Project report for Tea rusk manufacturing

Introduction

India's bread market stood at $ 640.73 million in 2017 and is projected to grow at a CAGR of over 10.70%, in value terms, during 2018-2023, to reach $ 1024.54 million by 2023.  Market forces and demographic trends are continuously influencing supply and demand, expanding the working population and an increasing number of health-conscious consumers are aiding the Indian bread market. Moreover, increasing disposable income along with changing lifestyle and awareness regarding the consumption of a balanced and healthy diet to reduce health problems, are some of the other factors expected to propel the demand for bread over the next five years.

Bread is a staple foodstuff, which is made and eaten in most countries around the world. Bread products have evolved to take many forms, each based on quite different and distinctive characteristics. Over the centuries craft bakers have developed our traditional bread varieties using their accumulated knowledge as to how to make the best use of their available raw materials to achieve the desired bread quality. In some countries, the nature of bread-making has retained its traditional form while in others it has changed dramatically. 

The demand for processed and convenience food is increasing constantly due to urbanization, changing lifestyle and food habits of the people. The bakery industry in India is the largest of the food industries with an annual turnover of about Rs. 32000 million and has achieved 3rd position in generating revenue among processed food sector. With over 1.2 billion population and 350 million strong urban middle class and changing food habits, the processed food market is promising a huge potential to be tapped.
 

Product / Services & process

The firm will produce the food items as given below :

  1. White Bread – Salt (350g - 400g)
  2. White Bread – Sweet (350g - 400g)
  3. Milk Rusk (175g - 200g)

Production Process 

The following processes are carried out to get the final products:

For Bread: Proper mixing of all ingredients in right proportion as per formula, followed by dividing the dough into required portion and then intermediate proofing is necessary. Thus prepared dough is then subject to molding, panning, and followed by final proofing. Properly proofed or fermented dough loaves then baked at the required temperature and period. The baked loaves are then subject to de-panning, followed by cooling, slicing, and packing or wrapping.

For Rusk: Pre-mixing of ingredients as per formulation to form a dough of proper consistency. The dough is then divided and pieces are put into molds for proofing, followed by first baking, then cooling, second baking, and again cooling. Then the final product is packed tight for supply.

 

Raw materials / Consumables

Key ingredients such as Wheat flour, Milk powder, Custard powder, Edible fat, Sugar, Yeast, and Salt are sufficiently available from a nearby wholesale distributor. A variety of raw materials are available in each category. They vary in price, weight, taste, shape, color, smell, texture, cooking time, and contents such as protein, carbohydrate, and vitamins. The sources of raw materials are also different. For each product, specific raw materials or a blend of them are suitable. They are coming from different parts of the country. For eg: Wheat Flour of different varieties are coming from Uttar Pradesh, Punjab, Haryana, Rajasthan, and different places of our state. This has to be matched with the price and quality of similar products in the market. It can be procured from distributors or wholesale outlets.

Packing and packing materials play a vital role in the acceptability of the products. Primary packing material is printed BOPP (Biaxially Oriented Polypropylene) cover. The packing material should be safe and food-grade so that the contents should not react with any of the contents of the packet in hot or cold conditions. It should perfectly protect the content from wetness, water vapor, atmospheric oxygen, sunlight, and pests. The packing should withstand sufficient stress and pressure during transportation and rough handling. It should be attractive and convey the quality and specialty of the contents inside. There are different types of plastic packaging materials as poly ethane, polypropylene, LDPE, LDPP, etc. However, we are using premier quality such as BOPP (Biaxially Oriented Polypropylene). Printed cover can be made available by giving suitable designs to the companies supplying packing materials.

 

Plant & Machinery / Equipments

The details of the plant and machinery are enlisted in the economics of the project. They include Rotary Rack Oven, Kneading Machine, Bread Slicer, Weighing Machine, etc. The proposed machinery is identified with the utmost care from reputed machinery makers. The manufacturer has been chosen considering various factors like service area feasibility, no of years in business, local manufacturers as key clients, etc. There are other additional equipments which is required in the process of manufacturing and the same is enlisted in detail application of fund.

Rotary Rack Oven has the capacity of producing 162 Loaves in one shift. (One shift = 25 Mins of Baking time) 

The kneading machine has a capacity of dough output of 50 Kg in one shift. (One shift = 15 Mins of mixing time)

Bread Slicer - Has 32 blade capacity to slice two loaves at one time

Market potential & Strategy

 The bread product market has been segmented into the following categories as a part of a detailed strategy to enter the market. 

Market, by Product Type:

  •  White Bread - Sweet
  • White Bread - Salt
  •  Milk Rusk
  • Birthday cakes (Upon individual order)

In one year, we are planning to add two more varieties of bread, and production will start slowly for packed cakes. Innovative products are under research to launch on future dates. An online platform will be developed as a channel to receive birthday cake orders.

Market, by Sales Channel:

  • Hypermarket/Supermarket
  • Convenience Stores
  • Independent Small Grocers
  • Independent bakers
  • College Hostels/ Hospitals/ Catering services

We are already in talks with a couple of Hypermarkets, malls (Milk Rusk supply), Hospitals. Details can be given upon request. 

Name & Address of Unit

Bread & Rusk manufacturing

Address

Details of unit
Email : [email protected]
Phone : 0000
Constitution : Proprietership
Total project cost : *******
Fixed Capital : *******
Working Capital : *******
Total Bank loan : *******
Promoter(s) contribution : *******
Term loan : *******
Working capital loan : *******
Name & address of promoter(s)
Name : Your name
Address : Address
Phone : 000000
Designation : Proprietor
E-mail : [email protected]
Debt Service Coverage Ratio (Average) :1.87
Current ratio (Average) :2.63
Year 1Year 2Year 3Year 4Year 5
Current ratio 1.53 2.06 2.62 3.19 3.76
Quick ratio 1.13 1.56 2.10 2.64 3.18
Interest coverage ratio 3.87 5.55 7.00 9.48 14.71
Debt equity ratio 2.863 2.080 1.528 1.020 0.542
TOL/TNW 3.02 1.45 0.79 0.43 0.21
DSCR 1.65 1.86 1.90 1.94 1.97
Gross profit Sales Percentage % 29.23 % 28.54 % 28.18 % 27.86 % 27.50 %
Net profit Sales Percentage % 10.84 % 10.56 % 11.10 % 11.57 % 11.90 %
BEP in % of installed capacity % 49.90 % 27.12 % 27.12 % 27.12 % 27.12 %
BEP in sales of Rs 2,620,800.00 1,840,695.65 1,972,173.91 2,103,652.17 2,235,130.43
Return On Capital Employed 0.26 0.34 0.34 0.33 0.33
Net profit Sales %
Quick ratio
Revenue v/s Expense
Expense Splitup
Sl. no Item Amount Rs
1 Lease advance *******
2 Building Construction *******
3 Rusk sealing machine *******
4 Bread Sealing Machine & Tape *******
5 BOPP Packing Cyclinders *******
6 Bread Mould & Tray *******
7 Weighing Machine *******
8 Diesel Generator - 15 KVA *******
9 Bread Slicer *******
10 Dough Kneader *******
11 Rotary Rack Oven *******
12 Fan *******
13 Furniture *******
14 Bakery Management System Software *******
15 Billing Machine - Handheld *******
16 Printer *******
17 Desktop *******
18 Electricity board approvals *******
19 Electrifying Work & electric materials *******
20 Marketing & Advertisment *******
21 Printing & stationery *******
22 Travelling expenses *******
23 Packing license *******
24 FSSAI *******
25 Engineer Plan & Approvals *******
26 Packing & Logo Designer consultation fees *******
27 Registration fees *******
28 Working Capital *******
Total *******

 

Sl. no Item Amount Rs
1 Consumables / stock in hand *******
2 Work in progress *******
3 Finished goods *******
4 Working expense. *******
5 Receivables/Sundry debtors *******
6 Payables *******
7 Total working capital *******
8 Own Contribution *******
9 Working capital loan *******

Sl. no Item Rate Quantity Unit Total Rs
1 White Bread - Sweet ******* X 220800 Piece *******
2 White Bread - Salt ******* X 216000 Piece *******
3 Milk Rusk ******* X 180000 Piece *******
Total *******

Sl. no Item Amount Rs
1 Helper - packer *******
2 Helper - Cleaner *******
3 Machine Operator *******
4 sales *******
5 Manager *******
6 Machinery maintenance *******
7 Electricity *******
8 Professional Fees *******
9 Vehicle Service *******
10 Marketing Expenses *******
11 Cleaning & Maintenance *******
12 Telephone expense *******
13 Printing *******
14 Drinking water *******
15 Stationery *******
16 Insurance *******
17 Custard powder *******
18 Preservatives *******
19 Edible fat *******
20 Salt *******
21 Sugar *******
22 Yeast *******
23 Wheat Flour *******
24 Diesel *******
25 Packing *******
Total *******

Sl. no Item Subsidy % No. Rate Amount Rs
1 Lease advance ******* 1 ******* *******
2 Building Construction ******* 1 ******* *******
3 Rusk sealing machine ******* 1 ******* *******
4 Bread Sealing Machine & Tape ******* 1 ******* *******
5 BOPP Packing Cyclinders ******* 12 ******* *******
6 Bread Mould & Tray ******* 1 ******* *******
7 Weighing Machine ******* 1 ******* *******
8 Diesel Generator - 15 KVA ******* 1 ******* *******
9 Bread Slicer ******* 1 ******* *******
10 Dough Kneader ******* 1 ******* *******
11 Rotary Rack Oven ******* 1 ******* *******
12 Fan ******* 1 ******* *******
13 Furniture ******* 1 ******* *******
14 Bakery Management System Software ******* 1 ******* *******
15 Billing Machine - Handheld ******* 1 ******* *******
16 Printer ******* 1 ******* *******
17 Desktop ******* 1 ******* *******
18 Electricity board approvals ******* 1 ******* *******
19 Electrifying Work & electric materials ******* 1 ******* *******
20 Marketing & Advertisment ******* 1 ******* *******
21 Printing & stationery ******* 1 ******* *******
22 Travelling expenses ******* 1 ******* *******
23 Packing license ******* 1 ******* *******
24 FSSAI ******* 1 ******* *******
25 Engineer Plan & Approvals ******* 1 ******* *******
26 Packing & Logo Designer consultation fees ******* 1 ******* *******
27 Registration fees ******* 1 ******* *******
Total Investment *******
Total Subsidy *******
Net Investment *******
Sl. no Item Amount
1 Term Loan *******
2 Working capital Loan *******
3 Total loan *******
4 Term Loan contribution *******
5 Working capital contribution *******

Year 1(!*) Year 2 Year 3 Year 4 Year 5
Revenue from operation
Sales ***** ***** ***** ***** *****
Add :
Closing stock ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Less :
Opening stock ***** ***** ***** ***** *****
Stock purchase ***** ***** ***** ***** *****
Salary ***** ***** ***** ***** *****
Repairs and maintenance charges ***** ***** ***** ***** *****
gas ***** ***** ***** ***** *****
ELECTRICITY bill ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Gross profit ***** ***** ***** ***** *****
Less :
Rent ***** ***** ***** ***** *****
Telephone/Postal &internet charge ***** ***** ***** ***** *****
Total ***** 0***** ***** ***** *****
Depreciation ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Profit before tax ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** *****
Profit after tax ***** ***** ***** ***** *****
Cash Inflow Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
Capital 0.63 ***** ***** ***** ***** *****
Subsidy ***** ***** ***** ***** ***** *****
Termloan ***** ***** ***** ***** ***** *****
Profit before tax with interest ***** ***** ***** ***** ***** *****
Increase in WC loan ***** ***** ***** ***** ***** *****
Depreciation ***** ***** ***** ***** ***** *****
Increase in Current liability ***** ***** ***** ***** ***** *****
Total Cash Inflow ***** ***** ***** ***** ***** *****
Cash Outflow
Fixed Assets ***** ***** ***** ***** ***** *****
Increase in Current asset ***** ***** ***** ***** *****
Interest on TL ***** ***** ***** ***** ***** *****
Interest on WC ***** ***** ***** ***** ***** *****
Income Tax ***** ***** ***** ***** ***** *****
Decrease in Term loan ***** ***** ***** ***** *****
Drawing ***** ***** ***** ***** ***** *****
Total Cash Outflow ***** ***** ***** ***** ***** *****
Opening balance ***** ***** ***** ***** ***** *****
Net Cashflow ***** ***** ***** ***** ***** *****
Closing balance ***** ***** ***** ***** ***** *****
Liability Pre operative period Year 1 Year 2 Year 3 Year 4 Year 5
A. Share holders funds
Capital ***** ***** ***** ***** ***** *****
Reserve & Surplus ***** ***** ***** ***** ***** *****
B.Non current Liabilities
Termloan ***** ***** ***** ***** ***** *****
C.Current Liabilities
Working capital loan ***** ***** ***** ***** ***** *****
Account payable ***** ***** ***** ***** *****
Total Liability ***** ***** ***** ***** ***** *****
Asset
A. Non current Assets
Fixed Assets ***** ***** ***** ***** ***** *****
B. Current Assets
Inventory ***** ***** ***** ***** ***** *****
Trade receivables ***** ***** ***** ***** ***** *****
Cash and cash equivalence ***** ***** ***** ***** ***** *****
Total Asset ***** ***** ***** ***** ***** *****
Year Installment Outstanding at the beginning Principal repayment Interest Amount paid Outstanding at the end
1 1 ***** ***** ***** ***** *****
1 2 ***** ***** ***** ***** *****
1 3 ***** ***** ***** ***** *****
1 4 ***** ***** ***** ***** *****
1 5 ***** ***** ***** ***** *****
| | | | | | |
| | | | | | |
5 56 ***** ***** ***** ***** *****
5 57 ***** ***** ***** ***** *****
5 58 ***** ***** ***** ***** *****
5 59 ***** ***** ***** ***** *****
5 60 ***** ***** ***** ***** *****
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
Receipts
a).Net Profit ***** ***** ***** ***** *****
b).Depreciation ***** ***** ***** ***** 0.30
c).Interest on termloan ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
Repayments
a).Loan Principal ***** ***** ***** ***** *****
b).Interest on termloan ***** ***** ***** ***** *****
Total ***** ***** ***** ***** *****
DSCR ***** ***** ***** ***** *****
Particulars Rate Year 1 Year 2 Year 3 Year 4 Year 5
Building ***** ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Computers/ Printers /Photocopier/Electronic gadget 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Furniture & fixtures 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Racks & storage/Interior works 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
new item 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
new 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Air-conditioning 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Other investments 00 ***** ***** ***** ***** *****
Less Depreciation ***** ***** ***** ***** *****
Written down value ***** ***** ***** ***** *****
Total less depreciation ***** ***** ***** ***** *****
Total written down value ***** ***** ***** ***** *****

The project as a whole describes the scope and viability of the Trading industry and mainly of the financial, technical and its market potential.The project guarantee sufficient fund to repay the loan and also give a good return on capital investment. When analyzing the social- economic impact, this project is able to generate an employment of 5 and above. It will cater the demand of Trading and thus helps the other business entities to increase the production and service which provide service and support to this industry. Thus more cyclic employment and livelihood generation. So in all ways, we can conclude the project is technically and socially viable and commercially sound too.

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