INTRODUCTION

BAKERY INDUSTRY-

Bakery industry in India is the largest of the food industries with an annual turnover
of about Rs. 3000 crores. Bread and Biscuits form the major baked foods accounting
for over 80% of total bakery products produced in the country. . Bakery products once
considered as sick man’s diet have now become essential food items of the vast
majority of population. Though bakery industry in India has been in existence since
long, real fillip came only in the later part of 20th century. The contributing factors
were urbanization, resulting in increased demand for ready to eat products at
reasonable costs etc. With the quick food culture catching up, demand for bakery
products has increased tremendously. The bakery industry or for that matter all the
businesses catering to bakery are witnessing a sort of revolution tremendously. In an
age where malls, hypermarkets and supermarkets have become the customer's
preferred destination, the concept of chain bakeries has come into its own. The bakery
industry has become more organized in the recent past. It is following the path of
restaurants - as the industry has become more organized, chain restaurants have taken
over the market and standalone restaurants have found it tough to survive on its own.

INDIAN BREAD HISTORY

 The Bread industry is low - tech and low margin industry. In 1977, the
Government of India had reserved bread industry for small scale industries
(SSI). The then existing two large units viz., Britannia Industries Limited and
Modern Food Industries Ltd. were however allowed to continue on the basis
of their respective existing installed capacity.

 35 % of the total production comes from the small scale sector with about
1500-1800 units in operation. The organized sector accounts for 20 % of the
total production. The balance production comes from the unorganized
traditional bakery units operating under cottage/tiny sector numbering
approximately 65000 units in the country. BIL & MFIL are having a market
share of 10-12 % and 7-8 % respectively. Apart from big players like BIL &
 MFIL regional players such as Spencer’s in South India, Vibbs in
Maharashtra, Harvest Gold and Perfect in Delhi, etc.

 Bread being consumed by wide cross - section of the society, the marketing of
bread is based on strong retail distribution networks, which service the
customers.

 As bread industry is a low margin business, cost control is crucial in sustaining

profitability in the long run.

 The total market size of bread industry is approximately 15 billion standard

loaves (SL) or 1.5 million tonnes. The current growth is around 5 - 6 percent
p.a. and is expected to remain in the same level in the medium term.

EMERGENCE OF HEALTHY PRODUCT

Along with an increase in demand for the bakery products, the awareness about health
is also on the rise. Bakeries are making sure that they come out with healthier
products. "The awareness of the virtues of products like whole grain, health breads,
cholesterol-free products and such other health products is growing in our country. An
increasing demand and health awareness results the demand for products like
Specialty Breads.

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ABOUT THE COMPANY

“I conform to the view that there are three kinds of companies -those that watch
things happen; those that make things happen; and those that wonder what happened.
We certainly wish to make things happen.....My personal commandment is Do unto
others what you don't wish done unto you. It's not the big who swallow the small; it is
the fast that swallow the slow”

- Sunil Alagh, CEO, Britannia Industries Limited

Britannia Industries Limited (BIL) is the leading player in Bakery Products

(Biscuits, Bread, Rusk and Cake), jointly promoted by French food major DANONE
and Nusli Wadia. It enjoys market leader ship in Biscuits with 39 % market share in
value term. It owns key brands like Tiger, Good Day and Marie Gold. It has six pillar
brands, which contribute around 90 % of its top line. Each of its pillar brand
generating sales exceeding Rs.1 billion and these six pillar brands include Good Day,
Tiger, 50:50,Treat, Milk Bikis, and Marie Gold. BIL is enjoying market leadership in
all sub-categories of biscuits, Except in Glucose category where Parley is the leading
player.

PRODUCT BASKET OF BRITANNIA

The group’s principal activities are manufacturing & marketing-

 Biscuits

 Cakes

 Rusk

 Bread

 Daily products