www.valuenotes .biz 2015
Government
Bodies
Primary
Research
Trade Interviews , etc
Completeness
Quality
Recency
Macro
Data
Micro
Data
All India Bread Manufacturer's
Association (AIBMA)

10. Market Size And
Growth
Industry
Segmentation and
structure
 The bread industry in India grew at a CAGR of 9% over the last three years and is valued at INR 33bn (~USD 0.51bn) in
FY 2015 (E)
 The industry is expected to grow at a CAGR of 10% over the next five years to approximately INR 53bn (~USD 0.82bn)
in FY 2020
 Organized segment of the bread industry currently stands at ~45%
 Entry of the mid-sized regional players is consolidating the industry towards a more organized structure
 Brown and nutritional bread are fast growing segments while white bread is the largest at 75%
 Though urban market accounts for ~65% of the demand, rural market is growing faster
Key Players
 Britannia (BIL), Modern Foods Industries Ltd (MFIL), Bonn, Kitty and Harvest
are the market leaders presently
 Both BIL and MFIL account for a combined 45% of organized bread market in India
10 Copyright @ 2015 ValueNotes Database Pvt Ltd. All rights reserved
ExecutiveSummary
The bread industry in India has been given an Industry Attractiveness Rating of “Mildly attractive” as per the
‘ValueNotes Industry Attractiveness Rating Evaluation System’
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
Drivers and
Challenges
 Drivers:
Increasing disposable incomes, changing lifestyles and preferences, growth in organized retail and increasing
consumption of packaged food are the main drivers of the industry
 Challenges:
Continuous increase in prices of raw materials and poor infrastructure problems are some of the threats to the bread
industry
BIL
MFIL
Bonn
Harvest
Kitty
Others
20%
20%
25%
15%
10%10%

11. Industry Structure
Picture Courtesy: Daifuku

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TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
Chapter1:BreadIndustryStructure
 India is the world’s largest biscuit
consuming nation
 There are various types of biscuits
such as:
• Glucose biscuits
• Cream biscuits
• Cookies
• Crackers
 Bread has become an integral
part of modern living and is
available in various patterns
and flavors such as:
• Sliced Bread
• Pav and Buns
• Nutritional Bread
• Fruit Bread
 Cakes and pastries is relatively new
but rapidly growing segment
 Types of cakes include:
• Chocolate Cakes
• Cream Cakes
• Pastries
Bakery industry
(INR 223,500mn)
Biscuits and cookies
(INR 165,000mn)
Bread
(INR 33,000mn)
Cakes and pastries
(INR 20,000mn)
Other products
(INR 5,500mn)
 The other category of products in
bakery industry include khari,
toast, rusk and other small bakery
delicacies
Bread is the second largest segment in the bakery industry

13. Copyright @ 2015 ValueNotes Database Pvt Ltd. All rights reserved13
Late 1990s
 Government of India had reserved
bread industry for Small Scale
Industries (SSI) status
 Wax-coated paper was the most
preferred packaging material as it
had the capacity to absorb extra oil.
But the wax packaging tended to
open up in humid conditions,
resulting in the product getting
infected
2000 – 2010
 Between 2000 and 2010, the bread industry
saw a huge shift from manual production to
automated production
 Early 2000 was the turning point for the
bakery products market because of an
increase in urbanization, changing food habits
and the availability of reasonably priced ready-
to-eat products
 The industry started using polythene for
packaging as it offered a safe and fully sealed
product. The producers could create aesthetic
packages with transparent packaging
Current Situation (2011 onwards)
 Growing concern over health and having the
ability to choose healthy foods is leading to
innovations in bread products
 With the fast food culture catching on, the
demand for bread products has accelerated
 Companies are entering the market with
concepts such as live bakery-cum-cafés to
cater to today's youth who are looking for a
nice ambience and access to wifi, where they
can relax and try new products. Global bakery
chains like BreadTalk and Cinnabon bakery
have started bakery cafes
Chapter1:EvolutionofbreadindustryinIndia TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
Bread industry has seen rapid changes over the last decade

14. Copyright @ 2015 ValueNotes Database Pvt Ltd. All rights reserved14
This report covers:
• The organized sector including private and public
manufacturers registered with All India Bread Manufacturer’s
Association (AIBMA) and other federations and associations
of bread
This report does not cover:
• Other bakery products like cakes, rusks, toasts and khari
• Unorganized small local bakeries manufacturing bread
Chapter1:IndustryDefinition
Definition of bread as per the scope of this report
 A staple food made from flour or meal mixed with other dry and liquid ingredients, usually combined with a leavening agent. It is kneaded,
shaped into loaves, and baked. Based on type of bread, it can be broadly categorized into the following categories:
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
• Sliced Bread: Sliced bread is a pre-sliced loaf of bread
• Pav Bread: Pav is a local hand-sized, small dome shaped bakery product with a flat bottom
• Other Breads: Other type of breads include exotic breads, flavored breads, burger buns, pizza bases etc

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Chapter1:BreadIndustryClassification
Bread is mainly classified on the basis of category and flavor
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
White bread
 Made from Atta and
Maida
 Easily available at
grocery stores
 Used in sandwiches
or consumed with
milk and tea in
households
Brown bread
 Made of whole
wheat flour
 Available at most
urban grocery stores
 Consumed mostly by
health conscious
consumers
Fruit bread
 Made of lightly
enriched dough and
dried fruit with higher
sugar content
 Available mostly in
modern retail outlets
and bakery shops
 Consumed mostly for
breakfast or as
secondary staple diet
Nutritional bread
 Made of various
nutrients, multi
grains like oats, rye,
corn, garlic etc.
 Preferred by
consumers for its
nutritional contents
 Mostly consumed in
metro cities only
Bread can be broadly categorized by its type and ingredients
Sliced bread
 Sliced bread is a pre-sliced
loaf of bread usually
available at grocery stores
 This segment is dominated
by organized players
 Consumed as a breakfast
item in households with
milk, tea or used to make
sandwich etc
Pavs & Buns
 Pav is a hand-sized, dome
shaped bakery product with
a flat bottom
 Industry for this segment is
highly unorganized
 Commonly consumed in
Northern and Western
India in food items like pav
bhaji, vada pav etc
Other breads
 This segment consists of
exotic breads, flavored
breads, burger buns and
pizza bases etc.
 Premium product segment
dominated by organized
players
 Mostly consumed in urban
areas
Segments
by Type
Segments
By
Ingredient

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Chapter1:IndustrySupplyChain
Logistics plays an important role in bread industry because of its short shelf life
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
Indirect sales
Direct sales
The chart below depicts the typical supply chain of bread industry in India. The participants and their roles are described in diagram below:
 The supply chain of bread industry can be divided into:
• Direct sales: This consists of direct distribution of products by manufacturers to organized retail segments like supermarkets,
departmental stores, etc. and sometimes directly to the end consumers
• Indirect sales: This channel entails distribution of the product by manufacturer through various middlemen like wholesalers,
distributors to the front end sellers like retailers, hotels, restaurants, etc.
• As bread is a highly perishable item with a shelf life of only 2-3 days, it needs to be distributed within 40 hours of manufacturing. The
industry needs to have a strong distribution network including various middlemen and suppliers to reach every corner of the country.
Chart 1: Supply-chain in Indian bread industry
Wholesalers
Distributors
Manufacturers
Hotels
Restaurants
Individual
consumer
Production Zone Distribution Zone Consumption Zone
Retailers
Super markets
B2B segment
B2C segment

17. Industry Overview

18. X
X
X
X
X
X
X
X X
X
X
X
X
X
X
X
X
X
X
FY 2012 FY 2013 FY 2014 FY 2015(E) FY 2016(E) FY 2017(E) FY 2018(E) FY 2019(E) FY 2020(E)
Market Size (Optimistic) Market Size (Pessimistic) Market Size (Most Likely)
18 Copyright @ 2015 ValueNotes Database Pvt Ltd. All rights reserved
Chart 3: Bread industry market size & growth (INR bn)
The estimated growth of ‘the bread industry’ is based on various
factors* including:
- xxx
- xxx
- xxx
- xxx
- xxx
Source: Trade interviews, ValueNotes Analysis
Current market
Estimated growth
Chapter2:MarketSize&Growth
Chart 2: Share of bread in bakery segment in FY 2015(E) – India
Bread industry to grow at a CAGR of X% in the next 5 years
 xxx
 xxx
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
CAGR X%
CAGR X%
CAGR X%
CAGR X%
Bread
X%
Biscuit
X%
Cakes and
Pastries
X%
Others
X%
Usage of “Three point analysis” to arrive at realistic growth figures:
- Optimistic: Maximum growth that can be anticipated, provided all
the factors contributing to growth show a positive impact
- Most Likely: Most likely growth which has highest probability of
taking place
- Pessimistic: Least growth, if growth factors are delayed or not
implemented

19. White Bread
Brown Bread
Fruit Bread
Other
Nutritional
Bread
19 Copyright @ 2015 ValueNotes Database Pvt Ltd. All rights reserved
Source:
Trade interviews,
ValueNotes Research
Chapter2:IndustrySegmentation
Brown and nutritional breads are fast growing segments
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
Chart 4: Bread industry segment by
ingredients in FY 2015(E) (by value)
White bread
 xxx
Fruit and other nutritional bread
 xxx
X%
X%
X%
Brown bread
 xxx
“There is a growing segment of people ready to pay
the extra buck for a healthier bread product. Brown
bread sales in the country are rising, especially in
the urban areas. Also for bread makers, brown
bread is a boon as they get a higher margin with it
as against white bread.”
P. Krishnakumar
Senior General Manager, HUL
In an interview with ‘Food navigator – Asia’
X%

20. Sliced Bread
Pav and Buns
Other breads
20 Copyright @ 2015 ValueNotes Database Pvt Ltd. All rights reserved
Source: Trade interviews, ValueNotes Research
Chapter2:IndustrySegmentation
Slice bread is the most popular segment within bread industry
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
Chart 5: Bread industry segment by
category in FY 2015(E) (by value)
Sliced bread
 xxx
Pav & Bun
 xxx
Other breads (Exotic, flavored, burger buns, pizza
base etc)
 xxx
76%
14%10%
*Popular Indian street food

21. B2C
B2B
 xxx
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Chapter2:IndustrySegmentation
B2C sector is the biggest consumer of bread in India
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
 xxx
Source: Trade interviews, ValueNotes Research
Chart 6: Consumption by category in 2015(E) (by value)
B2C segment B2B segment
“Bakery is now being termed as aspirational stepping
stone towards high-end F&B facilities mainly caters to
quick business meeting where people can have a quick
bite while deliberations and even to close friends who
wants to enjoy a moment together. Besides, now gifting
branded bakery products is replacing the earlier “mithai
ka dibba” trend as well.”
Pallav Singhal
Executive chef, JW Marriott Chandigarh
in an interview with ‘FnBnews.com’
70%
30%

22. X%
X%
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Chart 8: Share of sales in Tier 1 & Tier 2 cities in urban market
in FY 2015(E) (by value)
Source: Trade interviews, ValueNotes Analysis
Urban market
Rural market
Chapter2:MarketSize&Growth
Chart 7: Share of sales in urban and rural market in FY 2015(E) (by value)
Rural market is expected to grow faster than the urban market
 xxx
 xxx
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
Tier 1
Tier 2
* Urban market constitutes of 8 Tier 1 & 26 tier 2 cities, While rural market includes Tier
3 cities ( <1 ml population) and remaining market
States
Monthly per
capita
expenditure
(INR)
Urban
Monthly per
capita
expenditure
(INR)
Rural
Share of
states in
Urban
market (%)
Share of
states in
Rural
market (%)
Uttar Pradesh X X X% X%
Maharashtra X X X% X%
Delhi X X X% X%
J & K X X X% X%
West Bengal X X X% X%
Andhra Pradesh X X X% X%
Punjab X X X% X%
Kerala X X X% X%
Rajasthan X X X% X%
Karnataka X X X% X%
Source: NSS report 2010, ValueNotes Analysis
Table 1: Bread market share and expenditure – Key states
Source: Reevolv advisory estimates, Trade interviews, ValueNotes Analysis
X% X% X%
X% X% X%
2005 2010 2015(E)
Rural
Urban

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Chapter2:GeographicalAnalysis
X%
East (X%)
 Xxxxxxxxxxxxx
 Xxxxxxxxxxxxx
 Xxxxxxxxxxxxx
 xxxxxxxxxxxxx
South (X%)
 Xxxxxxxxxxxxx
 Xxxxxxxxxxxxx
 Xxxxxxxxxxxxx
 xxxxxxxxxxxxx
West (X%)
 Xxxxxxxxxxxxx
 Xxxxxxxxxxxxx
 Xxxxxxxxxxxxx
 xxxxxxxxxxxxx
Source: All India Bread Manufacturer’s Association
(AIBMA), Assocham, ValueNotes Research
X%
X%
X%
North (X%)
 Xxxxxxxxxxxxx
 Xxxxxxxxxxxxx
 Xxxxxxxxxxxxx
 xxxxxxxxxxxxx
Northern and Western India are the biggest consumers of bread in the country
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
Chart 9: Geographical segmentation of bread consumption in India (FY 2015 (E))

24. Annexure

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Annexure
 Till mid-2014, prices of wheat, vegetable oil, ghee and sugar were increasing on an average by ~20-22% each year. Increasing input cost had
resulted in increasing operating costs for manufacturers. This had left the biscuit manufacturers with very thin margins
 However, the scenario seems to be changing in the last couple of quarters. The key input prices - wheat and sugar were flat, while palm oil
declined y-o-y during the quarter. This has resulted in to increased profitability for the bread manufacturers
Chart 32: Price index of Wheat Flour, Sugar, and Butter from FY 12 to Q3 FY 15 (INR)
Base Year: FY 11-12=100
Source: Britannia Industries Ltd. - Annual report FY 14
TOC
Market
Overview
Annexure &
Appendix
Industry Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Industry
Attractiveness
Raw material prices contribute to more than 50% of retail price of bread
100
121
133
128
135 135
116 114
111
104
93
108
118
116
110
FY 11-12 FY 12-13 FY 13-14 Q1 14-15 Q2 14-15 Q3 14-15
Flour Sugar Butter

26. Appendix

27. 27
Appendix|Abbreviations&Bibliography
Abbreviations
USD US Dollar
INR Indian Rupee
PCI Per Capita Income
CAGR Compound Annual Growth Rate
GDP Gross Domestic Product
mn million
bn billion
cr crore
kg Kilogram
FY Fiscal Year
p.a. Per annum
km Kilometer
FMCG Fast Moving Consumer Goods
US United States
B2B Business-To-Business
B2C Business-To-Consumer
HUL Hindustan Unilever Limited
All India Bread Manufacturers Association (AIBMA)
FnB News
News Articles
Company annual reports and company websites
McKinsey Group Institute India Consumer Demand Model
Moneycontrol.com
Registrar of Companies
Bibliography
ValueNotes conducted secondary research to obtain information on bread industry in
India and referred to following sources:
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved

28. 28
Appendix|Glossary TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
Attractiveness
B2B
Business-to-business (B2B) is commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a
wholesaler and a retailer
B2C Business that sells products or provides services to end-user consumers
Grammage Weight of the product in a packet
Polyethene A tough, light flexible synthetic resin made by polymerizing ethylene, chiefly used for plastic bags, food containers, and other packaging.
Urbanization Urbanization or urban population refers to people living in urban areas as defined by national statistical offices
Working women
participation
Working women participation rate is the female proportion of the population ages 15 and older that is economically active: all females who supply
labor for the production of goods and services during a specified period
Glossary
Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved

29. ValueNotes is a full-service market and business research firm. Since 2000, we have helped customers, in India and around the globe, make
better business decisions by providing actionable intelligence. Our customized research solutions, by way of projects and continuing
engagements, have helped serve specific business needs - market entry strategy, choice of location, partner selection, competitive intelligence,
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Over the years, ValueNotes has developed considerable domain knowledge in a variety of sectors and industries. More important, we understand
how to develop and deploy appropriate research methodologies best suited for diverse markets. We've developed proprietary research methods
to deal with unorganized, information-scarce markets; and analytical techniques to triangulate, validate and correlate incomplete or unrelated
information
29
Bread industry
in India
Government
Websites &
Publications
Industry
Intelligence
Industry
Associations
Publications
& News
Releases
Press
Releases &
Publications
by Industry
Players
Industry
Reports/
Trade
Publications
ValueNotes carries out industry studies designed around optimal use of
secondary (desk) research techniques to gain maximum intelligence with
specific insights and information. The steps carried out for “Bread
Industry in India” are as follows:
 Secondary research: Intensive secondary research sources
include, but are not limited to,
• Print and online business publications
• Analyst reports
• Press releases
• Trade publications
 Industry intelligence and market analysis: Triangulation
method is adopted to validate data points from the supply
side, demand side, industry reports and trade publications
 News releases and publications:
 Industry Associations: All India Bread Manufacturer’s
Association (AIBMA)
About ValueNotes
Research Methodology Applied
TOC
Market
Overview
Annexure &
Appendix
Industry
Trends
Competitive
Environment
Industry
Structure
Executive
Summary
Drivers &
Inhibitors
Government
Initiatives
Industry
AttractivenessAppendix|ResearchMethodology
Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved

30. As an analyst at ValueNotes, Sujay has worked on various projects such as market sizing,
custom research, competitive intelligence, due diligence, market entry strategy and
industry reports.
His main focus of studies at ValueNotes has been market sizing and customer intelligence
in various industries such as consumer markets and engineering industries.
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