Britannia Biscuit Research Paper Essay

Britannia -the cooky leader with a hi taradiddle-has withstood the tests of time. Part of the reason for its succeeder has been its ability to resonate with the changes in consumer needs-needs that puddle varied significantly crossways its 100+ course epoch. With consumer major(ip)(ip)ity rule reaching reinvigorated levels, the integrity common thread to emerge in recent times has been the swop in lifestyles and a corresponding aw areness of health. People are increasingly neat conscious of dietary care and its correlation to wellness and matching the in the buff pace to their lives with improved nutritional and dietary habits. This new awareness has seen consumers seeking foods that complement their lifestyles while whirling convenience, variety and economy, over and above health and nutrition.Britannia maxim the writing on the wall. Its Swasth Khao Tan Man Jagao (Eat Healthy, Think Better) re-position directly addressed this new trend by promising the new generation a healthy and nutritious alternative that was as well as delightful and tasty.Thus, the new logo was born, encapsulating the core essence of Britannia healthy, nutritious, and optimistic and combining it with a delightful product range to offer variety and choice to consumers.INTRODUCTION TO THE INDUSTRYBISCUIT INDUSTRY IN INDIA AN OVERVIEW cooky industry in India in the organized sector produces around 60% of the total production, the balance 40% being contributed by the unorganized bakeries. The industry populates of two large scale manufacturers, around 50 medium scale brands and blue scale units ranging up to 2500 units in the country, as at 2000-01. The unorganized sector is estimated to have approximately 30,000 gnomish & tiny bakeries across the country. The annual turnover of the organized sector of the cooky manufacturers (as at 2001-02) is Rs. 4,350 crores. In footing of volume biscuit production by the organized segment in 2001-02 is estimated at 1.30 million to nnes. The major Brands of biscuits are Britannia, Parle Bakeman, Priya Gold,Elite,Cremica, Dukes, Anupam, Horlicks, Craze, Nez ace, besides various regional/State brands. cookie industry which was till then uncommunicative in the SSI Sector, was unreserved in 1997-98, in accordance with the Govt. constitution, based on the recommendations of the Abid Hussain Committee. The annual production of biscuit in the organized sector, continues to be predominantly in the elflike and medium sale sector to begin with and after de-reservation. The annual production was around 7.4 Lakh tonnes in 1997-98 in the next five socio-economic classs, biscuit production witnessed an annual harvest-home of 10% to 12%, up to 1999-00. The annual Growth showed a gloam of 3.5% in 2000-01, mainly due to 100% hike in Central fall Duty (from 9% to 16%). Production in the year 2001-02 increased really marginally by 2.75% where in 2002-03 the growth is around 3%. The Union Budget for 2003-04 granted 5 0% reduction in the rate of Excise Duty on Biscuit i.e. from 16% to 8%. The federations estimate for the current year indicates a growth of approximately 8% to 9%. However the average utilization of installed capacity by biscuit manufacturers in the country has been a dismal 60% over the last decade up to 2001-02. Though dereservation resulted in a few MNCs, i.e. Sara Lee, Kellogs SmithKline Beecham, Heinz etceteraentering the biscuit industry in India, most of them, with the riddance of SmithKline Beecham (Horlicks Biscuits), have ceased production in the country. On the other hand, import of biscuits, especially in the high value segment has started from 1998-99, but however, the quantum of imports has not so far increased alarmingly and has remained at around 3.75% of the usance of biscuits in the country in the year 2001-02.However, recent imports from china industries cheaper verities of biscuit, needs to be examined with cautions, especially in the context of the price as the low margin based domestic industry, which is operating at 60 % of the total installed capital. Exports of biscuits from India have been to the extent of 5.5% of the total production. Exports are expected to grow only in the year 2003-04 and beyond. Biscuit is a hygienically packaged nutritious snack food available at very competitive prices, volumes and different tastes. According to the NCAER Study, biscuit is 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. 750.00. Biscuit can he broadly categorized into the following segments (Based on productions of 2000-01)Glucose 44%Marie 13%Cream 10%Crackers 13%Milk 12%Others 8%. . FBMI ( Federation of Biscuit Manufacturers of India ) is an association of all the biscuit manufacturers of India. Major players entangle Britannia, Parle, ITC, Priyagold, Windsor etc. In recognition of industrys obligations towards the community, being a part of it, biscuit manufacturers add biscuits to the social welfare agencies in all States for the benefit of school children, senior citizens and other needy partitions of the society. FBMI ( Federation of Biscuit Manufacturers of India ) Members have always responded positively to our appeal as also by the Government, to rush truck loads of biscuits to the people affected by earthquakes, floods, famine etc. These members have also participated in supplying biscuits to the people of war ravaged Afghanistan and presently to the Iraqi people, under the aegis of the UN. As regards the consumption pattern is concerned. surveys and estimates by industry from time to time indicate the average consumption scenario in the four Zones have been much or less close to each other, as below1. Yankee States 28%2. Southern States 24%3. Western States 25%4. Eastern States 23% pic Though India is considered as the ternion largest producer of Biscuits after USA and China, the per capit a consumption of biscuits in our country is only 2.1 Kg., compared to more than 10 kg in the USA, UK and West European countries and above 4.25 kg in south cast Asian countries, Le. Singapore, Hong Kong, Thailand, Indonesia etc. China has a per capita consumption of 1.90 kg, while in the case of Japan it is estimated at 7.5 kg. In interpret of the meager per capita consumption even as penetration of biscuits manufactured by the organised sector, into rural areas in India, has been very good during the last 10 years, as also in the metro and other cities, small towns etc. However, in spite of this, the industry has not been able to utilize about half of their installed capacities. Biscuit is a comparatively low margin food product in the PMCG (Packaged Mass Consumption ripe(p)s) sector. The commodity is also price sensitive, as a consequence of which, even when the Excise Duty was doubled on biscuits in 2000-01 biscuit manufacturers, including the major brands, were not able hike MRPs to the extend of the steep increase in the Duty. Taxation, both Central Excise Duty as also State Sales Tax, other unlike levies i.e. turnover tax, local area tax, mandi taxes, purchase tax, Octroi etc., has been a major deterrent in the growth of the biscuit industry. The CII Study Report has set Biscuit as one of the products that should treated as Merit Good for the purpose of liberal tax policy both by the Centre and States. Besides lack of applied science upgradation in manufacturing, packaging etc has also been a factor affecting our industry, along with inadequate financial attribute and support particularly for the medium and small scale biscuit units. On the other hand, the Government of India has identified food processing industries as a priority area to be encouraged for growth and breeding and created the Ministry of Food bear on Industries (which was till then a Dept in the Ministry of Agriculture), headed by an Ministry of State with Independent charge. Biscuit manufacturing as well as other bakery products like Bread etc are agro based industries, with the major inputs wheat flour/atta sugar, milk vanaspati/vegetable oil etc all being agriculture produces. Industries much(prenominal) as Biscuit are also languishing as they are not able to achieve their potentials for higher production, in the absence of the concrete food Processing Industry Policy. FBMI in close coordination with other organizations and apex Chambers, initiated to preach the Govt of India to formulate a comprehensive Policy Document, for smooth growth and harmonious development of the industry. The Food Processing Industry Policy, which has been evolved as a result of various workshops, deliberations and representations by a large cross section of food processing industries, is yet to be finalized. It is hoped that the Ministry of Food Processing Industries, GOI would initiate action for implementation of the Policy expeditiously. According to the production f igures of members available upto the calendar year 2003, the total production was 625000 tonnes as against 475000 tonnes in the anterior year. The production of biscuit for the last 11 years is as under 1993 167750 1994 1805261995 202567 1996 2223711997 362000 1998 4000001999 425000 2000 4500002001 465000 2002 4750002003 625000Note the production of members of FBMI consist of 50% (approx.) of the total production of biscuit in the organized sector.INTRODUCTION TO THE COMPANYHISTORYThe story of one of Indias favourite brands reads almost like a fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rs. 295. The company we all know as Britannia today.The beginnings might have been humble-the stargazes were anything but. By 1910, with the advent of electricity, Britannia fit out its operations, and in 1921, it became the first company east of the Suez Canal to use im ported gas ovens. Britannias tune was flourishing. But, more importantly, Britannia was acquiring a reputation for quality and value. As a result, during the tragic origination war II, the Government reposed its trust in Britannia by contracting it to supply large quantities of service biscuits to the armed forces.As time moved on, the biscuit market continued to grow and Britannia grew along with it. In 1975, the Britannia Biscuit guild took over the distribution of biscuits from Parrys who till now distributed Britannia biscuits in India. In the subsequent unexclusive issue of 1978, Indian shareholding crossed 60%, firmly establishing the Indianness of the firm. The following year, Britannia Biscuit Company was re-christened Britannia Industries Limited (BIL). intravenous feeding years later in 1983, it crossed the Rs. 100 crores revenue mark.On the operations front, the company was making equally dynamic strides. In 1992, it celebrated its Platinum Jubilee. In 1997, the com pany unveiled its new corporal identity Eat Healthy, Think Better and do its first foray into the dairy products market. In 1999, the Britannia Khao, World Cup Jao promotion further fortified the affinity consumers had with Brand Britannia.Britannia strode into the 21st Century as one of Indias biggest brands and the pre-eminent food brand of the country. It was equally recognised for its innovative approach to products and marketing the Lagaan Match was voted Indias most prospering promotional activity of the year 2001 while the delicious Britannia 50-50 Maska-Chaska became Indias most successful product launch. In 2002, Britannias New Business Division formed a joint gage with Fonterra, the worlds second largest Dairy Company, and Britannia New Zealand Foods Pvt. Ltd. was born. In recognition of its vision and accelerating graph, Forbes Global rated Britannia adept amongst the Top 200 Small Companies of the World, and The Economic Times pegged Britannia Indias 2nd Most swe ar Brand.Today, more than a century after those tentative first steps, Britannias fairy tale is not only going strong but blazing new standards, and that miniscule initialInvestment has freehanded by leaps and bounds to crores of rupees in wealth for Britannias shareholders. The companys offerings are spread across the spectrum with products ranging from the healthy and economical Tiger biscuits to the more lifestyle-oriented Milkman Cheese. Having succeeded in garnering the trust of almost one-third of Indias one billion populations and a strong management at the helm means Britannia will continue to dream big on its path of innovation and quality. And millions of consumers will savour the results, happily ever after.HISTORY OF BISCUITSsugariness or salty. Soft or crunchy. Simple or exotic. Everybody loves munching on biscuits, but do they know how biscuits began?The story of biscuits can be traced back to a recipe created by the Roman chef Apicius, in which a heavy paste of fin e wheat flour was boiled and spread out on a plate. When it had dry and warmened it was cut up and then fried until crisp, then served with honey and pepper.The word Biscuit is derived from the Latin words Bis (meaning twice) and Coctus (meaning cooked or scorched). The word Biscotti is also the generic term for cookies in Italian. Back then, biscuits were unleavened, hard and thin wafers which, because of their low water content, were ideal food to store.As people started to explore the globe, biscuits became the ideal change of location food since they stayed fresh for long periods. The seafaring age, thus, witnessed the boom of biscuits when these were sealed in airtight containers to last for months at a time. Hard track biscuits (earliest version of the biscotti and present-day crackers) were part of the staple diet of English and the Statesn sailors for many centuries. In fact, the countries which led this seafaring charge, such as those in Western Europe, are the ones whe re biscuits are most popular even today. Biscotti is said to have been a favorite of Christopher Columbus who discovered AmericaMaking good biscuits is quite an art, and history bears testimony to that. During the 17th and 18th Centuries in Europe, baking was a carefully controlled profession, managed through a series of guilds or professional associations. To become a baker, one had to drop years of apprenticeship working through the ranks of apprentice, journeyman, and finally master baker. Not only this, the amount and quality of biscuits baked were also carefully monitored.The English, Scotch and Dutch immigrants originally brought the first cookies to the United States and they were called teacakes. They were often flavoured with nothing more than the finest butter, sometimes with the addition of a few drops of rose water. Cookies in America were also called by such names as jumbles, plunkets and cry babies.As technology improved during the Industrial Revolution in the ninet eenth century, the price of sugar and flour dropped. Chemical leavening agents, such as baking soda, became available and a profusion of cookie recipes occurred. This led to the development of manufactured cookies.Interestingly, as time has passed and despite more varieties becoming available, the essential ingredients of biscuits havent changed like soft wheat flour (which contains less protein than the flour utilize to bake bread) sugar, and fats, such as butter and oil. Today, though they are cognize by different names the world over, people agree on one thing nothing beats the biscuit near interesting facts on the origin of other forms of biscuitsThe recipe for oval shaped cookies (that are also known as boudoir biscuits, sponge biscuits, sponge fingers, Naples biscuits and savoy cabbage biscuits) has changed little in 900 years and dates back to the house of Savoy in the 11th century France. Peter the Great of Russia seems to have enjoyed an oval-shaped cookie called lady f ingers when visiting Louis XV of France.The macaroon a small round cookie with crisp crust and a soft interior seems to have originated in an Italian monastery in 1792 during the French Revolution.SPRING-uhr-lee, have been traditional Christmas cookies in Austria and Bavaria for centuries. They are made from a simple egg, flour and sugar dough and are usually rectangular in shape. These cookies are made with a leavening agent called ammonium carbonate and baking ammonia.The inspiration for fortune cookies dates back to the twelfth & 13th Centuries, when Chinese soldiers slipped rice paper messages into moon cakes to help co-ordinate their defense against, Mongolian invaders. .