INDIAN BISCUIT INDUSTRY

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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.6/30/2010

List of players in the industry Britannia Parle ITC foods Surya Foods Others (Dukes, Anupam, Horlicks) Regional players

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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

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SWOT ANALISYSStrengths 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

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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

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PORTERS 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

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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.

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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

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PESTEL ANALISYSPolitical 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

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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%

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CRITICAL SUCCESS FACTORS Indias 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

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CONCLUSIONS

Indian biscuit Industry will have a continuous growth Small companies are able to make profits

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THANK YOU

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