Small Industry Set up and Costing

Biscuit Factory Set up

Introduction
Biscuit is an important item of bakery industry. It has now become a common item of
consumption among all classes of people. With tea or coffee, biscuit makes a tasty nutritious
snack. Biscuit is highly nutritious, easy to digest and can be preserved for a long time.
By varying the ingredients and flavours it is possible to produce a variety of biscuits. About 50
per cent of the total biscuit production in our country is of glucose variety, thin arrow root
biscuits account for 10 per cent, salted variety around 5%, and sweet assorted variety like
coconut cookies, cream biscuits, etc about 25%. Govt. agencies like ITDC, Defence,
Railways, Airlines, etc. are the bulk consumers of biscuits. In recent years Bangladesh made
biscuits have also found ready acceptance in the export market.
Suggested Capacity
The minimum economic capacity of a unit manufacturing biscuits is 525 tons per annum
based on a single shift operation of 300 days working schedule in a year.
Land and Building
The unit may require about 1,500 sq.m. land with a covered area of about 800 sq.m. for
setting up this project. Although in the cost of the project below it is proposed to purchase
land and construct building, the unit should preferably acquire the land and building on rental
basis.
Raw Material
The annual requirement of main raw materials for the manufacture of 525 tonnes biscuits per
annum at 100% capacity utilisation is estimated as follows:
1. Wheat flour 345.00 M.T.
2. Sugar 105.00 M.T.
3. Vegetable fat 62.28 M.T.
4. Liquid glucose 8.16 M.T.
5. Misc. items, milk powder, yeast, colours, flavours, coconut, fat, packaging materials, etc.
Utilities
The unit may require a total connected load of about 80 KVA and a maximum demand load
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of about 75 KVA. Its annual requirement of water is estimated at about 3,000 KL.
Manufacturing Process
The process of manufacture of biscuits is nearly the same as used for bread up to the
fermentation period. In some cases such as vanilla wafers, fer-mentation is not done and
therefore yeast is not required. Soda crackers are usually made by the sponge Dtugh process.
The dough is then passed through biscuits moulding, stamping and cutting machines. The
pieces are then baked in an oven such as reel :ven, band oven, travelling plate oven, steel mesh
oven, etc.
The baking takes place at 200-260C and the time taken varies between 3-15 minutes
depending an the type and thickness of the biscuit being made. The baked biscuits are cooled
and sorted. The defecrve biscuits are removed and the rest wrapped in waxed papers and
packed. A typical ingredient mix for plain biscuits is given below:
1. Flour 200.00
2. Fats and shortening 50.00
3. Sugar 62.00
4. Invert sugar syrup 20.00
5. Ammonium bicarbonate 1.34
6. Sodium bicarbonate 1.80
7. Non fat milk powder 11.00
8. Eggs as reqd
9. Salt 2.00
10. Yeast 2.66
11. Flavour 0.44
12. Edible colours 0.22
Plant and Machinery
The main items of equipment and machinery required for setting up this project are as
follows:
1.Flour sifter
2.Sugar grinder
3.Dough mixer, 100 kg cap.
4.33" rotary moulder
5.33" automatic rotary cutting and punching machine with standard accessories
6.Dough brake with standard accessories
7.33" x 70" oil fried baking oven with standard accessories
8.Two-tier cooling conveyor with standard accessories
9.Stacking and packing table
1o.Oil spraying machine with heater
11.Dough trolley
12.Milk spray nozzles and air compressor
13.Other miscellaneous and laboratory equipment
Personnel
The unit may provide employment to about 42 persons including factory workers and staff for
factory supervision, administration and sales, and watch and ward, etc.
Estimated Cost of Project
The cost of a 525 tonnes per annum capacity biscuits project is estimated at $136986.3 as
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1. Land and site development $4109.58
2. Buildings $21917.80
3. Plant and machinery $60273.97
4. Technical know-how and engg. fees $2054.7
5. Miscellaneous fixed assets $8219.17
6. Preliminary and preoperative expenses $13013.69
7. Margin money for working capital $13698.63
8. Contingencies $13698.63
TOTAL $136986.3
Suggested Means of Financing
1. Long term loans from financial
institutions $90410.59
2. State cash subsidy $16438.35
3. Promoters capital $30136.98
TOTAL $136986.3
Subsidy is taken as 15% of the Fixed Capital Investment, however it varies from state to state,
ranging from 10% to 25% depending upon the category of identified backward area.

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