DETAILED

PROJECT REPORT
OF BREAD
MANUFACTURING
UNIT

PRAPARED BY: Varun Jain (promoter)

 TABLE OF THE CONTENT
1 Executive summary
a) Business profile
b) Promoter’s profile
2 Entrepreneurial explanation to be applied
3 Minimum required land to setup the entrepreneur and location
4 Raw material
5 Production process
6 Proposed capacity
7 Manpower requirement
8 Marketing strategies
9 SWOT analysis
10 POLLUTION CONTROL
11 STATUTORY/ GOVERNMENT APPROVALS
12 List of Annexure for Financial Analysis
Summary report Annexure-1
Plant and machinery Annexure-2
Manpower requirements Annexure-3
Projected revenue details Annexure-4
Projected cost and source of finance Annexure-5
Important ratios Annexure-6
Cost-sheet Annexure-7
Overhead absorbtion sheet Annexure-8
Bank loan repayment schedule Annexure-9
Depreciation schedule Annexure-10
Profitability estimate Annexure-11
Projected balance sheet Annexure-12
Payback period Annexure-13
a)Business profile:-
General Business Information
•Name of the Promoter : Mr. Varun jain

•Business Name : Jain Nutrients

•Status of the Promoter : Proprietor

•Head Office Address :

•Phone Number : 9780389157

•Email Id : varunjainpatti@gmail.com

Business Details
•Date of Creation : New

•Main Areas of Activities of Business : Manufacturing of different

varieties of bread

•Main Product : Bread

•Principal Customer

Industries and

Geographies : Companies, factories,

Corporates, families and

Individuals working outside the

hometown, Business Capacity

Human Resources
b):- Promotor’s profile
NAME : Varun jain
ADDRESS : H. NO. 1609/14 jain mohalla near bus
stand patti (t.t)
PH. NO. : 9780389157
E-MAIL ID : varunjainpatti@gmail.com
AGE : 23 YEARS
QUALIFICATION: Graduation with commerce background

OBJECTIVES : To provide good quality products

generation of employment in my society
alround development of my locality

AREAS OF EXPERTISE:-
EXPERIENCE: more than 2 years of working as an acountant
with GST, income-tax and other business
related legal compliances
COMPUTER KNOWLEDGE:- a) can maintain books of accounts of the
whole business using various
accounting softwares
b) full basic knowledge of all basics
 Retail Operations Management:-
•Deputizing for the Dept Manager, supporting and overseeing
shop operations.
•Overseeing the recruitment of new sales and retail staff.
•Responsible for training and induction programmes for new
staff members.
•Ensuring a consistently high standard of presentation in
stores.
•Working closely with visual merchandisers.
•Enhanced Store inventory processes and increased vendor
performance through improved communication and follow up.
•Maintaining accurate records of all pricing, sales, and activity
reports, day to day accounts and banking operations.
•Controlling shrinkage, wages, write-off, cash control and store
expenditure.
•Producing data and reports for interested users of accounting
ie. Govt, borrowers, suppliers, bank etc.

Personnel Data:-
Date of Birth : MAY 4, 1996
Marital Status : Unmarried.
Languages Known: English, Punjabi, and Hindi,
Entrepreneurial explanation to be applied:-
Bread is 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. Bakery
products generally consumed as supplement foods (or
breakfast food) in between the meal times almost in
every Indian home and hotel. Bread also used to
prepare sandwiches, bread toast, bread rolls,
breadcrumbs etc. A huge consumption of bakery
products because of mainly two reasons,
firstly, they are ready-to-eat or convenience food to eat
anywhere at any time and secondly,
they can satisfy appetite
where industrial working group population is more. Bread
consumption is increasing day by day and these are being
increasingly used for various feeding programmed for
children managed by voluntary agencies and State
Departments of Health. Bread, 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,
bread pakoda/ sandwich makes a tasty and nutritious snack.
It has become more popular as a convenient food. The
manufacture of bread is exclusively reserved for small-scale
sector. Thus, due to demand it is a good project for
entrepreneurs to invest
MARKET POTENTIAL
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.
Keeping in view these facts, the manufacture of bread has
substantial scope for development in smaller towns villages and
backward areas and can provide good number of employment
opportunities at different levels.
Now a days Few Indian Major Players are there in this type of
business, which are as under
•Bonn Nutrients Pvt. Ltd.•
Britannia Industries Ltd.•Candico(I) Ltd.
•Daily Bread Gourmet Foods (India) Pvt. Ltd.
•Elite (India) Ltd.
•Heritage Foods Ltd.
•Just Desserts Ltd.
•Man singh Hotels & Resorts Ltd.
•Modern Food Inds. (India) Ltd.
•Nimbus Foods Inds. Ltd.
•Saturday Club Ltd.
Etc.

MINIMUM REQUIRED LAND TO SET-UP THE

ENTREPRENOUR:-
Shed of around 1200 sq. foots. which can accommodate the whole
manufacturing unit as well as space for storing the finished goods

The location choosen by us is well suited for the proposed activity

and all the required infrastructure facilities are available.
RAW MATERIAL(REQUIRED FOR 1 DAY PRODUCTION):-
MAIDA 400kg
Sugar 10 kg
Yeast 4kg
Salt 4 kg
Refind 13 kg
(supply of all these are easily tied-up)

DETAILED MANUFACTURING PROCESS:-

In India straight dough method is used for making yeast-raised bread.
All the ingredients are mixed together before fermentation. A typical
mix of ingredients for bread consists of:
1. MAIDA
2. Water
3. Sugar
4. Salt
5. Shortening or ghee
6. Compressed yeast

A loaf of 400 gms requires about 270-275 gms flour and

corresponding amounts of other ingredients. First yeast suspension in
a portion of water and sugar is made. Sugar, salt and yeast food are
mixed with water. Flour mixed with milk powder is mixed into it.
After short mixing yeast suspension is added. Shortening is added any
time after the flour has been wetted and the dough has been formed.
Mixing is continued until the mass becomes smooth and elastic and
does not stick to the bowl. Mixing takes about 20-30 minutes, over
mixing should be avoided.

The dough is then allowed to ferment, at about 27°C and 78 per

cent relative humidity, to the desired extent. The dough is divided into
uniform pieces of the desired weight (450 gms}. The dough pieces are
rounded using a machine (rounder). The rounded dough is allowed to
rest before being formed for panning. This time is called intermediate
proofing (8-15 minutes), during this time dough recovers from being
divided and rounded. The dough pieces are moulded (or shaped) so
that they may form loaf of the desired shape.

The pieces are put in greased pans. The pans are put in proof box at
about 37°C and 88 percent relative humidity to get the right extent of
final proof. This usually takes about 60-70 minutes. The pans are next
placed in an oven and heated to 205-230UC. The baking time depends
on the size and shape of the loaf and its sugar content. When the crust
of the bread assumes a brown colour the pan is taken out from the
oven. The baked loaves are brushed with butter to give glaze and
prevent cracking of the crust. The loaves are allowed to cool and
sliced on a slicing machine and wrapped in a waxed printed paper
which is then heat sealed.

PROPOSED CAPACITY:-
It is recommended to install bread making capacity of 600 kg per day
considering 350 working days in a year. Each bread would be of 400
gms and 1500 breads would be made everyday it is minimum
economic capacity of a unit manufacturing breads is 5.25 lakh loaves
of 400 gms each per annum based on a single shift operation of 350
days working schedule in a year for achieving earlier operating break-
even point

MANPOWER REQUIREMENT:-
whole of the work shall be outsouced
to contractors @ rs.1000 per quintal finished product
OUR MARKETTING STRATEGIES:
SEGMENTATION TARGET POSITION Effort to increase a company’s
precision marketing, We have done the segmentation on the basis of
the following variables: Geographic Demographic
Psychographic Behavioral

• Geographic: Divide the market in different segments according to

areas and markets. E.g. Ferozepur district, Tarn-Taran

district, Amritsar district, patti (local) etc. we have

already dealt with 2 Different distributors of different

locations who shall supply the product at their own

cities

Demographic: Divided markets into groups based on variables such

as age, income, social class, occupation & their life

cycle.

•Psychographic: To analyze the psyche of the people of our society

we divide them in social class, life style and

personality.

Behavioral: In behavioral we are focusing on benefits, interest

of people.
MARKET MIX’S:-
PRICE:-

Product Quantity (in gms) MRP (in Rs.)

400 25
1000 40
• PLACE: Our distribution channels in different cities are: Bakeries

Super stores Departmental stores

canteensrestaurants, dhaba, We mainly focus on the

retailers & Bakeries because they are the only source which

delivers our product to the final consumer.

• PRODUCT: Benefits Flavors Strong bones 8 hours energy

Vitamin A & D

Features Delight bread has different flavors Make the

bones strong Repair the dead tissues of the body

Source of creating blood Enriched with vitamin A & D

Glow the body & skin Reduce fat & Carbohydrates

•PROMOTION: at the beginning stage the printed media shall remain

a best source of promotion to

Us. But in future can also shift to electronic media

any time during the smooth and

Efficient running of business.

SWOT ANALYSIS:-
In view of that, we were able to take stock of our strengths, our
weakness, our opportunities and also the threats that we are
likely going to be exposed to in our society as a whole. Here
is a preview of what we got from the critically conducted
SWOT Analysis for our business

• Strength:
Our strength lies in the fact that we have a product which
comes under the category of food that can meet the needs of a
wide range of customers. We have state of the art facility and
equipment that has positioned us to meet the demand of
products even if the demand tripled over night or if we had a
massive order to meet and emergency delivery deadline.

• Weakness:
The fact that we are setting up a bread manufacturing business in a
area with other bakeries might likely pose a challenge for us in
breaking into the already saturated bakery business in the nearby
loctions. . Nevertheless, we have plans to launch out with a big bang.
We know with that, we will be able to create a positive impression
and we have a proper handle when it comes to building on already
gather momentum.

• Opportunities:
The opportunities available to us are unlimited. Loads of people
consume breads, cakes and snacks on a daily basis, and all what we
are going to do to push our products to them is already perfected.
There are also loads of people who might want to learn how to bake;
as a result, they can readily find our government approved bakery
institute highly ideal for them to fulfill that goal.
 • Threats:
• The main threat in our business is the compulsory buy back
of the Expired goods in unfortunate depression periods.

POLLUTION CONTROL:-

STATUTORY/ GOVERNMENT APPROVALS:-

GST registration, FSSAI licence, approval from local authority
etc.
Summary report Annexure -1

Project cost & source of Break-even analysis Product basic details

finance
a)capital 1217160 At capacity 68% Raw Rate Finished Market
investment utilization material per kg. goods price
b)working 369070 1st year at % 100% per pc
capital capacity Maida Rs.23
utilization Sugar Rs.35
Total cost 1586230 Payback 1 year 11 Salt Rs.10 White Rs.17
Equity 586230 period months Yeast Rs.250 bread per pc
Bank loan 1000000 IRR 53.751% Refind oil Rs.80

Installed Capacity Units to Revenue Material Conversion Rent Depreciation Interest Net profit
capacity utilization be (in Rs.) required Cost
(1500units (in %age) produced for (A-B-C-D-
per day) In 350 @20per production E-F)
days pc (in Rs.)
YEARS (C) (D) (E) (F)
(A) (B)
1st year 100 525000 8925000 3559500 3940000 240000 146716 67385 971399
nd
2 year 100 525000 8925000 3559500 3940000 240000 146716 100441 938343
3rd year 100 525000 8925000 3559500 3940000 240000 146716 79326 959458
4th year 100 525000 8925000 3559500 3940000 240000 146716 55533 983251
5th year 100 525000 8925000 3559500 3940000 240000 146716 28722 1010062

Plant & Machinery Annexure -2

Sr. No. Particulars Amount

1 Rotary rack oven 569560
2 Spiral mixer 188600
3 Furniture & fittings 147600
4 Bread slicer 221400
5 Miscellaneous 90000
Total 1217160

Manpower requirements Annexure -3

Sr. No. Designation Numbers Rate per month Total

1 Supervisor 1 8000 10000
2 Accountant 1 20000 20000
3 Sweeper 1 5000 7000
Cook 1 4000 6000
 Projected revenue details Annexure -4

Year No. Of units to be Selling price per unit Annual revenue

produced in a year
(1500units/day*300
days)
1 525000 17 8925000
2 525000 17 8925000
3 525000 17 8925000
4 525000 17 8925000
5 525000 17 8925000

Projected cost and source of finance Annexure-5

(A) Capital investment:-

Plant & machinery 1217160

(B)working capital requirement:-

Stock of raw material 150000
GST input 219070
Debtors 125000
(-) creditors (125000)

Total project cost (A)+(B) 1586230

Sources of finance:-
Equity 586230
Bank loan 1000000
Total 1586230

Important ratios Annexure-6

Raw material holding period 15 days
Debtor collection period Maximum 5 days
Creditors payment period 10 days
Cost sheet Annexure-7

PARTICULARS COST PER YEAR COST PER UNIT @525000 units

in a year(in Rs.)
Raw material 3559500 6.76
Direct labour 1575000 3
Direct expenses 525000 1
Prime cost
Factory overheads 2226716 4.24
Cost of production 7877216 15

Fixed cost absorbtion sheet Annexure-8

DEPARTMENTS
PARTICULARS Manufacturing Miscellaneous Office Canteen Total
Salaries 100000 150000 250000 50000 550000
Depreciation 121716 10000 10000 5000 146716
@10%
STAFF MEAL 100000 20000 60000 20000 200000
Normal wear & 15000 10000 10000 10000 45000
tear
Annual servicing of 20000 N.A N.A N.A 20000
machinery
FUEL 540000 20000 N.A 10000 570000
ELECTRICITY 300000 7000 50000 3000 360000
Consumable stores 20000 5000 10000 50000 85000
Advertisements N.A 10000 N.A N.A 10000
RENT 120000 20000 90000 10000 240000
Total 1336716 252000 480000 158000 2226716
Total fixed cost Rs.
2226716

Annexure-9 EMI CACLULATOR

Loan amount 1000000

Rate of interest per annum 12%
No. Of instalments 60
EMI 22244
 CALCULATIONS OF DETAILS OF EMI
MONTHS EMI Principal Interest OUTSTANDING
repayment PRINCIPAL
1 22244 12444 10000 987755
2 22244 12367 9877 975388
3 22244 12491 9753 962896
4 22244 12616 9628 950280
5 22244 12742 9502 937537
6 22244 12869 9375 924668
7 22244 12998 9246 911669
8 22244 13128 9116 898541
9 22244 13259 8985 885281
10 22244 13392 8852 871889
11 22244 13526 8781 858362
12 22244 13661 8583 844701
13 22244 13797 8447 830904
14 22244 13935 8309 816968
15 22244 14075 8169 802893
16 22244 14216 8028 788676
17 22244 14358 7886 774318
18 22244 14501 7743 759816
19 22244 14646 7598 745170
20 22244 14793 7451 730376
21 22244 14941 7303 715435
22 22244 15090 7154 700344
23 22244 15241 7003 685103
24 22244 15393 6851 669709
25 22244 15547 6697 654162
26 22244 15703 6541 638459
27 22244 15860 6384 622598
28 22244 16019 6225 606579
29 22244 16179 6065 590399
30 22244 16341 5903 571458
31 22244 16504 5740 557553
32 22244 16669 5575 540884
33 22244 16836 5408 524047
34 22244 17004 5240 507043
35 22244 17174 5070 489868
36 22244 17346 4898 472522
37 22244 17519 4725 455002
38 22244 17694 4550 437308
39 22244 17871 4373 419437
40 22244 18050 4194 401386
41 22244 18231 4013 383155
42 22244 18413 3831 384741
43 22244 18597 3647 346244
44 22244 18783 3461 327360
45 22244 18971 3237 308389
46 22244 19161 3083 289227
47 22244 19352 2892 289875
48 22244 19546 2698 250328
49 22244 19741 2503 230587
50 22244 19939 2305 210648
51 22244 20138 2106 190509
52 22244 20339 1905 170170
53 22244 20543 1701 149626
54 22244 20748 1496 128878
55 22244 20956 1288 107921
56 22244 21165 1079 86756
57 22244 21377 867 65378
58 22244 21591 653 43787
59 22244 21807 437 21979
60 22244 22025 219 0

Depreciation on straight line value method Annexure-10

Particulars %age 1st year 2nd year 3rd year 4th year 5th year

Machinery :- 10%
Opening balance 1217160 1095444 973728 852012 730296
(-) depreciation 121716 121716 121716 121716 121716
Closing balance 1095444 973728 852012 730296 608580
Total depreciation 121716 121716 121716 121716 121716
Profitability estimate Annexure-
11
Particulars 1st year 2nd year 3rd year 4th year 5th year 6th year
No of working days 350 350 350 350 350 350
No. Of shifts per 1 1 1 1 1 1
day
(A) Incomes:-
Sales 8925000 8925000 8925000 8925000 8925000 8925000
(B) Expenses:-
Raw material 3559500 3559500 3559500 3559500 3559500 3559500
Direct labour 2100000 2100000 2100000 2100000 2100000 2100000
Power & fuel 930000 930000 930000 930000 930000 930000
Salary including 750000 750000 750000 750000 750000 750000
benfits
Printing & 8000 8000 8000 8000 8000 8000
stationary
Consumable stores 77000 77000 77000 77000 77000 77000
Repairs & 65000 65000 65000 65000 65000 65000
maintainence
Rent 240000 240000 240000 240000 240000 240000
Misc. expenses 10000 10000 10000 10000 10000 10000
Total of (B) 7739500 7739500 7739500 7739500 7739500 7739500
Profits before 1185500 1185500 1185500 1185500 1185500 1185500
interest &
depreciation
(A)-(B)
Depreciation 146716 146716 146716 146716 146716 146716
Interest 67385 100441 79326 55533 28722 3260
Net profit for the 971399 938343 959458 983251 1010062 1035524
year
Drawings 500000 500000 500000 500000 500000 500000
Transferred to 471399 438343 459458 483251 510032 535524
reserves & surplus
Cummunlative 471399 909742 1369200 1852451 2362483 2898007
reserves & surplus
 Projected balance sheet Annexure-12

Particulars 1st year 2nd year 3rd year 4th year 5th year
(1) Equity & liabilities:-
a)Proprietor’s funds 586230 586230 586230 586230 586230
b)Reserves & surplus:-
Opening balance 0 471399 909742 1369200 1852451
(+)P & L A/c 471399 438343 459458 483251 510032
Closing balance 471399 909742 1369200 1852451 2362483

Current liabilities:-
Bank loan 911674 745182 557575 346174 107962
Sundry creditors 125000 125000 125000 125000 125000

Total 2094303 2366154 2638005 2909855 3181675

(2)Assets
(A) fixed assets:-
Opening balance 1217160 1095444 973729 852012 730296
(-)depreciation (121716) (121716) (121716) (121716) (121716)
Closing balance 1095444 973728 852012 730296 608580

(B)current assets:-
Inventories 150000 150000 150000 150000 150000
Debtors 125000 125000 125000 125000 125000
Non- trade investments 700000 100000 1500000 1900000 2200000
Cash & cash equilants 23859 117426 10933 54599 98095
Total 2094303 2366154 2638005 2909855 3181675
Payback period (Pay-back period is the period at which the net inflow equals net outflow) Annexure-13

Year Cash flow P.V factor Present value of Cmmunlative

cash flows cash flows
1 971399 .893 867459 867459
2 938343 .797 747859 1615318
3 959458 .711 682174 2297492
4 983251 .635 624364 2921856
5 1010062 .567 572705 3494561
Payback period: 1 year 11 months

BACKWARD AND FORWARD INTEGRATION

. In case of forward integration, more varieties of bread such as fruit bread, milk bread,
whole wheat bread etc. may be introduced at appropriate time.

CONCLUSION
On examining the technical aspects like availability of raw materials, availability of skills and
opportunity of market, it can be stated that the project is technically feasible and
economically viable.

Disclaimer:
Only few machine manufacturers are mentioned in the profile, although many machine
manufacturers are available in the market. The addresses given for machinery
manufacturers have been taken from reliable sources, to the best of knowledge and
contacts. However, no responsibility is admitted, in case any inadvertent error or
incorrectness is noticed therein. Further the same have been given by way of information
only and do not carry any recommendation.