BABA BAKERY

1.

Introduction
(a) Scope:
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. 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
convenientfood.
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.
(b)Product:
Bread and Biscuits are our product, which constitute an important
item of bakery industry, have now become a common item of consumption among all
classes of people
(c) 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 420F. 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
(d) Marketability:
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

croresannually.
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.
(e) Location:
The best location for this SSI is mainly well developed market area.
Opp. Katargam Market, Katargam, Surat-395004
(f) Sources of financial/repayment:
There are in this business requirement of capital is not more. Here we
invest our own capital on the basis of requirement. So, we are not requiring any other
financial resources.

Particular

Rs.

2. Scheme
(a) Land and buildings(Rented)

36,000

(b) machinery and Equipment

60000

(c) Testing Equipment

(d) Other Fixed Investment:
i. Packing and forwarding charges
ii. Electrification and installation charges
iii. Cost of tools/jigs/fixtures
iv. Cost of office equipment
(e) Total Non-recurring expenditure (a)+(b)+(c)+(d)
(f) Staff and Labour:
i. Indirect Labour nos. and wages/p.m.
ii. Direct Labour nos. and wages/p.m.
Total salaries p.m [ (i) + (ii) ]

1500
1600
500
3500
1,03,100
3000
3,000

(g) Raw Materials and Consumables:

(Per month on single shift basis with specifications)
i. Indigenous
ii. Imported
Total Rs.
(h) Other item of expenditure:
(Per month on single shift basis)
i. Power and water charges
ii. Advertising and traveling
iii. Transport
iv. Commission to distributors/agents

37,300
.
37,300

(i) Total recurring expenditure: (f) + (g) + (h)

700
1000
.
42,000

(j) Working capital for 1 months 1 recurring expenditure

42,000

(k) Total Investment required:

i. Non-recurring expenditure
ii. Working capital for 1 months
Total:

1,03,100
42,000
1,45,100

(l) Total Cost of Production: (Per Annum)

i. Total recurring expenditure
ii. Depreciation on machinery and equipment(10%)
iii. Depreciation on building (Rented)
iv. Maintenance charges
v. Interest on total investment
vi. Welfare for staff
vii. Office stationery and postage, etc.
Total

5,04,000
6,000
5,000
1,000
1,500
5,17,500

(m) Profit and Loss Account:

i. By sale
Bread 20,000 loaves @ Rs.15/- per loaf
Biscuits 4,000 Kgs. @ Rs.70/- per kg
ii. Cost of production
iii. Profit (i) (ii) Approx. Total:

3,00,000
2,80,000
5,17,500
62,500

3. Profitability and Projections

(generally for about 5 to 10 year)
Phase of activity
Profitability of phases
4. Infrastructure

i.
ii.
iii.

Locational advantage
Availability of material/power/water/labour
Government policy

Break-Even Point
i. Fixed Costs: (executive salaries/depreciation/rent/interest
on investment and administration costs)
ii. Variable costs (direct labour/direct material/incometax/commission and administration costs)
Q (Biscuits) =

F . =. 78000
PV
70-22.38

= 1638 (quantity)

Q (Bread)

F . =. 78000
.
PV
30-22.38

= 10236(quantity)

78,000
37,300

Where Q = break-Even Quantity

F = Fixed Cost
V = Variable Cost per unit
P = Sales Price per unit

5. Names and Address of Suppliers:6. Remarks

Seal and Date
Other Information:Raw Material (per month)
Sl.No. Particulars

Qty

Rate

Amount Rs.

Flour

1,700 kg.

16

27200/-

Sugar

100 kg.

Rs.28 / kg

2800/-

Vegetable fat

16 kg.

Rs.70 / kg

1120/-

Salt

30 kg.

Rs.4 / kg

120/-

Dry Yeast

12 kg.

Rs.150 / kg

1800/-

Chemical additives

L.S

--

500/-

Packing Materials

L.S

--

500/-

Coal

1 Tn.

Rs.3260/Tn

3260/-

Total Cost of Raw Materials.

37300

Machinery & Equipment

Sl.No. Description

Nos.

Amount (Rs)

Dough Mixer

16,000

Baking Oven (coal fired)

24,000

Biscuit cutting & punching

mould

10

2,500

Proofing Racks

10,000

Hand Divider

4,000

Working Table

3,500

Total

60000/-