OVER VIEW OF THE INDIAN BUSCUIT INDUSTRY Biscuit industry contribute Rs 8,000 crore to the FMCG industry and

provide a vast opportunity for growth, as the per capita consumption of biscuits is less than 2.1 kg i n o u r c o u n t r y. I n d i a I t i s c l a s s i f i e d u n d e r t w o s e c t o r s : o r g a n i z e d a n d u n o r g a n i z e d . 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 .T h e I n d u s t r y i s n o w f a c i n g p r o b l e m f r o m i n c r e a s e o f r a w m a t e r i a l p r i c e . W i t h Government VAT up to 12.5% has added to their woes .Biscuit consumption per capita in India has grown to 2.1kg per capita in comparison to 10kg per capita consumption in USA, UK and Europe .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 readymade 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 products for every age group. Biscuits are easy to carry, tasty to eat, cholesterol free and reasonable at cost. S t a t e s t h a t h a v e the larger intake of biscuits are Maharashtra, West Bengal, AndhraP r a d e s h , K a r n a t a k a , a n d U t t a r P r a d e s h . M a h a r a s h t r a a n d W e s t B e n g a l , t h e m o s t 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. T h e t o t a l p r o d u c t i o n o f b a k e r y p r o d u c t s h a v e r i s e n f r o m 5 . 1 9 l a k h t o n e s i n 1 9 7 5 t o 18.95 lakh tones 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 nonfactory units. The production capacity of wafer biscuits is 60 MT and the cost is Rs.56,78,400 with amotive 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 broke 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 annumin 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. Two Sectors of Biscuit Industry In terms of volume biscuit production by the organized segment is estimated at1.30 million tones. In the organized sector, the industry is dominated by Britannia and Parle, which account for 70 per cent of the industry's volumes. The two major organized players are Britannia and Parle. Britannias market share stands at Rs 27 billion. Parle derives a large portion of its revenues from low-priced biscuits. Parle-G and Britannia derive a fairly large share of their revenues from the medium- and premium varieties. Inf a c t , B r i t a n n i a ' s m a r k e t s h a r e i n t h e m e d i u m a n d p r e m i u m v a r i e t i e s i s s i g n i f i c a n t l y higher.Other organized players include domestic players like Brakemans, Champion, Kwality,Priya and MNCs like SmithKline Consumer, Kelloggs , Sara, Heinz, Ecclesia (Nestle)and United Biscuits. The unorganized sector consists of small bakery units, cottage and household type manufacturing their goods without much packaging and distributing their goods in the surrounding areas. Lower overheads due to limited local area , family management,focused product lines and less expenditure on marketing help the unorganized sector togrow.

The organized biscuit manufacturing industrys annual production were around 1.1million tons in 2003-04, 1.25 million tons in 2004-05, 1.4 million tons in 200506, 1.6million tons in 2006-07 and 1.7 tons in 2007-08.

HISTORY OF BUSCUIT INDUSTRY Biscuits are a very significant part of the food industry in most countries of the world. A biscuit is a small baked product; the exact meaning varies markedly in different parts of the world. The origin of the word "biscuit" is from Latin via Middle French and means "cooked twice" (similar to the German Zwieback). Some of the original biscuits were British naval hard tack. That was passed down to American culture, and hard tack (biscuits) was made through the 19th century. B i s c u i t c a n f l o u r i s h i n a n y e n v i r o n m e n t w h e r e t h e r e i s a b a s e p o p u l a t i o n , i n t h e immediate vicinity of the plant; a country with large population is well suited for a biscuit plant. Biscuit is most suited for local production. This factor alone has made India a big biscuit center. Biscuit Industry has flourished in India enormously over the years and is still growing phenomenally. This growth has funneled a growth of all facets of biscuit making in India. While the modern India is considered a centre for software development, many do not realize that one industry that has developed similar capabilities is Biscuit. Today India can boast of being Most cost effective and reliable biscuit machinery making center. Mos t t a l e n t e d s e n i o r m a n a g e m e n t a n d t e c h n i c a l m a n p o w e r p o o l f o r b i s c u i t making. Most number of biscuit production manpower and operating t e c h n i c i a n s manpower Most reliable center for outsourcing manufacture of biscuits. Most cost effective center for food testing laboratories.

Most cost effective and talented center for product development, research and formulation development.

FEDERATION OF BISCUIT MANUFACTIRE OF INDIA FBMI, Established in 1950, from gathering of CEOs of small, medium and largeB i s c u i t m a n u f a c t u r i n g o r g a n i z a t i o n s i n t h e c o u n t r y s c a p i t a l c i t y, t h e Federation of Biscuit Manufacturers of India, popularl y known as FBMI h a s c o m e t o s t a y a s t h e premier forum of the organized segment the biscuit industry in India, by virtue of its effective servicing and result oriented activities, with the prime objective of protecting and promoting the interests and development of the Biscuit industry. The FBMI represents the organized biscuit industry consisting of small scale, medium and large biscuit manufacturers located in all zones and all States of the country. As theapex body of the biscuit industry, the Federation strives to serve its members in particular and the biscuit industry in general. FBMI, Established in 1950, from gathering of CEOs of small, medium and largeB i s c u i t m a n u f a c t u r i n g o r g a n i z a t i o n s i n t h e c o u n t r y s c a p i t a l c i t y, t h e Federation of Biscuit Manufacturers of India, popularl y known as FBMI h a s c o m e t o s t a y a s t h e premier forum of the organized segment the biscuit industry in India, by virtue of itseffective servicing and result oriented activities, with the prime objective of protectingand promoting the interests and development of the Biscuit industry.The FBMI represents the organized biscuit industry consisting of small scale, mediumand large biscuit manufacturers located in all zones and all States of the country. As theapex body of the biscuit industry, the Federation strives to serve its members in particular and the biscuit industry in general. OBJECTS To promote, protect and safeguard the interest of the Biscuit manufacturin g industry, particularly in the small and medium sector T o p r o m o t e a n d d e v e l o p a s ys t e m a t i c a n d h y g i e n i c B i s c u i t m a n u f a c t u r i n g I ndustry. To promote research and product development for the biscuit manufacturi ngindustry and the establishment of any research organization for the pur p o s e , particularly for the benefit of SMEs manufacturing biscuits

To assist the small and medium biscuit manufactures in the purchase of flour,i n p u t s a n d o t h e r c o m m o d i t i e s a n d t h e p r o v i s i o n f o r t e c h n i c a l a d v i c e f o r improving manufacturing techniques and marketing method To create appropriate bodies to advise Government of various aspects connectedwith the development of the biscuit manufacturing industry. To obtain from anys u c h G o v e r n m e n t o r a u t h o r i t y r i g h t s , c o n c e s s i o n s a n d p r i v i l e g e s w h i c h t h e Association may think it desirable to obtain and to carry out, exercise and complywith any such arrangements, rights, privileges and concessions.