Bakery products have shown a marked improvement in volumes and customer base

Published: 04th February 2011
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Areas in bakeries operation where Automation can be done are:- Material handling, Pre -Mixing and Mixing, Forming and Laminating, Oven, Tracking of wire bands in biscuit lines are done through sensors installed, Packaging, Biscuit Packaging is than done through horizontal wrapping machine with operations like pack , prints and seals. Packaging ideas for bakery products include: Flexible packaging (laminates, wrappers) (most common method of packaging material used to pack bakery products today), Plain cardboard Boxes, Display Boxes, Vertical Pouches or Sachet, Tins or Metallic Boxes, Pvc Trays, Poly bags etc. Indian bakery is poised for an exponential growth in view of changing life style, rapid urbanization and increased awareness amongst consumers on healthy and safe food.



Ideally, strategic planning at the national level and exporting are only two facets of a unique master plan. Companies will gain from exporting:- Expanded markets and increased sales; better use of resources made possible by greater volume; safety from economic fluctuations on the domestic market; Increased company expertise and experience proving valuable asset even on the domestic market. Still the main constraints are: Increased fees and administrative workload; Increased financing requirements; Increased pressure for current employees, especially key players; Increased training requirements etc. Domestically, with a population of 1 billion plus, India has the largest middle-income consumers, who demand varieties in food, clothing, transport and improved living standards, also wish to eat out. Opportunities, in abundance, exist in Bakery Cafes and Restaurants, those who cater fast foods, are another fastest growing sector in India. Govt. of India encourages the Small and Medium Enterprises (SME) with very attractive financing schemes, to modernize and up-grade their units. This has opened up opportunities not only to SMEs but also to those in the bakery trade to supply the new technologies. The strong regular coordination is required among Associations, Research and Training Institutions, Suppliers of Machinery, Accessories, Ingredients, Packing Materials, Food Laws, Regulations, Taxes and much more.

Some of the key issues the industry facing include availability of finance and skilled manpower and require more training institutes on catering technology and also introduce food laws compulsory for all hotel management students with banks and financial institutions to extend credit at competitive interest rates so that more and more entrepreneurs would venture into food business. The bakery machinery industry is poised to witness a growth of 50% in the coming years and Indian baking machinery are cost competitive than most of the imported machinery from Europe. However, the Chinese machinery is posing a challenge for the Indian manufacturers. Bakers need to adopt technology on par with global standards to make the Indian baking industry globally competitive. Foreign Markets are more profitable and have greater demand than the domestic market. Opportunities are plentiful across the globe, no more so than in emerging markets such as South America, Eastern Europe, Russia, and parts of Asia and Africa. Entrepreneurial companies, in particular, must take advantage of them. As development costs soar and product life cycles get shorter, small companies will need to sell in as many markets as possible to make a reasonable profit --- maybe even to survive.

The bread and biscuits segment alone accounts for over 70% of the bakery industry, which is mostly in the unorganised sector. Increased competition and changing customer choices have made the Indian bakery manufacturers to look for sophisticated baking equipment and technology to sustain growth and standard. The Indian bakery market valued at around Rs 5,000 crore is expected to reach much more by 2012, which is split into the rural market i.e. 22.5 percent and the urban market i.e. 77.5 per cent, of the total market divided into cakes, pastries, bread and unpackaged biscuits etc. Bakeries world over are now opting to automate their operations due to shortages in labour, to increase productivity, save time and safety. Automation is also much cost intensive hence bakery owners avoid putting money in the automation projects plus the skills to operate this system has a cost. Spares and Inventory is also a problem for these small to medium plants. Even with this disadvantage automation has benefits for large or big bakery plants which results in better productivity and cost savings. Exporting only makes sense if the process contributes to the attainment of company objectives, which involve survival and, in most cases, profitability and growth. Therefore, the decision to export or not must be made with the same thoroughness and the same objectivity as any other decision involving the expansion of the company.

Exporting only makes sense if the process contributes to the attainment of company objectives, which involve survival and, in most cases, profitability and growth. Therefore, the decision to export or not must be made with the same thoroughness and the same objectivity as any other decision involving the expansion of the company. Ideally, strategic planning at the national level and exporting are only two facets of a unique master plan. Companies will gain from exporting:- Expanded markets and increased sales; better use of resources made possible by greater volume; safety from economic fluctuations on the domestic market; Increased company expertise and experience proving valuable asset even on the domestic market. Still the main constraints are: Increased fees and administrative workload; Increased financing requirements; Increased pressure for current employees, especially key players; Increased training requirements etc. In case of Biscuits, the growth rate is as per this table:

Over the past few years' bakery products have shown a marked improvement in volumes and customer base, mainly from bread and biscuits segment which constitute around 75% of the Indian bakery market and the bread to some extent is consumed as a food supplement in the urban areas. Other bakery products like cakes and pastries are also on the growth mode but these products do not yet have a mass appeal and are basically centred on the urban areas that also concentrated among local manufacturers holding a sizeable chunk of the market. Realizing the mental block against premium bakery products companies employed a two-pronged strategy, especially in biscuits. To gain volumes these companies continued to back glucose biscuits aimed at the mass, and for margins they continued to stack up their portfolios with new brands and variants.

Domestically, with a population of 1 billion plus, India has the largest middle-income consumers, who demand varieties in food, clothing, transport and improved living standards, also wish to eat out. Opportunities, in abundance, exist in Bakery Cafes and Restaurants, those who cater fast foods, are another fastest growing sector in India. Govt. of India encourages the Small and Medium Enterprises (SME) with very attractive financing schemes, to modernize and up-grade their units. This has opened up opportunities not only to SMEs but also to those in the bakery trade to supply the new technologies. The strong regular coordination is required among Associations, Research and Training Institutions, Suppliers of Machinery, Accessories, Ingredients, Packing Materials, Food Laws, Regulations, Taxes and much more.

Indian Bakery sector is indicating significant growth both in terms of volumes and customer base. The two factors that drive the bakery products are disposable incomes and time constraints in the working population. Bakery products like breads, biscuits, muffins, pastries, burgers and pizzas are much-sought-after over complicated snacks. The entry of international fast food chains and various other local spin-offs are a clear indication of the current trends.



Biscuit is the only nutritious mass based food product and principally caters to children, lower income groups and the rural population. Therefore it needs to be made more affordable. NCAER study shows that 50% of biscuits are consumed in rural areas across the country. A case in point is that biscuits are considered to be so highly nutritious that the United Nations through the World Food Programme (WFP) organization supplied biscuits from India to Afghanistan, Iraq and the tsunami hit areas of Indonesia. Not only this, biscuits are supplied to the tribal belts in Uttranchal, Madhya Pradesh and Orissa, free of cost, to students in schools to take care of their nutritional needs. The penetration of branded product in this segment is quite significant, and is valued at Rs 2,500-3,000 crore. None of the other wheat-based segments is as developed as the biscuits industry. The biscuit segment has developed with large markets of mass consumption covering over 90% of the overall potential market. The unorganised sector accounts for over 50% of the market. The market has been growing at a CAGR of 6-7% pa.

The key challenges before food experts are the need for flavour and appearance of food products. Bakery foods are no exception. Going by the growth of the bakery industry, there is need for lots of flavour enhancers, gluten enhancers and binders which give out softer or more flavored versions of the products. The fastest growing products in the bakery segment include pizzas, burgers, and pastries such as mousse cakes, fresh cream pastries, croissants, flavored muffins and flavored breads which are catching the fancy of people.

Biscuits are an important item of bakery industry and common items of consumption among all classes of people. With tea or coffee, a biscuit makes a tasty nutritious snack. It is highly nutritious easy to digest can be preserved for a long time. By varying the ingredients and flavors it is possible to produce variety of biscuits. About 50 percent of the total biscuit production in our country is of glucose. It is highly demandable product. The demand is continuously growing. The demand match with some new units installed and bright scope for existing manufacturers as well as new entrants.


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