Project Profile - BREAD & BISCUIT

INTRODUCTION

         Bread & Biscuits are fast and convenient food based on wheat. There are many varieties of bread depending upon the local demand like whole flour bread, brown bread, bread fortified with vitamins and minerals, milk bread and bread for diabetic patients. Its consumption is more in cities and towns where industrial working group population is more. Bread and Biscuit consumption is increasing day by day and these are being increasingly used for various feeding programmed for children managed by voluntary agencies and State Departments of Health. Biscuits, which constitute an important item of bakery industry, have now become a common item of consumption among all classes of people. With tea or coffee, a biscuit makes a tasty and nutritious snack. It has become more popular as a convenient food.
         The raw material required for bread and biscuit is wheat flour/maida which is available in plenty in the country. The manufacture of bread is exclusively reserved for small-scale sector.

MARKET POTENTIAL

         With the changing socio-economic environment i.e. increased literacy rate (about 65%), higher per capita income, larger number of women going out for work to sustain family, higher living standard and increased tourist population etc., one can expect at least 5% growth rate in case of bakery products in coming years. According to an estimate, there are about 1lakh SSI units producing items worth Rs.3000 crores annually. Our per capita consumption of bakery products is the lowest in the world i.e. 1.27 kg. Whereas in advanced countries, it ranges from 50-70kgs.
         Keeping in view these facts, the manufacture of bakery product has substantial scope for development in smaller towns villages and backward areas and can provide good number of employment opportunities at different levels.

MANUFACTURING PROCESS:

         BREAD - Dough is prepared by mixing all the ingredients together in a mixer. The bowl is removed and mixing is done at intervals of 40 minutes. The mixed dough is fermented for two hours, knocked back and rested for 30 to 40 minutes. The dough as per the size of the loaf to be divided. The divided dough pieces are panned and kept for final processing. When the dough attains a particular rising, they are baked for 40 minutes at 420°F. Baked dough is cooled sufficiently, sliced and then wrapped.

         BISCUIT - The process of biscuit making is very simple and the various ingredients normally used are (a) maida, (b) ghee (c) sugar (d) baking powder (e) milk powder/condensed milk & (f) essence.

         These materials in weighed quantity are mixed together except maida in a paste form. The paste is then transferred to a mixer along with required quantity of maida and the dough is prepared. The dough thus prepared is made into sheet and manually cut into different shapes with moulds and then it is baked in oven. The baked biscuits are cooled to make them crispy

FINANCIAL ASPECT

(i) Fixed Capital Investment:

         Land & Building : - Own

Machinery & Equipment

Sl.No.
 Description
Nos.
Amount (Rs)
1
 Dough Mixer
1
8,000
2
 Baking Oven (coal fired)
1
12,000
3
 Biscuit cutting & punching mould
5
1,250
4
 Proofing Racks
1
5,000
5
 Hand Divider
1
2,000
6
 Working Table
1
2,000
 
  
 
30,500

Fixed Capital Investment = 30,250/-

(ii) Working Capital (per month)

(a) Wages (per month):

        Skilled Worker 01 No.         = 2,000/-
        Helper 01 No.                      = 1,000/-

(b) Raw Material (per month)

Sl.No.
 Particulars
Qty
Rate
Amount Rs.
1
 Flour
1,700 kg.
Rs.11 / kg
18,700/-
2
 Sugar
80 kg.
Rs.18 / kg
1,440/-
3
 Vegetable fat
16 kg.
Rs.50 / kg
800/-
4
 Salt
30 kg.
Rs.4 / kg
120/-
5
 Dry Yeast
12 kg.
Rs.150 / kg
1800/-
6
 Chemical additives
L.S
--
500/-
7
 Packing Materials
L.S
--
500/-
Total Cost of Raw Materials….
23,860/-

(c) Utilities (per month)

        (Power,Water,Fuel)                                         = 500/-

        Working Capital (Per month) (a+b+c)              = 27,360/-

(iii) TOTAL CAPITAL INVESTMENT

        Fixed Capital                                         30,250/-
        Working Capital (one month)                 27,360/-
                                                                     57,610/-

(iv) COST OF PRODUCTION (per annum)

Sl.No.
 Particulars
Amount in lacs
1
 Total recurring cost
3,28,320/-
2
 Depreciation on machinery and equipment @ 10%
3,025/-
3
 Interest on total capital investment @10%
57,61/-
Total cost of Production..
3,37,106/-
Say
3,37,000/-

(v) Sales ( per annum)

        Bread 20,000 loaves @ Rs.8/- per loaf         1,60,000/-

        Biscuits 04,000 Kgs. @ Rs.52/- per kg.         2,08,000/-
        Total…                                                         3,68,000/-

(vi) Profit (Per Annum)

        Total Sales - Cost Of Production = 3,68,000 - 3,37,000

        = 31,000/-

        Less: 10% Sales Commission

        = 3,100/-

        = 27,900/-

vii) Percentage of profit on Sales. - 7.6%

viii) Percentage of Profit on Investment - 48%

ix) Break even point :

Fixed Cost (per annum)

        1. Depreciation -                 3,025/-
        2. Interest on Investment -   5,761/-
        3. 40% of Wages -             14,400/-
        4. 40% of Utilities -             2,400/-
                                                   25,586/-

        Break-even point : Fixed Cost/Annum x 100 / Fixed Cost + Profit

        = 48%

Name & Address of Machinery & Equipment suppliers :

        1.      M/s Baker & Co. Pvt. Ltd.,
                 Oomringal Building, Opp:
                 Crawfood Market, Mumbai-400 008.
        2.      M/s Nagpal Brother (Regd.) C-127,
                 Phase – II, Mayapuri Indl.Area,
                 New Delhi-110 064.
        3.      M/s Mangal Engg. Works,
                 Lahori Gate, Patiala, Punjab.
        4.      M/s Ever Fresh Products,
                 Ram Bagh, Indore (M.P.)

Name & Address of Raw material suppliers :

        Locally Available.