Market size
The per capita consumption of bakery products in India remains at 1-2 kg per year, which is
still much lower than the developed countries where it ranges between 15 and 50 kg per year.
The size of the market for bakery ingredients is estimated to be about ₹3,000 crore in India
and growing.
at 12-15 per cent. in other developed countries, which points out a high potential for the
industry as against the current scenario. Units are dispersed unevenly across States. It is
largely found in States of Maharashtra, West Bengal, Andhra Pradesh, Karnataka and Uttar
Pradesh. Industrially advanced States like Maharashtra and West Bengal have very large
number of bakery units.
East and North The regions consuming the highest amount of biscuits and cookies in the
country are India. Biscuit consumption rates are at the highest rates in the two most
industrially developed states in Maharashtra and West Bengal. The main four companies that
dominate the biscuit and cookie market are Parle Products, Britannia, ITC, and Surya Food
and A gros, where the two main companies Britannia and Parle together occupy a 61%
market share.
The Biscuits are becoming very popular in rural areas also. Nearly 55% of biscuits are
consumed by the rural sector. The higher consumption of biscuits in rural area could be
attributed to its position as a snack, longer shelf life and better taste that is liked by different
cross sections of population. There is no marketing problem as every shop is a market for
biscuits.
The biscuits and cookies industry in India accounts for nearly 72% of sales in the Indian
market for baked bakery. Compared with other baked FMCG products, the penetration of
cookies and biscuits is very high in both urban and rural areas as they are affordable and
cholesterol-free. India has emerged as the largest consuming nation of biscuits in the world as
of now will be worth nearly USD 4.65 billion by FY 2020. The region holds a competitive
advantage in manufacturing, with abundant supply of primary ingredients that support
industry growth in the region.
Bakery products are still the cheapest in the processed ready to eat products in the country.
The production of Bakery products has increased from 5.19 lakh tonnes in 1975 to 18.95 lakh
tonnes in 1990 recording four-fold increase in 15 years' time. Among bakery products,
biscuits occupy an important place because they contribute over 33% of the total products
processed. More than 79% of the biscuits are produced by small scale sector comprising
factory and non-factory units. The growth rate for bakery products is calculated at an average
of 9.8% per annum. The demand for bakery products is going to rise in the future. This
estimated growth rate of 9.8% is on the lower side considering the present day.
potentiality of bakery products, especially in rural areas where about 75% of the population
lives. Hence, use of soya is beneficial to consumers for nutritional improvement and to
entrepreneur for earning more profit. The protein content of biscuits varies from 7-8 percent
and supplementation with 30 percent soya flour adds to the protein content by 50
Percent. Promising trends in bakery product consumption by lower and middle income
groups reveal vast opportunities for considering nutritional enrichment of bakery products.
Protein-rich biscuits can be a tool to provide additional nutrition at affordable cost.
Operations Strategy for Our Cookie Manufacturing Plant
As we establish our cookie manufacturing plant, our operations strategy is designed to ensure
efficiency, quality, and adaptability. Here’s how we plan to implement each key element:
1. Lean Manufacturing Principles
Minimize Waste: We closely monitor our ingredient usage to reduce excess flour and
sugar. For example, if we notice consistent overproduction of a specific flavor, we’ll
adjust our batch sizes accordingly.
Continuous Improvement: We hold weekly team meetings to discuss and gather
suggestions from all staff on how to streamline our production processes, such as
optimizing mixing times or reducing baking durations.
2. Batch Production
Small Batches: We start our production with batches of 1,000 cookies, allowing us to
quickly adjust recipes based on customer feedback and trends.
Standard Recipes: Our chocolate chip cookie recipe is standardized to ensure
consistency, with variations introduced for seasonal offerings, such as pumpkin spice
for fall.
3. Flexible Equipment
Modular Equipment: We invest in a versatile mixer that can handle various dough
types and is easy to clean, enabling quick transitions between different cookie
varieties.
Multi-Function Oven: Our baking process utilizes an oven that allows for
adjustments in baking time and temperature, accommodating different cookie recipes.
4. Quality Control
In-House Testing: We have established a small lab for testing dough consistency and
cookie texture before moving to large-scale production, ensuring high quality.
Feedback Loops: We implement a simple feedback system for customers to share
their thoughts on new flavors or packaging, allowing us to make informed
adjustments.
5. Supply Chain Management
Local Sourcing: We partner with local farmers to source fresh eggs and dairy
products, reducing transportation costs and enhancing ingredient quality.
Strong Relationships: We prioritize building strong relationships with our suppliers
through regular communication and negotiations to ensure timely deliveries and
favorable pricing.
6. Simple Inventory Management
Just-In-Time (JIT): We order flour and sugar just before they are needed in
production, reducing storage costs and minimizing waste.
Basic Tracking Systems: We utilize a simple inventory management software to keep
track of ingredient levels and manage reordering efficiently.
7. Training and Development
Cross-Training Staff: Our bakers are trained to handle multiple roles, including
packaging, allowing for flexibility during peak production times.
Continuous Learning: We provide access to online courses and workshops on food
safety and production techniques, keeping our team informed and skilled.
8. Effective Marketing and Sales Strategy
Targeted Marketing: Our marketing campaigns focus on health-conscious
consumers, featuring our gluten-free and organic cookie options prominently.
Online Presence: We have launched a user-friendly website with an e-commerce
platform for direct sales, alongside engaging customers on social media with recipe
ideas and baking tips.
9. Sustainability Practices
Eco-Friendly Packaging: We utilize biodegradable bags for our cookie packaging to
attract environmentally aware customers.
Waste Management: We implement a composting system for dough scraps and
packaging waste, minimizing our environmental impact.
10. Scalability
Plan for Growth: Our factory layout is designed with future expansion in mind,
providing space for additional equipment and production lines as demand increases.
MANUFACTURING PROCESS
First of all, as a raw material bakery shortening is kept at a temperature of 8 degree Celsius
to 10 D* Celsius to Colden its raw material, so that there will be no lumps issue arise at the
time of mixing.
After that sugar is grinded with the help of Sugar grinder.
Then mix well the grinded sugar and bakery shortening together & for mixing use filtered
water according to the season type.
After preparation of mixture add refined wheat flour and flavours as required in it.
Then keep ready mixture near dropping machine, where cookies are designed according to
size, type by the operator.
Trays are then loaded to the back of machine, in which cookies start coming on the
conveyor drop by drop.
After that these trays are loaded on trolley and cookies are kept in the open for baking
process at 180 D* Celsius for 25 minutes. After baking process cookies are send to
packaging department.
