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Bread Manufacture

Production Capacity:

:

1440 tpa (36 lakh loaves of 400 g /annum)

Uploaded on

:

April 2009

Product and its applications

Bread is an important ready-to-eat product which is becoming increasingly popular in hotels, restaurants, canteens and in households. The bread is a fast and convenience food based on wheat. There are many varieties e.g. whole flour bread, brown bread, milk based and fortified breads

Market Potential

India produces more than 80 million tonnes of wheat. Most of it is used for direct consumption in the form of chapati & bakery products. The per capita consumption

of bakery products in the country is about 2 kg per annum, against 50-100 kg bread alone in western countries. Consumption of bread is increasingly fast at estimated rate of 135% with a scope for further enhancement. The manufacture of bread in small towns and villages shall not only meet the local demand but generate employment opportunities in the vicinity.

3.0 Basis and Presumption

a) The unit proposes to work at least 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 is 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 proposes to construct own building.

g) Costs of machinery and equipment are based on average prices enquired from machinery manufacturers.

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:

Scheme preparation and approval

:

01 month

SSI provisional registration

:

1-2 months

Sanction of financial supports etc

:

2-5 months

Installation of machinery and power connection

:

6-8 months

Trial run and production

:

01 month

5.0 Technical Aspects
5.1 Location

The unit can be set up at any suitable place where there is substantial market demand. Availability of power and road connectivity is to be ensured. Keeping in view the short shelf life of the product, marketing network has to be planned carefully.

5.2 Process of Manufacture

Maida is the principle ingredient. It is sieved to 60 mesh size and converted into dough by mixing other components. The yeast solution is added and mixed well until dough is formed. The dough is allowed to ferment at a temperature of 27°C and 75% Relative Humidity. During this period, the volume of dough increases due to carbon dioxide gas released by the action of yeast. It is given knock-back and allowed a rest for a period of 15 minutes. The dough is weighed into 450 g pieces for obtaining a baked loaf of 400 g bread. It is rounded, moulded, panned and baked at 205°C for 25-30 minutes. The baked loaf is taken out of the pan, aerated and cooled for 60-90 min. It is sliced and wrapped.

5.3 Quality Control and Standards: As per BIS/PFA requirements.

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.

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

The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilising the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.

8.0 Production capacity

Quantity

:

1440 tpa (12,000 loaves of 400 g/day)

Value

:

270 lakh

Installed capacity

:

6.5 tpd

Working days

:

300/annum, 3 shifts

Optimum capacity utilization

:

70%

Manpower

:

26

Utilities

:

 

Motive Power

:

40 kW

Water

:

Water : 10 kL/day

9.0 Financial Aspects
9.1 Fixed Capital
9.1.1 Land & Building

Particulars

Amount (Rs. lakh)

Land 800 m 2

02.50

Built up area 500 m 2

22.00

Total cost of land and building

24.50

9.1.2 Machinery and Equipment

Description

 

Amount (Rs. lakh)

Mixer with flour sifting arrangements, dough kneader, sun mica top dividing table, moulder, proofing cabinet, electric ovens, slicer, weighing scale, baking tins / trays, trolleys, lab equipment, wrapping machine, refrigerated cabinet, baby boiler

:

23.00

Erection & electrification of machinery & equipment @10% cost

:

02.30

Office furniture & fixtures

:

02.70

Total

:

28.00

9.1.3 Pre-operative Expenses

Consultancy fee, project report, deposits with electricity department etc

01.50 (Rs. lakh)

9.1.4 Total Fixed Capital (9.1.1+9.1.2+9.1.3) 54.00

9.2 Recurring expenses per annum

9.2.1 Personnel

Designation  

No.

Salary Per month

Amount (Rs. lakh)

Factory Manager

1

10,000

1.20

Supervisory staff

3

06,000

2.16

Office Assistant

2

05,000

1.20

Technician

2

05,500

1.32

Skilled workers

6

03,500

2.52

Unskilled workers

12

03,000

4.32

 

 

 

12.72

Perquisites @15 %

 

 

1.92

Total

26

 

14.64

9.2.2 Raw Material including packaging materials

Particulars

Qty (t)

Rate/kg (Rs.)

Amount (Rs. lakh)

Maida

1120

13

145.60

Sugar

34

22

7.48

Salt

17

O8

1.36

Yeast

8.4

210

17.64

Chemicals

LS

LS

07.00

Packaging material

LS

LS

14.92

Total

 

 

194.00

9.2.3 Utilities

Particulars

Amount (Rs. lakh)

Power

05.60

Water

00.40

Coal

01.86

Total

06.86

9.2.4 Other Contingent Expenses

Particulars

Amount (Rs. lakh)

Repairs and maintenance@10%

02.80

Consumables, spares Transport & travel Publicity Postage & tationary Telephone

02.70

Insurance @1%

00.50

Total

06.00

9.2.5 Total Recurring Expenditure

(9.2.1+9.2.2+9.2.3+9.2.4)

221.50 (Rs. lakh)

9.3 Working Capital

Recurring expenses for one month (Ref. 9.2.5)

18.45 (Rs. lakh)

9.4 Total Capital Investment

 

Amount (Rs. lakh)

Fixed capital (Refer 9.1.4)

54.00

Working capital (Refer 9.3)

18.45

Total

72.45

10.0 Financial Analysis

10.1 Cost of Production (per annum)

Amount (Rs. lakh)

Recurring expenses (Refer 9.2.5)

221.50

Depreciation on building @5%

001.50

Depreciation on machinery @10%

002.53

Depreciation on furniture @20%

000.57

Interest on Capital Investment @12%

009.70

Total

235.80

10.2 Sale Proceeds (Turnover) per year

Item

Qty (t)

Rate/t (Rs.)

Amount (Rs. lakh)

Bread loaves of 400 g

36 lakh

7.50

270.00


10.3 Net Profit per year

=

Sales – Cost of production

=

270.00 - 235.8

=

Rs. 34.20 lakh

10.4 Net Profit Ratio

=

Net profit X 100
---------------------------
Sales

 

=

34.20 X 100
----------------
270

 

=

12.7 %

10.5 Rate of Return on Investment

=

Net profit X 100
--------------------------
Capital Investment

 

=

34.20 X 100
-----------------
72.45

 

=

47.2 %

10.6 Annual Fixed Cost

 

Amount (Rs. lakh)

All depreciation

04.60

Interest

09.70

40% of salary, wages, utility, contingency

11.00

Insurance

00.50

Total

25.80


10.7 Break even Point

=

Annual Fixed Cost X 100
-----------------------------------
Annual Fixed Cost + Profit

=

25.80 X 100
---------------------
25.80+ 34.20

 
=

2580
-------------
60

 

=

43 %

11.0 Addresses of Machinery and Equipment Suppliers

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

Electrotherm Furnaces Pvt. Ltd.
32-B, II Phase, Peenya Industrial Area, Dasarahalli P.O.
Bangalore – 560 058

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 Area, Patiala – 147 001

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

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 (Haryana)

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

United Packaging
19/21, Shakti Nagar
Delhi – 110 007

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

R.D.Singal and Co.
A-81/2, Wazirpur Industrial Area,
Delhi – 110 052

Ambica Packers and Printers
2687, Kinari Bazar, Dariba Kalan
Delhi – 110 006

Baker and Co.(P) Ltd.
Oomrigal Building , Opp. Crawford Market
Mumbai – 400008

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

Ever Fresh Product
Ram Bagh
Indore (M.P.)

New Engg. Industries
Firozpur Road
Ludhiana

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

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

Flora Engg. Corp.
28-A, Phoolbag, Rampura
New Delhi – 110 035

Jyothi Industries.
31, Pampa Mahakavi Road
Bangalore – 560 004

Raylons Metal Works
Kondivita Lane
Andheri, Mumbai

Shanti Engineering Works
Figure of 8 Road
Coonoor – 643 101

SIDVIN
78, 5th Main , Saraswathipuram
Mysore – 570 009

M/s S.S.P. (P) Ltd.
13, Milestone, Mathura Road ,
Faridabad- 121003
Email: sspgroup@del2.vsnl.net.in

M/s Marvel Machines Pvt Ltd.
140, Anna Salai, Saidpet
Chennai - 600015
Email: marvel12@vsnl.com

12. M/s Azad Engineering Company
C-83, B.S. Road , Indl Area,
Ghazibad -201009
Email: azadeng@satyam.net.in/ azadenggco@hotmail.com

M/s Sanjivan Industries
A -13, Karimsheth Indl. Estate,
Wagdevi Nagar, Near Valishali Nagar
Dahisar (E), Mumbai -400068
Email: sanjivanind@roltanet.com

M/s Pharamalab India Pvt. Ltd.
Star Metal Compound,
LBS Marg, Vikroli (W)
Mumbai -400083
Email: mkt@pharmalab.com

M/s Larsen & Toubro Ltd.
L &T House, Ballard Estate,
Mumbai -400001
Web: www.larsontoubro.com

M/s Shiv Engineers
Patel Avenue , Plot No. 165,
Flat No.1, Right Bhusari Colony,
Paud Road , Pune -411038
Email: shivenginerrs@rediffmail.com

M/s Bombay Industrial Engineers
13, Crystal Apartments,
Gulmohar Cross Road ,
11, JVPD
Mumbai -400049
Email: ijsehgal@bom5.vsnl.net.in

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 breads of different recipes, buns, cakes for fuller utilisation of capacity.

Contact for more information:
Information Manager
TIMEIS Project
E-mail: timeis@ficci.com

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