Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Research Report on the biscuits and cookies industry in India

22,812 views

Published on

ValueNotes presents a research report on the biscuits and cookies industry in India. This industry report covers intelligence on the market size, growth, industry trends, industry attractiveness, and Porter’s analysis. The report covers fiscal years 2015 through 2019.

Published in: Food
  • DOWNLOAD THIS BOOKS INTO AVAILABLE FORMAT (Unlimited) ......................................................................................................................... ......................................................................................................................... Download Full PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... Download Full EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ACCESS WEBSITE for All Ebooks ......................................................................................................................... Download Full PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... Download EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... Download doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
  • DOWNLOAD FULL BOOKS, INTO AVAILABLE FORMAT ......................................................................................................................... ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. PDF EBOOK here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. EPUB Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... 1.DOWNLOAD FULL. doc Ebook here { https://tinyurl.com/y6a5rkg5 } ......................................................................................................................... ......................................................................................................................... ......................................................................................................................... .............. Browse by Genre Available eBooks ......................................................................................................................... Art, Biography, Business, Chick Lit, Children's, Christian, Classics, Comics, Contemporary, Cookbooks, Crime, Ebooks, Fantasy, Fiction, Graphic Novels, Historical Fiction, History, Horror, Humor And Comedy, Manga, Memoir, Music, Mystery, Non Fiction, Paranormal, Philosophy, Poetry, Psychology, Religion, Romance, Science, Science Fiction, Self Help, Suspense, Spirituality, Sports, Thriller, Travel, Young Adult,
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here

Research Report on the biscuits and cookies industry in India

  1. 1. Biscuits and Cookies Industry in India  2015 - 2019 Picture Courtesy: www.info.wowlogistics.com
  2. 2. 2 • 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, etc. • 41 tier 3 cities (less than 1 million ) including Ranchi, Mangalore, Gwalior, Roorkee, etc. 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 & 7 union territories Capital New Delhi Per capita income Nominal: USD1,124.4 p.a Religion 6 main religions Languages Hindi (official language), English (business language), 22 official languages Currency Rupees Exchange rate (USD to INR) 1 USD = INR 60.03 (as on 1st July 2014) Rural-urban mix 68% people reside in rural areas Households 246 mn Literacy rate 74.04% West North South East Source: Government websitesMetro cities Tier-I cities TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness India Fact File Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved 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
  3. 3. 3 Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved Who is the reader?  Any participant or stakeholder in the biscuits and cookies industry, who would benefit from this report  The report will also help analysts, industry experts or any person looking for an in-depth understanding of the biscuits and cookies industry Purpose of the report  The report gives insights on how the biscuits and cookies industry is expected to grow in the coming years till 2019. It is aimed at giving intelligent and actionable insights on the drivers and challenges for the industry and key segmentation, i.e. by end users and by geography  Another important aspect of the report is the profiles of the top industry players in biscuits and cookies industry in India Scope of the report  This report looks at the current scenario for biscuits and cookies industry in India  Small home and local bakeries/cafes do not come under the purview of this report Preface to the report TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness
  4. 4. Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved Executive Summary Slide 9 1 Industry Structure Slide 10 1.1 Bakery Industry Structure Slide 11 1.2 Evolution of Biscuits and Cookies Industry in India Slide 12 1.3 Biscuit Industry Definition Slide 13 1.4 Biscuit Industry Supply Chain Slide 14 2 Market Overview Slide 15 2.1 Market Size and Growth – Value Slide 16 2.3 Biscuit Consumption – India V/S World Slide 17 2.4 Biscuit Industry Segmentation by Urban-Rural Slide 18 2.5 Biscuit Industry Segmentation by Type Slide 19 2.6 Price Analysis Slide 20 2.7 Geographic Analysis Slide 21 3 Drivers and Inhibitors Slide 22 3.1 Driver 1: Increase in Disposable Income Slide 24 3.2 Driver 2: Availability of Different Pack Sizes Slide 25 3.3 Driver 3: Growth in Organized Retail Slide 26 3.4 Driver 4: Growth in Processed Food Industry Slide 27 3.5 Inhibitor 1: Increasing Tax Incidence Slide 28 3.6 Inhibitor 2: Distribution Problems in Rural India Slide 29 4 Industry Trends Slide 30 4.1 Recent Trends Witnessed Slide 31 4 TableofContents TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness
  5. 5. Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved 5 Industry Attractiveness Slide 33 5.1 Porter’s Analysis Slide 34 5.2 Industry Attractiveness Index Slide 35 6 Competitive Environment Slide 36 6.1 Biscuit Industry Segmentation by Organized/Unorganized Players Slide 37 6.2 Market Share of Players Slide 38 6.2 Brand Positioning – Price and Quality Analysis Slide 39 6.3 Competitive Benchmarking Slide 40 7 Profiles of Key Players Slide 41 7.1 Anmol Biscuits Slide 42 7.2 Britannia Industries Slide 44 7.3 ITC Slide 46 7.4 Parle Products Slide 48 7.5 Surya Foods and Agro Slide 50 8 Appendix Slide 52 8.1 Research Methodology Slide 57 8.2 Abbreviations and Bibliography Slide 58 8.3 Glossary Slide 59 5 TableofContents TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness
  6. 6. Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved6 TableofContents|ListofCharts&Tables TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness Chart 1 Share of Biscuits and Cookies in Bakery Segment in FY 2014 – India Slide 16 Chart 2 Market Size and Growth of the Biscuits and Cookies Industry in India FY 2011-19 (INR bn) Slide 16 Chart 3 Per Capita Biscuit Consumption 2009-10 (India V/S Other Countries) Slide 17 Chart 4 Urban-Rural Penetration of Biscuits – FY 2013 Slide 18 Chart 5 Biscuits and Cookies Industry Segmentation in FY 2014 Slide 19 Chart 6 Biscuits and Cookies Industry Segmentation in FY 2019 Slide 19 Chart 7 Biscuits Industry Segmentation by Price in FY2014 (by Value) Slide 20 Chart 8 Brand Segmentation by Price (Price Per Kg) Slide 20 Chart 9 Biscuits and Cookies Industry Segmentation by Region in FY 2014 Slide 21 Chart 10 Rise in Per Capita Income (INR) Slide 24 Chart 11 Consumer Breakdown by Income Level (USD mn) Slide 24 Chart 12 Share of Segments in Organized Retail in India (INR cr) Slide 26 Chart 13 Increase in Organized Retail in Food and Grocery in India (INR cr) Slide 26 Chart 14 Growth of Food Processing Sector in India (INR bn) Slide 27 Chart 15 Porter’s Analysis of Biscuits and Cookies Industry in India Slide 34 Chart 16 Share Between Organized and Unorganized Players in the Indian Biscuits and Cookies Industry – FY2014 Slide 37 Chart 17 Market Share of Key Players in The Indian Biscuits and Cookies Industry (By Value) Slide 38 Chart 18 Price and Quality Perception For Biscuits in India Slide 39 Chart 19 Annual Turnover of Anmol Biscuits Limited (INR bn) Slide 43 Chart 20 Key Manufacturing Locations of Anmol Slide 43 Chart 21 Annual Turnover of Britannia Industries Limited (INR bn) Slide 45 Chart 22 Key Manufacturing Locations of Britannia Slide 45 Chart 23 Annual Turnover of ITC Limited (INR bn) Slide 47 Chart 24 Key Manufacturing Locations of ITC Slide 47 Chart 25 Annual Turnover of Parle Products Private Limited (USD mn) Slide 49
  7. 7. Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved7 TableofContents|ListofCharts&Tables TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness Table 1 Competitive Benchmarking of Top Players in India Slide 40 Table 2 Financial Indicators of Anmol Biscuits Limited Slide 43 Table 3 Financial Indicators of Britannia Slide 45 Table 4 Financial Indicators of ITC Limited Slide 47 Table 5 Financial Indicators of Parle Products Slide 49 Table 6 Financial Indicators of Surya Foods Slide 51 Chart 26 Key Manufacturing Locations of Parle Slide 49 Chart 27 Annual Turnover of Surya Foods and Agro Limited (INR bn) Slide 51 Chart 28 Key Manufacturing Locations of Surya Foods and Agro Slide 51 Chart 29 Biscuits and Cookies Production of Organized Sector in India (Lakh Metric Tons) Slide 53 Chart 30 Key Manufacturing Location of Biscuit Manufacturers in India Slide 54 Chart 31 Price Index of Wheat Flour, Sugar, Milk Price in Last Few Quarters (INR) Base Year: FY 11-12=100 Slide 55
  8. 8. Biscuits and Cookies Industry ValueNotes India Market Intelligence Dashboard Market share of top 5 firms = 75% Output in organized Sector = 80% 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 are available Quality: Accuracy of data gathered Recency: Latest period data is available Source of Data Data Availability Industry Structure Ministry of Food Processing India Company websites, news articles Indian Biscuit Manufacturers Association (IBMA), Federation of Biscuits Manufacturers of India (FBMI) Copyright © 2015 ValueNotes Database Pvt. Ltd. All rights reserved. www.valuenotes .biz 2015 Government Bodies Primary Research Trade Interviews Completeness Quality Recency Macro Data Micro Data
  9. 9. Market Size and Growth Industry Segmentation  The biscuits and cookies industry in India has been growing at a CAGR of 10% for the last three years, and is currently valued at INR 145bn  India is currently the world’s largest biscuit consuming nation  The industry is expected to grow at a CAGR of 14% till FY 2019  ValueNotes estimates that the industry will be worth approximately INR 279bn (~USD 4.65bn) by FY 2019  Glucose biscuits (~25%) have the highest share in the industry  Compared to other FMCG products, the penetration of biscuits and cookies, in both the urban and rural areas is quite high (94% and 83%, respectively)  East and North India have the highest consumption of biscuits and cookies in the country Key Players  80% of the market is currently organized  The top four players in the market for biscuits and cookies are: Parle Products, Britannia, ITC and Surya Foods and Agro  Both Britannia and Parle account for 61% share of the market 9 Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved ExecutiveSummary The biscuits and cookies industry in India has been given an Industry Attractiveness Rating of 6.7 as per the ‘ValueNotes Industry Attractiveness Rating Evaluation System’ Drivers and Challenges Drivers:  Increasing disposable income, changing lifestyle, growth in organized retail and increasing consumption of processed and packaged food are the main drivers of the industry Challenges:  Increasing tax incidence and rising input costs are the main challenges that the biscuits and cookies industry is currently facing TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness 34% 27% 8% 4% 2% 25% Parle Britannia ITC Surya Foods Anmol Others
  10. 10. Industry Structure Picture Courtesy: Daifuku Insert appropriate picture
  11. 11. 11 Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved Biscuits and cookies is the largest segment in the bakery industry Chapter1:BiscuitIndustryStructure  Bread is a bakery product made of flour, water, and yeast mixed together and baked  Bread has become an integral part of modern day living and is available in various forms and flavors  Cake is a form of bread or bread- like food in its modern form. It is typically a sweet baked dessert Types of cakes are: • Chocolate Cakes • Pastries • Cream Cakes Bakery Industry (INR 199,000mn) Biscuits and cookies (INR 145,000 mn) Bread (INR 30,000 mn) Cakes and pastry (INR 18,500mn) Other products (INR 5,500mn)  The other products in the bakery industry are khari, toast, rusk and other small bakery products  There are no major players in this segment as most production happens locally. Even large players like Britannia have minimal presence in this segment  Biscuits and cookies is a term used for a variety of baked, commonly flour-based food products, and is typically crisp and flat  India is the world’s largest biscuits and cookies consuming nation TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness
  12. 12. Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved12 Biscuits no longer a product of mass consumption Late 1990s  Prior to the deregulation of the industry, only small scale industries (SSI) were allowed to manufacture. Even the likes of Britannia, Parle, etc. were not allowed to increase their own capacity  Consumption was largely restricted to urban pockets 2000 – 2010  The Indian biscuits and cookies industry saw high growth during this period due to increased globalization and the popularity of convenience foods  Biscuit and cookie manufacturers started improving their sales and distribution networks across the country Current situation (2011 onwards)  Manufacturers are now focusing on improving the presentation (packaging, taste and appeal) of their products  Premium biscuit brands such as Oreo and Sunfeast Dark Fantasy are seeing an increase in sales Chapter1:EvolutionofBiscuitsandCookiesIndustryinIndia TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness
  13. 13. Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved13  Biscuits is a term used for a variety of baked, commonly flour-based food products  The types of biscuits based on ingredients are: • Glucose: Small and rectangular flat-baked sweet biscuit • Crackers: Thin crisp wafer or biscuit, usually made of unsweetened dough • Milk: Biscuits with milk as the key ingredient • Marie: Sweet round biscuit with its name embossed on its top surface; the edges embossed with an intricate design. Marie biscuits are less sweet when compared to glucose biscuits • Cream: Biscuits with a creamy filling • Cookies: Small cake made from stiff, sweet dough rolled and sliced or dropped by spoonfuls on a large, flat pan (cookie sheet) and baked This report covers: • The organized sector of biscuits industry in India – which includes private and public manufacturers registered with the India Biscuit Manufacturers Association (IBMA) and Federation of Biscuit Manufacturer of India (FBMI) This report does not cover: • Small home and local bakeries owned by individuals Definition of biscuits and cookies Chapter1:DefinitionofBiscuitsandCookies TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness
  14. 14. 14 Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved Chapter1:IndustrySupplyChain Britannia and Parle have the strongest supply chain in the biscuit and cookie industry in India The chart below depicts the typical supply chain of the biscuits and cookies industry in India. The participants and their roles are also described in the diagram below:  Britannia and Parle have a very effective distribution strategy due to which their products are available in all retail formats – modern retail, departmental stores, grocery stores and even small road side cigarette shops Consumption Zone Manufacturers Manufacturers Supermarkets Retail shops Intermediaries Stockists Distributors Wholesalers Exports Importers Imports TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness
  15. 15. Market Overview
  16. 16. xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx xx FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 (E)FY 2016 (E)FY 2017 (E)FY 2018 (E)FY 2019 (E) Likely Pessimistic Optimistic CAGR xx%  xxx 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 occur as expected - Pessimistic: Least growth, provided growth factors are either delayed or not implemented in the given time frame - Most Likely: This is the optimized growth which has high probability of taking place 16 Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved Chart 2: Market Size and Growth of the Biscuits and Cookies industry in India FY 2011-19 (INR bn) The estimated growth of ‘the biscuits and cookies industry’ is based on various factors including: - India’s GDP growth - Growth of organized retail sector - Growth of processed food & food packaging sector Source: Trade interviews, ValueNotes Analysis Current market Estimated growth Chapter2:MarketSize&Growth Chart 1: Share of Biscuits and Cookies in Bakery Segment in FY 2014 – India Biscuit and cookie industry is expected to grow at a CAGR of 14% until 2019  xxx Industry Attractiveness CAGR xx% CAGR xx% CAGR xx% TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness Xx, xx% Xx, xx% Xx,xx% Xx, xx%
  17. 17. xx xx xx xx xx xx xx xx xx xx Ireland Netherland UK Italy Belgium Switzerland USA Japan India China Per Capita Consumption (Kgs) 17 Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved Per capita consumption of biscuits is one of the lowest in India Chapter2:BiscuitConsumption–Indiav/sWorld Chart 3: Per Capita Biscuit Consumption 2009-10 (India V/S Other Countries)  xx TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness Source: FnB News, Indian Mirror
  18. 18. Glucose xx% Cream xx% Crackers xx% Marie xx% Milk xx% Others xx% Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved18 Chart 5: Biscuits and Cookies Industry Segmentation in FY 2014 Chart 6: Biscuits and Cookies Industry Segmentation in FY 2019 Cream biscuits and cookies to eat into the market of glucose biscuits Chapter2:MarketSegmentation|Bytype Glucose:  xx Cream:  xx Marie:  xx Others  xx TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness Others include arrowroot, health and sweet biscuits and cookies Source: Trade interviews, ValueNotes analysis Glucose xx% Cream xx% Crackers xx% Marie xx% Milk xx% Others xx%
  19. 19. 12.6 14.3 16.1 16.9 17.5 18.5 19.1 20.5 21 2005 2006 2007 2008 2009 2010 2011 2012 2013 19 Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved India is the third largest manufacturer of biscuits in the world, after China and USA  The production of the organized biscuits and cookies manufacturing industry has grown at a CAGR of 5.9% from 12.6 lakh metric tons to 21 lakh metric tons between 2005 and 2013  During last ten years, biscuits production of the organized biscuits and cookies manufacturers in the country has almost doubled  On the other hand, production of the unorganized sector is also on rise with multiple small bakery and biscuits and cookies units opening across the country Chart 29: Biscuits and Cookies Production of Organized Sector in India (Lakh Metric tons) Source: Indian Biscuits Manufacturers Association Annexure TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness
  20. 20. Manufacturers have owned plants as well as the ones operated on a contractual basis Chart 30: Key Manufacturing Location of Biscuit Manufacturers in India Annexure TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness 20 Manufacturing Locations Manufacturers like ITC and Parle have their manufacturing units scattered across the country, whereas the smaller manufacturers have their manufacturing units confined to their regional areas. West North South East Mumbai Pune Hyderabad Bangalore Jaipur New Delhi Kolkata Chennai Ahmadabad Lucknow Nagpur Patna Surat Bhopal Chandigarh Bhubaneshwar
  21. 21. Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved21 Annexure  Up 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 of manufacturers. This had left the biscuit manufacturers with very thin margins  However, the scenario seems to be changing in the last 1-2 quarter. The key input prices - wheat and sugar were flat, while palm oil declined y-o- y during the quarter. This has resulted to increased profitability of the biscuit manufacturers Chart 31: Price Index of Wheat Flour, Sugar, and Butter in Last Few Quarters (INR) Base Year: FY 11-12=100 Source: Company annual report, ValueNotes research TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness Raw material prices for comprises more than 50% of retail price of biscuits and cookies 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
  22. 22. Appendix
  23. 23. 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, investment appraisal, due diligence, and customer need analysis. 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 23 Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved Biscuits and Cookies 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 “Biscuits and Cookies 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: Federation of Biscuits Manufacturers in India (FBMI) and Indian Biscuit Manufacturers Association (IBMA) About ValueNotes Research Methodology Applied Appendix|ResearchMethodology TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness
  24. 24. 24 Copyright @ 2015 ValueNotes Database Pvt. Ltd. All rights reserved Appendix|Abbreviations&Bibliography Abbreviations USD US Dollar INR Indian Rupee PCI Per Capita Income CDM Cadbury Dairy Milk CAGR Compound Annual Growth Rate GDP Gross Domestic Product mn million bn billion cr Crore UAE United Arab Emirates UK United Kingdom kg Kilogram FY Fiscal Year SKU Stock Keeping Unit Sq km Square Kilometer BOPP Biaxially Oriented Polypropylene SSI Small Scale Industries ITC Indian Tobacco Company p.a. Per Annum FMCG Fast Moving Consumer Goods VAT Value Added Tax CENVAT Central Value Added Tax US United States FBMI Federation of Biscuits Manufacturers Association Indian Biscuit Manufacturers Association (IBMA) Federation of Biscuits Manufacturers of India (FBMI) FnB News New Articles Company annual reports and company websites McKinsey Group Institute India Consumer Demand Model Moneycontrol.com Bibliography ValueNotes conducted secondary research to obtain information on biscuits and cookies industry in India and referred to following sources: TOC Market Overview Annexure & Appendix Industry Trends Competitive Environment Industry Structure Executive Summary Drivers & Inhibitors Industry Attractiveness
  25. 25. Author Profile www.indianotes.com Indian Markets www.sourcingnotes.com Outsourcing Intelligence www.valuenotes.biz Research & Consulting ValueNotes Database Pvt Ltd 1 Bhuvaneshwar Society, Abhimanshree Road Pashan, Pune 411 008, Maharashtra, India Other Industry Reports by ValueNotes: 1. Chocolate industry in India 2. Bread industry in India 3. Heat and eat industry in India Disclaimer: This short industry report is published for general information only. Although high standards have been used in the preparation, ValueNotes is not responsible for any loss or damage arising from use of this report. The information contained herein is from publicly available data or other sources believed to be reliable. While we would endeavor to update the information herein on reasonable basis, ValueNotes is under no obligation to update or keep the information current. This report is the sole property of ValueNotes and must not be copied, either in whole or in part, or distributed or redistributed to any other person in any form. in case of any queries, mail us at research@valuenotes.co.in research@valuenotes.co.in | +91 20 6623 1743 About the author: As a senior analyst at ValueNotes, Tejaswee Shrestha has worked on opportunity assessment studies in manufacturing & engineering sector where she has been involved in the formulating recommendation and entry strategies. Her main focus of studies at ValueNotes has been customer engagement studies in various industries such as lighting and engineering industries. Her projects also include due diligence and industry tracking. She also is a regular writer for ValueNotes where she contributes actively to blogs and articles.

×