Bakery Products Project Profile

Bakery Products Project Profile: How to Start a Bakery Products Manufacturing Unit

Introduction:

Bakery Products industry plays an important role in industrial activities of food processing in the country. In the modern times,it provides nutritious food to go large number of households in cities. The Indian Bakery sector consists of some of the foods like cakes, breads, biscuits, and chips etc..A variety of products are being prepared in the Bakery due to growing technology.

Promoter:

The promoter of the unit should be well experienced in manufacturing and marketing bakery products. He should be able to manage the whole unit successfully using his good social contacts and great managing power.

NOTE: All projection data below are mentioned in INR, Request readers to convert and calculate these according to readers demographics. Thank you.

Location of the unit:

The location for the unit should be well suited for the proposed activity and all infrastructure facilities should be available.

Market potential:

Now a days, Bakery products are an item of mass consumption. In view of its low price and with rapid growth and changing eating habits of people, bakery products have gained popularity among masses of the sector overall. The growth rate of bakery products has been tremendous in both urban and rural areas. Increased number of working women, Change in Indian meal pattern, increased income, urbanization etc., has increased the demand for bakery products.

Quality control & standard:

In order to have a long term business and growth, one should follow strict quality control norms and hygienic conditions as per Health regulations. The quality precautions should be maintained carefully at every stage in the production process. All ingredients used and expiry date will have to be clearly spelt out on each packed snack food.

Bakery Products Manufacturing process:

Cakes:

To make cakes, wheat flour and baking powder along with cream, sugar and ghee is mixed thoroughly till it becomes fluffy. Then mixture of beaten eggs is added to it along with caramel color and chopped fruits before the mixture are poured into cake pans and baked for around 30-40 minutes.

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Raw Materials:

The major raw material required is flour, maida, etc .Other items are yeast, sugar, ghee, milk powder, salt, edible color and flavors. All the materials are locally available.

Cost of the Project:

Particulars	Amount
LAND	OWNED
BUILDING	OWNED
MACHINERY	3,50,000.00
WORKING CAPITAL	1,86,000.00
TOTAL	5,36,000.00

MEANS OF FINANCE:

Particulars	Amount
Promoters Contribution	89,700.00
Term Loan From Bank	2,97,500.00
Working Capital Loan from Bank	1,49,000.00
TOTAL	5,36,000.00

WORKING CAPITAL REQUIREMENTS:

Sl.No.	Item	Period	Amount(Rs)
1	Stock of raw material	25 days	81,750.00
2	Work in process	2 days	6,540.00
3	Stock of finished goods	3 days	9,810.00
4	Receivable	15 days	49,050.00
5	Working expense	30 days	39,150.00
	Total		1,86,300.00

PRODUCTION AND SALES AT 60% CAPACITY(MONTH)

Sl.No.	Item	Quantity	Unit	rate	Amount(Rs)
1	Fried Chips	100	KG	75	7,500.00
2	Pakka Vada, Mixture, Sweet fry etc	70	KG	70	4,900.00
3	Cake of different types	150	KG	300	45,000.00
4	Puffs Cutlet Samosa	15000	Nos.	5	75,000.00
5	Other food items	7500	Nos.	5	37,500.00
	Total				1,69,900.00

COST OF PRODUCTION AND PROFITABILITY ANALYSIS

Particulars	1st Year
No. of working days	300
No.of shifts	1
Installed Capacity	27,74,000.00
Capacity Utilization	60%
Production	20,38,800.00
Sales	20,38,800.00
Cost of Production
Raw materials	9,81,000.00
Salaries	42,000.00
Wages	3,24,000.00
Power Charges	33,600.00
Repairs & Maintenance	7,000.00
Insurance	3,500.00
Depreciation	35,000.00
Total	14,26,100.00
Gross Operating Profit	6,12,700.00
Administrative & Selling expenses	70,200.00
Financial expenses
1. Interest on Term loan	39,420.00
2. Interest on WC loan	20,860.00
Total	1,30,480.00
Net Operating Profit	4,82,220.00
Income Tax	13,000.00
Net Profit	4,69,220.00
withdrawals	1,00,000.00
Add Depreciation	35,000.00
Cash Surplus	4,04,220.00

BREAK EVEN ANALYSIS

Sales	20,38,800.00
Variable cost	14,14,660.00
Contribution	6,24,140.00
Fixed cost	1,41,920.00
BEP (%)	23 %

CONCLUSION:

Bakery Products manufacturing is an economically viable project to start. One can easily apply and approved their loans from Banks or Other financial institutions by approaching with a good project plan and projections in these way. Hope this blogs helps for starting your Bakery Manufacturing unit. Don’t forgot to send me some free cookies 

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