Namkeen/Farsaan Sector

Analysis

PGDIM 21, Roll N0 1402009

Submitted to :
Prof. Ashok K. Pundir
NITIE, Mumbai

Namkeen/Farsaan sector analysis

Certificate
This is to certify that Akshay Patidar student of PGDIM, Batch No 21 has successfully
completed the project titled Namkeen/Farsaan Sector Analysis, under guidance of
Prof. Ashok K. Pundir, NITIE, Mumbai.
Based on the professional work done by him, this report is being submitted for the partial
fulfillment of Post-Graduation Diploma in Industrial Management (PGDIM) at NITIE,
Mumbai.
We wish him all the best in her future life.

Date:
Project Guide:

Prof. Ashok K. Pundir

Dean, Student Affairs

Namkeen/Farsaan sector analysis

ACKNOWLEDGEMENTS
First and foremost, I wish to thank NITIE for giving me this opportunity to research on this subject. I
thank Prof. Ashok K. Pundir for his guidance in developing clarity and maintaining focus about the topic
to shape this study. I thank him for his constant motivation, sharing his experience and providing all
levels of support.
The data collection and field work required for the study wouldnt have been possible without help and
co-operation from my colleagues. The government data through various websites helped tremendously
to understand this sector.
The subject was new for me to understand the complexities involved, gather information and assimilate
the data. It is important to acknowledge the support provided by my friend Rohan Agar, who is a
Namkeen businessman, many a times who helped me to understand even the basic terms used in this
field.
I would like to acknowledge all the respondents, my colleagues, and friends who directly or indirectly
helped in making this study possible and gave me an opportunity to explore the real world complexities
and finding key insights about the subject.

EXECUTIVE SUMMARY

Namkeen/Farsaan sector analysis

Need and Significance of the Project

The average annual per capita consumption of commercial snacks is just 500g and that
byurbanites is 10 times more than that by rural consumers. This may be since
most rural houses make these at home or buy from the local vendors that come
in the unorganized market. While the domestic ethnic snack foods industry is
hugely diverse, has easy access to indigenous technology and involves low entry
barriers, standardization of product quality and backward links to testing facilities are at
woefully low levels. Naturally, opportunity is screaming from the rooftops.
K.P. Sareen, Executive Secretary, All India Food Processors' Association, calls it
the third phase of the evolution of the salted snacks market. The first two, he
says, dealt with development and nurturing of tastes respectively.
This sector has seen a lot of development in recent. With Government announces SEZ for
this segment and demand in Local and International market, this sector has a huge
potential.

Namkeen/Farsaan sector analysis

Table of Contents
Certificate of completion
Acknowledgement

1. Background
1.1. Need and Significance of the Project
...............................................2
2. Problem Definition
2.1.
Objective....................................................................................
........ 3
2.2. Methodology
.................................................................................. 3
3. Academic Scope
3.1. Management techniques likely to be
used ........................................3
4. Work Plan
.........................................................................................
...4

Namkeen/Farsaan sector analysis

INTRODUCTION
2.1 Objective

To Understand the Namkeen Sector from a holistic view.

Identify the market size of the industry.
Marketing Mix
Various Distribution Strategy used by the industry.
Latest technologies available for production.
Cost of material, equipment and labor and other inputs of production
Government Regulations and Accreditations in the industry
Identify major players of the industry. This study also aims to identify regional
players.
Conclusion and recommendations

Namkeen/Farsan is very popular fast food item used in day-to-day life in almost all
houses in the country and also in abroad. Because of the taste and aroma of the
product, the product has secured a very good market demand. The product is
prepared in different tastes in accordance with the taste of the people of that
region. The product is packed in polythene pouches by using simple technology.
Substantial income through project.
Namkeens as well as sweets are gaining eminence in modern times and their
demand is also increasing considerably to cater to the taste of people. Among the
namkeens the prominent items are dal moth ,bhujia,etc. These are becoming most
versatile as for their relish and palatability is concern. Now a days these items are
well known not in India but world wide. These are mainly consumed during
breakfast period & are very much during social & cultural periods. These are used
as tasty & flavored food as well as in medicinal way, however, a little it may be,
(according to ayurveda) because of their carminative stimulative digestive
properties. India produces almost all these types of salty processed food products
of grains all these types of salty processed food products of grains like Grams,
Pulses etc. It aid in digestion and adsorption of food possesses anthelmintic and
antiseptic properties. The main raw materials for these products are Gram, pluses

Namkeen/Farsaan sector analysis

& spices. The various food additives & colours may be used to provide
sophistications in the products. the raw material are frequency available in India.
Namkeen which are salty food products get a broad market in foreign countries.
These products are very much popular not only in India but also overseas
countries. Hence, there are a lot of scope and market of these products & there
fore, it will provide a very much profitable business.
Cost Estimation
Plant Capacity
Rs. 1.40 Cr. Plant & Machinery
W.C. for 1 Months
Total Capital Investment
Rate of Return
Break Even Point

3 Ton./Day Land & Building (Area 450 sq.mt.)

Rs. 48 Lacs
Rs. 51 Lacs
Rs. 2.64 Cr.
87%
28% .

As the ethnic foods category is growing, cash-rich companies make a beeline for a
shareof the salty snacks market. Around 1,000 snack items are sold in India
spanning varioust a s t e s , f o r m s , t e x t u r e s , a r o m a s , b a s e s , s i z e s ,
s h a p e s a n d fi l l i n g s . S o m e 3 0 0 t y p e s o f s a v o r i e s s e l l h e r e a n d
t h e o v e r a l l s n a c k p ro d u c t m a r ke t ( i n c l u s i v e o f s w e e t m e a t s )
i s estimated at Rs.25,000 crore.The branded salty snacks market (size: 1200
Crores) is 40% of the total market (size: 3000 Crores), it's bustling
nevertheless. The branded segment is increasing at the rate of 25% per annum
whereas the entire market is increasing at the rate of 7%. In the past 2-3years the
unbranded sector has witnessed a decline of 5% per annum.Indians seem to be
snacking on ethnic foods with a vengeance. This is good news for thecorporate
sector, given that the past few years have seen a perceptible shift
towards the branded sector at the cost of the unbranded segment

Namkeen/Farsaan sector analysis

Existing Small or Medium Scale Industrialists facing

competition from large houses
Government Support.
Khadi and Village Industries Commission has initiated a project for
NAMKEEN/FARSAN Manufacturing Scheme under Gramoyog Rozgar Yojna. The
detailed financial description of the cost incurred, breakeven and other details are
mention in EXIBIT 1.

Namkeen/Farsaan sector analysis

REVIEW Of Literature
METHODOLOGY
a. Approach
The project is divided into five phase to completely execute the project. The phases
along with their deliverables are listed below:

I) Project Initiation - The project is defined and established. The Objective,

preliminary scope is defined, purpose and deliverables to be produced, stakeholders to
be identified.

Namkeen/Farsaan sector analysis

II) Planning Phase - This phase covers the planning of the project with respect to

timelines, milestones, start and end dates with resources responsible for activities.
Below are the deliverables of planning phase.
1) Project Plan
2) Identifying Key Deliverables
3) Estimation of the project
4) Risk & Mitigation Plan

III)
Execution The actual work is performed and deliverables are
produced considering the constraints such as time, cost, and performance
which will drive and limit the project.
IV) Monitoring and Control - Identify adherence to the plan, identifies
discrepancies, handles change management, and provide feedback to
update and progressively elaborate the plan. Also find out the future scope of
the project.
V) Closeout - Developing lessons learned for future improvement, and closing
out the administrative elements of the project from an organizational
perspective. Preparing and Submission of final report to the project guide.
b. Market Research Tools to be used
Primary and Secondary Research
Qualitative and Quantitative Analysis
Interviews

Academic Scope
3.1 Management techniques likely to be used

Scenario Analysis
Business Statistics and Data Analysis
Gap Analysis
Various Market Research tools
Fish Bone Diagram
Various Distribution Models
Go to Market Strategy
Gantt Charts
Market Sizing
Segmentation, Targeting and Positioning
Benefit Management

Namkeen/Farsaan sector analysis

Work Flow
The flow of the project is suggested as follows:

Work Plan TimeLine

Activity

( starting 1st Feb)

Week 1

Week 2

Week 3
Week 4/Week 5
Week 6
Week 7

Discussion with the Guide regarding project objectives

and scope
Planning Phase Initiation - This phase covers the
planning of the project with respect to timelines,
milestones, start and end dates with resources
responsible for activities. Developing the Project plan is
the main deliverable in this week
Execution Phase Start implementing the objective of
the project. Main focus on Objective 1 and 2.

Market research using various tools. Talk with various

stakeholders.

Competitors Assessment and their current status

Compile and examine the results obtained.

Refining final Report and Final presentation

Namkeen/Farsaan sector analysis

SWOT ANALYSIS
Strengths
Good product mix with High nutritional value
Aromatic and delicious
Different sizes( 200g, 400g, 1kg)
Colorful packaging
Made from high quality ingredients and good quality oil
Fresh, Less Calories, Rich in fibrous content
Weakness
Lack of goodwill among middleman
Marginally higher price than local players

Namkeen/Farsaan sector analysis

Lack of promotional activities

Less profit margin
Weak Distrubution System Lack of commitment and honesty,
large volume of replacement by middlemen
Opportunities
Innovation Baked items, Turmeric: Blood purifier, improves liver
function, Ginger ( Adrak): Improve digestion, Lowers cholesterol,
controls blood
Silver foil packaging like haldiram ( increase shelf life)
Home delivery
Schemes for retailers
Sell in big outlets
Children or youth product
Supporting government schemes
Technology upgradation
Threat
Competitors
Fluctuating raw materials prices

Namkeen/Farsaan sector analysis

EXIBIT 1
Namkeen 1 ( report)