Bakery Business (Biscuit, Rusk, Khari) - Project Plan, Machine & Process
Product – Bakery Business (Breads, Rusk, Biscuits /Cookies, Cakes etc.)
Target Market – Retail Distribution Network, Online Selling, Restaurants, Domestic Application etc.
Market Potential – 7.5% Annual Growth, Focus on nutritional products.
Raw Material – Wheat, Maida, Ghee, Edible Oil, Sugar, Sal, Other Ingredients
The bakery industry plays an important role in food processing sector in India. It is the third largest segment in food processing sector. Bakery products are the mass consumption items and foods like cakes, breads, biscuits, chips etc. are the popular products in Indian bakery industry. India is the third largest manufacturer of biscuits after United States and China.
India is the fastest growing major economy and the lifestyles of Indians are changing rapidly due to increase in per capita income. There is huge demand of bakery products in view of low price and changing eating habits of people.
Bakery business can be started with low capital and anyone with the competence in field of food quality, taste, process, machinery, nutrition and technical aspects can start the bakery business
Breads, Buns, Biscuits /Cookies; Cakes; Pav for Pav Bhaji/burgers/Dabeli etc.; Dough Nuts, Bagels, Waffles, Muffins, Cupcakes, Pies, Swiss/ cream rolls , Rusk, Wafer Biscuits (need specific set-up), Pizza base, Puff Pastries and many others.
Market Potential and Growth
- Present Trend – Focus on healthy and nutritional products
- Bakery Industry Size – Rs. 16,500 Crore
- Annual Growth – 7.5% Per Annum
- Breads and biscuits are the major categories with 82% share of bakery industry
- Cakes and Pastries Segment – Rs. 1250 Crore
- Share of Unorganized Sector – Biscuits 67%, Breads 80%, Cakes & Pastries 65%, Other Bakery Products 90% (Source: NPCS, 2007)
Business Registrations and Statutory/Government Approvals
FSSAI License is compulsory for bakery products manufacturing business or any other food processing business. Following registrations/approvals may be required where applicable:
- MSME Registration
- Shop and Establishment License
- GST Registration
- Fire and Safety Approval
- Pollution Control Board Clearance
- ESI, PF and Labour laws
Training & Courses to Start Bakery Business/Food Processing
- Indian Institute of Food Processing Technology, Thanjavur, Tamil Nadu and
- Central Food Technological Institute, Mysore, Karnataka
- Institute of Backing & Cake Art, Bangalore.
- Entrepreneurship Development Institute of India (EDII) and its affiliates.
Machinery Used in Bakery Industry
- Baking Ovens
- Dough Mixers
- Cutter, Divider, Sheeter, etc.
- Rusk Making Machine
- Flour Sifter, Sugar Pulveriser, Biscuit Grinder
- Trays, Scoops, SS Bins, Pellets, etc.
- Packing Equipment
- Miscellaneous Equips, RO Plant, etc.
- Mix of all ingredients as per formula.
- Prepare soft dough in a dough kneader still it becomes smooth.
- Roll the dough into sheets of required dimensions and thickness, apply flour dusting as required. Apply ghee on layers and fold it still of required size. Repeat the process still layers are formed.
- Refrigerate it for 15 minutes. Remove from refrigerator, cut into pieces of required size and dimensions.
- Place all the pieces in baking oven and bake at 200 °C 20-25 minutes. After that lower the temperature and bake at 180° C for another 15-20 minutes.
- Cool the pieces, pack as per weight decided of SKU into poly bags and then put into corrugated carton for dispatch.
- Pre-mixing of ingredients as per formulation to form dough of proper consistency.
- The dough is then divided and pieces put into molds for proofing, followed by first baking, cooling, second baking and again cooling and packing.
- First baking to do at 200° C and second baking at 180° C.
- Weigh all ingredients and make soft dough with addition of sugar, ghee and water as per formula.
- Beat the dough still it becomes soft and fluffy.
- Add yoghurt and best again.
- Keep it in such condition for 10-15 min.
- Press the dough into flatten rounds and make incision with knife at center.
- Sprinkle cardamom, coconut or sesame seeds just for decoration.
- Bake the rounds at 200° C for 20-25 minutes.
Assumptions: Plant Capacity & Product-Mix:
It is proposed here to manufacture khari (bakery puffed biscuits), rusk (toast) and bakery biscuits (NANKHATAI) and other bakery biscuits) with an installed capacity of total 1000 kg/day, in which, 40% khari, 40% rusk and 20% assorted bakery biscuits. One can produce cakes, cream rolls, buns, bread, pav cupcakes, etc. in a same facility.
Cost of Project
|No.||Costing Heads||Qty.||Rate/Unit||Rs. Lakh|
|1||Land in Sq. M. + Expenses||800||1,000.00||8.00|
|3||Plant & Machinery||28.52|
|4||Other Capital Investment||10.00|
|Total Cost of Project||87.52|
Means of finance
|Means Heads||Rs. Lakhs|
|Total Means of Finance||87.52|
- Purchase of Land
- Completion of Building
- Ordering of Machinery
- Delivery of Machinery
- Term/Wkg Loan Sanction
- Installation of Machinery
- Commissioning of Plant
- RM/Inputs Procurement
- Manpower Appointments
- Commercial Production
Working Capital Calculation
|Particulars||Stock Period Days||Value of Stock Period||Promoter Margin||Promoter Share||Bank Borrowings|
|Work in Process||3||4.77||0.40||1.91||2.86|
|Sr. No.||Particulars||Year 1||Year 2||Year 3||Year 4||Year 5|
|8||Interest on Term Loan||4.158||4.752||5.346||5.346||5.346|
|9||Interest on WC Loan||7.875||9||10.125||10.125||10.125|
|9||Repairs & Maintenance||3.5||4||4.5||4.5||4.5|
|C||Gross Profit (A-B):||27.792||32.408||37.024||37.024||37.024|
The proposed unit will have the production capacity of 1000 kg per day of various types of bakery products. The unit cost of power is taken at Rs. 8. The depreciation on building is taken at the rate of 5% whereas for plant and machinery it is at 10%. The average sales price of bakery products is taken at the rate of Rs. 175 per kg for proposed project.
Break Even Analysis
|Sr. No.||Particulars||Rs. Lacs.|
|1||Net Profit Per Year||sales – COP||27.70|
|2||Net Profit Ratio:||NP x 100/sales||5.29|
|3||Rate of Return On Invest.||NP x 100/Invest.||31.65|
|4||Annual Fixed Cost:|
|40% of Wages||22.60|
|5||Break Even Point|
|Annual Fixed Cost x100/||68.47|
|Annual Fixed Cost + Profit|