Biscuit Industry - Ganpat University Institutional Repository

A
Research Proposal
For
Management Research Project - I
On
“Bakery And Confectionery Industry With Special Focus On Biscuit Products”
Submitted By:
Name
(Roll No.)
Goswami Komal P.
Kalotara Sagar M.
Khatana Pravin M.
Patel Dhruv R.
Patel Malay K.
12044311029
12044311037
12044311039
12044311080
12044311105
M.B.A. Semester III
Under the Guidance of:
Prof. (Dr.) Mahendra Sharma
Prof. & Head
V. M. Patel Institute of Management
Ms. Harsha Jariwala
Prof. Abhishek Parikh
Faculty Members
V. M. Patel Institute of Management
Submitted To:
V. M. Patel Institute of Management
Ganpat University
(2013)
CERTIFICATE BY THE GUIDE
This is to certify that the contents of this report entitled “Bakery And Confectionary Industry With
Special Focus On Biscuit Product” by Goswami Komal, Kalotara Sagar, Khatana Pravin, Patel Dhruv,
Patel Malay submitted to V. M. Patel Institute of Management for the Award of Master of Business
Administration (MBA Sem-III) is original research work carried out by him/her/them under my
supervision.
This report has not been submitted either partly or fully to any other University or Institute for award of
any degree or diploma.
Prof.(Dr.) Mahendra Sharma
Prof. & Head
V. M. Patel Institute of Management,
Ganpat University.
Kherva.
CANDIDATE’S STATEMENT
I/We hereby declare that the work incorporated in this report entitled “Bakery And Confectionary
Industry with Special Focus on Biscuit Product” in partial fulfillment of the requirements for the award
of Master of Business Administration (Sem. – III) is the outcome of original study undertaken by me/us
and it has not been submitted early to any other University or Institution for the award of any Degree or
Diploma.
Goswami Komal P.
Kalotara Sagar M.
Khatana Pravin M.
Patel Dhruv R.
Patel Malay K.
Date:
Place:Kherva
Preface
“Theory without practice has no fruit
Practice without theory has no root.”
It is a great experience being a part of corporate world. Real MBA can be achieved only with
such practical implications. We are very thankful to V.M Patel Institute of Management who
planes such learning programs for its students.
It is matters of proud to be students of such great university where in students are helped to
extract hidden potentials from their selves. We are highly Thankful to all the Faculties of the
department who guided us all the way long as how the entire MRP 1 report is to be conducted.
As a management student, we must have some practical knowledge regarding research and
research methodology.
The education institutions offering management programs play a significant part in un
calculating the much needed managerial skills in their students, the aspiring managers. The real
success of management lies in applying the professional management techniques in all
managerial activities. Practical study is eminent, and plays vital role for the students of
management, because classroom coaching and theoretical study alone are not enough. To survive
in this highly competitive world, practicality outweighs theoretic. Students are supposed to learn
the various principles of business administration conceptually but accuracy and efficiency in
their implementation is possible only through exposure to practical environment.
We have tried our best and have applied all our efforts, knowledge and sources available, in this
project.
Here we try our level best for finding data.
Acknowledgement
It is with profound in deftness that we acknowledge the efforts of all the well-wishers who have
in some or the other way contributes in their own special way to the success of this project.
We would like to express deep sense of gratitude to Dr. Mahendra Sharma. We would also
thankful to Prof. Harsha Jariwala & Prof. Abhishek Parikh for their advise, constant
encouragement and timely help throughout the course of our project.
We would like to thank Prof.Harsha Jariwala & Prof. Abhishek Parikh for provide us this golden
opportunity for preparing report and provide us guideline regarding project report.
We would like to thank all the respondents who give their valuable time for filling questionnaire
and provide necessary information regarding our project report.
Last but not the least we thank all the persons who have directly or indirectly support in this
project report.
Executive Summary
The estimate made by the Ministry of Food Processing Industries (1998), the total market of
bakery product, bread and biscuit is estimated at 1.5mn ton and 1.1mn ton respectively. The cake
market is estimated at 0.4mn ton. The organized segment of the biscuit market is estimated to be
0.44mn tons whereas the unorganized sector accounts for the balance 0.66mn tons.
The confectionery industry has a current capacity of 85, 000 tones, the market is growing at the
rate of 10-15% per annum. The estimated annual production of bakery products in India is in
excess of 3 million tones, of which bread accounts for nearly 50% and biscuits 37% in volume
terms in the organized sector. The bakery sector in India is one of largest segments of the food
processing industries; annual turnover in value terms is approximately
$ 900 million.
Chocolates, hard-boiled sweets, chewing gum and other products are a major growth area. The
bakery industry includes basic baked products like breads, biscuits, cakes, pastries, rusts,
Buns, rolls etc.
The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus' (meaning
cooked or baked). The word 'Biscotti' is also the generic term for cookies in Italian. Back then,
biscuits were unleavened, hard and thin wafers which, because of their low water content, were
ideal food to store.
Biscuit industry in India in the organized sector produces around 60% of the total production, the
balance 40% being contributed by the unorganized bakeries. The industry consists of two large
scale manufacturers, around 50 medium scale brands and small scale units ranging up to 2500
units in the country. The unorganized sector is estimated to have approximately 30,000 small &
tiny bakeries across the country.
The annual production of biscuit in the organized sector, continues to be predominantly in the
small and medium sale sector before and after de-reservation. The annual production was around
7.4 Lac tonnes in 1997-98 in the next five years, biscuit production witnessed an annual growth
of 10% to 12%, up to 1999-00.
In order to conduct this MRP-1 report we have done primary research to know the performance
of four major biscuit players with respect to customer loyalty. We have also done the financial
analysis of four major players of biscuit industry through secondary data for last five years,
which includes aggregate industry ratio analysis, separate company’s ratio analysis, aggregate
industry sales trend of last ten years and production trend of last five years.
We have also done the various analysis like SWOT Analysis, five force model, PESTL
Analysis, Strategic Group Mapping,
INDEX
Sr.No
•
CERTIFICATE BY THE GUIDE
Page
No
I
•
CANDIDATE’S SATELMENT
II
•
Preface
III
Particular
•
•
1
1.1
Acknowledgement
IV
Executive Summary
V
INTODUCTION
1
2
3.2
Introduction of Bakery and Confectionary Industry in India
History of Biscuit Industry
Industry Profile
Booming with Biscuit
Brands of Major Biscuit Manufacturers
Industry Framework
Biscuit Industry life cycle
Biscuit Making Process
Major Biscuit Industry Players in India
Parle
Britannia
Sun Feast
Priyagold
Strategic Analysis and Models
SWOT Analysis
PESTL Analysis
3.3
Porters Five Force Model
43
3.4
Strategic Group Mapping
Driver Forces
Ratio Analysis
Trend Analysis of Production and Sales
Companies Ratio Analysis
46
Business Plan
Project Profile
Introduction
Vision
61
1.2
1.3
1.4
1.5
1.6
1.7
1.8
2
2.1
2.2
2.3
2.4
3
3.1
3.5
4
4.1
4.2
5
5.1
5.2
5.3
3
11
15
16
17
18
20
22
23
26
29
31
37
38
41
50
51
52
54
62
63
64
5.4
5.5
5.6
5.7
5.8
6
6.1
6.2
7
Mission
Selection of the project
Marketing Channel
Plant Location
Finance
Conclusion and Findings
Conclusion
Findings
Bibliography
Annexure
64
64
65
66
67
77
78
80
81
83
INTRODUCTION
1.1 INTRODUCTION OF BAKERY AND CONFECTIONARY INDUSTRY IN INDIA
The estimate made by the Ministry of Food Processing Industries (1998), the total market of
bakery product, bread and biscuit is estimated at 1.5mn ton and 1.1mn ton respectively. The
cake market is estimated at 0.4mn ton.
The organized segment of the biscuit market is estimated to be 0.44mn tons whereas the
unorganized sector accounts for the balance 0.66mn tons. Bread market is estimated to be
growing at around 7% pa in volume terms, whereas the biscuit market in the recent years has
witnessed a little higher growth at around 8-10% pa. Within the biscuit category, cream and
specialty biscuits are growing at faster pace at 20% pa, while the popular segment is growing.
Besides the industrial areas in leading metropolis the bakery product & confectionery are
carried on small- scale basis also at household level. Whereas, the confectionery industry has
developed remarkably with the international brand mingling with the domestic market toffees,
chocolates etc. produced at large scale in important industrial regions of the country.
Growth promotional activities in 1977- 78 Government reserved the confectionery bread and
biscuit manufacturing for small scale and restricted entry of large producers. During the last 2
decades, small and unorganized players shared the growth in the industry. Currently, there are
an estimated 2 million bakeries across the country engaged in production of bread, biscuits
and other products.
The Indian confectionery market is segmented into sugar-boiled confectionery, chocolates,
mints and chewing gums. Sugar-boiled confectionery, consisting of hard boiled candy, toffees
and other sugar-based candies, is the largest of the segments and valued at around Rs 2,000
crore.
The confectionery industry has a current capacity of 85, 000 tonnes, the market is growing at
the rate of 10-15% per annum. The estimated annual production of bakery products in India is
in excess of 3 million tonnes, of which bread accounts for nearly 50% and biscuits 37% in
volume terms in the organized sector. The bakery sector in India is one of largest segments of
the food processing industries; annual turnover in value terms is approximately $ 900 million.
1.2 HISTORY OF BISCUITS INDUSTRY
Sweet or salty. Soft or crunchy. Simple or exotic. Everybody loves munching on biscuits, but
do they know how biscuits began?
The history of biscuits can be traced back to a recipe created by the Roman chef Apicius, in
which "a thick paste of fine wheat flour was boiled and spread out on a plate. When it had
dried and hardened it was cut up and then fried until crisp, then served with honey and
pepper."
The word 'Biscuit' is derived from the Latin words 'Bis' (meaning 'twice') and 'Coctus'
(meaning cooked or baked). The word 'Biscotti' is also the generic term for cookies in Italian.
Back then, biscuits were unleavened, hard and thin wafers which, because of their low water
content, were ideal food to store.
As people started to explore the globe, biscuits became the ideal travelling food since they
stayed fresh for long periods. The seafaring age, thus, witnessed the boom of biscuits when
these were sealed in airtight containers to last for months at a time. Hard track biscuits
(earliest version of the biscotti and present-day crackers) were part of the staple diet of
English and American sailors for many centuries. In fact, the countries which led this
seafaring charge, such as those in Western Europe, are the ones where biscuits are most
popular even today. Biscotti is said to have been a favourite of Christopher Columbus who
discovered America!
Making good biscuits is quite an art, and history bears testimony to that. During the 17th and
18th Centuries in Europe, baking was a carefully controlled profession, managed through a
series of 'guilds' or professional associations. To become a baker, one had to complete years
of apprenticeship - working through the ranks of apprentice, journeyman, and finally master
baker. Not only this, the amount and quality of biscuits baked were also carefully monitored.
The English, Scotch and Dutch immigrants originally brought the first cookies to the United
States and they were called teacakes. They were often flavoured with nothing more than the
finest butter, sometimes with the addition of a few drops of rose water. Cookies in America
were also called by such names as "jumbles", "plunkets" and "cry babies".
As technology improved during the Industrial Revolution in the 19th century, the price of
sugar and flour dropped. Chemical leavening agents, such as baking soda, became available
and a profusion of cookie recipes occurred. This led to the development of manufactured
cookies.
Interestingly, as time has passed and despite more varieties becoming available, the essential
ingredients of biscuits haven't changed - like 'soft' wheat flour (which contains less protein
than the flour used to bake bread) sugar, and fats, such as butter and oil. Today, though they
are known by different names the world over, people agree on one thing - nothing beats the
biscuit!
1.2.1 SOME INTERESTING FACTS ON THE ORIGIN OF OTHER FORMS OF
BISCUITS:
The recipe for oval shaped cookies (that are also known as boudoir biscuits, sponge biscuits,
sponge fingers, Naples biscuits and Savoy biscuits) has changed little in 900 years and dates
back to the house of Savoy in the 11th century France. Peter the Great of Russia seems to
have enjoyed an oval-shaped cookie called "lady fingers" when visiting Louis XV of France.
The macaroon - a small round cookie with crisp crust and a soft interior - seems to have
originated in an Italian monastery in 1792 during the French Revolution.
SPRING-uhr-lee, have been traditional Christmas cookies in Austria and Bavaria for
centuries. They are made from a simple egg, flour and sugar dough and are usually
rectangular in shape. These cookies are made with a leavening agent called ammonium
carbonate and baking ammonia.
The inspiration for fortune cookies dates back to the 12th & 13th Centuries, when Chinese
soldiers slipped rice paper messages into moon cakes to help co-ordinate their defence
against, Mongolian invaders.
1.2.2 BISCUIT INDUSTRY IN INDIA - AN OVERVIEW
Biscuit industry in India in the organized sector produces around 60% of the total production,
the balance 40% being contributed by the unorganized bakeries. The industry consists of two
large scale manufacturers, around 50 medium scale brands and small scale units ranging up to
2500 units in the country. The unorganized sector is estimated to have approximately 30,000
small & tiny bakeries across the country.
The annual turnover of the organized sector of the biscuit manufacturers is Rs. 4,350 crores.
In terms of volume biscuit production by the organized segment in 2001-02 is estimated at
1.30 million tonnes and in 2012-13 it is 1.714 million tonnes. The major Brands of biscuits
are - Britannia, Parle Bakeman, Priya Gold, Elite, Cremica, Dukes, Anupam, Horlicks, Craze,
Nezone, besides various regional/State brands. Biscuit industry which was till then reserved in
the SSI Sector, was unreserved in 1997-98, in accordance with the Govt. Policy, based on the
recommendations of the Abid Hussain Committee.
The annual production of biscuit in the organized sector continues to be predominantly in the
small and medium sale sector before and after de-reservation. The annual production was
around 7.4 Lac tonnes in 1997-98 in the next five years, biscuit production witnessed an
annual growth of 10% to 12%, up to 2004-05 and in the year 2012 -13 it is 6.25% at 17.14
lack tonnes.
The Union Budget for 2012-13 granted 50% reduction in the rate of Excise Duty on Biscuit
i.e. from 16% to 8%. The Federation's estimate for the current year indicates a growth of
approximately 8% to 9%.
Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogg’s SmithKline Beecham,
Heinz etc entering the biscuit industry in India, most of them, with the exception of
SmithKline Beecham, have ceased production in the country.
However, recent imports from china industries cheaper verities of biscuit, needs to be
examined with cautions, especially in the context of the price as the low margin based
domestic industry, which is operating at 60 % of the total installed capital. Exports of biscuits
from India have been to the extent of 5.5% of the total production. Exports are expected to
grow only in the year 2003-04 and beyond.
Biscuit is a hygienically packaged nutritious snack food available at very competitive prices,
volumes and different tastes. According to the NCAER Study, biscuit is predominantly
consumed by people from the lower strata of society, particularly children in both rural and
urban areas with an average monthly income of Rs. 750.00.
Biscuit can he broadly categorized into the following segments:
(Based on productions of 2012-13)
Glucose 44%
Marie 13%
Cream 10%
Crackers 13%
Milk 12%
others 8%.
Annual Production in Percentage
Others
8%
Milk
12%
Crackers
13%
Glucose
44%
Cream
10% Marie
13%
FBMI (Federation of Biscuit Manufacturer’s of India) is an association of all the biscuit
manufacturers of India. Major players include Britannia, Parle, ITC, Priyagold, Windsor etc.
In recognition of industry's obligations towards the community, being a part of it, biscuit
manufacturers supply biscuits to the social welfare agencies in all States for the benefit of
school children, senior citizens and other needy sections of the society. FBMI (Federation of
Biscuit Manufacturer’s of India) Members have always responded positively to our appeal as
also by the Government, to rush truck loads of biscuits to the people affected by earthquakes,
floods, famine etc. These members have also participated in supplying biscuits to the people
of war ravaged Afghanistan and presently to the Iraqi people, under the aegis of the UN.
As regards the consumption pattern is concerned. surveys and estimates by industry from time
to time indicate the average consumption scenario in the four Zones have been more or less
close to each other, as below:
1.
Northern States: 28%
2.
Southern States: 24%
3.
Western States: 25%
4.
Eastern States: 23%
Consumption of Biscuits
23%
28%
25%
24%
1
2
3
4
Though India is considered as the third largest producer of Biscuits after USA and China, the
per capita consumption of biscuits in our country is only 2.1 Kg., compared to more than 10
kg in the USA, UK and West European countries and above 4.25 kg in south east Asian
countries, Le. Singapore, Hong Kong, Thailand, Indonesia etc. China has a per capita
consumption of 1.90 kg, while in the case of Japan it is estimated at 7.5 kg.
In view of the meagre per capita consumption even as penetration of biscuits manufactured by
the organised sector, into rural areas in India, has been very good during the last 10 years, as
also in the metro and other cities, small towns etc. However, in spite of this, the industry has
not been able to utilize about half of their installed capacities.
Biscuit is a comparatively low margin food product in the PMCG (Packaged Mass
Consumption Goods) sector. The commodity is also price sensitive, as a consequence of
which, even when the Excise Duty was doubled on biscuits in 2000-01 biscuit manufacturers,
including the major brands, were not able hike MRPs to the extent of the steep increase in the
Duty. Taxation, both Central Excise Duty as also State Sales Tax, other miscellaneous levies
i.e. turnover tax, local area tax, mandi taxes, purchase tax, Octroi etc., has been a major
deterrent in the growth of the biscuit industry. The CII Study Report has identified Biscuit as
one of the products that should treated as "Merit Good for the purpose of liberal tax policy
both by the Centre and States.
Besides lack of technology up gradation in manufacturing, packaging etc has also been a
factor affecting our industry, along with inadequate financial credit and support particularly
for the medium and small scale biscuit units.
On the other hand, the Government of India has identified food processing industries as a
priority area to be encouraged for growth and development and created the Ministry of Food
Processing Industries (which was till then a Dept in the Ministry of Agriculture), headed by
an Ministry of State with Independent charge.
Biscuit manufacturing as well as other bakery products like Bread etc are agro based
industries, with the major inputs - wheat flour/atta sugar, milk vanaspati/vegetable oil etc all
being agriculture produces.
Industries such as Biscuit are also languishing as they are not able to achieve their potentials
for higher production, in the absence of the concrete food Processing Industry Policy. FBMI
in close coordination with other organizations and apex Chambers, initiated to urge the Govt
of India to formulate a comprehensive Policy Document, for smooth growth and harmonious
development of the industry. The Food Processing Industry Policy, which has been evolved as
a result of various workshops, deliberations and representations by a large cross section of
food processing industries, is yet to be finalized. It is hoped that the Ministry of Food
Processing Industries, GOI would initiate action for implementation of the Policy
expeditiously.
According to the production figures of members’ available up to the calendar year 2013, the
total production was 1614000 tonnes as against 1714000
Tonnes in the previous year. The production of biscuit for the last 5 years is as under:
2009 - 1100000
2010 – 1254000
2011 – 1429000
2012 – 1614000
2013 – 1714000
Note: The production of members of FBMI consists of 50% (approx.) of the total production
of biscuit in the organized sector.
1.3
INDUSTRY PROFILE
Segments:
The organized and unorganized sector of the biscuit industry is in the proportion of 60%:40% ratio.
Two Sectors of Biscuit Industry
Un Organised
Sector
40%
Organised Sector
60%
Export:
Biscuit is estimated to be around 15% of the annual production during the year 2011-12.
Import:
Biscuits into India have not shown any significant growth during the last two years and has not
affected production/sales by the Indian Biscuit industry.
Marketing :
Wholesale and Retail marketing in the Biscuit industry is carried out with a network of C & F
Agencies (for States and specific Districts), Dealers / Wholesalers and Retail shops.
Biscuit Industry, especially the Small & Medium Sector, consisting of around 150 units(besides
three Large Industries), are facing erosion in their profitability and competitive capability, due to
imposition of Value Added Tax (VAT) by the State Governments @ 12.5% on Biscuits, compared
to VAT oat 4% levied on other similar food products.
Taxation:
On behalf of the industry, IBMA has been pursuing the issue with the Chief Ministers/Finance
Ministers of all States and also with the Chairman of the Empowered Committee on VAT, seeking
reduction in the rate of VAT on biscuit to 4%.
IBMA estimates annual growth in the range of 15% to 20% during the next five years, in the event
of reduction in the rate of VAT on Biscuits to 4%.
1.3.1 BISCUIT INDUSTRY IN INDIA-STATISTIC
1. Annual Growth:
The biscuit industry in India witnessed annual growth as below:-
2008-09 - 14%
2009-10 - 14%
2010-11 - 13%
2011-12 - 15%
2012-13 - 17%
While the growth rate has been stagnating during last 5 years, it has picked up momentum
during the 2011-12 and the first quarter of 2012-13 mainly on account of exemption from
Central Excise Duty on biscuits with MRP up to Rs.100/per kg, as per Union Budget for
2011-12.
2. Annual Production:
The organized biscuit manufacturing industry‘s annual production figures are given
below:
(In Lakh Metric Tons)
2008-09 - 11.00
2009-10 - 12.54
2010-11 - 14.29
2011-12 - 16.14
2012-13 - 17.14
3. Rural-urban penetration of Biscuit:
Urban Market: 75% to 85%
Rural Market: 50% to 65%
HIKE IN COST OF PRDUCTION: Biscuit Industry especially the Small & Medium
Sector, consisting of around 150 units are facing erosion in their profitability and competitive
capability, due to:-
Steep hike in cost of production on account of increase in prices of major raw materials, i.e.
Wheat Flour Veg. Oil, Sugar, Milk, Packaging Materials, Fuel. Wages etc .Recent increase in
prices of Petrol/Diesel in May 2013 has further resulted n cost push. Detailed Comparative
Chart showing adverse impact on Biscuit Industry is given below:
4. Hike in Prices of Raw materials
S.NO
1
2
3
4
5
6
7
8
9
Raw Martial
Maida
Sugar
Parmoline Oil
S.M.P
Butter
Laminate
F.O
HM Bag
Carbon Box Per Kg
Jan 13
12.23
15.09
52.99
122.00
118.94
200.00
26.63
91.92
25.00
May 13
12.00
16.00
57.00
127.00
130.00
230.00
35.00
105.00
28.00
•
The above rates are excluding VAT & other Taxes as well as
•
Cost escalation due to increase prices of
•
Laminate, hike in prices of Petrol/ Diesel, Revision of wages
S.No
1
2
3
4
5
6
7
Cost per KG
Glucose 85 gm
Crunchy bite 150
gm
Golmol 150 gm
Butter 250 gm
2 in 1 75 gm
Milk Cream 75
gm
Marie 17 gm
Jan 13
31.08
30.18
May 13
31.73
32.40
Difference in Rs In %age
0.65
2.09
2.22
7.36
34.06
41.59
39.01
46.38
34.26
43.82
41.06
47.28
0.20
2.23
2.05
0.90
0.59
5.36
5.26
1.94
40.37
41.21
0.84
2.08
The per capital consumption as well as pattern of consumption in the four regions, as shown
above, will also increase considerably, in case the industry’s plea for reduction in the rate of
Value Added Tax (VAT) from 12.5% to 4% is acceded to
Market share
Britannia [Get Quote] re launched its Glucose-D biscuit as Tiger in 1995 and boasts of 17-18
per cent share. parle enjoys 70% market share in glucose biscuit category followed by
Britannia Tiger (17-18%) and ITC's sun feast (8-9%).
1.4 BOOMING WITH BISCUIT
The enormous Rs. 6000-crore Indian biscuit market will soon have a new entrant. UK’s
premier biscuit company, United Biscuits, is looking at entering this profitable market by
tying up with local firms.
United Biscuits is the world’s third largest biscuit firm, and is currently exploring
manufacturing, marketing and distribution options in emerging markets like India. It is little
wonder that UB has identified India as a strong market to explore, considering India is the
world’s second largest manufacturer of biscuits, after USA. Access to this huge market is said
to be ultra profitable for several international food brands, and UB is going with the flow.
The biscuit industry in India is presently growing at the rate of 13% per annum. Despite the
potential and the fast growth rate of the industry, penetration is known to be a difficult affair.
Several companies have failed to fit the bill when it comes to consumer tastes, and among
these have been giants like Hindustan Lever.
The industry is primarily held by top players like Britannia and Parle. In terms of value,
Britannia leads the market with 37 per cent market share, followed by Parle’s 31.3 per cent.
However, a new competitor on the scene – ITC’s Sunfeast – has slowly been transforming the
industry with its foray in 2003.
With its focus on bringing new and innovative products to consumers, ITC steadily gained a
considerable market share which currently stands at 6.3 per cent. Apart from good products
and aggressive marketing, ITC has the advantage of well-built distribution channels, thanks to
its tobacco business. However, Sunfeast still has a long way to go as it continues to battle it
out with the industry’s big two.
In this scenario, it would be interesting to see how well a massive European brand like United
Biscuits would fare and who it would tie up with. Talks are presently on with several firms in
India including Parle. UB is said to be eager to tap into the high-margin health segment of
biscuits such as its McVitie’s brand. This would be a good idea in a country which is
increasingly becoming health conscious, particularly the urban population of India.
1.5 Brands of Major Biscuit Manufacturers:
Parle
Sun Feast
Britania
Priya Gold
Parle
Sunfeast fit kit
Tiger
Don
Krackjack
-
50-50
CNS
Magix
-
Pure Magic
-
Parle cream
-
Cream Treat
Classic Cream
Butter cookies
Golden bacs
Good Day
Butter Bite
-
-
Greetings
-
-
-
Little Heart
-
Marie Choice
Sunfeast benne vita
Marie Gold
Marie lite
Milk Shakti
Sunfeast Milky Magic
Milk Biscuit
Big Boss
-
Sunfeast multigrain
-
-
Hide & Seek
Dark fantasy
Fun Center
-
-
Kids Cream
Sixer
-
-
-
Golden Roles
-
-
-
Monaco Bites
-
Nice Time
Cheese Crackers
-
-
-
Coconut Crunch
-
1.6 Industry Framework
Explanation:
The above framework of biscuit industry shows that consumer generate demand of biscuits
through four factors that is brand recall, quality of biscuits, nutrition contents and price of the
biscuits. They deliver the flow of money to manufacturers to satisfy their above demand.
Manufacturer produces the biscuit by keeping in mind the demand of consumers. Then the
flow of the biscuits (goods) reach to the market through three factors i.e. distribution, factory
location and market knowledge. In the final stage goods reach to the final consumer.
1.7 Biscuit Industry life cycle:
Life cycle models are not just a phenomenon of the life sciences. Industries experience a
similar cycle of life. Just as a person is born, grows, matures, and eventually experiences
decline and ultimately death, so too do industries. The stages are the same for all industries,
yet industries cycle through the stages in various lengths of time. Even within the same
industry, various firms may be at different life cycle stages. Strategies of a firm as well as of
competitors vary depending on the stage of the life cycle. Some industries even find new uses
for declining products, thus extending the life cycle. Others send products abroad in hopes of
extending their life.
The growth of an industry's sales over time is used to chart the life cycle. The distinct stages
of an industry life cycle are: introduction, growth, maturity, and decline. Sales typically begin
slowly at the introduction phase, and then take off rapidly during the growth phase. After
levelling out at maturity, sales then begin a gradual decline. In contrast, profits generally
continue to increase throughout the life cycle, as companies in an industry take advantage of
expertise and economies of scale and scope to reduce unit costs over time.
The marketing mix decisions in the decline phase will depend on the selected strategy. For
example, the product may be changed if it is being rejuvenated, or left unchanged if it is
being harvested or liquidated. The price may be maintained if the product is harvested, or
reduced drastically if liquidated.
If we see the overall biscuit industry of India in the life cycle stage we find that it is in the
Growth stage because it is growing at the rate of 15 to 17% every year. It is well established
industry in India. It has a very large number of players in the organized as well as many
players in unorganized sector. It is also well established in local areas of all the parts of the
country. It has also acquired a very large amount of potential sales of biscuit in the country.
Biscuit is such product which is highly consumed by people of all age. The industry is facing
good competition in the country. Four major players of the industry i.e. Parle, Britannia,
Sunfeast and PriyaGold are fighting hard to acquire market share of the industry.
And if we see the particular brands of biscuits than they are in different stages of life cycle.
For example the Parle’s Parle G, Parle Monaco and Krackjack is at its Maturity stage by
capturing most of India’s market. But on the other hand its biscuits like Parle Hide and Seek
and Parle Hide and Seek Milano are in the growth and introduction stage respectively.
1.8 Biscuit Making Process
MIXING: This is a process where all ingredients are put together in right proportion for
dough formation. These ingredients are then fed into Mixers where mixing is done and dough
is prepared for moulding/cutting .Major ingredients are flour, fat, sugar and others
as per the product one would like to have.
MOULDING: In this section we laminate the dough into sheet, which then passes down to
gauge rollers, and sheet thickness is achieved for moulder/cutter. Here we have a cutter or
moulder as per the variety where one gets the shape and sizes of biscuits.
BAKING: This is the area where we pass these moulded wet biscuit into baking oven. The
biscuits are baked on desired temperatures. Various type of heating are available now days as
per the convenience and cost. Different type ovens are available.
COOLING: These baked biscuits are then passed on to cooling conveyors for natural
cooling prior too packing .The temperatures are brought down to room temperatures
PACKING: These biscuit are then stacked and fed into packing machine for packing
Different packing material are available for packing of these biscuit in different packs slug
packs , pouch pack or family packs etc. These packs are then put into secondary packaging
like cartons to be transported to retailers.
Majors Biscuit Industry
Players In India
2.1.
Parle
In 1929 a small company by the name of Parle products emerged in British dominated India.
The intent was to spread joy and cheer to children and adults alike, all over the country with
its sweets and candies. The company knew that it wouldn’t be an easy task, but they decided
to take the brave step. A small factory was set up in the suburbs of Mumbai, to manufacture
sweets and toffees. A decade later it was upgraded to manufacture biscuits as well in addition
to sweets and toffees. Having already established a reputation for quality, the Parle brand
name grew in strength with this diversification. Parle Glucose and Parle Monaco were the
first brands of biscuits to be introduced, which later went on to become leading names for
great taste and quality. Biscuits were very much a luxury food in India, when Parle began
production in 1939. Apart from Glucose and Monaco biscuits, Parle did offer a wide variety
of brands. Since then, the Parle name has grown in all directions, won international fame and
has been sweetening people's lives all over India and abroad.
Biscuit Basket of Parle-G
There are always some kids who seem smarter than the rest. Ever wonder how they got to be
that way? If you had to think real hard for the answer, then probably you've never eaten
Parle-G. Parle-G is the new generation's official power supply. Providing kids with the vital
vitamins and minerals necessary for all round mental and physical development
Parle-G Magix
What is the power of taste? Can it get government officers to get your papers through faster?
Probably! Can it help you make friends and influence people? It's worth a shot! Can it land
you a lead role in a blockbuster movie, even if you can't act?
Fact is, people will do anything for a taste of Parle-G Magix. But the real question is, will
you be willing to share your packet of Parle-G Magix to find out exactly how much power
you can exert? With two delicious tastes - Chocó & Cashew, Parle-G Magix has put great
power in your hands. Go ahead & wield them wisely
PARLE-G MAGIX CHOCO
Wheat flour, Sugar, Edible vegetable oils, Cocoa Solids, Milk products, Invert syrup, Salt,
Leavening agents, Permitted emulsifier, Calcium & Iron salts, Vitamins and Dough
conditioner.
Contains
Permitted
Natural
Colour
and
Added
Flavours.
Best before 6 months from packaging
Krackjack
A little sweet - A little salty… That's what makes Krackjack very, very delicious! This
delightful biscuit is acclaimed in India and across the world for its controversial sweet and
salty taste. Krackjack has won 11 Gold, 3 Silver and 1 Bronze award at the
'Monde Selection'. You can enjoy Krackjack any time plain or with a host of beverages like
tea, coffee or milkshakes
Secret Ingredients
Wheat Flour, Sugar, Edible Vegetable Oils, Invert Syrup, Skimmed Milk Powder, Salt,
Leavening Agents, Lactic Acid, Permitted Emulsifier, Flavours and Dough Conditioners.
Monaco
You see, these biscuits are so light and crispy, they lift your spirits. And puts you just in the
right frame to battle the odd irritants life throws up
And you can also top Monaco with your own imagination. You must try it sometime. The
great light taste of Monaco goes well with just about anything, making it just the right partytime snack
2.2 Britannia
The story of one of India's favourite brands reads almost like a fairy tale. Once upon a time,
in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now
Kolkata) with an initial investment of Rs. 295. The company we all know as Britannia today.
The beginnings might have been humble-the dreams were anything but. By 1910, with the
advent of electricity, Britannia mechanised its operations, and in 1921, it became the first
company east of the Suez Canal to use imported gas ovens. Britannia's business was
flourishing. But, more importantly, Britannia was acquiring a reputation for quality and
value. As a result, during the tragic World War II, the Government reposed its trust in
Britannia by contracting it to supply large quantities of "service biscuits" to the armed forces.
PRODUCT PROFILE
50-50
With a brand name like 50-50, can the product be anything
but fun? Launched in 1993, 50-50 belongs to the family of
crackers and is considered the "very very tasty tasty" snack.
Britannia 50-50 is the leader in its category with more than one-third of market share. The
versatile and youthful brand constantly aims to provide a novel and exciting taste experience
to the consumer. As a result, in 2001, the delicious Maska Chaska was launched as a variant
of the original brand and became an instant success. Recently, another offering from the 5050 stable was introduced - Pepper Chakkar. This thin and crisp snack came with a distinctive
peppery flavour and a mysterious ingredient that left everybody wondering "What it eez?"
The consumer's verdict, though, is clear: Britannia 50-50 and its variants are a 100% hit.
TIGER
Tiger, launched in 1997, became the largest brand in
Britannia's portfolio in the very first year of its launch and
continues to be so till today. Tiger has grown from
strength to strength and the re-invigoration in June 2005
has further helped bolster its growth in the highly
competitive glucose biscuit
category.
Tiger is more aptly described as a "nutri-glucose" biscuit, and comes with the added
goodness of wheat and milk. It is for modern mothers who play an enabling role for their
children to compete in today's world and thus want the best.
Over the years, Tiger has become the mass-market face of Britannia symbolizing fun and
energy in both urban and rural India, and transcending glucose biscuits.
Tiger Coconut was launched in 2001 and Tiger Creams was added to its repertoire in 2002.
Tiger Cream comes in 4 flavours (Orange, Rose Milk, Kesar and Elaichi) and promises to
bring more fun and more energy to children across the country.
GOOD DAY
Britannia Good Day was launched in 1986 in two
delectable avatars - Good Day Cashew and Butter. Over
the years, new variants were introduced - Good Day Pista
Badam in 1989, Good Day Chocochips in 2000 and
Good Day Choconut in 2004.
This rich biscuit enjoys a fan following of consumers across all ages, loyal to the brand
promise of a great taste evident from the visibly abundant ingredients. Good Day is amongst
the fastest growing brands in Britannia's portfolio and is today the market leader with almost
2/3 share of the market. The brand is synonymous with everyday treats that infuse happiness
into people's daily lives.
LITTLE HEARTS
Little Hearts was launched in 1993 and targeted the
growing youth segment. A completely unique
product, it was the first time biscuits were retailed in
pouch packs like potato wafers. The launch message
introduced a special taste experience that made the
unlikeliest characters - like Dracula and Frankenstein - melt. In 1997, the 'Direct Dil Se'
campaign encouraged youngsters to openly express their feelings.
And in 2003, two variants called Little Hearts Chocolate and Little Hearts Sesame were
rolled out with a campaign "Dil sabka actually sweet hai". With Little Hearts, Britannia has
tasted the sweet taste of success.
MARIE GOLD
Britannia's oldest brand enjoys a heritage that spans the
last 50 years - and going strong. In a market swamped
with me-too products and where even the name 'Marie'
has become generic, Britannia Marie Gold has maintained
its stronghold. Today, the ever-popular Marie Gold is
synonymous with the 'Tea Time Biscuit'. Its taste, crispiness and lightness make it a must for
every tea break.
MILK BIKIS
Kids may dislike drinking milk, but they love Britannia
Milk Bikis! Milk Bikis has been trusted by mothers as
a source of growth energy of milk and their loyalty to
the brand has made it an integral part of their children's
nutrition regimen.
In 1996, Milk Bikis launched a variant called Milk Cream. These round biscuits come with
smiley faces and are full of milk cream that makes them very popular with children. Milk
Cream also promoted the idea of 'eating milk' in a yummy way, which makes mothers happy
as well.
To keep pace with the demands of the new generation and to bring milk nutrition to the
masses in a delightful form, Milk Bikis, went one step further in the last quarter of 2006 in
providing not just energy but ‘developmental fuel’ for children. With a unique and attractive
honeycomb design and an enhanced product experience, the new biscuit is now fortified with
SMART NUTRIENTS – 4 vital vitamins, iron and iodine, proven to aid mental and physical
development in growing kids.
2.3 Sun Feast
In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie
and Cream Biscuits. Sunfeast’s brand essence, "Spread the Smile" connotes happiness,
contentment, satisfaction and pleasure. The mascot Sunny reinforces the emotional aspects of
the brand. In a span of 6 years Sunfeast has launched many new varieties and has its presence
in almost all types of biscuit categories.
Sunfeast Milky Magic
Packed with goodness of milk these deliciously nutritious crisp and crunchy biscuits are a
favorite among mothers and kids. Milky Magic has the ‘Magic of 2’ - A perfect balance of
energy that aids physical strength and mental ability. These biscuits strike the right balance of
milk and wheat which helps in an all round development and nurturing of the child.
Sunfeast Marie
Sunfeast Marie Light:
This ideal teatime biscuit is made from the finest quality wheat high in fibre and keeps one
light and healthy through the day.
Orange Marie :
It has the distinction of being one of the most successful i It has the distinction of being one
of the most successful innovative Marie biscuits and is liked by one and all
Sunfeast Golden Bakery
Sunfeast Golden Bakery is a premium cookie on an
innovative and differentiated platform. Launched
nationally in March 2008, these cookies are made from
the recipes crafted by the master bakers of ITC Hotels
and are slowly baked in the traditional way till they are
golden brown and develop the crispy broken crust
texture.
The Sunfeast Golden Bakery cookies are available in
three distinct flavours - Butter-Nut, Butterscotch and
Choco-Nut cookies. These products are designed to
give consumers a rich & truly indulgent experience.
Sunfeast Dark Fantasy
Inspired by the Master Chefs of ITC hotels, it is the richest of
chocolate vanilla biscuits. These biscuits are created using
carefully chosen premium ingredients for a sensory experience
unlike any other. Dark Fantasy is more than a biscuit, it’s a
luxurious mix of aromatic cocoa and vanilla.
Sunfeast Glucose
For those light hunger pangs, a wholesome & nutritious choice as
these golden brown biscuits are made from the best quality wheat.
Sunfeast Glucose biscuits are ideal not just for kids but adults too.
2.4
Priyagold
Surya Food & Agro Ltd. was incorporated in November 1992 and commenced its commercial
operations of manufacturing & selling of biscuits under brand “Priyagold” in October 1993.
Over a period, they have established strong manufacturing capabilities and have invested
substantially in developing consumer preference for our products. Our trademarks / brands “Haq
Se Mango” & “Priyagold” have emerged as one of the most powerful brands in the FMCG sector.
They have three plants located in Greater Noida, Lucknow & Surat. They also outsource some of
our requirements to another plant located in Hyderabad. Their capacities have reached 1,50,000
MT p.a., which along with strong brand building and distribution capabilities have enabled us to
command a sizable market share in the biscuit market despite competition from well-established
players in the industry.
After establishing their foothold in biscuit industry, they continued to adopt strategy to identify and
commercialize profitable growth opportunities by leveraging established brand and distribution
network. Following this strategy, they diversified into manufacturing of “fruit juices” through their
wholly owned subsidiary “Surya Fresh Foods Ltd.” in January 2006. The manufacturing facility is
located at Greater Noida, U.P. They have consciously invested in creating markets for fruit juices
and have established brands such as “Fresh Gold” & “Treat”.
Butter Bite Premium Biscuits:
Priyagold’s Butter Bite Premium will fill you with a buttery experience with crispy & fresh taste.
It’s a combination of pure butter and fresh filthier to give you perfect health.
Ingredients
Wheat flour, Edible Refined hydrogenated vegetable oils (Palm oil/ Soya bean Oil/ cottonseed oil
and sesame oil), Sugar, Sweetened Condensed Milk, Butter, Desiccated Coconut Powder, Invert
Syrup, Liquid Glucose, Pistachio, Almond Nuts, Leavening Agents (Ammonium Bi-carbonate &
Sodium Bi-Carbonate), Processed Cheese, Iodized Salt, Dough Conditioners (Sodium Meta Bi
Sulphite), Contains added flavours (Butter).
Available in
50g, 100g & 230g packs
Butter Bite Badam Pista
Butter Bite Badam Pista brings to you, the real taste and traditional qualities of Badam-Pista
added with great buttery taste. So, all you taste lovers, empower yourself.
Butter Bite Kesar Biscuits
Butter Bite Kesar brings to you, familiar scent of kesar soaked with desi butter, so you get tasty
surprise with every bite. So, let’s not wait anymore, go grab it.
Ingredients
Wheat flour, Edible Refined hydrogenated vegetable oils (Palm oil/ Soya bean Oil/ cotton seed oil
and sesame oil), Sugar, Invert Syrup, Sweetened Condensed Milk, Liquid Glucose, Leavening
Agents (Ammonium Bi-carbonate & Sodium Bi-Carbonate), Iodized Salt, Mono acid Calcium
Sulphate, Dough Conditioners (Sodium Meta Bi Sulphite), Contains Permitted natural Saffron,
Contains added flavours (Saffron).
Available in
50g, & 230g packs
Classic Cream Milk Biscuits
Classic Cream Milk biscuit brings to you all the energy of milk and freshness of flour to provide
you perfect taste along with health. So, enjoy the perfect blend.
Ingredients
Wheat Flour, Sugar, Edible Refined Hydrogenated Vegetable Oils (Palm Oil/ Soya Bean Oil/
Cotton Seed Oil And Sesame Oil), Sweetened Condensed Milk, Invert Syrup, Liquid Glucose,
Iodised Salt, Leavening Agents (Ammounium Bi-Carbonate & Sodium Bi-Carbonate), Permitted
Emulsifiers (Glycerly Mono Stearate), Soya Lecithin, Dough Conditioners (Sodium Meta Bi
Sulphite), Contains Added Flavours (Milk & Vanilla)
Available in
65g, & 130g packs
Kids Cream Butter Biscuits
Kids Cream Butter Biscuit is real creamy sensation for your taste. Continuing Priyagold’s
tradition, it brings to you, perfect combination of taste and health, as it is rich in protein and
calcium. So, all you kids and adults, just rush to have a bite of ultimate taste.
Ingredients
Ingredients: Wheat Flour, Sugar, Edible Refined Hydrogenated Vegetable Oils (Palm Oil/ Soya
Bean Oil/ Cotton Seed Oil And Sesame Oil), Skim Milk Powder, Liquid Glucose, Invert Syrup,
Permitted Emulsifiers (Glycerly Mono Stearate), Sweetened Condensed Milk, Leavening Agents
(Ammounium Bi-Carbonate & Sodium Bi-Carbonate), Iodised Salt, Soya Lecithin, Dough
Conditioners (Sodium Meta Bi Sulphite), Contains Added Flavours (Butter).
Kids Cream Chocolate Vanilla Biscuits
Savour the taste of chocolate & vanilla with Kids Cream Chocolate Vanilla. Priyagold’s yet
another lip smacking biscuit will definitely leave you craving for more. So, don’t wait to taste an
ideal combination of the two.
Ingredients
Wheat Flour, Sugar, Edible Refined Hydrogenated Vegetable Oils (Palm Oil / Soya Bean Oil /
Cotton Seed Oil And Sesame Oil), Sweetened Condensed Milk, Cocoa Powder, Skim Milk
Powder, Permitted Emulsifiers (Glycerly Mono Sterate), Liquid Glucose, Invert Syrup, Leavening
Agents (Ammonium Bi-Carbonate & Sodium Bi-Carbonate), Iodised Salt, Soya Lecithin, Dough
Conditioners (Sodium Meta Bi-Sulphite), Contains Permitted Synthetic Food Colours, Chocolate
Brown: - Eec No. E 155, Ci Name Food Brown 3, Ci No. 20235, Chocolate Carmeline And Added
Flavours (Vanilla).
Kids Cream Strawberry Biscuits
Kids Cream Strawberry Biscuit is full of delicious strawberry cream, a taste to linger long with
you. Priyagold brings to you taste with health. So, all you kids and adults, just rush to have a bite
of ultimate taste.
Ingredients
Wheat Flour, Sugar, Edible Refined Hydrogenated Vegetable Oils (Palm Oil/ Soya Bean Oil/
Cotton Seed Oil And Sesame Oil), Skim Milk Powder, Liquid Glucose, Invert Syrup, Permitted
Emulsifiers (Glycerly Mono Stearate), Sweetened Condensed Milk, Leavening Agents
(Ammounium Bi-Carbonate & Sodium Bi-Carbonate), Iodised Salt, Soya Lecithin, Dough
Conditioners (Sodium Meta Bi Sulphite), Citric Acid, Contains Permitted Synthetic Food Color
(I) Erythrosine : Fd & C Red No. 3, Ci Food Red 14, Ci No. 45430, Eec No. E – 127, Lb – Rot –
I, And Added Flavours (Strawberry).
Available in
75g, & 150g packs
Ingredients
Wheat flour, Edible Refined hydrogenated vegetable oils (Palm oil/ Soya bean Oil/ cottonseed oil
and sesame oil), Sugar, Sweetened Condensed Milk, Butter, Desiccated Coconut Powder, Invert
Syrup, Liquid Glucose, Pistachio, Almond Nuts, Leavening Agents (Ammonium Bi-carbonate &
Sodium Bi-Carbonate), Processed Cheese, Iodized Salt, Dough Conditioners (Sodium Meta Bi
Sulphite), Contains added flavours (Butter).
Strategic Analysis and
Models
3.1 SWOT Analysis
External factors
External Opportunities
( O)
External Threats
(T)
“SO”
“ST”
Internal
factors
Internal Strength
(S)
Maxi-Maxi strategy
Internal Weakness
(W)
“WO”
Mini-Maxi strategy
Maxi-Mini strategy
“WT”
Mini-Mini strategy
1. “SO” (Maxi- Maxi) Strategy
Maxi-Maxi is a strategy in which a firm use its internal strength to grab the external
opportunities.
In biscuit industry ITC ( Sunfeast ) has used is internal strengths and resources through
forward integration and concentration differentiation to grab the external opportunity of
increasing market share by attacking on parle and Britannia’s weakness of lack of innovation
in between year 2009 to 2013.
2. “ST” (Maxi- Mini) Strategy
Maxi-Mini is the strategy in which a firm uses its internal strength to minimize its external
threats.
Britannia has made following efforts ( use Internal Strength ), in order to maintain the threat
of losing market share due to aggressive launching of new biscuit brands by ITC sun feast.
•
Britannia has been investing significantly in higher and better quality of human
resources both at the front end and at the back end.
•
In 2013, Britannia divided its product portfolio into two distinct categories: "health
and wellness" and "delight and lifestyle." Products such as Tiger glucose and Nutri
Choice biscuits fall under the former category, while Good Day and Treat fall under
the latter.
•
Britannia has doubled its ad spending in the last three years. It is also working to
increase trade marketing visibility and, for the first time ever, has signed on with a
trade marketing agency. According to one of director of Britannia Company Mr.
Mehta, Britannia plans to increase advertising and marketing spending to10% to
12% of sales over the next few years from a current 7%.
•
On the infrastructure front, Britannia has added 200,000 tons of annual capacity, an
increase of about 60%. It has also devised a long term distributed manufacturing
strategy, put in place a continuous replenishment supply efficiency system, and
strengthened its supply chain management significantly.
3. “WO” (Mini-Maxi) Strategy
Mini-Maxi is the strategy in which a firm minimizing its internal weakness by taking
advantage of external opportunities.
After successfully launching juices, leading biscuit brand Priyagold is planning to enter the
chocolates segment with the long-term aim of becoming a major player in the FMCG food
products.
According to a Nielsen survey, the chocolate market is estimated at about Rs 1,900 crore and
growing at 18-20 per cent with Cadbury being the leader having 72 per cent share. Other
major players include Nestle and Amul.
Thus by this way Priya gold has grab the opportunity to increase its sales by entering in to
chocolate segment and by removing its weakness of existence in only biscuit and juice
segment.
4. “WT” ( Mini-Mini) Strategy
Mini-Mini is the strategy in which a firm minimizing its internal weakness by avoiding
external threats.
In the year 2008 to 2013 two major players of biscuit industry both parle and Britannia not
launched any major brand, which is considered as biggest weakness of these two major
players in that period, This weakness becomes the biggest opportunities for their competitors,
specially ITC Sun feast, which was just newly launched in the market.
In 2003, ITC launched Sunfeast with six ranges. But it was a calculated risk. ITC stuck to
category favourites like Glucose, Marie and Bourbon cream. Along with that, it also launched
innovations such as orange-flavoured Marie, Marie light and butterscotch-flavoured cream
biscuits. In 2004, Sunfeast followed this up with the launch of Sunfeast Milky Magic. More
recently, it also has launched the Sunfeast Snacky and Sunfeast Golden Bakes.The biscuits
industry had not witnessed any major product innovation in years.
AC Nielsen has indicated that both Parle and Britannia are losing market shares. According
to the AC Nielsen retail sales audit in March 2011, both Britannia and Parle have lost
volumes. Britannia’s shares have dropped from 35.8 per cent in 2009-10 to 30.5 percent in
May 2011 (volumes).
Parle’s shares have also dropped from 42.2 to 38.4 percent in the same period. Even Priya
Gold has seen a minor dip from 6.4 per cent to 5 per cent. ITC’s Sunfeast has been a big
gainer with its share increasing from 2.7 to 6.7 per cent.
In order to avoid this external threat of loosing their market share, Marie — was launched by
Parle in early February 2006. Britannia launched its new double-flavoured Mariegold and 5050 Chakkar. And Parle is all set to launch at least two new products before the end of this
year.
Thus by this way both Parle and Britannia have avoided external threat by minimizing
internal weakness of lack of continuous innovation in a biscuit industr
3.2 PESTL Analysis:
s
Political
Economical
• Taxes
• ↑ in per capita income
• Production and Distribution
licenses
• India’s GDP growing at an
average 8%
Legal
• Discrimination law,
consumer law, antitrust
law, employment law
• Health and safety law
Social
Technological
• ↑ in per capita consumption
• Innovation
• India is 3rd largest producer of
biscuit
• R&D
Explanation
In analyzing the macro-environment, it is important to identify the factors that might in turn
affect a number of vital variables that are likely to influence the organization’s supply and
demand levels and its costs . The "radical and ongoing changes occurring in society create an
uncertain environment and have an impact on the function of the whole organization" A
number of checklists have been developed as ways of cataloguing the vast number of possible
issues that might affect an industry. A PESTL analysis is one of them that is merely a
framework that categorizes environmental influences as political, economic, social and
technological forces. Sometimes two additional factors, environmental and legal, will be
added to make a PESTL analysis, but these themes can easily be subsumed in the others. The
analysis examines the impact of each of these factors (and their interplay with each other) on
the business.
1. Political factors are how and to what degree a government intervenes in the economy.
Specifically, political factors include areas such as tax policy, labour law, environmental
law, trade restrictions, tariffs, and political stability. Political factors may also include
goods and services which the government wants to provide or be provided (merit goods)
and those that the government does not want to be provided (demerit goods or merit bads).
Furthermore, governments have great influence on the health, education, and infrastructure
of a nation.
2. Economic factors include economic growth, interest rates, exchange rates and the
inflation rate. These factors have major impacts on how businesses operate and make
decisions. For example, interest rates affect a firm's cost of capital and therefore to what
extent a business grows and expands. Exchange rates affect the costs of exporting goods
and the supply and price of imported goods in an economy
3. Technological factors include ecological and environmental aspects, such as R&D
activity, automation, technology incentives and the rate of technological change. They can
determine barriers to entry, minimum efficient production level and influence outsourcing
decisions. Furthermore, technological shifts can affect costs, quality, and lead to
innovation.
4. Legal factors include discrimination law, consumer law, antitrust law, employment law,
and health and safety law. These factors can affect how a company operates, its costs, and
the demand for its products.
3.3 Five Force Model
Explanation
1. The Threat of Substitute Products
The existence of products outside of the realm of the common product competitors which
increases the propensity of customers to switch to alternatives
•
Relative price performance of substitutes : low
•
Buyer switching costs : low
•
Perceived level of product differentiation : high level of differentiation
The substitute products includes Khari, Tost, Nankhattai, Bhakhari, Khakhara, Bread,
Packaged snacks and other bakery products affects the demand of biscuit. The uses of these
all home made products are responsible for either in increase or decrease in the demand of the
biscuits in the country.
2. The Threat of the Entry of New Competitors
Profitable markets that yield high returns will draw firms. This results in many new entrants,
which will effectively decrease profitability. Unless the entry of new firms can be blocked by
incumbents, the profit rate will fall towards a competitive level (perfect competition).
•
The existence of barriers to entry (patents, rights, etc.) : low
•
Brand equity : high in organized sector
•
Switching costs or sunk costs : low
•
Capital requirements : high in organized sector
•
Access to distribution : strong distribution channel is required
•
Customer loyalty to established brands : high in organized sector
•
Government policies : moderate
The biscuit industry can be divided in to two parts, organized sector and the unorganized
sector. For new firms it is easy to enter in the unorganized sector, but if a firm wants to enter
in the organized sector then it must have adequate production capacity, heavy promotional
and advertisement and strong distribution channel. The player with all the above resources is
a big threat to the existing industry players.
3. The Bargaining Power of Customers
Also described as the market of outputs. The ability of customers to put the firm under
pressure and it also affects the customer's sensitivity to price changes.
•
Degree of dependency upon existing channels of distribution : high
•
Buyer volume : high
•
Buyer information availability : high( through advertisement )
•
Availability of existing substitute products : high
•
Buyer price sensitivity : moderate
In the industry there are most of customers who are price sensitive and in the market there are
many biscuits which are available in the low to moderate price range which affects the
demand of the premium brand of biscuits. And the other factor is the like of the customers for
the other bakery products.
4. The Bargaining Power of Suppliers
Also described as market of inputs. Suppliers of raw materials, components, labor, and
services (such as expertise) to the firm can be a source of power over the firm. Suppliers may
refuse to work with the firm, or e.g. charge excessively high prices for unique resources.
•
Degree of differentiation of inputs : moderate
•
Presence of substitute inputs : high
•
Employee solidarity (e.g. labor unions) : high in organized sector
The main suppliers of the biscuit industry includes the suppliers of sugar, wheat, milk have
their own impact on the industry. Apart from this the suppliers of other ingredients like
chocolate, glucose, butte, cashew, coconut, strawberry etc also affects the prices of biscuit
products.
5. The Intensity of Competitive Rivalry
For most industries, this is the major determinant of the competitiveness of the industry.
Sometimes rivals compete aggressively and sometimes rivals compete in non-price
dimensions such as innovation, marketing, etc.
•
Number of competitors : 14 players in organised sector
•
Rate of industry growth : high ( 15-17% p.a.)
•
Exit barriers : low
•
Level of advertising expense : high in organized sector
•
Economies of scale : high in organized sector
There is tough competition in the organized sector between major four players Parle,
Britannia, Sunfeast and Priyagold to grab the market share in the industry.
3.4 Strategic Group Mapping
Explanation :
The above graph of strategic group mapping of Price and Distribution shows that Parle and
Britannia strong have distribution channel with low prices.
While Priyagold and Sunfeast have moderate level of distribution channel and moderate
prices.
And while Marico and Horlicks have low distribution channel and high prices.
Explanation
The above graph of strategic group mapping of Nutrition content and Brand shows that Parle
and Britannia have strong Brand name with high nutrition content.
While Priyagold and Sunfeast have moderate level of Brand name and moderate Nutrition
content.
And while Marico and Horlicks have low Nutrition content and low Brand name.
Explanation
The above graph of strategic group mapping of Innovation and Technology shows that Parle
and Britannia have advance Technology and high Innovation.
While Priyagold and Sunfeast have advance level of Technology and moderate Innovation.
And while Marico and Horlicks have advance level of Technology and low Innovation.
.
Explanation
The above graph of strategic group mapping of Packaging shows that all the players in the
biscuit industry have advanced level of packaging but Parle has upper hand compare to other
players of biscuit industry.
3.5 Divers forces
According to Innova Market Insights, two opposing forces within the sweet biscuits market
are at work globally. From one side, the treat image of biscuits is driving the premium sector
forward; from the other, rising health concerns have also raised interest in better-for-you
products.
Chocolate biscuits have been one of the main beneficiaries of rising interest in the treat image
of biscuits and the market has continued to see growth in most countries despite ongoing
financial and health concerns. According to Lu Ann Williams, Research Manager for Innova,
this is probably attributable to the ongoing demand for everyday treats and the continuing
tendency to “trade off,” by mainly choosing healthy options but then having an indulgent
product as a reward. “Biscuits with some sort of chocolate content accounted for a significant
48% of the global sweet biscuits launches recorded by Innova in 2011, although this was
down from over 60% five years previously, perhaps reflecting the greater choice of biscuits
varieties and flavours now on offer,” she notes.
While indulgence is keeping the market for chocolate biscuits buoyant, health can still be a
factor in purchasing decisions, although not to the same extent as for some other food and
drinks products. Companies have been endeavouring to improve the nutritional profile of
their standard products in many instances and this may have inhibited growth in the specific
healthier or better-for-you biscuits market. Nearly 30% of global biscuits launches in 2011
were positioned on a health platform of some kind, rising to over 40% for savoury biscuits
and falling to just over a quarter for sweet biscuits.
By far the most popular health claims were those relating to naturalness and the lack of
artificial additives and/or preservatives, reflecting rising levels of interest in clean labelling.
Over 30% of launches carrying health claims used this type of positioning, equivalent to 12%
of biscuits launches as a whole.
RATION
ANALYSIS
Ratio analysis involves establishing a relevant financial relationship between components of
financial statement. Two companies may have earned the same amount of profit in a year, but
unless the profit is related to sales or total assets, it is not possible to conclude which of them
is more profitable. Ratio analysis helps in identifying significant relationship between
financial statement items for further investigation. If used with understanding of industry
factor and general economic conditions, it can be powerful tool for recognizing a company’s
strengths as well as its potential trouble spots.
4.1 TREND ANALYSIS OF PRODUCTION AND SALES
4.1.1 AGGREGATE INDUSTRY SALES TREND
Sales Trend
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Sales Trend
EXPLANATION
The above trend of sales of biscuit industry shows that, the overall sales of Biscuit industry is
gradually increase in each year except in the year 2012-13. This trend of industry sales shows
that biscuit industry is in the growth phase.
4.1.2 AGGREGATE INDUSTRY PRODUCTION TREND
Year
Annual Prod. Fig.
2008-09
1.1
2009-10
1.25
2010-11
1.42
2011-12
1.6
2012-13
1.75
Production Trend
2
1.8
1.6
1.4
1.2
1
Production Trend
0.8
0.6
0.4
0.2
0
2008-09
2009-10
2010-11
2011-12
2012-13
EXPLANATION
The above annual production figures of Biscuit industry shows the increasing trend since last
five years. This graph also shows that in order to meet the demand of Biscuit products, all the
firms increasing their production almost at the rate of 15 to 20 % in each year.
4.2 Companies’ Ratio Analysis
4.2.1 Liquidity Ratio
Current Ratio
Current Assets
= -----------------------Current Liabilities
Year
Parle
Priyagold
Britannia
Sunfeast
2008-09
1.32
0.89
0.85
-0.039
2009-10
2.23
1.99
0.84
0.97
2010-11
2.23
2.33
1.07
1.25
2011-12
2.69
3.18
1.17
1.33
2012-13
2.66
2.32
1.22
1.36
3.5
3
2.5
Parle
2
Surya
1.5
Britaniya
1
Sunfeast
0.5
0
-0.5
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
It is generally believed that 2:1 shows a comfortable working capital condition that is current
assets should be twice to the current liabilities. Current ratio means ability of the firm to meet
its obligation.
The current ratio of four major players of last five years shows that out of four players only
two players that is Parle and Surya ( Priyagold) is able to maintain the ideal ratio 2:1 since
last four years while other two players Britannia and Sunfeast are failed to maintain ideal
current ratio. So we can say that Parle and Surya food are successfully able to meet their
obligations.
From the above graph we can see that when ITC newly entered in the biscuit market with
sunfeast it had negative current ration in year 2008-09, after that the current ratio of the
company is continuously increasing.
1.1 Quick Ratio
Current asset – Inventories
= ------------------------------------------------Current liabilities
Year
Parle
Priyagold
Britannia
Sunfeast
2008-09
1.130178
0.22123
0.153244
0.0762671
2009-10
1.128705
0.53
0.41
0.43
2010-11
1.783645
0.72368
0.47
0.57
2011-12
2.076996
1.17375
0.52
0.58
2012-13
2.163145
0.96101
0.68
0.56
2.5
2
Parle
1.5
Surya
1
Britaniya
0.5
Sunfeast
0
2008-09 2009-10 2010-11 2011-12 2012-13
Interpretation:
The Quick ( Acid Test ) ratio is the measurement of firm’s ability to convert its current assets
quickly in to cash in order to meet its current liabilities. This is very exacting standard of
quick liquidity and it is satisfactory if the ratio is 0.5:1.
The above graph shows that Plarle is successful to maintain the ideal quick ratio from last
five years, while surya food has maintained its ideal quick ratio since last four years, while
Britannia and Sunfeast both are maintaining ideal quick ratio since last three years.
From the above graph we can also conclude that in last two years all the four major players of
biscuit industry have successfully achieved ideal quick ratio.
So we can say that all the four players are able to convert their current assets quickly in to
cash in order to meet its current liabilities in last two year
4.2.2. Profitability Ratio
2.1 Net Profit Ratio
Net Profit After Tax
= -------------------------- * 100
Sales
Year
Parle
Priyagold
Britannia
Sunfeast
2008-09
9.067993
2.29279
8.25
24.84
2009-10
11.5235
0.91093
9.25
24.84
2010-11
8.64549
0.43939
8.48
22.19
2011-12
5.926095
1.01312
4.86
21.4
2012-13
8.8175515
2.849581
7.31
21.5
30
25
20
Parle
15
Surya
10
Britaniya
Sunfeast
5
0
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
This ratio indicates how well company is performing. It is the basic criteria for measuring the
performance of the company. It measures how many percentage of net profit generated by
sales.
Net profit is also known as the net margin. It measures the relationship between net profit and
sales of the firm. A company with high net profit would be in advantageous position to
survive in the face of falling selling prices, rising cost of production or declining demand.
The above graph shows that all the four players have fluctuating trend in net profit ratio. ITC
has highest net profit ratio in last five years compare to other biscuit players, while Surya
food is far behind compare to ITC, Parle and Britannia.
2.2 Capital employed ratio
PAT
----------------------- * 100
Capital Employed
=
Year
Parle
Priyagold
Britannia
Sunfeast
2008-09
137.81
79.13
41.2
36.09
2009-10
109.25
52.54
41.02
33.09
2010-11
152.88
45.25
34.49
36.26
200
180
160
140
120
100
80
60
40
20
0
2011-12
178.7
32.38
19.22
37.24
2012-13
148.51
45.79
26.37
36.6
Parle
Surya
Britaniya
Sunfeast
2008-09 2009-10 2010-11 2011-12 2012-13
Interpretation:
Rate of return measures profitability from a given level of investment. It is excellent indicator
of overall performance of a company. It shows how efficiently the company has utilized its
assets.
The above graph shows that the trend of capital employed ratios of all the four players are
fluctuating Parle has highest capital employed ratio compare to other three players. Which
shows that Parle has higher profitability from given level of investment and it has optimum
utilized its assets to generate it maximum returns compare to all three other players.
2.3 Interest coverage ratio :
EBIT
----------------------- * 100
Interest
=
Year
Parle
Priyagold
Britannia
Sunfeast
2008-09
958
672
32.03
68.97
2009-10
421.7586
94
87.69
56.01
2010-11
677.3529
16.0625
90.1
209.63
2011-12
166.4925
3.872
21.98
456.67
2012-13
302.4219
5.08547
35.49
258.92
1200
1000
800
Parle
600
Britaniya
400
Surya
200
Sunfeast
0
2008-09 2009-10 2010-11 2011-12 2012-13
Interpretation:
The interest coverage ratio is also known as “ Time Interest On Ratio “. The interest coverage
ratio measures the debt servicing capacity of firm in so far as fixed interest on long term is
concerned. A high ratio may imply unused debt capacity and a low ratio is a danger signal
that the firm is using is excessive debt.
The above graph shows that Parle has the highest interest coverage ratio compare to all other
three players. Because company has very low debt compare to other players.
Interest coverage ratio of Surya food (Priya Gold) is highly fluctuating, in the year 2008-09
the ratio is 672 and in the year 2011-12 the ratio is just 3.87, which shows that company is
using excessive debt in the year 2011-12, which is dangerous signal
and shows the
inefficiency of the finance department. Interest coverage ratio of Other two players Britannia
and ITC (sun feast) shows the fluctuating trend
4.2.3 Activity Efficiency Ratio
3.1 Total Asset Turn Over Ratio
Net Sales
= -----------------------------------------Total assets
Year
Parle
Priyagold
Britannia
Sunfeast
2008-09
2.193431
2.23972
3.06
0.98
2009-10
2.027496
2.90736
3.53
0.95
2010-11
2.644023
3.03072
3.07
1.08
2011-12
3.256953
2.03637
3.56
1.17
2012-13
3.608123
2.19742
3.01
1.16
4
3.5
3
2.5
parle
2
Surya
1.5
Britaniya
1
Sunfeast
0.5
0
2008-09
2009-10
2010-11
2011-12
2012-13
Interpretation:
The Total asset turnover ratio indicates the level of efficiency of industry. The higher ratio
indicates the more efficient use of Total assets by all biscuit industry payers and lower ratio
indicates that the Total assets are not adequately utilized in business.
The above graph shows that Total assets ratio of Parle is almost in Increasing trend, while in
the other three players the ratio is in fluctuating trend.
The above graph also shows that Parle , Britannia and Surya Food (Priya gold) have good
Total asset turnover ratio, but only Sun feast (ITC) has poor Total asset turnover ratio
compare to other three biscuit players.
3.2 Debt to equity ratio
=
Year
Parle
Priyagold
Britannia
Sunfeast
Long term liabilities
----------------------------- * 100
Shareholder’s fund
2008-09
2009-10
0
0
0.01573
0.11385
0.090924
0.01
0.01885318
0.03
2010-11
0.001084
0.18658
0.02
0.01
0.9
0.8
0.7
0.6
0.5
0.4
0.3
0.2
0.1
0
2011-12
0.000794
0.78242
0.01
0.02
2012-13
0.009972
0.68253
0.14
0.02
Parle
Surya
Britaniya
Sunfeast
2008-09 2009-10 2010-11 2011-12 2012-13
Interpretation:
The debt-equity ratio shows the proportion of long term external equities and internal equities
I.e. proportion of funds provided by long term creditors and that provided by shareholders or
proprietors. The debt equity establishes the relationship between outside long term liabilities
and owner’s fund.
The above graph shows that Surya food has highest debt-equity ratio as compare to other
three players in last five years, which shows that Surya food’s long term liabilities are higher
than its shareholder’s fund.
The above graph also shows that Parle has very minor portion of long term liabilities (debt) in
last three years and it has no debt portion in first two years 2008-09 and 2009-10. As compare
to Surya food the other three players have very low portion of debt in its capital structure.
BUSINESS
PLAN
5.1
PROJECT PROFILE
1. Name of the Project:
BISCUIT INDUSTRY
2. Location within state/Country:
AHMEDABAD G.I.D.C.
3. Nearest Road, Rail & Sea connection:
AHMEDABAD
4. Estimated Capital Cost of the Project:
1,50,80,000
5. Raw Material:
FOOD, SUGAR, BEKARY
6. Environment Impact: The project is an Environment Friendly Activity. There will be no Ecological
imbalance and Pollution hazards to the Localities because of the Project.
7. Time-frame for selection & completion
Of selection of Project:
period of 12 months.
8. Government Incentive package applicable
To the Project:
Capital Investment, Power, Interest, Transport, subsidies, etc.
5.2 INTRODUCTION
Ahmadabad is rural area attached to the Ahmadabad city. In Ahmadabad G.I.D.C. established which declared
as a industrial zone. The Bakery is the raw material required for this project. . Biscuits are the most
consumable wheat-based bakery product. They are highly nutritious, easy to digest, compact
in size, can be preserved for a long time and are easily and cheaply transportable over a long
distance because of their lightweight, the project location is selected here. Ahmadabad is connected to
Ahmadabad and other metro city with Roads and Railways.
The making of Bekary is the most universal spread manufacturing process all over. Biscuit industry in
India in the organized sector produces around 60% of the total production, the balance 40%
being contributed by the unorganized bakeries. The industry consists of two large scale
manufacturers, around 50 medium scale brands and small scale units ranging up to 2500 units
in the country,
This industry has carved for itself an important place among the Bakery’s of the State. It would provide
fulltime employment to the labours and skilled workers.
Name of the product
"Powepack Biscuit"
Charactaricties of product
healthy
Crunchy
Light for health
With glucose
Selling phase
Which area u will cover....which class of people u will select....which of advertisement u will
select.
5.3 VISION OF THE PROJECT
“Customer Satisfaction’- by providing high quality in a professional and reliable manner through merit shop
philosophy, allowing it to be competitive, adaptable and creative”
5.4 MISSION OF THE PROJECT
•
To provide jobs to rural skilful employees.
•
To develop the economy of the region.
•
To popular eco friendly products.
•
To obtain maximum growth with minimum investment.
•
To use the modern technology to the Biscuit industries.
•
5.5 SELECTION OF THE PROJECTS
•
the main reasons that encourage me to select this project are given as follows as
•
The main raw materials for the industry,
•
Government policies beneficial to this project.
•
I am interested in the Biscuit manufacturing industry.
•
The local market not any Biscuit industry.
Today Biscuit demand increases day by day
My potential customers as follow as
•
Biscuit manufacturing company
•
Retailer of the Biscuit Product
•
Government institution like Railways, State Transport
Competitor
•
Other SME unit of biscuit in local market
•
Major Player of the industries.
•
•
•
•
•
•
•
•
•
•
Machinery to used are as follows
1.
Flour mixer
2.
Rotary forming machine for hard Biscuit
3.
Rotary forming machine for soft Biscuit
4.
Tunnel Gas Oven
5.
Oil Spray machine
6.
Cooling conveyor
7.
Layout Turning Machine
8.
Sandwich machine
9.
Packaging
5.6 MARKETING CHANNELS
The marketing channels plays important role in the distribution of the products to reach the potential
customers. The selection of the marketing channels is also important .so choose my marketing channels as
follows as
•
Wholesaler & Distributor:
These People working as a company partner because they are giving place our product.
•
Wholesaler & Retailer:
The registration with the trading companies like India mart will also be the marketing channel
LEGAL FORMALITIES
for the starting a SME unit , every unit has some legal formalities to complete for starting anew business or to
dissolve any industries. Here depicted some legal aspects which are necessary to be completed by
entrepreneurs.
1. Approval letter from DIC.
2. Power sanction assurance letter from G.E.B.
3. Certification of water supply.
4. Application for Telephone.
5. Octroi Exemption letter from Municipal council.
6. turnover tax, local area tax, purchase tax,
7. Application for loan to Urban Bank, Ahmadabad
8. Certificate from industrial pollution Office
5.7 Plant Location:
Entry Gate
Corporate
Office
Inventory
Store
Manufacturing Area
Store
Room
Toilet
Canteen
The factor influenced to choose the plant layout are as follow as:
1. Availability of Raw materials:
2. Availability of Skilful labours:
3. Good Transportation facilities:
4. Availability of the Water and Power supply:
5.8Finance
Total set up cost excluding land and building for the capacity envisaged is 29million naira
which breakdown includes machines of 14.5 M, generators 3.7M a working capital
requirement for 3 months of production of 5.4M and other cost for preliminary expenses and
NAFDAC certification.
Annual production cost for this capacity is 15.9M which includes material usage of 10M and
utility of 2.3M
At average weight of product is 25gramms/packet and 40,000 Packets Daily(1Ton) or 555
cartons daily Turnover for the first year is -N- 40.4M and a net profit before taxation of
14.9M.
According to the projected income statement, the project will start generating profit in the
first year of operation. The project’s initial investment will be fully recovered within 3
years.
5.8.1 SOURCE OF FINANCE:
Supply of finance is very important factor in the establishment of an enterprise is old. Finance is the life line of
the Business. Finance deal with the arrangement of the sufficient capital for the smooth run of the
Organization. Following are the certain sources of the finance scheme:
A) Own Capital:
According to the rules setup by the various financial institution 25% to 35% of the capital should be the
own investment of the entrepreneur. 33.33% of the project cost will be financed by the promoter himself
B) Term Loan from the Commercial Bank:
Urban co. Bank, Ahmadabad Gujarat lend Rs 1,00, 00,000 at the rate of interest 13.75%
5.8.2 Cost Of the Project
Sr No.
Particulars
Amount
1
Building
25,00,000
2
Plant and Machinery
80,00,000
3
Furniture and Misc.
2,00,000
4
Land
2,00,000
5
Preliminary and preoperative exp.
80,000
6
Working capital (3 months)
41,00,000
Total
1,50,80,000
5.8.2.1 Total Fixed Capital:
Sr no.
Particulars
Amount
1
Building
25,00,000
2
Plant and Machinery
80,00,000
3
Furniture and Misc.
1,50,000
4
Land
2,00,000
5
Preliminary and preoperative exp.
80,000
Total
10930000
5.8.2.2 Building:
Sr no.
Particulars
Cost of the item
Amount
1
Corporate Office
4,20,000
5,20,000
2
Show Room
3,50,000
3,50,000
3
Work Shop
8,00,000
9,50,000
4
Toilet
1,00,000
130,000
5
Store room
5,50,000
5,50,000
Total
2500000
5.8.2.3 Plant and Machinery:
Sr no.
Particular
Quantity
Amount
1
Hydraulic Hot press
01
50,05,000
2
Steam Boiler
01
13,10,000
3
Chimney with Ladder
01
4,90,000
4
Air-pre Heater
01
2,88,000
5
Dust controller
01
2,07,000
6
Pressure
reducing 01
3,90,000
01
3,10,000
station
7
Glue Machine
Total
8000000
5.8.2.4 Furniture and Miscellaneous Expenses:
Sr no.
Particulars
1
Furniture
2
Quantity
Amount
Office chairs
8
20,000
Almirah
8
40,000
Racks
20
50,000
Tables
2
5,000
Computer and Accessories
1
35,000
Fans
8
10,000
Sofa set
1
20,000
Work shed
-----------
20,000
Total
200000
5.8.2.5 Land
Sr no.
Particular
Price/acre
Amount
1
Land Area (2 acre)
1,00,000
2,00,000
5.8.2.6 Preliminary and Preoperative Expenses:
Sr no.
Particular
Amount
1
Deposit for Power, Water, Telephone
20,000
2
Loan Application process fees
10,000
3
Deposit for internet
5,000
4
Legal Stamp Duty and Registration
20,000
5
Travelling
13,000
6
Consultancy
12,000
Total
80000
5.8.2.7 Depreciation (per annum):
Sr no.
Types of Assets
Cost of Assets
Rate
of Amount
Depr.
1
Plant and Machinery
80,00,000
10%
8,00,000
2
Furniture
2,00,000
20%
40,000
3
Building
25,00,000
5%
1,25,000
Total
9,55,000
5.8.3 Working Capital Requirement:
Sr no.
Particular
1 Month
3 Month
1
Raw Material
11,51,000
34,53,000
2
Salary and Wages
1,25,000
3,75,000
3
Power and Fuel
24,000
72,000
4
Other Manufacturing
12,000
36,000
17,000
51,000
Expenses
5
Selling
and
Office
expenses
Total
39,87,000
5.8.3.1 Raw Material:
Sr no.
Particulars
No.
of Price/tons
Tons/month
(Rs)
Cost/month
Cost /year
1
Food
140
5000
7,00,000
84,00,000
2
Sugar
70
4000
2,80,000
33,60,000
3
Bakery
25
6800
1,71,000
20,52,000
11,51,000
1,38,12,000
Total
5.8.3.2 Salary and Wages:
Sr no.
Name of the No.
of Salary /head
Salary /month
Salary /year
Post
member
1
Manager
1
14,000
14,000
1,68,000
2
Accountant
1
9,000
9,000
1,08,000
3
Office staff
3
4,000
12,000
1,44,000
4
Chemist
1
4,500
4,500
54,000
5
Supervisor
1
6,000
6,000
72,000
6
Machine
1
5,500
5,500
66,000
Operator
7
Skilled labour
7
3000
21,000
2,52,000
8
Unskilled
10
3000
30,000
3,60,000
3
3000
9,000
1,08,000
Mechanic cum 4
3500
14,000
1,68,000
1,25,000
15,00,000
labour
9
Women
mazdoor
10
Electrician
Total
32
5.8.3.3 Power and Fuels:
Sr no.
Particulars
Per month
Per Annum
1
Fuel
8,000
96,000
2
Power
16,000
1,92,000
Total
24,000
2,88,000
Per month
Per annum
5.8.3.4 Other Manufacturing Expenses:
Sr no.
Particulars
1
Repairing
of
the 8,000
96,000
Packaging Material
4,000
48,000
Total
12,000
1,44,000
Machine
2
5.8.3.5 Office Selling, Distribution Expenses:
Sr no.
Particulars
Per month
Per annum
1
Transportation
2,500
30,000
2
Telephone and internet 1,500
18,000
bills
3
Postage
and 13,000
1,56,000
17,000
2,04,000
Stationeries
Total
5.8.3.6 Trade credit
Year :- 1495905
5.8.4 Cost of the Production:
Sr no.
Particulars
Per month
Per annum
1
Raw Material
11,51,000
1,38,12,000
2
Salary and Wages
1,25,000
15,00,000
3
Other
Manufacturing 12,000
1,44,000
Expenses
4
Consumables
20,000
2,40,000
5
Repairing of machines
15,000
1,80,000
Total
13,23,000
1,58,76,000
5.8.5 Profitability
Sr no.
Particulars
Per month
Per annum
1
Sales
18,35,274
2,20,23,288
Cost of Production
13,23,000
1,58,76,000
5,12,274
61,47,288
2
Less:
3
Gross Profit
4
Less:
Office, selling, distribution exp.
17,000
204000
5
Less:
Interest on loan
1,12,500
1350000
382774
4593288
13.75% bank
Net Profit
5.8.6 Cash Flow Statement
Particular
Rs
Operation Activity
Wages and salary
1500000
Repair & machine
180000
Manufacturing Expenses
144000
Selling & Distribution
204000
Total
2028000
Add Investment activity
Building
2500000
Plant & machinery
8000000
Furniture
200000
Land
200000
Total
10900000
Add Financial activity
Loan
10000000
Total cash flow income
22928000
5.8.7 PROFIT & LOSS ACCOUNT
Capicity Utilization
85%
2013-14
22023288
85%
79%
79%
79%
2014-15
2015-16
2016-17
2017-18
24,225,616 26,648,177 26,648,177 26,648,177
1,38,12,000
2,88,000
15,048,000 16,552,800 16,552,800 16,552,800
2,88,000
2,88,000
2,88,000
2,88,000
15,00,000
15,00,000
15,00,000
15,00,000
15,00,000
C
120,000
Administration and Selling 2,04,000
Exp.
120,000
204,000
120,000
204,000
120,000
204,000
120,000
204,000
D
Gross Profit Before Interest
6,30,3288
7,065,616
7,983,377
7,983,377
7,983,377
1,350,000
1,237,500
1,100,000
962,500
825,000
4,953,288
5,828,116
6,883,377
7,020,877
7,158,377
4,953,288
5,828,116
6,883,377
7,020,877
7,158,377
732,193
874,224
1,032,507
1,032,507
1,032,507
4,22,1095
4,953,892
5,850,870
5,988,370
6,125,870
A
B
Sales
Cost of Production
Raw Material
Power
Wages and Salaries
Factory Overhead
E
F
Total Financial Expences
Interest on Term Loan
Operating Profit
G
Preliminary Exp.
H
Profit and Loss Before Tax
I
Provision for Tax
Net Profit
5.8.8 BALANCE SHEET
At the End of
Construction
Period
Liabilities
Owner's Fund
2013-14
2014-15
2015-16
2016-17
2017-18
6,250,000
6,250,000
4,953,892
6,250,000
6,250,000
6,250,000
5,850,870
5,988,370
6,125,870
8,000,000
7,000,000
6,000,000
2,124,000
2,124,000
2,124,000
4,666,930
5,529,430
6,391,930
26,891,800
26,891,800
26,891,800
9,97,5000
9,97,5000
9,97,5000
16,552,800
16,552,800
16,552,800
6,250,000
Reserve and surplus
4,22,1095
Secured Loan
Term Laon
9,000,000
10,000,000
10,000,000
Working capital adv.
2,124,000
2,124,000
Current
Liabilities
Provision
Trade Credit
and
3,059,108
1,495,905
Creditore
Total
25,387,000
16,250,000
24,019,000
10,930,000
9,97,5000
Assets
Fixed Assets
Current Aseets , Loans And
Advances
Raw Material
9,97,5000
15,048,000
13,812,000
Cash and Bank Balance
Debtore
Miscellaneous
Expandature
and losses
preliminary Exp.
5,240,000
1,52,000
284000
284000
284000
284000
80,000
80,000
80,000
80,000
80,000
24,019,000
25387000
26,891,800
26,891,800
26,891,800
80,000
Total
16,250,000
CONCLUSION
AND
FINDINGS
6.1 CONCLUSION
After preparing a MRP-1 report on Bakery industry with special focus on biscuit products,
we have finally reached to the following conclusions;
•
Biscuit industry in India in the organized sector produces around 60% of the total
production, the balance 40% being contributed by the unorganized bakeries. The industry
consists of two large scale manufacturers, around 50 medium scale brands and small
scale units ranging up to 2500 units in the country, as at 2000-01. The unorganized sector
is estimated to have approximately 30,000 small & tiny bakeries across the country.
•
Biscuit market in India is growing at the rate of around 15-17% in every year, that means
it is still in Growth stage, Right now Biscuit market in India is about Rs.6000 crores and
it is potentially very strong to Grow at the rate of 20% in every year. Even IBMA
estimates annual growth in the range of 15% to 20% during the next five years, in the
event of reduction in the rate of VAT on Biscuits to 4%.
•
Per capita consumption of Biscuits in the country is only 1.8 kg, as compared to 2.5 kg to
5.5 kg in South eastern countries and European countries & USA respectively.
•
After making Research on Customer Loyalty of four major brands of biscuits i.e. Parle,
Britannia, Sun fest(ITC), Priyagold (Surya Food) , We can finally conclude that
Customers of Parle and Britannia are more loyal compare to other brands like Sunfeast
and Priyagold. But when we compare the loyalty of Parle and Britannia, Parle has upper
hand.
•
After making ratio analysis of biscuit industry both aggregate and individuals of four
major players, we can finally conclude that the aggregate Current ratio, Quick ratio, Net
profit ratio, Expense ratio, Capital employed and Fixed assets turnover ratios are
showing fluctuating trend in last five years, while aggregate liquid ratio and networking
capital ratio shows the decreasing trend in last five years.
•
The trend analysis of sales of biscuit industry shows that, the overall sale of Biscuit
industry is gradually increased in each year except in the year 2010-11. This trend of
industry sales shows that biscuit industry is in the growth phase.
•
The trend analysis of annual production figures of Biscuit industry shows the increasing
trend since last five years. This graph also shows that in order to meet the demand of
Biscuit products, all the firms increasing their production almost at the rate of 15 to 20 %
in each year.
6.2 FINDINGS
After preparing a MRP-1 report on Bakery industry with special focus on biscuit products,
we have finally reached to the following findings;
•
We found that Biscuit Industry is right now prevailing in Growth stage, it is grow at the
rate of 15 – 17% every year.
•
We have also found that in order to sustain the current market share all current market
players have to struggle a lot, they have to keep strong distribution channel to reach the
product in each place of the country and Parle become successful to do this.
•
Apart from strong distribution channel other factors like aggressive promotions and
advertisement, strong research and development, new innovations at regular interval on
continues basis etc. Also play a vital role in sustaining existing customers and attracting
new potential customers. This thing has been proved by ITC Sunfeast in the year 200809 was 2.7% but its aggressive efforts on new innovations and promotional schemes had
increased it market share to 6.7% in 2004-05.Britannia’s shares have dropped from 35.8
per cent in 2009-10 to 30.5 percent in May 2011 (volumes). Parle’s shares have also
dropped from 42.2 to 38.4 percent in the same period. Even Priya Gold has seen a minor
dip from 6.4 per cent to 5 per cent.
• After making Research on Customer Loyalty of four major brands of biscuits i.e. Parle,
Britannia, Sun fest(ITC), Priyagold (Surya Food) , We have also found that Customers of
Parle and Britannia are more loyal compare to other brands like Sunfeast and Priyagold.
But when we compare the loyalty of Parle and Britannia, Parle has upper hand.
BIBLIOGRAPHY
Book:
Malhotra Naresh k. (2007), Marketing Research (An Applied Orientation), Fifth edition,
Ch.8(page no.290-291)
Articles:
ITC case study by AC Nielsen
Websites:
1)
http://www.quickmba.com/marketing/product/lifecycle/
2)
http://hubpages.com/hub/Bakery-Industry
3)
http://www.shareacafe.com/pdf/History-of-Biscuits.pdf
4)
http://parleproducts.com/brands/brands_prod_biscuits.asp
5)
http://britannia.co.in/companyoverview_overview.htm
6)
http://britannia.co.in/brandstories_tiger.htm
7)
http://www.itcportal.com/foods/foods_sunfeast.html
8)
http://priyagold.com/aboutpart1.html
9)
http://priyagold.com/prod13bourbon.html
10)
http://priyagold.com/prod15marielite.html
11)
http://www.business-standard.com/india/news/priyagold-to-launch-chocolates-in
12)
http://www.moneycontrol.com/financials/britanniaindustries/balance-sheet/BI
Annexure
Balance Sheet of Britannia Industries
Mar '09
Mar '10
(Rs. Cr.)
Mar '11
Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
25.11
25.11
0
0
405.91
0
431.02
39.19
0
39.19
23.89
23.89
0
0
419.63
0
443.52
6.14
0
6.14
23.89
23.89
0
0
525.2
0
549.09
1.62
7.74
9.36
23.89
23.89
0
0
590.93
0
614.82
1.53
3.25
4.78
23.89
23.89
0
0
731.92
0
755.81
1.94
104.16
106.1
Total Liabilities
470.21
449.66
558.45
619.6
861.91
Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
273.51
146.07
127.44
0.86
291.32
122.25
19.92
7.08
149.25
90.71
0
239.96
0
176.19
59.48
235.67
4.29
46.3
250.35
154.39
95.96
31.7
330.08
134.22
44.31
16.31
194.84
83.22
0
278.06
0
223.03
97.34
320.37
-42.31
34.24
315.37
174.81
140.56
11.08
359.86
184.8
20.85
21.23
226.88
108.12
14.11
349.11
0
239.89
78.33
318.22
30.89
16.06
392.12
193.75
198.37
16.03
320.05
214.94
28.61
48.53
292.08
90.41
0.12
382.61
0
238.12
84.91
323.03
59.58
25.58
453.18
212.19
240.99
9.69
380.83
301.53
46.33
43.54
391.4
185.86
0.23
577.49
0
269.66
100.65
370.31
207.18
23.23
Total Assets
470.21
449.67
558.45
619.61
861.92
Contingent Liabilities
Book Value (Rs)
58.55
171.64
61.24
185.65
67.24
229.84
102.63
257.35
169.55
316.37
Mar '12
Mar '13
Balance Sheet of ITC (Sunfeast)
Mar '09
Mar '10
Sources Of Funds
Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Networth
Secured Loans
Unsecured Loans
Total Debt
247.68
247.68
0
0
6,101.54
60.84
6,410.06
31.56
89.29
120.85
248.22
248.22
1.21
0
7,586.28
59.9
7,895.61
88.69
156.67
245.36
Total Liabilities
6,530.91
Application Of Funds
Gross Block
Less: Accum. Depreciation
Net Block
Capital Work in Progress
Investments
Inventories
Sundry Debtors
Cash and Bank Balance
Total Current Assets
Loans and Advances
Fixed Deposits
Total CA, Loans & Advances
Deffered Credit
Current Liabilities
Provisions
Total CL & Provisions
Net Current Assets
Miscellaneous Expenses
Total Assets
Contingent Liabilities
Book Value (Rs)
( Rs. Cr. )
Mar '11
Mar '12
Mar '13
375.52
375.52
0
0
8,626.79
59.17
9,061.48
25.91
93.82
119.73
376.22
376.22
0
0
10,003.78
57.08
10,437.08
60.78
140.1
200.88
376.86
376.86
0
0
11,624.69
56.12
12,057.67
5.57
208.86
214.43
8,140.97
9,181.21
10,637.96
12,272.10
4,740.94
1,442.63
3,298.31
313.74
3,053.96
1,534.21
230.15
34.04
1,798.40
2,213.39
0
4,011.79
0
3,464.01
682.88
4,146.89
-135.1
0
5,746.27
1,795.51
3,950.76
186.15
3,874.68
2,002.99
527.76
52.45
2,583.20
1,150.25
3.21
3,736.66
0
2,499.10
1,108.18
3,607.28
129.38
0
6,227.17
2,065.44
4,161.73
399.97
3,517.01
2,636.29
547.96
67.47
3,251.72
1,188.42
788.35
5,228.49
0
2,736.95
1,389.04
4,125.99
1,102.50
0
7,134.31
2,389.54
4,744.77
1,130.20
3,067.77
3,354.03
636.69
103.54
4,094.26
1,390.19
796.62
6,281.07
0
3,113.01
1,472.84
4,585.85
1,695.22
0
8,959.70
2,790.87
6,168.83
1,126.82
2,934.55
4,050.52
736.93
153.34
4,940.79
1,949.29
416.91
7,306.99
0
3,619.76
1,645.33
5,265.09
2,041.90
0
6,530.91
8,140.97
9,181.21
10,637.96
12,272.10
171.07
256.35
92.97
315.63
98.72
23.97
129.56
27.59
308.08
31.85
Surya Foods & Agro Ltd. (Priyagold)
Mar
2008
Mar
2009
Mar
2010
Rs. Crore (Non-Annualised)
Net worth
Subscribed equity capital
Free reserves
General reserves
Balance from profit & loss account
Reserves & surplus
Total borrowings
Bank borrowings
Short term bank borrowings
Long term bank borrowings
Borrowings from corporate bodies
Group / associate cos.
Borrowings from promoters / directors
59.09
0.69
1.78
0
1.78
58.4
0.5
0.5
0.5
0
0
0
0
63.61
0.69
62.82
56.52
6.3
62.92
1
1
1
0
0
0
0
68.18
0.69
65.39
56.52
8.87
65.49
7.76
6.8
6.7
0.1
0.96
0.96
0
Other borrowings
Secured borrowings
Unsecured borrowings
Current liabilities & provisions
Sundry creditors
Deposits & advances from customers & employees
Share application money
Other current liabilities
Provisions
Deferred tax liability
Total liabilities
Net worth (net of reval & DRE)
Contingent liabilities
0
0
0.5
4.67
2.47
0.72
0.78
0.32
0.38
4.14
68.4
59.05
0.2
0
0
1
17.9
2.96
2.25
0
11.66
1.03
5.51
88.02
63.58
0.01
Gross fixed assets
Land & building
Plant & machinery
Transport & comm. equipment/infrastructure
Furniture,amenities & other fixed assets
Capital work-in-progress
Intangible assets
Less: Cumulative depreciation
Less: Arrears of depreciation
Net fixed assets
Investments
Current assets
37.4
7.44
23.87
0.81
0.39
4.89
0
4.17
0
33.23
3.01
32.11
Mar
2011
Mar
2012
Mar
2013
70.32
17.98
52.32
39.22
13.1
52.34
55.02
21.05
20.88
0.17
6.5
0
0
79
17.98
61.02
38.31
22.71
61.02
53.92
20.52
20.3
0.22
0.59
0.1
0.98
0
6.8
0.96
14.36
4.53
7.04
0
1.42
1.37
6.74
97.04
68.16
22.09
70.48
0.69
66.87
56.52
10.35
66.89
13.15
8.77
8.43
0.34
4.38
0
0
1.776E15
8.77
4.38
15.2
6
6.92
0
0.64
1.64
6.3
105.13
70.48
29.24
3.28
45.3
9.72
10.82
1.84
7.22
0
0.77
0.99
6.83
142.99
70.32
28.86
0
52.84
1.08
14.62
3.75
4.45
0
2.32
4.1
7.21
154.75
79
28.75
58.15
15.65
37.9
0.85
0.44
3.31
0
7.22
0
50.93
18.35
68.03
15.81
45.4
0.93
0.73
5.13
0.03
11.76
0
56.27
9.47
70.96
15.82
47.49
1.32
0.95
5.35
0.03
15.56
0
55.4
9.65
113.19
52.01
52.36
1.37
1.07
6.35
0.03
19.4
0
93.79
11.39
127.04
63.36
60.68
2.39
0.52
0.06
0.03
23.93
0
103.11
15.4
15.85
28.57
35.47
34.42
33.86
Cash & bank balance
Inventories
Receivables
Expenses paid in advance
Loans & advances
Deferred revenue expenditure
Total assets
Total income
Sales
Industrial sales
Income from non-financial services
Income from financial services
Interest
Other income
Prior period income & extraordinary income
Change in stock
Total expenses
PAT
PBDITA
PBDTA
PBT
0.55
27.35
3.71
0.5
0.01
0.04
68.4
0.69
11.89
2.71
0.56
2.86
0.03
88.02
0.73
20.98
5.57
1.29
2.71
0.02
97.04
1.75
24.47
7.71
1.54
4.61
0
105.13
0.79
21.72
11.6
0.31
3.39
0
142.99
1.78
19.81
12.27
0
2.38
0
154.75
115.67 197.2
115.55 197.14
114.53 196.01
1.02
1.13
0.12
0
0.12
0
0
0.02
0
0.04
0.11
1.59
115.37 194.27
0.41
4.52
2.7
9.8
2.7
9.79
1.29
6.69
282.8
282.13
280.97
1.16
0
0
0.05
0.62
1.15
281.38
2.57
9.18
9.14
4.34
318.87
318.62
318.61
0.01
0.24
0.04
0.01
0
-0.36
317.11
1.4
5.34
5.18
1.24
291.98
291.18
291.17
0.01
0.1
0.03
0
0.7
0.36
289.39
2.95
9.75
8.5
4.29
348.45
340.05
339.32
0.73
0.05
0.03
0
8.35
2.18
340.94
9.69
18.94
17.77
13.08
Parle Biscuits Pvt. Ltd.
Mar
2008
Rs. Crore (Non-Annualised)
Issued equity capital
Mar
2009
Mar
2010
Mar
2011
Mar
2012
Mar
2013
0.5
0.5
0.5
0.5
0.5
0.5
331.78
331.77
331.77
0.01
397.97
397.96
397.96
0.01
484.47
484.46
484.46
0.01
571.32
571.31
571.31
0.01
654.6
654.59
654.59
0.01
791.69
791.68
791.68
0.01
0
0
0
0.62
0.52
7.9
169.75
34.85
201.11
31.51
36.44
30.17
54.54
43.34
74.29
59.05
106.47
86.61
1.26
5.25
128.39
1.89
6.32
161.39
1.68
1.78
2.81
3.44
6.15
1.61
5.3
8.63
1.31
4.3
14.11
1.45
3.03
0
0.18
1.32
1.08
7.32
Total liabilities
505.06
599.58
521.59
628.3
730.99
913.88
Net worth (net of reval & DRE)
Contingent liabilities
323.84
8.88
398.47
18.33
484.97
41.62
571.82
47.84
655.1
72.1
792.19
72.19
Total assets
Gross fixed assets
Net fixed assets
Investments
Current assets
Loans & advances
505.06
94.09
57.83
185.61
247.05
3.16
599.58
101.17
55.66
273.91
264.59
2.18
521.59
147.04
94.6
336.61
81.4
6.47
628.3
219.76
151.73
311.81
135.56
25.5
730.99
309.66
217.61
276.85
199.81
33.56
913.88
490.92
367.19
187.18
282.98
73.37
Total income
Sales
Income from financial services
683.34
663.37
19.66
764.85
729.93
31.15
780.68
750.64
25.98
1037.99
1004.57
32.69
1437.3
1405.31
29.81
1593.3
1554.74
34.43
Total expenses
Raw material expenses
Power, fuel & water charges
Compensation to employees
Indirect taxes
Selling & distribution expenses
635.69
307.34
10.57
12.88
86.8
57.7
697.33
364.87
12.05
21.37
56.17
61.51
691.83
382.35
10.25
8.55
57.94
54.63
977.74
574.46
18.4
12.83
73.61
67.58
1389.39
842.86
24.32
14.19
91.03
80.26
1473.64
892.38
35.84
20.42
28.87
106.4
Reserves & surplus
Free Reserves
Other free reserves
Specific Reserves
Bank borrowings
Current liabilities & provisions
Sundry creditors
Deposits & advances from customers &
employees
Other current liabilities
Provisions
Deferred tax liability
Other operational exp. of indl.
Enterprises
PBT
PAT
1.13
0.84
0.76
0
0
0
66.25
47.45
99.19
66.19
125.42
86.5
115.31
86.85
111.48
83.28
192.64
137.09