Indian bakery equipment market is on a growth trajectory. Key drivers are the skilled manpower, dual household incomes and the increasing number of bakeries to cater to the wide range of products and rising consumption levels. This is where Paramount Impex which is part of the Paramount group intends to maximise its presence in the country. The over five decade old company has spread its operations in Bangalore, Mumbai and Delhi and has the ability to design and produce a comprehensive range of bakery equipment. Some of these are manufactured in the India but the hi-tech range is imported. In an interaction, Sanjay Mehra, Director, Paramount Impex provides a market overview along with the growth prospects of his company.


Q. What according to you are the factors, which are driving the bakery equipment industry in the country today?

A. The main factors driving bakery industry are diverse. This is because the structure of the bakery industry comprises three segments namely need-based, basic hotel requirements and connoisseur requisites. The need-based category caters to products like bread and biscuits. Under the hotels, it varies from breads to pastries, cakes, pizza and puffs. The connoisseur category focuses on international standard and will cover products like specialised pastries and cakes, including pannanie tartsto in addition to a number of fascinating breads with garlic content among others available in hard and soft textures.


Q. Going by the ability to produce bakery equipment through transfer of technology, do you think India can become a hub for its economies-of-scale to contract manufacture for international companies?

A. Equipment manufacturing for international companies surprisingly has not caught in India. The reasons could be varied. Firstly, there is a lack of infrastructure as the factories in India are not advanced and large to under-take high volume production. For instance in China, the production facilities for bakery equipment do not look sophisticated but are at least ten times larger in size with only high-end manufacturing machinery. Each factory in China had a Japanese made machine which costs over Rs 1 crore. The focus is on total automation to ensure highest quality standards and provide the large volume production. This is where government of India needs to step in and ensure its industries are equipped to meet international standards in manufacturing bakery products.


Q. What are the developments at Paramount Impex in terms of investments and new products?

A. We have placed orders for some new machines. These include sheet formings and welding to improve the quality. We are also keen to open a new factory of international standards and work towards higher quality and better branding. This is where we will tie-up with Emersons to help in the plant automation with microprocessor technology.


Q. Could you provide details of your manufacturing facility and enlist the total offering for the bakery sector?

A. We have had a comprehensive customer base which includes factory bakeries, hotel bakery, small bakery shops and pizza centres. There is a huge scope for growth. Our products include baking ovens, mixers, proofers, rounding machines and sheeting machines.


Q. Which of these are the fastest growing?

A. Our equipment has been installed in numerous locations. We are known for a large installed base, wide range of equipment and a depth in baking technology. This is where Paramount capability covers every conceivable type of product and value added option. We can offer equipment for each key process stages and there is also a constant effort to improvise the range. Among the fastest growing equipment are for pastries, cakes, coffee shop bakery items. This is where the growth is visible.


Q. Could you also provide details on the international and domestic market presence?

A. Our Indian exposure has been practically in every major and Tier II city. We have also been a supplier to bakeries and hotels chains in the SAARC nations which include Sri Lanka, Bhutan, Nepal among others. We are also present in the Middle East.


Q. How is the competition in this sector and what is Paramounts edge in this space?

A. Our advantage over competition is the vast experience of over five decade. We have grown with the bakery industry and comprehended its nuances to offer high quality and dependable equipment at reasonable prices.


Q. What are the likely future efforts of the company to move ahead in this space?

A. For the future prospects, we are looking to increase our presence in every area of bakery equipment. Since our production expertise has been much-sought-after going by the regular customers we hope to cash-in more from this recognition. In addition, the pace of the Indian economy growth would also help us to accelerate our growth prospects.


Q. What are the issues for equipment manufacturers to succeed in the market?

A. There are issues to succeed in this field. These include constant innovation standardisation of products, achieving economies-of-scale and highest quality of service and after sales service.


Q. What are the likely future growth drivers of the bakery equipment?

A. The key growth drivers of the bakery industry will rely on higher incomes, propensity to spend, growing consumption, young population, urbanisation, emergence of nuclear families, changing tastes and preferences. This will ensure the buoyant prospects for the bakery products which will automatically have a positive outcome for the bakery equipment industry. There will be a need for modern designs for bulk handling systems for sugar, flour, fats and liquids, dough elevators, blenders, over moulds, laminates, cutters, magnetic stackers conveyor belts among others.