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Kanpur bakeries on verge of closure - U.P govt needs to take action

Kanpur bakeries are on verge closure as the prices have spiralled out of control . Big companies and multinational have economies of scale in their favour . Competing with these big companies have become impossible and population in rural areas have shifted their loyalties towards these big companies .The state government has also discontinued the ‘compounding’ facility provided to the small bakers with more than four burners.
There was provision of mere 3-4 per cent trade tax under the compounding system while now it has risen to 12.5 per cent under value-added tax (VAT) system. Quota for small bakeries for flour and sugar has been discontinued by govt .

Smaller companies give employments to thousands of local population . Around 44 small and medium units have closed down in past four years in the city itself confirmed by UPBMA - Uttar Pradesh Biscuit Manufacturer Association .

UP govt has to take appropriate steps to prevent loosing jobs or extinction of these once prosperous bakeries .

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Shakti - Bhog to enter biscuit market

shakti bhog divs ,shakti bhog enters biscuit market , shakti bhog brand , shakti bhog atta
Shakti bhog foods India major branded wheat flour manufacturer which sells its product by the name of "shakti bhog" has decided to enter Indian biscuit market by launching healthy biscuits with brand name of 'Div'. Organised Biscuit market is estimated to Rs 9000/- crore . The dominant players are Parle , Britannia , ITC , Pepsico and Priya Gold .

Shakti Bhog foods natural extension would have been bakery products and with decision to go for biscuits they have started commissioning its plant at Haridwar with investment of Rs 75.0 crore . The focus of the company will be on “health biscuits”, with the primary ingredients being wheat, fibres, oats and multigrains, according to Shakti Bhog Foods Managing Director K K Kumar.
They expect Rs 250.0 crore annual turnover from biscuits .They roped in Karisma Kapoor for the ad campaign worth Rs 15.0 crore .

Shakti Bhog is famous brand for wheat flour and have share upto 60% market share in Northern region of India . Shakti bhog group turnover is approx Rs 2000/ crore .

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