Biscuit Indusrty 28

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Transcript of Biscuit Indusrty 28

A Study On Biscuit Industry

A Industry Analysis Report Submitted to

Jawaharlal Nehru Technological University, Hyderabad

In partial fulfillment of the requirementsfor the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

V.SANDHYA RANI (14881E0029)

Under the guidance of

G. RAMESH Associate Professor Department of Management studies

Department of Management StudiesVARDHAMAN COLLEGE OF ENGINEERING(Permanently Affiliated to JNTUH, Hyderabad, Approved by AICTE and Accredited by NAAC with A grade & ISO 9001:2008 certified )Shamshabad - 501 218, Hyderabad2014 - 2016

Department of Management StudiesVARDHAMAN COLLEGE OF ENGINEERING(Permanently Affiliated to JNTUH, Hyderabad, Approved by AICTE and Accredited by NAAC with A grade & ISO 9001:2008 certified)Shamshabad - 501 218, Hyderabad

CertificateThis is to certify that the industry analysis report work entitled Biscuit Industry is the bonafide work done By V.SANDHYA RANI (14881E0029) in the Department of Management studies, VARDHAMAN COLLEGE OF ENGINEERING, Shamshabad is submitted to Jawaharlal Nehru Technological University, Hyderabad in partial fulfillment of the requirements for the award of MBA degree during 2014 - 2016.

Guide:Head of the Department: G. RameshK. Jaahnavi Associate Professor,Associate Professor & Head, Dept of Management studies,Dept of Management studies, Vardhaman College of Engineering,Vardhaman College of Engineering, Hyderabad.Hyderabad.

Viva-Voce held on

_________________ Internal Examiner

ACKNOWLEDGEMENTThe satisfaction that accompanies the successful completion of the task would be put incomplete without the mention of the people who made it possible, whose constant guidance and encouragement crown all the efforts with success.

I thankful to my guide G.Ramesh, Associate Professor, Management studies for his sustained inspiring Guidance and cooperation throughout the process of this industry analysis report. His wise counsel and suggestions were invaluable.

I thankful to G.Suresh Kumar, Assistant Professor, Management studies for his sustained cooperation throughout the process of this industry analysis report.

I would like to thank K.Jaahnavi,Associate professor & Head, Management studies for her expert guidance and encouragement at various levels of my project.

I show gratitude to Dr. S.Sai Satyanarayana Reddy, Principal & Management for provided all the facilities and support.

I express my deep sense of gratitude and thanks to all the Teaching and Non-Teaching Staff of our college who stood with me during the project and helped me to make it a successful venture.

I place highest regards to my Parents, my Friends and Well wishers who helped a lot in making the report of this project.

V. SANDHYA RANI (14881E0029).

DECLARATIONI hereby declare that this industry analysis report is titled Biscuit Industry is a genuine project work carried out by me, in MBA degree course of Jawaharlal Nehru Technology University, Hyderabad and has not been submitted to any other course or university for the award of my degree by me.

Signature of the Student

INDEXS.NO : CHAPTER PAGE NO: 1. CHAPTER-IIndustry profile INTRODUCTION HISTORY IMPACT ON INDIAN ECONOMY 2. CHAPTER-II Company profile-I INTRODUCTION HISTORY PRODUCTS & SERVICES AWARDS & ACHIEVEMENTS FINANCIAL DATA ANALYSIS 3. CHAPTER-III Company profile-II INTRODUCTION HISTORY PRODUCTS & SERVICES AWARDS & ACHIEVEMENTS FINANCIAL DATA ANALYSIS 4. CHAPTER-IVData analysis & interpretation Bibliography

BISCUIT INDUSTRYHistoryIndia Biscuits Industry came into major existence and started gaining a sound status in the bakery industry in the later part of 20th century when the urbanized society called for ready made food products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. But today it has become one of the most loved fast food products for every age group. Biscuits are always easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and West Bengal are the most industrially developed states; hold the maximum amount of consumption of biscuits. Even, the rural sector consumes around 55 % of the biscuits in the bakery products.Indian Biscuits Industry seems to be the largest among all the food industries and has a turnover of around Rs.3000 crores. Indian subcontinent is known to be the second largest manufacturer of biscuits, the first being USA. The industry is classified under two sectors: organized and unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80 % of the total bakery products in India. Biscuits today stand at a higher value and production level than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of the total production.1990In the year 1990 the total production of bakery products have risen from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes. Today Biscuits contributes to over 33 % of the total production of bakery and above 79 % of the biscuits are manufactured by the small scale sector of bakery industry comprising both factory and non-factory units in the country. The production capacity of wafer biscuits is 60 MT and the cost is Rs.56, 78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 % of the entire bakery production. Today the large scale bakery manufacturers like Cadbury, Nestle, and Brooke bond had traded in the biscuit industry but couldn't hit the market because of the local companies that produced only biscuits. Government has established The Federation of Biscuit Manufacturers of India (FBMI) which has confirmed a bright future of India Biscuits Industry in the year 1953. According to FBMI, a steady growth of 15 % per annum in the next 10 years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also surpass the target and hit the global market successfully. Biscuit Brief introductionToday the total production of biscuits in India is estimated to be around 30 lakh MT, the organized sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume and the organized sector is valued at above Rs 8000 crores. While the the biscuit industry is estimated to grow over 15-17% in the next few years. The biscuits per capita consumption in India is 2.0 kg. India is ranked 3rd after US and China amongst the global biscuits producers. The export of biscuits is approximately 17% of the annual production, the export of sweet biscuits for year 2007-08 was Rs 145.93 Cr and for year 2008-09(April-Dec) was Rs 280 Cr, the major exporting regions were Haiti, Angola, USA, Ghana, UAE. The imports are not significant amount as compared to the total consumption.The penetration of biscuits in India among the urban and rural market is 85% and 55% respectively. The annual turnover for the organized sector of the biscuit manufacturers at 2001-02 is Rs. 4,350 crores. The annual Growth showed a decline of 3.5% in 2000-01, mainly due to 100% hike in Central Excise Duty (from 9% to 16%) by the government. Production in the year 2001-02 increased very marginally by 2.75% where in 2002-03 the growth is around 3%. Government took initiatitive for the development as The Union Budget for 2003-04 granted 50% reduction in the rate of Excise Duty on Biscuit i.e. from 16% to 8%. The Federation's estimate indicates a growth of approximately 8% to 9% per year.Biscuit is always hygienically packaged nutritious snack food available at very competitive prices, volumes and different tastes. According to the NCAER analysis, biscuits are predominantly consumed by people from the lower strata of society, particularly children in both rural and urban areas with an average monthly income of Rs. 750and above.The organized biscuit manufacturing industries annual productionYear 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09Annual Production(Lakh MT) 11.00 12.54 14.29 16.14 17.14 19.5 Biscuit Market capitalization Biscuits Industry is the largest among all the food industries and has a turnover of around Rs.4350 crores. Biscuit Size of the industryThe production capacity of wafer biscuits is 60 MT and the cost is Rs.56, 78,400 with a motive power of 25 K.W. Indian biscuit industry has occupied around 55-60 % of the entire bakery production.The Indian Biscuit industry for the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries. The industry consists of two large scale manufacturers, around 50 medium scale brands and small scale units ranging up to 2500 units in the country, as at 2000-01. The unorganized sector is estimated to approximately have 30,000 small & tiny bakeries across the country.Biscuit Total contribution to the economy/ salesBiscuit industry contribute Rs 8,000 crore to the FMCG industry today, provides vast opportunity for growth, as the per capita consumption of biscuits is less than 2.1 kg in our country. India is classified under two sectors: organized and unorganized. Branded /Organized to Unbranded/Un organized market share of biscuit has been 70% for Organized sector and 30% for Unorganized sector. Apart from Big 3(Britannia, Parle, ITC) there are around 150 medium to small biscuit factory in India.Top leading biscuit Companies

Parle Britan