A Product Project Report on

City Bakery Prepared by Roll No. Seat No. :::Mordiya Manoj M. 23 2006-07

Academic Year : -

-:Collage:Smt.M.T.Dhamsania College, Rajkot. -:Submitted To: Saurashtra University, Rajkot. Guided by: - Dr. Manish Thaker

DECLARATION
I, the undersigned, Mordiya Manoj M. a student of T.Y.B.B.A. hereby declare that the project work presented in this report is my own work and has been carried out under the supervision and guidance of Dr. Manish Thaker from Smt.M.T. Dhamsania Collage. This work has not been previously submitted to any other university for any other examination.

Date: Place: (Mordiya Manoj M.)

PREFACE
SSI is a pillar of Indian economy. Most of the businesses carried out in china are those of small-scale units. In India due to liberalization and globalization the competition has increase and a severe blow has to be faced by SSI of India and thus most of the small-scale units are paralyzed. Today there is a need for substituting the traditional management techniques by the scientific system of management proper implementation of such a technique provides necessary impetus to SSI in the right direction at the right time. I am extremely happy to submit this project report on a small scale unit under the prescribed syllabus of Saurashtra University Rajkot. The preparation of a Product Project Report is a modest way of helping students to develop entrepreneur skills, ability and aptitude. Making this report I got a golden chance to acquire practical knowledge of forming such a unit. I have tried to cover all the relevant points precisely.

Bharat Bakery & Italian Bakery for providing valuable information. Date: Place: (Mordiya Manoj M.ACKNOWLEDGEMENT It is a matter of pleasure for me to prepare this report. I would like to thank the SSI Office Staff.) . I am also thankful to all the local manufacturers and traders of Bread for helping me and providing me with valuable information.

No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Particulars Introduction Project at a Glance Management set up Bio-Data of Promoters Justification of Location Location Complex Product Details Market Potential Marketing Strategies Manufacturing Process Implementation of Schedule Presumptions Staff and Labour Raw Material Contingencies Utilities Working Capital Requirement Fixed Capital Project Fund Sources of Finance Cost of Production Sales Forecast Break Even Point Ratio Analysis Risk Factors Future Plans Name and Address of Machinery Suppliers Name And Address Of Local Raw Materials Suppliers Page No.INDEX Sr. .

Its consumptions is more in cities and towns where industrial working group population is more. bread fortified with vitamins and minerals. brown bread. But unlike in advanced countries the per capital consumption of these products in India is still low. There are many varieties of bread depending upon the local demand like whole flour bread. . Bread consumption is increasing day by day and it is being used for various feeding programmer for children managed by voluntary agencies and state department of health. milk bread and bread for diabetic patients.Introduction Banking and confectionary products are now consume died mass quantity. Bread is a fast and convenient food based on wheat.

Ankita S. Sunil D Mehta 2. Bipin B Mehta 3. Yagnik Road. Mr.86. 1.10. Mehta Product Size of the Unit SSI Registration No.000 Fresh .Project at a Glance Name of the unit Registered Office Form of organization City Bakery 101. Ms.992.80 Ownership : .80 Borrowed Capital: .00. Mr. Ateet Commercial Complex. Location of the Unit Cost of the Project Sources of Finance Brand Name Brand Logo 4. Binita Mehta Whole from Bread Small Scale Unit Application has been made registration number has not yet been allotted Rs.86. 15.992. Rajkot. Ms.5.

Ankita S. Ms. Ankita and Ms. Mr. Binita is 30:30:20 respectively. Bipin D Mehta shall be non working partners due to their prior engagements in their current profession / service. The second working partner Ms. Ms. will handle the production and accounts department as she has past experience in the some filed and also holds an MBA with finance degree. . Mr. Sunil D Mehta and Mr. Sunil Mehta. Binita Mehta shall be the working partners. Mehta and Ms. Ms. Mr. Bipin Mehta. And the profit sharing ratio will be 25% each.Management Set Up The Four promoters are entitled to take the post of directors. Binita Mehta.. The capital ratio of all the four partners i. Ankita Mehta shall have under her the sales and distribution department along with personal department.e.

Top Level decision making 55% Partner – II Name Age Address Qualification Responsibility Financial cont. 20 Bhidbhajan Sociaty. Morbi.A.Bio-Data of Promoters Partner – I Name Age Address Qualification Responsibility Financial cont.A. 21 Ravapar Road. Narsang Takary. Mr.B. Top Level decision making 25% . Moradiya Manoj M. Uni. B. Road Rajkot – 360 005. Moradiya Manoj N.B. B. Mr.

Justification of Location The location of a unit is of a crucial decision an entrepreneur has to make. the availability of labour is convenient and economical. Transportation: The transport cost is comparatively less as the market place is away only at a distance of 10-12 Kms. price and transportation cost the location has been selected. Therefore. Labour: Cheap labour resides in large quantity in this area. Moreover. Market Reach: The market place where in daily specified quantity of Bread is distribution to local groceries and supermarkets near to the location chosen. The location that ‘City Bakery’ has chosen for itself is the outcome considered after analysis various facts. Moreover. There are various factors affecting such a decision. the traders shall deliver the raw material conveniently. Cost of land: The land cost in this area is lower as compared to land in the middle area of the city. Therefore. . From Lati Plot. on area is chosen for from Lati Plot will increase the overhead cost of transportation. Availability of Raw-Material: The basic Raw-Material to available at a distance of approximately 10 Kms. after cost of analysis of land.

The FRESH bread will be available in the market to the customers in places of 400 gms.Product Details Bread is a fast moving consumers good. Normally a variety of breads are available in the market like whole flour break. The City Bakery however. is designed to meet the needs of those consumers who prefer fresh bread daily and wouldn’t want to waste or keep away the left out breads. brown bread. . aims of producing the most preferred whole flow bread.e. out DAILY FRESH pack. milk bread etc. medium size pack 50 gms. i.e. The innovative pack of 50 gms. bread fortified with vitamins and minerals. i.

increased literacy rate. Moreover our new concept of “Dairy Fresh” bread will be available in 50 Gms. one can expect at least 5% growth rate in case of bakery products in coming years. Normally when customers purchase the “Jumbo” “Medium” or “Small” size packs.000 crores annually (1992) out per capital consumption of bakery products is the lowest in the world i. .000 bakeries producing items worth Rs. According to an eximate. Today Rajkot is called “Mini Mumbai” which means it is turning to a metropolitan city with the increase of excellent education institutes. they are always left out with a few pieces of bread which they might have to consume the next day even though it may not be totally fresh.e. With increasing number of nuclear families. Also the problem of daily purchase of such packs is solved as we plan to provide home delivery to out customers every morning.Market Potential With the changing socio-economic environment i. Bread is consumed in the morning for breakfast. 2. they are 75. modernization in the society is affecting the habits of all and more and ore women going for work and higher education the consumption of bread is very likely to sustain and its demand shall increase further considering the above facts. This concepts is new and can create its own share in the market. Only whereas in advance countries it range from 50-70Kgs. Higher per capita income larger number of women going out for work to sustain family living standards and tourist population etc. 1. it has to come as a substitute of the traditional breakfast of Alu / Gobi paratha. Since ours is a small scale unit and thereby the focus being on the city of Rajkot.27 Kg. the best of industries etc. pack is likely to penetrate faster in the market since the bread pieces it contains shall be only 5 which are sufficient for an individual’s breakfast.e. The firm also produces the 400Gms Medium Size pack for a family.

(2) Unique Concept: This pack is total innovation wherein the basic concept behind it is of providing a customer with fresh bread daily and in just the exact amount of quantity an individual may require per meal i.e.Marketing Strategies With the launch of this product. City Bakery enters the market with an intention to penetrate in it with new strategies likes: (1) Daily Free Delivery: City Bakery gives the unique facility to its customers of daily free delivery in twice a day. Fresh Breads. (3) To Publicise: By using pamphlets at the outlets of groceries and later apt for hoardings. breakfast or evening snacks. .

. Sliced & Wrapped.Manufacturing Process Mix all ingredient & Prepare dough The dough is fermented for two days Rested for 30 minutes Divided in Loaves Kept for two hours in Loaves till it attains rising Baked for 20-25 Minutes Removed & Cooked.

we are manufacturing 400gms. The dough is now ready for dividing. The dividing is done as per the size of the loat to be manufactured. When the dough attains a particular rising.) The dough pieces on the loat are kept again for two hours for find processing. Baked dough is cooled sufficiently. they are backed for 2025 minutes.e. . The mixed dough is fermented for two hours. Knocked back and rested for 3040 minutes. (i.Method in Detail Dough is prepared by mixing all he ingredients together. sliced and then wrapped.

5. Installation of machinery. 6. Approval of loan and other formalities. 1. 2. 3. Arrangement of power. Activity Acquisition of land and construction of building.Implementation of Schedule No. 4. SSI registration. Staff appointment. Completion Time 1 Month 1 Month 1 Week 1 Month 20 Days 3-4 Weeks .

Or raw material an out put of 320kgs.00 P.6kgs.Presumptions I II III IV Working days: Shift: Working Hours: Government Policy:  6 Days a Week  25 Days a Week Double shift  11. (a) Loan Rate 12% pa. . Of bread can be produced daily.00 A. (a) Very low tax rate prevails at 0.M. to 4 P.1% (b) New entrants in bread production are not allowed to establish a factory in V VI Banking Policies: Input – Output Ratio near a residential area.M. (b) Subsidy of 20% With an input of 259.M.  12. to 4 A.M.

(per month) 3. 8.500 3.600 48.600 36. Particulars Manager Supervisor Accountant Distributors Salesman (door door delivery) Unskilled Labour Driver Peon – Cum watchman No.000 750 Amt.000 3.37.000 36.800 Therefore. of Persons 01 01 01 01 to 04 10 02 01 Rate per day 125 100 100 70 35 50 25 Amt.000 8.08.400 10. 2 3.Staff and Labour No. staff salary for three months will be: 45. 7.000 – TOTAL 45. 5. 1.700 4.100 .750 3. 6.000 9.000 4.700 × 3 = 1.000 72. 4.26. (per year) 45.72.000 1.000 1.

67 11.681.2 4.90.33 4.252 1.75 23.413.47.Raw Material The raw material required to produce 800 packets of 400gms.) Amount 7. 5. (Kg.012 TOTAL 10. 3./Kg.325 49.) 84.2 838.5 Daily Reqmt.204.68 Yearly Reqmt. Items Rate (Rs.8 Yearly (Rs. 4. 2. (Kg.37 2.496 . are as follow: No.00.) 233.150 8.8 1. Raw Material Sugar Yeast Salt Oil 08.88 12 60 3 48. and 200packs of 50gms.112 50.) 1.956 49.

/Annum 72. Particulars Traveling expenses (Rs.Contingencies No. 2.000 36. 3.000 13050 156. Amount Rs. 1.000 Amount Rs.64.600 .600 TOTAL 2.60/Pack 400gms./Month 6000 3. @ Rs 0.20/Pack 50gms. 200 daily) Repairs & Maintenance Packaging Expenses @ Rs 0.

000 . Particulars Water (Rs.Utilities No.000 Per Month) Electricity (Rs.000 TOTAL 60.000 24.000 Per Month) Amount (Rs./Annum) 36. 2. 2. 3. 1.

12.80 93.79. 8. 4.47. 2.40 .000 1.340 Monthly Working Capital Working Capital Requirement for Three Months: 96. 6. 5.440 × 12 = 11. 1.000 2. Particulars Postage & Stationery Traveling Expenses Electricity Expenses Telephone Expenses Salaries Repairs & Maintenance Raw Material Packaging Interest Depreciation Other material (wood) Amount (per months) 500 6.71. 11.400 3.12.124.050 5.492.20 Working Capital Requirement for Whole Years: 96.373. 9.000 36. 10.440 × 3 = 2.660 28. 7.17.000 2. 3.440 13.Working Capital Requirement No.000 23.

1.000 1.Fixed Capital Fixed Assets No. material & other expenses) Plant & Machinery.000 1.000 3.00.80. 2. (a) Dough mixing machine (b) Cutter machine (slicer) Other Assets  Vehicles (Rickshaws – 2)  Furniture  Electricification.500 clouding labour. Total Fixed Cost 4. Land Building Particulars (Total construction constant Amount 2.000 5.69. 4. 3.500 .000 20.

) 10.Project Fund Particulars Fixed Capital Working Capital Amount (Rs.992.86.000 Total Project Cost 15.00.992.80 5.86.00.80 .

1.  Ms. Particulars Owned Capital  Mr.99. Ankita S.286 2.) 10. Mehta (20%) % (Percentage) 68.00.49 Amount (Rs. Bipin Mehta (30%)  Ms.000 .51 5.00. Sunil Mehta (30%)  Mr.Sources of Finance No.86. Binita Mehta (20%) Borrowed Capital 31.

Particulars Raw – Material Labour (Direct) Administrative Cost Depreciation Repairs & Maintenance Interest Power & Fuel Amount (Rs.) 20.000 5.000 Total Cost of Production (P.  Administrative costs includes salaries of staff. 6.000 60.34. 5.  Depreciation: (a) Machinery (b) Furniture (c) Vehicle (d) Building @ @ @ @ 20% = 20% = 20% = 15% = 600 1000 16000 15000 Total = 32.A.600 . 2.000 96.) 10. 3.Cost of Production No. packing expenses.496  Direct labour includes wages of supervision and unskilled laborers. traveling expenses.946 1.90. postage and stationery and telephone charges.62.57. 7.600 36. 4.400 32. 1.

2400 3000 288000 2550 0 2700 0 2850 0 3000 0 In the first year the sale are: (a) (b) 400gms.000 Amount 6000 9000 12000 15000 306000 324000 342000 360000 0 244800 144000 0 259200 216000 0 273600 288000 0 288000 360000 .Sales Forecast Year Units 01 02 03 04 05 Day Units Months Units Annum 50gm. 400gms.76. (Medium size pack) a Rs 8/pack 50gms.000 23. 36000 72000 108000 144000 180000 Amount Rs. 230400 72000 400 50om 800 200 850 900 950 1000 200 300 400 500 400 50gms.04. (Daily Fresh Bread) a Rs 2/pack Annual Sales = = 72.000 = 23.

000 = = Therefore B.74% Fixed Cost P/V Ratio 3.453.224 Contribution × 100 Sales 6.720 27. Break Even Analysis is based on certain assumptions. = = = 27. in Rupee Value: Contribution = = Fixed Cost + Profit 3.P.17.P. B.17.720 + 3. they are as follows:  All costs can be segregated in fixed and variable components.49% .59.76.504 = P/V Ratio = 6.61.59.74% 11.Break Even Point/Analysis Break level point is that level of activity where there is neither profit no loss. Break Even Chart indicates approximate profit or loss at different levels of sales volume.224 × 100 23.  Selling price remains constant at all levels.E.E.  Production and Sales are equal. However. Break Even Point can be derived through mathematical formula or graphical chart.

19% Ratio Analysis Return on Investment: R.000 = 14.720 + 3. = Net Profit × 100 Capital Employed = 3.76. in Percentage: B.41.R.280 = 21.37% . = Net Profit × 100 Sales = 3.P. = Fixed Cost × 100 Fixed Cost + Profit = 3.O.41.720 × 100 3.E.504 × 100 23.17.P.B.41.E.86.17.504 = 48.504 × 100 15.I.99.52% Net Profit Ratio: N.P.

. (3) Seasonal Fluctuations: Seasonal Fluctuations during the year especially in those in the month of “Shravan” (generally August) when people go for a religious fast and do not consume bread. (2) Competition: Existing competition from prevailing bread manufacturers like Bharat Bread.Risk Factors (1) Perishability: Bread is a product which perishes soon and therefore has to be consumed soon after its manufacture. Monjinis. Modern etc.

 After three years of its existence. .1% medium size packs and 100% of daily fresh packs. the firm plans to supply packets of bread to various Ashrams in Rajkot City.  The firm plans to have tie ups with Pizza Hut and McDonalds which are likely to establish themselves in Rajkot City.  To increase the production capacity and thereby employing more and more number of workers.Future Plans The firm plans the following for years to come:  It may increase its production of both packs of bread by 6.

Delhi – 110 006. M/S Nagpal Bros. 7. Behra Enclave. Crawford Market. Near Peeragarhi. Industries Firozepur Road. M/S Baker & Co. M/S New Engg. Indore. Arimpur Trichar – 680 611 Kerala. (p) Ltd. Mumbai – 400 003. Opp. M. Patiala. Ram Baugh. 2798 Zorawar Singh Marg. 5. . M/S Bijay Engineers Mini Industrial Estate. M/S Ever Fresh Product.Name & Address of Machinery Suppliers 1. Works Lahoti Gate. Baker Enterprise 23. New Delhi – 110 041. Ludhiana. M/S Mangal Engg. 3.P. Oomrigar Building. 4. 6. 2.

Rajkot. Rajkot. Gopalji Jadavji Dharmendra Road. Thosa Gali. 2. Gandhi Traders 10. 3. Rajkot. Rajkot. Nair Traders 8.Address of Raw Material Suppliers 1. Gurikrupa Traders 15. Wholesale Market. Thosa Gali. . 4.

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