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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 Enrollment No: 107940592067 (Batch: 2011-12) MBA semester III/IV Jitendra Parmar Enrollment No: 107940592067

Global Institute of Management, Gandhinagar Affiliated to Gujarat Technological University, Ahmedabad 2011-12

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 and extend 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.

ACKNOWLEDGEMENT
We have great honour to be worked under the guidance of Mrs. Rucha Bhatt, Asst. professor of Global Institute of Management, Gandhinagar. The contribution and significant role played by her help us in preparation and submission of project report in time. We gratefully acknowledge the team of staff members in M.B.A department for helping us in all aspects and giving their valuable ideas for making our project efficient and effective.

STUDENTS DECLARATION
We, PARESH PARMAR & JITENDRA PARMAR, hereby declare that the for Comprehensive project entitled An Analytical Study of Chocolate Packaging Industry in India with Special Reference to Cadburys India is a result of our own work done under the faculty guidance of Mrs. Rucha Bhatt, Asst. professor of Global Institute of Management, Gandhinagar.

Place: Gandhinagar Date:

Paresh Parmar Jitendra Parmar

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 production problems 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.

Product Profile
Canvas draw string pouch

Printed Cans Aeon Chocolate Box

large range of Chocolate Boxes

Individual Chocolate Packaging platic bag with zipper and without zipper

Chocolate Gift Packs

chocolate beans

Chocolatelollypops

Players in the Industry


The major players in the Indian Chocolate Industry are: 1. Cadburys India Limited 2. Nestle India 3. The Gujarat Co-operative Milk Marketing Federation (GCMMF) AMUL 4. Cocoa Manufactures and Processors Co-operative (CAMPCO)

Distribution channel in the Industry

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%

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