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Biscuit production plant

Biscuit production plant. Biscuit production plant. Introduction Our client is a private limited company founded in 1993 by a vibrant NRI businessman. In 2001, the company equipped its plant with fully automated machineries.

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Biscuit production plant

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  1. Biscuit production plant

  2. Biscuit production plant Introduction Our client is a private limited company founded in 1993 by a vibrant NRI businessman. In 2001, the company equipped its plant with fully automated machineries. The factory, with its excellent track record of Quality Control System, manufactures biscuits in the most hygienic conditions. Quality standards are monitored in each and every stage of the production and the professional team in the company adheres zealously to these standards. The client has brand recognition and the products are well received by the consumers. The distribution network spreads across South India. The company had bagged bulk export orders from the African countries, K.S.A, Bahrain and Yemen and executed successfully.

  3. Biscuit production plant Product portfolio • Coconut cookies • Salt biscuits • Assorted cream biscuits • Marrie biscuits • Milk biscuits • Thin arrowroot biscuits • Cream biscuits – 4 flavors • Chocolate cream biscuits • Glucose biscuits • Novelty • Butter biscuits • Salt & sweet biscuits • Sugar free biscuits

  4. Biscuit production plant Production • Capacity – 75 MT per day • Technical collaboration - Central Food Technology & Research Institute (CFTRI),Mysore. • Fully automated production line controlled with Programmable Logic Controller (PLC). • Integrated business processes with ERP system • Remote monitoring capability

  5. Biscuit production plant Sales & marketing • 23 years old brand. • Millions of satisfied customers. • Brand awareness. • 150 + distributors. • Well trained sales wing.

  6. Biscuit production plant • Land & building • Land - 2.27 Acre • Building - 39415.84 sq.ft • Compound Wall - 1372 sq.ft • Details of Factory Building • Ground Floor - 2341.00 M2 • First Floor - 534.60 M2 • Second Floor - 117.15 M2 • Subsidiary Building Area - 673.84 M2 (Workshop, Generator Room,   Canteen, Water Tank etc)  

  7. Biscuit production plant Logistics • Railway station – 8 Kms • Port – 106 Kms • National Highway – 1 Km

  8. Biscuit production plant Key Value drivers • 23 years old brand. • Millions of satisfied customers. • Brand awareness. • Goodwill • 150 + distributors. • Wide product portfolio • Quality work force • Facility and equipment condition • All statutory approvals are in place • Technology • Low capital investment • Geographical advantages

  9. Biscuit production plant *Overview – FMCG • FMCG is the fourth largest sector in the Indian economy. • In 2016, revenues for FMCG sector is expected to reach USD 49 billion. • Over 2007-16F, the sector is expected to post CAGR of 11.9% in revenues. • By 2020 the sector is expected to touch USD 103.7 billion, if it maintains current CAGR. • Food & Beverages segment accounts 19% in terms of market share in the sector. • In 2017, biscuits market is estimated to be around USD 4.9 billion. • Accounting for a revenue share of around 60%, urban segment is the largest contributor to the overall revenue generated by the FMCG sector in India and recorded a market size of around USD29.4 billion in 2016. ( * Source: Dabur, Emami,AC Nielsen, TechSci Research )

  10. Biscuit production plant • Semi-urban and rural segments are growing at a rapid pace; and accounted for a revenue share of 40% in the overall revenues recorded by FMCG sector in India. • In the last few years, the FMCG market has grown at a faster pace in rural India compared with urban India. • FMCG products account for 50% of total rural spending. *Notable Trends in FMCG • Consolidation - Indian FMCG companies are consolidating their existing business portfolios which is leading to divestments, mergers and acquisition. • Product innovation - Several companies have started innovating or customizing their existing product portfolios for new consumer segments. In 2015, ’Honitus’ from Dabur performed well because of its unique non drowsy property.

  11. Biscuit production plant • Premiumisation - Despite the slowdown, consumers are willing to buy premium goods at higher prices in the space of convenience, health, and wellness. • Product customisation - Consumers have started demanding customised products specifically tailored to their individual tastes and needs. The trend toward mass-customisation of products is expected to intensify further. • Brand consciousness - Consumers are becoming more brand conscious and prefer lifestyle and premium range products given their increasing disposable income. Companies are required to continuously focus on innovation and customer engagement to strengthen their brand appeal in market • Expanding horizons - A number of companies are exploring the business potential of overseas markets and several regional markets. In 2015, Godrej Consumer Products Ltd acquired 40% stakes in CosmeticaNacional a South America based company. In 2016, Acrysil acquired the additional 13% equity in UK-based "Homestyle Products Limited"

  12. Biscuit production plant • Backward integration - Backward integration is becoming the preferred strategy for increasing profit margins, securing capacity and sources of supply. • Focus on rural market - Companies are now focusing on the rural market segment which is growing at a rapid pace and contributes about 50% to the total FMCG market. Companies like Dabur are trying to increase its penetration in rural areas to generate more revenues from rural India. • Expanding distribution networks - Companies are now focused on improving their distribution networks to expand their reach in rural India. ITC one of the leading FMCG company in India is trying to reduce its lead time by making its distribution channel more efficient and aiming to reach the retail outlets directly from manufacturing facility. • Third-party manufacturing - This approach has helped FMCG companies focus on front-end marketing. Reservation of several items for SSI as well as additional tax incentives have made third party manufacturing a popular route for many big players

  13. Biscuit production plant Conclusion The factory is located in Kerala – a potential consumer market. The acquirer can create value by pursuing operational synergies.

  14. Biscuit production plant

  15. Thank you

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