What Make s Indian Bakery Market So Hot For Major International Companies

We have been witnessing  major international bakery companies  making beeline  to Indian bakery segment in recent times  with latest news of Kraft joining  the rank .

In  one of the my earlier  articles   I have mentioned about  failed attempts by mnc  to establish themselves  in bakery segment . But  that was in past   few factors  have  now  turned Indian bakery segment as  favorites for international biggies .

Here are few major reasons

Liberalised economy,  gone are they days for licence raj  .Present policies have  been opened for foreign participation in bakeries earlier restricted for  domestic players .

Economic slowdown across  the developed nations . With China and India having impressive growth rate for  decades  .These markets gives avenues  for growth to these companies. Bakery industry along with booming economy has been clocking  20% annual growth .


Disposable incomes  with  large middle class has  made consumers to try out  various bakery products which were out of the reach few years back.


Low competition   with  few  big local players on national scene  gives  big opportunities to these multinationals  to  enter  huge market  worth  Rs 12,000/ crore .


Availablity  of  Low cost technology and skilled manpower   makes manufacturing  attractive  for  these foreign companies


Availability of  raw material (  flour ,sugar ) except for  fat ( palm oil) which now being imported from   Asean countries  also  makes Indian market more lucrative .


Here are  major   multinationals   which have registered their presence in  Indian bakery  market in recent times

Kraft  Food Inc
United Biscuits 
Pepsico
GSKB ( Glaxo Smithkline )
Dunkin Donuts
Starbucks
Cinnabon
Unibic

Australian Foods ( Cookieman)
Lotte
Ceylon Biscuits Ltd

Cadburys To Launch Oreo In India By April End

After much  of anticipation  from  Kraft to launch Oreo in India  finally  Cadbury now  under Krafts  food division here in India  would  launch  world  famous  Oreo biscuits . As were the  flurry of activities were enough for people in the market  to guess about the launch and recent being the law suit by Kraft against local giant Britannia .  As reported in news  Cadbury  would be launching Oreos by April  end  and would manufacture the biscuit here locally. Mrs Bector's Food Specialities  will  supply  locally made  Oreos  to Cadbury thus bringing down cost of  Oreos( HT) . Indian Biscuit  industry  would not  be the same if  Krafts goes   for  aggressive launch  and marketing . Competition  would  be from  local Big 3  Britannia, Parle and ITC   and new mnc's entrants like  United Biscuits , Pepsi  and  Unibic .Recent launch of  Treat -O  from Britannia and Dark Fantasy  from  ITC   can be seen  as competition in this  segment .Britannia would be impacted most as the leader in premium segment of biscuits with brands such as Pure magic and  Cream  Treats  . Oreo  has  already  taken  over  Chinese biscuit  market  being leader in this  category . Imported Oreos was already available in select  stores  across India ,at price tag  of  Rs 50/-  for 14 biscuits . It plans to take on low cost strategy  to compete with  local brands from Rs 5/- for 3 , Rs 7/- for 10  and Rs 20/-  for 14 biscuit  thus relying on volumes to make margins(TOI) .  Its  also a big news for biscuit   raw material, equipment , packaging  suppliers and advertisers .

A report in Deccan Herald

Confectionery maker Cadbury India today announced its entry into the country's estimated Rs 12,000 crore biscuit market through the launch of 'Oreo' brand from the global portfolio of its parent Kraft Foods.

"The introduction (of Oreo) marks the entry into a new category in India, with the aim to make the world’s favourite biscuit, Oreo, one of India’s favourite biscuits," Cadbury India said in a statement.

Oreo is around 100 years old brand and currently generates a revenue of USD 1 billion globally. In India, the company will be launching the biscuit in dark chocolate flavour.
"Introducing Oreo marks the beginning of our journey in this growing category and we are readying ourselves to make Oreo a preferred choice with Indian consumers," Kraft Foods President South Asia and Indo-China and Cadbury India Managing Director Anand Kripalu said.

source :
Deccanherald.com

Cadburys major products have been  5 star , Bournvita , Perks, Dairy Milk Chocolates  with only products from Krafts food portfolio being  Tang .It would be first time that Cadbury India forays into  biscuit segment .Cadbury would promote Oreo as its brand here in India .At the end  it would be the Indian consumers who would be benefited the most .

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