1. Annual Growth:
The biscuit industry in India witnessed annual growth as below:-
2003-04 - 15%
2004-05 - 14%
2005-06 - 14%
2006-07 - 13%
2007-08 - 15%
2008-09 - 17%
(April – June)-
While the growth rate has been stagnating during last 4 years, it has picked up momentum during the 2007-08 and the first quarter of 2008-09 mainly on account of exemption from Central Excise Duty on biscuits with MRP up to Rs.100/per kg, as per Union Budget for 2007-08.
Indian Biscuit Manufacturers’ Association (IBMA), instrumental in obtaining the excise duty exemption, estimates annual growth of around 20% in the year 2008-09.
Growth in biscuit marketing has been achieved also due to improvement in rural market penetration.
2. Annual Production:
The organized biscuit manufacturing industry‘s annual production figures are given below:
(In Lakh Metric Tonnes)
2003-04 - 11.00
2004-05 - 12.54
2005-06 - 14.29
2006-07 - 16.14
2007-08 - 17.14
Segments : The organized and unorganized sectors of the biscuit industry is in the proportion Of 60%:40% ratio.
EXPORTS of Biscuit is estimated to be around 15% of the annual production during the year 2007-08.
IMPORTS of biscuits into India has not shown any significant growth during the last two years and has not affected production/sales by the Indian Biscuit industry .
3. Rural-urban penetration of Biscuit:
Urban Market :75% to 85%
Rural Market : 50% to 65%
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.
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 :-
a) 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 2008 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 |
Raw Martial |
Jan 08
|
May 08 |
| 1 |
Maida |
12.23 |
12.00 |
| 2 |
Sugar |
15.09 |
16.00 |
| 3 |
Parmoline Oil |
52.99 |
57.00 |
| 4 |
S.M.P
| 122.00 |
127.00 |
| 5 |
Butter |
118.94 |
130.00 |
| 6 |
Laminate |
200.00 |
230.00 |
| 7 |
F.O |
26.63 |
35.00 |
| 8 |
HM Bag |
91.92 |
105.00 |
| 9 |
Carbon Box Per Kg |
25.00 |
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 |
Cost per KG |
Jan 08 |
May 08 |
Difference in Rs |
In %age |
1 |
Glucose 85 gm |
31.08 |
31.73 |
0.65 |
2.09 |
2 |
Crunchy bite 150 gm |
30.18 |
32.40 |
2.22 |
7.36 |
3 |
Golmol 150 gm |
34.06 |
34.26 |
0.20 |
0.59 |
4 |
Butter 250 gm |
41.59 |
43.82 |
2.23 |
5.36 |
5 |
2 in 1 75 gm |
39.01 |
41.06 |
2.05 |
5.26 |
6 |
Milk Cream 75 gm |
46.38 |
47.28 |
0.90 |
1.94 |
7 |
Marie 17 gm |
40.37 |
41.21 |
0.84 |
2.08 |
5. Pattern of Biscuit Consumption(On Zonal basis) in the country are as below:
Northern Zone - 25%
Western Zone - 23%
Southern Zone - 24%
East and North
East Zone - 28%
(Including N.East)
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
Main Categories of Biscuits are broadly as under:
Glucose, Marie. Sweet, Cream, & Milk
Popular Brands of Biscuits in the country are, Britannia, Parle, Priyagold, Anmol, Sunfeast, Biskfarm, Dukes, Cremica, Priya, Veeramani, Bonn, Bhagwati, Raja, Champion,Sobisco,Madhabi, Nezone, Windsor, Cookieman Ankit, Shangrila, Nalanda, etc |
