DESCRIPTION OF BUSINESS

Overview of Indian confectionery industry

Indian confectionery market mirrors its global counterpart with a wellentrenched presence of multinational companies, wide portfolio of
brands,
frequent
product
launches, intense
marketing and advertisement
campaigns.
Consumption
of
confectionery products is not restricted to children anymore. Adults
have opened up to consumption of confectionery in a big way. Several
companies are launching confectionery products targeting adults.
Confectionery in India is broadly classified as chocolate-based
confectionery, sugar based confectionery and gum based
confectionery. The categories are further classified as follows

picture-1

Confectionery sector in India is well consolidated with top players

holding a major share of the market; local subsidiaries of global
confectioners are among the leading players in India. Large players
have a significant presence in chocolate confectionery market while
smaller players primarily operate at a regional level and have sizeable
base in sugar-based confectionery market
The Indian confectionery market was valued at around INR 95
billion in 2012-13, growing at an annual rate of 10-12% since 2009-10.
Of the total market, sugar confectionery holds a market share
of around 46% and the rest by chocolate and gum confectionery
segments. Owing to lower unit price than chocolate confectioneries,
sugar confectionery segment has registered higher volume sales over
the recent years traditionally, small domestic players catering largely
to a regional market accounted for a major share of the sugar
confectionery market. However, in the recent years, multinational
players have entered this market and have introduced quality
products. Chocolate consumption is mainly centered around semiurban and urban areas due to foreign exposure, rising disposable
income and consumers impulse buying. Players have identified agespecific niche market segments within the chocolate confectionery
market and are undertaking intense advertising campaign to ensure
effective brand communication and positioning.
The confectionary market in India has a well-entrenched presence of
multinational
players
such
as Mondelez
(formerly
Cadbury
India), Nestle, Perfetti Van Melle, Mars India and Lotte as well as large
domestic players such as Amul, Parle, ITC, Ravalgon and Candico.
Multinational companies such as Ferrerro, Hersheys and Lindt have a
strong presence in the premium chocolate market. In the chocolate
confectionery segment, Cadbury holds a share of around 65-70%,
followed by Nestle at around 20%.

Top ten-confectionery industry in India

Lotte India Co. Ltd.

Nestle India Ltd
Candico India Ltd
Lotus Chocolate Company Ltd.
Campco Ltd.
Candicoindia

Sampre Nutrition
WRIGLEY INDIA
Perfetti Van Melle India Pvt. Ltd
Parle products pvt.ltd

Overview of Canadian confectionery industry

The Canadian confectionery industry includes establishments engaged

in the manufacture of chocolate and non-chocolate confectionery.
Chocolates and chocolate confectionery, including chocolate covered
candy and nuts, may be made from cacao beans or purchased
chocolate. Non-chocolate confectionery includes candy, candied fruit,
chewing gum, cough drops and lozenges, marshmallows, granola bars,
and nuts.

Confectionery Industry, a manufacturing sector made up of companies

primarily involved in processing candies, chocolate and cocoa
products and chewing gum. Confectionery manufacturing started to
emerge as an important industry in the late 1800s.

One of the earliest commercial operations, McCormick's Ltd, was

established in London, Ont, in 1857. Robertson Brothers Ltd was in the
candy business in Toronto by 1864, and Ganong Brothers opened in St
Stephen, NB, in 1873. In 1873 Moirs Ltd, originally a bakery,
commenced candy production in Halifax, NS Robert Watson Co started
in Toronto in 1874, and by 1879, Viau Lte was in production in
Montral.

In Toronto, Patterson Candy Co was established in 1888, and the

Cowan Co in 1890. Confectionery production greatly increased in
Canada in the early 1900s with the establishment of several major
producers, including William Neilson Ltd in Toronto in 1908, Willard's
Chocolates Ltd, Toronto, 1914, and Fry-Cadbury Ltd, Montral, 1920.
Walter M. Lowney Co of Montral and Walter Baker Co of Canada,
Toronto, also became established during this period. In these formative
years, the industry was concentrated in Eastern Canada, a situation
that prevails today, although in Western Canada, a number of smaller
manufacturers emerged during this period and new companies are still
appearing.

During the past 2 decades, a considerable amount of plant

consolidation has taken place. In 1961, the industry had 194 plants in
production. By the end of the century, Statistics Canada reported 94
plants in production: NS had four; NB, two; Queue, 29, Not, 41; Man, 3;
Sask, 0; Alta, 2; and BC, 13. As is the case in most other food sectors,
the major cause of the reduction has been the steady phasing out of
smaller, obsolete production facilities and their replacement with

fewer, larger, highly efficient operations.

The confectionery industry is unique among segments of confectionary

manufacturing system in that it is dependent on foreign supply for two
of its primary ingredients: sugar and cocoa. Unfortunately, these
commodities are subject to rapidly changing prices in spite of accords
such as the International Sugar Agreement. This factor, in turn, can
seriously affect the industry's sales volumes and profit margins. Any
sharp increase in the international price of raw sugarcane or cocoa
beans is quickly translated into increased production costs and higher
consumer prices; a downturn in production volumes usually follows.

Steadily increasing provincial sales taxes are another indirect cost that
can have a negative effect on industry sales. However, over the long
term, production volumes in most categories have shown slow, steady
growth. For example, in 1973 the industry produced 68 895 t of all
types of chocolate products, including chocolate bars, boxed
chocolates, seasonal novelties and chocolate products sold in bulk and
other forms. By 1984 the production of chocolate confectionery had
increased to 90 003 t. Similarly, in 1971, 16 772 t of chewing-gum
products came off the industry's production lines; by 1984 this amount
had increased to 19 565 t. Trends in sugar confectionery, which
includes hard candy, pan goods (hard and soft) and similar products,
fluctuate. In 1971 the industry produced 49 114 t of sugar
confectionery; in 1984 the volume was 52 264

Importation of hard-candy products affects the trend. The UK has

always been a major Canadian supplier of high-quality candies, but
imports are increasing from S American countries, notably Brazil and
Argentina.

Statistics Canada reported that in 1997 the industry made shipments

valued at $1.48 billion. The Confectionery Manufacturers Association of
Canada, Toronto, represents the industry.

In 2013, 15.8% of Canadian confectionery manufacturers were located

in British Columbia, which ranks third in chocolate and sugar
confectionery exporting of Canadian provinces behind Ontario and
Quebec (who together account for 95% of exports).

Although British Columbia exports make up just a small portion of

Canadas chocolate exports, the industry has experienced significant
growth in recent yearsexports more than doubled between 2008 and
2011 when they reached $54 million. British Columbia exports made
up 4% of the countrys $455 million in total exports of sugar
confectionery (Agriculture and Agri-Foods Canada). Sugar sales are
expected to decline slightly before leveling off in 2016.

Employment in the Canadian confectionery manufacturing industry

has decreased by 4.9% annually since 2004(link is external), when
14,627 workers were employed to 9,827 in 2012. However, revenues
are on the rise. Net revenues among manufacturers of chocolate

confectionery made from cacao beans have increased by 20.7% per

year on average (link is external) reaching in $258.2 million 2012.
Canadian confectionery exports totaled over $1.3 billion dollars in
2010(link is external). The United States is Canadas largest market
(link is external), accounting for almost 96% over chocolate and sugar
confectionery exports. Other major markets include Mexico, Japan, and
Germany.

Top ten confectionery market in Canada

Graph-1

Top global confectionery companies showcase

picture-3

A Recent Candy Revolution

Sugar, sugar, sugar. Its certainly on the minds of most Canadians
when they reach for a snack or a treat. Traditional candy obviously
contains a lot of it, which is driving companies to rethink their
formulations. Consumers are increasingly opting for healthy
indulgence optionsand industry participants strived in 2014 to bring
in product improvement and innovation to meet the demand in this
regard, says Frank Jiang, Euromonitors Canadian confectionary
research lead.
There are two main natural sweeteners that are making steady
progress in replacing sugar in many candy products. One of these is
xylitol, and its use in confections has soared over the past five years,
according to Xylitol Canada vice-president Matt Willer. Xylitol is a
natural sugar substitute derived from fruits and vegetables. It has the
same exact sweetness, look and feel as table sugar, but with 40 per
cent fewer calories. Its safe for diabetics and provides substantial oral
health benefits.
Today you have people avoiding sugar and avoiding chemical
sweeteners, so use of natural sugar substitutes, including xylitol, have
skyrocketed and will continue to do so, Willer explains. Xylitol, being
the easiest to use and the cavity preventer, has lent itself to become
one of the more popular in candy. Xylitol is now found in major candy
brands such as Ice Breakers, Mentos, Ice Chips and Trident. The candy
lineup of Xylitol Canadas brand Xyla includes lollipops, gum, hard
candy, mints and taffy (the company also offers jam, condiments and
more), available at Whole Foods, Sobeys, London Drugs and many
other retail outlets.
Increasing xylitol candy sales are challenged by the fact that right now
the cost is higher and the product availability is lower compared to
traditional products. However, Willer notes that awareness and
acceptance of xylitol continues to reach all-time highs, and that this is
in part due to support from the dental community. Xylitol has received
positive support in the Journal Of The American Dental Association and
from the Harvard School of Dental Medicine. In addition, researchers
state in a recent paper published in the Journal Of The American
Geriatrics Society that xylitol gum can provide a real clinical benefit
in terms of several oral health issues that commonly affect many
seniors. Xylitol reverses the destructive effects of sugar on oral health.
It cannot be converted to acids by oral bacteria, and it also generates
an alkaline environment that inhibits plaque formation. With proper
use, xylitol actually stops the tooth decay process, and long-term use
increases the buffering capacity and protective factors in saliva. It even
has the ability to enhance re-mineralization of the enamel.
Extracts from the stevia plant are the other natural sweetener making
substantial inroads into the candy category worldwide. The

International Stevia Council states that hundreds of new products are

being launched each year made with stevia extracts, across a wide
range of countries. The European Stevia Association explains on its
website that stevioside (a stevia extract) is extremely heat stable, and
is compatible with dairy products and with acidic fruits such as berries,
oranges and pineapples. Moreover, it is pH stable, non-fermentable
and does not darken upon cooking, and therefore it has a wide range of
applications in food products.
Stevia and xylitol can also be found in chocolate, with stevia bars
offered by companies such as Dante Confections of Massachusetts,
Coco Polo of New Jersey and Lilys Sweets in Seattle, Wash. Xylitol
chocolate is made by such firms as Michigans Dr. Johns and Chocolistic
in Connecticut.
For the big chocolate players, however, the present focus seems to be
the use of more natural ingredients rather than sugar replacement.
Nestl has already removed artificial colours and flavours from some of
its most popular products such as Smarties and Aero bars, and is
committed to removing these ingredients from the few products that
contain them by the end of 2016, if not sooner, says Ryan Denys,
Marketing Leader, Confectionery, Nestl Canada. Nestl USA, he
adds, is committed to removing artificial flavours and FDA-certified
colours like Red 40 and Yellow 5, from all of its chocolate candy
products. For example, in the Butterfinger bar, these two artificial
colours will be replaced by annatto, made from the seeds of the
achiote tree.
Across North America, the Hershey Company is also striving to use only
natural content in its chocolate, such as roasted almonds and cocoa
beans. This simple ingredients effort is one of three guiding
principles that the company began implementing in 2013. Transitioning
more products to a simplified ingredient list will continue this year,
says Brandy Woolford, associate manager of Brand Public Relations
and Consumer Engagement, with treats such as Hersheys Kisses Milk
Chocolates. The other two Hershey guiding principles are
transparency and thoughtful and responsible sourcing, for
example, moving to 100-per-cent certified and sustainable cocoa.
Mondelez, which makes Cadbury chocolate, has stated that it is
working to reduce saturated fat content in some of its offerings. The
firm has also shown interest in going natural through its recent
purchase of Illinois-based Enjoy Life Foods, which has marketed a
variety of free-from baked goods and confections in Canada since
2005. They are found in major grocery store chains in the gluten-free
section. In 2014, the companys overall sales of chocolate bars
increased by a whopping 67 per cent over 2013, and Chocolate Morsels
by 72 per cent, due to increased distribution but also due to what chief

marketing officer Joel Warady identifies as a demand for better-for-you

snacking. We believe products are better for you if they are free-from
many unhealthy things, he says. We are free-from gluten, the top 12
Canadian allergens, GMO and all artificial ingredients.
With regard to soy, Warady says recent studies have shown some
potential health issues in people who consume a lot of it. Add to that
the fact that in America, 90 per cent of all soy is GMO and you find that
soy has become an ingredient that people look to remove from
products, he says. Most chocolate in the market contains soy lecithin
as an emulsifier; we produce our chocolate without any soy, which
makes for a cleaner ingredient deck, and a more pure chocolate
product. Warady admits it is significantly more expensive to create
chocolate without the use of soy, but notes that customers are willing
to pay more for premium offerings. When people taste our Chocolate
Morsels or bars, they say it tastes like real chocolate, he explains.
They eat our Chocolate Morsels right out of the bag, so while theyre
now in the baking aisle in a large bag, we see an opportunity to have
them in the snack aisle in smaller-sized bags. Enjoy Life Foods already
sells their Chocolate Morsels to some major food brands for use as an
ingredient, and says it is positioned to increase this market
substantially in 2015.
In addition to seeing more natural ingredients and sugar substitutes,
candy consumers should also expect more health-boosting
additives. In particular, Jiang notes, medicated confectionery and
sugar confectionery fortified with medical ingredients such as amino
acids and vitamins are likely to become more available in candy isles.
Willer at Xylitol Canada agrees. You will see more value-added candy,
you will see more natural candy, and you will see more functional
candy, he says. The good news is xylitol can be used in any of these
categories. Enjoy Life Foods is also interested in functional ingredients
such as antioxidants and protein.
Whatever may come in the candy aisle, expect it to be better than
ever for you and, without a doubt, to still be sweet.

About selected company

History
Parle Products Company was founded in 1929 in British India. It was
owned by the Chauhan family of Vile Parle, Mumbai. Parle began
manufacturing biscuits in 1939. In 1947, when India became
independent, the company launched an ad campaign, showcasing its
Gluco biscuits as an Indian alternative to the British biscuits. The Parle
brand became well known in India following the success of products
such as the Parle-G biscuits and the Thums Up soft drink.
The original Parle Company was split into three separate companies,
owned by the different factions of the original Chauhan family
Parle Products:Led by Vijay, Sharad and Raj Chauhan
(Owner of the brands Parle-G, Melody, Mango Bite, Poppins, Kismi
toffee bar, Monaco and KrackJack)
Picture-3

Parle Agro: - led by PrakashChauhan and his daughters, Alisha and

Nadia
(Owner of the brands such as Frooti and Appy)
Picture-3

Parle Bisleri: - led by Ramesh Chauhan

Picture-4

All three companies continue to use the family trademark name

"Parle". The original Parle group was amicably segregated into three
non-competing businesses. However, a dispute over the use of "Parle"
brand arose, when Parle Agro diversified into the confectionery
business, thus becoming a competitor to Parle Products. In February
2008, Parle Products sued Parle Agro for using the brand Parle for
competing confectionery products. Later, Parle Agro launched its
confectionery products under a new design, which did not include the
Parle brand name.[4] In 2009, the Bombay High Court ruled that Parle
Agro could sell its confectionery brands under the brand name "Parle"
or "Parle Confi" on condition that it clearly specifies that its products
belong to a separate company, which has no relationship with Parle
Products.

About selected plant of Parle products pvt.ltd

Company address:Behind Shekhpir Kukma,
Near Village Ler Kukma,
Station Road, Station Road,
Bhuj, Gujarat 370001
Phone: 02832 271 097
Picture-6

Various Brands
Biscuits
Parle-G, KrackJack, Monaco, Kreams, Golden Arcs, Parle Marie, Milk
Shakti, Parle Hide & Seek Bourbon, Parle Hide & Seek Fab, Top, Parle
Gold Star, Happy Happy, 20-20, simply good, Namkeen parle magix,
coconut, cheeselings, Parle-G Gold

Sweet confectionery
Melody, Mango Bite, Poppins, 2 in 1 Eclairs, Mazelo, Kismi Toffee Bar,
London Derry, Kaccha Mango Bite

Picture-7

Snacks
Monaco Smart Chips, Parle's Wafers, Fulltoss, Parle Namkeens, Parle
rusk, Parle Cake
Since they have been entered at the food competition of Monde
Selection in 1971, the brands have received consistently gold and
silver Quality Awards at the World Quality Selections.
Infrastructure

Apart from the original factory in Mumbai,

Parle has manufacturing facilities at Neemrana (Rajasthan),
Bangalore (Karnataka),
Kutch (Gujarat),
Khopoli (Maharashtra) and
Bahadurgarh (Haryana).
Bahadurgarh, Haryana is the largest manufacturing plant of Parle
in India. It also has several manufacturing units on contract

Available Anywhere
Today, the great strength of Parle Products is the extremely
widespread distribution network. Even at the remotest places, you can
buy Parle biscuits and sweets from the local grocer. It has taken years
to create this extensive network. Parles sales force started with one
sales clerk in Bombay and some agents in few other cities. Gradually,
Parle Products expanded. Soon sweets and biscuits were being sent by
rail to Calcutta, Delhi, Karachi, Madras and other major cities. As
production increased, distribution was amplified. Full time sales clerks
were appointed in different areas. Currently, Parle Products has over
33, 00,000 distribution outlets.
Parle Products fame and familiarity is undeniable. Considering its
extensive reach, the brand Parle is known and recognized by

everyone. Over the years, Parles sweets and biscuits have become a
household name. From kids to adults, everyone loves and cherishes
these treats. It gives us great pleasure to see our consumers enjoy and
embrace Parle products on daily basis. Our confectioners and chefs
have the utmost authority at Parle. Had it not been so, the beginning
of
Parle
would
have
been
quite
different.
In 1929, a small company by the name of Parle products emerged in
British dominated India. The goal was to spread joy and cheer to
children and adults alike, all over the country with its sweets and
candies. Although, the company knew that it would not be an easy
task, they decided to take the brave step. A small factory was set up in
the suburbs of Mumbai to manufacture confectionery products. A
decade later, this factory was upgraded to manufacture biscuits as
well. Since then, the Parle name has spread in all directions and has
won international fame. Parle has been sweetening the lives of people
all
over
India
and
abroad.
Apart from the factories in Mumbai and Bangalore, Parle also has
factories in Bahadurgarh, Haryana and Neemrana, Rajasthan. These
are the largest biscuit and confectionery plants in the country.
Additionally, Parle Products also has 10 manufacturing units and 75
manufacturing
units
on
contract.

Milestones
1929: The first year of operation, our only assets were hard work
and hope.
1939: Ten years of determined effort brought results. Things
began to take shape. In addition, we tried even harder.
1949: The formative years were over. We had come of age.
1974:Here was the first evidence of Parle as it is today

Quality as priority
Hygiene is the precursor to every process at Parle. From husking the
wheat and melting the sugar to delivering the final products to
supermarkets and store shelves nationwide, care is taken at every
step to ensure the best product of long-lasting freshness. Every batch
of biscuits, confectioneries & snacks are thoroughly checked by expert
staff, using the most modern equipment. This ensures consistent and
perfect quality across the nation and abroad.
Concentrating on consumer tastes and preferences, the Parle brand
has grown from strength to strength ever since its inception. The
factories at Bahadurgarh, Haryana and Neemrana, Rajasthan are the
largest biscuit and confectionery plants in the country. The factory in
Mumbai was the first to be set up, followed soon by the one in
Bangalore, Karnataka. Parle also has 10 manufacturing units for
biscuits and 75 manufacturing units for confectioneries on contract.

Market analysis of Parle

The confectionery industry of India, which was ranked 25th in the world
in 2009, has now emerged as one of the largest and well-developed
food processing sectors of the country. The credit goes to liberalization
along with growing Indian economy, which has led several
multinational companies to invest in Indias confectionery market,
further changing the face of this industry.
According to our new research report Indian Confectionery Market
Analysis, the Indian confectionery market is going through rapid
changes in terms of trends and consumer behavior pattern. The
industry is being benefitted from the countrys economic boom, and
growth in consumer spending. This higher consumer spending is also
driven by the new found mall culture and changing lifestyle.
Besides, the entry of various multinational companies in the Indian
confectionery market has not only increased the competition but also
the per-capita consumption, by launching new products at affordable
prices, and creating awareness among the buyers through
advertisements and promotional campaigns. During the research, we
found that emerging trend of gifting confectionery products and
untapped rural market are among the key factors that are expected to
fuel growth in Indian confectionery market in the near future. Backed
by these factors, the Indian confectionery market is expected to grow
at a CAGR of more than 18% during 2012-2015.
The confectionery market of India is divided into three segments:
chocolate, sugar confectionery and gum market, which is further
divided into sub-segments. Our team of domain experts studied the
confectionery market overall, segment wise and sub-segment wise,
and provided market forecast (in terms of volume and value both) till
2015. Among all the sub-segments of Indian confectionery market,
chewing gum market is expected to grow at the fastest rate, by value,
in the coming years.
It has been observed that various domestic and multinational
companies are gearing up for gaining profit from the growing
confectionery industry of India. Our report provides market share of the
major companies in chocolate and gum market, and competitive
landscape of the Indian confectionery industry, which includes

business overview, product portfolio and recent company activities.

The report, which has been designed to understand the Indian
confectionery market comprehensively, also analyzed the major
industry drivers, along with the challenges hindering the growth of this
industry. This way, the report provides inclusive and in-depth analysis
of Indian confectionery market, which will prove decisive for the
clients, and help them take sound investment decisions.
Indias confectionery market is expected to grow by almost threequarters in four years as the burgeoning middle-class consumes more
gums and jellies, and chocolate still dominates. The market for
confectionery in India was worth close to US$1.3bn in 2013 and is
expected to grow by 71% to reach US$2.2 billion in 2018.
Economic growth and development has resulted in rising disposable
incomes, especially among the middle-class. According to research
specialist Canadian, this demographic account for 45% of overall
confectionery consumption in the country, and more than half of the
consumed confectionery is gum.

A luxury for the middle-class

In India, gum is seen as a luxury item, with branded products
predominantly available in urban areas, said Safwan Kotwal, analyst
at Canadian.
This is especially true for gum that provides fresh and minty breath,
as it portrays a professional and well-groomed image that is becoming
more vital to success in the Indian workplace."
Because of Indias largely hot climate, consumers often prefer gums
and jellies to chocolate, especially in the summer months. Kotwal
found that sugar confectionery and gum will outsell chocolate in
volume terms, with gum expected to see an increase of 64% in volume
consumption by 2018, compared to growth of only 41% in chocolate
consumption.
Climate affects market performance
Weather plays a vital role for sugar confectionery and gum sales,
though when translated into value terms, the chocolate market still
dominates and its value should cross the US$1bn mark in 2018, Kotwal
said.
Although the report shows that gum is becoming more popular among
adults, sweets and toffees will stay firm favorites with children and
continue to be high in demand.
Kids of nine years and younger accounted for almost one-quarter of
sugar confectionery and chocolate consumption in 2013, said Kotwal.
Consumers in this age group, like in any other country, have a
preference for sweet tasting products, which will be further enhanced
as they develop their tastes and preferences for certain brands and

products.
India is home to 62 million diabetics but the figure is expected to reach
100 million by 2030, according to the Indian Public Health Foundation.
Rising dark chocolate consumption
In TechSci Researchs report, India Chocolate Market Forecast &
Opportunities, 2019, it found that per capita chocolate consumption
for the country rose from 40 grams in 2008 to 120 grams last year.
Chocolate consumption has been increasing at a gradual pace during
the last few years, with an average year on year growth rate of 18% in
volume terms, said Chechi.
Demand for dark chocolate has been especially buoyant growing at a
compound annual growth rate (CAGR) of around 17% between 200913. It now accounts for approximately 25% of the Indian chocolate
market, growing faster than both milk and white chocolate.
Young confectionery buyers
TechSci Researchs report predicted Indias chocolate market would
grow at a CAGR of 18% in value terms to 2019, largely driven by dark
and milk chocolate sales.
It said demand was primarily driven by the 19-30 year age group,
although there was increasing demand among 0-19 year olds.

SWOT ANLAYSIS
Picture-9

PRODUCT AND SERVICE

ABOUT OUR PRODUCT

INTRODUCTION
Confectionary products are in vogue since long and the market is
growing continuously. There are two distinct market segments. One is
dominated by national and international brands whereas the second
one, low cost, by the small scale sector. It is scattered throughout the
country and small units have a significant market share. There are
many products like caramel, sugar coated candies, lozenges, toffee,
chocolates etc. There are many flavors as well. The market is growing
rapidly and semi-urban and rural areas provide good scope. The project
can be set up in several states of the country. Hence, we put the new
concept of producing the vegetable candy with same technology and
market segmentation.

Product
Applications A new entrant may select some fast moving items to
begin with and then expand the product range suitably. Hence, it is
envisaged that initially there would be two products viz. candies and
toffees with various flavors and attractive packing. Pricing would also
be an important aspect. This note considers Gujarat and Diu as the

potential locations. Compliances and quality standards Compliances

with the provisions of the FPO and PFA Act are necessary. BIS has
specified quality standards vide IS 1008:1971.

Market analysis
Demand and Supply Children would be the primary target with
concentration on rural and semi-urban areas. There are some
established brands like Cadbury, Nestle, Amul, Parle etc. but they are
in urban areas and their products are costly. There is a vast market for
low priced, reasonable quality candies and toffees

Marketing Strategy
There is a competition in this market as well from local small scale
manufacturers but the market is growing continuously and with proper
marketing network and lucrative commission to the retailers, the
products can be sold. Instead of advertisement in the local media,
adequate publicity and incentives at select outlets would be beneficial.
Availability at strategic locations like schools, Angadvadi, child
gardens, retailing shops and hotels also or, in local weekly bazaars or
fairs would make the products popular.

MANUFACTURING PROCESS
It is simple and standardized. Candies are manufactured by preparing
a solution of cane sugar with vegetables to which invert sugar or
glucose syrup is added and then this mixture is cooked under vacuum
in a steam jacketed kettle. Vacuum cooking gives a light colored
product and prevents caramelisation. The product is then quickly
cooled by spreading on oiled and water cooled plates or cast iron slabs.
Flavoring and coloring materials are added and they are homogenously
mixed. Then it is cut in various sizes by frame cutters. Plain toffee and
candy is prepared from sugar, vegetables and glucose syrup with the
some preservatives. Milk and fats are added to produce superior
varieties and to impart flavor and develop a softer texture. Mixture is
cooked in open pans, then cooled as stated earlier, and then cut in the
required sizes. The Process Flow Chart is as under

Preparation of mixture
Cooking
Cooling
Flavoring and Coloring
Cutting and Packing
Capital input

Land and Building to limit initial capital expenditure and to save

implementation time, it is suggested to buy a readymade shed of
around 100 sq.mtrs, which can accommodate production facilities
leaving adequate space for storage and packing. Cost of shed is taken
as Rs.2.50 lacs.

Machinery
Rated production capacity of 80 tonnes per year considering 300
working days and working of two shifts per day would require following
equipments.
Item

Qty.

Price (Rs.)

Oil-fired Furnaces

$15,000.00

Steam-jacketed Kettle

$50,000.00

Toffee Sizing Machine

$8,000.00

Pedal press with 1 Set of dye

$10,000.00

Toffee Cutter

$2,000.00

Boiling Pans

$15,000.00

Sugar Grinder

$10,000.00

Cast Iron Plates

$20,000.00

Aluminum top tables

$30,000.00

Homogenizer

$35,000.00

Weighing scales, polythene bag, sealing -machine etc.

$15,000.00

Table -1

2,00,000

Total

Picture -10

Miscellaneous Assets
Some other assets like furniture & fixtures, SS utensils, plastic buckets,
storage racks etc. would cost Rs.35, 000/-.
Utilities
Power requirement shall be 15 HP whereas daily water requirement
shall be around 1000 liters. Furnace oil shall be required in small
quantity.

Raw and Packing Materials

Materials like vegetables, sugar, glucose, milk powder or condensed
milk, butter, flavors and food grade colors shall be available locally.
Packing materials like wrappers, polythene bags, plastic jars etc. shall
be needed for which prior arrangements must be made.

Salary structure
Particulars

Nos.

Monthly
Salary
(Rs.)

Total Monthly
Salary (Rs.)

Skilled Workers

2,500

$ 5,000.00

Semi-skilled Workers

1,750

$ 3,500.00

Helpers

1,250

$10,000.00

Salesman

2,500

$ 2,500.00

Table
-2

Total

$21,000.00

Raw material suppliers

M/s.Dhiman
Systems (India ) Ltd DSIL Group complex,
Kapurthala Road , Nakdar- 144 040 Dist. Jalandhar , Punjab
M/s.Dhiman Industries Dakhni Gate, Nakdar- 144 040 Dist.
Jalandhar , Punjab
M/s.Smiths Engineering Works
Shed No. C-1 B 139,
G.I.D.C., Vatva , Ahmedabad-382 445
M/s.Authentic Designers C-112,Sector-10,Noida-201 301(U.P)
M/s.Ghaziabad Printing & Packing Industry (P) Ltd
Opp.
Ganesh Tent House, Near DPS, Meerut Road ,Ghaziabad
M/s.Aroras Box & Cartons Pvt Ltd. 39th K.M. , Delhi-Jaipur Road
(N.H.No.8), Gurgaon-122 001(Haryana)
M/s.Jain Packaging Products 33,Sarai Pipal Thala, Behind Mangat
Ram Dal Mill, Subzi Mandi ,Azadpur, Delhi-110033
M/s.United Packaging 19/21, Shakti Nagar ,Delhi-110 007
M/s.Rajat Electronics 1309,A-5. First Floor, Pan Mandi, Sadar
Bazar,Delhi-6

Implementation schedule
Activity

Period

(in months)
Application and sanction of loan

1.5

Site selection and commencement of 0.5

civil work
Completion of civil work and placement 1.5
of
orders for machinery

0.5

Erection, installation and trial runs

Table - 4

DETAILS OF THE PROPOSED PROJECT

Building a readymade shed of around 100 sq.mtrs would cost Rs.2.50
lacs as explained earlier.
Machinery The total cost of machinery is estimated to be Rs.2.00 lacs
as spelt out earlier.
Miscellaneous Assets A provision of Rs. 35,000/- is sufficient for other
assets as discussed before.

Preliminary & Pre-operative Expenses

An amount of Rs.50,000/- would take care of pre-production expenses
like establishment and registration charges, administrative expenses,
travelling, interest during implementation etc.

Working Capital Requirements

Most of the raw materials would be available locally and hence
stocking period will not be much. Sales outlets shall be scattered and
many of them could be small shops. Hence, banks may sanction
Rs.50,000/- adhoc facility against apprppriate security and the
promoters would provide margin of Rs.25,000/-

Cost of the Project & Means of Financing

Item

Amount
(in lakhs)

Building

0.22

Machinery

2.5

Miscellaneous Assets

P&P Expenses

0.35

Contingencies @ 10% on Building 0.5

and
Plant & Machinery

0.45

Working Capital Margin

0.25

Total

6.05

Means of Finance
Promoters' Contribution

1.8

Term Loan from Bank/FI

4.25

Total

6.05

Debt Equity Ratio

2.36:1

Promoters' Contribution

30%

Table - 5

Financial assistance in the form of grant is available from the Ministry

of Food Processing Industries, Govt. of India, towards expenditure on
technical civil works and plant and machinery for eligible projects
subject to certain terms and conditions.
ECONOMIC BENEFITS
The project can create employment for 14 persons.
In addition to
supply of the domestic needs, the project will generate good revenue.
in terms of tax revenue. The establishment of such factory will have a

foreign exchange saving effect to the country by substituting the

current imports.

MARKET ANALYSIS AND MARKET PLAN

Market Segmentation
The word segmentation means divide the market into various
subgroups. It is divided into basic four areas
Geographical segmentation
Demographical segmentation
Psycho graphical segmentation
Behavioral segmentation
The confectionery market is generally for all age group. If we need to
know the market segmentation, then it is identified that. Now a days
consumer needs a unique confectionery product. Here our focus is the
childrens attraction point and the proper identification of their
demand. So in short, we follow the behavioral segmentation here.

Geographic segmentation
In our project, we decide the location at where their all kind of peoples
is moving easily including Urban and Rural area.For the consumer we
put the following three aspects
Confectionery(candy) in various colors

 Fancy look and designed product

Attractive packing
As per the child preference and their attraction

Demographic focus
Our primary focus on children`s and hence ,we decide definite age
group of children`s
3-12 years age group

Psycho graphical segmentation

We are primarily focus on children and because of our reasonable
products towards the children here, their no having high affect of this
segmentation ,so each and every one and all kind of standard of living
people buy our candy.

Behavioral segmentation
As per the child behavior and their preference according to taste, we
design our product, which is very attractive, and eye catching

4 Ps of Marketing
Product
Confectionery has a power house lineup of products. In fact, several of
our readers will be surprised when they read the different varieties and
markets where confectionery is present. A company might have 1 or 2
cash cows, but confectionery has several with the lions share of the
market. Some in the chocolate business are Dairy milk, Bourneville,
Five star, Perk, Cadbury clairs. In the biscuits segment is the premium
Oreo. In beverages, there is bourn vita, which again is one of the
leaders in milk additives. Halls as a mouth freshener as well as a
remedy during cold is used across India. Thus, with such a strong line
of products, confectionery is bound to lead the chocolates industry.

Due to its products, confectionery is the leading name of chocolates

across the world and has presence in all 7 continents.
In addition, our veg. candy have great potential to introduce new thing
into market which new for both country India and Canada. Therefore,
we have great chance to enter easily into national than after
international market.

Price
The price level of our candy is very chip so it has no problem at
anywhere at India and in Canada also

Place
Here we decide the place where through we can easily distribute our
products including urban and rural areas and the state level if we
generate and increase the demand.

Promotion
Here we use the advertising and internet media for promotion ,because
the advertising and internet is highly use and known by the all kinds of
consumer ,so, this is the way through we can easily generate our
products awareness.

COMPETITIVE ENVIRONMENT

PORTER`S FIVE FORCES MODEL :-

Picture -11
Suppliers bargaining power: low
To have a good understanding of suppliers threat let us first have a
quick look to the most used ingredients in the candy industry. There
are some of them, including sugar,vegetables,glucouse, gelatin,
aromas etc.
Sugar is a very fluctuating industry. A rise in sugar prices will
automatically impact the candy companys margin, unless they decide
to raise prices on the customer side. It is also the case for any raw
materials used in the candy industrial process. For instance sugar
prices have risen from 250$/t in 2005 to more than 400$/t in 2014,
with a peak at almost 900$/t in June 2011 ! (According to dailybourse.fr) This supplier pressure is of course one of the biggest threat
of the candy industry, this threat being even bigger in times of crisis as
companies have to deal with higher customer expectancies in terms of
prices.
There are a lot of sugar suppliers in Europe, located in developing
countries such as Caribbean Pacific Africa etc. Then, we could think
they have a low bargaining power but as we explained it before, there
are sugar prices, which prevent firms from having an efficient

negotiation with suppliers. However there are not fluctuating prices

concerning the other ingredients, and there are a lot of suppliers.
Those reasons lead to a low bargaining power. Then, candies industries
can easily switch from one supplier to another due to low switching
cost. Finally, there are not that many candy companies on the market.
There are few leaders on this market : Cadbury, Haribo,Parle Amul,LamyLutti,candico and Solinest.

Customers bargaining power: low / high

Here, we must separate B2C market from B2B one. Indeed, we are not
talking about the same customers and the same amount of candies
bought.When we look at B2C the customers bargaining power is low
because the order size is small and there are many buyers. Moreover,
their bargaining power is lower because candies consumption is not
affected by crisis. Indeed, children and grownups keep buying candies
whatever the economic situation is because candies are still related to
rewards and moments of happiness and joy that people do not want to
give away. In addition, on a B2B side, we realize this bargaining power
is high with an order size much larger, many suppliers to choose from
and many substitutes available. Then the switching cost is low.In India
and Canada both the country have fluctuating bargaining power of
buyers and just because of all kind of child probably prefer and choose
different kind of candy .so in the both of country and anywhere that is
the major problem facing by all kind of confectionery manufacturing.

Threat of substitutes
Because of the new concept of manufacturing the vegetable candy and
hence our products have no substituting issue but other than that the
already mind set may be possible to replace the our products.
Because Substitutes are always big threat with the each and every
variety of confectionery manufacturing moreover, due to the anti
obesity campaigns all over the world, we can notice a change in
candies consumption and then in candies offers. For instance with the
arrival of non-sugar, candies like Chupa Chups and their pro-dental
range or its non sugar lolly pop Cremosa Even if we still eat a lot of
candies as a reward, the healthy concern is more and more present in
people minds and most of all in adults ones. Adults will prefer nonsugar and fresh candies such as Wrigley ones: Mentos for instance.
Finally, the new tendency is the frizzing candies (+13,3% in 2011) such
as Croco Pik (Haribo) or Mini Chupa Chups Kipik. Some brands now
diversify their range of products like Chupa Chups, first specialized in
lolly-pops, now produce jelly-based candies.

Threat of new entrants: medium

We are the new entrants into the market and hence we dont have the
threats when we enter in the market,but other than that we have to
study about present condition and market situation with the present
companies market share and their brand image and,in that kind of

situation in we need to have very strong about our concept and market
dealing in domestic and than international level.On the one hand, new
entrants have an easy access to raw materials such as sugar, gelatin,
colorants and aromas. Furthermore, there is no need for special knowhow and low switching costs for buyers.On the other hand, leading
companies (Cadbury, Parle,Candico,Amul,Nestle,Haribo, Lamy-Lutti,
Solinest, Wrigley) more than 70% of the market shares. Then we can
consider the confectionery market as a concentrated one, which
means it would be hard for a new company to enter it and prosper in it.
In addition, there are strong capital requirements for starting up
production and a real difficult access to distribution channel.
Finally, we must not forget the brand image. Indeed, the leaders get a
really strong one. For instance, Haribo is known for embodying the joy
of living, the pleasure to share and the accessibility while Lutti is well
known for its craziness with its frizzing candies.

Competition between established firms: high

The competition between established firms on this market is really
high. First, as we saw it, there are strong competitors and many
substitutes. Furthermore, the market is facing strong buyers with a
high bargaining power (on the B2B side) while suppliers are weak,
which means demonstrate a low bargaining power. In addition, there is
a low degree of product differentiation. There is no major difference
between products, they use the same ingredients and components.
Then buyers may make a choice according to colors or how candies
look like more than the brand itself. Finally besides low exit barriers,
many products are at the end of the PLC (product life cycle) line which
means they are on the declining curveAll these aspect well prove the
high competition that exists between firms already established on this
market. To conclude, the candies industry is moderately attractive if we
consider the relatively low suppliers buying power and the medium
threat of new entrants. However, when we take into account the high
buyers bargaining power (on a B2B market) as well as the high threat
of substitutes and the intense degree of competition between the
leader companies, we finally understand that the candies industry is
pretty much unattractive

Import / export policies in Canada and

Indian

Import-Export norms

Foreign Trade (Development & Regulation) Act, 1992

Legal Framework of Foreign Trade Policy 11
Foreign Trade (Regulation) Rules, 1993
Hand Book on Foreign Trade Policy and Guide to Export & Import
12
Foreign Trade (Exemption from application of Rules) Order, 1993

Required documents
Export procedure describes the documents required for exporting from
India. Special documents may be required depending on the type of
product or destination. Certain export products may require a quality
control inspection certificate from the Export Inspection Agency. Some
food and pharmaceutical product may require a health or sanitary
certificate for export. Shipping Bill/ Bill of Export is the main document
required by the Customs Authority for allowing shipment. Usually the
Shipping Bill is of four types and the major distinction lies with regard

to the goods being subject to certain conditions, which are mentioned

below:
Export duty/ cess
Free of duty/ cess
Entitlement of duty drawback
Entitlement of credit of duty under DEPB Scheme
Re-export of imported goods

Foreign market entry

The decision of how to enter a foreign market can have a

significant impact on the results. Expansion into foreign markets

can be achieved via the following four mechanisms:
Exporting
Licensing
Joint Venture
Direct Investment

Exporting
Exporting is the marketing and direct sale of domestically-produced
goods in another country. Exporting is a traditional and wellestablished method of reaching foreign markets. Since exporting does
not require that the goods be produced in the target country, no
investment in foreign production facilities is required. Most of the costs
associated with exporting take the form of marketing expenses.
Exporting commonly requires coordination among four players:
Exporter
Importer
Transport provider
Government

Licensing
Licensing essentially permits a company in the target country to use
the property of the licensor. Such property usually is intangible, such
as trademarks, patents, and production techniques. The licensee pays
a fee in exchange for the rights to use the intangible property and
possibly for technical assistance.
Because little investment on the part of the licensor is required,
licensing has the potential to provide a very large ROI. However,
because the licensee produces and markets the product, potential

returns from manufacturing and marketing activities may be lost.

Joint Venture
There are five common objectives in a joint venture: market entry,
risk/reward sharing, technology sharing and joint product development,
and conforming to government regulations. Other benefits include
political connections and distribution channel access that may depend
on relationships. Such alliances often are favorable when:
the partners' strategic goals converge while their competitive
goals diverge;
the partners' size, market power, and resources are small
compared to the industry leaders; and
Partners' are able to learn from one another while limiting access
to their own proprietary skills.
The key issues to consider in a joint venture are ownership, control,
length of agreement, pricing, technology transfer, local firm
capabilities and resources, and government intentions.
Potential problems include:
conflict over asymmetric new investments
mistrust over proprietary knowledge
performance ambiguity - how to split the pie
lack of parent firm support
cultural clashes
if, how, and when to terminate the relationship
Joint ventures have conflicting pressures to cooperate and
compete
Strategic imperative: the partners want to maximize the
advantage gained for the joint venture, but they also want to
maximize their own competitive position.
The joint venture attempts to develop shared resources, but each
firm wants to develop and protect its own proprietary resources.
The joint venture is controlled through negotiations and
coordination processes, while each firm would like to have
hierarchical control.
Foreign Direct Investment
Foreign direct investment (FDI) is the direct ownership of facilities in
the target country. It involves the transfer of resources including
capital, technology, and personnel. Direct foreign investment may be
made through the acquisition of an existing entity or the establishment
of a new enterprise.
Direct ownership provides a high degree of control in the operations
and the ability to better know the consumers and competitive

environment. However, it requires a high level of resources and a high

degree of commitment.
The Case of EuroDisney
Different modes of entry may be more appropriate under different
circumstances, and the mode of entry is an important factor in the
success of the project. Walt Disney Co. faced the challenge of building
a theme park in Europe. Disney's mode of entry in Japan had been
licensing. However, the firm chose direct investment in its European
theme park, owning 49% with the remaining 51% held publicly.
Besides the mode of entry, another important element in Disney's
decision was exactly where in Europe to locate. There are many factors
in the site selection decision, and a company carefully must define and
evaluate the criteria for choosing a location. The problems with the
EuroDisney project illustrate that even if a company has been
successful in the past, as Disney had been with its California, Florida,
and Tokyo theme parks, future success is not guaranteed, especially
when moving into a different country and culture. The appropriate
adjustments for national differences always should be made.
Comparison of Foreign Market Entry Modes
Mode

Exportin
g

Conditions
Favoring
Mode

Advantages
this

Limited
sales Minimizes risk
potential in target and
country;
little investment
product
Speed of entry
adaptation
Maximizes
required
scale;
uses
Distribution
existing
channels close to facilities.
plants
High
target
country production
costs
Liberal
policies

Disadvantage
s
Trade barriers
& tariffs add to
costs.
Transport costs
Limits
access
to
local
information
Company
viewed as
outsider

an

import

High political risk

Licensin

Import

and Minimizes risk Lack of control

investment
barriers

and
investment

Legal
protection Speed of entry
possible in target Able
to
environment
circumvent
Low
sales trade barriers
potential in target High ROI
country
Large
distance

cultural

over
use
assets

of

Licensee may
become
competitor.
Knowledge
spillovers
License period
is limited

Licensee
lacks
ability to become
a competitor.
Joint
Venture
s

Direct
Investm
ent

Import barriers

Overcomes
Large
cultural ownership
restrictions
distance
cultural
Assets cannot be and
distance
fairly priced
High
sales Combines
resources of 2
potential
companies
Some political risk
Potential
for
Government
learning
restrictions
on
as
foreign ownership Viewed
insider
Local
company
can provide skills, Less
investment
resources,
required
distribution
network,
brand
name, etc.
Import barriers
Small
distance

Difficult
manage

to

Dilution
control

of

Greater
risk
than exporting
a & licensing
Knowledge
spillovers
Partner
may
become
a
competitor.

Greater
Higher
cultural knowledge of than
local market
modes

risk
other

Assets cannot be Can

better
fairly priced
apply
High
sales specialized
skills
potential
Low political risk

Minimizes
knowledge
spillover

Requires more
resources and
commitment
May be difficult
to manage the
local resources

Can be viewed
as an insider
Table -6
Filed prior to exportation:
Electronically by CAED (Canadian Automated Export Declaration)
Electronic Form B13A Export Declaration (Manual / paper copy no
longer accepted)
Summary reporting - reserved for exporters of low-risk goods
who export on a regular basis, and who have met specific
customs requirements Need prior approval i.e. Bulk commodities
- pulp, lumber, cellulose

Commercial Invoice
Probably the most important collection document is the commercial
invoice, which describes the goods in detail and lists the amount owing
by the foreign buyer. This form is also used for customs records and
includes these pieces of information.
May require a signature (unlike domestic or U.S. sales)
Other data would include: currency of sale
U.S. destined goods require EIN# or Federal Tax ID# for importer.
If this information is not on file with the U.S Broker, it may delay
shipment.
Usual information required includes:
Date of issue
Names and addresses of the buyer and seller
Contract or invoice number
Description of the goods, quantities and unit prices
Total weight and number of packages
Shipping marks and numbers
Terms of delivery and payment

Packing Slip
A packing slip is an itemized list of the goods carried in each shipping
package. It contains the quantity, weight and description of the
contents (noting any specific marks and numbers on the packaging
that align with the commercial invoice).
The primary purpose of a packing slip is for the receiver to use as a
checklist for accounting for the goods delivered. The commercial
invoice contains additional information such as pricing and terms. The
packing list merely relates to the physical shipping and receiving of the
goods.
Certificate of Origin
A certificate of origin is a document attesting to the country from which
a product or good is exported or manufactured
Bill of Lading
A written receipt issued by a carrier, a transport company, that it has
taken possession and received an item of property. It usually also
confirms the details of delivery (such as method, time, place or to
whom), and serves as the carrier's title for the purpose of
transportation. It is commonly used for land and ocean freight. Your
freight forwarder or an agent of the steamship line will complete this
document, however it is important for an exporter to understand
In receipt for goods
Evidence of the contract for carriage
Document of title to the goods
ATA Carnet
The ATA Carnet is an international Customs document that a traveler
may use temporarily to import certain goods into a country without
having to engage in the Customs formalities usually required for the
importation of goods, and without having to pay duty or value-added
taxes on the goods. ATA Carnets are great for samples, equipment for
trade shows, band equipment - Common uses involve professional
samples, band equipment, equipment for trade shows. The ATA Carnet
is an international Customs document that a traveler may use
temporarily to import certain goods into a country without having to
engage in the Customs formalities usually required for the importation
of goods, and without having to pay duty or value-added taxes on the
goods. 71 countries participate in this program.
Certificate of Insurance
A document stating that insurance coverage has been purchased for
the shipment. Pacific Customs Brokers offers shipping insurance and
the preparation of insurance certificate for exporters. To learn more
about shipping insurance, speak with one of our logistics specialists

today.

Export Permit and Export License

Export License
An export license is a government document that authorizes the export
of specific goods in specific quantities to a particular destination.
Export Permits
An Export Permit describes, among other things, the quantity,
description and nature of the items to be exported, as well as the final
destination country and final consignee. It is a mechanism for the
government to monitor and/or control exports of certain commodities
to certain countries. A Guide to Canada's Export Controls includes the
Export Control List. Pacific Customs Brokers offers assistance with
export permits and licensing for exporters. To learn more, speak with
one of our logistics specialists today.

SECTION 2
FINACIAL DATA

Table - 7
Projected profitability
Particulars

1ST Year

Installed Capacity
Capacity Utilization

2nd Year

80 tonnes
60%

75%

Sales Realization

19.2

24

8.4
0.42
2.52
0.15
0.24

10.5
0.53
2.8
0.21
0.36

Selling Expenses @ 25%

4.8

Administrative Expenses

0.48

0.6

17.01

21

Profit before Interest & Depreciation

2.19

Interest on Term Loan

0.41

0.24

Interest on Working Capital

Depreciation
Profit before Tax

0.07
0.72
0.99

0.1
0.6
2.06

--

0.4

Profit after Tax

0.99

1.66

Cash Accruals

1.71

2.26

Repayment of Term Loan

0.75

1.5

B
Cost of Production

Raw and Packing Materials

Utilities
Salaries
Stores and Spares
Repairs & Maintenance

Total
C

Income-tax @ 20%

BALANCESHEET
PARTICULAR

MARCH 2016

MARCH 2017

MARCH
2018

Source of fund
Equity share capital
Preference share
capital

10.8
-

10.8
-

10.8
-

Reserve and surplus

55.21

64.31

71.36

90.93
156.94

86
161.1

88.03
170.90

Total
Uses of fund
Fixed asset
Gross block

85.9

90.65

96.6

Less:depreciation

8.59

9.06

9.66

Net block
Capital in work in
process
Investment
Current asset

77.31
4.05

81.59
4.5

86.94
5

3.35
135.97

3.36
122.24

3.36
149.05

63.73
72.23
156.94

50.59
71.65
161.1

74.17
74.89
170.19

Loan fund
Secured loan
Unsecured loan

Less
Current liability
Total current asset
Miscellaneous
Total

Table - 8

Break even analysis

(Rs. in lacs)

No

Particular

SALES

Amount
19.2

variable cost
Raw packing and material

8.4

Utilities ( 70%)

0.029

Salaries (70%)

1.76

stores and pairs

0.15

Selling expense(70%)

3.36

Admin expense(70%)

0.24

interest on WC

0.07

14.27

contribution (A-B)

4.93

Fixed cost

2.96

Breakeven point(D/C)

60%

Table - 9

FINDINGS

In our report in we finds that we have great chance to start the

new concept with the present confectionery market in India as
well as in Canada.
As we know that over 30 % population is between 0 to 14 % and
the confectionery market have great potential to expand their
confectionery level and that is the prime mover for growing the
confectionery market in India as well as at the global level.
As we know that each an every consumer is not attached with
the one particular products in any kind of industry specially in
confectionery industry which is targeted to children`s
Indian consumer toward the children`s product is very concise
and Canada very concise about health factor ,so we have high
possibilities to match with consumer view about health.
Every consumer is always want something new with the present
market, so the starting new concept with present confectionery
in market and hence its having great potential to set the new
concept into the market
As we know that the Indian market is very sensitive toward
pricing. But when we go for health product than quality is
primary and than after pricing and because of low pricing of our
candy we have no issue of high pricing.
Indian confectionery are increasing their effort in product and
development and the promotional activities and market
penetration is also helpful into the starting our candy.
Technology development through we can easily produce any kind
of candy is possible and availability of technology is great helpful
to succeed in veg. candy manufacturing.
It is very large market in India and Canada for confectionery
products.

 In India and Canada they are consuming more and more

confectionery product and increasing demand day by day.
In India and Canada there population are younger so they
consume more confectionery products.
In India and Canada there are too many companies of
confectionery products so in both the country the competition
level is very high.
Now a days in confectionery Products Company doing too many
changes in their products like hygienic packing, health care etc.
It is new concept and new product that we are launching
vegetable candy in India and Canada that will change market
concept and new changes in the market.
While launching new vegetable candy we have to face so many
problems like competitors, taste of customers, price of product
etc.
This new concept we want to introduce into the market because
child they do not eat anything so they did not get proper
vitamins in there body due to this concept children will get all
vitamins.

CONCLUSION

The Indian market is very price sensitive.

Availability of Raw material is adequate in Gujarat
Availability of technology
Government support to new plans and skill development is also
in favor for introducing new plan
Quality measurement
Availability of skilled and semi skilled labour
Government relaxation
There is clear difference between the larger and mass market
where price pressure is significant and the upscale niche
market ,where although important , price is secondary to quality
and the brand image.
The Indian confectionery market is very unique to other countries
confectionery market because in India have wide variety of
customers with different product preference.
When modern confectionery was not popular at that time the
Indian confectionery consumption is around 2500 kg ,so that
thing describe how much have chances and potential and rapid
growth in Indian market.
In Canada all the people prefer modern confectionery so , in
Canada having high chances for that veg. candy.
Canadian preference and their test preference towards the candy
is quit same to Indian`s.
So its feasible to introduce our veg. candy into the Canadian
market.

 Pricing is the key for all kinds o companies to make their product
reach the customer pocket. Right pricing will make a break the
products SUCCESS .
Economical distribution is also equally important for our candy.
Marketing:
Developed Exclusive packaging ( Brand Recall)
Focus should be more on Premium chocolate
Operation:
Establish Facility in Gujarat or near by, that improve presence
in central
India as well as theycan buy resources at more cast
effective manner
Fix or Remove whole sellers ( Define responsibility & Area)
Financial:
Loan Restructure
HR:
They believe it pays off in the long run in their business results.
It is important to give people the opportunities for life-long
learning
There are two main natural sweeteners that are making steady
progress in replacing sugar in many candy products. One of
these is xylitol, and its use in confections has soared over the
past five years, according to Xylitol Canada vice-president Matt
Willer. Xylitol is a natural sugar substitute derived from fruits and
vegetables. It has the same exact sweetness, look and feel as
table sugar, but with 40 per cent fewer calories. Its safe for
diabetics and provides substantial oral health benefits.
Today you have people avoiding sugar and avoiding chemical
sweeteners, so use of natural sugar substitutes, including xylitol,
have skyrocketed and will continue to do so, Willer explains.
Xylitol, being the easiest to use and the cavity preventer, has
lent itself to become one of the more popular in candy. Xylitol is
now found in major candy brands such as Ice Breakers, Mentos,
Ice Chips and Trident. The candy lineup of Xylitol Canadas brand
Xyla includes lollipops, gum, hard candy, mints and taffy (the
company also offers jam, condiments and more), available at
Whole Foods, Sobeys, London Drugs and many other retail
outlets
In addition to seeing more natural ingredients and sugar
substitutes, candy consumers should also expect more healthboosting additives. In particular, Jiang notes, medicated
confectionery and sugar confectionery fortified with medical
ingredients such as amino acids and vitamins are likely to
become more available in candy isles.

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