INDEX

SR.NO PARTICULAR
1 INTRODUCTION
2 PROJECT AT GLANCE
3 PARTERS BACKGROUND
4 IMPLIMENTATION SCHEDULE
5 JUSTIFICATION OF LOCATION
6 PRODUCT INFORMATION
7 PRODUCTION PROCESS
8 FINANCIAL INFORMATION
9 TERN OVER (PER MONTH)
10 PROFIT
11 RATIOS

1
 INTRODUCTION
This report is intended to set for the project that has been
undertaken by given unit. So that, that is nature has been understood, its
projected operations comprehended and its responsibilities. This project
contains projection bearing and profitability of the venture and its worthiness.
It also introduces and gives personification data of the manufactures with brief
history of all the partners and firm with location and location advantages with
primary facts of the product and project that is cake.

2
 PROJECT AT GLANCE

1. NAME OF THE UNIT :

2. LOCATION : Udhyog nagar industrial estate,

Gondal road,
Rajkot.

3. PRODUCT : CAKE

5. FORM OF ORGANISATION : Partnership Firm

6. SIZE OF ORGANISATION : Small Scale Organization

7. PARTNERS : 3

8. S.S.I.REGISTRATION NO. : Application is made

3
 PARTNERS BACKGROUND
PARTNER: 1

PARTNER: 2

PARTNER: 3

4
 IMPLIMENTATION SCHEDULE

The implementation of the project may require about 5 to 6

months for getting into commercial production. The schedule of implementing
the part of activities is as follows;

Preparation of project report,

selection of site, registration as 3 month
SSI unit

Availability of finance, selection of

machinery, procedure of 1 month
machinery 1 month
Erection and commission trial run 1 month
Recruitment of Labour and
month
commercial production

5
 JUSTIFICATION OF LOCATION
Location of industry plays a dominant in success or failure of the
company therefore the location of an industry is determine by taking into
consideration the following factors;

1. SITE AND SERVICES:

The Udhyog nagar industrial estate a well establishes Industrial
area. So, services like bank post, telephone Etc. is easily available
and the site is well located with a lot free space around and well
leveled based.

2. AVAILABILITY OF RAW MATERIALS:

The raw material and machine are easily available that are
condensed milk , flour, sugar, white butter, baking powder, soda bicarb,
vanilla, liquid milk, salt, etc. hence availability of raw material will not be a
problem for the unit.

3. AVAILABILITY OF RAW MATERIAL:

All kind of Labour such as unskilled semi skilled is easily
available in the estate. Even if we does not keep on permanent basis. They
can be employed on contract based. This again will not be any problem.

4. TRANSPORTATION:
It is prerequisite for a unit to have proper transportation facility. It
is required for getting raw materials as well as distributing finished goods. In
terms a transportation facility udhyog nagar is having good location.

5. OTHER FACILITIES:
Among with all above mentioned facilities like, the insurance
companies, tele communication services, post offices services, ect are
available in the near by area.

6
 PRODUCAT INFORMATION
Baking and confectionary products are now consumed in mass
quantity. But unlike in advanced countries the per capita consumption of the
product in India is still low. Cake the sweet preparation of wheat, usually with
chemically leavening agents, has become very popular. By using baking oven
in the houses, the cake of our own choice taste and flavors can be made. To
make it more convenient like other ready mixes, cake mixture is made which
will give the dough, after adding milk/water to it. And dough is ready for cake
making in baking oven in the house.

7
 MACHINERY & EQUIPMENT
1. Flour sifter fitted with 3 H.P. motor.
2. Micro pulverizes complete with motor.
3. Mixer.
4. Cabinet model electrically operated oven.
5. Polythene bag sealing machine.
6. Tools, treys.
7. Office equipment & furniture.

SUPPLIERS
1. M\S. nag pal brothers,2789 zerawar singh marg, Delhi
2. M\S. nag pal engg. Works, lahorigate, patiala
3. M\S batliboi & co. (P) ltd., narsimharaja road banglore 560002.
4. M\S. novel engg. (P) ltd. Sambava chamber, sir phiroz road, Bombay

8
 RAW MATERIALS

MAIN RAW MATERIALS

Flour
Sugar
Milk powder

Butter

ADDITIONAL RAW-MATERIALS

Condensed milk
White butter
Baking powder
Soda bicarb
Vanilla essence
Liquid milk
Fat (butter)
Salt
Essence
Water
Whole eggs.

9
 Market Potential
Target market : Local public
Hotel
Restaurant
Coverage : Gujarat
Competitors : Channel backery shop,
Local backery shop
Pick selling periods : December
Consumer behavior : In Gujarat specially most of the people are
used to use or consume vegetarians food. So we introduce egg less
cake mix specially to cover such people (consumers).
Pricing strategy : While at the introducing stage at against the
big competitors we have adopt penetration price to cover maximum
consumer.

Moreover the Gujarat is the state where more and more

festivals are celebrated. Because Gujarat is the one of the developed
state of India. So I think market of cake in Gujarat is wide.

10
 PRODUCTION PROCESS
The main ingredients in the cake making are flour, sugar, milk
powder or butter. The ready cake mix can be egg less cake mix or cake mix
with egg. There are different types of cake likes walnut cake, sponge cake,
egg less cake etc.

The flour is sieved first to remove foreign particles and then

mixed with sugar and other ingredients except fat Butter. The mixed material
is then dried in an oven and ground in the pulverize. The mixture is then
packed in kg. And 1 kg. Packs in polythene and then in cartoons of 10 kg. /
15kg. Size for transportation and storage.

These mixes show very good results when dough is made by

adding milk, fat etc. by the consumer at the time of preparation. Approximate
formulations of egg less cake and sponge cake are as follows. The milk or
whole egg is added after taking the packet of cake mixture as per the
proportion shown in the formulation

Egg less cake: Gms. Sponge cake

Gms.
Condensed milk 200.00 flour 1000.00
Flour 1000.00 sugar 1000.00
Sugar 1000.00 fat 700.00
White butter 500.00 baking powder 15.00
Baking powder 50.00 milk powder 50.00
Soda Bicarb 12.50 salt 5.00
Vanilla 10.00 Orange essence 2.50
Liquid milk 750cc. Vanilla essence 5.00
Water 450
Whole eggs 750

11
 QUALITY SPECIFICATION
There is no rigid specification for instant mixes. However, the
product should be manufactured as per PFA (prevention of food adulteration).
Act exercise by the local health department authorities. The quality
specifications about moisture content and bacteriological count etc. are
required to be looked into.
.

12
 PRODUCTION CAPACITY
PARTICULARS RS.

EGGLESS CAKE MIXTURE

kg. Packets
20,000 nos...
25.00 Rs. selling price 5,00,000
(B) 1 kg. Packets
15,000 nos.
40.00 Rs. Selling price 6,00,000

SPONGE CAKE MIXTURE

kg. Packets
20,000 nos.
40.00 Rs. Selling price 8,00,000
1 kg. Packets
40,000 nos.
35.00 RS. Selling price 14,00,000

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 POWER REQUIREMENT
The power requirement is 20 H.P.

POLLUTION CONTROL
It is not pulling the environment at any ways like air, water, sound, etc.

ENERGY CONSERVATION
Selection of proper size pulleys. Suitable size induction motors should be
used for pulverize, shifter and other power driven instruments.

14
 FINANCIAL INFORMATION
Financial mgt. has a greater importance in business. Finance is
the life blood for any business. A business units needs finance fore the
production of goods, services as well as their distributions.

Without adequate finance no business can operate successfully

even the manufacture having technical as well as operative skill can not avoid
disadvantages of inadequate finance or insufficient finance and invites heavy
loss and consequently leads wears bankrupt, so it is highly business
organization has it own systematic and proper financial dept.

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 SOURCES OF CAPITAL
PARTICULARS RS.
OWN CAPITAL 10,00,000
BORROWED CAPITAL
Public deposits 4,00,000
Bank loan 6,55,000
TOTAL 20,55,000

INTEREST ON CAPITAL
PARTICULARS INT.RATE RS.
OWN CAPITAL 8% 80,000
BORROWED CAPITAL
Public deposits 15% 60,000
Bank loan 13% 85,800
TOTAL 2, 25,800

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 FIXED CAPITAL
LAND: Land shead 150 sq. meter at Rs. 4000 per square meter, so total
cost is 6, 00,000.

MACHINERY AND EQUIPMENT:

NO. PARTICULAR RS.

1. Flour shifter fitted with 3 H.P. motor 50,000
2. Micro pulverizes complete with motor. 60,000
3. Mixer 25,000
Cabinet model electrically operated oven with 48
4. trays each 32 1651.0 with thermostatic control 1,25,000
and other accessories.
Weighing machine 15,000
5. (A) plat form type(capacity 100kg)
(B) Table model. 10,000
6. Polythene bag sealing machine 15,000
7. Miscellaneous equipment, tools, treys etc. 50,000
8. Official equipments and furniture 1,00,000

TOTAL 4,50,000

NO. PARTICULARS RS.

Total of machinery and equipment 4,50,000
ADD: electricity installation charges 50,000

TOTAL 5,00,000

TOTAL FIXED COST

PARTICULAR RS.
(A) Land 6,00,000
(B) machinery 4,50,000
(C) electricity installation 50,000
TOTAL 11,00,000

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 WORKING CAPITAL MANAGEMENT

NO OF RS.
PARTICULARS SCALE
EMP. (PM)
Manager 1 4,000 4,000
Accountant 1 2,500 2,500
Clerk-cum-typist 1 2,000 2,000
Clerk-cum-chowkidar 2 1,100 2,200
Mechanic/supervisor 1 2,200 2,200
Skilled Labour 2 2,200 4,400
Unskilled Labour 7 1,100 7,700
TOTAL SALARY WAGES 15 25,000
Perks at 20% of salary 5,000
TOTAL 30,000

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 RAW MATERIAL & PACKAGING
PARTICULARS QNTY. RS.

Flour at Rs. 14 per kg. 1.7 mt. 23,800

Sugar4 at Rs. 15 per kg. 1.2mt. 18,000
Condensed milk at Rs.120 per kg. 1.0 mt. 1,20,000
Baking powder 40.0 kg.
Soda bicarb 8.0 kg. 25,000
Salt 2.5 kg.
Flavors 500
Milk powder at Rs. 80 per kg. 50.0 kg. 6,000
Packaging materials
I.e. Polythene, straps, Cartoons etc. 8000 8,000

TOTAL 2,01,300

UTILITIES: (PER MONTH)

PARTICULAR RS.
Power 2000 k.w. 2,400
Water 100 k.l. 400
TOTAL 2,800

19
 OTHER EXPENCES (PER MONTH)
PARTICULARS RS.
Postage 500
Telephone 1,000
Consumable storage 2,000
Repairs and maintenance 1,500
Transportation charges 1,000
Insurance 1,500
Sales expenses 5,000
Other miscellaneous expenses 5,000
TOTAL 17,500

TOTAL EXPENCES
PARTICULAR RS.
Total personnel expenses 30,000
Total raw material and packaging 2,01300
Utilities 2,800
Other contingent expenses 17,500
TOTAL 2,51,600

WORKING CAPITAL FOR 3 MONTHS

= Total expenses * 3 months

= 2, 51,600 * 3

= 7, 54,800

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 TOTAL CAPITAL INVESTED
PARTICULAR RS.
Fixed capital
Land 6,00,000
Machinery and equipment 4,50,000
Electricity installation charges 50,000
Working capital
Personnel cost(3 * 30,000 ) 90,000
Raw material and packaging(3 * 2,01,000 ) 6,03,000
Utilities (3 * 2,800 ) 8,400
Other contingent expenses (3 * 17,500 ) 52,500
Total recurring expenses (3 * 2,51,600 ) 7,54,800
TOTAL 26,08,700

COST OF PRODUCTION
PARTICULARS RS. RS.
Recurring cost 30,19,200
Depreciation
Land (5%) 30,000
Machinery (5%) 30,000
Office equipment (10%) 15,000 75,000
Interest on investment (18%) 2,25,000
TOTAL 33,19,200

21
 TURN OVER (PER MONTH)
NO. PARTICULARS PG.

1. A) egg less cake mix

500 gms @ Rs. 50 (no. 15,000) 7,50,000
1000 gms @ Rs. 80 (no.20,000) 16,00,000

2. B) sponge cake mix

500 Gms. @ Rs. 40 (no. 25,000) 10,00,000
1000 Gms. @ Rs 75 ( no. 20,000) 15,00,000

Total 48,50,000

22
 PROFIT
PARTICULARS RS.
Sales 42,00,000
LESS: cost of production 30,94,200
Gross profit (EBIT) 11,05,800
LESS: interest on capital 2,25,800
EBT 8,80,000
LESS: 35% tax 3,08,000

Earning after tax (profit) 5,72,000

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 RATIOS
1. NET PROFIT RATIO:

= NET PROFIT * 100

TURN OVER PER YEAR

= 5, 72,000 * 100

42, 00,000

= 13.62%

2. RATE OF INVESTMENT:

= PROFIT * 100

INVESTMENT

= 5, 72,000 * 100

20, 55,000

= 27%

3. BREAK EVEN POINT:

= FIXED COST * 100
FIXED COST + PBT
= 11, 00,000 * 100
11, 00,000 + 8, 80,000

= 55.55%

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