Dragon Biscuit Manufacturers

7/29/2019 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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1214

16

18

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%


9/20

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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15/20

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%


17/20

Threats Fluctuations in the prices of raw materials, transportation costs &

distribution cost due to high wedges and oil prices, Emerging local bakery products.


18/20

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.

Documents

Dragon Biscuit Manufacturers