Chocolate Packaging Industry

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A

Comprehensive Project report on

A Study of Chocolate Packaging Industry in India

Submitted in partial fulfillment of the

Requirement of the award for the degree of

MASTER OF BUSINESS ASMINISTRATION

In

Gujarat Technological University

Under the guidance of

Prof. Rucha Bhatt

(Assistant Professor)

Gandhinagar

Submitted by

Paresh Parmar Jitendra ParmarEnrollment No: 107940592067 Enrollment No: 107940592067

(Batch: 2011-12)

MBA semester III/IV

Global Institute of Management, Gandhinagar

Affiliated to Gujarat Technological University, Ahmedabad

2011-12


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Preface

All the learnings in MBA course is practice oriented. However, hand-on experience in

corporate world during our course is very necessary to be able to test the ability andextend of learning of the student before fully entering the corporate world.

We have assigned with our a Comprehensive Project report on project title A Study of

Chocolate Packaging Industry in India

With the guidance and suggestions provided by Asst. Prof. Rucha Bhatt, Global Institute

of Management, Gandhinagar. The contribution and significant role played by her help

us in preparation and submission of project report in time.


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PART 1 INDUSTRY PROFILE

Growth and Evolution of Chocolate Packaging Industry in INDIA

The fact that chocolate is not a traditional food, high prices and domestic productionproblems will provide the main problems to market growth. As these markets develop,

prices will fall making these products more accessible to the wider population. However

the Indian market is still untapped and provides immense scope for growth, both

geographically as well as product basket wise.

Chocolates right now reaches about 70mn to 75mn consumers. It is estimated that

chocolates have a potential market of about 116mn consumers.

Chocolate consumption in India is extremely low. Per capita consumption is around

160gms in the urban areas, compared to 8-10kg in the developed countries. The per

capita chocolate consumption in India is still much below the East Asian standards.

Hence per capita consumption has an immense scope for improvement. In rural areas,

it is even lower. Chocolates in India are consumed as indulgence and not as a snack

food. A strong volume growth was witnessed in the early 90's when Cadbury

repositioned chocolates from children to adult consumption. The biggest opportunity is

likely to stem from increasing the consumer base. Leading players like Cadbury and

Nestle have been attempting to do this by value for money offerings, which are

affordable to the masses. We also believe that the near term opportunity lies in

increasing penetration rather than increasing intensity of consumption.

In the past five years, the chocolate business grown by 14-15% on an average

and is expected to grow further for at least next five years.


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Product Profile

Canvas draw string pouch

Printed Cans

Aeon Chocolate Box

large range of ChocolateBoxes

Individual ChocolatePackaging

platic bag with zipper andwithout zipper

Chocolate Gift Packs


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chocolate beans

Chocolatelollypops


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Players in the Industry

The major players in the Indian Chocolate Industry are:

1. Cadburys India Limited

2. Nestle India3. The Gujarat Co-operative Milk Marketing Federation (GCMMF) AMUL

4. Cocoa Manufactures and Processors Co-operative (CAMPCO)


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Distribution channel in the Industry


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Key Issues

Inflationary pressures on raw material prices

Lack of government initiative High excise and import duties

High entry barriers due to duopolistic market

Price-sensitive consumer

Current Trends

Chocolate Consumption Structure 2010

Children 55%

Adults 12%

Young Adults 33%

Chocolate & Confectionery Market of India 2010

Chocolate Counts Rs. 250 Cr. 10%

Chocolate Bar Rs. 350 Cr. 14%

Mints & Chew ing gums Rs. 325 Cr. 13%

Sugar Boiled Confectionery Rs. 1600 Cr. 63%

Chocolate Packaging Industry

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