Bakery: The Pie Gets Bigger

Jyoti Koul - New Delhi

The Indian bakery industry by and large comprises of the large-scale segment of factories and the small-scale bakeries, which include units in hotels and restaurants. Both segments have been doing very well, so much so that the production of bakery products has increased two-fold in the last five years, according to industry estimates. The present production of bakery items in India is pegged at 31.5 lakh tonnes. Of this, the share of bread is 15 lakh tonnes and biscuit 12 lakh tonnes. Other bakery products contribute the balance 4.5 lakh tonnes. It is of interest to note that only about 24 per cent of bread and 26 per cent of biscuits are manufactured in large scale bakery units while 76-78 per cent of bakery products are produced in small scale and family scale units. As much as 48 per cent of the total bakery products produced in the country are consumed in rural areas.

According to Rohit Gupta, CEO, Breadsmith, though the market has been growing when compared to European countries like France, Indian bakery is far behind. He says, "We need to have sizeable number of smaller bakery outlets in almost every city. Bakery makes for fast, hygienic and nutritious eatables/food. There is a lot of demand but we need more players in the industry. Right now we have concentration of good bakery outlets in metros only." Gupta's company is planning to expand their bakery chain in the capital. "Like coffee, bakery is a round-the-year industry. There is no seasonal factor associated with it. I guess in future many new chains are going to enter the Indian market," says Gupta.

Many industry analysts believe that the sector can only continue to grow with bakery items being considered a health food option as well as lifestyle product. Says Tirath Singh, senior sous chef, India Habitat Centre, New Delhi, "I do agree that India lags behind when compared to western nations because the bakery concept has actually come from the west. We have taken our time to grow but are catching up fast with trends in the international market. It is not that we lack talent, technology or the knowledge, but the market response has to grow in proportion with the products available. But I guess we are moving in the right direction." Grandma's, the bakery and confectionery outlet at Eatopia in India Habitat Centre, generates as much demand for its products as the other outlets there.

The latest trend in the bakery and confectionery segment is to be natural. "High-end hotels and freestanding units are moving away from usage of chemicals, preservatives etc. They prefer to go organic. Eventually most bakery products will be 100 per cent organic. Usage of fruits with respect to sweetness, aroma and taste are being given more thrust than artificial substitutes," says Singh.

According to Vikas Arora, general manager marketing, Bread & More, the industry is giving a lot more choice to consumers. "There are around 300 varieties of breads available in the Indian market and the thrust is on quality and price," says Arora.

Among bakery products, bread is the most popular processed ready-to-eat (RTE) product in the country. However, the per capita consumption of bread in India is only one to two kilograms as compared to 50-150 kilograms in developed countries. Hence, there is a huge scope for expansion. "At Bread & More we have about 150 varieties of breads which means that the consumer is getting a lot of options to choose from keeping in view taste, quality and quantity," said Arora.

Bread & More, a chain of bakery outlets by KIC Food Products Pvt Ltd, is planning to introduce many new outlets in different places in the country soon.

With the industry growing, new employment avenues are also being thrown open. Many hotel management and vocational institutions are adding bakery as a special subject.