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Kadi Sarva Vishwavidhyalaya

S.K.Patel Institute of Management & Computer Studies

Topic: Business Plan on Bakery


Represents By:

Davara Vishal (14)


Dungarani Jaimish (22)
Katariya Mehul (40)
Mandavia Dhaval (51)
Submitted To : Prof.Sonu Gupta
Submitted On : 24th November,2014

Introduction of Business
Balaji Bakers Pvt. Ltd.
B-15
Drive-Through Road
Ahmedabad-390005
Ph: (079) 2335 7755
www.balajibakery.com
Partners: Katariya Mehul, Dugarani Jaimish
Davara Vishal, Mandavia Dhaval
Description of Business:
This business provide baking related items to the customers. Products include
Buiscuits,Bread,Buns,cake,pastry,chocolates,colddrinks.

Financing:
Initial Financing requested is a Rs.10,00,000 loan to be paid off over five years.
This debt will cover factory space, equipment and supplies, Advertising &
Selling Cost.

Mission
Providing the highest quality bakery products and the best possible services to the food
industry. We will continuously improve all aspects of our business in order to sustain the
long-term success of our customers and ourselves.

Vision
Bake and Joy will be living proof that caring, integrity, hard work and innovation at all
levels create success.

Objective

Be honest, consistent and responsible in the pursuit of organizational goals and


managerial actions.
Invest in helping the customers, associates and communities we serve reach their
full potential, because we believe their success will ultimately determine ours.
Conduct ourselves in a manner that values the individual needs and contributions of
all stakeholders, both internally and externally.

Industry Analysis

Future Outlook & Trends


Fastest growing industries, perhaps third only to wheat flour, fruits and
vegetables processing sectors.
bakery industry in India generates around Rs 10,000 crore annually.
emergence of a significant middle-class, Urbanization and the expansion
of modern habits by busy, health-conscious and well-informed
consumers are raising the consumption of bakery products in India.
purchasing power of Asia's middle-class, which is set to fuel demand for
bakery products in retail store, food joints, and coffee houses across
India.

changing demographics are changing the way people are consuming


bakery products be it cakes, sandwiches, pastries, puffs, pizzas.

Demand Drivers
Purchasing Power of Middle Class
Increasing disposable income
Retail boom have lured number of domestic and international bakery
chains to expand their presence in the country.
Food patterns

Competitors

Radhe Bakery
Laxmi Bakery
Dotiwala Bakers
Tirupati Bakers
Ashtha Bakery

Description of Venture

Products/Services

Breads-various varieties
Buns
Tarts
Muffins
Cookies
Sitting area with coffee/tea and in-store products
Cake
Pastry
Chocolates
Cold Drinks

Size of Business
Medium Sized business operation

Equipment Needed

Computer
Air Conditioner
Tables & Desk
Different sizes of Jars & Boxes
Refrigerator (for cold drinks and pastries ,cake)
Oven
Proof Boxes
Baking sheets & Racks
Mixers

Background of Entrepreneur
MBA (Finance, Marketing)

Production Plan

Floor Plan

Machinery & Equipment

Rotary Rack Oven (Bakery Oven)


Bakery Proofer
Spiral Mixer
Deck Oven
Planetary Mixer
Cookies Drop Machines
Dough Shifter
Dough Divider
Dryer
Biscuit making Machines
Bread making Machines

Suppliers
Nafeez Bakery Pvt. Ltd.
Dayal Food Express
Honey Money Top
Silver Spring Enterprise

Operations Plan

Start Up

The bakery will be constructed on the


farm.
Construction will commence in January
2015.
The bakery is scheduled to open in May
2015.

Work Plan
4:00am Start Baking
8:00am Bakery Opens
9:00pm - Bakery Closes

Inventories
Desired Inventory = 0
Average Days for Inventories
Raw Material Inventory = 30 days
Finished Goods Inventory = 2 days

Organizational Plan

Organizational Structure
Mehul,Dhaval,Jaimish,Vishal

President/Manager

Head Baker

Assistant Baker/Delivery Person

Assistant Baker/Delivery Person

Assistant Baker

Quality Control Program


Regulations
Local
Consumer Protection Branch
Labour

Capital Budget
Description

Estimated

Source of Estimates

Cost ($)

Obtained

Buildings:

1000ft2

Bakery

2,00,000

Total Building Costs

2,00,000

Humboldt Lumber Mart Ltd

Equipment:
Oven

1,50,000

Ace Mart Restaurant Supply Co

Proofer

50,000

Ace Mart Restaurant Supply Co

Showcase

50,000

Ace Mart Restaurant Supply Co

Refrigerator

30,000

Sears Canada

Freezer

20,000

Sears Canada

Used Mixers 20qt

10,000

Nicholson Equipment Ltd.

Shelves/dollies

20,000

Ace Mart Restaurant Supply Co

Additional equipment

20,000

Furniture

50,000

Total Equip. Costs

4,00,000

Total Working Capital

4,00,000

Total Capital Required

10,00,000

Ace Mart Restaurant Supply Co

Monthly requirements for capital*

Cost of Goods Manufactured

2015

Total Direct Labour

30,500

Total Direct Materials

16,700

Manufacturing Overhead

10,440

total

57,640

Accounts Receivable/Payable
Receivables
From Bulk Cheese Warehouse and Market Place
Have 30 days from date of billing to pay
No discounts offered

Payables
Have 21 day grace period

Administration, Marketing,
and General Expenses

Accounting
Bookkeeping
Management
Fuel for delivery
Income Tax
Interest on Debt
Marketing

Manager
Responsibilities:

Daily production
Work Schedules
Assigning Employee Tasks
Traveling
Ensures product quality
Purchases raw materials
Keeps facility running, and clean
Accounting Duties

Head Baker
Responsibilities:
Working long hours
Ability to follow recipes
Ability to produce quality product
Ability to use ovens and mixers
Dishwashing and janitorial skills

Assistant Baker
Responsibilities:
Assist in baking
Operate Cash register and serve
customers
Dishwashing, and basic janitorial skills

Additional Training
All staff members will take the one day
Safe Food Handling Course
Other food safety programs offered by
Company to Employees

Marketing Plan

The Marketing Mix


Products/Services

Breads-various varieties
Buns
Tarts
Muffins
Cookies
Sitting area with coffee/tea and in-store
products

Marketing Mix

Price

Promotion

Moderate, but still competitive


Web site, Social Networking, Bill boards, Banners,T.V.

Place

Ahmedabad City

SWOT Analysis
Internal Strengths
Family business
Location
Homemade recipes

Internal Weaknesses
Inexperience
Increased prices

SWOT
External Opportunities
Desire for healthier lifestyle
Niche market in urban areas
Large target market area

External Threats
Change in lifestyle trends
Increased fuel prices
Competitors having lower prices

Marketing Plan Budget


Marketing Budget

Advertising

Expenses/year

Newspaper
Local (Sandesh & Gujarat Samachar)

40000

Other
Billboard

10000

Bulletins

10000

Promotion and Development


Business cards

20000

Travel expenses

15000

Total Marketing Expenses

95000

Financial Plan

Financing
Total Financing Required

Amount

Long Term Bank Debt

10,00,000

Owner Equity

05,00,000

Total Financing

15,00,000

Projected Balance Sheet


Assets
Current Assets

Total Current Assets

Liabilities
Current Liabilities

445870 Total Current Liabilities

Long Term Assets

Long Term Liabilities

Total Long Term Assets

944310 Total Long Term Liabilities

150000

740180

Owner Equity

Total Assets

Total Owner Equity

500000

Total Liabilities and Owner


1390180 Equity

1390180

Contingency Plan
If price of bread decreases:
have to either increase sales to a break even level
the bakery would have to find a way to decrease
fixed costs

Methods
additional branch at different market place

Bibliography
http://www.fnbnews.com/article/detnews.asp?articleid=31030&sectionid=32
http://smallbusiness.chron.com/list-items-needed-start-small-bakery21051.html

THANK YOU