General thoughts on diffences between Innovation and R&D

Innovation is NOT quite the same as R&D. Consumers pay for innovation in meeting their real, created or perceived needs. Sometimes innovation lies in assembling assorted available technologies in a matrix of scintillating design; so in theory you could get by even if you did not really produce your own R&D but merely focused on innovation. In the real world however no one has quite managed to excel in innovation without also excelling at R&D even if excellence in R&D is no guarantee of excellence in innovation. - Source: The Economic Times: 29-Dec-2010

Who the real competitors of Biscuits are?

Biscuits have carved out a niche space in the realm of snacks. The snacks are the categories of food consumed in between meals for satiating short-lived hunger.

Looking from India perspective, when we talk about snacks, the first thing which comes to our mind is “samosa” and obviously not the biscuits. 

Other than “samosas”, the following snacks items are equally popular:

1. Bhajias or Pakoras
2. aloo tikki,
3. vada pau
4. momo (quite popular in north eastern region)
5. Bhelpuri
6. Chats

Along with this, the fast paced nuclear and health conscious families are slowly moving towards Ready-to-eat (RTE) and Ready-to-cook (RTC) foods such as cornflakes, soup, popcorn, pasta, Maggie noodles etc

In western countries, the most prominent snacks is pizza.

Biscuit Industry in a snapshot

Overview :

• The total production of biscuits in India is estimated to be around 30 lakh MT, the organized sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume.
• The organized sector is valued at above Rs 8000 crores.
• The biscuit industry is estimated to grow over 15-17% in the next few years.
• The per capita consumption of biscuits in India is 2.0 kg.
• India is ranked 3rd after US and China amongst the global biscuits producers.
• The export of biscuits is approximately 17% of the annual production, the export of sweet biscuits for year 2007-08 was Rs 145.93 Cr and for year 2008-09(April-Dec) was Rs 280 Cr, the major exporting regions were Haiti, Angola, USA, Ghana, UAE.
• The imports are not significant amount as compared to the total consumption.
• The penetration of biscuits in urban and rural market is 85% and 55% respectively.
• The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people indirectly.

Main Categories of Biscuits : Glucose, Marie, Sweet, Salty, Cream & Milk. Glucose biscuits accounts for more than 50% of the total biscuit market value, Parle G dominate this market with more than 60% share followed by Britannia and ITC.
Brands :-
Major brands The Indian biscuit industry is dominated by major brands like Parle, Britannia, and Sunfeast. Also the category has strong regional brands such as Priya Gold-North, Cremica-North & West, Dukes-South and Anmol-East & North.
Other popular brands Horlicks, Biskfarm-East, Rose-Andhra Pradesh & South, Sobisco-East and North East also launched in Andhra Pradesh and Madhya Pradesh., Nezone- North East, Bakewell.
Market Share Breakdown The Indian biscuit industry is dominated by brands like Parle, Britannia and Sunfeast.

Consumption Pattern across Various Regions

Consumption of biscuits is even across the regions

2010 – New Prospects in the Indian Biscuit Industry

• GlaxoSmithKline Consumer Healthcare: Junior Horlicks Biscuits-toddler biscuit category.
• PepsiCo India Launched biscuit brand Aliva, it will be produced by food division Frito Lay India.
• United Biscuits (UK), world’s third largest biscuit company, is set to enter India market.
• Shakti Bhog plans to enter biscuits segment.

A survey of sorts

Went around talking to all and sundry, especially women...asked them what biscuits they buy for the family...and you won't believe--almost 80% said Parle G, other brands on and off. Any thoughts on that??? What is Britannia doing?

Getting a few facts straight.

Biscuit Industry: India

Reference: marketresearchdata.org

Friday, 15 January 2010

Overview : The total production of biscuits in India is estimated to be around 30 lakh MT, the organized sector accounts for 65% and the unorganized sector accounts for 35% of the total industry volume. The organized sector is valued at above Rs 8000 crores. The biscuit industry is estimated to grow over 15-17% in the next few years. The per capita consumption of biscuits in India is 2.0 kg. India is ranked 3rd after US and China amongst the global biscuits producers. The export of biscuits is approximately 17% of the annual production, the export of sweet biscuits for year 2007-08 was Rs 145.93 Cr and for year 2008-09(April-Dec) was Rs 280 Cr, the major exporting regions were Haiti, Angola, USA, Ghana, UAE. The imports are not significant amount as compared to the total consumption. The penetration of biscuits in urban and rural market is 85% and 55% respectively. The Biscuit industry employs almost 3.5 lakh people directly and 30 lakh people indirectly. The organized biscuit manufacturing industries annual production Year 2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 Annual Production(Lakh MT) 11.00 12.54 14.29 16.14 17.14 19.5 Main Categories of Biscuits : Glucose, Marie, Sweet, Salty, Cream & Milk. Glucose biscuits accounts for more than 50% of the total biscuit market value, Parle G dominate this market with more than 60% share followed by Britannia and ITC. Brands :- Major brands The Indian biscuit industry is dominated by major brands like Parle, Britannia, and Sunfeast. Also the category has strong regional brands such as Priya Gold-North, Cremica-North & West, Dukes-South and Anmol-East & North. Other popular brands Horlicks, Biskfarm-East, Rose-Andhra Pradesh & South, Sobisco-East and North East also launched in Andhra Pradesh and Madhya Pradesh., Nezone- North East, Bakewell. Market Share Breakdown The Indian biscuit industry is dominated by brands like Parle, Britannia and Sunfeast. Consumption Pattern across Various Regions Consumption of biscuits is even across the regions 2009 – New Prospects in the Indian Biscuit Industry GlaxoSmithKline Consumer Healthcare: Junior Horlicks Biscuits-toddler biscuit category. PepsiCo India Launched biscuit brand Aliva, produced by food division Frito Lay India. United Biscuits (UK), world’s third largest biscuit company, is set to enter India market. Shakti Bhog plans to enter biscuits segment. Major Players Britannia Industries Ltd. : Net sales for FY 2008-09 are Rs 3,112.2 Cr. For FY 07-08 biscuits recorded sales of Rs. 2,329.9 Cr. Key Products Tiger, Good Day, Bourbon, 50-50, Treat, Milk Bikis, Marie Gold, NutriChoice, Timepass, Little Hearts Parle Products Pvt. Ltd : Established In 1929, company has factories in Mumbai, Bangalore, Bahadurgarh in Haryana and Neemrana in Rajasthan, Additionally, Parle Products also has 7 manufacturing units and 51 manufacturing units on contract. Company has about approximate market share of 30-35% of the total biscuit market. Parle-G accounts for the major volume turnover it accounts for approximately 80% of the total biscuit tonnage for the company. Key Products : Parle - G , Hide and Seek ,Krackjack ,Hide & Seek Milano ,Magix ,Digestive Marie ,Monaco ,Parle Marie ,Kreams ,Milk Shakti ,Parle 20-20 Cookies ,Golden arcs ,Nimkin ,Kreams Gold ,Chox ,Monaco Jeera Surya Food & Agro Ltd : Manufacturing & selling of biscuits under brand “Priyagold”. Company has three plants located in Greater Noida, Lucknow & Surat. They also outsource some of our requirements to another plant located in Hyderabad. Capacities have reached 1, 50,000 MT p.a. Key Products : Classic Cream , Butter Bite ,Kids Cream ,Bourbon ,Big Boss ,Marie Lite ,Magic Gold ,CNC ,Cheese Cracker ,Snacks Zig Zag ,Don ,Coconut Crunch ,Cheez Bit Classic Salt ,Chatpata ITC Ltd : In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits. Sunfeast with a current market share of ~10% is now clearly established as a credible third brand. Key Products : Sunfeast Milky Magic ,Sunfeast Marie Light ,Sunfeast Golden Bakery ,Sunfeast Dark Fantasy ,Sunfeast Dream Cream ,Sunfeast Snacky ,Sunfeast sweet 'n salt ,Sunfeast Nice ,Sunfeast Benne Vita Flaxseed Biscuits ,Sunfeast Special Anmol Biscuits Ltd : Anmol is a popular brand of eastern & northern region, having manufacturing facilities in W.B & U.P. Key Products : Lemon Mazaa , Funfill Choco Vanilla , Yummy - Milk Cream , Tip Top Kajoo Kurkure Masala, Coconutty , Thin Arrowroot , Marie,2 in 1, Butter Bake , Cream Cracker , Dil Khush , Dream Lite , E-Time , Funfill Orange , Funfill Rich Chocolate ,Golmol ,Jadoo ,Marie Time , Snackles ,Milk Made

 

Munching on great ideas--it's time for a BISCUIT break

Four little cookies in the bakery shop.
Shinning bright with the sugar on top.
Along come the warriors with a nickel to pay.
They buy a cookie and take it away.

Four little cookies in the bakery shop.
Back again with cherry innovation on top.
Along come the warriors with an idea to stay.
How to make others buy the cookie and take it away.