The document provides an overview of the Indian bakery industry. It discusses the history and development of baking, key raw materials used, major bakery products including bread and biscuits, and the present status and structure of the industry in India. The biscuit and bread segments are dominated by a few major players and hold most of the market share. The industry is growing at a rate of 6-7% annually and expected to reach over Rs. 4,300 crore by 2012. The document also presents a case study on the success of Monginis bakery in Kolkata.

1. 1

2. I N D U S T R Y
2
Presented By
SUHAS M.H.
ID NO. MBAL008

3. 3
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.

4. HISTORY
4
• 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.

5.  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
5

6. 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. 6

7.  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

8. 8
 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.

9. RAW MATERIALS USED IN
BAKERY
 Wheat flour
 Sugar and honey
 Yeast
 Egg
 Milk and milk powder
 Dry fruits
 Fats
9

10. Bakery Products
 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
 Biscuits
 Pastries
 Cakes
 Buns
 Confectionary products

11. SCOPE OF BAKERY
INDUSTRY
 In hotel business
 Biscuit industry
 Bread
 Retailing of bakery
 Healthier bakery
 Sugar free bakery
 Confectionary
11

12. 12
• 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

13. 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.
13

14. 14
• 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

15.  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%.
15

16. 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

17. 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.
 Major Players
The major players in the bread industry that holds about 90% of the market
share are:
 Britannia
 Modern Industries Ltd.

18. 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.
18

19.  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
19

20. 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.
20

21. SCOPE
 Changing 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
21

22. 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

23. 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
23

24. SWOT ANALYSIS
STRENGTHS
 Plenty of men and raw material at cheep rate.
 Changing consumption pattern.
 Growing market.
 Bakery products are tasty, nutritious readily available
and easily carried.
24

25. 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 .
25

26. OPPORTUNITY
 Vast 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.
26

27. THREATS
 High 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.
27

28. MARKETING
 Determine 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.
28

29. 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.
29

30. 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

31. MARKET
STRUCTURE
31
Market
Segmentation(biscuit)
Segment Share (%)
Organized 50
Informal 50
Lead Players and Alliances
Company Share (%)
Britannia Denone,
France
46
Parle Biscuits 40
Bakeman's 3.5
Market Segmentation (bread)
Segment Share (%)
Organized 15
Informal 85
Source- Society of Indian Bakers

32. GROWTH RATE
32
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

33. 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.
33

34. 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.
34

35. 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.
35

36.  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
36

37. KEY TO SUCCESS
OF MONGINIS
 Good franchisee management.
 Packed cakes.
 Return management.
 Pricing.
 Promotions.
37

38. 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.

39. Prominent Food and Bakery Associations in India
 Indian Stainless Steel
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)
 Indian Biscuits Manufacturers
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

40. References
 Indian Biscuits Manufacturers Association
 All India Bread Manufacturers Association ltd
 All India Food Processors Association
 Society of Indian Bakers
 Indian Confectionery Manufacturers Association
40

41. CONCLUSSION
 Due 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.
41

42. 42