". Bakery Industry: Bakery industry in India

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Showing posts with label Bakery industry in India. Show all posts
Showing posts with label Bakery industry in India. Show all posts

Britannia controls 100% of Daily bread

Bakery major Britannia has increased its stake from 50% to 100% in its jv with Daily bread which it acquired in 2006 . This would help Britannia to consolidates its presence in bread markets . It has not rolled out this brand nationaly as they are testing local markets with concepts like retail bakery chains with cafe like ambience .

Read article on ET

Bakery retail chains in India

Retail chains are fast gaining popularity in upscale markets in India .These are speciality product chain and offers quality premium products .This has been very popular abroad ,until now people have been going to restaurant or coffee houses . Retail chains have mushroomed all over metros where you can see people spending lavishly on bakery products . Rise in disposable income ,change in eating habits ,people preference for ambiance and service have contributed towards this trend . Even coffee houses are now supplementing there stores with bakery products .Most popular products are cakes , sandwiches , pastries ,puffs ,pizzas ,croissant .They also provide home delivery and take home packing's .

Concepts of retail bakery is that the chain has a central kitchen which produces all these products and then from these kitchens products are moved out to retail shops on regular intervals .Few malls and supermarkets have put bakery products on their food courts .

To name few bakery chains across country

Bisk Farm
Bread Talk
Hot Bread
Cookie Man
Birdy s
Cafe Coffee Day
Donut baker
Donut Master
Kookie Jar
Bagels and Brownies
Bread & More
Dunkin Donuts
Krispy Kreme

and many more

So enjoy your visit to these retail bakery chain

What is zero trans fat

Fat is major Ingredient of any bakery product after flour and sugar . Fat is considered to result any many diseases and main factor for obesity.
Bakery product manufacturer has started labeling as zero trans fat product . This is due to heighten consumer awareness and other international brands like Mcvities and other declaring there product as zero trans fat .Any serving have less than 0.5grams of trans fat and it doesn't mean that it has zero fat .
Trans fat (also known as trans fatty acids) is formed when liquid vegetable oils go through the chemical process of hydrogenation to make the oils more solid. This gives food a longer shelf-life and can improve taste, shape and texture. Some trans fat also is found naturally in small amounts in certain meat and dairy products.

Partial hydrogenation, the process used to increase shelf-life of polyunsaturated fatty acids (PUFAs) / vegetable oils creates trans fatty acids. Many studies have demonstrated that trans fatty acids increase the clot forming tendency much more than saturated fats, by not only increasing LDL cholesterol to similar levels but also by decreasing the high density lipoprotein (HDL) cholesterol, (which is the good cholesterol). Several studies have found that intake of non natural trans fatty acids increases the risk of coronary heart disease Most trans fatty acids are contributed by industrially hardened oils. Even though trans fatty acids have been reduced or eliminated from retail fats and spreads in many parts of the world, generally available deep-fried foods and baked goods are a major and increasing source.
These are then substituted by Palm oil , Palmolien , Fully hydrogenated vegetable oil

Outsourcing manufacturing in Bakery Industry

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
Major disadvantage of outsourcing  is  loosing grip over quality  as outsourced  manufacturer might be lax  on quality issues .

 . So if you have money contact these manufacturer,negotiate your price for your type of recipe , packaging and sell .

Regional bakery brands

Apart from the BIG 3 of Indian bakery industry , few regional players have made a mark in their respective zone .Few names which I can highlight are
  • RAJA
  • BONN

Major Brands of biscuit

Please add brand which I might have missed out

BRITANNIA our own multinational food company

Whenever we go to supermarket to do our monthly grocery shopping we have always seen products stacked are either imported from other countries or manufacturing out sourced here in India . Let it be Pepsi , Coke ,Unilever, Kellogs , Horlics, Cadbury , Nestle --- etc . I was always wondering whether there could be an Indian food company which can match these multinational .With recent takeover s by Lakshmi mittal , Tatas , Birlas , Ranbaxy ,Infosys , Tcs , Videocon we hoped that this will also happen in food industry . Its not that we don't have companies which have potential to become one but I think sheer magnitude of acquiring and competing in foreign land have deterred our companies . To name few
ITC , Parle , Britannia , Amul ,HaldiRam , Dabur --- many more

Britannia 's acquisition of two companies in middle east namely Strategic food international co llc, Dubai ,UAE and Al sallan food Industries ,Sohar ,Oman and recent collaboration with srilankan company has at least taken a lead in food companies to acquire a MNC status, which would give other players a good competition in foreign market .

Britannia with product basket of numerous biscuit and cookies has potential to become a major player in international market .With skilled manpower and R&D in place it can look beyond our shore to compete internationally

Why MNC have failed in Indian Bakery Industry

Indian bakery today stands for Rs 6000 Crore Industry . Since opening of our markets for Overseas companies Bakery Industry is the Industry which these Multinationals have not able to crack where as in other industries they have remarkable presence like Pepsi , Coke , Unilever , Samsung , LG , Panasonic , Nike , Adidas , Citi , Hsbc , Procter and Gamble ,Colgate List goes on ---- . Companies like Excelsia , Unilever , Kellogg's ,Kraft ,United Biscuits ,Ceylon Biscuits , Unibic are either launched / trying to launch their products/ or have very negligible presence .

The reasons which can be attributed to failure of MNC in bakery Industries can be attributed to .

1. Jv These companies have tried to enter Indian market through partners .

2. Indian Competition was stiff from very much entrenched players like Britannia and Parle

3. Pricing done by these companies was on the on the premium side hence didn't get mass market slice .

4. Recipes which were not palatable to Indian tastes . Even Macdonalds and KFC have got Indian variants.

Parle G the undisputed leader in Glucose biscuit

parle g , parle glucose , parle glucose biscuits , parle g biscuit
I was just wondering how come Parle G has maintained its leadership for such long in glucose variety .Even when you had competitors like Britannia presence in market .Major Points which come in my mind are following .

Recipe: Parle G Recipe has been unique and all of it characteristic like bite , baking ,taste and aroma stands different from other brands of glucose. Britannia early response was with a product known as Glucose -D .Now of course they have launched new product called Tiger which has got substantial share of glucose market but yet it has to catch up with Parle -G

It started early .Parle was the one which started glucose biscuit in mass production .

Marketing : Its penetration to entire spectrum of market is envious . You can find Parle G in any corner of India .Of course the packaging with the child with a smile over its pack has won million consumer . The target consumers have been children who are dominant part of consumer base .

Read recent article on Parle g

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