dragon biscuit manufacturers
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To become a pioneer and distinctive company in
manufacturing and marketing bakeries, sweets, and toffee
worldwide by fulfilling customers expectationsMission
To be leading and forward looking food
company committed to satisfy consumers witha delightful, healthy and hygiene product
range.
Vision
Our values serve as a compass for our actionsand describe how we behave in the world.Value
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Biscuit industry contribute Rs 8000 crores to theFMCG industry.
Biscuit contributes to over 33% of totalproduction of bakery.
Per capita biscuit consumption in India is 2.1 kgas compare to 10 kg per capita consumption inUSA, UK & Europe.
It is classified under two sectors-
Organised & unorganised
Organised sector contributes 70% whileunorganised sector contributes 30% of totalmarket share of biscuit.
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ANNUAL PRODUCTION OF BISCUITS(IN LAKH
METRIC TONNES)
ANNUAL PRODUCTION
OF BISCUITS(IN LAKH
METRIC TONNES)
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This profile envisages the establishment of a plant for the production of
biscuit with a capacity of 1,500 tonnes per annum.
The present demand for the proposed product is estimated at 14,798 tonnes
per annum. The demand is expected to reach at 20,141 tonnes by the year
2020.
The plant will create employment opportunities for 150 persons.
The total investment requirement is estimated at about $9,920,000.
The project is financially viable with an internal rate of return (IRR) of 15 %
and a net present value (NPV) of $2 million discounted at 8.5%.
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Source of fund Participation (%)
Promoters 40%
Shareholders funds 35%
10% Debentures 10%
Bank loans 15%
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Description Cost
Machinary and Equipment
Factory and Office Building
Working Capital
Auxillary Items
Pre-Operational Expenses
Gross Total
4,900,000
2,000,000
2,000,000
7,20,000
3,00,000
9,920,000
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CrackersButter PuffMarvellSaltish
Plain Sweet BiscuitsGluco
MarieSooperWhole Wheat Slice
NutsPeanut Pik
Peanut Pista Cream Biscuits
Choco Vanila SandwichChocolate SandwichLemon Sandwich
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High competitionAmong existing players
Porters Five Force model
Suppliers`
Basic commodities :
Wheat, Sugar.Increasing price
Customer
Many biscuit from low
to moderate Range, Like of bakery product
New Entrants
Capital Sensitive:
Manufacturing,
Advertising,
Distribution network,
SubstituteTraditional Indian
homemade snacks,
Bread,
Package Snacks
Bakery product.
HIGH LOW
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Strengths - Brand building capabilities: Brand image of the company existing in the industry, every companyhas a strong brand image to consumers. Diversified product range of the industry covering al segments. The depth of distribution Low and mid price range of the products Weaknesses Dependence on retailers and grocery stores for displaying diversified
products on shelf. Lack of technology up gradation.
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Opportunities
Indian Biscuit Manufacturers Association (IBMA) estimates annual
growth of around 20% in next couple of years.
The $220 Billion food industry is expected to grow to $300 Billion by
2015.
Per capita consumption of Biscuits in the country is only 1.8 kg as
compared to 2.5 kg to 5.5 kg in South East Asian countries and European
countries, and 7.5 kg in USA.
Opportunity to further grown in Urban & Rural market; Current
penetration levels are,
Urban Market: 75% to 85%
Rural Market: 50% to 65%
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Threats Fluctuations in the prices of raw materials, transportation costs &
distribution cost due to high wedges and oil prices, Emerging local bakery products.
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Recruitment practices and strategies: on campus, walk-in
Training and development: workshops, R&D.
Dispute settlement machinery: arbitrary
Motivation techniques: performance appraisal, incentives, internal challenges
sessions, strategic meetings, projects handling. Competitive advantage:
strong team spirit, diversify skills.
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After liberalization several policy measure have been taken with
regard to regulation and control ,export and import,fiscal policyexchange and interest rate control taxation , export promotion andincentives to food processing and biscuit industries.
As per extent policy foreign direct investment up to 100% ispermitted under the automatic route in the food infrastructure likefood park , cold chain and warehousing .
As far as food retail is concerned the FDI policy does not permitFDI into retail sector except single brand product retailing . Thispolicy is uniform for all retailing activity.
Food processing industry is one of the growing area identified forexports. Free trade zones (FTZ)and export processing zones
(EPZ)have been set up with all infrastructure. Sales tax on biscuit :- FBMI has urged state to fix the rate of VAT on
biscuit at the minimum level of 4% meant for items of massconsumption because it is consumed by the different section ofsociety including the poor sections.
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FBMI, Established in 1950.
The FBMI represents the organized biscuit industry
consisting of small scale, medium and large biscuit
manufacturers located in all zones and all States ofthe country.
As the apex body of the biscuit industry, the
Federation strives to serve its members in particular
and the biscuit industry in general.