I N D U S T R

Y
Presented By
Shradha, Anchal ,Priyam,

INDIAN BAKERY INDUSTRY

The Indian bakery industry is the largest among the processed food industries. The current estimated market is about Rs 3,295 crore and is expected to cross Rs 4,308 crore by 2012.

At present, the bread & biscuit industry accounts for 82% of the total bakery products in the country.
At present, the annual production of bakery products which include bread, biscuits, pastries, cakes, buns and rusk, most of which are in the unorganised sector, is estimated to be in excess of 3 million tonnes. The production of bread and biscuits in the country both in the organised and unorganised sectors is estimated to be around 2.6 million tonnes.
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RESTRICTIONS AND REGULATIONS

The import and export of food ingredients in India is governed by Directorate General of Foreign Trade (DGFT) under Ministry of Commerce. The taxes and duties are imposed by Central Board of Excise and Customs, under Ministry of Finance. According to Central Excise and Customs Law, each food ingredient is classified (for duties / taxes purpose) under different chapters according to their source, processing and nature. The other body keeping an eye on the quality of incoming ingredients is Food Safety and Standards Authority of India (FSSAI), under Ministry of Health and Family Welfare

BAKERY PRODUCTS
The market for bakery industry is valued at Rs. 69 billion. The two major bakery products, i.e. breads and biscuits hold for about 82 % of the market share. Product coverage Bread Biscuits Pastries Cakes Buns Confectionary products

WHY BAKERY BUSINESS?

Changing trend. New challenges, like healthy nutritious, tasty and fresh products. Diversified products like, 1. High protein products. 2. Vitaminised & Mineralized product. 3. Anti diabetic products. 4. High fiber content product. 5. Low salt product. 6. Low fat product. Export of bakery product
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PROBLEMS AND CHALLENGES

The major problem the bakery business face is the labor problem, quality issues Sometimes illiterate customers arrive that is the challenge to sell a bakery product Pricing problems Political issues such as taxing system

WHAT WERE THE PROBLEMS YOU FACED WHILE COMMENCING THIS BUSINESS?

70% 60% 50% 40% 30% 20% 10% 0% labour problem qualty issues political problems

WHAT ARE YOUR MARKETING TACTICS YOU INVOLVE TO EXPAND YOUR BUSINESS?

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

outdorr advertising

event sponser
q9

special events

DID YOU GET ANY FINANCIAL AID FROM ANY ORGANIZATION?

100% 80% 60%

40%
20% 0% yes no

ARE YOU A LABOR INTENSIVE ORGANIZATION OR A TECHNOLOGY INTENSIVE ORGANIZATION?

90 80 70 60 50 40 30 20 10 0 Good sunder Bakery Bakery labour Tecnology 60 40 60 40

Sweet Cakes Burma Lusciou & Biscuit s Bakes 80 40 50 20 60 50

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DO YOU MAINTAIN INVENTORY FOR A LONGER PERIOD OF TIME?

100% 80% 60% 40% 20% 0% yes no

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WHAT ARE THE CHALLENGES YOU FACED IN RUNNING THIS BUSINESS?

60% 50% 40%

30%
20% 10% 0%

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WHAT ARE THE OPPORTUNITIES YOU FEEL ARE THERE IN THIS INDUSTRY AND ARE THEY WORTHWHILE FOR YOU?

80% 80% 70%

60%
50% 40% 30% 20% 10% 0% 30%

50%

mass coverage diversification expansion

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WHAT ARE THE SOURCES OF PROCURING ORDERS FROM YOUR PRESENT AND POTENTIAL CUSTOMERS?

90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

ONLINE BOOKING

DIRECTLY IN STORE

PHONE BOOKING

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SIDBI

This is a facility specially designed under the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) scheme of SIDBI and Ministry of Small and Medium Enterprises. Facilities offered

Cash Credit for meeting working capital finance requirement Term Loan for purchase of commercial assets & business expansion needs

STATE BANK OF TRAVANCORE

loan amount-25000 to 10lakhs Disposing limit- for 25000 in 2 weeks and for 5 lakhs and above in 4 weeks No collateral till 5 lakhs but it is required if taken above 5 lakhs upto 25 lakhs Collateral security- no collateral security till 25000 Guarantee-one guarantor is required The Bank has registered as Member Lending Institution with Credit Guarantee Fund Trust Scheme for Small Industries (CGTSI) launched by SIDBI It provides guarantee cover of 75 % of the amount of default, in respect of facilities upto Rs 10 lakhs Interest rates charged- 10% to 15% Margin- above 25000 (20% of term loan)

CONDITIONS BEFORE SANCTIONING THE LOAN BY THE BANK

Seriousness for the business Creditability of the business plan Various condition of MSME under section 25 should be fulfilled Should have a past experience in the same category or have a business background of any other Fresher-previous bank record ,legal record Location of the desired bakery shop Estimation of the revenue that could be generated at the desired location

DOCUMENTS REQUIRED

Photograph of borrower / guarantor

Income tax return for last 2 yrs

Audited / Unaudited trading , profit & loss , balance sheet for last 2 yrs

Projected financial statement for ensuring year

Registration certificate under shop/ establishment act, trade tax act

Bank statement of last 6 months

Proof of business address/residential address/continuity in business

REQUIREMENTS TO START A BUSINESS

LAND approx 5000 sq ft for LABOUR RAW MATERIAL INFRASTRUCTURE PROPER LOCATION As per SIDBI , if one outlet of bakery has to be opened in campus then it would require a capital of Rs. 25 30 lacks approx

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PROSPECTS

Increasing dependence on bakery products.

Use of sophisticated and modern machineries which increases bakery efficiency. High quality packaging material increases shelf life of product.

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CONCLUSION

Due to changing consumption pattern there is lot of scope for bakery industry. Due to modernization , westernization and industrialization demand for bakery has increased. Good opportunity to emerge as a national brand.

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