DR.

GAUR HARI SINGHANIA INSTITUTE OF

MANAGEMENT AND RESEARCH
KANPUR.

A TERM-PAPER
ON
“PROBLEM & PROSPECTS OF BAKERY INDUSTRY
IN KANPUR”

SUBMITTED TO: SUBMITTED BY:

Prof. Sunil Shukla Komal Srivastava

Manika Arora

Mudit Jalan

Munmun Khanna

Ist BATCH- IWI (FULL TIME)

(2008 – 2010)
 ACKNOWLEDGEMENT

In the preparation of this term paper we have received enormous encouragement and
support from various quarters. In particular we would like to give our sincere thanks and
gratitude to Mr. Sunil Shukla for his full support and guidance during the term paper.

We would also like to thank the staff of library and computer lab of Dr. Gaur Hari Singhania
Institute of Management and Research for the help they provided to us.

We wish to thank the editors and publishers concerned, whose writings have provided
an insight into the intricacies of the subject and the bakery industry people who gave their
precious time.

Komal Srivastava

Manika Arora

Mudit Jalan

Munmun Khanna
 INDEX

1. INTRODUCTION

2. BAKERIES:

• BHARAT BAKERS AND CONFECTIONERS

• KRISHNA BAKERY

• KALYAN G

• ADARSH BAKERY

• NIHARIKA BAKERY

• MODEL BAKERY

3. BIBLIOGRPHY
 INTRODUCTION

The bakery industry in India is probably the largest among the processed food industries,
production of which has been increasing steadily in the country. The two major bakery industries
being biscuit and bread account for about 84% of the total bakery products. The annual
production of the bakery products which include bread, biscuits, pastries, cakes, buns, rusk, etc.
most of which are in the unorganized sector, is estimated to be in excess of 30 lakh tons. The
bakery industry in India still remains largely unorganized and dominated by the small bakers.
Currently, there are an estimated two million bakers across the country engaged in the
production of bread, biscuits and other products. The Indian bakery market is still in the early
stage of its development. Bakery items are not very high on the list of priorities for the masses.
Though the public awareness of the industry is nearly 100%, its penetration in rural areas is 15-
20% and in urban areas 60%.

India’s baking industry comprises mainly of three segments- bread, biscuits and cakes. As per
the estimates of Ministry of Food Processing Industries (FPI) , the markets for bread, biscuits
and cakes are estimated around at 1.5 million tons, 1 million tons and 0.5 million tons
respectively. During the past few years, bakery products have shown positive growth in volume
and customer base. But this growth has mainly come from bread and biscuit segment. While the
bread types are still limited , biscuits, which have been popular for very long now, provide a
wide range of variety both in terms of quality and taste. Bread and biscuits have grown largely
because these products are manufactured by the unorganized sector (75 percent) and by nature
the product is perishable, and only the local manufacturers hold a sizeable chunk of the market as
they were reserved for the small-scale industry earlier. Also, bread to some extent is consumed
as a food supplement in the urban areas. Cakes and pastries do not have a growth rate like
biscuits and bread because the volume is growing only in urban areas. Bread and biscuits form
the core of the bakery industry in India.

Bread
The bread market has a business volume of 1.5 million tonnes. The bread industry has a
production of approximately 27 lakh tonnes. This segment is characterized by high level of
fragmentation, and high margin.
The major factors for growth in this segment are:

• Brand loyalty
• Volumes
• Strong distribution networks

The major challenge faced by the organized bread sector at present is low margins of profit. Hike
in the prices of major raw materials like sugar, vegetable oil, milk, and wheat flour has been
accounted for the industry's low margins of profit.
The major players in the bread industry that holds about 90% of the market share are:

• Britannia
• Modern Industries Ltd.

Biscuits

The biscuit market has a total production volume of 1.1 million tonnes. The growth drivers for
the biscuit industry are focused advertising, urban market, and new launches.
The major players in the biscuit segment are:

• Britannia
• Parle
• Bakeman
• ITC Foods Ltd.
• Surya Food and Agro Pvt. Ltd.
• HLL
 BHARAT BAKERS AND CONFECTIONERS
(BREADS)

FOUNDER- Nitin Tandon

BACKGROUND- He is an entrepreneur who had started his business in 2004. He had an

idea of opening his bakery as he has a family background where his grandfather Mr.
M.N.Tandon was in the business of hotels as well as he had a passion towards cooking. Nitin
Tandon did his schooling from Ajmer and then did a professional course of Hotel Management
from ITC college in Manipal.

After completing his hotel management course he got an opportunity to work with ITC, Oberoi’s
in Calcutta. After gaining experience he opened a hotel Leela Palace in Bangalore with his 15
friends. While working he got an offer to work with a company in Ireland. He accepted the offer
and worked their for 2 years as the Manager of the bakery.

He came back to India in Kanpur and started his own bakery in 2004. He has his bakery at
Chunniganj and outlet at Swaroop Nagar. It was even opened at Kakadeo but then he closed it as
he observed that people perception of a glass door and air conditioned outlet made them stop
from coming there as they thought prices would be high.

PRODUCTS- He keeps all the variety of bakery products. He deals in:

• Breads

• Biscuits

• Namkeen

• Rusk,

• Cakes,
 • Pastry.

FOCUS- There main focus is towards customer satisfaction and quality. They believe that the
customer should be satisfied even if they have to compromise on the price factor. There focus is
even towards maintaining hygiene standards and good stuff.

SUPPLY- They supply their products to the famous brands. They supply cakes to Barista at
Lucknow , Big Bazaar and Café Coffee Day.

PROBLEMS AND PROSPECTS- He finds that the problems here in Kanpur are that the
people are price conscious and they lack in spending money. It is due to lack of knowledge and
potential. There is lack of appreciation for technology and price factor consideration. They
believe in latest technologies to give them better product. They even have no problems in
showing their kitchens to others or for inspection. They find that the mind frame of the customer
should be changed according to the changing environment. Various research teams come from
Barista, CCD, etc and check their kitchens. they have a 7 feet tiling in their kitchens.

Prospects which he finds for his business is that he see his business 5 years from now at a higher
level where he would have more outlets, new brands, new products with better quality.

CONTACT NO: 9839503950

 KRISHNA BAKERY

FOUNDER- Shree Sita Ram Arora

BACKGROUND- The Business was started by his grandfather Mr.sita Ram Arora before 22 years.
Now it is continued by his grandson. Mr. sita Ram had started his business with a single floor shop. Now
they have 3 floors in their shop.

They manufacture every bakery products like breads, biscuits, brown cakes, cakes etc. besides it they also
make namkeen, kulcha, samosa, paties etc.

At present they are running only one shop at Gumti. They do not supply their products to other stores.
They sell their products only from their own shop.

PRODUCTS-
♦ Bread
♦ Biscuits
♦ Cakes
♦ Brown cakes
♦ Kulche
♦ Samosa
♦ Paties

FOCUS- Their main focus is on selling the product not quality product. It doesn’t mean that they do
not care for the quality. Of course they have certain standard of quality but in comparison to others their
focus on quality is little less.
PROBLEMS AND PROSPECTS- Since they have only one shop so they don’t have to face
any problem regarding management of the shop. They are also satisfied with the sale of the product as
they told us that whatever they produce in a day, they are able to sell it that day only. So they do not face
any problem regarding shelf life of the product.

FUTURE PLAN- As they are satisfied with their present situation so they are not planning for any
expansion but in future they want to expand it definitely.

CONTACT NO: 9307674596

 KALYAN G

FOUNDER- Mr. Gurbat Shah

BACKGROUND- The business was started by his grandfather, 60 years ago. He started his
business with a small shop at Govind Nagar. Now this shop is run by his grandson.

At present they have 2 bakeries, one at Govind Nagar and another at Garadian Purwa where they
manufacture their products. They have 4 outlets to sell their products-Vijay nagar, Saket Nagar, Kidwai
Nagar, and Gumti. There are separate managers at every shop to manage the work.

They do not supply their products to other companies. They sell their products from their own shop.

PRODUCTS-
♦ Breads
♦ Biscuits
♦ Cakes
♦ Pastries
♦ Brown cakes
♦ Namkeen

FOCUS- Their main focus is on sales and customer satisfaction. They try their best to maintain their
product quality and according to customer’s demand they also make changes to their products. As profit
is a common objective which every business wants so therefore there focus is on increased sales.
PROBLEMS AND PROSPECTS- Their main problem is the arrangement of shelf life of the
products. Some times it happens that whatever they produce they are not able to sell it that day only so
they have to protect their products. Sometimes products are spoiled because some products have 2 days
life some have 3-4 days life so if the products are not sold within 2-3 days it was spoiled. So they have to
maintain their production according to it.

FUTURE PLAN- At present they are satisfied with their performance. Already they have four
outlets which are running quite well. So currently they are not planning any expansion.

CONTACT NO: 9935504982

 ADARSH BAKERY

FOUNDER- Mahendra Kumar Narad

BACKGROUND- His business was started in 1968 by his father. He took over the business
in 1973. He did not do any professional course for this. He continued his fathers business and
gave it new heights. He started his business with an amount of 25000/- to 30000/-. He mainly
focused on the expansion of business through emphasizing on regularity. They worked for all the
days without any leave. For expanding they even stressed on quality and demand. Whatever the
customer demanded they should be able to provide it on time and with quality.

When they started their business they started with 3-4 varieties of biscuits, namkeen and cakes.
They have their outlets at Govind Nagar, IIT, Gumti, Naveen Market and Dada Nagar. Their
manufacturing units are at Govind Nagar, Gumti and Dada Nagar which are around 4 square
feet. They find that by having their manufacturing units with the outlets will help them in
maintaining freshness and providing quality products.

PRODUCTS-
♦ Breads
♦ Biscuits
♦ Cakes
♦ Pastries
♦ Namkeen

FOCUS- They mainly focus on regularity and quality. They believe in hard work. They focus
on providing the goods on demand and on time. Customer grievances are also considered and
they try to improve them. They focus on management.
SUPPLY- They do not supply their products to other markets as they feel that this makes a
differentiation from others products.

PROBLEMS AND PROSPECTS- They found that main problem while starting a
business is capital required as the shop which they are having is of rent and not their own and
even creating differentiation among other competitors. They find that managing everything is
really important than having it.

FUTURE PLAN- There future plan is not expanding of units but maintaining the same as are
present. They are happy with the kind of business they are running and they are focusing on
managing it rather than expanding it.

CONTACT NO: 9839210299

 BIBLIOGRAPHY

BOOK:
• JOURNAL OF ICFAI READER

BAKERIES VISITED:
• BHARAT BAKERS AND CONFECTIONARIES

• KALYAN G

• KRISHNA BAKERY

• ADARSH BAKERY

• NIHARIKA BAKERS

• MODEL BAKERY

SITE:
WWW.GOOGLE.COM