Dragon Biscuit Manufacturers

download Dragon Biscuit Manufacturers

of 20

  • date post

    14-Apr-2018
  • Category

    Documents

  • view

    214
  • download

    0

Embed Size (px)

Transcript of Dragon Biscuit Manufacturers

  • 7/29/2019 Dragon Biscuit Manufacturers

    1/20

  • 7/29/2019 Dragon Biscuit Manufacturers

    2/20

  • 7/29/2019 Dragon Biscuit Manufacturers

    3/20

    To become a pioneer and distinctive company in

    manufacturing and marketing bakeries, sweets, and toffee

    worldwide by fulfilling customers expectationsMission

    To be leading and forward looking food

    company committed to satisfy consumers witha delightful, healthy and hygiene product

    range.

    Vision

    Our values serve as a compass for our actionsand describe how we behave in the world.Value

  • 7/29/2019 Dragon Biscuit Manufacturers

    4/20

    Biscuit industry contribute Rs 8000 crores to theFMCG industry.

    Biscuit contributes to over 33% of totalproduction of bakery.

    Per capita biscuit consumption in India is 2.1 kgas compare to 10 kg per capita consumption inUSA, UK & Europe.

    It is classified under two sectors-

    Organised & unorganised

    Organised sector contributes 70% whileunorganised sector contributes 30% of totalmarket share of biscuit.

  • 7/29/2019 Dragon Biscuit Manufacturers

    5/20

    02

    4

    6

    8

    10

    1214

    16

    18

    ANNUAL PRODUCTION OF BISCUITS(IN LAKH

    METRIC TONNES)

    ANNUAL PRODUCTION

    OF BISCUITS(IN LAKH

    METRIC TONNES)

  • 7/29/2019 Dragon Biscuit Manufacturers

    6/20

  • 7/29/2019 Dragon Biscuit Manufacturers

    7/20

    This profile envisages the establishment of a plant for the production of

    biscuit with a capacity of 1,500 tonnes per annum.

    The present demand for the proposed product is estimated at 14,798 tonnes

    per annum. The demand is expected to reach at 20,141 tonnes by the year

    2020.

    The plant will create employment opportunities for 150 persons.

    The total investment requirement is estimated at about $9,920,000.

    The project is financially viable with an internal rate of return (IRR) of 15 %

    and a net present value (NPV) of $2 million discounted at 8.5%.

  • 7/29/2019 Dragon Biscuit Manufacturers

    8/20

    Source of fund Participation (%)

    Promoters 40%

    Shareholders funds 35%

    10% Debentures 10%

    Bank loans 15%

  • 7/29/2019 Dragon Biscuit Manufacturers

    9/20

    Description Cost

    Machinary and Equipment

    Factory and Office Building

    Working Capital

    Auxillary Items

    Pre-Operational Expenses

    Gross Total

    4,900,000

    2,000,000

    2,000,000

    7,20,000

    3,00,000

    9,920,000

  • 7/29/2019 Dragon Biscuit Manufacturers

    10/20

  • 7/29/2019 Dragon Biscuit Manufacturers

    11/20

  • 7/29/2019 Dragon Biscuit Manufacturers

    12/20

    CrackersButter PuffMarvellSaltish

    Plain Sweet BiscuitsGluco

    MarieSooperWhole Wheat Slice

    NutsPeanut Pik

    Peanut Pista Cream Biscuits

    Choco Vanila SandwichChocolate SandwichLemon Sandwich

  • 7/29/2019 Dragon Biscuit Manufacturers

    13/20

    High competitionAmong existing players

    Porters Five Force model

    Suppliers`

    Basic commodities :

    Wheat, Sugar.Increasing price

    Customer

    Many biscuit from low

    to moderate Range, Like of bakery product

    New Entrants

    Capital Sensitive:

    Manufacturing,

    Advertising,

    Distribution network,

    SubstituteTraditional Indian

    homemade snacks,

    Bread,

    Package Snacks

    Bakery product.

    HIGH LOW

  • 7/29/2019 Dragon Biscuit Manufacturers

    14/20

  • 7/29/2019 Dragon Biscuit Manufacturers

    15/20

    Strengths - Brand building capabilities: Brand image of the company existing in the industry, every companyhas a strong brand image to consumers. Diversified product range of the industry covering al segments. The depth of distribution Low and mid price range of the products Weaknesses Dependence on retailers and grocery stores for displaying diversified

    products on shelf. Lack of technology up gradation.

  • 7/29/2019 Dragon Biscuit Manufacturers

    16/20

    Opportunities

    Indian Biscuit Manufacturers Association (IBMA) estimates annual

    growth of around 20% in next couple of years.

    The $220 Billion food industry is expected to grow to $300 Billion by

    2015.

    Per capita consumption of Biscuits in the country is only 1.8 kg as

    compared to 2.5 kg to 5.5 kg in South East Asian countries and European

    countries, and 7.5 kg in USA.

    Opportunity to further grown in Urban & Rural market; Current

    penetration levels are,

    Urban Market: 75% to 85%

    Rural Market: 50% to 65%

  • 7/29/2019 Dragon Biscuit Manufacturers

    17/20

    Threats Fluctuations in the prices of raw materials, transportation costs &

    distribution cost due to high wedges and oil prices, Emerging local bakery products.

  • 7/29/2019 Dragon Biscuit Manufacturers

    18/20

    Recruitment practices and strategies: on campus, walk-in

    Training and development: workshops, R&D.

    Dispute settlement machinery: arbitrary

    Motivation techniques: performance appraisal, incentives, internal challenges

    sessions, strategic meetings, projects handling. Competitive advantage:

    strong team spirit, diversify skills.

  • 7/29/2019 Dragon Biscuit Manufacturers

    19/20

    After liberalization several policy measure have been taken with

    regard to regulation and control ,export and import,fiscal policyexchange and interest rate control taxation , export promotion andincentives to food processing and biscuit industries.

    As per extent policy foreign direct investment up to 100% ispermitted under the automatic route in the food infrastructure likefood park , cold chain and warehousing .

    As far as food retail is concerned the FDI policy does not permitFDI into retail sector except single brand product retailing . Thispolicy is uniform for all retailing activity.

    Food processing industry is one of the growing area identified forexports. Free trade zones (FTZ)and export processing zones

    (EPZ)have been set up with all infrastructure. Sales tax on biscuit :- FBMI has urged state to fix the rate of VAT on

    biscuit at the minimum level of 4% meant for items of massconsumption because it is consumed by the different section ofsociety including the poor sections.

  • 7/29/2019 Dragon Biscuit Manufacturers

    20/20

    FBMI, Established in 1950.

    The FBMI represents the organized biscuit industry

    consisting of small scale, medium and large biscuit

    manufacturers located in all zones and all States ofthe country.

    As the apex body of the biscuit industry, the

    Federation strives to serve its members in particular

    and the biscuit industry in general.