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If you thought that a typical family run Indian company cannot top the
worldwide charts, think again. The homegrown biscuit brand, Parle G,
has proved the belief wrong by becoming the largest selling biscuit
brand in the world.
The other global biscuit brands include Oreo from Nabisco and McVities
from UK-based United Biscuits among others. According to ORG-MARG
reports, Parle G commands a good 65 per cent market share in the
domestic biscuit market. The glucose biscuits category in India is
estimated at Rs 15 billion. The Parle G brand faces competition from
Britannia's Tiger brand of biscuits.
India is among the largest producers of biscuits in the world and yet
the per capita consumption stands at a dismal 1.5 kilograms. Over 900
million Indians consume biscuits in some form or the other. At the
base of this consuming pyramid stand the popular varieties — Parle G
and Tiger. This alone constitutes about 40% of the total market
estimated around Rs 3000 crores (approximately US$ 600 million).
And if you add the Marie category to that figure, it amounts to almost
80% of the branded biscuit market. These are just the guesstimates
for the branded market. Add the unbranded, unorganised biscuit
market and you get a colossal figure almost double the size. I’m sure
you can appreciate how large these numbers are. A market of this size
has the potential to influence not only the development of packaging
materials and machines, but the social sector too. And that, you know,
is what saddens me. Here is a truly great market — one of the
mega markets that India can be proud of, like dairy and agro
products. What saddens me is to see how the controllers of this
great market – the biscuit-walas — are just not doing enough in
the “right directions” to qualitatively improve the product
offering and thereby leverage the industry to what I believe
could be a world beater – you know, even something like our IT
industry.
MARKET SHARE OF VARIOUS BRANDS IN THE SAME
PRODUCT CATEGORY.
2003-04 15%
2004-05 14%
2005-06 14%
2006-07 13%
While the growth rate has been stagnating during last 4 years,
momentum is expected topick up during 2007-08, mainly on account
of exemption from central excise duty on biscuits with MRP up to Rs
100/per kg, as per Union Budget for 2007-08. Indian Biscuit
Manufacturers’ Association (IBMA), instrumental in obtaining the
excise duty exemption, estimates annual growth of around 17-18% in
2007-08. Growth in biscuit marketing has been achieved, mainly due
to improvement in rural market penetration.
The per capita consumption of biscuits in our country is only 2.1 kg
compared to more than 10 kg in the USA, UK and West European
countries and above 4.5 kg in South East Asian countries like
Singapore, Hong Kong, Thailand, and Indonesia etc. China has a per
capita consumption of 1.9 kg while in the case of Japan it is estimated
at 7.5 kg. This shows the huge untapped potential of biscuit industry in
India. Exports of Biscuit is estimated to around 10% of the annual
production during the year 2006-07
Exports of biscuits would also pick up. It has already increased with
Indian biscuits turning favorite choice in several Middle East markets.
The export of high end products (like