Académique Documents
Professionnel Documents
Culture Documents
Aravali Institute of
Management,
Jodhpur
(An Institution of Marwar Education Foundation)
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Aravali Institute of Management
Shahnawaz Ali
Date of Submission:
06/04/09
Acknowledgement
We are extremely thankful to Aravali Institute of Management for
providing such an opportunity to study the confectionery industry (Bread &
Biscuit) in Jodhpur.
We are also thankful to Prof. Varun Arya and faculty members of
Aravali Institute of Management Mr. Deepesh Kumar, Miss Elena Bhandari
and Mr. Sanjay Dedee who guided us in the completion of the project.
In addition, we would like to thank all those people who helped us in
conducting the survey and give their views and opinions to make the survey
fruitful. A special mention of the names without the generous support of whom
we would never have been able to achieve our target. A hearful gratitude to
Mr. Sunil Gupta, Mr. Wasim Bhai, Mr. Chetan Narwani, and Mr. Azeem who
took keen interest in solving our queries and helping a great deal to complete
this project successfully.
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Aravali Institute of Management
Table of Contents
2 Limitations 4
3 Objective 5
4 Research methodology 5
5 Industry overview 6
6 Market analysis 8
7 Findings and analysis 9
8 Consumer behaviour 11
9 Recommendation 15
10 Bibliography 15
11 Financial feasibility of the Project 16
12 Appendices 18
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Aravali Institute of Management
EXECUTIVE SUMMARY
The objective of taking up this local industry project was to study the
scope of confectionary industry with reference to bread and biscuit.
In initial days we conduct a preliminary survey from which we came to
know about organized and unorganized market players in bread and biscuit
segment.
On the basis we made questionnaire:
• For bread manufacturers and distributor.
• For unorganized biscuit manufacturer.
Our research was descriptive and conclusive. To conduct our research
we met with manufacturers and Bakery.
During the survey of organized and unorganized biscuit market, we
came to know that present sales of organized and unorganized market in
biscuits are Rs. 1cr. And Rs.1.5cr. respectively.
At last we conducted consumer survey of 100 people. By this survey
we found that consumers are not loyal towards bread segment and more loyal
towards biscuit segment. We got impact of season and occasion on purchase
of product in biscuit segment.
By analyzing all findings we gave recommendation for better future of bread
and biscuit industry.
LIMITATIONS
We covered mainly bread industry in this project and a bit of biscuit and
industry.
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Aravali Institute of Management
OBJECTIVE
To do a market analysis of confectionery manufacturing industry for
setting up a manufacturing unit
Research Methodology
• Research technique
--- Exploratory
--- Descriptive
Our research or study was
--- Descriptive in design
--- Conclusive in nature
Why ------ Conclusive?
• We had to study the current status of bread and biscuit industry in
Jodhpur.
• We had to identify problems faced by bread and biscuit industry.
• We have to identify feasibility of bread plant in Jodhpur.
• We had to identify the taste and preference and loyalty of consumer
toward brand.
• Sampling Frame
- 80 bakeries
- 6 players in bread segment
- 6 distributor of organised biscuits
- Population 10 lakh People
• Sample size
- 5 bakeries
- 3 players in bread segment (Kim, Frigo, modern)
- 3 distributor of branded biscuits (Parle, Britannia, priyagold)
- 100 people for consumer survey
• Sampling technique:
- Random sampling
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Aravali Institute of Management
Industry Overview
Status of Indian bakery industry
Bakery industry in India is the largest among the processed food
industries, production of which has been increasing steadily in the country.
The production of bakery products has increased two folds in the last five
years indicating increasing popularity of the products. The present production
of bakery items in India is estimated to be 31.5 lakh tonnes. Of these, the
share of bread is 15 lakh tonnes and of biscuits in 12 lakh tonnes. The
remaining 4.5 lakh tonnes in contributed by other bakery products. It is of
interest to note that only about 24% of bread and 26% of biscuits are
manufactured in large scale units while 68-70% of bakery products are
produced in small scale units. As high as 48% of the total bakery products
produced in the country are consumed in rural areas.
Bread market in estimated to be growing at around 7% pa in volume
terms, whereas the biscuit market in the recent years has witnessed a little
higher growth at around 8-10% pa. Within the biscuit category, cream and
specialty biscuits are growing at faster pace at 20% pa, while the popular
segment is growing.
In 2009, North India will remain the largest for bakery products,
accounting for an estimated 35% of total value sales in the country. High
consumption in the region can be traced to Rajasthan, Uttar Pradesh, Delhi,
Haryana and Punjab, where there is high daily consumption of bread. Within
the North Indian diet, many forms of traditional bread made from wheat flour
exist. This includes bun and pav, which are usually locally made and served
during breakfast, lunch and dinner. As such, the North Indian palate is
consequently accustomed to consuming bread and hence there is a greater
ease in switching over to organised products. Artisan sales account for a large
chunk of total bread consumption here as in the other regions, as the local
population like their bread freshly baked and hot. Branded sales are
significantly impacted by the presence of huge unorganised production, as
these traditional breads can also be purchased from vendors and small-scale
local manufacturers who produce unbranded bread.
However, the per capita consumption of bread in India is only 1-2 kg as
compared to 50-150 kg in developed countries. Hence, there is an unlimited
scope for expansion for bakery industry in the country. This would help in the
effective utilization of the surplus wheat produced in the country and make
available highly nutritious ready-to-eat convenient product at reasonable cost
affordable by common man and also generate employment by
entrepreneurship.
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Market analysis
Bread industry
• In Jodhpur major players are Frigo, Modern, Kim.
• Bread is a popular snack food/ food supplement for lower-middle//
middle-middle income people in urban areas.
• Low cost bread manufactured by unorganized sector is known as pav.
• Premium range of bread manufactured by organised sector is popular
as a breakfast item among middle/ upper income group in urban area.
• Bread is sold predominantly by grocery shops, sweet and namkeen
shops, cinema hall, general stores and other retail outlets.
• Very less penetration in rural areas.
• Retailers play a major role to push the sales.
Biscuit industry
In Jodhpur, the present sales of organised biscuits are approx. Rs. 1
crore monthly. There are three major players in organised sector. These are
as follows:
(1) Parle
(2) Britannia
(3) Priyagold
Brands by companies:
Parle = 20
Britannia = 15
Priyagold = 13
• In Parle biscuits maximum sales come from Glucose, Krackjack,
Monaco and cream biscuits
• In Britannia maximum sales come from Tiger, Good Day, cream
biscuits
• In Priyagold maximum sales come from Butter Bite and Coconut
Unorganized sector:
• In Jodhpur, the present sale of unorganized market is approximately
1.75 Cr. Monthly. Kim food Ltd., Garib Bakery, Krishna Bakery and
Anand Bakery is the major biscuit manufacturers.
• There are many small bakeries in Jodhpur which make biscuits on
small scale.
• In unorganized sector the biscuits made are Coco biscuits, Almonds
biscuits, Cashew nut biscuits, jeera biscuit on small scale.
• In unorganized sector, local bakeries make Coco biscuits, Almonds
biscuits, Cashew nut biscuits, jeera biscuits, Nan khtai, ajwain biscuits,
Cream biscuits, khari, Cakerus, Rusk. Out of which khari, Rusk, Coco
biscuits, Cashew nut biscuits are predominantly sold in unorganized
market.
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Aravali Institute of Management
Products Response
Only white bread Nil
Only pav Nil
Only bun Nil
All 3
2) In response to our third question regarding procurement of raw material.
Market place Response
Domestic (Jodhpur) 3
Outside Jodhpur 0
With respect of procurement of raw material in Jodhpur some kind of raw
material are taking from Jodhpur and some material are taking from outside of
Jodhpur.
3) In response of our question about stock level (Raw material)
Days Response
Less than 3 days 0
3 to 6 1
6 to 10 1
More than 10 1
As raw material is easily available in Jodhpur so they don’t have to stock for
longer period.
4) In response to next question about per day sales (Number of units)
Market players No. of units
Frigo 15000
Kim 12000
Modern 10000
Others 1000
5) In response to question about technology.
Technology Response
Manual 1
Semi automatic 2
Automatic 0
About the making process of bread we are required manpower as well as
machine so we can’t use fully automatic machine.
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Aravali Institute of Management
Attribute Preference
Very good 1
Good 1
Average 1
Poor 0
7) When we asked to rank factors affecting Jodhpur bread industry according
to their preferences. The attributes are follows.
High investment in plant
Lack of skilled labour
Lack off infrastructure support
High competition
Low profit margins
3 Rank
0
Lack of skilled
investment in
tehnical plant
infrastructure
competition
Low profit
margins
support
Lack of
High
labour
High
They told that the competition is very high in the market and after it the
new machines cost is very high so sometime we face the problems in these
factors.
• If we analyse in all factor the small size bread manufacturing
plant cost around Rs. 30 lakhs to Rs. 75 lakhs. The high level of
investment are mainly because new manufacturing plant requires high
accuracy, quality standards and other features and many of new
machines which increases cost of plant and it has to operate on very
thin margins.
• If we talk about infrastructure of new plant in Jodhpur main
problem is electricity, land and transportation. Many times full electricity
is not supplied to industry so they have to have the back for the
production and second problem is land in Jodhpur cost of land is very
high so the main part of cost of establishment of new plant increase at
a high level.
• The third main problem is transportation the roads are not so
good and crowed is also very high so lead time and efficiency increase
from this and life of vehicle also decrease at a fast level.
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Aravali Institute of Management
Biscuit: (unorganised)
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Other
4%
Modern
16%
Kim Kim
44%
Frigo
Modern
Other
Frigo
36%
2) If the brand of your choice not available will you switch over to another
brand?
Yes 63
No 37
3) Are you satisfied from quality of bread?
Highly satisfied 31
Satisfied 59
Dissatisfied 10
4) Which brand do you like in biscuits?
Britannia 51
Parle 25
Priya gold 13
Others 11
Others
11%
Priya
gold
13% Britannia
Britann Parle
ia Priya gold
51% Others
Parle
25%
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Finding
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Recommendation
After analyzing the financial data, looking the industry performance and
keeping the entire factor discussed above into consideration, we
recommended that the proposal of setting up a new bread manufacturing
unit in Jodhpur is feasible.
1) Covering rural area: Bread manufacturer should appoint distributors
in surrounding major towns because they can push the product in
untapped market. For that, manufacturer has to give more margins
(like 8%) then general trend (4-5%)
2) People think bread is a stale product so they consider hygiene
factor while purchasing the bread. So bread manufacturer units
should print date of manufacturing and expiring date.
3) Packaging also plays a good role in selling of bread because it
makes product very attractive for customers (like carry hand bag).
4) Biscuit making bakeries should put such name of product which can
create a sense of brand itself (like Meethas, Tana-Bana Bandhan)
5) Cost of new plant will increase from cost of new machines and cost
of land these two are very high so setup cost is going very high.
6) Kim bakers is not sold more through distributor. They sold only at
their retail shops if Kim bakers want to increase the sales than they
should sale through distributors.
7) Bread manufacturers can also produce khari and rusk in their
existing plant with installing a paddy mixture.
Bibliography
Websites:
www.indiainfoline.com
www.foolonhail.com
www.mindbranch.com
www.indiandictionary.com
Books referred
o Introduction to E-Commerce Tata McGraw-hill edition by
Jeffery f. rayport and bernard j. jaworski
o Management Research Methodology by K.N.
Krishnaswamy, Appa lyer Sivakumar and M. Mathirajan
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