Bread

Group-6

Devika
Gautam Raj Dadlani
Harsh Chaudhary
Mahak
Saloni Goyal
Vernit Bindal
Indian Bread Industry
Bread Industry Analysis
Overview
High fixed costs and exit barriers intensify competition in market
Indian Bread is fragmented-Organized and Unorganized sector
Competitors source their ingredients from a variety of suppliers
User demand has a strong influence over manufacturers
Exit barriers are high- divestment of substantial assets

Buyers
Convenience stores retailers - 59.2% of total sales in 2018
Specialty retailers - 21.3% of the total sales
Hypermarkets & supermarkets exert strong bargaining power

New Entry Supplier

New entrants - a range of products with enough differentiation Raw Material - open market (a little control over prices)
Rising consumer trend surrounding nutritional issues Hedging mitigates the impact of price fluctuations
There is also a trend towards specialty and continental breads
Price Trends

• Per-capita volume sales in the bread &

bakery products market in India, 2018 (in
kilograms) - 1.75

• Revenue of the bread & bakery products

market in India, 2018 (in million U.S.
dollars) - $ 3 024.22
Market Survey
• Survey of 10 retails and convenience store and one modern retails store in Ahmedabad

• Prominent Brands

• Britannia, Aabad, Super, Modern & Amul

• On average a retailer has 2 brands while few had 3 brands

• The retailers have nearly 7-8 types of SKU i.e. Sandwich white bread (400/200g), brown
bread (400/200g), burger bun, pizza base, dabeli pav, fruity bread

• Bread is available at all convenience, retail, super and hyper stores

• There exists speciality retailers and artisan stores which sells premium bread
Market
Factors responsible for Growth Sector Percentage Share
• Increased literacy rate Organized 45
• Higher per capita income Unorganized 55
• Larger number of women going out for work to sustain family
• Higher living standards and increased tourist population

The consumption pattern in four zones

Competition Region Percentage
National Players • Britannia and Modern Industries Ltd Northern States 27%
Regional Players • Spencer’s in South India
• Kitty and Bonn in Punjab Southern States 32%
• Harvest Gold and Perfect in Delhi & NCR Western States
• Amul in Gujarat 23%
• Wibs in Maharashtra Eastern States 18 %

• According to an estimate, there are about 1 lakh SSI Units producing items worth Rs. 3000 crores annually
Formulation & Composition
Formulation Nutrition Amount per 100g % Daily Value
Ingredients Percentage Calories 265
Flour 100 Total fat 3.2 g 4%
Water 60 Cholesterol 0 mg 0%
Sugar 6 Sodium 491 mg 20%

Fat 2 Potassium 115 mg 3%

Yeast 2-4 Carbohydrate 49 g 16%

Salt 2 Protein 9g 18%

Vitamin B-6 - 5%
Supplements
Calcium - 26%
Enzyme Role
Iron - 19%
Amylases Convert starch to sugar Magnesium - 6%
Protease Reduce dough mixing time
Per cent Daily Values are based on a 2,000 calorie diet. Your daily values may
Lipoxygenase Improves shelf-life be higher or lower depending on your calorie needs.
Ingredients
Ingredient Role
• Main ingredient
Wheat Flour
• Bread structure and bite characteristics
• Transforms flour into viscoelastic dough that retains gas
Water
• Medium for all chemical reactions
• Ferments sugars and produces CO2 and ethanol
Yeast
• Gives porous and leavened bread
• Source of fermentable carbohydrate for yeast
Sugar
• Provides sweet taste
• Enhances flavours and adds taste to bread
Salt
• Strengthens the glute network in dough
• Makes the bread texture softer
Fat
• Improves freshness and shelf life
Surfactants • Antistaling agent
Calcium propionate • Prevents mould growth
• Ascorbic acid
Oxidising agents
• Enhances dough strength, loaf volume and softness
Bread Manufacturing Process

Pre-Mixing

Mixing Dividing Interproving Moulding

Cooling Depanning Baking Oven Final Proving

Slicing &
Packaging
Technological Requirements
Land requirement : 5000 Sq Mt | Build Up Area : 1250 Sq Mt | Utilities: Water(40000KL), Electricity(800HP) & Fuel(7.5 L/Hr)

Mixer Divider Conveyor Molder Prover

Oven Slicer Packaging Machine Labelling Machine Metal Detector

 Types of Bread & Quality Parameters
Types of Bread Characteristics of Good Bread
Bread Description External Internal
White bread typically refers to breads
White Bread Volume Colour
made from wheat flour

Brown Bread typically refers to Symmetry of Shape Structure

breads made with significant
Brown Bread Bloom Sheen, texture
amounts of whole grain flour usually
wheat
Crust Colour Flavour and aroma
It contains the whole of the wheat
Whole meal bread i.e. endosperm, bran and germ. It is Evenness of bake Crumb clarity and elasticity
also referred to as whole grain bread
Oven Break Moistness
This type of bread is made from
Rye bread various proportion of flour from rye
grain Cleanliness Cleanliness
Types of dough making process
• Developed for use of weak gluten flour
Coreywood Process • Main commonly used industrial process
• Used for making white sandwich type of bread
Straight dough process • Single mix process
• Process has high intermediate resting periods which reduced industrial application
Sourdough Process • Traditional bread making process
• Now only used to make artesian breads

Infrastructure

Cool and dry place

25o C and 60% RH Deep Freezer RO filtration
Flour, Sugar, Salt, Below -21o C To reduce TDS and hardness
Additives Fresh compressed yeast Filtered water
Price & Location
• Prices for all brands available commercially is similar with difference of only 1-2 rupees between similar SKUs
• Bread makers association exists for general bread available where price for bread is decided
• Nil GST on bread currently (branded/unbranded) in India

Stakeholder Margins
Bread SKU Price Producer 25%
200 g Rs 12 Distributor 5-6%
Sandwich White bread 400 g Rs 23 Retailer 5-6%
800 g Rs 44
200g Rs 16 • Location needs to be in vicinity of the service area because
Brown Bread
400g Rs 30 of time constraints of logistics (Timely and early morning
Multigrain Bread 200 g Rs 18 delivery)
400 g Rs 35 • Also the raw materials are bulky but aren’t perishable
similar to final products
Fruity Bread 200 g Rs 14 • Also this food product doesn’t have very particular plant
environment requirement making it a easy establishment
near city or service area
Distribution Channel

Plant Delivery Van Distributor Consumer

Plant Delivery Van Distributor Retailer Consumer

Reverse Logistics
➢ Similar short shelf life products like eggs and milk have no replacement and reverse logistics
➢ The reason for this is 20-25% profit margins for manufacturers
➢ Also because the margins are very low
➢ The same trucks have no other work but to delivery bread and come back empty handed
Spoilage Packaging
Material Configuration

LDPE

Holes inside bread

Wax paper
Volume of bread

Molds in bread
Issues and Concerns of the Industry

Excise Duty on Bread Dough

Price Sensitivity of the Market

Increase in prices of Maida and other raw

materials like oil, sugar, etc

Stringent Food Regulatory Measures

Lack of Technology & Upgradation in

Manufacturing & Packaging

Increase in Competition

Changing Customer Choices

Government Regulations

Regulate and monitor Excise duty on bread is In order to facilitate

the manufacture, zero. formulation of a proper
processing, distribution, The Revenue and efficient Food Safety
sale and import of food. Department proposes to Program towards
Set the limits of use of levy excise duty on the implementation of GMP,
food additives, pesticide `dough' used for the GHP and HACCP in the
residue, heavy metals, manufacture of breads. food industry, either
etc. VAT on bread is NIL in under law or voluntary.
most of the States.
 Controversy
Centre for Science and Environment’s study tested some of the bread sold in
Delhi and found residues of Potassium Bromate and Iodate in commonly
consumed varieties

The use of Potassium Bromate – classified as a category 2B carcinogen (possibly

carcinogenic to humans) – is banned in most countries
The PML tested 38 commonly available branded varieties of pre-packaged breads
of popular fast food outlets from Delhi

Eighty-four per cent (32/38) samples were found with Potassium Bromate/Iodate
in the range of 1.15-22.54 parts per million (ppm)

High levels of Potassium Bromate/Iodate were found in sandwich bread, pav, bun
and white bread

Products of Perfect Bread, Harvest Gold and Britannia were those with higher
levels
Thank You!