United Biscuits set on expansion in India, report

By staff reporter

- Last updated on GMT

Related tags: Manufacturing, United biscuits

UK biscuit manufacturer United Biscuits is set to enter the India market through the purchase of a manufacturing plant, according to the Economic Times.

The report said the group, which is behind such brands as McVitie’s, Hoola Hoops and Jacob’s Cream Crackers, is looking to acquire a manufacturing facility owned by SS Food Industries in Himachal Pradesh to manufacture and market biscuits for Asia's third-largest economy.

United Biscuits is the leading manufacturer and marketer of biscuits in the UK and second largest in the Netherlands, France, Belgium and Ireland.

According to the article, the company is planning to first introduce McVitie's brand in the first quarter of 2010.

SS Food Industries manufactures biscuits which are exported to Africa and the Middle East.

Frost & Sullivan predicts that the Indian bakery industry is expected to grow by a healthy 8 per cent rate from 2010 onwards.

The researchers claim that the thriving Indian bakery industry is still in the developing stage, and that this also offers huge opportunities for the bakery ingredients market to grow alongside.

According to the market analysts, although local makers have an advantage in many ingredient markets, the threat from imports 'looms large'.

In their analysis of ingredients applications for the Indian bakery industry, according to Frost & Sullivan the market will nearly double in seven years from revenues of over $161.4 million (€125m) in 2007 to $278.1 million (€216m) in 2014.

The Indian market is devoid of entry barriers for imports, with local manufacturers competing against major global players such as Denmark's ingredients giant Danisco and enzyme supplier Novozymes.

Speciality ingredients manufactured abroad are, according to Frost & Sullivan "higher in quality compared with domestic products."

Related topics: KP Snacks, Processing & Packaging

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