Bakery

Dhruv Arez
Roll no 13
Batch A 1
I N D U S T R Y

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 INTRODUCTION

• A bakery is an establishment which produces or/and sells bread,

pastries, cakes, biscuits, cookies, etc.

• Baking is the technique of prolonged cooking of food by dry heat

acting by convections, and not by radiation, normally in an oven, but
also in hot ashes, or on hot stones.

• It is primarily used for the preparation of bread, cakes, pastries and

pies, tarts, quiches, and cookies. Such items are sometimes referred
to as "baked goods," and are sold at a bakery.

• A person who prepares baked goods as a profession is called a

Baker. 3
 HISTORY

• In ancient history, the first evidence of baking occurred when

humans took wild grass grains, soaked them in water, and mixed
everything together, mashing it into a kind of broth-like paste. The
paste was cooked by pouring it onto a flat, hot rock, resulting in a
bread-like substance.

• Later, this paste was roasted on hot embers, which made bread-
making easier, as it could now be made anytime fire was created.

• Around 2500 B.C., records show that the Egyptians had bread,
and may have learned the process from the Babylonians.

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The Greek Aristophanes, around 400 B.C., also
recorded information that showed that tortes with
patterns and honey flans existed in Greek cuisine.

During middle ages most of the Landlords were having

their own bakery

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 INDIAN BAKERY iNDUSTRY

◦ The Indian bakery industry is the largest among the

processed food industries.

◦ At present, the bread & biscuit industry accounts for

82% of the total bakery products in the country.

◦ At present, the annual production of bakery products

which include bread, biscuits, pastries, cakes, buns and
rusk, most of which are in the unorganised sector, is
estimated to be in excess of 3 million tonnes.
◦ The production of bread and biscuits in the country
both in the organised and unorganised sectors is
estimated to be around 2.6 million tonnes. 6
◦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

from mixed classes

◦ At present 70% of total bakery products is prepared

by small and family scale units.

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RAW MATERIALS USED IN
BAKERY

◦Wheat flour
◦Sugar and honey
◦Yeast
◦Egg
◦Milk and milk powder
◦Dry fruits
◦Fats

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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
 SCOPE OF BAKERY
INDUSTRY

◦In hotel business

◦Biscuit industry
◦Bread
◦Retailing of bakery
◦Healthier bakery
◦Sugar free bakery
◦Confectionary
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HISTORY OF BISCUIT

• A biscuit is a small baked product; the exact meaning

varies
markedly in different parts of the world.

• The origin of the word “Biscuit” is from Latin and means

"cooked twice", hence Biscotti in Italian.

• A biscuit is a hard baked sweet or savoury product like a

small, flat cake, which in North America may be called a
“cookie” or “cracker” .

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IMPORTANCE
 Biscuit market is growing at rate of 7% per annum.

 Provide employment opportunity to both men and women.

 Theemergence of nuclear families will see a boom in products, which have

convenience and nutrition attached to them.

 India is witnessing a revolution in healthy foods and people are conscious.

 India is the 2nd largest producer of biscuits after USA.

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PRESENT STATUS OF BISCUIT
INDUSTRY

• The present biscuits-bakery sector in India looks like a

battlefront.

• There are two entrenched players in the biscuits market -

Parle and Britannia have 85% of the market share.

• Britannia is undoubtedly- leader with brands like Tiger,

Little Hearts, Milk Bikis.

• Britannia's Tiger brand is selling largely in the rural areas

which actually constitute 56% of the biscuit market. But in
the Glucose segment Parle G is the market leader.

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◦According to market research in 2003,Britannia
brand has over 46 per cent market share in this
fiercely competitive market i.e. far above all, &
Parle enjoys a 40% share of the total biscuit market

◦Biscuits market on an average grew at 8% per

annum in the last five years.

◦The rural penetration of the branded biscuits

segment is also significant.

◦ Towns with populations of less than a lakh

contribute significantly to the industry's turnover,
with some estimates placing it at 40%.
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 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
◦
Bread
The bread market has a business volume of 1.5 million tonnes. The bread
industry has a production of approximately 27 lakh tonnes.
◦ 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.
 PRESENT STATUS

In India there are about 60000 different sector bakery units.

Food processing industry ranks 9th in industrial sector comprising of

bakery instant foods, confectionary, dairy, soft drinks etc.

Bakery industry roughly constitute 10% of processed food industry, of

which biscuit industry constitute 60%.

The Indian biscuits' market is estimated to be 1.1 million tonnes per

annum and valued at over Rs 50 billion.

The unorganized sector accounts for over 50% of the market.

The market has been growing at a CAGR of 6-7% pa.

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◦Bakery ingredients market is valued at Rs 500 crore in the
country and is registering a growth rate of 20 per cent

◦The market is expected to double in a year going by the

demand for healthy and nutritious options in bakery foods
easy to make and carry

◦It give opportunity for youth to explore their creativity

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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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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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 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
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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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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 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 . 25
 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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 THREATS
◦High consumption of bakery products leads to obesity and
other health problem.

◦Most of pure vegetarians don’t consume bakery item.

◦Lot of loss due to insects and low shelf life.

◦FDI in bakery sector may affact domestic players like puratos

from belgium is already entered in indian bakery industry.

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 MARKETING
◦ Determine the quality of product.

◦ Modification of product based on consumer preference.

◦ Create specific product for specific end users, i.e.

segmentation.

◦ Make product easily available to all end users.

◦ Quick transportation of final product because bakery is

perishable product.

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 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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 The Indian bakery market

◦ 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.
 MARKET STRUCTURE

Market Lead Players and

Segmentation(biscuit) Alliances
Segment Share (%) Company Share (%)
Britannia Denone,
Organized 50 46
France
Informal 50 Parle Biscuits 40
Bakeman's 3.5
Market Segmentation (bread)
Segment Share (%)
Organized 15
Informal 85
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Source- Society of Indian Bakers
 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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CASE STUDY: MONGINIS BAKERY,
KOLKATA

◦Introduction :- Arnav Basu with the help of Khorakiwala family as

monginis foods ltd at Kolkata in 1980.

◦At that time name monginis was unknown to Kolkata.

◦ Monginis starts becoming popular after starting bakery in 1991.

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FEATURES OF
MONGINIS BAKERY

◦Import best quality machines from many country.

◦Launching of international quality chocolates and

so many recipes of bakery very first time in
Kolkata.

◦Key success for monginis is highly effective

franchisee system as more than 100 franchisee
outlets only in Kolkata.
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Monginis mainly targeted middle and upper middle class of
Kolkata as it offers fresh , quality produce at affordable price.

Innovations :- As monginis was 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.

Monginis outlets contains reheating and air condition facilities

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 KEY TO SUCCESS
OF MONGINIS

◦Good franchisee management.

◦Packed cakes.

◦Return management.

◦Pricing.

◦Promotions.

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 FRANCHISEE MANAGEMENT

◦ Sight selection :- Area should be at least 200 square ft

&frontage be of 10 feet.

◦ Has standard format of décor, colors , display counter, ac,

freeze , microwave oven etc.

◦ Commission paid on good sales be 14%.

◦ Constant monitoring of stores.

◦ Payments of bills at alternate day.

◦ Distribution timely once or twice a day.

Prominent Food and Bakery Associations in India
◦ Indian Stainless Steel Development
Association
◦ Fragrances and Flavours Association
of India(FAFAI)
◦ All India Food Processors
Association
◦ Poultry Processors Association
◦ All India Distillers Association
◦ Association Of Food Scientists &
Technologies
◦ National Association of Bakery
Industry
◦ Federation of Biscuit Manufacturers
Association
◦ The Soyabean Processors
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
and Restaurant Association of India
◦ Indian Confectionery Manufacturer
s 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
References
◦ Indian Biscuits Manufacturers Association
◦ All India Bread Manufacturers Association ltd
◦ All India Food Processors Association
◦ Society of Indian Bakers
◦ Indian Confectionery Manufacturers Association

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CONCLUSSION
◦Due to changing consumption pattern there is lot of scope for
bakery industry.

◦Due to modernization , westernization and industrialization

demand for bakery has increased.
◦Good opportunity to emerge as a national brand.

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THANK YOU

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