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Feb, 05 2015

Freshly oven baked biz ideas

“Bake the world a better place,” and scoop out sweet returns from the cream of F&B market - the bakery industry, which occupies third position when it comes to generating revenue.

It is expected that Indian bakery industry will reach US $ 7.6 billion by the end of 2015. Conventional Indian bakery industry comprises of biscuits, breads and cakes largely. Lately doughnuts have also made an entry in this industry. Large scale bakery business events like Bake Tech Expo that provide a platform for various bakery companies to come together have given a great impetus to the booming of this industry. Adding to it, World Baking Day 2015 shall fall on May 15, another initiative to promote baking all over. India's population is over one billion and it has the largest middle-income population. This makes India a prominent market for both global and domestic players alike.

Slices of industry

The Indian biscuit market is estimated to be about 1.1 million tons per annum, valued at Rs. 50 billion. The penetration of branded players in this segment is pegged at between Rs. 2500 and 3000 crore. India's per capita consumption of biscuits is pegged at 1.5 kg, pointing to tremendous potential for the industry to grow. Over 900 million  50 per cent of the Indian market is in the unorganised sector, with the market growing at a CAGR of six to seven per cent. Doughnut market is pegged at Rs 10,000-12,000 crore.

Crisp opportunities

Krispy Kreme is internationally known for their doughnuts and coffee. Dunkin' Donuts, another leading player is an international coffee and baked goods chain. The brand is acclaimed for its doughnuts, coffee, beverages and sandwiches. Jubilant Food Works Limited has exclusive rights for developing and operating Dunkin' Donuts restaurants for India. Thai-brand, The Donut Baker introduced doughnuts to the Indians in 2008 with its Bangalore store by Global Franchise Architects (GFA). Following this, Singapore brand, Mad Over Donuts made its entry into this segment. 

Frontier Biscuit Factory recognised as a leading manufacturer of 'Eggless Premium Biscuits' was established in 1921 in West Pakistan and shifted to India after the partition. Monginis started in 1956 by the Khorakiwala family. The brand offered franchise opportunities to budding businessmen who could operate their own enterprise, by employing the product and service range offered by the mother company. Cookie Man was launched in India in January 2000 by Australian Foods (I) Pvt. Ltd. The brand is recognised by its distinctive, bright decor and the unique traveling oven which bakes fresh mouth-watering cookies.

Tempting strategies

Diversification has been incorporated in bakery industry. Many new concepts have emerged that are seducing the taste buds of customers and filling the coffers of entrepreneurs in return. Anupam Saluja, Chief Executive Officer, Cookie Man says, “We plan to expand beyond malls and airports and set up shops in high streets. We are preparing new menus comprising of cakes and breads.”

Home deliveries, quick bites and customised food are the upcoming trends. Consumers these days regard the bakery joints as leisure places and venues for conducting business meetings. Setting its own trend, Dunkin' Donuts has crafted its signature products around the evolved urban young adult customers. “We have plans to expand through the year, across north, west and south India,” says Ajay Kaul, CEO, Jubilant Food Works Ltd.

Bitter & sweet layers

For Krispy Kreme, the biggest challenge is supply chain and providing value to the discerning Indian consumer. “We work with our partners to improve the infrastructure and also look at locating stores close to each other so we can control supplies and costs when restricted to smaller geographical region,” says Purva Sinha, Director, Krispy Kreme.


= IT and education hubs are attracting a great footfall.

= Online retailing and delivery at the doorstep.

= Menu comprising of part food and part beverages.

= Assigning alluring names to the products.

= Introducing more of vegetarian delicacies.





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