A

Comprehensive Project-1
On

“A Study on Biscuits Industry

Submitted to

S. V. Institute of Management, Kadi

In partial fulfillment of the requirement of the award for

the degree of

Master of Business

Administration In

Kadi Sarva Vishwavidyalaya, Gandhinagar

Under the guidance of

Prof. Ankit Gautam

Assistant profssor

S.V.Institute of Mnagement - Kadi

Submitted by:

Name Enrolment No Exam No. Batch

Dhruv G. Patel 22MBA23063 543056 2022-24
Rutvik D.Kavar 22MBA23030 543026 2022-24
Bhavya V.Prajapati 22MBA23089 543080 2022-24
 STUDENT’S DECLARATION

We, Dhruv Patel, Rutvik Kavar and Bhavya Prajapati hereby declare that the Comprehension
Project entitled “In depth study on Biscuits Industry In India” is a result of our own work and
our Indebtedness to other work publication, references, if any, have been duly
acknowledgement.

Place:

Date:
Signature

Mr. Dhruv Patel

Mr. Rutvik Kavar

Mr.Bhavya Prajapati
 INSTITUTE’S CERTIFICATE

Certified that this summer internship project titled “In depth Study on Biscuits Industry in
India’’ is the bonfide work of Dhruv Patel, Rutvik Kavar and Bhavya Prajapati Who
carried out the research under my supervision. I also certify further, that to the best of my
Knowledge the work reported herein does not form part of any other project report or
dissertation on the basis of which a degree or award was conferred on an occasion on this or
any other candidate.

Dr. Bhavin Pandya

Professor & Head of Department
S.V. Institute of Management- Kadi

Prof. Ankit Gautam

Project Guide
Head of Department
S.V. Institute of Management - Kadi
 PREFACE

As the part of the syllabus of MBA program. We are assigned some practical and theoretical
work in partial fulfillments of the segments for the Semester Third. We have to prepare a
comprehensive report on any one industry for subject "Management Research planning" that
is also known as MRPI.

The basis purpose of this project is to enhance the knowledge of students about the industry
in its totality and appreciate the use of an integrated approach in understanding the
environmental issues and problems. This makes students more aware about Industry and its
position and makes student capable in analyzing the Industry's position in all shares. This
may also enhance student's analytical ability.

So far as the selection of the industry is concerned, we have chosen the Biscuits industry.
Biscuits industry is too vast industry, having its place in almost every industry. So we have
selected the basic of food industry as a major Biscuits industry.

Our project contains information about Biscuits industry in India. We have analyzed Political,
Economical, Social, Technological, and Environmental Factor of Industry and then find out
the Cost Driver and opportunity and threat of the industry.

We have also worked on portfolio models, porter's five competitive force analyses, Key
Success Factors (KSFs), Value Chain Analysis.

This research really enhances our knowledge about industry and its various undertaking. We
gained lot of knowledge from this project. We hope this will also help in future.
 ACKNOWLEDGEMENT

Acknowledgement is the expression of gratitude or appreciation for something. So, we would

like to express our sincere gratitude and extreme joy at bring bestowed with an opportunity to
get an interesting and informative project on “In depth Study on Biscuits Industry in
India’’ It is impossible to thank all the people who have helped us in completion of project,
but we would avail this opportunity to express our profound gratitude and ineptness to the
following people for all the help they have given us.

Through this acknowledgement, we express our sincere gratitude to all those people who
have been associated with this project and helped us with and made it a worth while
experience. We sincerely thanks to our university “Kadi Sarva Vishwavidyalaya” for
designing syllabus which includes practical studies. We sincerely thank to our college S.V
Institute Of Management for giving us a platform. We would like to thanks Director, Dr.
Bhavin Pandya and Head of the Department, Dr. Priti Salvi for providing excellent
facilities and for their generosity kindness to embrace us in SVIM, and to complete the
comprehension Project successfully.
 EXECUTIVE SUMMARY

The biscuits industry has witnessed sustained growth over the years, driven by factors such as changing
consumer lifestyles, urbanization, and the increasing demand for convenient and on-the-go snack options.
The market encompasses a wide range of products, including sweet biscuits, savory biscuits, crackers, and
cookies, catering to diverse taste preferences and dietary requirements.

Major players in the biscuits industry operate on a global scale, with well-established brands that enjoy
widespread recognition. Companies like International, Britannia Industries, Parle Products, and Nestle are
among the leading contributors to the market's growth.

Several trends shape the biscuits industry, reflecting evolving consumer preferences and industry
innovations. Health and wellness concerns have led to a rise in demand for healthier biscuit options, such
as those with reduced sugar, whole grains, and functional ingredients. Additionally, there is a growing
trend toward premium and indulgent biscuits, appealing to consumers seeking high-quality and unique
flavors.

The biscuits industry faces challenges related to raw material costs, fluctuating commodity prices, and the
need for continuous innovation to stay competitive. Increasing awareness of health issues and dietary
restrictions also pose challenges, necessitating product diversification and adaptation to changing
consumer demands.

Rapid urbanization, especially in emerging markets, provides opportunities for market expansion.
Manufacturers can capitalize on the demand for convenience and snacking options by introducing
innovative products and packaging. E-commerce and online retail channels offer new avenues for reaching
consumers directly.

Advancements in technology play a crucial role in the biscuits industry, impacting manufacturing
processes, packaging, and distribution. Continuous innovation in product formulations, including gluten-
free and plant-based options, contributes to the industry's adaptability to changing market dynamics.
Stringent regulations govern the biscuits industry, particularly regarding food safety, labeling, and
nutritional content. Adherence to these regulations is essential for maintaining consumer trust and market
access.

The biscuits industry continues to thrive amid changing consumer preferences and global economic
dynamics. Adapting to health-conscious trends, leveraging technological advancements, and exploring
emerging markets are vital strategies for sustained growth. As the industry evolves, collaboration,
innovation, and responsiveness to consumer demands will be key drivers of success.
Contents
Chapter 1........................................................................................................................................................... 3
Introduction about Biscuits Industry ................................................................................................................ 3
1.1Brief Introduction .................................................................................................................................... 7
Chapter 2......................................................................................................................................................... 11
Research Methodology ................................................................................................................................... 11
2.1 Objective of the Study........................................................................................................................... 12
2.2 Information required ............................................................................................................................. 12
2.3 Research design .................................................................................................................................... 12
2.4 Analysis plan ........................................................................................................................................ 13
2.5 Limitation of study................................................................................................................................ 13
Chapter 3......................................................................................................................................................... 14
Study of World Market ................................................................................................................................... 14
3.1 Biscuits Market Overview: ................................................................................................................... 15
3.2 Characteristic of Global Industry: ......................................................................................................... 16
3.3 PEST Analysis: ..................................................................................................................................... 18
3.4 Global Trends in Production, Consumption, product Development & Marketing ................................ 25
Chapter 4......................................................................................................................................................... 27
Study of Indian ................................................................................................................................................ 27
Market............................................................................................................................................................. 27
4.1 History of biscuits industry in india: ..................................................................................................... 28
4.2 Indian Scenario of Biscuits Industry: ................................................................................................... 29
4.3. Growth and Evolution of Biscuits Industry in India: .......................................................................... 30
CHAPTER 5 ................................................................................................................................................... 32
PRODUCT PROFILE..................................................................................................................................... 32
5.1 Classification of Biscuits: .................................................................................................................... 33
5.2 Biscuit Varieties And Types Of Biscuits : ............................................................................................ 33
5.3 GLOBAL BISCUITS MARKET REVENUE:................................................................................... 38
CHAPTER – 6 ................................................................................................................................................ 41
DEMAND DETERMINATION OF............................................................................................................... 41
THE INDUSTRY ........................................................................................................................................... 41
6.1 Price ...................................................................................................................................................... 42
6.2 Income of targeted customers ............................................................................................................... 42
6.3 Availability of Finance: ........................................................................................................................ 43
6.4 Replacement Demand ........................................................................................................................... 44
6.5 Promotion Schemes .............................................................................................................................. 44
CHAPTER – 7 ................................................................................................................................................ 46

1
PLAYER IN THE INDUSTRY...................................................................................................................... 46
7.1 Numbers of players.............................................................................................................................. 47
CHAPTER – 8 ................................................................................................................................................ 52
DISTRIBUTION CHANNEL IN ................................................................................................................. 52
BISCUITS INDUSTRY................................................................................................................................. 52
8.1 DISTRIBUTION CHANNLE IN BISCUITS INDUSTRY: ............................................................. 55
CHAPTER – 9 ................................................................................................................................................ 56
KEY ISSUE AND CURRENT TREND ........................................................................................................ 56
9.1 Key issues:............................................................................................................................................ 57
9.2 Current trend:........................................................................................................................................ 58
CHAPTER – 10 .............................................................................................................................................. 60
PESTLE ANALYSIS ..................................................................................................................................... 60
10.1 Political: .............................................................................................................................................. 62
10.2Economic: ............................................................................................................................................ 64
10.3 Social: ................................................................................................................................................. 67
10.4 Technological: .................................................................................................................................... 70
10.5 Environmental .................................................................................................................................... 73
10.6 Legal: .................................................................................................................................................. 75
Chapter 11....................................................................................................................................................... 77
Industry analysis: ............................................................................................................................................ 77
Michel porter’s five forcemodel ...................................................................................................................... 77
12.1 Rivalry among Competitors ................................................................................................................ 79
12.2 Threat of New Entry ........................................................................................................................... 80
12.3 Threat of substitute ............................................................................................................................. 82
12.4 Bargaining power of suppliers ............................................................................................................ 83
12.5 Bargaining power of buyers ................................................................................................................ 84
CHAPTER – 12 .............................................................................................................................................. 87
PORTFOLIO MODEL ANAYSIS ................................................................................................................. 87
12.1 BCG METRIX: .................................................................................................................................. 88
12.2 GE 9 (3X3 Matrix) Cell Analysis ....................................................................................................... 91
11.3 What Is Strategic Group Mapping? .................................................................................................. 93
CHAPTER – 13 .............................................................................................................................................. 98
FINANCIAL ANAYSIS ................................................................................................................................ 98
13.1 Ratio Analysis .................................................................................................................................... 99
13.2 DU- POINT ANALYSIS: -............................................................................................................. 104
CHAPTER 14 ............................................................................................................................................... 109
OT ANALYSIS ............................................................................................................................................ 109
CONCLUSION ............................................................................................................................................ 113

2
 Chapter 1
Introduction about Biscuits
Industry

3
1) Introduction about the Industry:
The history of biscuits is quite fascinating, and these baked goods have evolved over centuries. The
term "biscuit" itself has different meanings in various English-speaking regions. In the United
States, biscuits refer to a type of quick bread, while in the United Kingdom and many
Commonwealth countries, biscuits are sweet or savory baked goods, similar to what Americans
call cookies.

Here's a general overview of the history of biscuits:

Ancient Times: The concept of baking flatbreads or unleavened cakes dates back to ancient times.
Egyptians, Greeks, and Romans all had variations of flatbreads that could be considered early
precursors to biscuits.

Medieval Europe: During the Middle Ages, the word "biscuit" emerged from the Latin term "bis
coctum," meaning "twice-baked." Biscuits were baked twice to remove moisture, allowing them to
be stored for longer periods without spoiling. This made them a convenient option for sailors and
travelers.

17th Century: Biscuits became popular in England during the 17th century, particularly as a staple
for sailors on long sea voyages. The twice-baked nature of biscuits made them durable and
resistant to spoilage.

18th Century: The industrial revolution brought advancements in technology, including the
development of more sophisticated ovens and milling techniques. This led to improvements in
biscuit production.

19th Century: Biscuits continued to be a popular and convenient food item, and their production
became more widespread. The variety of biscuit types expanded, and they became a common
accompaniment to tea in England.

20th Century: Biscuits gained further popularity globally during the 20th century. Different
cultures developed their own variations, ranging from sweet cookies to savory crackers. In the
United States, biscuits took on a distinct meaning, referring to a type of soft, leavened bread
typically served with meals.

4
Contemporary Times: Biscuits remain a staple in many diets around the world. The industry has
expanded with a wide array of flavors, shapes, and sizes. Health-conscious consumers can find
options with various in1gredients, catering to different dietary preferences.

5
India Biscuits Industry came into major existence and started gaining a sound status in the bakery
industry in the later part of 20th century when the urbanized society called for ready made food
products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. But today it
has become one of the most loved fast food products for every age group. Biscuits are always
easy to carry, tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake
of biscuits are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh.
Maharashtra and West Bengal are the most industrially developed states; hold the maximum
amount of consumption of biscuits. Even, the rural sector consumes around 55% of the biscuits
in the bakery products.

Indian Biscuits Industry seems to be the largest among all the food industries and has a turnover
of around Rs.3000 crores. Indian subcontinent is known to be the second largest manufacturer of
biscuits, the first being USA. The industry is classified under two sectors: organized and
unorganized. Bread and biscuits are the major part of the bakery industry and covers around 80
% of the total bakery products in India. Biscuits today stand at a higher value and production level
than bread. This belongs to the unorganized sector of the bakery Industry and covers over 70% of
the total production.

In the year 1990 the total production of bakery products have risen from 5.19 lakh tonnes in 1975
to 18.95 lakh tonnes. Today Biscuits contributes to over 33 % of the total production of bakery
and above 79 % of the biscuits are manufactured by the small scale sector of bakery industry
comprising both factory and non-factory units in the country. The production capacity of wafer
biscuits is 60 MT and the cost is Rs.56, 78,400 with a motive power of 25 K.W. Indian biscuit
industry has occupied around 55-60% of the entire bakery production. Today the large scale
bakery manufacturers like Cadbury, Nestle, and Brooke bond had traded in the biscuit industry
but couldn't hit the market because of the local companies that produced only biscuits.
Government has established The Federation of Biscuit Manufacturers of India (FBMI) which has
confirmed a bright future of India Biscuits Industry in the year 1953. According to FBMI, a steady
growth of 15 % per annum in the next 10 years will be achieved by the biscuit industry of India.
Besides, the export of biscuits will also surpass the target and hit the global market successfully.

6
1.1Brief Introduction
Today the total production of biscuits in India is estimated to be around 30 lakh MT, the organized
sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume
and the organized sector is valued at above Rs 8000 crores. While the the biscuit industry is
estimated to grow yer 15-17% in the next few years. The biscuits per capita consumption in India
is 2.0 kg. India is ranked 3rd after US and China amongst the global biscuits producers. The export
of biscuits is approximately 17% of the annual production, the export of sweet biscuits for year
2007-08 was Rs 145.93 Cr and for year 2008-09(April-Dec) was Rs 280 Cr, the major exporting
regions were Haiti, Angola, USA, Ghana, UAE. The imports are not significant amount as
compared to the total consumption.

The penetration of biscuits in India among the urban and rural market is 85% and 55%
respectively. The annual turnover for the organized sector of the biscuit manufacturers at 2001-
02 is Rs. 4,350 crores. The annual Growth showed a decline of 3.5% in 2000-01, mainly due to
100% hike in Central Excise Duty (from 9% to 16%) by the government. Production in the year
2001-02 increased very marginally by 2.75% where in 2002-03 the growth is around 3%.
Government took initiatitive for the development as The Union Budget for 2003-04 granted 50%
reduction in the rate of Excise Duty on Biscuit i.e. from 16% to 8%. The Federation's estimate
indicates a growth of approximately 8% to 9% per year.

The market for biscuits is very promising in India. Biscuits market is one of the fastest growing
of all sectors in the fast-moving consumer goods (FMCG) category. A biscuit is a type of flour-
based baked food product. Biscuits are typically flat, hard, and unleavened. They come in both
sweet and savory varieties, with a wide range of flavors, shapes, and ingredients. Sweet biscuits
may include sugar, chocolate, icing, jam, ginger, or cinnamon, while savory biscuits can resemble
crackers and have flavors like cheese.

Biscuit is always hygienically packaged nutritious snack food available at very competitive
prices, volumes and different tastes. According to the NCAER analysis, biscuits are
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. 750and above.

7
 Market Capitalization

India Biscuits Industry is the largest among all the food industries and has a turnover of around
Rs.4350 crores.

 Size of the industry

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56, 78,400 with a motive
power of 25 K.W. Indian biscuit industry has occupied around 55-60% of the entire bakery
production.

The Indian Biscuit industry for 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 approximately
have 30,000 small & tiny bakeries across the country.

 Total contribution to the economy/ sales

Biscuit industry contribute Rs 8,000 crore to the FMCG industry today, provides vast opportunity
for growth, as the per capita consumption of biscuits is less than 2.1 kg in our country. India is
classified under two sectors: organized and unorganized. Branded /Organized to Unbranded/Un
organized market share of biscuit has been 70% for Organized sector and 30% for Unorganized
sector. Apart from Big 3(Britannia, Parle, ITC) there are around 150 medium to small biscuit
factory in India.

8
 Employment opportunities

The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people indirectly.
Brittania brand is now available in nearly 1.8 million outlets. Britannia claims that it has a superior
distribution clout with its presence which is nearly 3.3 million outlets. Parle, the seasoned player
itself, says it is available in 1.5 million outlets. Sunfeast's next step was to step up its branding
and promotion.

 Latest developments

Indian biscuit market is 1.1 million tonnes per annum at Rs 50 billion. About 90% of Indians buy
and eat biscuits. According to estimates the bakery industry in India is worth Rs 69 billion. Out
of which bread and biscuits hold about 82% of the share. The bread market has a business

volume of 1.5 million tonnes. The major factors for growth in this segment are: Brand loyalty,
volumes and strong distribution networks.

Growth in the over 40-year-old Indian biscuit industry has remained slow. The analyst's
calculations will show that per capita consumption is less than Rs 3 per month on biscuits or less
than Rs 15 per household per month.

Back in 2003, nobody thought Sunfeast would have consumers eating out of its hands.

According to the AC Nielsen retail sales audit in March 2006, both Britannia and Parle have lost
volumes. Britannia's shares have dropped from 35.8 % in 2004-05 to 30.5 % in May 2006
(volumes). Parle's shares have also dropped from 42.2 to 38.4 % in the same period. . Even Priya
Gold has seen a minor dip from 6.4 % to 5 %. ITC's Sunfeast has been a big gainer with its share
increasing from 2.7 to 6.7%.

INDIAN BISCUIT INDUSTRY AT A GLANCE IN 2021-2022

According to a Research Report, Indian Biscuit market revenue size is projected to grow at a
CAGR of 9.0% during 2021-2027. The demand for biscuit would increase on account of
increasing demand for healthy and nutritional ready-to-eat food.

Companies such as Parle Products Pvt. Ltd., Britannia Industries, ITC Limited, Mondelez India
Foods Pvt. Ltd., Surya Food & Agro Ltd., Anmol Biscuits Ltd., SAJ FOOD PRODUCTS (P)
LTD, UNIBIC Foods.

India Pvt. Ltd., Dukes Products India Limited, and Mrs Bector Food Specialities Itd., Patanjali,
Dukes Horlicks, Karachi Bakery are the leading players in the India biscuits industry.

9
The Indian chocolate market is projected to register a CAGR of 8.12% during the forecast period
(2022-2027).1

The Biscuits Market size is estimated at USD 117.05 billion in 2023, and is expected to reach
USD 149.18 billion by 2028, growing at a CAGR of 4.97% during the forecast period (2023-
2028).

1
https://www.indianmirror.com/indian-industries/2022/biscuit-2022.html
10
 Chapter 2
Research Methodology

11
2) Research Methodology:

2.1 Objective of the Study

2.1.1 Primary Objective

The main objective of this report is to In-Depth analysis of Indian Biscuits industry.

2.1.2 Secondary Objective

 To study the rapid growth of Indian Biscuits industry

 To work out the growing challenges faces by Indian Biscuits industry
 To study industry’s competitive force
 To study industry’s driving force
 To study competitive position of rivals
 To study competitive moves of rivals
 To study the existing marketing strategies adopted by Indian Biscuits industry

2.2 Information required

We need the following information:

 Global Scenario of Industry
 Study of Indian Market
 Product Profile
 Demand Determination of the Industry
 Players in the Industry
 Key Issues and Current Trends
 Government Policies

2.3 Research design

We have used exploratory research design. The data are taken from secondary sources.

12
2.2 Data collection and sources

We have obtained the secondary data from various sources like

 Books
 Journals
 Magazines
 Reports and websites

2.4 Analysis plan

We have used the following models and information in Indian Biscuits industry analysis.

 PEST Analysis
 Michel Porter’s Five Force Model
 BCG (2X2) Matrix
 Strategic Group Mapping
 GE Nine Cell (3X3 Matrix)
 Key Success Factors
 SWOT Analysis
 Driving Forces
 Value Chain Analysis

2.5 Limitation of study

 Most of the data are collected from secondary sources.

 The main focus of this project is only on biscuit industry rather than overall FMCG sector.

13
 Chapter 3
Study of World Market

14
3) Study of World Market:

3. Global scenario of biscuit industry:

Biscuits markets: The Biscuits Market size is estimated at USD 117.05 billion in 2023, and is
expected to reach USD 149.18 billion by 2028, growing at a CAGR of 4.97% during the forecast
period (2023-2028).

3.1 Biscuits Market Overview:

Biscuits are made from flour, added sugar, butter, leavening agents, and additional components
that vary in flavour. Biscuits are baked delicacies that come in a variety of flavours, fastes
sensations, and shapes. Nuts, chocolate flavour, sandwich filling, milk, chocolates, fruit, jam, or
Chocó chips can all be used to make biscuits. People all throughout the world eat biscuits as
snacks instead of a full meal. Biscuits are little biscuits with a sweet or salty flavour. Biscuits are
inexpensive, simple to prepare, and easily accessible. It has a lengthy shelf life and can be
consumed for months.

15
 Global Biscuits Market Dynamics:

Biscuits contain nutrients including carbs, lipids, and fibres, all of which are important for human
health. Biscuits are a popular breakfast food all around the world because of their nutritious
benefits. Biscuits are convenient to transport and store and they can be enjoyed as desired.
Biscuits are a convenient food product that may be enjoyed by people of all ages. Biscuits can be
eaten with or without drinks such as tea or coffee. As a result, premium quality biscuits have a
rich flavour and are widely devoured.

Rapid urbanisation, rising disposable income and unhealthy lifestyle are all market drivers
promoting global biscuits demand for a product. The advent of hypermarket and malls into the
market has led to a significant availability of many biscuits with greater choice and textures. As
part of its marketing strategy, television commercials have also become advertising methods.
Market expansion is also aided by marketing approaches and plans

low-calorie, low-fat biscuits with only natural colours and ingredients are popular among health-
conscious individuals. In addition, there are several different varieties of sugar-free biscuits on
the market, which diabetic sufferers can eat without anxiety, enhancing the biscuit market
position.

However, the shortage of food ingredients and labor along coupled with a rise in the tax rate is
estimated to restraint the market growth.

.
3 2 Characteristic of Global Industry:

The global biscuits market reached a value of USS 110.7 Billion in 2021. Looking forward, the
publisher expects the market to reach a value of USS 151.7 Billion by 2027 exhibiting a CAGR
of 5.10% during 2022-2027. Keeping in mind the uncertainties of COVID-19, we are
continuously tracking and evaluating the direct as well as the indirect influence of the pandemic.
These insights are included in the report as a major market contributor.

16
Biscuits refer to flour-based baked products that are generally unleavened, hard and flat. They are
made using flour, fat (butter or shortening), liquid (buttermilk or milk), chemical leavening agent
(baking soda or baking powder), eggs and other ingredients. Most biscuits are usually sweet and
can also comprise sugar, jam, cinnamon, icing, chocolate, and ginger. On the other hand, some
are savory and, therefore, taste like crackers. Biscuits are one of the most popular packaged
snacks, which are widely consumed by individuals of all age groups across the globe. Nowadays,
they are available in various shapes, flavors, toppings, fillings, and colors.

Global market trends:

Biscuits are a rich source of essential nutrients, including fibers, carbohydrates and fats, due to
which their demand has increased globally. The growing awareness about these product
ingredients and benefits among the masses represents the primary factor driving the market
growth. Besides this, with the rising health consciousness, consumers are shifting toward healthy
snacking options, which represents another major growth inducing factor. Additionally, several
leading manufacturers are launching innovative product variants, such as low-calorie, sugar-free,
oat-based, nut-based, and high-fibre biscuits in attractive packaging to expand their customer base
and gain a competitive edge. This, in confluence with the heavy investments in aggressive
promotional activities by key players, is driving the market growth.

17
 Furthermore, the emerging trend of food-on-the-go and the increasing consumption of bakery
products due to hectic lifestyles, inflating disposable incomes, and changing dietary habits are
catalysing the market growth. Other factors, including rapid urbanization, product
premiumization, technological advancements, and easy product availability via online and offline
retail channels, are also creating a positive market outlook.

Key Market Segmentation:

The publisher provides an analysis of the key trends in each sub-segment of the global biscuits
market, along with forecasts at the global, regional and country level from 2022-2027. Our report
has categorized the market based on product type, ingredient, packaging type and distribution
channel.

3.3 PEST Analysis:

A PEST analysis is an analysis of the external macro-environment that affects all firms. P.E.S.T.
is an acronym for the Political. Economic, Social, and Technological factors of the external
macro-environment. Such external factors usually are beyond the firm's control and sometimes
present themselves as threats. For this reason, some say that "pest" is an appropriate term for these
18
factors. However, changes in the external environment also create new opportunities and the
letters sometimes are rearranged to construct the more optimistic term of STEP analysis.

Many macro-environmental factors are country-specific and a PEST analysis will need to be
performed for all countries of interest. The following are examples of some of the factors that
might be considered in a PEST analysis.

3.3.1Political Analysis:

Trade Policies:

Tariffs and trade agreements can significantly impact the biscuits industry. Changes in trade
policies, such as the imposition of tariffs on key ingredients or finished products, may affect
production costs and market competitiveness.

Regulatory Environment:
Government regulations on food safety, labeling, and packaging can impact the biscuits industry.
Compliance with these regulations is crucial for market entry and consumer trust.

Health and Nutrition Policies:

Governments may implement policies promoting healthier eating habits, which could influence
consumer preferences and the types of biscuits in demand. This may lead to increased scrutiny of
ingredients, nutritional content, and marketing practices.

Subsidies and Incentives:

Government support through subsidies or incentives for the agricultural sector can influence the
availability and cost of key ingredients for biscuits. Subsidies for wheat, sugar, or other primary
ingredients can impact the industry's cost structure.

Environmental Regulations:
Increasing emphasis on sustainable practices and environmental regulations may affect packaging
materials and production processes in the biscuits industry. Companies may need to adapt to eco-
friendly practices to align with government initiatives.

19
Taxation Policies:
Tax policies, including corporate taxes and value-added taxes, can impact the profitability of
biscuit manufacturers. Changes in tax rates can influence production costs and pricing strategies.

Labor Policies:
Employment laws and labor policies can impact the cost of labor and workforce management for
biscuit manufacturers. Changes in minimum wage laws or labor regulations may affect overall
production costs.

3.3.2 Economic Analysis:

Market Size and Growth:

Analyze the overall size of the biscuits market and its growth trajectory. Factors such as population
growth, changing consumer preferences, and economic development can influence market
dynamics.

Income Levels and Consumer Spending:

Consumer spending on biscuits is often influenced by income levels. Economic conditions that
affect disposable income, such as employment rates and wage levels, can impact consumer
purchasing power and demand for biscuits.

Price Elasticity:
Assess the price sensitivity of biscuits. Economic downturns may lead consumers to opt for more
affordable options, while economic upturns may support premium or specialty biscuit sales.

Raw Material Prices:

The biscuits industry relies on various raw materials, including flour, sugar, and fats. Fluctuations in
commodity prices can affect production costs and profit margins for biscuit manufacturers.

Inflation and Production Costs:

Inflationary pressures can impact production costs, including labor, energy, and raw materials.
Biscuit manufacturers need to manage costs effectively to maintain profitability.

Trade and Globalization:

Assess the impact of international trade on the biscuits industry. Changes in global economic
20
conditions, trade agreements, and tariffs can influence the cost of imports and exports, affecting the
competitiveness of domestic manufacturers.
Exchange Rates:
Biscuit manufacturers involved in international trade should monitor exchange rates, as currency
fluctuations can impact the cost of imported ingredients and the competitiveness of exported
products.

Technology and Automation:

Evaluate the role of technology and automation in the biscuits industry. Investments in technology
can enhance efficiency, reduce costs, and improve overall competitiveness.

Supply Chain Efficiency:

Efficient supply chain management is crucial for the biscuits industry. Economic factors, such as
transportation costs and logistics, can impact the overall efficiency of the supply chain.

Regulatory Environment and Compliance Costs:

Economic policies and regulations, such as labor laws and environmental standards, can influence
compliance costs for biscuit manufacturers. Understanding and adapting to these regulations is
essential for economic sustainability.

3.3.3 Social Analysis:

Changing Demographics:
Analyze demographic trends such as age, gender, and ethnicity. Different demographic groups may
have varying preferences for biscuit types, flavors, and nutritional characteristics.

Lifestyle Changes:
Consider shifts in consumer lifestyles, including busier schedules and an increased focus on
convenience. Biscuit manufacturers may benefit from offering on-the-go or portion-controlled
packaging to align with changing lifestyle trends.

Health and Wellness Trends:

Monitor the growing emphasis on health and wellness. Consumer preferences may shift towards
biscuits that are perceived as healthier, such as those with natural ingredients, reduced sugar content,
or specific nutritional benefits.
21
Cultural Influences:
Recognize the impact of cultural factors on biscuit preferences. Cultural diversity can lead to a
demand for a variety of flavors and types of biscuits that cater to different tastes and traditions.

Social Media and Marketing Trends:

Social media plays a significant role in shaping consumer perceptions. Biscuit companies should be
attuned to social media trends, influencers, and online conversations to understand consumer
sentiment and adjust marketing strategies accordingly.

Ethical and Sustainable Consumption:

Increasing awareness of environmental and ethical concerns may influence consumer choices.
Biscuit manufacturers can benefit from adopting sustainable and ethical practices in production and
sourcing.

Dietary Preferences and Restrictions:

Consider the rise in dietary preferences and restrictions, such as gluten-free, vegan, or low-carb
diets. Offering biscuits that cater to specific dietary needs can expand market reach.

Food Transparency:
Consumers are increasingly interested in knowing where their food comes from and how it's
produced. Biscuit companies should emphasize transparency in labeling and supply chain practices.

3.3.4 Technological Analysis:

Automation and Robotics:

Advances in automation and robotics can enhance efficiency in biscuit production. Automated
systems for mixing, baking, and packaging can improve consistency, reduce labor costs, and
increase overall production capacity.

Quality Control Systems:

Implementing technology-driven quality control systems ensures that biscuits meet stringent
quality standards. Sensors, cameras, and other monitoring devices can identify defects and ensure
product consistency.

22
Data Analytics and Predictive Maintenance:
Utilizing data analytics can optimize production processes and predict equipment maintenance
needs. Predictive maintenance minimizes downtime, reduces costs, and enhances overall
production efficiency.

Smart Manufacturing and Industry 4.0:

Adoption of Industry 4.0 principles involves integrating smart technologies, the Internet of Things
(IoT), and real-time data analytics into the manufacturing process. This can lead to improved
production flexibility, customization, and resource utilization.

Supply Chain Management Software:

Advanced software for supply chain management facilitates efficient procurement of raw materials,
inventory management, and logistics. This technology helps optimize the entire supply chain,
reducing costs and improving responsiveness.

ERP Systems:
Enterprise Resource Planning (ERP) systems integrate various business processes, including
production, finance, and inventory management. For biscuit manufacturers, ERP systems can
enhance coordination and decision-making across different departments.

Digital Twins:
Creating digital twins of the production process allows manufacturers to simulate and optimize
operations in a virtual environment. This technology aids in identifying potential bottlenecks,
improving efficiency, and minimizing waste.

3D Printing for Prototyping:

3D printing technology can be used for prototyping new biscuit shapes and designs. This allows
manufacturers to quickly test and iterate product variations before full-scale production.

23
3.1 List of Corporate & Countries-Suppliers / Customers

Aspect Detail

By Distribution Supermarkets/Hypermarkets
Channel Specialty Retailers
Convenience Stores
Online
Others
By Application Break fast Meal
On the go Food
Snacks
Others
By Industry Foods & Beverage
Vertical Healthcare & Nutrition
Bakery Product
Others
By Country North America-US, Canada, Mexico
Europe- Germany, UK, France, Italy.Spain,
rest of Europe

Asia-Pacific- China, Japan, India, Australia. Malaysia, Thailand,

Indonesia, rest of Asia- Pacific

LAMEA: Middle East, Brazil, rest of

LAMEA
Key Market Nestlé UK Ltd.
Player
Kellogg Company

United Biscuits

Walkers Shortbread Ltd..

ITC

Britannia Industries Ltd..

Parle Products Pvt. Ltd.

Unibic

Priya Gold

Cadbury

24
3.4 Global Trends in Production, Consumption, product
Development & Marketing

Global Production and Processing System Market (2023-2030) Industry Research Report focuses
on the global Production and Processing System Market status, future forecast, growth
opportunity, key market, and key players. Also report gives detailed data about the major factors
influencing the growth of the Production and Processing System Market at the national and local
level forecast the market size, in terms of value, market share by region, and segment, regional
market positions, segment and country opportunities for growth, Key company profiles, SWOT,
product portfolio and growth strategies. The report aims to provide an additional illustration of
the latest scenario, economic slowdown, and COVID-19 impact on the overall industry.

Growing demand for healthy biscuits among millennials

Demand for biscuits has increased as a result of product innovations in the food industry and the
use of high-quality ingredients. Biscuits in various forms, such as multiple grains, Ragi, and Oats,
capture the attention of millennials who prefer to stay fit with ready-to-eat food. In addition,
bakery manufacturers are attracting customers with innovative packaging solutions, which are
expected to drive growth.

First of all, there is market research. This has to take into account many trends and the researcher
has to be fully aware of what the consumer desires. Launching a sugar-loaded indulgent biscuit
when the whole world is leaning towards healthier eating is an exercise in futility. Studies show
that the global bakery products market is forecast to reach $447 billion by the year 2017. This is
according to a report from Global Industry Analysts.

This growth largely will be driven by new consumer preferences for conveniently portioned, easy-
to-consume bakery goods. A huge developing trend is the emphasis on healthier eating, and
specifically on increasing fibre intake.

In the United States, for example, the Centre for Disease Control says Americans should eat 14g
of dietary fibre for every 1,000 calories.

The Mayo Clinic further states that men 50 years old and younger should consume 38g of fibre
per day, and older men should get at least 30g daily. For women, it is recommended they have
25g of fibre if over 50 and 21g for women under 50.
25
So, one trend the research has to take into account is this ‘healthier indulgence’ when it comes
to biscuits. And the scope for healthy indulgent foods is deep and wide. While some healthy
indulgent foods may sound like or qualify as an oxymoron, there are others with which even a
dietary expert might have a hard time finding fault.

In terms of marketing trends, companies are continually strategizing around in-store promotions,
new product development, and marketing communications . Online store sales have demonstrated
a rapid uptick, optimizing e-retail growth in the market . The most recent trend, food-on-the-go,
has become a significant factor in driving the market since it is one of the essential factors that
customers take into account when buying food products . Frequent launches of new formulations
in the basic product, such as low-fat, gluten-free, low-carb, organic, and high-fiber biscuits, to
attract consumers are expected to fuel the market’s growth .

26
 Chapter 4
Study of Indian
Market

27
 4) Study of Indian Market:

4.1 History of biscuits industry in india:

The Indian biscuit industry flourished in the baking industry in the latter half of the 20th century.
The urban community, in particular, has shown interest in food that can be cooked at a reasonable
cost. Biscuits were considered food for the sick in earlier days. However, it has become one of
the many popular fast-food products, liked by all ages. Biscuits are delicious to cat low in
cholesterol and reasonably priced. Maharashtra and West Bengal have the most advanced biscuit
industries.

The Indian Biscuit Industry seems to be the largest among all the food industries and has a limited
profit of Rs. 3000 crores. The Indian subcontinent is the second-largest producer of biscuits, the
first being the USA. The industry is divided into two categories: formal and informal. Biscuits
today stand at a higher price and production level than bread.

India is the third-largest biscuit producer, after the United States and China. The Indian biscuit
market is driven by growing consumer revenue, switching to high-end biscuits, setting up
additional production facilities, increasing health awareness, the development of
biscuits,attractive packaging, etc.

According to the recently published report "India Biscuit Market Overview, 2017-2023", the
planned biscuit market accounts for more than 70% of the overall value of the Indian biscuit
market. By 2023, the industry is estimated to generate over INR 400 billion in sales. All of the
big biscuit companies that operate in rural and urban areas are a part of the official market. The
distribution network for players like Parle and Britain in rural areas is extensive. It is fairly easy
to procure a five rupees packet of Parlé biscuits from any regular store in the rural areas. Cream,
cookies, sugar, marie, cracker, milk, and other biscuit items are available in the organised market.
Companies like Britannia, Parlé, Surya Food and Agro Limited, etc... manufacture all the types
of biscuits mentioned above, The use of biscuits in rural areas has shown better growth over the
past few years.

Along with the significant Indian biscuit players, many regional players are also involved in the
production of biscuits. These players have the same production facilities as the well-known ones.
Their biscuits are well packaged and healthy enough to eat and are available at a lower price,

28
making them affordable for low-income consumers. To increase its sales and product value,
companies have launched high-end biscuits in smaller packages. Urban areas include distribution
channels such as hypermarkets, supermarkets, general stores and "e-retailing". Electronic
marketing allows consumers to choose the type of their products and also offers a discount on
periods such as the holiday season. It is easy to buy them online from the comfort of your home.
Flipkart, Amazon, and Snapdeal are some of the leading electronics retailers in India that store
biscuits for national and international brands.

4.2 Indian Scenario of Biscuits Industry:

India Biscuits Industry is the largest among all the food industries and has a turnover of around
Rs.3000 crores. India is known to be the second largest manufacturer of biscuits, the first being
USA. It is classified under two sectors: organized and unorganized. Bread and biscuits are the
major part of the bakery industry and covers around 80 percent of the total bakery products in
India. Biscuits stands at a higher value and production level than bread. This belongs to the
unorganized sector of the bakery Industry and covers over 70% of the total production.

29
 India Biscuits Industry came into limelight and started gaining a sound status in the bakery
industry in the later part of 20th century when the urbanized society called for ready-made food
products at a tenable cost. Biscuits were assumed as sick-man's diet in earlier days. Now, it has
become one of the most loved fast food product for every age group. Biscuits are easy to carry.
tasty to eat, cholesterol free and reasonable at cost. States that have the larger intake of biscuits
are Maharashtra, West Bengal, Andhra Pradesh, Karnataka, and Uttar Pradesh. Maharashtra and
West Bengal, the most industrially developed states, hold the maximum amount of consumption
of biscuits. Even, the rural sector consumes around 55 percent of the biscuits in the bakery
products.

The total production of bakery products have risen from 5.19 lakh tonnes in 1975 to 18.95 lakh
tonnes in 1990. Biscuits contributes to over 33 percent of the total production of bakery and above
79 percent of the biscuits are manufactured by the small-scale sector of bakery industry
comprising both factory and non-factory units.

The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with a motive
power of 25 K.W. Indian biscuit industry has occupied around 55-60 percent of the entire bakery
production. Few years back, large scale bakery manufacturers like Cadbury, Nestle, and Brooke
bond tried to trade in the biscuit industry but couldn't hit the market because of the local
companies that produced only biscuits.

The Federation of Biscuit Manufacturers of India (FBMI) has confirmed a bright future of India
Biscuits Industry. According to FBMI, a steady growth of 15 percent per annum in the next 10
years will be achieved by the biscuit industry of India. Besides, the export of biscuits will also
surpass the target and hit the global market successfully

4.3. Growth and Evolution of Biscuits Industry in India:

Indian biscuit brands have gradually introduced a range of healthier options over the years to meet
customers rising health awareness. Britannia's Marie Gold was the original brand to position itself
in the healthier biscuit space by offering a lighter alternative to glucose biscuits. However, as
consumers have become more health-conscious, they are getting more discerning about the real
health quotient and more demanding about the type of benefits they expect from a healthy biscuit.

The industry's first major response to this was to promote higher fibre intake with the introduction
of digestive biscuits. This addressed concerns regarding digestive health as well as encouraging

30
 consumers to consider their cholesterol and blood sugar. The next stage of product development
was around multi and wholegrain as rising worries over cardiovascular diseases came to the fore.
More recently, oat biscuits have become a key area of product development with an awareness of
the grain's benefits being fuelled by the growing popularity of breakfast oats.

While Britannia has been the pioneer in health biscuits in India, increasing competition from
international players like McVities and Unibic, as well as smaller niche players like Gaia has led
to many product innovations quickly becoming generic across the category. To avoid being easily
imitated or falling into a 'me too' strategy, players in the Indian health biscuit market need to
understand and innovate around more complex health needs and new consumption occasions.

31
 CHAPTER 5
PRODUCT PROFILE

32
5.1 Classification of Biscuits:

Hard Biscuits: These biscuits are made with harder or stiffer dough that is dense and thick, with
good gluten within it. They are also heavier and fills fast than the other type of biscuits.

Soft Biscuits: These are much smoother dough biscuits that are easier and relatively better off to
digest. They come in both sweetened and savory variants. They are easier to break, lesser dense,
and flatter than the ones before. These biscuits also have higher levels of sugar and fat than the
former variant.

Fried Biscuits: Do you know there are also fried types of biscuits varieties? These are many
traditional variants with completely different preparation techniques. The batter and biscuit
dough are well fried in this case. These include both sweetened and unsweetened ones.

Confectionery Biscuits: These are special variant ones that often are made specifically with
fillings within them, such as chocolate, nuts, fruits, honey, jam, and more. These require much
more time and ingredients and are specialty biscuits within the broader range. Most often, they
are taken as a snack and special foods.

5.2 Biscuit Varieties And Types Of Biscuits :

1. Sandwich Biscuits:

33
These biscuit sandwiches take breakfast from blah to over-the-top! Imagine fluffy, buttery
biscuits, fresh out of the oven, cradling savory or sweet fillings. These handheld delights are a
culinary adventure wrapped up in layers of deliciousness. Luckily, you don’t have to make a
drive-thru run every time you’re craving one, either.

2. Digestive Biscuits:

Digestive biscuits are unsweet or semi-sweet biscuits that have come up in the recent past in the
context of healthy and wholesome food and living. These are high in fiber biscuits that help
oneself feel full for longer time periods. Further, they are made with wholesome flours, unlike
white flours or refined ingredients, and have more proteins and fiber than fats. They are best
when had with teas and coffees as accompaniments. However, different types of digestive
biscuits are available as well, made with special ingredients or tastes.

3. Ginger Biscuits:

34
Ginger biscuits are a popular English goodie and snack option. As the name suggests, the
biscuits are made with powdered ginger, accompanied by other baking ingredients such as flour,
cinnamon, and nutmeg. These biscuits are hard in texture yet melt in the mouth and bring a
delicious unsweetened taste to the buds. They are crunchy, crisp, and ideal to go with snack time
options alongside tea or coffee.

4. Wafer Biscuits:

Wafers are the crisp, soft, thin, and light flat textured cookie biscuits originated in Italy and
Austria. These are mostly the sweetest savory biscuits, taken with tea and coffee and snacks too.
These dry biscuits in the current context come in a range of flavors in the market, right from
vanilla to chocolaty flavor, often with a layer of the cream-filled inside. Most often, they come in
rectangle-shaped bars. By today, wafer biscuits have gained quite a lot of popularity in the
gourmet foods section.

5. Fig Roll Biscuit:

The fig roll biscuits that originated and developed in Egypt are lesser-known yet very delicious
biscuits one must try out. These are the healthy form of biscuit items that are made with the
goodness of fig paste and wheat flour that has good protein, calcium, and fiber. They are flat and
tender in form with roll filling of fig paste inside, making them the perfect snack item to fill the
hunger and bring on good satisfaction to the taste buds.

35
6. Cookies:

Cookies are a much denser and thicker form of biscuits. While a few types of biscuits are also
called cookies, most cookies come in dry, thick, crunchy, and dense forms, given the texture.
The cookies are types of bakery biscuits that may come in a varied range of flavors as well as
fillings too, with different structures within them. Cookies are filling as a snack item and are best
when had to solo or even with snacks time or drinks and tea.

36
7. Shortcake & Shortbread Biscuit:

Shortcakes are very rich and heavier biscuits. In most cases, they are combined
with cream or sugars or toppings to bring them into a fancy and delicious taste.
These are heavier in texture, thick, and come in a range of flavors and varieties.

37
5.3 GLOBAL BISCUITS MARKET REVENUE:

https://www.transparencymarketresearch.com/biscuits-market.html

38
Company Name Brand Name (variety)
PARLE Parle-G Gluco
Parle-G
20-20 Cookies
KrackJack
Monaco
Magix Creme
Fab! Range
Parle Marie
Hide & Seek Milano
Milk Shakti
Hide & Seek
Ndfe4e`0060re3xzaxza4e’;l;/utricrunch
Happy Happy
Britannia Good Day
Crackes
Nutri Choice
Mari Gold
Tiger
Milk Bikis
Jim-Jam Treat
BourbonLittel Hart
Pure magic
Nice Cream
ITC (Sunfeast) Sunfeast Marie Light
Sunfeast Dark Fantasy
Sunfeast Farmlite
Sunfeast Bounce
Sunfeast Mom’s Magic
Sunfeast Milk Biscuit
Unibic Big & Bold
Choco Kiss
Choco Ripple
Doosra Jeera
Big & Bold
Choco Kiss
Choco Ripple

39
CADBURY Oreo
Cookies choco centre
Cookies double choco
chocbakes
Bourn vita
PATANJALI Dooth biscuits
Marie biscuits
Digestive
Nariyal biscuits
Ragi cookies
Cashew cookies
creamfeat
McVITIES’S Digestive
Hobnob’s
Marie
HALDIRAM’S Atta cookies
Coconut cookies
Kaju butter
Fruits biscuits
Pista cookies
Cookies heaven
CREMICA Chocolate ceams
Coconut cookies
Digestive
Melto
Nonstop
Crackers
Party crackers

40
 CHAPTER – 6
DEMAND DETERMINATION OF
THE INDUSTRY

41
 6.1 Price
Generally, government fixes price for essential goods. For biscuits, industry body
FMBI sets the price. Since biscuits are low margin business, biscuit manufacturer
can make more profits by selling more quantity of biscuits. More quantity of
biscuits is sold to customers through various channels like – whole sellers,
distribution network, retail stores and Malls. Biscuit manufacturers give quantity
discount to Malls, inorder to sell more biscuits, which inturn will also give more
profits for the Malls.

6.2 Income of targeted customers

 India Biscuit industry is the second largest manufacturer of biscuits in the

world with the total turnover of r 3000 crores. Indian Biscuit industry is
growing at 17%. Biscuit market is dominated by Parle-G and Britannia in
India, with Parle-G having around 40% market share and Britannia
having 40% market share. Krackjack is sweet and saltbiscuit from Parle-G
and Britannia 50-50 is also a sweet and salt biscuit from Britannia.
Britannia 50-50 is a substitute for Krackjack, as it serves for the same
purpose.
 Total Mall, Star Bazaar and Big Bazaar are located in and around
Koramangala. Koramangala is an Urban area with high density of
population. The average size of these malls is around 2 lakhs sq. ft. These
malls act as market place for manufactures to sell their products directly
to the customers.

Price Elasticity

As the demand for biscuits are constant for the household, the price elasticity for
biscuits is zero. Change in price does not affect the quantity of biscuits consumed
in the house hold.

42
Demand Elasticity

As the demand for biscuits are constant for the household, the demand elasticity for biscuits is
zero, irrespective of the price change.

Income Elasticity

As the income increases or decreases, the demand for biscuits is constant for the
household. Sothe income elasticity for biscuits is zero.

Substitution effect

Consumers get the same utility value for the fixed budget for Krackjack and
Britannia 50 50. Figure 4 shows the indifference curve for Krackjack and Britannia
50 50.

6.3 Availability of Finance:

India biscuit market grew in 2017-2020 owing to the change in the lifestyle,
increase in workingpopulation and increase in the demand for ready-to-eat food
products. Furthermore, government decisions such as Retail and Wholesale
Trade in MSMEs, allowing 100% FDI in retails sector and funding Production
Linked Incentive (PLI) for enhancing manufacturing capabilities and exports
would give a tremendous boost to the retail, food, hospitality and commercial
sectors. These sectors in turn would lead to the growth in hypermarkets,
supermarkets and retail stores, thus bolstering the aforesaid market in the region.

43
6.4 Replacement Demand

Replacement demand is an important component of the future demand for

manpower often neglected in manpower demand forecasts. In particular, for
characterizing the prospects for newcomers on the labour market, the manpower
requirements method is not adequate as it merely focuses on employment
mutations. This study builds a theoretical framework to measure the historical
replacement demand distinguished by occupation and education. This framework
is extended so that in addition to employment growth forecasts, forecasts can
also be made of the future replacement demand for about 80 occupational classes
and 50 educational groups, as we have done for the Netherlands for the period
1989–1994.

6.5 Promotion Schemes

Promotion schemes is tool of the cellular services players to stay at top of the
mind of customers. Different kind of promotional schemes which shown above
attract customers. Customer activate different kind of plans and consume more
service from the operator. So, promotional schemes determine the demand.
44
45
 CHAPTER – 7

PLAYER IN THE INDUSTRY

46
 Player in the industry

7.1 Numbers of players

Company Name Brand name
Parle Parlo Gluco,20-20
Cookies,Krakjack,Monaco
Britannia Good Day, 50-50, Nutri Choice, Marie
Gold, Tiger
Itc Sunfeast Dark Fantacy, Mom’s Magic,
Sunfeast Glucose, Farmlite, Bourbon
Priya Gold Chees Cracker,Digestive, Puff, Cnc

Patanjali Doodh Biscuits, Butter Cookies, Marie,

Nariyal Cookies
Cremica Coconut Cookies, Premium Crackers,Cream

Cadbury Oreo

McVitie’s Digestivee, Oct Cookies, Marie

Unibic Anzac And Bradman

Haldiram Haldiram Cookies Or Biscuits

Nature Vally Nature Vally Crunchy

Pillsbury Pillsbury Suger Biscuits, Grands

1. Parle:

Parle Products was founded in 1929 in India by the Chauhan family of Vile Parle, Mumbai. The
founder was Mohanlal Chauhan who hailed from Pardi near Valsad in Gujarat, Parle began
manufacturing biscuits in 1939, with a license to supply their biscuits only to the British Army.

47
 Company Overview India's leading manufacturer of biscuits and confectionery. Parle's Legacy
The Legacy of90years Parle Corporate Social Responsibility Worldwide Presence Parle
biscuits and confectionaries are fast gaining acceptance in International markets...
Brands Biscuits Parle-G 20-20 Cookies KrackJack, Monaco, Magix Creme Fab.

2. Britannia:

Britannia Industries Limited is an Indian multinational FMCG company specialized in the food
industry, part of the Wadia Group headed by Nusli Wadia. Founded in 1892 and headquartered
in Kolkata, it is one of India's oldest existing companies and best known for its biscuit products.

The brand names of Britannia's biscuits include MarieGold, Tiger, Nutrichoice, Good Day, 50
50, Treat, Pure Magic, Milk Bikis, Bourbon, Nice Time and Little Hearts among others.

3. ITC:

In July 2003, ITC made a foray into the biscuits market by launching the Sunfeast range of
biscuits. Since then, Sunfeast biscuits have always stood for quality and are known for offering
innovative and wholesome biscuits.

48
ITC offers Sunfeast Biscuits across a variety of biscuit categories like Glucose, Marie, Cream
Biscuits , dark fantacy etc.

4. Priya Gold:

As an umbrella brand Priyagold has resulted in creating brand equity for all our products
globally. Owing to all these efforts today the name Priyagold is recognized as a true classic.

Priyagold sells biscuits under the Butter Bite, CNC, Marie Lite, Puff Creme, Butter Delite
brands.

5. Patanjali:

Patanjali Foods, formerly known as Ruchi Soya Industries Ltd, is an Indian multinational Fast-
moving consumer goods company specialized in the food industry, part of the Patanjali Ayurved.

Biscuits and Cookies, badam biscuits, cashew cookies, nariyal biscuits, jeerabite, butter cookies,
marie biscuits etc.

49
6. Cadbury:

Oreo is a brand of sandwich cookie consisting of two cocoa biscuits or cookie pieces with a
sweet filling. Oreos are an imitation of the Hydroxx chocolate cream-centered cookie introduced
in 1908, but it outstripped Hydrox in popularity so largely that many believe Hydrox is an
imitation of Oreo. Oreo is the best-selling cookie brand in the United States and, as of 2014, the
best-selling cookie globally.

7. Unibic:

UNIBIC has grown its range to over 40 variants and has been regularly introducing fresh &
unique flavors to cookie connoisseurs worldwide. Headquartered in Bangalore, UNIBIC is
known for its rich and flavorsome cookies that take a bite of the premium cookie market.
UNIBIC Every time a cookie lover reaches out for a real cookie, the only one that will meet the
craving is the cookie with more.

8. McVitie’s :

50
Crafting UK’s favourite biscuits for the last 186 years, we made way to India in 2010. The
legendary Digestives from McVitie’s is a name that blends together the traditions of tasty
wholewheat biscuits with the healthy benefits of fibre. Wholewheat was never so tasty with
McVitie’s bringing yumminess into healthy eating. Bite in, and get hooked to this fit habit of
eating McVitie’s biscuits with healthy wholewheat.

9. Haldiram’s Biscuits:

Haldiram's has over 410 products. Its product range includes traditional namkeens, western
snacks, Indian traditional and contemporary Sweets, cookies, sherbets, and pickles.

10. Cremica:

Cremica is a company that produces quality biscuits and breads for various brands and customers
since 1978. Cremica offers a wide range of cookies, crackers and digestive products with
different flavours, fillings and textures.

51
 CHAPTER – 8
DISTRIBUTION CHANNEL IN
BISCUITS INDUSTRY

52
Distribution channels play a crucial role in the biscuits industry, ensuring that products reach
consumers efficiently and effectively. The specific distribution strategy can vary based on factors
such as the target market, product type, and regional characteristics. Here's a general overview of
distribution channels in the biscuits industry:

1. Manufacturer to Retailer:

Direct Sales: Biscuit manufacturers often sell their products directly to retailers. This can involve
a sales team from the company working with grocery stores, supermarkets, convenience stores,
and other retail outlets.

Distributors/Wholesalers: In some cases, manufacturers may use distributors or wholesalers as

intermediaries. Distributors purchase large quantities of biscuits from manufacturers and then
sell them to retailers.

2. Manufacturer to Consumer:

Online Sales: With the rise of e-commerce, many biscuit manufacturers have established an
online presence. Consumers can purchase biscuits directly from the manufacturer's website or
through online retailers.

Branded Stores: Some large biscuit manufacturers may operate their own branded stores,
allowing consumers to buy products directly from the company's retail outlets.

3. Retailer to Consumer:

Brick-and-Mortar Retail Stores: Biscuits are widely available in traditional retail outlets,
including grocery stores, supermarkets, convenience stores, and specialty stores.

Specialty Shops: Biscuit manufacturers may partner with or supply specialty shops that focus on
gourmet or unique food products.

53
4. Institutional Sales:

Cafes, Restaurants, and Hotels: Biscuit manufacturers may sell their products directly to
businesses in the hospitality industry, such as cafes, restaurants, and hotels.

Schools and Institutions: Biscuits are often supplied to schools, offices, and other institutions
through bulk sales or contracts.

5. Export Channels:

International Distributors: For biscuit manufacturers engaged in international trade, they may use
distributors in different countries to reach a global market.

Export Agents: Some manufacturers work with export agents who specialize in facilitating the
export of goods to foreign markets.

 Effective distribution channels are essential for ensuring that biscuits are available where
and when consumers want them. Manufacturers must consider factors such as
transportation logistics, shelf life, and regional preferences when designing their
distribution strategies. Additionally, the increasing trend of e-commerce and online
shopping has prompted many biscuit manufacturers to adapt their distribution channels to
include digital platforms.

54
8.1 DISTRIBUTION CHANNLE IN BISCUITS INDUSTRY:

https://www.slideshare.net/jags009/distribution-channel-
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 CHAPTER – 9
KEY ISSUE AND CURRENT
TREND

56
 KEY ISSUE AND CURRENT TREND

9.1 Key issues:

Health and Wellness Concerns:

Consumer Demand for Healthier Options: There has been a growing consumer awareness of
health and wellness, leading to increased demand for biscuits with healthier ingredients, reduced
sugar, and natural additives.

Sustainability:

Environmentally Friendly Packaging: The industry has been facing pressure to adopt sustainable
packaging solutions as consumers become more environmentally conscious.

Supply Chain Challenges:

Logistical Issues: Supply chain disruptions, whether due to natural disasters, geopolitical events,
or other factors, can impact the availability of raw materials and the distribution of finished
products.

Regulatory Compliance:

Stringent Regulations: Compliance with evolving food safety and labeling regulations can pose
challenges for manufacturers in the biscuits industry.

57
 9.2 Current trend:

Innovation in Product Development:

New Flavors and Ingredients: Biscuit manufacturers are continually innovating with new flavors,
ingredients, and product formulations to meet changing consumer preferences.

Premiumization:

Premium and Gourmet Biscuits: There's a trend toward the development and marketing of
premium and gourmet biscuit products, targeting consumers willing to pay more for high-quality
and unique offerings.

Digital Transformation:

E-Commerce Growth: The biscuits industry, like many others, has seen an increase in online
sales as consumers prefer the convenience of purchasing snacks through e-commerce platforms.

Clean Label Movement:

Transparency and Clean Labels: Consumers are increasingly seeking products with transparent
labeling, clean ingredients, and minimal additives. Biscuit manufacturers are responding by
focusing on clean label products.

Plant-Based and Gluten-Free:

Rise of Plant-Based Options: The demand for plant-based and gluten-free biscuits has been on
the rise as consumers adopt alternative diets and lifestyles.

Snacking Culture:

On-the-Go Snacking: Biscuits are positioned as convenient on-the-go snacks, capitalizing on the
growing trend of snacking throughout the day.

58
Global and Local Fusion:

Global Flavors with Local Adaptations: Biscuit manufacturers are experimenting with global
flavors while adapting products to local tastes and preferences.

Social Responsibility:

Corporate Social Responsibility (CSR): Companies in the biscuits industry are increasingly
engaging in CSR initiatives, addressing social and environmental concerns to enhance their
brand image.

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59
 CHAPTER – 10
PESTLE ANALYSIS

60
 PESTEL ANALYSIS

A PESTLE analysis is a framework that can help to evaluate the external factors that affect the
biscuits industry in India. PESTLE stands for Political, Economic, Social, Technological,
Environmental, and Legal factors. Here is a brief summary of each factor and its impact on the
industry:

 P for Political
 E for Economic
 S for Social
 T for Technological
 L for Legal
 E for Environmental

61
10.1 Political:

The political factors include the government policies, regulations, and trade agreements that
influence the production, import, and consumption of biscuits in India.

Political factors can significantly impact the biscuits industry. Here's a political analysis that
considers various aspects:

Regulations and Compliance:

Food Safety Standards: Biscuit manufacturers must adhere to food safety standards and
regulations imposed by government bodies. Changes in these regulations can affect production
processes, labeling requirements, and overall compliance costs.

Import and Export Regulations: If a significant portion of the ingredients or final products is
imported or exported, changes in trade policies, tariffs, or international relations can impact the
industry.

Taxation Policies:

Tax Rates: Changes in tax rates, both corporate and consumer taxes, can influence the cost
structure of biscuit production and pricing.

Incentives and Subsidies: Government incentives or subsidies for certain types of food
production can also impact the competitiveness of biscuit manufacturers.

Political Stability:

Economic Stability: Political stability contributes to economic stability, which, in turn, affects
consumer purchasing power and market demand for biscuits.

Investment Climate: A stable political environment is conducive to business investments,

including those in the biscuits industry. Political instability or uncertainty may deter investments.

Trade Relations:

62
International Relations: Diplomatic relations and trade agreements between countries can affect
the ease of importing/exporting raw materials and finished products.

Sanctions: Political decisions such as sanctions can impact the ability of biscuit manufacturers to
source ingredients or distribute products in certain regions.

Consumer Protection and Advocacy:

Health Policies: Government initiatives promoting healthier eating habits can influence the
formulation and marketing of biscuits. Regulations may restrict certain ingredients or require
clearer nutritional labeling.

Advertising Standards: Political decisions on advertising standards may impact how biscuits are
marketed, especially concerning health claims and targeting children.

No Factors Highly Favourable Neutral Unfavourable Highly

favourable unfavourable
1 Government ✓
policies
2 International ✓
Relations and
trade
agreements
3 Political ✓
stability
4 Import Policy 
5 Export Policy 
Sum of score 2 4 3
Total score 9
Number of 5
factor
Average score 1.8

63
Interpretation: Above table 1.1 show that the Government policy and International Relations
and trade agreements are Favorable. Political stability and Import Policy is highly favorable. And
Export Policy is Neutral. So conclude that political factor is Favorable in edible oil industry.

10.2Economic:

An economic analysis of the biscuits industry involves examining factors related to the broader
economy that can impact production, distribution, and consumption. Here are key economic
considerations:

Consumer Income and Spending:

Disposable Income: The level of disposable income in the population directly influences the
purchasing power for biscuits. In times of economic growth, consumers may have more
discretionary income for snacks like biscuits.

Consumer Confidence: Economic stability and positive consumer confidence generally lead to
increased spending on non-essential items, including biscuits.

Inflation and Pricing:

Inflation Rates: Inflation can affect the cost of production, transportation, and raw materials.
Biscuit manufacturers may need to adjust pricing strategies in response to inflationary pressures.

Price Elasticity: Biscuits, often considered affordable snacks, may be less sensitive to price
changes. However, economic downturns can still impact consumer behavior, prompting a shift
toward lower-priced or private-label options.

Cost of Production:

Raw Material Prices: Fluctuations in the prices of key ingredients such as wheat, sugar, and fats
can impact production costs for biscuits.

64
Energy Costs: The cost of energy, including electricity and fuel, affects the overall cost structure
of biscuit manufacturing.

Trade and Exchange Rates:

Imported Ingredients: If biscuit manufacturers rely on imported ingredients, fluctuations in

exchange rates can impact costs. Changes in trade policies and tariffs can also influence the cost
of importing/exporting biscuits.

Market Demand and Supply:

Demand-Supply Dynamics: Economic conditions can influence overall market demand for
biscuits. Manufacturers need to align production levels with market demand to avoid
overproduction or stockouts.

Market Saturation: Economic factors play a role in determining the level of market saturation. In
mature markets, growth may be slower, prompting manufacturers to explore new markets or
innovate.

Global Economic Trends:

Global Economic Conditions: For multinational biscuit companies, global economic trends can
impact sales and expansion opportunities. Economic downturns in key markets may affect
overall revenue.

Emerging Markets: Economic growth in emerging markets can present opportunities for biscuit
manufacturers to expand their customer base.

Investment and Capital Expenditure:

Access to Capital: Economic conditions influence a company's ability to secure financing for
capital investments, research and development, and expansion projects.

Interest Rates: Changes in interest rates can affect the cost of borrowing, potentially impacting
investment decisions within the industry.

65
 No Factors Highly Favourable Neutral Unfavourable Highly
favourable unfavourable
1 Inflation and ✓
Pricing
2 Cost of ✓
Production
3 Trade and ✓
Exchange Rates

4 Market Demand ✓
and Supply
5 Investment and ✓
Capital
Expenditure
Sum of score 3 4
Total score 6
Number of
5
factor
Average score 1.2

Interpretation: Above table 1.1 show that the Inflation and Pricing and Investment and Capital Expenditure are
Favorable. Cost of Production, Trade and Exchange Rates and Market Demand and Supply is highly favorable. So
conclude that political factor is Highly Favorable in edible oil industry.

66
10.3 Social:

A social analysis of the biscuits industry involves examining how social and cultural factors
influence consumer preferences, behaviors, and trends. Here are key social considerations:

Changing Lifestyles and Consumer Behavior:

On-the-Go Snacking: Busy lifestyles and the need for convenient, portable snacks contribute to
the popularity of biscuits as on-the-go options.

Snacking Culture: Shifts in eating habits, including an increase in snacking between meals,
impact the demand for biscuits.

Health and Wellness Trends:

Nutritional Awareness: Growing awareness of health and wellness influences consumer choices.
There's a trend toward healthier snacks, leading to demand for biscuits with natural, organic, or
functional ingredients.

Clean Label Movement: Consumers are increasingly seeking products with transparent labeling
and fewer artificial additives, impacting the formulation and marketing of biscuits.

Diversity and Globalization:

Cultural Diversity: Biscuit manufacturers may need to consider diverse cultural preferences and
adapt their products to suit different tastes and dietary habits in various regions.

Global Flavors: The popularity of global flavors and international cuisines can influence the
development of new biscuit varieties with diverse and exotic tastes.

Demographic Factors:

Age Groups: Preferences for biscuit types may vary among different age groups. For instance,
there might be specific products targeting children, teenagers, or the elderly.

Urbanization: Urban populations may have different snacking habits than rural populations,
influencing marketing strategies and product offerings.

67
Social Media and Influencer Marketing:

Digital Influence: Social media platforms play a significant role in shaping consumer
preferences. Biscuit manufacturers often leverage social media for marketing and engage
influencers to promote their products.

Online Reviews and Ratings: Consumer reviews and ratings on online platforms can influence
purchasing decisions and brand perception.

Environmental and Social Responsibility:

Sustainability: Consumers are increasingly concerned about the environmental impact of the
products they purchase. Biscuit manufacturers are responding by adopting sustainable practices
in packaging and sourcing.

Corporate Social Responsibility (CSR): Companies that actively engage in social responsibility
initiatives, such as supporting local communities or addressing environmental concerns, may
enhance their brand image.

Cultural Celebrations and Traditions:

Seasonal and Cultural Preferences: Biscuit sales may see variations during cultural celebrations
and holidays, prompting manufacturers to introduce seasonal or culturally relevant products.

Gift-Giving Traditions: Biscuits are often chosen as gifts during festive seasons or special
occasions, influencing product packaging and marketing strategies.

Health and Dietary Trends:

Special Dietary Needs: The rising prevalence of dietary restrictions, such as gluten-free, vegan,
or low-sugar diets, influences the development of specialized biscuit products.

Functional Ingredients: Consumer interest in functional ingredients, such as probiotics or

superfoods, may lead to the incorporation of these elements into biscuit formulations.

68
 No Factors Highly Favourable Neutral Unfavourable Highly
Favourabl unfavourable
e
1 Changing ✓
Lifestyles and
Consumer
Behavior
2 Health and ✓
Wellness
Trends
3 Social Media ✓
and Influencer
Marketing

4 Cultural ✓
Celebrations
and Traditions
5 Demographic ✓
Factor
6 Diversity and ✓
Globalization
Sum of score 2 4 6
Total score 12
Number of
6
Factor
Average score 2

Interpretation: Above table 1.1 show that the Changing Lifestyles and Consumer Behavior, Demographic Factor
Highly Favorable. Social Media and Influencer Marketing, Cultural Celebrations and Traditions are favorable.
And Health and Wellness Trends, Diversity and Globalization is Neutral. So conclude that political factor is
Favorable in edible oil industry.
69
10.4 Technological:

A technological analysis of the biscuits industry involves examining the impact of technology on
various aspects of production, distribution, and consumption. Here are key technological
considerations:

Automation in Manufacturing:

Production Efficiency: The adoption of automated technologies in biscuit manufacturing

improves efficiency, reduces labor costs, and enhances overall production output.

Quality Control: Advanced technologies, such as sensors and monitoring systems, help ensure
consistent product quality by detecting deviations in the production process.

Research and Development:

Product Innovation: Technological advancements contribute to product innovation, enabling the

development of new biscuit varieties, flavors, and formulations.

Ingredient Technology: Research in food science and technology allows for the discovery and
utilization of new ingredients and technologies in biscuit production.

Supply Chain Management:

Traceability Systems: Technology facilitates the implementation of traceability systems,

allowing biscuit manufacturers to monitor the supply chain from raw materials to the end
product.

Inventory Management: Advanced software systems improve inventory management, reducing

the risk of overstocking or stockouts in the production process.

Packaging Technology:

Sustainable Packaging: Technological innovations in packaging materials and design contribute

to the development of more sustainable and eco-friendly packaging solutions.

70
Smart Packaging: Integration of technology in packaging, such as QR codes or RFID tags, can
enable better tracking and authentication of products.

E-Commerce and Digital Platforms:

Online Sales Channels: The rise of e-commerce platforms and digital marketplaces provides
biscuit manufacturers with additional avenues to reach consumers directly.

Data Analytics: Utilizing data analytics tools helps companies understand consumer behavior,
preferences, and trends, enabling targeted marketing and product development.

Food Safety and Quality Assurance:

Quality Testing Equipment: Technological advancements in testing equipment enhance the

ability to detect contaminants and ensure the safety and quality of biscuit products.

Blockchain Technology: Blockchain can be employed to enhance transparency and traceability

in the supply chain, providing consumers with information about the origin of ingredients.

Energy Efficiency:

Energy-Saving Technologies: Biscuit manufacturers adopt energy-efficient technologies to

reduce production costs and minimize the environmental impact of their operations.

Alternative Energy Sources: Exploration of alternative energy sources, such as solar or wind
power, contributes to sustainability goals within the industry.

Digital Marketing and Advertising:

Social Media Marketing: Biscuit manufacturers leverage social media platforms and digital
advertising to promote their products and engage with consumers.

E-Commerce Integration: Integration of technology in marketing and sales efforts allows for
seamless online transactions and customer experiences.

71
 Internet of Things (IoT):

Smart Manufacturing: Implementation of IoT devices in manufacturing processes enables real -

time monitoring and optimization of production conditions.Smart Vending Machines: IoT-connected
vending machines provide opportunities for innovativeand convenient distribution channels for
biscuits.

No Factors Highly Favourable Neutral Unfavourable Highly

favourable unfavourable
1 Automation in ✓
Manufacturing
2 Supply Chain ✓
Management
3 Packaging ✓
Technology
4 E-Commerce ✓
and Digital
Platforms
5 Food Safety and ✓
Quality
Assurance
6 Digital ✓
Marketing and
Advertising
Sum of score 3 4 3
Total score 10
Number of
6
factor
Average score 1.67

Interpretation: Above table 1.1 show that the Packaging Technology, Food Safety andQuality Assurance, Digital
Marketing and Advertising are highly favorable. Automation in Manufacturing and Supply Chain Management is
favorable. And E-Commerce and Digital Platforms is Neutral. So conclude that political factor is Favorable in edible oil
industry.
72
10.5 Environmental

An environmental analysis of the biscuits industry involves assessing the impact of various
environmental factors on the production, distribution, and consumption of biscuits. Here are key
environmental considerations:

Sustainable Sourcing and Agriculture:

Ingredient Procurement: Biscuit manufacturers are increasingly focused on sourcing raw

materials, such as wheat and sugar, from sustainable and environmentally friendly agricultural
practices.

Certification Programs: Participation in certification programs, like Fair Trade or organic

certifications, demonstrates a commitment to environmentally responsible sourcing.

Energy Consumption and Efficiency:

Energy-Saving Initiatives: Biscuit manufacturers implement energy-efficient technologies and

practices to reduce energy consumption during the production process.

Renewable Energy Sources: Adoption of renewable energy sources, such as solar or wind power,
contributes to reducing the environmental footprint of biscuit manufacturing.

Waste Management:

Reducing Packaging Waste: Biscuit manufacturers explore eco-friendly packaging options and
work towards reducing overall packaging waste.

Recycling Programs: Implementing recycling programs for packaging materials and encouraging
consumers to recycle contribute to sustainability goals.

Water Management:

Water Conservation: Biscuit production involves water-intensive processes. Companies

implement water-saving technologies and conservation measures to minimize their water
footprint.

73
Wastewater Treatment: Efforts to treat and manage wastewater from production processes help
mitigate environmental impact.

Carbon Footprint Reduction:

Emission Reduction Strategies: Biscuit manufacturers implement strategies to reduce carbon

emissions associated with transportation, manufacturing, and overall operations.

Carbon Offsetting: Some companies invest in carbon offset projects to compensate for
unavoidable emissions, contributing to overall carbon neutrality goals.

Packaging Sustainability:

Biodegradable Packaging: Biscuit manufacturers explore and adopt biodegradable packaging

materials to reduce the environmental impact of packaging waste.

Minimalist Packaging: Minimalist packaging designs that use less material contribute to
reducing overall packaging waste

No Factors Highly Favourable Neutral Unfavourable Highly

favourable unfavourable
1 Sustainable ✓
Sourcing and
Agriculture
2 Energy ✓
Consumption
and Efficiency
3 Waste ✓
Management
4 Carbon Footprint ✓
Reduction
5 Packaging ✓

Sustainability
Sum of score 1 4 3

74
 Total score 8
Number of
5
factor
Average score 1.6

Interpretation: Above table 1.1 show that the Carbon Footprint Reduction is highly Favorable. Sustainable Sourcing
and Agriculture, Waste Management, Packaging Sustainability is favorable. And Energy Consumption and
Efficiency is Neutral. So conclude that political factor is Favorable in edible oil industry.

10.6 Legal:

A legal analysis for the biscuits industry involves considering various legal factors that can
impact the production, distribution, and marketing of biscuits. Here are key legal considerations:

Food Safety Regulations:

Compliance with Food Safety Laws: Biscuit manufacturers must adhere to strict food safety
regulations and standards to ensure the safety and quality of their products.

Labeling Requirements: Compliance with accurate and transparent labeling of ingredients,

nutritional information, allergens, and expiration dates is crucial to meet legal obligations.

Intellectual Property Protection:

Trademark Protection: Biscuit manufacturers often rely on trademarks to protect their brand
identity. Ensuring that trademarks are registered and protected helps prevent infringement.

Patents and Trade Secrets: Protecting proprietary recipes, formulations, or manufacturing

processes through patents or trade secrets is important for maintaining a competitive edge.

Advertising and Marketing Laws:

Truth in Advertising: Adherence to laws governing truthful and non-deceptive advertising is

critical. Claims related to health benefits or nutritional content must comply with regulations..

75
 Product Liability:

Product Safety: Biscuit manufacturers can be held liable for any harm caused by
their products. Ensuring the safety of ingredients, manufacturing processes, and
product packaging is essential to mitigate legal risks.

Contractual Agreements:

Supplier Contracts: Legal agreements with suppliers for the procurement of raw
materials must be clear and comprehensive to avoid disputes and ensure a stable
supply chain.

Distribution Contracts: Contracts with distributors and retailers should clearly

outline terms, conditions, and responsibilities to avoid legal conflicts.

No Factors Highly Favourable Neutral Unfavourable Highly

favourable unfavourable
1 Food Safety ✓
Regulations
2 Intellectual ✓
Property
Protection
3 Advertising and ✓
Marketing Laws
4 Product Liability ✓
5 Contractual ✓
Agreements
Sum of score 8 3
Total score 11
Number of
5
Factor
Average score 2.2

Interpretation: Above table 1.1 show that the Food Safety Regulations, Intellectual property
Protection, Product Liability and are Contractual Agreements Favorable. And Advertising and
Marketing Laws is Neutral. So conclude that political factor is Favorable in edible oil industry.
76
 Chapter 11
Industry analysis:
Michel porter’s five forcemodel

77
12) Michel porter’s five force model:

The five force is shown in figure as under.

What Is Porter's Five Forces?

Porter's Five Forces is a model that identifies and analyses five competitive forces that shape
every industry and helps determine an industry's weaknesses and strengths. Five Forces
analysis is frequently used to identify an industry's structure to determine corporate strategy.

Porter's model can be applied to any segment of the economy to understand the level of
competition within the industry and enhance a company's long-term profitability. The Five
Forces model is named after Harvard Business School professor Michael E. Porter.

78
12.1 Rivalry among Competitors

The main driver is the number and capability of competitors in the market. Many competitors,
offering undifferentiated products will reduce market attractiveness.

 More than 10 companies are in biscuits industry in India. So, competition is very high.
 The current market growth rate is 4.97% & the biscuits companies are earning enough profit
so it attracts rivals. So, there is moderate competition among biscuits companies.
 The biscuit industry is a highly competitive market, with companies vying for market share
and consumer loyalty. The rivalry among competitors is intense, with firms competing on
price, quality, and product differentiation.
 Most of all the biscuits companies are frequently offering the price cut for their products
which leads to increase in rivalry.
 The purchase price of raw materials such as wheat, refined palm oil, and sugar has
increased, leading to a rise in input costs by 35-40%. This has resulted in the industry being
unable to honour contracts on agreed pricing that’s why easily switchover possible. So,
rivalry is very high.

Very
High Medium Low Very
High
Particulars Description (2) (3) (4) Low (5)
(1)
No. of Players More than 10

Market Growth Good

Rate
Frequent Price Yes
Cut by Rival

Switching Cost of Easy

Buyers

Total 3*1=3 1*3=3

Average 3+3 = 6/4 = 1.5

79
Parle has strong position in biscuit industry of India. All these companies are providing same
kinds of products. Price, offers all are similar so, competition has been increased among
biscuits companies. So, rivalry in biscuits industry is very high.

Strategies to tackle competitive rivalry

 Always expanding the product range.

 New ways of advertising.

 Entry in new market segment as well as new geographical area

 Always providing something new and extra in terms of product.

12.2 Threat of New Entry

Profitable markets attract new entrants, which erodes profitability. Unless incumbents have
strong and durable barriers to entry, for example, patents, economies of scale, capital
requirements or government policies, then profitability will decline to a competitive rate.

 Due to good profit margin, existing competitors are earning more and more profit and
finding some gap and new entrants can enter so threat of new entry is high.
 The biscuit industry is in growing stage, which attracts new companies also. So, threat
of new entry is very high.
 Industry growth rate is 4.97%, which is good and leads to increase the threat of new
entry.
 Requirement of economies of scale is must in biscuit industry, so threat of new entry is
very low.
 Access to distribution channel is easy so threat of new entry is very high as any new
enterer can easily get the distribution network.
 Access to raw material is easy. Any new enterer can get raw material with less difficulty.
So, threat of new entry is high.
 Capital requirement for biscuit business is high. So, threat of new entry is low.
 Buyer can easily switch over for other company’s services. So, the threat of new entry
is very high.
 Brand preference and customer loyalty is low. So, threat of new entry is very high.

80
 Very Very
High High Medium Low Low
Particulars Description (2) (3) (4)
(1) (5)

Existing Profit
Competitors are Margin is
earn good Profit
good
Industry Outlook Good
Industry Growth
rate High
Importance of
Economy of Important
scale
Access to
Distribution Easy
Channel
Access to Raw Easy
Material
Capital High
Requirement
Buyer’s Switching Low
Cost
Brand Preference
and Customer Low
Loyalty
Taxation low
Total 5*1=5 3*2=6 0*3=0 1*4=4 1*5=5
Average 5+6+4+5=20/10 = 2

Since current machine technology for produce biscuits involve heavy capital investment so
chances of success for new entrants are very limited. Still, it is seen that few new entrants
like unibic is growing very rapidly.

So, the threat of entry biscuit industry is high.

81
Strategies for tackling new competitors in Indian biscuits industry

 Reducing the product and service price.

 New advertisement campaign.
 Pressurizing the government to make the policy tough for new competitors.
 New offer for current customer in terms of price and service.

12.3 Threat of substitute

Where close substitute products exist in a market, it increases the likelihood of customers
switching to alternatives in response to price increases. This reduces both the power of
suppliers and the attractiveness of the market.

 Here the substitutes of biscuits are pecan nuts, salt & vinegar rice cake, fibre one
chocolate fudge brownies etc which are easily available so threat of substitutes is very
high.
 Price of close substitutes is mostly same as biscuits. So, threat of substitutes is
moderate.
 The cost of moving from biscuits to it’s substitute is very low. So, threat of substitutes
is very high.

Very Very
High High Medium Low Low
Particulars Description (2) (3) (4)
(1) (5)
Availability of
Easily
Close Available
Substitutes
Price of Close Moderate
Substitute
Switching
Cost Low
Total 2*1=2 1*3=3
Average 2+3=5/3 = 1.67

82
Presence and easy availability of substituted products is a great threat for the successful
survival of any organization since it can enforce the company to cut the price of its product.
Here, in biscuit industry many substitutes are available and with same or less price so, Threat
of substitutes is high.

Strategy of tackling threats of substitute products in biscuits industry

 Product innovation at regular basis.
 Keeping price according to market level
 Negotiation with suppliers for high quality raw materials.

12.4 Bargaining power of suppliers

An assessment of how easy it is for suppliers to drive up prices. This is driven by the: number
of suppliers of each essential input; uniqueness of their product or service; relative size and
strength of the supplier; and cost of switching from one supplier to another.

 Biscuits such as crackers and cookies are using the common main ingredients such as
wheat flour, salt, yeast etc. can be easily find from many different suppliers.
 It could possible to have better supplier that able to supply with lower price at any point
of time. Therefore, the bargaining cost of supplier is relatively low and the switching
cost is very low as well.
 The biscuit industry principle raw material requirements are that of when flour,
shortening, salt volatile, sweet jelly, glucose, and starch.
 High supplier concentration across the country for the supply of where flour, sugar, and
salt. Forward integration is possible so bargaining power of suppliers is very high.
 There are many suppliers available in this industry that’s why switching cost of
companies are very low so, bargaining power of suppliers very low.

Very
High Medium Low Very
Particulars Description High
(2) (3) (4) Low (5)
(1)
No. of Suppliers Many

83
 Price of Raw Low
material

Switching cost Low

Forward
Integration Yes
Total 1*1=1 1*4=4 2*5=10
Average 1+4+10=15/4 = 3.75

From the results we can say that there are many suppliers in the industry and low cost of
switching suppliers. So, bargaining power of suppliers is low.

Strategies of tackling new competitors in Indian biscuits industry

 Apply forward integration

 Make innovative product

12.5 Bargaining power of buyers

An assessment of how easy it is for buyers to drive prices down. This is driven by the:
number of buyers in the market; importance of each individual buyer to the organisation;
and cost to the buyer of switching from one supplier to another. If a business has just a few
powerful buyers, they are often able to dictate terms.

 Numbers of buyers are there for purchasing the biscuits. So their bargaining power
is high.

 Today, most of the buyers are well informed with the ingredient of biscuits and all
it’s information. They have high bargaining power.

 Buyers are scattered all around the world, so they have low bargaining power.

 Buyers are not loyal as they can easily switchover to another company because of
easy availability of different types biscuits. Buyers are price sensitive. So they
possess very high bargain power over companies.

84
  All the biscuits companies almost provide same products except some product. So
buyers have high bargaining power.

 Here, switching cost of buyers are very low. so, bargain power of buyers is high.

Very Very
High High Medium Low Low
Particulars Description (2) (3) (4)
(1) (5)
No. of Buyers More
Buyers are well informed Yes
Buyers are
scattered/concentrated Scattered

Buyers are loyal No

Stronger Differentiated
products are available No

Switching cost Low

Total 4*1=4 1*2=2 1*4=4

Average 4+2+4=10/6 = 1.67

From the results we can say that there are many buyers in there with well informed about
products in this industry buyers don’t loyal very much and switching cost also very low. So,
bargaining power of buyers is high.

85
 Conclusion: Porters’ Five Force Model

Forces Degree
Rivalry among competitors Very High
Threat of New Entry High
Threat from Substitutes High
Bargaining power of Suppliers Low
Bargaining Power of Buyers High

So far very little analysis is done on Biscuits industry using Porter five forces model. Analysis
indicates that although to meet competition the top biscuits companies are struggling hard but
the presence of strong rivals has put a challenge. From above discussion, we may conclude that
the presence of rivals is the main area that needs management serious attention. Companies
may follow the strategy of horizontal integration by taking the decision of merger or acquisition
with any of its one or two rivals. Continuous innovative practices, research & development and
customer retention and satisfaction and find market gap and do work on this are the aspects
which can reduces the uncertainty.

86
 CHAPTER – 12
PORTFOLIO MODEL ANAYSIS

87
 PORTFOLIO MODEL ANALYSIS

12.1 BCG METRIX:

The BCG matrix is a chart that had been created by Bruce analysing their business units or
product lines. This helps the company allocate resources and is used as an analytical tool in
brand marketing" product management" strategic management" and portfolio analysis.

Market Relative market

No Company share share

1 Parle 40 1

2 Britannia 38 0.95

3 Priya Gold 15 0.38

4 ITC 11 0.28

5 UNIBIC 6 0.15

88
 Relative Market Growth

PARLE

BRITANNIA

Market Share

PRIYA
GOLD
ITC &
UNIBIC

89
12.1.2 Findings:

We have put all the companies table as per industry growth rate in relative market share. In 2022-
23 edible oil industry of India growth rate 9.0% which can see on horizontal axis and we have
put other companies on vertical axis as per as relative market share. We can easily see that Parle
and Britannia is the market leader having 40% and 38% market share. Priya Gold is having
15% , ITC having 11% market share and lowest market share have Unibic is 6%.

Strategy recommendation for star (High growth rate, high market share)
A leader strategy of Parle and Britannia has star (hold) position in the BCG matrix. This is
market leader of Biscuits industry. Parle and Britannia has high market share and high rate, so
it’s in star position.

Strategy recommendation for cash cow (Low growth rate, High market share)
Here Priya Gold has cash cow position in BCG matrix. They have Low growth rate, High market
share compare to Parle and Britannia.

Strategy recommendation for Dogs (low dogs, low market share)

Here ITC and Unibic has Dogs position in BCG matrix. They have low dogs, low market share
compare to Parle, Britannia and Priya Gold.

90
12.2 GE 9 (3X3 Matrix) Cell Analysis
The GE McKinsey matrix comprises two axes. The attractiveness of the market is
represented on the y- axis and the competitiveness and competence of the business unit are
plotted on the x-axis. Both axes are divided into three categories (high, medium, low) thus
creating nine cells. The business unit is placed within the matrix using circles

Industry Attectrivness

Below table shows the Industry attractiveness for telecom sector.

Factor Weight Rate Industry Attractiveness

Market Size 0.21 11 2.31

Industry Profitability 0.20 10 2

Growth Rate 0.12 8 0.96

Opportunities and Threats 0.11 8 0.88

Competition 0.16 7 1.12

Social & Political Factors 0.09 6 0.54

Technology 0.08 5 0.4

Switching Cost 0.03 2 0.061

1 8.27

[Rating Scale: 1 = very weak, 10 = very strong]

91
Competitive Strength:

Factor Weigh Rate Competitive Strength

P B PG I U P B PG I U
Relative Market Share 0.24 9 7 8 7 6 2.16 1.68 1.92 1.68 1.44
Marketing and 0.19 8 6 7 5 5 1.52 1.14 1.33 0.95 0.95
Advertising Strategies
Geographic Coverage 0.17 8 7 6 6 5 1.36 1.19 1.02 1.02 0.85
Cost Relative to 0.16 7 5 4 5 4 1.12 0.8 0.64 0.8 0.64
Competitors’ Cost
Profitability Relative to 0.12 7 6 5 4 3 0.84 0.72 0.6 0.48 0.36
Competitor
Brand Image &
0.08 5 4 3 2 2 0.4 0.32 0.24 0.16 0.16
Reputation
Online Marketing 0.04 2 2 1 1 1 0.08 0.08 0.04 0.04 0.04
1 7.48 5.93 5.79 5.13 4.44

[Rating Scale: 1 = very weak, 10 = very strong]

92
 PARLE

BRITANNIA
PRIYA GOLD
ITC
UNIBIC

CADBURY

11.3 What Is Strategic Group Mapping?

Strategic Group Mapping Is A Method To Display The Position That Rival Organizatio ns Hold
In A Competitive Industry. In A Strategic Group Mapping Example, Variables Such As Price,
Product-Line Breadth Or Area Of Operations Are Represented. Strategic Group Maps Are
Visual Representations Of The Industry That Aid In Decision Making. It’s constructed in the
Form of a Graph, By Assigning Variables to Each Axis. Strategic Group Map Analysis Reveals
The Competitive Nature Of The Strategic Groups In The Industry.

Purpose of Strategy Group Mapping

It’s Important to Answer “What Is Strategic Group Mapping?” And Understand Its Purpose. An
Organization May Use It to Analyze a Rival’s Position. They May Also Use It To Identify Areas
For Improving Their Own Systems. Strategic Group Mapping Example Can Help Organizations
in the Following Ways:
93
They Can Better Identify Barriers to Entry and Exit
 It Can Help Decide Which Strategic Group An Organization Should Consider Entering
 It Helps Identify Strategic Areas That Can Help Gain Benefits
 It Shows The Organization’s Position In The Industry Compared To Its Competitors
 It Identifies The Best Organizations In The Industry
 It Pinpoints Industry Rivals
 Strategy Group Mapping Allows An Organization To Deal With The Threat Of
Competition As Well As Use It For Its Own Development.

Strategic Group Map Analysis

We’ve looked at How Strategic Group Map Analysis Is Used to Analyze the Rivalry and
Competitive Environment among Competitors in an Industry. Here’s How It Helps in Dealing
with Competition:

 It Helps In Shaping The Moves Of An Organization By Identifying The Strategic

Direction Of Direct Rivals In The Industry
 It Helps An Organization Find Alternate Paths Or Solutions By Identifying Strategies
Used By Organizations Of Other Strategic Groups
 It Helps In Discovering Untapped Opportunities In The Market By Identifying Areas
With Little Or No Competition.
 Now That We Know How Strategy Group Mapping Can Help, Let’s Look at How It’s
Done.

How to Construct Strategic Group Maps

Strategy Group Mapping Is the Most Effective Method For Analysing Strategic Gro ups And
Their Positions In The Market. Here Are the Ways to Construct a Strategic Group Map:

 Identify Main Competitors

94
 It’s Important to Thoroughly Analyse The Competitors By Looking Into Their
Objectives, Future Strategies, Products And Services, Weaknesses, Strengths And Their
Impact On The Market. Create a Competitor’s Profile for Main Competitors to Refer to
In The Future.

 Identify Strategic Characteristics

Organizations In the Same Strategic Group Can Be Differentiated Based On
Characteristics Such As Company Size, Cost Position, Brand Image, Product Quality,
Product Diversity And Price Policy.

 Plot The Organizations on The Graph

State The Two Variables of The Axes On The Map And Assign A Position To Each
Organization. The Closest Organizations Will Belong to The Same Strategic Group. The
Size of Group
Will Depend on Market Share. Plot Similar Maps Using Different Variables.

Interpret the Map

An Analysis Will Reveal the Direct Rivals And Their Positions. Interpreting The Map Will Help
Improve Strategies as Well As Identify Other Positions In The Market That Can Provide A
Competitive Advantage.

Strategy Group Mapping Helps Create, Implement And Monitor Strategies Of An Organization.
It Helps Understand The Competitive Landscape Of An Industry And Develop Suitable
Strategies To Attract Customers Away From The Competitors.

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Of Outplacement Services That Will Help Organizations Tap Into Employee Potential.

In the context of the biscuit industry, strategic group mapping might involve identifying
different segments or groups of biscuit manufacturers based on key strategic factors. These
factors could include:

Product Differentiation: Companies may be grouped based on the level of product

differentiation, such as premium biscuits, health-focused biscuits, or economy biscuits.

Price Range: Biscuit manufacturers may be grouped based on their pricing strategy, whether
they focus on high-end, mid-range, or low-cost products.

Distribution Channels: Companies may be categorized based on their distribution strategies,

such as those focusing on traditional retail, supermarkets, or online sales.

Geographic Presence: The geographic reach of companies can also be a dimension, with some
companies having a national or international presence and others focusing on regional markets.

Brand Image: Companies may be grouped based on the strength of their brand image and the
perception of their products in the market.

Innovation and Technology: Some companies may be positioned as leaders in innovation and
technology, offering unique or technologically advanced biscuit products.

Mapping these dimensions allows companies to identify where they stand in relation to their
competitors and helps them make informed strategic decisions. It also provides insights into
potential areas for differentiation and competitive advantage.

96
 Graph Strategic Group Mapping

High ITC
CADBURY
BRITANNIA
Brand Awareness

PARLE

UNIBIC

PRIYA
GOLD
Low

Low Variety of product High

97
 CHAPTER – 13
FINANCIAL ANAYSIS

98
 13.1 Ratio Analysis

1. Return on Assets (ROA)

ROA: - Net Income / Total Assets

Return on Assets (ROA) is a financial ratio used to calculate the benefit an investor will receive
in relation to their investment cost. It is most commonly measured as net income divided by the
original capital cost of the investment. The higher the ratio, the greater the benefit earned. Return
on investment is a performance measure used to evaluate the efficiency of an investment or
compare the efficiency of an investment or corporate the efficiency of a number of different
investments.

Year 2023 2022 2021 2020 2019

0.18 0.07 -2.0 0.17 3.76

PARLE
24.76 22.89 23.73 20.46 19.85
BRITANNIA
-4.69 -10.99 -19.46 -15.97 -7.62
PRIYA GOLD
22.79 20.05 18.20 20.11 17.85
ITC

Interpretation:

You can see that table no 1 top 5 company in India compare with year 2019 to 2023. Parle company
2023 ROA is 0.18% decreased compare to 2019 its ROA is 3.76%. In 2020, 2021, 2022 its ROA is 0.17%,
(2.0%), 0.07%. Britannia Company 2023 ROA is 24.76% increased compare to 2019 its ROA is 19.85%.
In 2020, 2021, 2022 its ROA is 20.46%, 23.73%. 22.89%. Priya Gold Company 2023 ROA is (4.69%)
decreased compare to 2019 its ROA is (7.62%). In 2020, 2021, 2022 its ROA is (15.97%), (19.46%),
(10.99%). ITC Company 2023 ROA is 22.79 % increased compare to 2019 its ROA is 17.85%. In 2020,
2021, 2022 its ROA is 20.11%, 18.20%, 20.05%.

99
 2. Net Profit Margin Ratio: -

This ratio shows interrelationship between sales price and cost of goods sold. This
ratio can be finding out by dividing gross profit with net sales.

Profit Margin Ratio: - profit after tax /sales *100

Year 2023 2022 2021 2020 2019

37.23 0.00 -3328.34 0.91 8.42

PARLE
13.69 11.98 14.21 13.50 10.70
BRITANNIA
0.00 0.00 0.00 -40.98 -16.35
PRIYA GOLD
28.39 26.72 28.65 33.17 27.70
ITC

Interpretation:

You can see that table no 1 top 5 company in India compare with year 2019 to 2023. Parle company
2023 profit margin Ratio is 37.23% increased compare to 2019 its profit margin Ratio is 8.42%. In 2020,
2021, 2022 its profit margin Ratio is 0.91%, (3328.34%), 0.00%. Britannia Company 2023 profit margin
Ratio is 13.69% increased compare to 2019 its profit margin Ratio is 10.70%. In 2020, 2021, 2022 its profit
margin Ratio is 13.50%, 14.21%. 11.98%. Priya Gold Company 2023 profit margin Ratio is 0.00%
decreased compare to 2019 its profit margin Ratio is (16.35%). In 2020, 2021, 2022 its profit margin Ratio
is (40.98%), 0.00%, 0.00%. ITC Company 2023 profit margin Ratio is 28.39% increased compare to 2019
its profit margin Ratio is 27.70%. In 2020, 2021, 2022 its profit margin Ratio is 33.17%, 28.65%, 26.72%.

100
 3. Return on Equity Ratio: -

Return on equity measures the percentage of net earnings after tax of Bank on its
total equity. ROE is measures of profitability of Bank it shows how much profit
bank has made. This ratio shows what amount of dividend is likely to be received
on share.

ROE= Net Income/Shareholder’s Equity

Year 2023 2022 2021 2020 2019

0.19 0.09 -2.43 0.24 4.61

PARLE
67.24 66.72 53.02 34.72 27.78
BRITANNIA
0.00 0.00 0.00 0.00 0.00
PRIYA GOLD
27.74 24.52 22.08 23.63 21.50
ITC

Interpretation:

You can see that table no 1 top 5 company in India compare with year 2019 to 2023. Parle company
2023 ROE is 019% decreased compare to 2019 its ROE is 4.61%. In 2020, 2021, 2022 its ROE is
0.24%, (2.43%), 0.09%. Britannia Company 2023 ROE is 67.24% increased compare to 2019 its ROE is
27.78%. In 2020, 2021, 2022 its ROE is 34.72%, 53.02%. 66.72%. Priya Gold Company 2023 ROE is
0.00% decreased compare to 2019 its ROE is 0.00%. In 2020, 2021, 2022 its ROE is 0.00%, 0.00%,
0.00%. ITC Company 2023 ROE is 27.74% increased compare to 2019 its ROE is 21.50%. In 2020,
2021, 2022 its profit margin Ratio is 23.63%, 22.08%, 24.52%.

101
 Return on Capital Employed:
Return on capital employed is an accounting ratio used in finance, valuation, and acco unting. It
is a useful measure for comparing the relative profitability of companies after taking into account
the amount of capital used.

ROCE = Operating profit / capital employed *100

Year 2023 2022 2021 2020 2019

0.76 0.25 -3.83 0.71 8.55

PARLE
57.73 72.25 60.59 38.79 42.19
BRITANNIA
-110.54 -39.26 -632.63 -75.74 -27.99
PRIYA GOLD
35.39 31.23 28.02 29.26 30.70
ITC

Interpretation:

You can see that table no 1 top 5 company in India compare with year 2019 to 2023. Parle company
2023 ROCE is 0.76% decreased compare to 2019 its ROCE is 8.55%. In 2020, 2021, 2022 its ROCE is
0.71%, (3.83%), 0.25%. Britannia Company 2023 ROCE is 57.73% increased compare to 2019 its
ROCE is 42.19%. In 2020, 2021, 2022 its ROCE is 38.79%, 60.59%. 72.25%. Priya Gold Company
2023 ROCE is (110.54%) increased compare to 2019 its ROCE is (27.99%). In 2020, 2021, 2022 its
ROCE is (75.74%), (632.63%), (39.26%). ITC Company 2023 ROCE is 35.39% increased compare to
2019 its ROCE is 30.70%. In 2020, 2021, 2022 its ROCE is 29.26%, 28.02%, 31.23%.

102
 LIQUIDITY RATIO

4. Current Ratio: -

The current ratio is a liquidity ratio that measures a company's ability to pay short-
term obligations or those due within one year. Current ratio is calculated by
dividing firm’s current assets by current liability. This ratio indicates the
company’s burden and his paying ability. Standard liquidity ratio is 1:1.

CR: - Current Assets / Current Liability

Year 2023 2022 2021 2020 2019

206.96 72.07 6.48 3.44 4.81

PARLE
1.15 0.93 1.21 1.45 1.94
BRITANNIA
0.16 0.14 0.10 0.19 0.37
PRIYA GOLD
2.84 2.70 3.13 4.02 3.07
ITC

Interpretation:

You can see that table no 1 top 5 company in India compare with year 2019 to 2023. Parle company
2023 CR is 206.96% increased compare to 2019 its CR is 4.81%. In 2020, 2021, 2022 its CR is 3.44%,
6.48%, 72.07%. Britannia Company 2023 CR is 1.15% decreased compare to 2019 its CR is 1.94%. In
2020, 2021, 2022 its CR is 1.45%, 1.21%. 0.93%. Priya Gold Company 2023 CR is 0.16% decreased
compare to 2019 its CR is 0.37%. In 2020, 2021, 2022 its CR is 0.19%, 0.10%, 0.14%. ITC Company
2023 CR is 2.84% decreased compare to 2019 its CR is 3.07%. In 2020, 2021, 2022 its CR is 2.70%,
3.13%, 4.0%.
.

103
13.2 DU- POINT ANALYSIS: -
About DuPont Analysis DuPont analysis is a method of performance measurement that was
started by the DuPont Corporation in the 1920s. With this method, assets are measured at their
gross book value rather than at net book value to produce a higher return on equity (ROE). It is
also known as DuPont identity.

BREAKING DOWN 'DuPont Analysis' According to DuPont analysis, ROE is

affected by three things: operating efficiency, which is measured by profit margin;
asset use efficiency, which is measured by total asset turnover; and financial
leverage, which is measured by the equity multiplier?

Therefore, DuPont analysis is represented in mathematical form by the following

calculation:

ROE = Profit Margin x Asset Turnover Ratio x Equity Multiplier

104
 PARLE
ROE
0.19

ROA EQUITTY
1.05
0.18

ROS ASSET
0.005 TURNOVER
36

NET PROFIT SALES TOTAL

SALES
119.02 23775.93 ASSETS
23775.93
34106.19

SALES
23775.93 COST CURREN
FIXED
23656.91 T ASSET
ASSET
13830.99 20275.20

105
 BRITANNIA
ROE
67.24

ROA EQUITTY
24.76 2.72

ROS ASSET
0.13 TURNOVER
190.46

NET PROFIT SALES SALES TOTAL

1967.86 15618.42 15618.42 ASSETS
5905.01

SALES COST CURREN

FIXED
15618.42 13650.56 T ASSET
ASSET
(111.22)

106
 PRIYA GOLD
ROE
8.30

ROA EQUITY
(4.69) (1.76)

ROS ASSET
0.06 TURNOVER
-78.17

NET PROFIT SALES SALES TOTAL

47.76 815.30 815.30 ASSETS
801.04

SALES COST CURREN

FIXED
815.30 767.54 T ASSET
ASSET
267.19

107
 ITC
ROE
27.74

EQUITTY
ROA
22.79 1.22

ROS ASSET
0.28 TURNOVER
81.39

NET PROFIT SALES SALES TOTAL

18701.86 66043.27 66043.27 ASSETS
68272.80

SALES COST CURREN

FIXED
66043.27 47341.41 T ASSET
ASSET
59794.25 8478.55

108
CHAPTER 14
OT ANALYSIS

109
 OPPORTINITIES:

Changing Consumer Preferences:

Health and Wellness Trends: As more consumers become health-conscious, there's an opportunity to
introduce healthier biscuit options, such as those with whole grains, reduced sugar, or gluten-free
varieties.

Snacking Culture: The growing trend of snacking presents an opportunity for biscuits to position
themselves as convenient and portable snacks.

Global Expansion:

Emerging Markets: Expanding into emerging markets with rising middle-class populations
can open up new avenues for growth.

Export Opportunities: Exploring international markets and catering to global demand for
unique and premium biscuit varieties.

Innovation and Product Development:

Flavor Innovation: Developing new and unique flavors can attract consumers looking for
novel and exciting taste experiences.

Functional Ingredients: Incorporating functional ingredients, such as probiotics or

superfoods, to meet specific health and wellness demands.

E-Commerce and Direct-to-Consumer (DTC):

Online Sales: Leveraging e-commerce channels and direct-to-consumer strategies to reach

a wider audience and adapt to changing retail landscapes.

110
Sustainability Initiatives:

Environmentally Friendly Packaging: Adopting sustainable and eco-friendly packaging to appeal to

environmentally conscious consumers.

Ethical Sourcing: Emphasizing responsible sourcing practices for raw materials to enhance brand image.

Threats:

Health Concerns and Regulations:

Government Regulations: Increasing regulations related to food labeling, advertising,

and health standards could impact the formulation and marketing of biscuits.

Obesity Concerns: Growing awareness of health issues may lead consumers to reduce
consumption of traditional, high-sugar biscuits.

Competition:

Substitute Products: Increased competition from healthier snack alternatives, such as granola
bars, fruit snacks, or savory snacks.

Price Wars: Intense price competition among brands, leading to reduced profit margins.

Supply Chain Disruptions:

Raw Material Prices: Fluctuations in the prices of key ingredients, such as wheat, sugar, and
fats, can impact production costs.

Logistical Challenges: Disruptions in the supply chain due to geopolitical issues, natural
disasters, or other unforeseen events.

111
Economic Factors:

Economic Downturn: During economic recessions, consumers may cut back on

non-essential expenses, impacting discretionary spending on biscuits.

Inflation: Rising inflation can increase production costs, affecting profit margins.

Brand Reputation and Social Media:

Negative Publicity: Social media can amplify negative reviews and incidents,
impacting brand reputation quickly.

Consumer Activism: Increasing consumer awareness and activism may

lead to demands for transparency and ethical business practices.

112
 CONCLUSION
The Indian biscuits market is estimated to grow significantly by 2023, “owing to a
change in consumer taste and preferences, increasing health-conscious consumers, and
rising demand for convenience food”.

It is worth noting that the demand for healthy and clean-label products, such as gluten-free, low-calorie,
low-fat, and high-fiber biscuits, are the main factors driving the market’s growth

The biscuits industry in India has been experiencing steady growth, driven by factors such as changing
consumer lifestyles, urbanization, and increasing disposable incomes. Biscuits are a popular snack in
India, consumed by people of all age groups.

The industry is highly competitive, with both domestic and international players vying for market share.
Key players have been investing in marketing, distribution, and product development to stay ahead in
the market.

The industry may face challenges such as fluctuating raw material prices, logistical issues, and changing
consumer preferences. Economic factors, government policies, and external market conditions can also
impact the industry.

113