INDIAN BAKERY MARKET: COMPETITOR ANALYSIS

OF MARKET COVERAGE OF TOP 3 BAKERY INDUSTRIES

A SUMMЕR INTЕRNSHIP PROJECT
SUBMITTЕD IN PART COMPLETION OF
POST GRADUATION DIPLOMA IN
MANAGЕMЕNT TO
THAKUR GLOBAL BUSINESS SCHOOL
By
Kevin Parmar

(PGDM- FINANCE, ROLL NO.-P2123078, SЕMESTЕR III)

UNDER GUIDANCE OF:
Prof. Surbhi Gawade

SHYAMNARAYAN THAKUR MARG,

THAKUR VILLAGЕ, KANDIVALI (ЕAST), MUMBAI 400101

1
 DECLARATION

I, Mr Kevin Parmar of Post-Graduation Diploma in Management of

Thakur Global Business School, hereby declare that I have completed
the Summer Internship from KCG Corporation.

The Summer Internship project work entitled “Market Research

Intern” submitted to the institute is a record of work done by me during
my internship under the guidance of the Manager, (To be filled), and my
faculty mentor Prof. Surbhi Gawade.

This project is the record of authentic work carried out by me and has not
been submitted to any other University or institute for the award of any
dеgrее. This information is true and original to the best of my
knowledge.

Signature of Student

Kevin Parmar

Roll No.: P2123078

Batch 2021-23

2
Certificate of Internship

3
 CERTIFICATE

This is to certify that the title Content Distribution is the bona fide research
work carried out by Kevin Parmar student of PGDM, at Thakur Global
Business School, (Approved by AICTE) during the year 2022-23, in partial
fulfilment of the requirements for the award of the Degree of POST
GRADUATE DIPLOMA IN MANAGEMENT and that no part has formed
the basis for the award previously of any degree, diploma, associate ship,
fellowship or any other similar title.

Place: Mumbai
Date: Kevin Parmar
Roll no. P223078

PGDM Finance
TGBS

Dr. Vishal Bhole Prof. Surbhi Gawade

Director TGBS Project Guide TGBS

4
CHAPTER PARTICULARS PAGE NO.
NO.

5
 1 Introduction
1.A About the Topic 7
1.B About the Industry 10
1.C About the Company 15

2 Literature Review 22

3 Research Design 25

3.1 Research Objectives 25

3.2 Problem Statement 26
3.3 Research Methodology 26

4 Data Analysis 27
4.1 Data Collection Method 27
4.2 Data 28
4.3 Limitations of the Study 40
4.4 Findings 41

5 Learning Outcome
44
6 Contributions to the Organisation
45
7 Conclusion

EXECUTIVE SUMMARY

6
India is the second-biggest maker of food products close to China and is having
the capability of being the greatest with its food and rural area. The bakery
business in India is perhaps the greatest supporter of the nation's handled food
industry. Bakery products which incorporate bread and rolls represent more
than 82% of the absolute bakery products created in the nation. The bakery
segment in India can be named three expansive segments of bread, scones and
cakes. Composed bakery part in India produces about 1.3 million tons of
products and the rest is created by the disorderly area and little scope nearby
makers. Regardless of whether there are numerous programmed and self-loader
bread and scone fabricating units accessible in India, the vast majority of us
favour new bread and different products from the nearby bakery. In any case,
with the coming of MNCs selling pizzas and burgers, individuals are changing
their preferences as well. Numerous local and worldwide players have taken the
market and the opposition has expanded.

Bakery items are food things which for the most part incorporate rolls, cakes,
baked goods, level bread, tortilla, chapatti, bun, croissant, and so on. These
items are quickly picking up prominence attributable to their wonderful taste
and medical advantages as they are produced using an assortment of grains, for
example, rye, maize, wheat, and oats among others. Different fixings utilized
for heating incorporate water, eggs, preparing pop and powder, nuts, and added
substances. As bakery items give both comfort and moderateness to the
customers, their utilization level has seen an ascent in the previous barely any
years. As indicated by the most recent report by IMARC Group, named "Indian
Bakery Market: Industry Trends, Share, Size, Growth, Opportunity and Forecast
2020-2025", the Indian bakery market arrived at an estimation of around US$ 8
Billion out of 2019.

Chp1. INTRODUCTION

7
1.A. About the topic-

The bakery industry in India is the largest of the food processing segments with
an estimated annual turnover of about $ 7.60 billion in 2020. The growth and
spread of the bakery market is largely driven by a thriving biscuits and cookies
industry. The biscuits and cookies industry accounts for nearly 72% of the sales
in the Indian bakery market. The penetration of cookies and biscuits in both the
urban and the rural market is increasing owing to their affordable price and
ready to eat nature.

In addition to this, the growth of the fast food chains in recent years has further
boosted the demand for breads as they are used for sandwiches, burgers, snacks,
etc. Introduction of value added bakery products too has expanded its market
base.

India is the second largest producer of biscuits in the world. However, it is the
world's largest biscuit consuming nation with an estimated turnover of $ 4.65
billion in 2020. Bread and biscuits form the major baked foods accounting for
over four-fifths of total bakery products produced in the country. India enjoys a
comparative advantage in manufacturing, with an abundant supply of primary
ingredients and cheap workforce, which support the growth of the industry.

The cake market is forecasted to reach $ 882.24 million by 2024 growing at an

annual compound rate of 12.5% during 2019 to 2024. As the consumption of
cakes is gaining market traction, owing to consumers’ changing perceptions, as
well as their convenience and health attributes, the demand for on-the-go cake
products, which are baked off or made at the convenience of the consumer is
rising sharply.

The bakery industry is experiencing robust growth of over 9%. It's a huge
industry employing a large number of people. In fact with over a million
unorganised small scale bakeries and more than 2000 organised or semi
organised bakeries, it is the largest of all the segments of India's food processing
industry. A report by the IMARC Group, “Indian Bakery Market: Industry
Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025” the Indian
bakery market was worth $ 7.22 billion in 2018. The market value is projected

8
to reach a value of $ 13.3 billion by 2025, expanding at an annual compound
rate of 9.1% during the period. The organic bakery products, due to their high
nutrient value and affordability, have now become an item of huge consumption
which has also shown a strong demand growth for bakery products in India.

A large part of this market is accounted for by bread and biscuits which are
items of mass consumption. Major players in this sector, like Parle, Britannia
and ITC Foods, have captured the markets to a great extent, with Britannia
holding the leadership position. In terms of value, Britannia and Parle account
for more than a third of the total volume of branded biscuits marketed in India.

Organised bakeries in India are utilising social media to provide targeted and
cost-effective marketing. The small local bakery cafes are eschewing traditional
marketing to rely on word-of-mouth recommendations and social media
engagement. Tapping into the artisanal market, smaller bakeries can concentrate
on quality over quantity, while larger Indian chains such as Barista and Mad
Over Donuts rely on creating larger quantities but with strong branding and
associated trust.

The rising trend of “natural nutrition”, “healthy living” and “organic products”
has significantly raised the consumers’ demand on whole wheat, light, natural
and additive-free products. With the changing consumer preferences and health
consciousness, the bakery industry is discovering new dimensions. One can
have now multigrain bread, brown bread, sweet bread or even gluten-free bread
of one’s choice. And it is not only breads which have become healthier. The
same can be said of biscuits, cakes and pastries.

Another trend that has emerged in recent years is a preference for homemade
items. The pure variety of homemade chocolates that becomes available during
festivals points towards the growing demand for such items in the country.

The Indian bakery industry is dominated by the small-scale sector with an

estimated 50,000 small and medium-size producers, along with 15 units in the
organized sector. Apart from the nature of the industry, which gravitates to the
markets and caters to the local tastes, the industry is widely dispersed also due

9
to the reservation policies (relating to the small scale industries) of the
government.

Biscuits and bread which are considered to be the major bakery product and
they account for 82% of all bakery production. The unorganized sector accounts
for about half of the total biscuit production estimated at 1.5 million tonnes. It
also accounts for 85% of the total bread production and around 90% of the other
bakery products estimated at 0.6 million tonnes. The last includes pastries,
cakes, buns, rusks and others.

Bread and Cakes are estimated to enjoy around 17% share by volume and 45%
by share by value of the bakery industry. The organized sector caters to the
medium and premium segments, which are relatively less price-sensitive. The
organized sector is unable to compete at the lower price range due to the excise
advantage enjoyed by the informal sector. The organized segment in cakes &
Breads has witnessed a steady growth of about 7.5%, conforming broadly to the
growth rate of GDP.

Biscuits constitute about 7% of the Rs 478 billion FMCG markets in India.

During 2003-04 biscuits market grew at double digit (about 11%) compared to a
growth of 1.4% for the FMCG industry as a whole, and 4.4% average growth
over last five years (1999-2003).

As far as Chennai Market is concerned, Cakes & Breads constitute just more
than 4% of the Rs.5000 Cr. FMCG market in india. It is continuously growing
as the young generation started considering diet and healthy foods. The Bakery
market in Chennai is growing at 11% per annum in terms of quantity and 14%
in terms of Value.

1.B. About The Industry:

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The biscuits and cookies industry in India accounts for nearly 72% of the sales
in the Indian bakery market. In comparison to other baked FMCG products, the
penetration of cookies and biscuits is quite high in both the urban and rural
areas owing to their affordable price and cholesterol-free nature. Currently,
India is the world's largest biscuit consuming nation, which will be worth nearly
USD 4.65 billion by FY 2020. The region enjoys a comparative advantage in
manufacturing, with an abundant supply of primary ingredients, which supports
the growth of the industry in the region.

East and North India are the regions with the highest consumption rate of
biscuits and cookies in the country. Maharashtra and West Bengal, being the
most industrially developed states, hold the highest rate of biscuit consumption.
The top four players in the biscuits and cookies market are Parle Products,
Britannia, ITC, and Surya Food and Agros, where Britannia and Parle together
account for 61% of the total market share.

Market Segmentation:

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Baking refers to the process of cooking food by dry heat in an oven, hot ashes
or on hot stones. Baked goods or bakery products include items such as, bread,
cookies, biscuits, rolls, cakes, cupcakes, pies, tarts, sweet rolls, coffeecakes,
doughnuts, and refrigerated bakery products. Baked goods, such as bread,
provide many nutrients that are vital for the health. Bread and biscuits are some
of the popular products among other baked goods. On the basis of products, the
Indian bakery market is divided into:

 Biscuit
 Cookies
 Cream Biscuits
 Glucose Biscuits
 Marie Biscuits
 Non-Salt Cracker Biscuits
 Salt Cracker Biscuits
 Milk Biscuits
 Others
 Bread
 Sandwich Breads
 Hamburgers
 Croissants
 Others
 Cakes and Pastries 

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  Packed Cupcakes
 Pastries
 Muffins
 Layer Cakes
 Donuts
 Swiss roll
 Others
 Rusk

Bakery products, due to high nutrient value and affordability, are an item of
huge consumption. Due to the rapid population rise, the rising foreign
influence, the emergence of a female working population and the fluctuating
eating habits of people, they have gained popularity among people, contributing
significantly to the growth trajectory of the bakery industry.

Bakery holds an important place in food processing industry and is a traditional

activity. With regard to bakery products, consumers are demanding newer
options, and the industry has been experiencing fortification of bakery products
in order to satiate the burgeoning appetite of the health-conscious Indian. A
number of healthy products have been launched in the bakery segment, and are
gaining popularity at a high rate. The mounting presence of bakery chains has
further triggered the growth in the sector.

Indian Bakery Market:

India is the world’s second largest producer of food next to China, and has the
potential of being the biggest with its food and agricultural sector. Indian bakery
industry is one of the biggest sections in the processed food industry of the
nation and has undergone a massive change majorly on account of changing
perception of bakery products and evolving consumer tastes. Bakery products,
which include bread and biscuits, form the major baked foods accounting for
over 82 per cent of the total bakery products produced in the country. It enjoys a
comparative advantage in manufacturing, with an abundant supply of primary
ingredients required by the industry, and is the third-largest biscuit
manufacturing country (after the United States and China). Rising urbanization
and growth in the disposable incomes of the Indian population has proven to be
a magnet for international bakery chains owing to which the sector has seen an

13
influx of foreign bakery companies foraying into India which has helped in
improving the quality of Indian bakery products. Today there is a constant effort
by the bakery players to innovate their product line to match up to Indian palate.

The bakery manufacturers in India can be differentiated into the three broad
segments of bread, biscuits and cake. As far as the Indian biscuit market is
concerned, the shares of the branded and organised sector and the unbranded
and unorganised sectors are 60 per cent and 40per cent respectively. Indian
bakery products, especially biscuits, are in great demand in developing
countries. About 1.3 million tonnes of the bakery products industry in India is
in the organized sector which is about 3 million tonnes, while the balance
comprises of unorganized, small-scale local manufacturers. The unorganized
sector accounts for about half of the total biscuit production estimated at 1.5
million tonnes. It also accounts for 85 per cent of the total bread production and
around 90 per cent of the other bakery products estimated at 0.6 million tonnes.
The last includes pastries, cakes, buns, rusks and others. Organised and
unorganised bread players contribute around 45 per cent and 55 per cent of the
total bread production, respectively. The organised sector comprises around
1,800 small-scale bread manufactures around India, 25 medium-scale
manufacturers and two large-scale industries. The branded packaged segment
in this sector had a size of Rs. 17,000 crore in the financial year 2015-16and is
expected to grow at phenomenal rate of 13-15 per cent in the next 3-4 years.
Driven by evolving perception of bakery products in India, consumption boom
in the nation and changing consumer preferences, we estimate the Indian bakery
industry to touch levels of INR 483 billion in the next five years. Within
biscuits, 3-4 large-sized players viz. Britannia, Parle, ITC, Cadburys comprise
about 75 per cent of the market. The breads and cakes market is much more
fragmented with multiple regional and local players.

14
International players like United Biscuits, Unibic have gained prominence in the
last few years in their specific product segments. Going ahead, the sector is
expected to see some more of the international brand-setters in the Indian
market. The bakery industry has achieved third position in generating revenue
among the processed food sector. The shining star of the sector remains the
biscuits industry, which is expected to outperform the growth of the sector
overall. While the figures are indeed encouraging, there is a flip side to this
story. As the business and the industry thrives, the challenges accruing out of it
are also growing at a fast pace. Despite the fact that there are many automatic
and semi-automatic bread and biscuit manufacturing units in India, many people
still prefer fresh bread and other products from the local bakery. Since the
advent of multinational companies (MNC) selling pizzas and burgers in the
country, people are changing their tastes also. Today, they are not restricted to
bread, cakes and biscuits, but to other bakery products also. With new launches
by a few companies like Britannia, Biskfarm and Morish, competition has
increased. Also, the Indian market is observing the establishment of bakery café
chains in the form of Barista, Café Coffee Day and Monginis. The popular
biscuit variants in India are glucose biscuits, Marie, cream biscuits, crackers,
digestive biscuits, cookies and milk biscuits. Admittedly, the Indian bakery
industry is not really geared up to face the daunting task that lies ahead, which
is of striking a balance. The per capita consumption of bakery products in India
is very low of about one to two kg per annum, which is comparatively much
lower than the developed countries where consumption is between 10 and 50kg
per annum. Baked goods are expected to grow by constant value at a compound
annual growth rate (CAGR) of two per cent over the forecast period. The urban
regions of India witnessed rapid growth and expansion of modern retail outlets
in 2013. However, modern retail outlets, such as hypermarkets and
supermarkets, continued to remain low, compared to the overall retail scenario

15
in India. Some of these modern retail outlets also had dedicated sections to
bakery products.

The growth rate of bakery products has been tremendous in both urban and rural
areas. Bakery segment has increased matured to a great extent, recently. This
tremendous growth has happened due to two reasons. Firstly, due to the
availability of better ingredients from chocolate, toppings, fillings, flavours etc.
Secondly, education abroad has brought in many new players striving to
produce products of international standard rather than products of international
standard rather than products of mediocre quality. Number of players is
increasing slowly. More and more people are starting to take this up as a
profession from the house, after doing short/long courses, mediocre quality.
Number of players is increasing slowly. More and more people are starting to
take this up as a profession from the house, after doing short/long courses.

Current Market Research: The bread industry in India grew at a CAGR of 9%

over the last three years and is valued at INR 33bn (USD 0.51bn) in FY 2015
(E). The industry is expected to grow at a CAGR of 10% over the next five
years to approximately INR 53bn (USD 0.82bn) in FY 2020. Organized
segment of the bread industry currently stands at ~45%. Entry of the mid-sized
regional players is consolidating the industry towards a more organized
structure. Brown and nutritional bread are fast growing segments while white
bread is the largest at 75%. Though urban market accounts for ~65% of the
demand, rural market is growing faster.

16
  Biscuits & Cookies are the most popular bakery items amongst Indians
and is valued to be around INR 146,000 million. Interestingly, India is
world’s largest biscuit and cookies consuming nation.
 Breads stand to be on number 2nd on the popularity list, the market
valuation of INR 30,000 million. Indians have adopted breads as their
common breakfast item. Healthier options like whole wheat and
multigrain breads are being widely adopted.
 Cakes & Pastries are an item of occasion and celebration in the country.
The market is valued at INR 18,500 million. Many flavours are available
in local retail bakery outlets, these can be customised or made to order
according to the choice of the customers.
 Other items consists of cake rusks, puffs, khari, toasts etc. these are
valued to be INR 5,500 million. These are usually evening snake or
breakfast items found in almost every household of the country.

Growth trend and future potential

The bakery industry is experiencing robust growth of over 9%. It's a huge
industry employing a large number of people. In fact with over a million

17
unorganised small scale bakeries and more than 2000 organised or semi
organised bakeries, it is the largest of all the segments of India's food processing
industry. A report by the IMARC Group, “Indian Bakery Market: Industry
Trends, Share, Size, Growth, Opportunity and Forecast 2020-2025” the Indian
bakery market was worth $ 7.22 billion in 2018. The market value is projected
to reach a value of $ 13.3 billion by 2025, expanding at an annual compound
rate of 9.1% during the period. The organic bakery products, due to their high
nutrient value and affordability, have now become an item of huge consumption
which has also shown a strong demand growth for bakery products in India.

A large part of this market is accounted for by bread and biscuits which are
items of mass consumption. Major players in this sector, like Parle, Britannia
and ITC Foods, have captured the markets to a great extent, with Britannia
holding the leadership position. In terms of value, Britannia and Parle account
for more than a third of the total volume of branded biscuits marketed in India.

Organised bakeries in India are utilising social media to provide targeted and
cost-effective marketing. The small local bakery cafes are eschewing traditional
marketing to rely on word-of-mouth recommendations and social media
engagement. Tapping into the artisanal market, smaller bakeries can concentrate
on quality over quantity, while larger Indian chains such as Barista and Mad
Over Donuts rely on creating larger quantities but with strong branding and
associated trust.

The rising trend of “natural nutrition”, “healthy living” and “organic products”
has significantly raised the consumers’ demand on whole wheat, light, natural
and additive-free products. With the changing consumer preferences and health
consciousness, the bakery industry is discovering new dimensions. One can
have now multigrain bread, brown bread, sweet bread or even gluten-free bread
of one’s choice. And it is not only breads which have become healthier. The
same can be said of biscuits, cakes and pastries.

Another trend that has emerged in recent years is a preference for homemade
items. The pure variety of homemade chocolates that becomes available during
festivals points towards the growing demand for such items in the country.

18
Challenges faced by the industry

The growth of an industry also brings in its own challenges and the most
important of them is to expand production capacity to meet the new age
demands. For example, to meet the demand for healthier food, bakery store or
shop need to invest in making the facilities more hygienic and also hiring new
people with knowledge of such products.

Innovating new products is another big challenge for industry in view of

increasing competition in the market. There is also a need to increase awareness
about the digital technologies and convenience of social media platforms that
can help bakeries in the unorganised sector reach a wider market. Currently, the
organised bakery segment constitutes about 62%, whereas the rest 38% belongs
to the unorganised bakery segment in the country.

With the arrival of multinational companies who are selling pizzas and burgers,
consumers' tastes are also changing. Many local and international manufacturers
have occupied the market, and competition is intensifying year by year. The
states such as Delhi, Maharashtra, West Bengal, Karnataka, Tamil Nadu,
Kerala, Andhra Pradesh and Telangana witnessed remarkable growth with the
rise in local and global players.

The bakery industry has also been experiencing certain administrative

challenges. The bakers have to face fluctuating government regulations,
demand-supply chain, and increase in price of few raw ingredients like refined
flour, chief ingredient of almost all bakery products.

Impact of Covid-19 on bakery industry

Unlike most industries, the bakery industry seems to have gained from the
Covid-19 pandemic. The pandemic led to a rise in demand for healthy and
functional bakery items like those which consist of multigrains, nuts and other
healthy ingredients. Consumers are purchasing a variety of bakery products that
are high on the health quotient, as it has been seen that people suffering from
lifestyle diseases such as diabetes, high blood pressure and obesity are more
prone to the deadly infection

According to a research by Mintel, almost three out of four Indians have put
healthy eating as a higher priority. Accordingly the consumption pattern of
bread saw a major shift from white breads towards more multigrain,

19
wholegrain, and specialty, ethnic and seeded breads. This was all due to the
consumer’s desire for nutritious and healthier products

At the other end, the pandemic has paved the way for a clean and hygienic
environment inside the factories, too. Proper maintenance of the machines and
hygiene control are important factors in the production of bakery products.

20
1. C. About the Company:

The key players of the bakery industry are:

 Britannia Industries Ltd

 SUNFEAST by ITC Ltd

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 Britannia Industries Ltd

Britannia Industries Limited is an Indian company specialised in food industry,

part of the Wadia Group headed by Nusli Wadia. Founded in 1892 and
headquartered in Kolkata, it is one of India's oldest existing companies and best
known for its biscuit products. The company sells its Britannia and Tiger brands
of biscuits, breads and dairy products throughout India and abroad. Beginning
with the circumstances of its takeover by the Wadia Group in the early 1990s,
the company has been mired in several controversies connected to its
management. However, it still has a large market share and it is profitable.

The company was established in 1892 by a group of British businessmen with

an investment of ₹295. Initially, biscuits were manufactured in a small house in
central Kolkata. Later, the enterprise was acquired by the Gupta brothers,
mainly Nalin Chandra Gupta, an attorney, and operated under the name "V.S.
Brothers." In 1918, C.H. Holmes, an English businessman based in Kolkata,
was taken on as a partner and The Britannia Biscuit Company Limited (BBCo)
was launched. The Mumbai factory was set up in 1924 and Peek Freans UK,
acquired a controlling interest in BBCo. Biscuits were in high demand during
World War II, which gave a boost to the company's sales. The company name
was changed to the current "Britannia Industries Limited" in 1979. In 1982, the
American company Nabisco Brands, Inc. acquired the parent of Peek Freans
and became a major foreign shareholder.

Biscuits

The company's factories have an annual capacity of 433,000 tonnes. The brand
names of Britannia's biscuits include Vita Marie Gold, Tiger, Nutrichoice, Good
day, 50 50, Treat, Pure Magic, Milk Bikis, Bourbon, Nice Time, Little Hearts
and Toastea among others.

In 2006, Tiger, the mass market brand, realised $150.75 million in sales,
including exports to the U.S. and Australia. This amounts to 20% of Britannia
revenues for that year.

22
Also Britannia Industries has roped in Bollywood actor Salman Khan to endorse
its range of 'Tiger' brand of biscuits. According to Britannia, Khan will play a
role in further enhancing Tiger's core values through his association in
presenting the brand, its products and promotional activities.

SWOT Analysis:

 Strengths

An organization’s capabilities of acquiring more market share, getting more and

more customers, and maximizing profits are noted as its strengths. Following
are Britannia’s strengths:
 
 Brand portfolio: Britannia is the only company in India that offers bakery
products for all income groups which helps them to acquire larger sectors of
consumers. Britannia covers up to 30% of the market share in the biscuit
production of India.
 Excessive brand recall: As the brand deals with a variety of products like
biscuits, dairy products, cakes rusk etc they have high shelf visibility. Also
due to aggressive marketing and advertising, resulted in the brand
establishment.
 Benefiting Indian markets for the last 120 years: it is one of the most
trusted brands in India. An intrepid baker made a bunch of yummy golden
brown biscuits123 years ago in Calcutta. These biscuits were specially baked
for officers of the British Raj who were used to the standard of English tea
time snacking. over a few decades, this company served a large range of
Indian houses with biscuits, dairy products etc. and also some nutritious
food. Today it is one of the leading companies in India with3.5 million retail
outlets 
 Penetration into the market and distribution: The company has large
market network coverage with large SKU’s and making it available through
its vast distribution system, Britannia has entered almost every remote corner
of this world.
 Market leader in the bakery sector: BIL is a major competitor in the
Indian Food market gaining leadership in the bakery and holding 30% of the
market share. It manufactures both tasty and healthy varieties in biscuits,
bread, cake, rusk and dairy products.

23
2. Weaknesses

A company can never be overall perfect in all areas, it does have some weak
areas where there is a need to put some extra effort. Britannia’s major flaws
are: 
 
 Overdependence on biscuit business: 75% of the revenue of Britannia
comes from the biscuit business. Although they hold a larger share in the
market in terms of biscuits, they are over-dependent on that sector which
may affect the company in the longer run.
 Indistinguishable products: As many companies produce similar products
like Britannia for example bourbon biscuit is manufactured by both Parle
and Britannia and many local brands, it creates confusion in the minds of the
customer which results in in in the loss of the company.
 No overseas presence: Britannia has its existence only in Oman and Dubai
apart from India that too from subsidiaries so the overall export of the
commodity is very low.
 Dairy business struggles: Dairy products add only 5%  to the total revenue
of the company.

3. Opportunities

Opportunities are the area where the company needs to focus and improve their
result, sales and also profit.
 
 Upcoming Dairy products: With the emerging organoleptic features in the
dairy sector, improving the dairy products can help the company to gain its
market share and also position itself into the dairy market.
 Demanding healthier products and changing lifestyle: Increasing income,
internet accessibility, education and changing lifestyle are carving more
demand for healthy food products.
 Enter into foreign markets: Penetrating the foreign markets and expanding
over there can help the company to recognize itself globally.
 E-commerce: There has been an increase in the e-Commerce industry’s
sales. This has led to many people now making purchases online. Britannia
can generate revenue by opening online stores and operating through them.

24
 4. Threats
Threats are external that can cause hindrance to the company s growth. Here are
some of Britannia’s threats: 
 Increasing competition: Due to increasing numbers of brands (local brands
such as Anmol, Priya gold etc) the company is not able to differentiate its
products from other brands. This can spoil the brand image of the company in
the market.
 Increasing Price of the raw materials: Increase in the price of the raw
material will eventually increase the price of the product. Further, it will lead to
a decline in the profit margin and reduced consumption as well.
 Buyer’s power increasing: Due to the variety of brands in the market that
claim different Benefits to the consumer, it is becoming difficult for the
consumers to stick to a particular brand. Thus, there is a brand switching by the
consumer and they are getting the power to select the brand based on its
preference, price etc.

25
 SUNFEAST BY ITC Ltd

ITC Limited is an Indian conglomerate company headquartered in Kolkata.[8]

ITC has a diversified presence across industries such as FMCG, hotels,
software, packaging, paperboards, specialty papers and agribusiness. The
company has 13 businesses in 5 segments. It exports its products in 90
countries. Its products are available in 6 million retail outlets.
Established in 1910 as the Imperial Tobacco Company of India Limited, the
company was renamed as the India Tobacco Company Limited in 1970 and
later to I.T.C. Limited in 1974. The company now stands renamed ITC Limited,
where "ITC" today is no longer an acronym. As of 2019–20, ITC had an annual
turnover of US$10.74 billion and a market capitalisation of US$35 billion. It
employs 36,500 people at more than 60 locations across India

Sunfeast is an Indian brand of ITC company, Fast Moving Consumer Goods,

Hotels, Paperboards and Packaging, Agri Business and Information
Technology. In July 2003, ITC made a foray into the biscuits market by
launching the Sunfeast range of biscuits. Sunfeast biscuits have always stood for
quality and are known for offering innovative and wholesome biscuits. The
brand connotes happiness, contentment, satisfaction and pleasure. Sunfeast is a
new brand the conversion rate is considerably high in all the price-quality
points. This signifies that the brand is doing fairly well growing considerably.

Products:

Health Bites: Health bites is a category of sunfeast biscuits which is made

especially for diet biscuits. Sunfeast Marie Light Rich Taste, made from
choicest golden wheat and enriched with natural wheat fibre, these light and
crispy biscuits are perfect tea time partner.
Light ‘n’ Fun: Light ‘n’ fun biscuits are baked to perfection, Sunfeast snacky
classic crackers are light, crispy crackers in two delightful flavours, Sweet &
Salt and Simply Salted.
Cream delight: Sunfeast Dark Fantasy Choco Fills Luxuria, savour the taste of
bliss as bite into the new Sunfeast Dark Fantasy Choco Fills Luxuria. For those
who desire more indulgence in every cookie, the sun-baked rich crust enrobes
the luscious and smooth chocolate in a large sized cookie for a dialed-up
indulgence.

26
Cookies: Sunfeast HiFi Butter Cookies, the perfect blend of golden wheat and
creamy butter baked to perfection. Presenting HiFi Butter Cookies from the
house of Sunfeast, bite into it and give in to the rich goodness that engulfs you.

SWOT Analysis:

1. Strengths:
Good combination of Mid-tier and Mass biscuits – Sunfeast has Glucose
biscuits for the mass segments and also has a variant known as Sunfeast marie
light. Similarly, it has a range of biscuits targeted towards mid-tier and mass
segment. The portfolio is deep but not wide.
Dark fantasy range of premium biscuits – In premium biscuits, Sunfeast has
the dark fantasy range of biscuits for which they had a fantastic marketing
campaign to portray the product as premium. Since its inception, the Dark
fantasy range has worked really well in the market considering there are not
many premium range of biscuits in Parle.
Sub brand of Sunfeast Yippee – Sunfeast Yippee is the snacks
segment concentrated brand which is known for Yippee noodles. Although the
taste is good, the brand has not been able to make a major dent in the huge
noodles market because of the presence of Maggi, Top Ramen, Chings and
Knorr noodles.
Good Products – The products in the present segments are good. Sunfeast has a
range of Digestive biscuits, Glucose biscuits, cookies, premium biscuits and
noodles, all of which contribute to a good product length.
Fourth largest biscuit brand – In the Indian market, Sunfeast is the fourth
largest biscuit brand and is behind Parle, Britannia and Oreo. ITC has many
plans to expand its presence in the biscuit market.

2. Weaknesses:

 Little differentiation – Sunfeast majorly is a market follower and its line of

products are generally copies of products which are already present with
other brands such as glucose biscuits or marie biscuits. The major
differentiation is in Premium category biscuits but it needs differentiation in
mid-tier and mass segment.
 BTL push – Sunfeast being a market follower needs to have an excellent
BTL presence which is not the case. Very less BTL marketing and Point of
purchase branding is observed by Sunfeast.

27
 No cash cows – Major products are stars in the BCG matrix and all
are market challengers or market followers including yippee noodles. ITC is
strictly missing a cash cow for the sunfeast brand.

3. Opportunities:
 Product portfolio expansion – The number 1 opportunity for Sunfeast is to
increase the product portfolio and launch more biscuit variants especially in
the mid-tier segment where there is major chance for market penetration.
Similarly, in Yippee noodles, it needs to experiment with more recipes
which is already being done by Maggi and Chings.
 Using the distribution assets – ITC has a lot of distribution advantage and
Sunfeast can use this distribution to its own advantage by penetrating the
small shop segment and replacing Parle G with Sunfeast brands.
 Using ATL and BTL marketing – ATL marketing for brand retention and
BTL marketing for brand push is required especially if it wants to uproot the
likes of Britannia Marie or Parle G or Good day from the market.
 Building brand drivers – Dark fantasy is an excellent brand driver for the
brand as it is differentiated and it can be used to promote the brand. Similar
brand drivers are needed by Sunfeast to have a higher brand positioning in
the minds of the consumers.

4. Threats:

 Strong competition in Biscuits – Sunfeast faces strong competition in the

biscuits segment from Parle, Britannia, Oreo and regional biscuit
manufacturers. Moreover there is indirect competition in this segment as
well when people opt for some different form of snacks.
 Strong competition in noodles – If the competition in biscuits is tough, the
competition in noodles sounds insurmountable. Maggi comes from the house
of Nestle and has a massive distribution. Chings has fantastic taste and Top
ramen is accepted and liked in most urban areas. With such a strong
competition present, Sunfeast Yippee is finding it hard to establish itself in
the noodles segment.
 New entrants and regional players – India is the number 1 biscuit
consuming nation and hence biscuit manufacturers from across the globe
have its eyes on India. Thus there are regularly new entrants and regional
players who make a dent in the market share of Sunfeast. They are a constact
threat for Sunfeast.

28
 Chapter 2. LITERATURE REVIEW

RATNADEEP ROY ET.AL (2018) our study has led to the creation of
nutraceutical product herbal bread that improves the colour, flavour, texture,
taste, general acceptability, and shelf life of typical bread samples. Analysis
such as Sensory Analysis and ANOVA has been used to improve the herbal

29
bread sample. In our investigation, the most often approved samples are herbs
(5% and 15% w/w), spices (8% w/w), phycoerythrin (20%), ascorbic acid
(10%), yeast broth (5%), and sugar (5%).'s A longer shelf life was observed for
these bread samples when stored at ambient or chilled temperatures as opposed
to room temperature.

SINDHU RAVEENDRAN ET.AL (2018) When it comes to food preparation,

the usage of enzymes or microbes has been around for quite some time now.
Technology has led to the development of new enzymes with a broad variety of
uses, as well as new application areas. Bacteria, yeasts, and fungi as well as
their enzymes are often utilised in food preparations to enhance the flavour and
texture, as well as provide significant economic advantages to the food industry.
Plants and animals favour microbial enzymes because of their ease of
manufacturing, cost-effectiveness, and consistency. Here, we'll take a look at
how enzyme technology has advanced recently in the food industry. Enzymes
employed in food processing, the microbiological source of these enzymes, and
the vast variety of their applications are covered in this article.

SMITA KAGWAD ET.AL (2019) Health, enjoyment, and ease are the
primary drivers of innovation in the bread, bakery, and pastry industries.
Product innovation in bread and other baked goods is being influenced by
current culinary trends, according to this article. Bread and bakery aren't only a
supplement to the food provided in restaurants, but a crucial part of the creative
offers of prominent chefs in new cuisine. Examples of what spurs creativity and
what's essential will be gleaned through a case study of some prominent
Bengaluru-based small businesses and cafés. The bread and dessert business
will also be examined for the impact of these innovation trends.

RIFNA E. JEROME ET.AL (2019) People of all ages across the world like
the taste and digestibility of bakery items, which is why they are so widely
eaten. It has been made even easier to consume these foods by the availability
of a wide range of items such as bread, cookies, muffins, cakes, tortillas, rolls,
wafers, and pies. Many biochemical alterations, complicated interactions, and
physical modifications have yet to be fully understood in the food business due
to a wide range of variables in processing settings and raw material quality. As
a result of the baking process's insufficient integration of controls, several
operational and product problems have been observed. Bakery manufacturers
are increasingly contemplating the use of process analytical technologies
developed by the FDA in order to improve the safety, quality, and efficiency of
30
their goods and processes. This article outlines and reviews studies on the use of
process analytical technologies in the baking sector.

STEPHEN C. NWANYA (2015) The bread supply chain network in Onitsha

City was used to establish optimal inventory levels for different bakery supplies.
Bakeries were asked to fill out a series of structured questions. The model's
optimised design was compared to the already installed systems. N
564,408,477.28 is spent on energy yearly by 90 bakeries with combined
capacity of 3960. In all, 66.75% of this amount is spent each year to fulfil diesel
needs, while firewood and gasoline account for 22.57 and 10.66%, respectively.
According to the ABC research, flour has a content of over 78%, sugar has a
content of 13%, and the other components have a content of 9%. High
operational expenses have been cited as a key obstacle to the sector's expansion.
As a result, the bread sector is less appealing because of the high cost of bread
and low pay. Supply chain competitiveness is enhanced by N 6,957.51 in
savings as a result of optimization technique. In the course of a year, the supply
chain's inventory turnover is measured at 73 inventory rotations. These results,
if followed, would help alleviate the nation's growing food insecurity since
bakeries play an important role in providing food security.

Chapter 3.RESEARCH DESIGN

3.1. Research Objectives:

31
3.2. Problem Statement:
This project is undertaken to understand the market competition
between India’s two leading FMCG companies that is Britannia
and ITC.

3.3. Research Methodology:

For the research report, Primary data has been collected through.
The sources of the secondary data are:
•Articles
•Journals
•Research Papers / White Papers

Chapter 4. DATA ANALYSIS

4.1. Data Collection:

The study is primarily based on research done with the help of financial
statements extracted from company’s official websites and

32
4.2. Data:
Liquidity Ratio:

It is used to analyze a company’s abilities to meet its immediate debt

obligations out of its current assets. The two key financial ratios used to analyse
liquidity are:

33
 Current Ratio: It is also known as the working capital ratio. The current
ratio measures a company's capacity to pay its short-term liabilities due in
one year. The current ratio weighs up all of a company's current assets to its
current liabilities. A good current ratio is typically considered to be
anywhere between 1.5 and 3. It is calculated as –
CURRENT ASSET

CURRENT LIABILTY

COMPANY 2022 2021 2020

NAME
ITC 2.81 3.27 4.13
BRITANIA 0.96 1.22 1.43

CURRENT RATIO

1.43
BRITANIA 1.22
0.96

4.13
ITC 3.27
2.81
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

2020 2021 2022

 QUICK RATIO: The quick ratio is an indicator of a company’s short-

term liquidity position and measures a company’s ability to meet its short-
term obligations with its most liquid assets. Without needing to sell its
inventory or obtain additional financing. It is calculated as:-

CURRENT ASSET - INVENTORY - PREPAID EXPENSES

CURRENT LIABILITY

34
 COMPANY 2022 2021 2020
NAME
ITC 1.91 2.29 3.19
BRITANIA 0.63 0.92 1.14

QUICK RATIO

3.19
ITC 2.29
1.91

1.14
BRITANIA 0.92
0.63
0 0.5 1 1.5 2 2.5 3 3.5

Series 3 Series 2 Series 1

SOLVENCY RATIO:

Solvency analysis is used to analyse a company’s ability to pay off all the
debt it currently holds with its income, assets and divided by or equity. The
two key financial ratios used to analyse solvency are:

 DEBT TO EQUITY RATIO: Debt-to-equity (D/E) ratio is used to

evaluate a company’s financial leverage. D/E ratio is an important metric
in corporate finance. It is a measure of the degree to which a company is
financing its operations with debt rather than its own resources. It is
calculated as:-

35
 Debt/Equity = TOTAL LIABILITY

TOTAL SHAREHOLDER’S EQUITY

COMPANY 2022 2021 2020

NAME
ITC 0 0 0
BRITANIA 0.96 0.59 0.34

DEBT/EQUITY RATIO

0
ITC
0
0

0.34
BRITANIA 0.59
0.96
0 0.2 0.4 0.6 0.8 1 1.2

2020 2021 2022

 INTEREST COVERAGE RATIO: The interest coverage ratio is used

to measure how well a firm can pay the interest due on outstanding debt.
Generally, a higher coverage ratio is better, although the ideal ratio may
vary by industry.

COMPANY 2022 2021 2020

NAME
36
 ITC 346.4 310.6 247.1
BRITANIIA 15.4 23.7 25.0

INTEREST COVERAGE RATIO

247.1
ITC 310.6
346.4

25
BRITANNIA 23.7
15.4
0 50 100 150 200 250 300 350 400

2020 2021 2022

PROFITABILITY RATIO:

Profitability ratios assess a company's ability to earn profits from its sales or
operations, balance sheet assets, or shareholders' equity. Profitability ratios
indicate how efficiently a company generates profit and value for shareholders.

37
  NET PROFIT RATIO: Net Profit Ratio, also referred to as the Net
Profit Margin Ratio, is a profitability ratio that measures the company's
profits to the total amount of money brought into the business. It is
calculated as:-
NET PROFIT X 100

NET SALES

COMPANY 2022 2021 2020

NAME
ITC 25.52 27.17 31.41
BRITANNIA 10.72 14.08 12.01

NET PROFIT MARGIN

31.41
ITC 27.12
25.52

12.01
BRITANNIA 14.08
10.72
0 5 10 15 20 25 30 35

2020 2021 2022

 OPERATING PROFIT RATIO: The operating profit ratio is the

amount of money a company makes from its operations. It demonstrates
the financial sustainability of a company’s basic operations prior to any
financial or tax-related repercussions. As a result, it is one of the better
indicators of how successfully a management team runs a company.
Higher operating profit margin ratios are seen positively

38
 EBIT x 100

SALES

COMPANY 2022 2021 2020

NAME
ITC 34.22 36.51 40.91
BRITANNIA 15.73 19.97 16.70

OPERATING PROFIT RATIO

40.91
ITC 36.51
34.22

16.7
BRITANNIA 19.97
15.73
0 5 10 15 20 25 30 35 40 45

2020 2021 2022

EARNING PER SHARE:

Earnings Per Share is the monetary value of earnings per outstanding share of
common stock for a company. It is a key measure of corporate profitability and
is commonly used to price stocks. It is calculated as:-

NET INCOME – PREFERENCE DIVIDEND

39
 NO OF OUTSTANDING SHARES

COMPANY 2022 2021 2020

NAME
ITC 12.37 10.70 12.47
BRITANNIA 63.31 77.43 58.35

EARNING PER SHARE

12.47
ITC 10.7
12.37

58.35
BRITANNIA 77.43
63.31
0 10 20 30 40 50 60 70 80 90

2020 2021 2022

DIVIDEND PAY-OUT RATIO:

The dividend payout ratio is the proportion of earnings paid out as dividends to
shareholders, typically expressed as a percentage. The amount that is not paid to
shareholders is retained by the company to pay off debt or to reinvest in core
operations. It is calculated as:-

DIVIDENDS PAID

NET INCOME

40
COMPANY 2022 2021 2020
NAME
ITC 38.71 42.16 42.20
BRITANNIA 101.19 147.37 25.81

DIVIDEND PAY-OUT RATIO

42.2
ITC 42.16
38.71

25.81
BRITANNIA 147.37
101.19
0 20 40 60 80 100 120 140 160

2020 2021 2022

4.3. Limitations of the Study:

Qualitative research and physical in-depth interview cannot be conducted. The

biggest limitation to the research was lack of primary data availability and one
to one conversation with the company officials. Much of literature review was
not available. The limitation of my study restricted itself to the analysis of
competition between the companies.

41
4.5. Findings:
Consumer preferences are for better variety of biscuits making market
competitive. Top three players Britannia, Parle and ITC are taking different
routes in rapidly adding their products in premium ranges. According to
industry sources, Britannia is the leading player in cookies segment with market
share of 30%.ITC is on the other hand is a leading player in the cream segment
with market share of 26%.Parle products are number two with 22% in cream

42
and 27% in cookies segment. It is having the top spot with a share of 25% when
two segments are combined. Cookies, the new growing segment, looking for a
big corporate battle between Britannia, Parle and ITC for leadership in the
Indian biscuit. This segment is of Rs 6,800 crore is the fastest-growing in the
biscuit industry unseated glucose as the biggest segment. With a
premiumerisation journey few years ago, Britannia is the first of the three
companies who has taken the challenge and has launched three cookies in the
last three months Tiger Butter Krunch, Nutrichoice, and Good Day Chunkies.
Britannia test-launched the brand Good Day Chunkies on Amazon.com, in a
first for a biscuit company, before taking it to physical stores to increase the
buzz. Parle is always a mass market player in biscuits. With growth of premium
market, as customer’s disposable income increase and taste improves, it made
ample sense for Parle to shift its focus. Parle has made 18 launches in 1 year
ramping up its premium brands portfolio marking a volume presence in the
segment. Recently, Parle has launched products such as Mini Milano, a smaller
variant of the premium Milano chocolate chip cookie, Milano centre-filled
biscuits, Golden Arcs (also centre-filled), Monaco Cream, a variant of the
popular Monaco snacks biscuit, Happy Cream, another cream variant of Parle's
Happy Happy brand and Black Bourbon, a premium variant of the traditional
bourbon biscuits. As looking for lucrative premium segment , ITC is now
planning launch into the cookies segment. The FMCG to tobacco to hospitality
conglomerate is introducing Sunfeast Mom's Magic in the premium cookies
segment. The industry insiders feel that the move by the FMCG giant is aimed
at garnering a sizeable share. Mom's Magic is available in two variants in Rich
Butter and Cashew & Almond, which is also available in Good Day stable. The
range is priced at Rs 10, Rs 15, Rs 20 &Rs 30. Sunfeast is already the third
largest player in the cookies segment in India and offers differentiated products
across price segments. ITC has set the ball rolling with the launch of its
Farmlite cookies, eight months ago, signalling its intent to grab a larger share of
the cookie market. It already has brands such as Delishus and Mom's Magic
operating in the space. Health category in the biscuit market that includes
digestive biscuits is pegged at around Rs 400 crore at present and growing by
15-16% every year. ITC Foods has forayed into digestive biscuit segment to
take on rivals Britannia, McVities and Parle with the launch of Sunfeast
Farmlite Digestive All Good. Its food division, meanwhile, has been beefing up
its Sunfeast brand Dark Fantasy Choco Fills in cookies and Dark Fantasy cream
biscuits. ITC wanted to enter the digestive biscuit segment with a product that

43
completely resonates with needs of a health conscious consumer. It believed
that Sunfeast Farmlite Digestive All Good satisfies the consumer's desire of 'No
maida and no added sugar' in their lifestyle.

Chapter 5. LEARNING OUTCOMES

44
Chapter 6. CONTRIBUTIONS TO THE ORGANISATION

45
Chapter 7. CONCLUSION

46
 BIBLIOGRAPHY

 https://www.linkedin.com/pulse/indias-bakery-industry-report-sunil-
goenka/
 http://ignited.in/I/a/252692

47
 https://pdfcoffee.com/bakery-industry-market-research-in-india-pdf-
free.html
 https://deshicompanies.com/company-profile/sunfeastbrand-company-
profile-wiki-networth-establishment-history-and-more/


PLAGIARISM REPORT

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