Despite stiff competition from well-known brands, the small scale unorganised biscuit industry in Tamil Nadu has managed to stay afloat largely by entering into tie-up with thousands of small and medium tea shops, dotting the nook and corner of this metropolis and Tier-II cities in the state.
Industry experts say that though the organised biscuit makers, through their aggressive marketing campaigns, had managed to conquer 60 per cent of the market share in the last few years, the small scale units had successfully managed to maintain a share of 40 per cent.
"We have been registering brisk business after entering into a tie-up with small and medium teashops where people frequent for refreshments. The tie-up has proved to be a productive way for us to sustain in this highly competitive market," S Ramamurthy of Mars Bakers said adding of late the influx of cheap varieties of biscuits from Chinese industries had threatened their sales.
The small units, ranging up to 1,000, had managed to fight the majors after the government de-reserved the biscuit industry in 1997-98, resulting in entry of a few multi-nationals like Sara Lee, Kellogs, SmithKline Beecham and Heinz.
The industry, which was till then reserved in the SSI sector, was de-reserved in accordance with a government policy based on the recommendations of the Abid Hussain Committee.