Industry Overview: India’s Biscuits Industry came into the limelight and started gaining a good status in the bakery industry in the latter part of the 20th century when the urbanized society called for ready-made food products at a tenable cost. Biscuits were assumed as a sick man’s diet. Today Indian  Biscuits Industry is the largest among all the food industries and has a turnover of around Rs.3000 crores. India is known to be the second-largest manufacturer of biscuits, the first being the USA. It is classified under two sectors: organized and unorganized. Bread and biscuits are a significant part of the bakery industry and cover around 80 percent of the total bakery products in India.

Biscuits stand at a higher value and production level than bread. This belongs to the unorganized sector of the bakery industry and covers over 70% of the total production. The whole production of bakery products rose from 5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990. Biscuits contribute to over 33 percent of the total production of bakery, and above 79 percent of the biscuits are manufactured by the small-scale sector of the bakery industry comprising both factory and non-factory units.

It has become one of the most loved fast food products for every age group. Biscuits are easy to carry, tasty to eat, cholesterol-free, and reasonable at cost. Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh have the larger intake of biscuits. Maharashtra and West Bengal, the most industrially developed states, hold the maximum consumption of biscuits. Even the rural sector consumes around 55 percent of the biscuits in the bakery products.

The Indian biscuit industry has occupied around 55-60 percent of the entire bakery production. A few years back, large-scale bakery manufacturers like Cadbury, nestle, and Brooke bond tried to trade in the biscuit industry but couldn’t hit the market because of the local companies that produced only biscuits.

The share of premium biscuits is likely to increase by FY 2019 as manufacturers are now aggressively entering the premium biscuit and cookie segment on account of higher margins prevalent in part, increase in disposable income, changing lifestyles, and growth in organized retail. In addition, increasing consumption of processed and packaged food is the industry’s main driver.

Today Britannia, ITC, and Parle are among the most prominent players in the Sector.

Company overview: Britannia Industries, Part of Wadia Group, is a manufacturer of Biscuits, Cake, and Rusk. The company is a significant player in the Indian Foods market with a leadership position in the Bakery category.

Products: Biscuits

  • Good Day
  • Crackers
  • NutriChoice
  • Marie Gold
  • Tiger
  • Milk Bikes
  • Jim Jam + Treat
  • Bourbon
  • Little Hearts
  • Pure Magic
  • Nice Time.

Other

  • Whole Wheat Bread
  • White Sandwich Bread
  • Bread Assortment
  • Cheese
  • Fresh Dairy and Accompaniments
  • Bar Cakes
  • Veg Cakes
  • Chunk Cake
  • Nut & Raisin Romance Cake and Mufills
  • Premium Bake Rusk

The Company’s plants are in Kolkata, Delhi, Chennai, Mumbai, and Uttarakhand.

SHAREHOLDING

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Future Prospects: As disposable income is expected to increase, the demand for biscuits will also increase. The hurdle for the sector is awareness about health and fitness. Britannia also manufactures products for the segment with a different name and needs. As the brand name is enormous and the company also holds a significant market share and distribution network, hardly is there an issue for the company.