Dreaming for bright career is the first priority of a young student and rightly so; you have taken a right decision to do MBA but you are expected to know and understand or at least have some idea of different markets.
This general awareness article on ‘Indian Biscuit Industry’ will help you in WAT/Essay/GD and PI also.
Read: Biscuit Industry in India
There is a significant market of biscuit in India. The industry has flourished in India immensely over the years and is still growing remarkably. The 12,000 crores biscuit industry provides an enormous opportunity for growth in India.
The biscuit industry has emerged in later parts of the 20th century and now it has become the most loved snack enjoyed by every age group. The variations in the biscuits like cholesterol free, healthy, tasty and easiness to carry at a reasonable cost has attracted lots of people making the industry grow at a larger pace.
Consumers even prefer higher value products and low-cost branded products over unbranded items as their disposable income has become high. And keeping all this points in view, the manufactures are providing the best products at lower costs.
The industry has several players, the top most being the Britannia and Parle which accounts for 70% of the industry’s volume and revenues. Other companies dealing in this sector include Sara, Heinz, Excelsia (Nestle), SmithKline Consumer, United Biscuits, Brakeman’s, Champion, Kwality and Priya.
Source: Business today
The regulation of Biscuit industry in India is done by FBMI (Federation of biscuit Manufacture of India) which is the apex body for the industry. IBMA (Indian Biscuits Manufacturer Association) is also a body regulating and promoting biscuit industry in India. Their main objective is to protect the interests and development with a systematic and hygienic Biscuit manufacturing Industry in India.
Biscuits have a huge demand all over India with the maximum consumption in Maharashtra and West Bengal. The biscuits even have a substantial amount of exports. After 2005, India is the third largest producer of biscuits in the world. In the recent past, the growth in the industry has been stagnant.
The volume of biscuits has increased to 12-15% over the last few years, in last year it has fallen to single digit which is not a good sign. There are many factors which have slowed down the rates. These include the price hikes due to inflation, late monsoon rains, unacceptable expensive and exposure of new biscuits in rural market are the few reasons. The rural grew faster than urban areas in last few years but the demands of rural population in the last two year have slowed drastically.
To sustain in the field with future growth prospects many players are trying to innovate various options. Glaxo SmithKline is promoting Horlicks. It is trying to make it stand for various breakfast products & biscuits. the other companies like ITC tops in cream biscuits while Britannia tie up with Kotak results into benefit from improvements in its manufacturing efficiency and distribution and better profitability. Thus, companies are taking prominent steps to growth and become the industry leaders.
If monsoon rains do not pick up soon the rural spending would be much on the items like biscuits and so the demand may still fall. And if the inflation grows not keeping up the pace with the income of the marginal consumer, it will again slow down the demand. But if the environment and the economic factors remain stable the biscuit industry will show potential growth in the future years. The Indian market is still largely un-penetrated and so there is a scope for growth. It will gear up aggressively in the future years.