77311430 bakery-industry-ppt

Bread making slides

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2. I N D U S T R Y
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Presented By
SUHAS M.H.
ID NO. MBAL008

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INTRODUCTION
•Abakeryisanestablishmentwhichproducesor/andsellsbread,
pastries,cakes,biscuits,cookies,etc.
•Bakingisthetechniqueofprolongedcookingoffoodbydryheat
actingbyconvections,andnotbyradiation,normallyinanoven,but
alsoinhotashes,oronhotstones.
•Itisprimarilyusedforthepreparationofbread,cakes,pastriesand
pies,tarts,quiches,andcookies.Suchitemsaresometimesreferred
toas"bakedgoods,"andaresoldatabakery.
•Apersonwhopreparesbakedgoodsasaprofessioniscalleda
Baker.

4. HISTORY
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•Inancienthistory,thefirstevidenceofbakingoccurredwhen
humanstookwildgrassgrains,soakedtheminwater,andmixed
everythingtogether,mashingitintoakindofbroth-likepaste.The
pastewascookedbypouringitontoaflat,hotrock,resultingina
bread-likesubstance.
•Later,thispastewasroastedonhotembers,whichmadebread-
makingeasier,asitcouldnowbemadeanytimefirewascreated.
•Around2500B.C.,recordsshowthattheEgyptianshadbread,
andmayhavelearnedtheprocessfromtheBabylonians.

5. TheGreekAristophanes,around400B.C.,alsorecorded
informationthatshowedthattorteswithpatternsandhoney
flansexistedinGreekcuisine.
DuringmiddleagesmostoftheLandlordswerehavingtheirown
bakery
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6. INDIAN BAKERY iNDUSTRY
TheIndianbakeryindustryisthelargestamongtheprocessed
foodindustries.ThecurrentestimatedmarketisaboutRs3,295
croreandisexpectedtocrossRs4,308croreby2012.
Atpresent,thebread&biscuitindustryaccountsfor82%ofthe
total bakery products in the country.
Atpresent,theannualproductionofbakeryproductswhich
includebread,biscuits,pastries,cakes,bunsandrusk,mostof
whichareintheunorganisedsector,isestimatedtobeinexcess
of3milliontonnes.
Theproductionofbreadandbiscuitsinthecountrybothinthe
organisedandunorganisedsectorsisestimatedtobearound2.6
milliontonnes.
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7. Of the total production of bread and biscuits, only 35% is
produced in the organised sector and the remaining is
manufactured in the unorganised sector.
Broadly, the bakery market is divided into the rural market
and the urban market. The market share is about 22.5%
(rural) and 77.5% (urban) in the country.
Further, the market can be segmented into cakes, pastries
and unpackaged biscuits. and valued at Rs136 crore and Rs
1088 crore respectively
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Per capita consumption of
1.Bread -3kg/year
2.Biscuit -1kg/year
55% of biscuit is consumed by rural area.
37% of consumption of bakery item is by people with
monthly income of Rs.750 and below.
At present 70% of total bakery products is prepared by
small and family scale units.

9. RAW MATERIALS USED IN
BAKERY
Wheat flour
Sugar and honey
Yeast
Egg
Milk and milk powder
Dry fruits
Fats
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10. Bakery Products
The market for bakery industry is valued at
Rs. 69 billion. The two major bakery products,
i.e. breads and biscuits hold for about 82 % of
the market share.
Product coverage
Bread
Biscuits
Pastries
Cakes
Buns
Confectionary products

11. SCOPE OF BAKERY
INDUSTRY
In hotel business
Biscuit industry
Bread
Retailing of bakery
Healthier bakery
Sugar free bakery
Confectionary
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•Abiscuitisasmallbakedproduct;theexactmeaningvaries
markedlyindifferentpartsoftheworld.
•Theoriginoftheword“Biscuit”isfromLatinandmeans
"cookedtwice",henceBiscottiinItalian.
•Abiscuitisahardbakedsweetorsavouryproductlikea
small,flatcake,whichinNorthAmericamaybecalleda
“cookie”or“cracker”.
HISTORY OF BISCUIT

13. IMPORTANCE
Biscuitmarketisgrowingatrateof7%perannum.
Provideemploymentopportunitytobothmenandwomen.
Theemergenceofnuclearfamilieswillseeaboominproducts,
whichhaveconvenienceandnutritionattachedtothem.
Indiaiswitnessingarevolutioninhealthyfoodsandpeopleare
conscious.
Indiaisthe2ndlargestproducerofbiscuitsafterUSA.
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•The present biscuits-bakery sector in India looks like a
battlefront.
•Therearetwoentrenchedplayersinthebiscuitsmarket-
ParleandBritanniahave85%ofthemarketshare.
•Britanniaisundoubtedly-leaderwithbrandslikeTiger,
LittleHearts,MilkBikis.
•Britannia'sTigerbrandissellinglargelyintheruralareas
whichactuallyconstitute56%ofthebiscuitmarket.Butin
theGlucosesegmentParleGisthemarketleader.
PRESENT STATUS OF BISCUIT
INDUSTRY

15. Accordingtomarketresearchin2003,Britanniabrandhas
over46percentmarketshareinthisfiercelycompetitive
marketi.e.faraboveall,&Parleenjoysa40%shareofthe
totalbiscuitmarket
Biscuitsmarketonanaveragegrewat8%perannuminthe
lastfiveyears.
Theruralpenetrationofthebrandedbiscuitssegmentis
alsosignificant.
Townswithpopulationsoflessthanalakhcontribute
significantlytotheindustry'sturnover,withsomeestimates
placingitat40%.
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16. Biscuits
The biscuit market has a total production volume of 1.1 million tonnes.
The growth drivers for the biscuit industry are focused advertising, urban
market, and new launches.
Major Players
The major players in the biscuit segment are:
Britannia
Parle
Bakeman
ITC Foods Ltd.
Surya Food and Agro Pvt. Ltd.
HLL
Priya Gold
Cremica
Dukes
Anupam
Horlicks

17. Bread

The bread market has a business volume of 1.5 million tonnes. The bread
industry has a production of approximately 27 lakhtonnes.
This segment is characterized by high level of fragmentation, and high
margin.
The major factors for growth in this segment are:
Brand loyalty
Volumes
Strong distribution networks
The major challenge faced by the organized bread sector at present is low
margins of profit.
Hike in the prices of major raw materials like sugar, vegetable oil, milk, and
wheat flour has been accounted for the industry's low margins of profit.
Major Players
The major players in the bread industry that holds about 90% of the market
share are:
Britannia
Modern Industries Ltd.

18. PRESENT STATUS
InIndiathereareabout60000differentsectorbakeryunits.
Foodprocessingindustryranks9
th
inindustrialsectorcomprisingof
bakeryinstantfoods,confectionary,dairy,softdrinksetc.
Bakeryindustryroughlyconstitute10%ofprocessedfoodindustry,of
whichbiscuitindustryconstitute60%.
TheIndianbiscuits'marketisestimatedtobe1.1milliontonnesper
annumandvaluedatoverRs50billion.
Theunorganizedsectoraccountsforover50%ofthemarket.
ThemarkethasbeengrowingataCAGRof6-7%pa.
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19. BakeryingredientsmarketisvaluedatRs500croreinthe
countryandisregisteringagrowthrateof20percent
Themarketisexpectedtodoubleinayeargoingbythe
demandforhealthyandnutritiousoptionsinbakeryfoods
easytomakeandcarry
Itgiveopportunityforyouthtoexploretheircreativity
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20. CONTD……
The per capita consumption of bread in India is 2 kgs per
annum and by far the lowest compared to Sri Lanka, which
is 8 kgsand Europe's 80 kgs.
The abysmal low consumption in India comes in because
bread has often been treated as a sick man's food and
eaten when ill.
The penetration of branded product in this segment is
quite significant, and is valued at Rs 2,500-3,000 crore.
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21. SCOPE
Changing trend.
New challenges, like healthy nutritious, tasty and fresh
products.
Diversified products like,
1. High protein products.
2. Vitaminised & Mineralized product.
3. Anti diabetic products.
4. High fiber content product.
5. Low salt product.
6. Low fat product.
Export of bakery product
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22. Chocolate Market in India -Facts
1. Chocolate market is estimated to be around 1500 crores (ACNielson)
growing at 18-20% per annum
2. Cadbury is the market leader with 72% market share
3. The per capita consumption of chocolate in India is 300 gram compared
with 1.9 kilograms in developed markets such as the United Kingdom
4. Over 70 per cent of the consumption takes place in the urban markets
5. Margins in the chocolate industry range between 10 and 20 per cent,
depending on the price point at which the product is placed

23. Cont……
6. Chocolate sales have risen by 15% in 2007 to reach 36000 tonnes according
to one estimate. Another estimate puts the figure at 25000 tonnes
7. The chocolate wafer market (Ulta Perk etc) is around 35 % of the total
chocolate market and has been growing at around 13% annually
8. As per Euromonitor study, Indian candy market is currently valued at
around USD 664 million, with about 70%, or USD 461 million, in sugar
confectionery and the remaining 30%, or USD 203 million, in chocolate
confectionery
9. Entire Celebrations range marketshare is 6.5%
10. The global chocolate market is worth $75 billion annually
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24. SWOT ANALYSIS
STRENGTHS
Plenty of men and raw material at cheep rate.
Changing consumption pattern.
Growing market.
Bakery products are tasty, nutritious readily available
and easily carried.
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25. WEAKNESS
Lack of financial support.
High cost of equipment.
Lack of availability of trained persons.
Low shelf life of bakery products.
Irregularity in power supply.
Very less organized bakery firm at big level so less business
professional .
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26. OPPORTUNITY
Vast market.
Provide opportunity for self entrepreneurship.
A need of a national level company in bakery sector.
High value for attractive and quality package.
Demand for innovative products.
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27. THREATS
Highconsumptionofbakeryproductsleadstoobesityand
otherhealthproblem.
Mostofpurevegetariansdon’tconsumebakeryitem.
Lotoflossduetoinsectsandlowshelflife.
FDIinbakerysectormayaffactdomesticplayerslike
puratosfrombelgiumisalreadyenteredinindianbakery
industry.
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28. MARKETING
Determinethequalityofproduct.
Modificationofproductbasedonconsumerpreference.
Createspecificproductforspecificendusers,i.e.
segmentation.
Makeproducteasilyavailabletoallendusers.
Quicktransportationoffinalproductbecausebakeryis
perishableproduct.
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29. The Indian bakery market
The cake market in India is valued at Rs 1,088 crore for
2008, and is growing at a CAGR of 10 per cent.
The pastries market in the country is valued at Rs 136
crore for 2008, and it is also growing at a CAGR of 10
per cent.
The unpackaged biscuits market is valued at Rs 2,071
crore for the current year, and is growing at a CAGR of
5 per cent.
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30. The Indian bakery market
The Indian bakery market is valued at Rs 3,295 crore and is
expected to reach Rs 4,308 crore by 2012.
The market is split into the rural market, which is 22.5 per
cent, and the urban market, which is 77.5 per cent, of the
total market.
The bakery market can be segmented into cakes, pastries
and unpackaged biscuits.
Source-Buinessstandard news paper

31. MARKET
STRUCTURE
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Market
Segmentation(biscuit)
Segment Share (%)
Organized 50
Informal 50
Lead Players and Alliances
Company Share (%)
Britannia Denone,
France
46
Parle Biscuits 40
Bakeman's 3.5
Market Segmentation (bread)
Segment Share (%)
Organized 15
Informal 85
Source-Society of Indian Bakers

32. GROWTH RATE
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Market Growth Rates (bakery)
1990-91 -1996-97 5.4%
1996-97 -2001-02 7.9%
2001-02 -2006-07 6.9%
Source-Bakers Association of India

33. PROSPECTS
Increasing dependence on bakery products.
Use of sophisticated and modern machineries which
increases bakery efficiency.
High quality packaging material increases shelf life of
product.
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34. CASE STUDY: MONGINIS BAKERY,
KOLKATA
Introduction:-ArnavBasuwiththehelpofKhorakiwala
familyasmonginisfoodsltdatKolkatain1980.
AtthattimenamemonginiswasunknowntoKolkata.
Monginisstartsbecomingpopularafterstartingbakeryin
1991.
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35. FEATURES OF
MONGINIS BAKERY
TurnoverraisedfromINR5.3min1992toINR150min
2003.
Importbestqualitymachinesfrommanycountry.
Launchingofinternationalqualitychocolatesandsomany
recipesofbakeryveryfirsttimeinKolkata.
Keysuccessformonginisishighlyeffectivefranchisee
systemasmorethan100franchiseeoutletsonlyinKolkata.
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36. Monginismainly targeted middle and upper middle class
of Kolkata as it offers fresh , quality produce at affordable
price.
Innovations :-As monginiswas producing salty snacks in
spite of others were producing sweet bakery products
mainly.
Introduction of new product :-Like chicken salad roll,
chicken wrap & Vegetable Manchurian.
Monginisoutlets contains reheating and air condition
facilities
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37. KEY TO SUCCESS
OF MONGINIS
Good franchisee management.
Packed cakes.
Return management.
Pricing.
Promotions.
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38. FRANCHISEE
MANAGEMENT
Sightselection:-Areashouldbeatleast200squareft&frontage
beof10feet.
Hasstandardformatofdécor,colors,displaycounter,ac,freeze
,microwaveovenetc.
Commissionpaidongoodsalesbe14%.
Constantmonitoringofstores.
Paymentsofbillsatalternateday.
Distributiontimelyonceortwiceaday.

39. Prominent Food and Bakery Associations in India
Indian Stainless Steel
Development Association
Fragrances and Flavours
Association of India(FAFAI)
All India FoodProcessors
Association
Poultry Processors Association
All India Distillers Association
Association Of Food Scientists &
Technologies
National Association of Bakery
Industry
Federation of Biscuit
Manufacturers Association
TheSoyabeanProcessors
Association of India
The Seafood Exporters
Association of India
Indian Institute of Packaging
Oil Technologists Association of
India (Western Zone)
Indian Biscuits Manufacturers
Association
Confederation of Indian Food
Trade and Industry
Federation of Hotel
andRestaurantAssociation of
India
IndianConfectioneryManufact
urers Association
Indian Dairy Association
Indian Sugar Mills Association
All India Bread Manufacturers
Association ltd
Bakers Association of India
Roller Flour Millers Federation
of India
All India Grain Exporter
Association
Wheat Product Promotion
Society
Society of Indian Bakers

40. References
Indian Biscuits Manufacturers Association
All India Bread Manufacturers Association ltd
All India FoodProcessors Association
Society of Indian Bakers
IndianConfectioneryManufacturers Association
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41. CONCLUSSION
Duetochangingconsumptionpatternthereislotofscope
forbakeryindustry.
Duetomodernization,westernizationand
industrializationdemandforbakeryhasincreased.
Goodopportunitytoemergeasanationalbrand.
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