BISCUITS

QUALITY AND STANDARDS

: As per PFA/BIS specifications

PRODUCTION CAPACITY

: 200 tpa

1.0 PRODUCT AND ITS APPLICATIONS

Biscuits have a good food value with substantial energy, protein, carbohydrates and minerals apart
from pleasing texture and taste. Baking industry occupies an important position among Indian food
processing industries with an annual turnover of about Rs. 3000 crores. Bakery products are
ready to eat and convenient to use. Bread and biscuits form the major baked foods accounting for
over 80% of total bakery products produced. The industry largely continues to be in the unorganized
sector contributing to over 70% of the total production. Bakery products once considered as sick
man's diet, have now become an essential food item of a sizeable segment of society.

2.0 MARKET POTENTIAL

The per capita consumption of bakery products is about 2 kg per annum
as against 50-100 kg of bread and 10-15 kg biscuits in western countries.
Even if the consumption figures are doubled, the bakery industry can
make phenomenal strides. Nearly 55% of biscuits are consumed by rural
sector. The higher consumption of biscuits in rural area could be attributed
to its use as snack, longer shelf life and pleasing taste. Bakery products
still remain the cheapest of the processed ready to eat foods and biscuits
occupy an important place as they contribute over 33% to the total
production. Nearly 80% of the biscuits are produced in small scale sector.
The growth rate for bakery products is estimated at 10% per annum. The demand for bakery
products will continue to increase in future.

3.0 BASIS AND PRESUMPTIONS

a)

The unit will work for 300 days per annum on single shift basis.

b)

The unit can achieve its full capacity utilization during the 2nd year of operation.

c)

The wages for skilled workers are taken as per prevailing rates in this type of industry.

d)

Interest rate for total capital investment is calculated @ 12% per annum.

e)

The entrepreneur is expected to raise 20-25% of the capital as margin money.

f)

The unit would construct its own building.

g)

Costs of machinery and equipment are based on average prices of machinery manufacturers.

4.0 IMPLEMENTATION SCHEDULE

Project implementation will take a period of 8 months. Break-up of the activities and relative time
for each activity is shown below:

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v Scheme preparation and approval

01 month

v SSI provisional registration

1-2 months

v Sanction of financial supports etc.

2-5 months

v Installation of machinery and power connection

6-8 months

v Trial run and production

01 month

5.0 TECHNICAL ASPECTS

5.1 Location
Biscuits can be manufactured at any location by considering the market, availabilty of electricity
and road connectivity.
5.2 Process of Manufacture
Ingredients like maida, sugar, salt, vanaspati, flavour, modifiers are mixed into a dough. Other
ingredients are liquid glucose, milk powder, chemicals, essence, glycerine monosterate. The dough
is broken into fixed sizes suitable for feeding biscuit moulding cutting machine. The moulded
biscuits are placed onto mesh-belt-conveyor and baked at temperature around 300C as they
traverse through the oven. At the end of baking, refined oil / vanaspati is sprayed on hot biscuits.
These are cooled and wrapped.
5.3 Quality Control and Standards: As per PFA and BIS spectification

6.0 POLLUTION CONTROL

There is no major pollution problem associated with this industry except for disposal of waste
which should be managed appropriately. The entrepreneurs are advised to take "No Objection
Certificate" from the State Pollution Control Board.

7.0 ENERGY CONSERVATION

Proper care should be taken to avoid wastage of electric power.

8.0 PRODUCTION CAPACITY

Quantity

200 tpa

Installed capacity

900 kg/day

Optimum capacity utilization

70%

Working days

300/annum

Manpower

24

Motive Power

40 kW

Water

10 kL/day

Utilities

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9.0

FINANCIAL ASPECTS

9.1

Fixed Capital

9.1.1

Land & Building

9.1.2

Amount (Rs. lakh)

Land 800 sq.m.

Built up Area 400 sq. m.

:
:

Total cost of Land and Building

Machinery and Equipment

Description

Amount (Rs. lakh)

Flour sifting machine, sugar grinder, dough

mixer, rotary cutting and moulding machine,
dough breaker, baking oven (conveyor belt type),
oil spraying unit, cooling conveyor, packing tables,
wrapping machine, heat sealer, laboratory equipment

8.00

0.80
0.60
------9.40

Consultancy fee, project report, deposits with

electricity department etc.

1.60

Total Fixed Capital

24.50

Erection and electrification

@ 10% of machinery cost
Office furniture & fixtures
Total
9.1.3

9.1.4

01.50
12.00
------13.50

Pre-operative Expenses

(9.1.1+9.1.2+9.1.3)
9.2

Recurring expenses per annum

9.2.1

Personnel
Designation

No.

Factory Manager
Supervisory staff
Office & Sales Assistants
Technician
Skilled workers
Unskilled workers

1
2
4
1
4
12

Perquisites @ 15%

Total :

Salary
Per month
7,000
5,000
4,000
3,500
2,500
2,000

Amount
(Rs.lakh)
0.84
1.20
1.92
0.42
1.20
2.88
8.64
1.27

----

------

24

9.91

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9.2.2

Raw Material including packaging materials

Particulars

Amount (Rs. lakh)

Maida, sugar, salt, vanaspati, liquid glucose,

milk powder, essence, glycerene monosterate,
ammonium bicarbonate, baking soda
Wrapping paper, cartons
Total:
9.2.3

Utilities

3.70
0.05
---------3.75

Total:
Other Contingent Expenses

Amount (Rs. lakh)

Repairs and maintenance@10%

Consumables & spares
Transport & Travel
Publicity
Postage & stationery
Telephone
Insurance

0.94

1.31

0.10
-------2.35

Total:
9.2.5

9.3

9.4

6.00
------30.00
Amount (Rs. lakh)

Power
Water

9.2.4

24.00

Total Recurring Expenditure

Amount (Rs. lakh)

(9.2.1+9.2.2+9.2.3+9.2.4)

46.01

Working Capital
Recurring Expenditure for 2 months

7.66

Total Capital Investment

Fixed capital (Refer 9.1.4)
Working capital (Refer 9.3)

Amount (Rs. lakh)

24.50
7.66
--------32.16

Total:

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10.0

FINANCIAL ANALYSIS

10.1

Cost of Production (per annum)

Amount (Rs. lakh)

Recurring expenses (Refer 9.2.5)

Depreciation on building @5%
Depreciation on machinery @10%
Depreciation on furniture @20%
Interest on Capital Investment @12%

46.01
00.60
00.88
00.12
04.30
-------51.91

Total:
10.2

10.3

Sale Proceeds / Annual turnover

Item

Qty.
(MT)

Rate
per kg

Amount
(Rs. lakh)

Biscuits (assorted)

200

30.00

60.00

Net Profit per year

= Sales - Cost of production
= 60.00 - 51.91
= Rs. 8.09 lakh

10.4

Net Profit Ratio

=

Net profit X 100

Sales

8.09X 100
60

= 13.48%
10.5

Rate of Return on Investment

=

Net profit X 100

Capital Investment

8.07 X 100
32.16

25.09%

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10.6

Annual Fixed Cost

Amount (Rs. Lakh)

All depreciation
Interest
40% of salary, wages, utility, contingency
Insurance
Total:
10.7

1.60
4.30
5.76
0.10

11.76

Break even Point

= Annual Fixed Cost X 100
Annual Fixed Cost + Profit
=

11.76 X 100
11.76 + 8.07

= 59.30%

11.0 ADDRESSES OF MACHINERY AND EQUIPMENT SUPPLIERS

Auto Bisk Plant Co.
East Cross Road No. 32
Ashoka Road
Mysore 570 001

Sembhi Engineers
4-5, New Colony
Opp. KMV College
Jalandhar 144 004

Electrotherm Furnaces Pvt. Ltd.

32-B, II Phase
Peenya Industrial Area
Dasarahalli P.O.
Bangalore 560 058

Reliance Engineering Works

K.No. 4065, Sec. 46-D,
Chandigarh 160 047

Associated Furnace Manufacturing Co.

R.Munivenkatappa Building
Kammagondanahalli
Opp. HMT Industrial Estate
Bangalore 560 015
Edward and Sons
Ambedkar Nagar
Deevarjeevanhalli
Bangalore 560 045
Mangal Engineering Works,
Factory Aea
Patiala 147 001

Authentic Designer
C-112, Sector 10
Noida 201301 (U.P.)
Ghaziabad Printing and Packing Industry Pvt.
Ltd.
Opp. Ganesh Tent House
Near DPS, Meerut Road
Ghaziabad (U.P.)
Aroras Box and Cartons Pvt. Ltd.
39th K.M., Delhi-Jaipur Road
(N.H. No. 8)
Gurgaon 122 001 (Harayana)

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Jain Packaging Products

33, Sarai Pipal Thala
Behind Mangat Ram Dal Mill
Subzi Mandi
Azadpur
Delhi 110 033

Nagpal Brothers (Regd)

C-127, Phase-II
Mayapuri Industrial Area
New Delhi 110 064
J.SC. Dass and Bros.
33/8, Anath Nath Dev Lane,
Kolkata- 700037

United Packaging
19/21, Shakti Nagar
Delhi 110 007

Ever Fresh Product

Ram Bagh
Indore (M.P.)

Rajat Electronics
1309, A-5, First Floor
Pan Mandi
Sadar Bazar
Delhi 110 006

New Engg. Industries

Firozpur Road
Ludhiana

R.D.Singal and Co.

A-81/2, Wazirpur Industrial Area,
Delhi 110 052

Bijoy Engineers
Mini Industries, Arimpur,
Trichur- 680611 (Kerala)

Ambica Packers and Printers

2687, Kinari Bazar,
Dariba Kalan
Delhi 110 006

Baker Enterprise,
23, Behra Engg Lane
Near Peeragarhi
New Delhi 110 041

Control Print (India) Ltd.

A-27, Swasthya Vihar
Vikas Marg
Delhi 110 092

Flora Engg. Corp.

28-A, Phoolbag, Rampura
New Delhi 110 035

Baker and Co.(P) Ltd.

Oomrigal Building,
Opp. Crawford Market
Mumbai 400008

12.0 OTHER SPECIAL FEATURES

A careful selection of product mix is necessary based on the local market demand and
availability of raw materials. The facilities can also be utilised to manufacture different varieties
of biscuits.

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