September 28, 2009

Nezone Biscuit Factory

Filed under: Assam,Small Businesses — loggers @ 8:27 pm

On our way to Tawang and the Indo-China border, we passed through the town of Tezpur and paid a visit to the largest biscuit manufacturer in Assam, called Nezone (stands for North East Zone). Owned and operated by a Marwari family[i], Nezone produces more than 35 varieties of biscuits. In addition to producing biscuits under its own brand name, it also does so for major brands such as Britannia (India’s market leader in biscuits).

We were able to observe the entire production process, right from flour milling to mixing of the ingredients to baking. Apart from the two production lines present in this factory, Nezone also has another factory of the same capacity. Margins in the biscuit business have historically been very tight (~7%), and given the current environment of increasing input prices such as sugar, this has been reduced further to 2-3%. To maintain competitiveness in the volumes game, the factory runs 24 hours/day, 6 days/week. The supply of biscuits we were given at the conclusion of the visit served us well for our lengthy road trip ahead to Tawang..

Packing line at Nezone

Packing line at Nezone

[i] The prominent businessmen in the region are Marwaris and Biharis


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