Synergy School of Business Research for Rs. 5 vermicelli market. Bambino’s weaknesses, opportunity in this market what Strategies should be used to improve sales. ” (Bambino agro industries ltd, Secunderabad) A Project Report submitted to the SYNERGY SCHOOL OF BUSINESS in partial fulfillment for the Award of the Degree of Post Graduate Diploma in Business Management. By G. Sriphani Reg. No:01012A42 Under the esteemed guidance of Prof. Parveen Sultana, CA,ICWA,MBA,M. Com SYNERGY SCHOOL OF BUSINESS MUHARIPALLY, NEAR BY SHAMIRPET
MEDCHAL, RANGA REDDY DECLARATION I am SRIPHANI, hereby declare that the project titled “Research for Rs. 5 vermicelli market. Bambino’s weaknesses, opportunity in this market what Strategies should be used to improve sales. ” done at BAMBINO Agro Industries, Secunderabad is submitted in partial fulfillment of the requirement of PGDM Hyderabad, is my original work and is not for the award of any other degree, diploma, fellowship or other similar titles or prizes. G. SRIPHANI ACKNOWLEDGEMENT This summer project is a golden opportunity for learning and self-development.
I consider myself lucky and honored to have so many wonderful people led me through in completion of this project. It helped me in understanding the Real Market beyond the practical and gained Practical knowledge. My great full thanks to Ms. Vijyetha Varma(Marketing Manager),who in spite of being extraordinarily busy with his duties, took time out to here, guide me and kept on the correct path. I choose this moment to acknowledge his contributions gratefully. A humble thank you to PROF. PARVEEN SULTANA, for guiding and monitored my progress in the project and whose patience I have probably tested to the limit.
They were also involved in entire process, shared his knowledge, and encouraged me to think. Thank you, dear professors. I would also like to thank Dr. NRK REDDY for his efforts and help provided me to get such an excellent opportunity. CERTIFICATE FROM COLLEGE Date: To __________________________ __________________________ __________________________ Sub: Request for Summer Internship Programme. —— Dear Sir/Madam, I take this opportunity to introduce Synergy School of Business, a flagship institution of the prestigious Synergy educational society.
SSB has been conducting two year full time Post Graduate Programme in Management, approved by the All India Council for Technical Education, Ministry of HRD and Govt. of India. As a part of the academic requirement, the students of the programme need to undergo eight weeks of Summer Internship in the area of Business Management in any of the reputed organization like yours and prepare a structured report. I would solicit your cooperation in this regard by providing an opportunity to our student Ms. /Mr. _________________________________to undergo Summer Internship Program in your esteemed organization.
I can assure you that given an opportunity, he will give his/her best with all the commitment and sincerity. Look forward for a positive response from you. Thanking you, With Warm Regards (Dr. NRK. REDDY) CERTIFICATE FROM COMPANY CERTIFICATE FROM GUIDE (COLLEGE) Date: Sub: Request for Summer Internship Programme. —— Dear Sir/Madam, I take this opportunity to introduce Synergy School of Business, a flagship institution of the prestigious Synergy educational society. SSB has been conducting two year full time Post Graduate Programme in Management, approved by the All India Council for Technical Education, Ministry of HRD and Govt. f India. As a part of the academic requirement, the students of the programme need to undergo eight weeks of Summer Internship in the area of Business Management in any of the reputed organization like yours and prepare a structured report. I would solicit your cooperation in this regard by providing an opportunity to our student Ms. /Mr. _________________________________to undergo Summer Internship Program in your esteemed organization. I can assure you that given an opportunity, s(he) will give his/her best with all the commitment and sincerity. Look forward for a positive response from you.
Thanking you, With Warm Regards (Prof. Parveen Sultana) Coordinator Table of Contents Chapter I: Introduction * Introduction…………………………………………….. 10 * Objectives of the study………………………………. …11 * Scope………………………………………………… …. 11 * Limitations………………………………………………11 * Research Methodology Sampling method…………….. 12 Chapter II: Industry profile……………………………………………………………13 Chapter III: Company Profile…………………………………………………………40 Chapter IV: Data Analysis and Interpretations………………………………47 Chapter V: Findings and Suggestions, conclusion…………………………. 52 Chapter VI: Bibliography and References, Questionnaire……………… 55
CHAPTER-1 INTRODUCTION In the field of Marketing, Research is the field concerned with organizational, competitor, industrial activity aimed at bettering the performance of organization and to know the behaviors of the customer and to find out at what phase changes are going in the industry and organization. OBJECTIVES OF THE STUDY To study: * The market size of Rs. 5 Vermicelli of Bambino * Opportunity for Bambino to gain the Vermicelli Market Share. * Weakness of Bambino in vermicelli market. SCOPE OF THE STUDY * To understand the Nature of market for Rs. 5 vermicelli. To study the causes effecting the sales of Rs. 5 vermicelli. * My study is limited only to limited retailers and kirana outlets. LIMITATIONS OF THE STUDY * The research is conducted by taking the opinions of the retailers. * The research is conducted at the convenient stores. * The sample size is limited to 50 samples. The time constraint is a very big limitation. * The research is limited to the regions of Hyderabad, Secunderabad, District of Medak and Karimnagar. RESEARCH METHODOLOGY Research Methodology has many dimensions and research methods do constitute a part of the research methodology.
Research methodology is a way to systematically solve the research problem. It may be understood as the science of studying how research is done scientifically. The study of research methodology gives necessary training in gathering participation in the field works when required and also training in technique for the collection of appropriate data on particular problem while in the use of questionnaires and controlled experimentation and in recording evidence, sorting it out and interpreting it. Knowledge of research methodology is helpful in various fields. Research methodology plays a key role in project work.
It consists of series of sections or steps necessary to effectively carry at research and desired sequencing of these steps. DATA COLLECTION METHODS:- Data is collected from primary data. * Primary Data Sources: The data is collected through clustered Questionnaire. Method of survey: * Trade Based Survey Trade Based survey: The survey was conducted based on the clustered instrument such as Questionnaire through Direct contact with Traders and Shopkeepers. The questionnaire consists of two sections to study whether the shopkeeper is selling Rs. 5 Vermicelli or not. The questionnaire consists of 15 questions to study the sales of Rs. vermicelli, Brands available,amount of vermicelli selling in a shop, fast moving brand, packing size ofd different brands. The questionnaire also includes questions to know the causes why the sales of Rs. 5 vermicelli is not good and questionnaire also contains open ended questions to get recommendations from the shopkeepers and Traders. CHAPTER-2 INDUSTRY PROFILE | The food processing industry in India is a sunrise sector that has gained prominence in recent years. Availability of raw materials, changing lifestyles and relaxation in policies has given a considerable push to the industry’s growth.
This sector is among the few that serves as a vital link between the agriculture and industrial segments of the economy. Strengthening this link is of critical importance to improve the value of agricultural produce; ensure remunerative prices to farmers and at the same time create favourable demand for Indian agricultural products in the world market. A thrust to the food processing sector implies significant development of the agriculture sector and ensures value addition to it. The Indian food processing industry holds tremendous potential to grow, considering the still nascent levels of processing at present. Though
India’s agricultural production base is reasonably strong, wastage of agricultural produce is sizeable. Processing of fruits and vegetables is a low 2%, around 35% in milk, 21% in meat and 6% in poultry products. By international comparison, these levels are significantly low – processing of agriculture produce is around 40% in China, 30% in Thailand, 70% in Brazil, 78% in the Philippines and 80% in Malaysia. Value addition to agriculture produce in India is just 20%, wastage is estimated to be valued at around US$ 13 bn (Rs 580 bn). India, with an arable land of 184 mn hectares is, the highest producer of milk in the world at 90 mn tonnes p. . , second largest producer of fruits & vegetables (150 mn tonnes), third largest producer of foodgrains and fish and has the largest livestock population. Considering the wide-ranging and large raw material base that the country offers, along with a consumer base of over one billion people, the industry holds tremendous opportunities for large investments. Ministry of Food Processing Industries The Ministry was set up in 1998 and the industry segments that come under its purview are: * Fruit & Vegetable processing (including freezing and dehydration) * Grain Processing Processing of Fish (including canning and freezing) * Processing and refrigeration of certain agricultural products, dairy products, poultry and eggs, meat and meat products * Industries related to bread, oilseeds, meals (edible), breakfast foods, biscuits, confectionery, malt extract, protein isolate, high protein food, weaning food and extruded food products (including other ready-to-eat foods) * Beer, including non-alcoholic beer * Alcoholic drinks from non-molasses base * Aerated water and soft drinks * Specialised packaging for food processing industries.
The Ministry of Food Processing Industries, GoI, has estimated the size of the Indian food market at US$ 191 bn (Rs 8,600 bn). The processed food market is projected to be over US$ 100 bn, of which the primarily processed food market accounts for 60%, while the value-added processed food market is around 40%. The average annual growth of the food processing industry has been around 8% between FY01-FY06. The segments that have driven the growth are the beverages and meat & meat products and processed fish sectors. The food processing industry in India has a share of 1. % in the total GDP of the country, and as part of total manufacturing accounts for 9%. India’s share in world trade in respect of processed food is about 1. 6%. An extensive and highly fragmented industry, the food processing sector largely comprises of the following sub-segments: fruits & vegetables, milk and milk products, beer & alcoholic beverages, meat and poultry, marine products, grain processing, packaged/convenience food and packaged drinks. A large number of players in this industry are small sized companies, and are largely concentrated in the unorganised segment.
This segment accounts for more than 70% of the output in volume terms and 50% in value terms. However, though the organized sector is comparatively small, it is growing at a much faster pace. Source: D&B Research Structure of the Indian Food Processing Industry Food Processing Units in Organised Sector (numbers) Source: Ministry of Food Processing Industries, Annual Report 2003-04 Industry Sub-Segments Fruits & Vegetables The installed capacity of fruits and vegetables processing industry has increased from 1. 1 mn tonnes in January 1993 to 2 mn tonnes in 2000 and further to 2. mn tonnes in 2006. The processing of fruits and vegetables is estimated to be around 2. 2% of the total production in the country. The prominent processed items in this segment are fruit pulps and juices, fruit based ready-to-serve beverages, canned fruits and vegetables, jams, squashes, pickles, chutneys and dehydrated vegetables. Some recent products introduced in this segment include vegetable curries in retortable pouches, canned mushroom and mushroom products, dried fruits and vegetables and fruit juice concentrates.
The fruits and vegetable processing industry is highly decentralized, and a large number of units are in the cottage / household and small scale sector, having small capacities of up to 250 tonnes/annum. Since 2000, the industry has seen significant growth in ready-to-serve beverages, fruit juices and pulps, dehydrated and frozen fruits and vegetable products, pickles, processed mushrooms and curried vegetables, and units engaged in these segments are export oriented. Exports of Processed Fruits & Vegetables Quantity in MT, Value in Rs Mn) Source: Ministry of Food Processing Industries, Annual Report 2005-06 The domestic industry is yet to change its preference in favour of processed foods. Consumption of value added fruits and vegetables is low compared to the primary processed foods, and fresh fruits and vegetables. The inclination towards processed foods is mostly visible in urban centers. A significant thrust can be given to this sector by strengthening linkages between farmers and processors.
The weak linkage between farmers and markets, as well as, farmers and processing companies has brought about inefficiencies in the supply chain and encouraged the involvement of middlemen. The Government of India’s National Agriculture Policy envisages the participation of the private sector through contract farming and land leasing arrangements which not only assures supply of raw material for processing units, but also a market for agriculture produce, accelerate technology transfer and capital inflow into the agriculture sector.
Contract farming in wheat practiced in Madhya Pradesh by Hindustan Lever Ltd and by Pepsi Foods Ltd in Punjab for tomatoes, foodgrains, spices and oilseeds are some successful examples of contract farming in India, which changed the farming landscape and promoted the cultivation of processable variety of farm produce. Such innovative practices will power the fruits, vegetables and grain processing industry. Apart from such initiatives, fiscal incentives and tax concessions will also give impetus to the sector.
The five-year 100% tax exemption announced by the Government in FY05 was one such incentive for upcoming fruits and vegetable processing units. Milk and Milk Products India has one of the highest livestock population in the world, accounting for 50% of the buffaloes and 20% of the world’s cattle population, most of which are milch cows and milch buffaloes. India’s dairy industry is considered as one of the most successful development programmes in the post-Independence era. As of 2005-06 total milk production in the country was over 90 mn tonnes with a per capita availability of 229 gms/day.
The industry has been recording an annual growth of 4% during the period 1993-2005, which is almost 3 times the average growth rate of the dairy industry in the world. Milk processing in India is around 35%, (with the organized dairy industry accounting for 13% of the milk produced) while the rest of the milk is either consumed at farm level, or sold as fresh, non-pasteurized milk through unorganised channels. Dairy Cooperatives account for the major share of processed liquid milk marketed in the India.
Milk is processed and marketed by 170 Milk Producers’ Cooperative Unions, which federate into 15 State Cooperative Milk Marketing Federations. Over the years, several brands have been created by cooperatives like Amul (GCMMF), Vijaya (AP), Verka (Punjab), Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur). The milk surplus states in India are Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. The manufacturing of milk products is concentrated in these milk surplus States.
As per data released by the Ministry of Food Processing Industries, exports of dairy products have been growing at the rate of 25% p. a. in quantity terms and 28% in value terms since 2001. Significant investment opportunities exist for the manufacturing of value-added milk products like milk powder, packaged milk, butter, ghee, cheese and ready-to-drink milk products. Meat & Poultry Since 1995, production of meat & meat products has been steadily growing at a rate of 4% p. a.. Currently, the processing level of buffalo meat is estimated at 21%, poultry 6% and marine products 8%.
Only about 1% of the total meat is converted into value added products like sausages, ham, bacon, kababs, meat balls, etc. Production of meat is governed under local by-laws as slaughtering is a state subject. Processing of meat is licensed under the Meat Food Products Order, 1973. In 2003 India had a livestock population of 470 mn that included 205 mn cattle and 90 mn buffaloes. The country produces about 450 mn broilers and 30 billion eggs annually. Cattle, buffaloes, sheep and goat, pigs and poultry are the types of animals which are generally used for production of meat.
Slaughter rate for cattle as a whole is 20%, for buffaloes it is 41%, pigs 99%, sheep 30% and 40% for goats. The country has 3,600 slaughter houses, 9 modern abattoirs and 171 meat processing units licensed under the meat products order. The poultry industry is among the faster growing sectors rising at a rate of 8% per year. Vertical integration of poultry production and marketing has lowered costs of production, marketing margins and consumer prices of poultry meat. There are eight integrated poultry processing units in the country, which hold a significant share in the industry.
Exports of Meat and Meat Products (Quantity in MT, Value in Rs Mn) Source: Ministry of Food Processing Industries, Annual Report 2005-06 Meat exports have been growing at close to 30% p. a. in quantity terms, largely driven by poultry, buffalo, sheep and goat meat. Exports of value added meat products are insignificant. In the domestic market, the growing number of fast food outlets in the country has had a significant impact on the meat processing industry. Marine Products India is the third largest fish producer in the world and ranks second in inland fish production.
India’s vast potential for fishes, from both inland and marine resources, is supplemented by the 8,000 km coastline, 3 mn hectares of reservoirs, 1. 4 mn hectares of brackish water, 50,600 sq km of continental shelf area and 2. 2 mn sq km of exclusive economic zone. Processing of marine produce into canned and frozen forms is carried out almost entirely for the export market. Infrastructure facilities for processing of marine products include 372 freezing units with a daily processing capacity of 10,320 tonnes and 504 frozen storage facilities with a capacity of 138,229. 10 tonnes.
Apart from these, there are 11 surimi units, 473 pre-processing centres and 236 other storages. Processed fish products for export include conventional block frozen products, individual quick frozen products (IQF), minced fish products like fish sausage, cakes, cutlets, pastes, surimi, texturised products and dry fish etc. Exports of marine products have been erratic and on a declining trend which can be owed to the adverse market conditions prevailing in the EU and US markets. The anti-dumping procedure initiated by the US Government has affected India’s shrimp exports to the US.
Fish Production & Exports Source: Ministry of Food Processing Industries, Annual Report 2005-06 Grain Processing Grain processing includes milling of rice, wheat and pulses. As of 1999-00, there were over 91,000 rice hullers and 2,60,000 small flour mills engaged in primary milling. Also, there are about 43,000 modernised rice mills/huller-cum-shellers. Around 820 large flour mills in the country convert about 10. 5 mn tonnes of wheat into wheat products. Also there are 10,000 pulse mills milling about 75% of pulse production of 14 mn tonnes in the country.
Primary milling of grains is the most important activity in the grain processing segment of the industry. However, primary milling adds little to shelf life, wastage control and value addition. Around 65% of rice production is milled, mostly in modern rice mills. However, the sheller-cum-huller mills operating give low recovery. Wheat is processed for flour, refined wheat flour, semolina and grits. Apart from the 820 large flour mills, there are over 3 lakh small units operating in this segment in the unorganised sector.
Dal milling is the third largest in the grain processing industry, and has approximately 11,000 mechanised mills in the organised segment. Oilseed processing is another major segment, an activity largely concentrated in the cottage industry. According to estimates, there are approximately 2. 5 lakh ghanis and kolus (animal operated oil expellers), 50,000 mechanical oil expellers, 15,500 oil mills, 725 solvent extraction plants, 300 oil refineries and over 175 hydrogenated vegetable oil plants. Indian rice, especially Basmati rice, has gained international recognition, and is a premium export product.
Branded grains as well as grain processing is now gaining popularity. Beer & Alcoholic Beverages India is the third largest market for alcoholic beverages in the world, and the domestic market is largely dominated by United Breweries, Mohan Meakins and Radico Khaitan. The demand for beer and spirits is estimated to be around 373 mn cases per year. There are 12 joint venture companies having a licensed capacity of 33,919 kilo-litres p. a. for production of grain based alcoholic beverages. Around 56 units are manufacturing beer under license from the Government of India.
The two segments in the liquor segment, country liquor and Indian Made Foreign Liquor, both cater to different sections of society. The former is consumed in r ural areas and by low-income groups, while the latter is consumed by the middle and high income groups. There are approximately 23,000 licensed liquor outlets in India, with another 10,000 outlets in the form of bars and restaurants. Regulations in this sector differ state-wise. In Tamil Nadu, Kerala and Andhra Pradesh, the distribution is controlled by the state government, and any change XVIII in the ruling party has a direct impact on the availability of alcohol.
In Uttar Pradesh, liquor distribution licenses were earlier based on bidding, and the highest bidder was given the license. This has not changed to the lottery allotment system. Gujarat Government has banned the sale and distribution of liquor in the state. The wine industry in India has come into prominence lately and has been receiving support from the Government as well. The market for this industry has been estimated to be growing at around 25% annually. Maharashtra has emerged as an important state for the manufacture of wines.
There are more than 35 wineries in Maharashtra, and around 1,500 acres of grapes are under cultivation for wine production in the state. The Maharashtra Government has declared wine-making business as small-scale industry and has also offered excise concessions. Consumer Foods This segment includes packaged foods, aerated soft drinks, packaged drinking water and alcoholic beverages. Packaged / Convenience Foods Consumer food industry mainly consists of ready-to-eat and ready-to-cook products, chips, salted snacks, pasta products, cocoa based products, bakery products, biscuits, soft drinks, etc.
There are around 60,000 bakeries, 20,000 traditional food units and several pasta food units. The bakery industry is among the few processed food segments whose production has been increasing steadily in the country in the last couple of years. Bakery products include bread, biscuits, pastries, cakes, buns, rusk etc. This activity is mostly concentrated in the unorganized sector. Bread and biscuits constitute the largest segment of consumer foods with an annual production is around 4. 00 mn tonnes. Bread manufacturing is reserved for the small scale sector.
Out of the total production of bread, 40% is produced in the organized sector and the remaining 60% in the unorganised sector. Similarly, in the production of biscuits, share of unorganized sector is about 80%. Cocoa Products There are 20 units engaged in the manufacture of cocoa products like chocolates, drinking chocolate, cocoa butter substitutes, cocoa based malted milk foods with an annual production of approximately 34,000 tonnes. Soft drinks This segment is the 3rd largest in the packaged foods industry, after packed tea and packed biscuits.
The aerated soft drinks industry in India comprises over 100 plants and provides direct and indirect employment to over 125,000 employees. It has attracted one of the highest foreign direct investments in the country. Its position is strengthened by strong forward and backward linkages with glass, plastic, refrigeration, sugar and the transportation industry. Penetration levels of aerated soft drinks in India are quite low compared to other developing and developed markets, which is indicative of the potential the segment holds for further growth.
Exports of Consumer Foods (Quantity in MT, Value in Rs Mn) Source: Ministry of Food Processing Industries, Annual Report 2005-06 Constraints & Drivers of Growth Growing urbanization, increasing disposable income, emergence of organised food retail, changing lifestyles and food consumption patterns are the key factors driving growth for processed foods in India. These are post-liberalisation trends that have given an impetus to the sector. Consumption patterns in India have been undergoing a visible shift.
Earlier, the share of cereal products was the highest, followed by milk & milk products, vegetables, edible oil and meat products. However, in recent years, the growth rates for fruits, vegetables, meat and dairy products have been higher than cereals and pulses. This shift in turn implies that there is also a need to diversify the food production base to match the changing consumption preferences. This shift in consumption follows the pattern observed in developed countries in the evolution of the global food demand.
There is a shift from carbohydrate staples to animal sources and sugar. Going by this pattern, in future, there will be increasing demand for prepared meals, snack foods and convenience foods and further on the demand would shift towards functional, organic and diet foods. Some of the key constraints identified by the industry include: * Lack of suitable infrastructure in terms of cold storage, warehousing, etc * Lack of adequate quality control and testing infrastructure * Inefficient supply chain and involvement of middlemen High inventory carrying cost * High taxation * High packaging cost * Affordability and cultural preference of fresh food Highest priority has been accorded by the Government for the development of infrastructure. The Government has already taken several initiatives on this front which include developing of food parks, packaging centres, modernised abattoirs, integrated cold chain facilities, irradiation facilities and value added centres.
The initiative to develop food parks was taken primarily in order to assist the small and medium enterprises which are unable to invest in capital intensive activities. So far, 22 food parks have come into operation which provide common facilities like cold storage, food testing and analysis laboratories, packaging centres, etc In terms of policy support, the ministry of food processing has taken the following initiatives: * Formulation of the National Food Processing Policy Complete de-licensing, except for alcoholic beverages * Declared as priority sector for lending in 1999 * 100% FDI on automatic route * Excise duty waived on fruits & vegetables processing from 2000 – 01 * Income tax holiday for fruits & vegetables processing from 2004 – 05 * Customs duty reduced on freezer van from 20% to 10% from 2005 – 06 * Implementation of Fruit Products Order * Implementation of Meat Food Products Order * Enactment of FSS Bill 2005 * Food Safety & Standards Bill, 2005
Apart from these initiatives, the Centre has requested state Governments to undertake the following reforms: * Amendment to the APMC Act * Lowering of VAT rates * Declaring the industry as seasonal * Integrate the promotional structure Investments The total inflow of foreign direct investment in the food processing sector has been around Rs 52. 7 bn (US$ 1. 2 bn) between 1991 to November 2006. During the last five years, FDI witnessed an inflow of over Rs 24 bn of foreign investment.
The highest investment in a single year was in 2001-02 amounting to Rs 10 bn. Maharashtra was among the front-runners to receive the highest share of FDI in food processing during the last five years. The dairy and consumer industrise received FDI worth Rs 2. 7 bn each as foreign investment. Nearly 30 per cent of FDI in the food processing sector comes from EU countries such as Netherlands, Germany, Italy and France. Perfetti, Cadbury, Godrej-Pilsbury, Nutricia International, Manjini Comaco are some of the successful ventures from EU countries.
Major Food Processing Companies in India The entry of multinational companies has increased competition in the food processing industry. At the same time, these companies are facing tough competition from strong Indian brands. This level of competition has increased innovations, facilitating a sustained growth of the sector and also improve global competitiveness. The emerging new growth phase of the sector is just in its initial stages with the potential for India to emerge as a leading food supplier to the world.
SWOT Analysis of Food–Processing Industry Strengths * Abundant availability of raw material * Priority sector status for agro-processing given by the central Government * Vast network of manufacturing facilities all over the country * Vast domestic market Weaknesses * Low availability of adequate infrastructural facilities * Lack of adequate quality control & testing methods as per international standards * Inefficient supply chain due to a large number of intermediaries * High requirement of working capital. Inadequately developed linkages between R&D labs and industry. * Seasonality of raw material Opportunities * Large crop and material base offering a vast potential for agro processing activities * Setting of SEZ/AEZ and food parks for providing added incentive to develop greenfield projects * Rising income levels and changing consumption patterns * Favourable demographic profile and changing lifestyles * Integration of development in contemporary technologies such as electronics, material science, bio-technology etc. ffer vast scope for rapid improvement and progress * Opening of global markets Threats * Affordability and cultural preferences of fresh food * High inventory carrying cost * High taxation * High packaging cost METHODOLOGY The Micro, Small and Medium Enterprises Development Act of 2006, which came into effect from October 2, 2006 defines SMEs as entities that have an investment of above Rs 10 mn and below Rs 100 mn in plant and machinery for firms engaged in production of goods.
Considering the challenges entailed in tapping financial information from a highly fragmented sector, Dun & Bradstreet India (D&B India) has formulated a correlation between investment and turnover to arrive at a benchmark of Rs 1,000 mn turnover for the SMEs. Emerging Food Processing SMEs of India focuses on processors of food and food products across the value chain, from fruits & vegetables to meat & poultry, bakery, non-alcoholic beverages, packaged/convenience food, milk & milk products, marine products, alcoholic beverages and grain processing.
Trading companies have been excluded. The publication also includes diversified companies operating in the food processing and allied segments and having business interests in other industries. The publication has excluded subsidiaries of large Indian business houses, multinational companies and subsidiaries of multinational companies, thus honouring the true Indian entrepreneurial spirit that the SMEs represent. The companies that qualified on the basis of turnover were further screened through another set of parameters to arrive at a truly representative list of emerging SMEs.
Companies with negative net worth and those declared financially sick by the Board for Industrial & Financial Reconstruction (BIFR) as of end-December 2006 were eliminated. Other considerations included financial growth performance over the past two years, growth prospects and production efficiencies. Every effort was made to ensure that the publication covers food processors located across the length and breadth of the country. Based upon D&B India’s in-house database and industry association members’ lists, we identified a large universe of manufacturers.
The companies were contacted through various industry associations and consultants, advertisements in India’s leading business dailies, direct contact through mailers, reminder letters, telephone calls and e-mails. The information contained in this book is sourced and compiled from questionnaires circulated and administered by D&B India, telephonic interviews, company websites and information available in the public domain. The information has been further verified and authenticated to ensure its accuracy.
The Emerging Food Processing SMEs of India, the third in the series after Emerging Auto Component SMEs of India and Emerging Textile SMEs of India provides a brief profile of the small and medium enterprises in the food processing segment. The text highlights the product profile of the included organisations, their manufacturing facilities, key management details and their operations. The sections titled Industry Report and SME Insights are special analyses on the food processing industry which looks at current trends, competitive dynamics and the future outlook for the segment.
The SME Insights section presents analytical findings drawn from the primary information collated by D&B India. We are confident that Emerging Food Processing SMEs of India will provide a platform for Indian entrepreneurs to network and to showcase their capabilities. We would be pleased to receive your valuable feedback and suggestions. Your satisfaction remains the goal in our journey towards excellence. SME’s in food processing Industry: The food processing industry, due to its diverse nature and a policy of SSI reservations, has ordained a predominant role for small enterprises.
The organised sector, consisting of mostly large companies, accounts for only 25% of the market while the remaining 75% of the market is divided between the small scale and the unorganised sectors. The micro and local community based food processing enterprises have dominated the primary processing segment of the industry. Small and medium firms are mostly operating in niche markets. The food processing industry is among the sectors reserved for the small scale industry. Though de-reservation of food products began during the 1990s, there are still around 12 products reserved for manufacturing in the small scale sector.
These products include bread, pastries, confectioneries, rapeseed oil (except solvent extracted), mustard oil, sesame oil, groundnut oil, sweetened cashewnut products, ground and processed spices other than spice oil and Oleo resin spice, tapioca sago and tapioca flour. Prominent food processing companies like Priya Foods, MTR, Surya Food & Agro and Haldiram’s were for long well-known names in their respective regions, with limited national presence. However, lately these companies have changed their strategy towards expanding their market reach.
This phenomenon among the food processing companies received impetus following the entry of Indian large business enterprises like ITC, Godrej, Venky’s India, Marico, etc, into the branded foods segment,. Another factor has been growth of retail stores, which are emerging as a driving factor for food processing, though they account for just 1% of food sales at present. UNIDO has identified over 60 clusters of small and medium enterprises across India existing in the food processing sector.
The state-wise distribution of the clusters shows the largest concentration of companies in Maharashtra and Gujarat followed by Andhra Pradesh, Punjab and Orissa. UNIDO’s study of Indian food processing clusters identified some common deficits in these areas. These include: * Inadequate knowledge of technical standards, packaging facilities, food laws and regulations * Quality raw material supplies * Weak information channels with regards to price and quality * Lack of infrastructure facilities in terms of facilities for testing and research.
For perishable food items, sub-contracting relationships among processing firms does not appear to be a conducive arrangement. As a result, cooperation among the small units is limited. Also, linking with larger processing firms will be to a limited scale. Thus, unlike in the auto components and textile industries, where supply chain plays a critical role in the development of the SME segment, it may not be very relevant to the food processing segment, especially in the short-shelf life products. However, being part of the supply chain for retail outlets could be a driving factor for the growth of SMEs.
In the light of these realities, the Government will have to continue playing a critical role in supporting SMEs in the food processing sector. Indian Food Processing Clusters | | | | | | | | | | | | | | | Source: D&B Research, UNIDO, SIDO| SME INSIGHTS: industry and academicians, has encouraged this study on the SME segment. The SMEs were relatively over-shadowed for long by other economic concerns. As a result, there has been a deficit of authentic information on this segment and has limited the estimation of value contributed by it to India’s economy.
Through this primary research undertaken by Dun & Bradstreet, India (D&B India), we attempt to add value through insights that have emerged from our study. The food processing segment is the third sector in the Emerging SMEs of India series, after auto components and textiles, which have been examined to draw insights relevant to the small and medium enterprises segment. For the food processing sector, we started from an initial database of over 5,000 companies that were contacted.
We further short-listed companies based on certain criterion, such as manufacturing companies having less than Rs 1,000 mn turnover, not a subsidiary of any MNC or large business group, non-BIFR cases, etc. Of the responses received, 262 companies met the criteria for being profiled in the publication. This study aims to draw a profile of how small and medium companies in the food processing space function. We have attempted to chart their operational structure, business practices, preferences, marketing, efficiency parameters, etc.
For this quantitative exercise, we have considered a sample of 245 companies; the requirement being that at least 80% of the information sought has been provided. Some key characteristics of the sample of 245 companies are: * Ownership pattern of companies include: proprietary firms 13. 5%, partnership firms 16. 5%, private limited companies 43% and public limited companies 27% * The sample covers over 98% of the food processing clusters, except a few in Himachal Pradesh and Jammu & Kashmir * The geographical spread of the sample companies mirrors the concentration of food processing companies in the country.
The West and South have maximum representation. Around 33. 5% companies are located in the West, 31% in the South, 27. 5% in the North and 8% in the East * Reflecting the low capital intensive nature of the industry, around 77% of the companies in the sample are small scale enterprises on the basis of investments in plant and machinery. The rest are medium enterprises. (Refer Fig 01) * The representation from the various sub-segments of the industry is as follows: 34% in grain processing & spices segment, 4% into packaged / convenience food, 8% in non-alcoholic beverages which includes soft drinks, tea, coffee, fruit juices, water, etc, 7% each in milk & milk products and fruits & vegetable processing, 6% into bakery, 5% into sugar & confectionary, 4% in meat & poultry, 3% each into alcoholic beverages and marine products and 9% in the others segment (Refer Fig. 2). The ‘others’ category include manufacturers of food colours, flavours, additives, seeds, guar gum etc. (Refer Fig 02) * Around 65% of the companies are solely into manufacturing, while 35% are engaged in manufacturing as well as trading * Around 78. % of the companies in the sample began operations between 1980 and 2000; only 4% were present prior to 1980s. The rest are relatively new having begun operations post-2000 * 71% of companies have a single manufacturing facility while 27% operate with 2 or more plants. * In terms of IT penetration, 42% of the companies have a website. * Figure 01 Figure 02 Turnover Over 50% of the companies in the sample have a turnover of less than Rs 100 mn, and most of them were private limited companies, followed by proprietary firms. Another 33% were earning over Rs 100 mn but less than Rs 500 mn.
Of the remaining 17% of the companies which were in the turnover bracket of Rs 500 mn and Rs 1,000 mn, the public limited and private limited companies dominated with a share of 60% and 33% respectively. In terms of the regional spread of these companies, a large number of small firms were concentrated in the West. The northern and southern region showed a higher proportion of companies falling in the Rs 500 mn and above turnover bracket. Figure 03 Top Ownership Structure The North-based companies once again showed a preference for proprietary form of ownership, similar to that observed among textile SMEs.
The companies in the South were prominently private limited companies. The companies in the Western region were again predominantly private limited companies. (Refer Fig. 04) Figure 04 Top Branding Around 65% of the companies in the sample had branded products. The grain processing and packaged/convenience foods segments were the most prominent among the brand owning companies. Brand consciousness among companies was widespread irrespective of their size. It was found that among the small scale companies with turnover less that Rs 100 mn, 62% of the companies had branded products.
Correspondingly, 69% of the companies in the turnover bracket of Rs 500-1,000 mn had developed brands for their products. Exports Around 114 companies, or 47% of the sample, were exporting their products and 36% were exporting more than 90% of their produce. Of the total exporting firms, 23 companies were 100% exporters mainly in the grain processing, fruits & vegetables and meat & poultry segments, with many of them exporting directly to foreign clients. Of the exporting companies, 61% have branded products and almost 55% have quality certifications.
The average capacity utilization among exporting companies was relatively higher (80%) compared with those selling only in the domestic market. Segment-wise, the pre-dominant exporters were companies in the grain processing and the fruits & vegetables segments having a share of 29% and 15% respectively. In terms of the various sub-segments in the food processing industry and their exports, it was found that companies exclusively into meat & poultry exported over 96% of their output, followed by marine product manufacturers, which on an average exported 93% of their produce.
Segment-wise Exports Table 1 Capacity Utilisation The companies in the study were operating at an average capacity utilisation of 78%. Approximately 44% of the companies were operating at 90% and above of installed capacity. Of these companies operating at 90% and above capacity, 38% were operating in the Grain Processing & Spices segment followed by companies in Fruits & Vegetable Processing segment. Regionally, the North-based companies reflected higher capacity utilisation and were on an average operating at 82% of installed capacity.
In terms of ownership, public limited companies constituted a significant 36% of those operating at more then 90% capacity. On the basis of size, the enterprises having turnover between Rs 250-500 mn showed higher average capacity utilisation of an average 88%. Average capacity utilisation across segments Table 2 Top Future Plans Of the total 245 companies in the sample, 61% have envisaged strategies for future growth. The plans range from capacity expansion, modernisation, diversification to new marketing initiatives and venturing into newer markets.
Out of the total companies with future plans for growth, 45% of the companies have plans for expanding their capacity in order to meet the growing demand. A substantial 29% of the companies have diversification plans into related or un-related fields. Segment-wise, the grain processing companies showed highest dynamism with 65% of the companies in this segment having divulged future growth plans. In terms of future plans, of the companies having capacity expansion plans, 33% were from the grain processing segment followed by packaged/convenience foods (15%).
Bakeries accounted for 13% of the companies having plans for diversifying their product segment, while 16% companies looking for newer markets belonged to non-alcoholic beverages segment Figure 05 Hindrances to growth Infrastructure and lack of institutional support were cited as the key hindrances to growth by the SMEs. Nearly 52% of the companies in the sample responded to the query on hindrances to growth. Of these, over 80% of the responses alluded to lack of institutional support as an impediment. A large number of these companies were from the northern and southern belt.
Infrastructure as a barrier was cited by 37% of the companies. The West-based companies were largely concerned with marketing issues. FUTURE OUTLOOK: The decade-and-a-half of Indian economic reforms have now reached a stage where it is bringing about changes in the the agriculture and food processing sectors. Reforms had more or less bypassed the agriculture sector till recently. However, demographic factors, changing lifestyles and consumer demand for greater variety has increased pressures on the food processing sector to provide products at competitive prices.
Experience of large developed agricultural economies has proven that the integration of production and processing stages are a universal feature of efficient food marketing systems in the advanced stages of economic development. Driving growth in the food processing sector holds the key to imparting changes in the labour intensive agriculture sector in India. Inefficient marketing systems are already being targeted. Policies are now promoting the participation of private investors that would promote efficiency in food processing and agriculture marketing systems.
These are just the initial stages of development and further efficiencies in the agriculture sector, in terms of improving productivity and investments, will be a source of power for the food processing sector in turn. In other words, the two sectors share a symbiotic relationship and changes to either will impact the other. In this backdrop, the Government of India is already in the midst of a vision, strategy and action plan for the food processing sector.
This strategy addresses issues of taxation, organised retail, infrastructure development, marketing interventions and regulations, strengthening of institutions and issues of food safety and regulations. The Vision 2015 strategy released in 2003-04 envisages: * Trebling the size of the processed food sector to close to US$ 300 bn by 2015 * Increasing level of processing of perishables from 6% to 20% * Value addition to increase from 20% to 35% * Increase share in global food trade from 1. 5% to 3% * Increase the share of value added products in food consumption from the current 16% to 50%.
Realising this vision entails an investment of US$ 24 bn over the decade of 2004-2015. Acquiring global competitiveness implies building-in efficiencies into the agricultural production and processing systems. For the agriculture sector, the state Governments will have to play a critical role in raising yields and improving quality of agricultural produce. This would require improving infrastructure for warehouses, cold storage, access roads, creating facilities for primary grading/sorting, improving access to price and market information to farmers, contract farming and supply chain management.
Policy reforms in the food processing sector are already in their advanced phase, and have prompted several corporates to invest in the sector. Among the food processing segments, progress has been pre-eminent in the grain processing sector with the extensive branding of processed end-products like wheat flour and processed rice. A few prominent companies XXIX investing in this segment include ITC, HLL and Cargill. The other growing segment is poultry and meat, where too significant progress has taken place in terms of branding and marketing of products.
This is among the faster growing segments in the industry, and will continue to witness significant changes in the next few years. Key players in this segment include Venky’s India and Godrej. The fruits and vegetables segment is still localised in its operations, and largely unbranded. However, several companies have already made foray into this segment, and are backward integrating their operations. The products that would see remarkable growth include pickles, fruit pulps, canned and frozen fruits and vegetables. Organised food retailing is likely to play an important role in increasing the consumption of processed food items.
The retail format reduces the number of intermediaries and transaction costs. It also aids better understanding of consumer preferences as it is a vital link between the processors and consumers. The Ministry of Food Processing, GoI, has projected the organised food retail industry to grow by 30% for the next five years. Among the key categories that constitute the organised retail market, the food and beverages segment make up a high 29%. Though current sales of processed foods through retail outlets are hardly 1% of total food sales, it is estimated to grow at an annual rate of 40% in the near future.
Indian corporates who have already ventured into this segment include ITC, Bharti, Reliance, Aditya Birla Group, Subhiksha and Future Group. Studies on the impact of organised food retailing on the supply chain have shown that it helps in consolidation among farmers towards meeting consumer requirements, investments in infrastructure and a shift towards centralised distribution centres from the traditional wholesale markets. The food processing industry in India has taken off substantially and will continue to grow rapidly considering the untapped potential in the sector.
The growth in this segment not only indicates the changing development patterns of the country, similar to the developed nations, but also the promise it holds in driving growth of a certain section of society that has remained marginalised for a long time. More than just demand and supply dynamics, stakeholders in the food processing sector of India have a social responsibility to fulfil. The food processing industry in India is a sunrise sector that has gained prominence in recent years. Availability of raw materials, changing lifestyles and relaxation in policies has given a considerable push to the industry’s growth.
This sector is among the few that serves as a vital link between the agriculture and industrial segments of the economy. Strengthening this link is of critical importance to improve the value of agricultural produce; ensure remunerative prices to farmers and at the same time create favourable demand for Indian agricultural products in the world market. A thrust to the food processing sector implies significant development of the agriculture sector and ensures value addition to it. The Indian food processing industry holds tremendous potential to grow, considering the still nascent levels of processing at present.
Though India’s agricultural production base is reasonably strong, wastage of agricultural produce is sizeable. Processing of fruits and vegetables is a low 2%, around 35% in milk, 21% in meat and 6% in poultry products. By international comparison, these levels are significantly low – processing of agriculture produce is around 40% in China, 30% in Thailand, 70% in Brazil, 78% in the Philippines and 80% in Malaysia. Value addition to agriculture produce in India is just 20%, wastage is estimated to be valued at around US$ 13 bn (Rs 580 bn).
India, with an arable land of 184 mn hectares is, the highest producer of milk in the world at 90 mn tonnes p. a. , second largest producer of fruits & vegetables (150 mn tonnes), third largest producer of foodgrains and fish and has the largest livestock population. Considering the wide-ranging and large raw material base that the country offers, along with a consumer base of over one billion people, the industry holds tremendous opportunities for large investments. Ministry of Food Processing Industries
The Ministry was set up in 1998 and the industry segments that come under its purview are: * Fruit & Vegetable processing (including freezing and dehydration) * Grain Processing * Processing of Fish (including canning and freezing) * Processing and refrigeration of certain agricultural products, dairy products, poultry and eggs, meat and meat products * Industries related to bread, oilseeds, meals (edible), breakfast foods, biscuits, confectionery, malt extract, protein isolate, high protein food, weaning food and extruded food products (including other ready-to-eat foods) * Beer, including non-alcoholic beer Alcoholic drinks from non-molasses base * Aerated water and soft drinks * Specialised packaging for food processing industries. The Ministry of Food Processing Industries, GoI, has estimated the size of the Indian food market at US$ 191 bn (Rs 8,600 bn). The processed food market is projected to be over US$ 100 bn, of which the primarily processed food market accounts for 60%, while the value-added processed food market is around 40%. The average annual growth of the food processing industry has been around 8% between FY01-FY06.
The segments that have driven the growth are the beverages and meat & meat products and processed fish sectors. The food processing industry in India has a share of 1. 5% in the total GDP of the country, and as part of total manufacturing accounts for 9%. India’s share in world trade in respect of processed food is about 1. 6%. An extensive and highly fragmented industry, the food processing sector largely comprises of the following sub-segments: fruits & vegetables, milk and milk products, beer & alcoholic beverages, meat and poultry, marine products, grain processing, packaged/convenience food and packaged drinks.
A large number of players in this industry are small sized companies, and are largely concentrated in the unorganised segment. This segment accounts for more than 70% of the output in volume terms and 50% in value terms. However, though the organized sector is comparatively small, it is growing at a much faster pace. The Indian food processing industry has seen rapid development over the years and is a significant contributor to the country’s GDP. The increase in demand for processed food in the country is mostly because of the increase in disposable incomes and urbanisation.
Processed food in India is expected to grow appreciably and keeping this in mind, Madras Consultancy Group (McG), Chennai, India, has released their industry profile on ‘The Food Processing Industry in India’. This well researched document provides an insight into the Indian food processing market, structure of the industry, challenges facing the market and growth opportunities. It also includes an overview of the different business segments within the food processing industry.
The profile is aimed to provide valuable information to strategic planners, current and prospective investors, international marketing executives and export managers interested in the food processing industry. It is also beneficial to the packaging industry and the retail sector, offering specifics on the various trends and developments. Industry Analysis & Structure This section provides an overview of the industry, giving details on the historical and current market size data. This section also identifies the various developments and trends that have occurred in the industry over recent years. Analysis by Product Segment
This section provides insights on the processed food industry’s key product segments such as fruits, vegetables, fresh and frozen sea food, meat, dairy, baked goods, confectionery, convenience foods and beverages. It also includes specifics on market share, segmentation, export markets and growth. Company Profiles The major companies across each market segment are highlighted in this section. Key financial information, recent developments as well as the company’s current market position are discussed. MATTER The Indian food processing industry has seen rapid development over the years and is a significant contributor to the country’s GDP.
The increase in demand for processed food in the country is mostly because of the increase in disposable incomes and urbanisation. Processed food in India is expected to grow appreciably and keeping this in mind, Madras Consultancy Group (McG), Chennai, India, has released their industry profile on ‘The Food Processing Industry in India’. This well researched document provides an insight into the Indian food processing market, structure of the industry, challenges facing the market and growth opportunities. It also includes an overview of the different business segments within the food processing industry.
The profile is aimed to provide valuable information to strategic planners, current and prospective investors, international marketing executives and export managers interested in the food processing industry. It is also beneficial to the packaging industry and the retail sector, offering specifics on the various trends and developments. CHAPTER-3 COMPANY PROFILE Bambino Agro Industries Ltd (BAIL), formerly Jaya Food Industries was incorporated in Andhra Pradesh in Dec. ’83 and became a public limited company in 1992. It was promoted by M Krishna Rao and his business associates.
The company manufactures pasta products such as vermicelli, macaroni, etc. , and has an installed capacity of 1, 88,190 MT. The plant is located at Bibinagar (Nalgonda district), Andhra Pradesh, which is 30 km away from Hyderabad. The company came out with a public issue at a premium of Rs. 30 in Dec. ’93 to finance an expansion project to increase its capacity from 14,400 TPA to 16,740 tpa and to integrate backward by setting up a 30,000-tpa roller flour mill. The technology for pasta products was imported from Italy at the time of setting up the first plant in 1985.
The technology has been fully absorbed by the company. The company’s products are marketed under the brand name Bambino. The company’s new expansion includes setting up a 14,400-tpa fully automated pasta line along with utilities and other services at Gurgaon, Haryana. It is also setting up another flour mill with a capacity of 100 tpa. In 1997-98, Bambino Food Industries Ltd has been amalgamated with the company as per the scheme of amalgamation. In 1998-99, it increased the installed capacity of wheat and pasta products to 1, 88,190 MT. INTERNATIONAL BRAND:
With the state of the art manufacturing facilities at Gurgaon near Delhi, Bhandara near Nagpur and Bibinagar near Hyderabad, it’s a true Indian home grown international brand. It exports regularly to USA, Australia, New Zealand, Singapore, Thailand, Japan, Europe and parts of UAE. It has already become the largest producer of Vermicelli in Asia and now probably in the world as well. GROWTH OF BAMBINO: The Bambino Agro Industries has grown almost by 100% in Sales in the last 3 years, informed Mr. P. Easwara Das, Executive Director addressing a press conference.
It registered a turnover of Rs 220 crore last year and expected to touch Rs 260 to Rs 270 crore this year. It is planning to double its current turnover to Rs 500 crore in next five years. Bambino is the major supplier of Vermicelli to Military CSD Canteens and Defence Supplies to the tune of Rs 4 crore sales every year. RESEARCH & DEVELOPMENT: Bambino have an excellent R&D with a focus on quality. It procures raw material, wheat from the farmer and has its own flour mill to process the wheat and then used by the Vermicelli factory there by ensuring that the consumer gets 100% international quality product said Mr.
Easwara Das. PRODUCT LINE: Presently Bambino has 74 products in different variants, shapes and sizes. Its product range includes Pasta Products, Instant Foods, Soup Powers, Spice Powders, Ready to Eat Sweets and Ready to Eat Snacks. HEALTH,TASTE &CONVENIENCE TO LIFE: The company off late has been focusing and promoting more of health care products like Macaroni and Pasta, as they are made of durum wheat, which has nil cholesterol and just 1% fat content. Thus it offers tremendous energy to children because of the protein content. Elders get relief from cholesterol and excess fat informed Mr.
Easwara Das. The company’s nutritionists evaluate and suggest food as per the nutritional value which will enable each segment of the house hold to lead a health life. NISCHE MARKET: As part of its penetration into rural markets, it introduced first time an economical pack, just at Rs. 5/- consumers can buy Vermicelli which can make 4 cups of Kheer and 2 Cups of Upma. This helps rural consumers who can afford to buy their favourite Vermicelli. On the other side, it helps the company to reach the poorest of the poor consumers. FUTURE PLANS: Speaking about the future plans Mr.
Easwara Das informed that the company is looking into diversifying by keeping its core competency into functional foods. It is also plans to tie up with reputed Universities and Institutes in ensuring its futuristic growth plans become successful. The Company plans to tie-up with reputed Universities to take forward its future growth plans. It has closely associated with the University in Andhra Pradesh in honouring young and academic brilliance. Towards this, company has instituted a Gold Medal from 2009 onwards in Acharya NG Ranga Agricultural University,Hyderabad.
Plans are on to forge alliances with more Universities particularly in North, added Mr. Easwara Das. Bambino Agro Industries (BAMBINO), incorporated in 1983, is now the largest vermicelli producer in the world. It is part of the diversified Bambino Group having interests in FMCG Products. Other group companies include the private limited companies Ghanta Foods and Seshsayi Foods. The product range consists of vermicelli, macaroni, pasta, instant food mixes, soups, blended spices, ready-to-eat Indian snacks and sweets under the brand name Bambino.
The manufacturing units are located at Gurgaon near Delhi, Bhandara near Nagpur and Bibinagar near Hyderabad. SILVER JUBILEE: India’s international pasta food brand and world’s largest producer of Vermicelli, Hyderabad based Bambino completes 25 years of manufacturing and marketing of Vermicelli, Pasta, instant foods, Sweets / Namkeens both nationally and internationally. Bam