CHAPTER FIVE

GROWTH AND
DEVELOPMENT
OF BAKERY
BUSINESS IN
INDIA
 CHAPTER FIVE

GROWTH AND DEVELOPMENT OF BAKERY

BUSINESS IN INDIA

Sr. Page
Contents No.
No.

5.1 GROW TH AN D D EVELO PM EN T 106

5.2 B A K E R Y INDUSTRY IN INDIA 110

5.3 B A K E R Y INDUSTRY IN M AH AR AS H TR A 112

5.4 H ISTO RY OF B A K E R IE S IN PUNE DISTRICT 116

5.5 TR AN SM ISSIO N OF M U SLIM CULTU R E 117

5.6 D E VE LO P M E N T OF B A K E R IE S IN PUNE 119

105 - Growth and Development of Bakery Business in India

 CHAPTER FIVE

GROWTH AND DEVELOPMENT OF BAKERY

BUSINESS IN INDIA

5.1 GROW TH AND DEVELO PM ENT:

Bakery products plays very vital role in Indian food industry. In India bread

and biscuits come under the list of non-essential items i.e. they are not

considered as basic necessities. Variants of bread such as rusks have found

acceptance among relatively poor households. However, items like cakes and

pastries have remained the items of the elite.

In India basically the bakery industry developed largely to meet the needs of

the Royal British Army. Thus, this industry developed at first at the seaports of

Calcutta and thereafter Mumbai to cater to the need of foreign travelers and

army personnel. Biscuits were first made in India about 300 years ago due to

same reason. Upto the Second World W ar there were only 9 factories

producing the bread and biscuits and also confectionery in India. During the

war the supplies from abroad were curtailed and thus this industry like several

other received the fillip in its growth.

In India, each state has its own traditional bakery products, which continue to

be in use, side by side with modern conventional varieties of bread and

biscuits. They are consumed along as a complementary food i.e. with tea or

milk. Particularly in Jammu and Kashmir the traditional bakery industry is very

popular. The principal items of production Girdha, Kulcha, Chauswhroo and

Bakerkrani etc. These items are produced in about 3000 tandoors in the state.

Most of these bakery items are native to this state and are not used anywhere

-|Qg - Growth and Development of Bakery Business in India

In the post independence period, the growth of bakery industry was more

scientific. However there are large number of traditional items which are still in

great demand viz bund, Kulcha, Nans etc. Some of these are produced in

manually operated bakeries.

Table 5.1

L is t o f b a k e ry u n its in th e s ta te s a nd th e

U n io n T e rrito rie s o f In d ia in 1992

Sr. S tate and U n io n S m a ll U n its T o ta l U n its

No.
1. Delhi 350 375
2. Chandigarh 27 27
3. Maniput 4 4
4. Meghalaya 15 15
5. Nagaland 14 14
6. Pondicherry 2 3
7. Tripura 26 28
8. Assam 140 160
9. Andhra Pradesh 243 270
10. Bihar 205 243
11. Goa 40 40
12. Gujrat 123 137
13. Haryana 42 49
14. Himachal Pradesh 35 35
15. Jammu & Kashmir 92 97
16. Kerala 190 206
17. Karnataka 282 307
18. Madhya Pradesh 210 250
19. Maharashtra 460 690
20. Orissa 68 78

107 - Growth and Development of Bakery Business in India

Sr. State and U nion S m a ll U nits T otal U nits
No.
21. Punjab 95 106
22. Rajasthan 52 77
23. Tamilnadu 409 449
24. Uttar Pradesh 233 293
25. W est Bengal 58 106
Total 3415 4059

Source: Bakery technology and manufacture

Table reveals that the Maharashtra State tops the list having maximum 690

number of bakery units followed by Tamilnadu having 449 bakery units and

the union territory of Delhi with 375 units descending order of magnitude. The

table also further reveals the states and union territories with minimum

number of bakery units. Considering the last four positions in India with

minimum number of bakery units are Meghalaya with 15 units followed by

Nagaland with 14 units, Manipur with only 4 units and the Union territory of

Pondichery with just 3 units in that cities which is having the population of

3,30,000 and having the literacy rate of 71.1% as per 1991 census. From the

table 5.1 it would be observed that the maximum percentage of bakery units

in Maharashtra State of the total bakery units about 16% of the bakery units in

Maharashtra State followed by 11% in Tamilnadu and 9% in the Union

Territory of Delhi. The percentage of difference between the first position is

5% and 3% between the second and third position respectively.

From the above figures it is observed that the maximum number of bakery

units are established in Maharashtra State, if compared to its populations

stands fifth in the rank. As it is observed from the table that in Maharashtra for

every 20,000 population there only 0.19 units of bakeries, whereas in

108 - Growth and Development of Bakery Business in India

Nagaland for the same number of population they 0.36 units. Jammu and

Kashmir ranks second in the highest number of bakeries followed by Tripura,

Meghalaya, Maharashtra etc.

Among the Union Territories of India it is heartening to note that Chandigarh

ranks first with 1.19 units for every 20,000 population, followed by Delhi with

1.08 units for every 20,000

109 - Growth and Development of Bakery Business in India

5.2 B A K E R Y INDUSTRY IN INDIA:

Bakery products in India are in common use. These are no more meant

exclusively for a few holds or class of people. In India, bread and biscuits

come under the list of non-essential items i.e. they are not considered as

basic necessities. Variants of bread such as rusks have found acceptance

among relatively poorhouse holds. However, items like cakes and pastries

have remained the items of the elite.

In India, the bakery industry developed largely to meet the needs of the British

army. Thus, this industry developed at first at the seaports of Calcutta and

Bombay to carter to the need of foreign travelers and army personnel. Biscuits

were first made in India about 300 years ago due to the same reason. Up to

the Second World War, there were only 7 factories producing bread and

biscuits and also confectionary in India. During the war, the supplies from

abroad were curtailed and thus this industry like several others, received the

fillip in its growth.

In the post of independence period, the growth of bakery industry was more

scientific. However, there are large number of traditional items which are still

in great demand viz. bund, kulcha, nans, etc. Some of these are produced in

traditional cylindrical ovens known as "Tandoors", while others are produced

in manually operated bakeries.

Each State of India has its own traditional bakery products, which continue to

be in use, side by side with modern conventional varieties of bread and

biscuits. They are consumed along or as a complementary food i.e., with tea

or milk. Particularly in Jammu and Kashmir the traditional bakery industry

continues to be popular. The principal items of production are Chauswhroo,

^^Q - Growth and Development of Bakery Business in India

Girdha, Kulcha and Bakerkhani. These items are produced in about 1,000

Tandoors in the State. Most of these bakeries items are native to this State

and are not used anywhere in the rest of the country except Girdha, which is

used in Hyderabad also.

T a b le 5.2

D e ta ils o f B a k e ry U n its in th e S ta te s a nd in the

U n io n T e rrito rie s o f India

Sr. S tate an d U nio n S m all U n its T o ta l U nits

No.
1. Delhi 325 336
2. Chandigarh 27 27
3. Manipur 4 4
4. Meghalaya 15 15
5. Nagaland 14 14
6. Pondicherry - 1
7. Tripura 26 27
8. Assam 139 154
9. Andha Pradesh 243 264
10. Bihar 205 243
11. Goa 40 40
12, Gujrat 123 135
13. Haryana 42 42
14. Himachal Pradesh 35 35
15. Jammu and Kashmir 92 93
16. Kerala 197 203
17. Karnataka 282 307
18. Madhya Pradesh 210 245
19. Maharashtra 458 601
20. Orissa 68 78
21. Punjab 93 97
22, Rajasthan 52 77
23. Tamil Nadu 409 419
24. Uttar Pradesh 235 i 272

111 - Growth and Development of Baket7 Business in India

 Sr. S tate and U nion S m all U n its T otal U nits
No.
25. West Bengal 58 105

1 T otal 3392 834

Source: Bakery Technology and Manufacture

5.3 B A K E R Y INDUSTRY IN M AH AR AS H TR A:

Table reveals that Maharashtra State tops the list of having maximum number

of bakery units i.e. 601 units, followed by Tamilnadu having 419 units and the

Union Territory of Delhi with 336 Units descending order of magnitude. The

table also further reveals the States and the Union Territories with minimum

number of bakery units. Considering the last four positions in India, with

minimum number of bakery units are Meghalaya, with 15 units, followed by

Nagaland with 14 units, Manipur with only 4 units and the Union Territory of

Pondichery with just 1 unit. In this way, it would be observed that Pondichery

is having only just 1 unit. It is surprising to note further that there is not even a

single tiny bakery unit in that city, which is having a population of 2,51,000

and having a literacy rate of 61.4% as per 1981 census. From the table it

would be observed that the maximum percentages of bakery units are in the

State of Maharashtra. Of the total bakery units about 16% of the bakery units

are in Maharashtra State, followed by 11 % in Tamil Nadu & 9% in the union

territory of Delhi. The percentage of difference between the first positions is

5% and 3% between the second and third position respectively.

It is observed that Maharashtra State, which boasts of having the maximum

number of bakery unit in India, if compared to its population stands fifth in the

rank. As it is observed from the table that in Maharashtra for every 20,000

population there only 0.19 units of bakeries, were as in Nagaland for the same

112 - Growth and Development of Bakery Business in India

number of population they have 0,36 units, Jammu & Kashmir ranks second

in the highest number of bakeries followed by Tripura, Meghalaya,

Maharashtra etc.

Among the union Territories of India It is heartening to note that Chandigarh

ranks first with 1.19 units for every 20,000 People, followed by Delhi with 1.08

units for every 20,000 Population with Goa, Daman and Diu in the third

Position with 0.03 bakery units for the same Population.

113 - Growth and Development of Bakery Business in India

 Table 5.3

T o ta l area, P o p u la tio n , n u m b e r o f b a ke ry u n its and th e n u m b e r o f b a ke ry

u n its fo r e ve ry 20,000 P o p u la tio n in the v a rio u s S ta tes and U nion

T e rrito rie s o f India as on 31-3-2006

Sr. States Area as on Population Total Number of

No. 31.3.1982, 1981 Census No. of bakery
bakery units for
000 Km OOO’s
Units every
20,000
Population
1. Nagaland 17 775 14 0.36
2. Jammu & Kashmir 222 5,987 93 0.31
3. Tripura 10 2,053 27 0.26
4. Meghalya 22 1,336 15 0.22
5. Maharashtra 308 62,784 601 0.19
6. Tamil Nadu 130 48,408 419 0.17
7. Karnataka 192 37,136 307 0.17
8. Himachal Pradesh 56 4,281 35 0.16
9. Kerala 39 25,454 203 0.16
10. Assam 78 19,897 154 0.15
11. Punjab 50 16,789 97 0.12
12. Andhra Pradesh 275 53,550 264 0.10
13. Madhya Pradesh 443 52,179 245 0.09
14. Gujrat 196 34,086 135 0.08
15. Bihar 174 69,915 243 0,07
16. Haryana 44 12,923 42 0,07
17. Manipur 22 1,421 4 0.06
18. Orissa 156 26,370 78 0.06
19. Uttar Pradesh 294 1,10,862 272 0.05
20. Rajasthan 342 34,262 77 0.04
21. West Bengal 82 54,581 105 0.03

114 - Growth and Development of Bakery Business in India

Sr. States Area as on Population Total Number of
No. 31.3.1982, 1981 Census No. o f bakery
bakery units fo r
000 Km OOO’s
Units every
20,000
Population
U n io n T e rrito rie s
1 . Chadigarh 0.1 452 27 1.19
Delhi 1.5 6,220 336 1.08
Goa, Daman & Diu 3.8 1,087 40 0.74
Pondichery 0.5 604 0.03

Source: Statistical outline of India

From the table it would be observed that out of the 9 Union Territories,

information regarding only 4 Union Territories was available. Information

regarding the following Union territorfes;viz. Andaman & Nicobar Islanda;

s' ‘ • *

Arunachal Pradesh; Dadra and Nag.er^HaVeli; Mizoram, Lakshadweep were

not available.

The states have been serially arranged according to the maximum number of

bakery units for per 20,000 populations. Thus the states having the maximum

and minimum bakery units could be evident at a glance. Similarly the Union

Territories have also been arranged in the same sequence.

It reveals that although Uttar Pradesh stands 4th in the list of having

maximum number of bakery units in India, as shown in the previous Table it

ranks 19**^ considering the maximum. Population as compared to the other

states i.e. 11,08,62,000 as per 1981 census records. It is further very

interesting to note that most of the workers working in bakeries here are from

the cities and rural areas of Uttar Pradesh. These workers who have mastery

115 - Growth and Development of Bakery Business in India

or knowledge of Bakery's working and. processes have migrated to almost all

the other neighbouring states in, order to earn their livelihood.

Bakery Industry has to play an important role to play in the economic

development of the country, in the fuller utilization of its wheat resources and

in building up the health of the people. This Industry has a prospective future,

considerable scope of generating additional employment and investment. In

this industry the capital requirement per unit of additional employment is far

lower as compared to most of the other capital-intensive industries India.

More recently the products of this industry have also recognized as most

officious means of delivering supplementary nutrition to weaker and

vulnerable sections of our society who are in danger of experiencing

symptomatic morbidity unless hurriedly enriched with such supplementation.

Much attempt is being made to popularize bakery products among all,

because these products are considered easy, convenient and rather

expensive means of taking food in hygienically prepared, ready to eat form. A

particular role in this direction is being played by the use of, both bread and

biscuits as means of nutrition supplementation, for large number of children

and lactating and nursing mothers, who are covered by various feeding

programs, operating both at the State and the Central Government, levels.

5.4 HISTORY OF THE BAKE R IES IN PUNE DISTRICT:

P u n e's F irs t Baket 7 :

Pune is one of those few places, like Bangalore, in India where climate seems

to have blended ideally with its people to produce an ethos which has built up

on the one hand, probably the best in Indian Culture and education, and on

116 - Growth and Development of Bakery Business in India

the other vital part of the country's growing industry. Comparisons are odious,

but for the benefit of a foreigner “Contemporary Oxford" is about the most

obvious analogue.

Pune has been building up, modern industry against the background of its old

traditions, of learning and administration. The renaissance in education and

industry started together in the eighties of the 19'^ Century, but industry

followed. Education is in its strides of progress even today although this city is

being recognized as one of the industrial cities, yet its eminence as an

educational centre has not diminished.

The earliest reliable and express reference to Pune City is to be found in the

copper plate inscriptions of the Rashtrakuta Kings in the 8‘^ and 10**^ century.

In 754 in the copper inscription Pune has been described variously as Punya

Vishaya, Punaka Visjiaya, .Punakawadi and so on. The Rashtrakutas were

1 V -
thrown in 973 and j»une passed under the Yadav Kings of Daulatabad.
>

After defeating Yadavas, Allauddin Khiiji brought Pune under Muslim regime

in 1214 A.D. and it was during this period that the first bakery was established

in Pune. Pune thus developed gradually into small town of Mohammedans

and came to be know as Kasbe Pune.

5.5 TR AN SM ISSIO N OF THE M USLIM CULTU R E:

In the Muslim culture. Naans and Roaths are used extensively in 3 Muslim

months, particularly as a part of a religious convention. In the month of

Ramzan Naans are used extensively and in the months of Moharrum and

Safer Roaths. In the month of Ramzan, every Muslim distributes Naans of a

token of mutual cordiality and similarly Roaths are distributed in the month of

- Growth and Development of Bakery Business in india

Moharrum and Safar in the name of Imam Hussain A.S. and his family

members who were martyred at Kerbala (Iraq) on 10th of Moharrum 611 A. D.

by the hands of Yazid. Distribution of Roaths to orphanges and poor, during

these months is a part of the religious conventions. Moreover, Muslims all

over the world are known for being orthodox and traditional and besides they

are ardent followers religious commandments.

Although the Muslims are inhabitants of the Arabian countries, yet, as per the

historical evidence, they had their regime in India since centuries. Obviously

their religious conventions of utilizing Naans and Roath have become familiar

to Indians. Transmission of Muslim culture in India has given the adequate

taste of this bread substance (i.e. Roath and Naan) to the Indians.

The Muslims ruled over Pune till 1637, when Shahaji Bhosale defeated them.

Thus as per the records, Pune was under the Muslim rule for complete 343

years i.e. from 1294 to 1637.

Historians did mention that the Bakery Industry had been established by these

Muslim rulers in Pune, but nowhere on record they have shown or have given

the exact number of bakeries that were stated during their rule. Even it is not

shown how many bakeries were in existence and were carrying on the bakery

business, till the time when Shahaji Bhosale took over the regime.

One of the probable reasons of the historian’s inability to provide this vital

information regarding, the number of bakeries in existence in 1637 could be

because of the well known incident which took place in 1631.

^^g - Growth and Development of Bakery Business in India

As it has been written and confirmed by all the historians that in 1631 when

Shahaji Bhosale rose in revolt against the Nizam and Adil Shaha, then

Murrar Jagdev Pandit, who then the Sardar Murrar Pandit plundered the

entire city and literally razed it to ground. Before leaving the city, he had an

ass drawn plough driven all over the place. So in 1637 Pune’s Jahgir, was

again given to Shahaji Bhosale. Thus, because of this incident the record of

number of bakeries could not be kept.

5.6 DEVELO PM ENT OF B A K E R IE S IN PUNE:

A record of the number bakeries is available since 1740 onwards. Great effort

has been put in to find out and to get some data about the number of bakeries

till and before 1740. But as it has not been recorded anywhere it was not

possible to produce any specific data this connection.

Besides the details of the Population of the Pune before or upto 1740 is also

not available. All information regarding the population of the Pune is available

only 1740 onwards.

Table 5.4 helps to study and observe the development of bakery industry in

Pune between 1740 and 1988. The population figures shows include the

population figures of the Pune City plus Pune and Khadki Cantonment areas

too. Table 5.4 helps to understand and observe the significance of the

bakeries, during the various intervals of time. It shows very clearly that what

was and what is, the total population and the total number, bakery in the past

and serving today, despite modernization and technological advancement.

How much have they been successful in it and whether they are keeping pace

with the foreign bakeries where there is one bakery per 1000 people?

<1 g - Growth and Development of Bakery Business in India

 T able 5.4

The D e v e lo p m e n t o f th e B a ke ry In d u s try in P une C ity in c lu d in g P une

and K h a d k i C a n to n m e n t A re a s s in c e 1740 o n w a rd s

New One Bakery

Sr Bakeries Total meeting the
Bakeries Total
Period closed Existing requirements
No. established Population
down Nos Bakeries of every 1000
Nos
People
1. - to 1740 1 - 1 4 6 ,0 3 9 4 6 ’0 39
2. 1741 to 1780 2 1 3 1 ,7 2 ,6 4 8 5 7 ,5 4 9
3. 1781 to 181 8 1 - 3 1 ,2 0 ,8 5 4 4 0 ,2 8 4
4. 1 8 1 9 to 1822 - - 3 9 0 ,8 0 6 3 0 ,2 6 8
5. 182 3 to 1851 - 1 3 8 4 ,2 6 8 2 8 ,0 8 9
6. 1852 to 1864 - - 2 9 2 ,0 5 5 4 6 ,0 2 7
7. 1 8 6 5 to 1872 1 - 3 1 ,3 0 ,4 8 6 3 4 ,4 9 5
8. 1 8 7 3 to 1881 - - 3 1 ,1 4 ,0 7 7 3 8 ,0 2 5
9. 188 2 to 1891 - - 3 1 ,3 5,992 4 5 ,3 3 0
10. 189 2 to 1901 3 2 4 1 ,2 7 ,3 3 9 3 1 ,8 3 4
11. 190 2 to 1911 7 2 9 1 ,3 4 ,2 5 4 14,917
12, 191 2 to 1921 5 2 12 1 ,5 2 ,2 0 9 12,684
13. 192 2 to 1931 6 1 17 1 ,8 4 ,9 7 0 10,880
14. 193 2 to 1941 15 5 27 2 ,7 1 ,0 8 2 10,040
15. 1 9 4 2 to 1951 18 - 45 5 ,4 8 ,6 8 6 12,193
16. 1 9 5 2 to 1961 20 3 61 6 ,7 8 ,8 8 8 11,129
17. 1 9 6 2 to 1971 17 1 77 9 ,7 5 ,2 6 2 12,665
18. 1 9 7 2 to 1981 45 - 122 1 3 ,7 0 ,1 7 2 11 ,2 3 0
19. 1 9 8 2 to 198 8 33 - 155 1 7 ,6 5 ,6 8 3 11,391

Source; 1. Industrial and Commercial Directory of Pune

2. Statistical Outline of India

Table 5.4 shows that in 1740 A.D. there was just one new bakery setup and

that there were no other bakeries in existence before that. As observed earlier

no previous data is available. It is assumed therefore that there were no

previous bakeries in existence. They had all been completely wiped off at the

hands of the Murar Jagdev Pandit and thereafter the Muslim community was

rather afraid of restarting bakery business once again in Pune under the

120
- Growth and Development of Bakery Business in India
Maratha rulers, for the fear of again having to suffer heavy losses due to the

constant change of rulers.

However, in 1740, bakery was once gain established by Muslim businessmen,

hailing from Agra. At that time the population of Pune was only 46,039 and

besides over 95 percent of the people preferred home made chapattis to

bakery made bread. Although there was just, one bakery for such a huge

population yet its sales were not very satisfactory.

However the population kept on increasing. In just 40 years the population

had increased to 375 percent by 1780. But in contrast to this high increase in

population the number of bakeries increased by 2 numbers. There were in all

only 3 bakeries meeting the requirements of a population of 1,72,648. This

indicates that on an average just one bakery was serving the population of

approximately 57,549.

As days passed by some new bakeries were established and some, existing

bakeries closed their business totally and started with some other business.

Bakery business was not at all profitable in those early days. It is quite

surprising to note that although the population was increasing, yet the number

of bakeries remained constant Table 5.3 reveals that on an average, in 151

years from 1740 to 1891, there were only 3 bakeries in existence. During this

period of 15 years, only 5 new bakeries had been established and 2 existing

bakeries closed down their business, mainly due to heavy losses and lack of

sales.

^2^] - Growth and Development of Baket7 Business in India

It was observed that the population had increased during these 151 years by

89,953. On an average the population of the Pune City including Pune Camp

and Khadki cantonment areas during this period was approximately 1,06,691.

As it has already been noted above that the average number of bakeries

during these years was only 3. That means that each bakery was meeting the

requirement of approximately a population of 35,563 people. Though the

number was abnormally quite high under each bakery, yet these bakeries

found it quite difficult to make both ends meet.

Thus new entrants were reluctant to take any chances of running into heavy

losses and some of the existing bakeries were closed down totally and bakers

turned over to some other trade. The main reason for all this was extreme

poverty and illiteracy prevailing at that time. Majority of the people in those

days could not afford to eat bakery made bread. For in once a while it was a

great honour to have bread. People eating bread or bakery Items during those

days were considered to be quite well off in the society. As compared to the

rates today, in those days bread and bakery items were about 300 times

cheaper. Yet the masses could not afford the same, because of lack of flow of

money in the hands of the people poor. It is said and, also been written that in

one paisa in those days one could make purchases of items worth Rs.100

made today even more but not less. This shows how limited was the

purchasing power of the people.

It is further observed from the Table 5.3 that great changes have taken place

on all fronts from 1892 onwards till 1988. It is seen that in these short 96

years around 169 new bakeries were established whereas only 16 bakeries

discontinued their business.

^22 - Growth and Development of Bakery Business in India

From 1892 upto1971, 75 new bakeries were established. Thus an average of

9 new bakeries were established every 10 years. The number of bakeries

closed down during the same period, i.e. 16 bakeries have also been

considered while calculating the average.

From 1972 onwards to1988 i.e. in just 16 years 78 new bakeries were

established and no bakery had discontinued its bakery business. All are in

existence and more and more new entrants are entering this highly profitable

business. As we move towards the 21®‘ century the life style of the people

changed all together, it is observed that the demand for bakery products

increased constantly day by day.

In the January 1989 issued of “Poona Digest" page 35, Suresh Hariharan, in

his cover story / article "Reeling Under Change" has observed the following

point "Doordarshan came to Pune in the mid seventies (1973). Its arrival was

however greeted by black flags. In the grab of a severe bread shortage the

inauguration ceremony by late Mr. Y. B. Chavan was attended by angry

Puneites who shouted, "We want bread, not T.V.”.

Looking at the population growth of the city from 1892 to 1971 it is found that

the population has increased by 8,39,270 as in 1971. W hereas the population

from 1972 to 1988 has increased by 7,90,421. This shows that the population

growth of Pune in the last 80 years from 1892 to 1971 is the more or less

equivalent to the population growth in the recent 16 years i.e. from 1972 to

1988.

The recent 16 years population growth is only short by 48,849 as compared to

1892 to 1971 population growth.

^23 - Growth and Development of Bakery Business in India

This signifies that with modernization and rapid expansion of industries all

around Pune, the population has been increasing rapidly. Increase in

population means more need for fast food. The bakery industry is one of the

industries providing bread, biscuits, cakes and varieties, and other delicacies

to the time bound modern Puneites.

Table indicates that the increase in population is followed by the increase in

the number of bakeries. From 1892 to 1971 considering the load of population

on each bakery it is observed that on an average each bakery was serving a

population of about 12,583. Whereas from 1972 to 1988, it was observed that,

each bakery served on an average a population of around 11,320. The load

on each bakery has reduced approximately by 1,263 since 1972 onwards.

The reason is awareness towards starting bakeries as a commercial

establishment.

The reasons in the increase in the number of bakeries 1972 onwards, was

due to the outbreak of the second war between Pakistan and India in 1971. It

has been a blessing, in disguise for the bakery walas. Table 1.3 reveals that

from 1962 to 1971 only 17 new bakeries were established. On the other hand

around 45 new bakeries were established between 1972 and 1981. The

reasons for this sudden increase during 1971 is that there was an acute

shortage of food grains in the city.

It is seen that the supply of Maida, and Sugar was also limited for the

bakerywalas. The bakeries were provided with only 50 percent of their normal

requirements during the war period. Housewives were finding it difficult to buy

wheat flour and kerosene at higher rates in the market, so they preferred to

eat bakery baked ready bread to chapattis. It was found to be much more

economical.

^24 - Growth and Development of Bakery Business in India

Thus the demand for bread increased by almost 40%. On the other hand the

supply of raw materials quote, of all the bakeries was reduced by 50 percent

by the State Government. This situation compelled the shrewd bakers to buy

Maida bags in the black market at a premium and meet the demand. As they

bought Maida at higher rates they increased the rates of the bakery products

accordingly. It is observed that around 60 percent of the bakeries were buying

their additional Maida requirements from the black market. An interesting

point of observation was that whatever was the production of bread the entire

production was being sold off in time like hot cakes. Some hoteliers and

restaurant owners were paying the bills for their breads in advance to the

bakeries so that their quota was not sold off to others. Long queues were a

common sight in front of all leading bakeries. Even small bakeries had a good

business during this period. The customers were even aware of the time as to

when the bread would be ready for sale and they would all line up before the

bakeries to buy their bread.

Initially if the customer demanded 2 loaves they were just given one loaf i.e.

only 50 percent of the customers demand was fulfilled. But this scheme

turned out to be a failure. Very soon customers were clever in making all the

members of their family stand in the line for buying bread. Thus, the bakeries

started adopting a new revised policy of "first come first serve”. “No Stock”

was a common sign at almost all the bakeries in 1971 a very peculiar

phenomenon indeed:

j 25 - Growth and Development of Bakery Business in India

Moreover, it has been noted that during this period only the sale of bread

increased, whereas, the sale of biscuits and cakes was as dull as before.

Therefore some bakeries even further curtailed the production of cakes and

biscuits and utilized the same maids for preparing bread, which was in great

demand.

In early 1970 "Modern Bread” Bombay, a Govt. Undertaking Bakery began

sale of Modern Bread in Pune too. This was before the outbreak of the war. A

full matador load of bread of 200 gms and 400 gms packing came from

Bombay to Pune daily. Initially, the dealer who had taken up the agency for

selling of the Modern Bread in Pune, appointed some sales boys who would

supply and sell the bread in Pune City on cycles. These sales boys would

move about on cycles with 4 bags of bread hung over their cycles. For the far

off areas, a tempo was used for delivery of Modern Bread. The daily sales

were around 2,000 to 2,500 loaves. Later in Mid 1971, when the war broke

out, and when the local bakeries could not meet the demand of the small

retailers, hoteliers, pav bhajiwalas the demand for Bombay's 'Modern Bread'

increased tremendously. It is learnt that a retailer who formerly used, to hardly

buy 5 breads for sale was now demanding 15 breads. Thus, the salesmen

(boys) would sell their bread quotas in no time and the remaining retailers

would not get their daily supply. In order to meet the increased demand, the

Pune agent increased his demand and started bringing, in daily a full

truckload of ‘Modern Bread’.

Meanwhile the retailers and hoteliers came to know that the agent has

discontinued the door delivery. The principal followed was that those who

wanted bread should come personally to Shaniwarwada ground In the

morning to collect their quota. The truck was emptied here and the bread was

^20 - Growth and Development o f Bakery Business in India

sold to the retailers on the spot. It is rather surprising to note that within an

hour's time the agent would sell off his entire truck load stock of 7000 to 8000

loaves of bread. This sale was entirely made as on cash basis and each

buyer had to make a minimum purchase of 10 loaves or more.

Some retailers took opportunity of this situation and started selling the same

bread on the footpath a few meters away, to the general public at retail prices

and were successful in selling off whatever they had purchased within a few

minutes. Thus, the great demand for bread could be judged and visualized.

This peculiar situation made some clever on lookers think of why not to go in

for bakery business. Thus, by gathering knowledge and after doing some 6

months course in The Food Craft Institute, Pune, people who were Interested

started their own bakeries 1972 onwards. So, this is one of the main cause of

the rapid development of bakery industry in Pune 1972 onwards.

Further, it is reliably learnt that within 3 months time the Modern Bakery of

Bombay discontinued its total supply to Pune City, as they themselves were

unable to meet Bombay city’s demand. Modern Bakery is a Government

Bakery, having its branches in all the 4 Metropolitan cities of India. This

discontinuation made the supply situation of bread in Pune still more critical

and worse. Thus Punites realized the significance of having their own

bakeries and some of them did start new bakeries. As it has been seen that in

1973 when the Pune T. V. Centre was to be inaugurated by late

Y. B. Chavan, the people protested in anger in front of him and asked him to

provide them with bread and not T V. This signifies the acute shortage of

bread and the importance of a bakery. This problem became normal from

1974 onwards.

- Growth and Development of Bakery Business in India

Pune was doing well in this line. It has been observed that in some cities like

Bangalore, Kanpur, Agra each bakery is serving a population of over more

than 20,000 people. However taking into consideration the bakeries in

European cities, the number of bakeries have to be further increased in Pune.

In Europe it has mentioned earlier for every population of 1000 there is one

bakery. Keeping this ratio in mind, then there should have been approximately

1766 bakeries in Pune City. Unfortunately there were only 155 bakeries, a

shortfall of 1611 bakeries. Something must be done in this respect to meet the

future demand for bakery and bakery products, which is increasing

enormously.

^28 - Gfowth and Development of Bakery Business in India