1 BISCUIT PLANT

1.1 Introduction
Biscuit making is a conventional activity in many parts of the country. Despite the advent of
modern, large capacity and automatic biscuit making plants, large section of people
especially in semi-urban and rural areas still prefer fresh biscuits from local bakery as they
are cheap and offer many varieties. These manufacturers are able to cater to some typical
local palate as well. Thus, they are able to withstand competition from organised sector units.
1.2 Objective
The primary objective of the model report is to facilitate the entrepreneurs in understanding
the importance of setting up unit of biscuit plant. This model report will serve as guidance to
the entrepreneurs on starting up such a new project and basic technical knowledge for
setting up such a facility.
1.3 Raw ateria! Avai!abi!it"
The basic raw material for the manufacture of biscuits is wheat flour. Major wheat producing
districts in the state are osangabad !".#$ lakh MT production%, &jjain !'.() lakh MT%, Dhar
!'.)# lakh MT%, *ndore !'.'" +akh MT% etc.
1.# Suitab!e Location
The suitable recommended location of the biscuit plant is oshangabad, &jjain, Dhar, *ndore,
,idisha, -ehore etc. There is already a food park at osangabad,
1.$ ar%et O&&ortunitie'
Market for biscuits is scattered all over the country. There are three distinct market segments
vi.. urban, semi-urban and rural. &rban and semi-urban markets are dominated by many
national and regional brands but even then many local manufacturers have also carved a
special niche as their products are fresh, they offer many varieties and they are cheaper.
1.( Project de'cri&tion
1.(.1 A&&!ication'
Biscuits are eaten by all sections of people across the board round the year. They are, thus,
mass consumption items with number of varieties and shapes. The market is scattered.
There are some dominant national and regional brands. Biscuits can be manufactured at a
location which is close to the market.
1.) Ca&acit" o* t+e Project
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The capacity of the project is )/ tonnes of biscuits per year.
1., Critica! 'ucce'' *actor'
0ural and certain semi-urban markets are mainly captured by small manufacturers. This note
primarily suggests entering this market. 1part from domestic customers, there is a vast
market at bus and ta2i stands, railway stations, weekly hats or ba.aars, highway eateries or
dhabas and melas or fairs. 1 small delivery vehicle can take care of destinations located in
the vicinity of about )/-3/ km. 1ttractive margins to traders4retailers will be crucial.
1.- anu*acturin. &roce''
The process is conventional and easy. 5heat flour along with other ingredients is mi2ed with
water and dough is prepared. Then it is kept at a normal room temperature for about couple
of hours to allow proper fermentation. Then it is placed in biscuit moulding trays and these
trays are placed in oven for baking. 1fter re6uisite baking, trays are taken out, cooled and
biscuits are packed. The process flow chart is as under7
1.1/ Project co0&onent and co't
PAR!"#LARS #nit $ty "ost%unit otal
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Mi'ing and (oug) Ma*ing
+ermentation
,a*ing
Pac*ing
LA-( . ,#!L(!-G 1/.01
+and -6M "// 8)/.// #.//
Land (evelo2ment
+and 1rea "// )//.// 8.//
,uilding
Production ,loc*
Main 9roduction 1rea -6M #// ),///.// ).//
-tore cum packing room : -ales ;ounter -6M )/ ),///.// 8.)/
Misc andling 1rea -6M #// 8,///.// 8.//
;ontingencies #/< /.$)
PLA- . MA"3!-4RY &5.65
=lour -ifter +- # >/,///.// /.>/
Dough ?neader 8 )/,///.// #.//
@lectrically Aperated Aven # 8)/,///.// 8.)/
Biscuit Moulding Tray >/ '/,///.// 8#.//
;ontingencies #)< '.>(
M!S"4LLA-47#S +!84( ASS4S 9.:/
=urniture and =i2ture +- # "/,/// /."/
-ealing and wraping machine Bo 8 )/,/// #.//
,ehicles-Delivery +;, Bo 8 8//,/// ".//
5eighing -cale Bo # 8),/// /.8)
Athers +- # 8/,/// /.8/
;ontingencies #)< /.((
PR4-7P4RA!;4 48P4-S4S 1.6<
@stablishment # 8'/,/// 8.'/
9rofessional ;harges # 8//,/// 8.//
-ecurity Deposits # #3/,/// #.3/
7AL 11.<9
1.1/.1 Bui!din.
The building development cost will be around 0s #/.") lakhs.
1.1/.2 P!ant and ac+iner"
*t is suggested to have installed production capacity to manufacture #/) tonnes of biscuits
per year assuming working for about ''/ days for #8 hours every day. This would re6uire
flour sifter, dough kneader, electrically operated oven, biscuit moulding tray and sealing and
wrapping machine. 1ll these machineries will cost around 0s. 8(.$( lakhs.
1.11 i'ce!!aneou' A''et'
The miscellaneous assets will cost around 0s. 3.>' +akhs.
1.12 Pre!i0inar" 1 Pre2o&erative 34&en'e'
1 provision of 0s. ).$/ lakhs would take care of pre-production e2penses like establishment,
professional charges, security deposits etc.
1.13 5or%in. Ca&ita! Re6uire0ent
=RS !- LA"S>
!4MS Year 1 Year / Year 1
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-TA;? A= 015 M1T@0*1+ : 91;?*BC
M1T@0*1+
8.)$ '.$( '.$(
-&BD0D D@BTA0- #/.8" #).>) #).>)
7AL 1&.5& 16.:/ 16.:/
MARG!- '.8# ".$' ".$'
MP,+ $.38 #".(/ #".(/
!-4R4S 7- ?" #./3 #.3' #.3'
1.1# ean' o* 7inance
4$#!Y "AP!AL ').//< &<./6
M7+P! S#,S!(Y 8)< )/.// 8).//< 10.1:
4RM L7A-
=*B1B1B;*1+ *B-T*T&T*AB- #/.//< "/.//< &/./1
-Payable half yearly Installments #/ 8.'/
7AL #//< 15.&9
1.1$ Ca'+ *!ow 'tate0ent
PAR!"#LARS Year 1 Year / Year 1 Year :
S7#R"4S 7+ +#-(S
@E&*TD ;19*T1+ - - - -
-&B-*DD
B@T 90A=*T #.8# $./3 (.8' >.">
!*BT@0@-T 1DD@D B1;?%
D@90@;*1T*AB '.(> '.(> '.(> '.(>
90@+*M*B10D @F9.54A /.(" /.(" /.(" /.("
*B;0@1-@ *B T@0M +A1B - - - -
*B;0@1-@ *B B1B?
BA00A5*BC--5;
$.38 #."( - -
7AL 1
1.10
11.&1 1&.60 1&.15
1.1( Projected ba!ance '+eet
PAR!"#LARS Year 1 Year / Year 1 Year :
L!A,!L!!4S
@E&*TD ;19*T1+ 8/.'$ 8/.'$ 8/.'$ 8/.'$
0@-@0,@- : -&09+&- #8.'$ 8#.3) ''.3> ").>"
T@0M +A1B 8#./# ##.(# 8.3# /.//
B1B? BA00A5*BC--5; 6.9& 10.5< 10.5< #".(/
7AL 9/.0< 95.91 :1.09 5<.6/
1.1) Projected &ro*it and !o'' account
PAR!"#LARS Year 1 Year / Year 1 Year :
-4 R4;4-#4 R4AL!SA!7- '>.)" )>.>) )>.>) )>.>)
7AL 48P4-S4S /1.9& 0/.65 00.51 01.1:
GR7SS PR7+! 1.6& 1/.:: 1&.60 1&.15
D@90@;*1T*AB '.(> '.(> '.(> '.(>
*BT@0@-T '.'$ '.#) 8.8' #.3'
90@+*M*B10D @F9.54A /.(" /.(" /.(" /.("
90A=*T B@=A0@ T1F !8.#(% ).$/ ).$$ ).("
0@T1*B@D 90A=*T !8.#(% ).$/ ).$$ ).("
1.1, 8e" Indicator'
B@T 90@-@BT ,1+&@ at current *nflation !0s. in lakhs% 10.51
*BT@0B1+ 01T@ A= 0@T&0B < &1.:6
1,@01C@ D-;0 1.6:
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B0@1? @,@B 9A*BT < 5<.&/
91D B1;? 9@0*AD ! D@10-% 1.<9
1.1- an &ower re6uire0ent
PAR!"#LARS -7s.
S#P4R;!S7RY SA++
9roduction -upervisors 8
1ccountant #
?7R@4RS
-killed 5orkers 8
-emi--killed +abour "
-alesman 8
Driver 8
7AL 1/
1.2/ A''u0&tion'
Project . +inancing
;ontingencies on Building #/<
;ontingencies on @6uipment #)<
Term +oan "/<
0ate of *nterest on Term +oan #/<
-ubsidy ;onsidered -ubject to ceiling 8)<
@2pected time of *nstallation Months #/
Moratorium Months 3
"APA"!Y
0ated ;apacity 9er 1nnum (/< of *nstalled capacity T91 #/)
Bumber of Aperational Days D1D- ''/
5orking ours 9er day rs #8
"APA"!Y #!L!AA!7-
Dear * 3)<
Dear ** $/<
Dear *** #//<
SAL4S PR!"4
5 - 9rice )),///
734R 48P4-S4
;ommission )./<
Marketing @2penses 8.)<
P7?4R
;onnected +oad 9 "/
(4PR!"!A!7- AS P4R "7MPA-YBS A"
B&*+D*BC '.'"<
9+1BT : M1;*B@0D #/.'"<
M*-;. =*F@D 1--@T- >./><
+1BD : -*T@ D@,@+A9M@BT #.3'<
MA!-4-A-"4
B&*+D*BC #.//<
9+1BT : M1;*B@0D 8.//<
M*-;. =*F@D 1--@T- #.)/<
+1BD : -*T@ D@,@+A9M@BT #.//<
1.21 Source' o* tec+no!o."
Master Mechanical 5orks 9vt +td, >),+ink 0oad, +ajpat Bagar ', Bew Delhi- ##//8"
Bagpal Brothers, ;-#8>, 9hase 8, Mayapuri *ndustrial 1rea, Bew Delhi- ##//3"
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Delight @ngg. 5orks, +ane Bo. ( 1slat pura, Moradabad-8""//#.
Tel Bo. 8"$('$(48"$#3(>, =a27 8"$"'>(
=oodmac @ngg. 9vt. +td. '>/'(, -ector 8, 9arwanoo-#>'88/ !9%.
Tel Bo. 8''8$"48''8$), =a27 8''8$3
?CB @ngg., 9lot Bo. #>", Ald 1irport 0oad, -ecunderabad-)///##. Tel Bo. 8>$)8#">
)e actual cost of 2rojects may deviate on c)ange of any of t)e assum2tions.
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