Maximum number of Bakery product manufacturers are outsourcing their manufacturing activity .It make sense also with overhead cost spiralling up outsourcing becomes the most
obvious route . The Big 3 (
PARLE , BRITANNIA ,
ITC ) all have outsourced their most of manufacturing to contract manufacturers . Contract manufacturers are paid for conversion of raw material into finished product . Contract manufacturers liabilities are labour , legal , land ,maintenance ,utilities and other local laws .This allows these Major players to focus on marketing , brand development , R&D
activities . Contract Manufacturers also have business to run
OR to run plants full time and can build own brand . This is also termed as Third party manufacturing or private label .
This helped number of factory owners to generate business , give
employment to large number of people .
This concepts has also caught attention of entrepreneurs who outsources bakery product with
there own recipes , brand and packaging .
Entrepreneurs or businessmen from developed economies outsource products from low cost countries label it and then sell them in their own market .In process make good profit .
For countries where bakery manufacturing is not so much developed ,people outsource these products from manufacturers ,these could be classic example of trading .
So if you have money contact these manufacturer,negotiate your price for your type of recipe , packaging and sell .
