PPT

1. INDIAN BISCUIT INDUSTRY
10/16/13

2. OVERVEIW OF INDIAN BISCUIT INDUSTRY
• Contributes Rs.8000crs to
FMCG industry
• Organized and unorganized
sectors
• 150 small to medium
factories in India
• Federation of biscuit
manufactures of India
• Third largest producer of
Biscuits in the world, after
the USA and China.
10/16/13

3. List of players in the industry
•
•
•
•
•
•
Britannia
Parle
ITC foods
Surya Foods
Others (Dukes, Anupam, Horlicks)
Regional players
10/16/13

4. Growth of the industry
• steady growth of 14-15%
annually
• Growth has picked up
during the 2007-08
• The total production is
increasing from year to
year
10/16/13

5. SWOT ANALISYS
Strengths
• Brand building capabilities
• Diversified product range
• The depth of distribution
• Low and mid price range of the products
• Industry catering to masses.
Weaknesses
• Dependence on retailers and grocery stores
• Lack of technology up gradation
10/16/13

6. Opportunities
• Indian Biscuit Manufacturers’ Association (IBMA) estimates annual
growth of around 20% in next couple of years.
• Growing demand of Sugar free cream crackers & diet biscuits.
• A package of fiscal incentives provided by various State
governments
Threats
• Fluctuations in the prices of raw materials, transportation costs &
distribution
• Entry of ITC (having very good distribution channels) in to biscuit
industry)
• Emerging local bakery products
10/16/13

7. PORTER’S FIVE FORCES MODEL
 RIVALRY WITHIN THE INDUSTRY IS VERY HIGH
• Major players dominate the Indian market.
• High competition among the players
• Unorganized sector cannot compete with major players in
the case of Advertising
10/16/13

8.  HIGH ENTRY BARRIERS
 Capital intensive manufacturing, advertising and distribution
 Heavy competition from major players.
 BARGAINING POWER OF SUPPLIERS:
 In the case of major players bargaining power of suppliers is very
low as they dictate the prices.
 The ingredients are basic commodities such as wheat , sugar etc.
10/16/13

9. 
•
•
•
HIGH BARGAINING POWER OF CUSTOMER
Availability of many biscuits from low, moderate prices
Availability of biscuits from non organized sector
Loyalty of the buyers to biscuits that have brand identity makes
them more powerful in the case of new entries.

•
•
•
THREAT OF SUBSTITUTES
Substitute threat is more in the case of biscuits
Growing packaged industry and bread industry
Traditional Indian homemade snacks
10/16/13

10. PESTEL ANALISYS
Political
 Taxes
 Production and Distribution
licenses
Economical
 lack of technology up gradation
 Increase in per capita income in
India
Social
 India is 3rd largest producer
 Changing Lifestyle
 Positive Perception among the
people
10/16/13

11. Technological
 lack of innovation in technology
 Improved Research and development
Environmental
 Agriculture based industry
 Population in the country
Legal
 Taxation: Central Excise Duty as also State Sales Tax
 The Sales Tax or VAT lowered to the rate of 4%
10/16/13

12. CRITICAL SUCCESS FACTORS
•
•
India’s lower and middle class segment
Distribution (in rural markets) and advertising (in urban markets
Innovation
• New variants added into existing brands including stylish
packaging.
• The focus on urban markets
• lower Price
10/16/13

13. CONCLUSIONS
• Indian biscuit Industry will have a continuous growth
• Small companies are able to make profits
10/16/13

14. THANK YOU
10/16/13