BREAD MANUFACTURING UNIT

1. INTRODUCTION

Bakery Industry is one of the fastest growing segments of food processing

industry in our country. Bread, an important bakery product of mass consumption,
has become an important nutritional food item in cities and towns. It has also
played a vital role in popularizing wheat in traditionally non-wheat consuming
areas of the country.

Bread is a fast and convenient food based on wheat. There are many
varieties of bread depending upon the local demand like whole flour bread, brown
bread, bread fortified with vitamins & minerals, milk bread and bread for diabetic
patients. It can be produced in different sizes and shapes.

MARKET

Bread is mainly consumed in metros & mini-metros, major towns and areas
of industrial townships. Due to fast life and increase in standard of living the
demand for breads is growing very fast, particularly with more and more women
going out for work. Our per capita consumption of Bakery products is minimum in
the world i.e. 1.27 kg against 50-70 kg in advanced countries. This leaves for sub-
stantial scope for bakery industry.

Bread baking is one of the most important discoveries of mankind. Bread is

made by baking dough which has for its main ingredients wheat flour, water, yeast
and salt. Other ingredients which may be added include flours of other cereals,
milk and milk products, fruits, gluten, etc.
 When these ingredients are mixed in correct proportions two processes
commence: (i) the protein in flour begins to hydrate and forms a cohesive mass
called as gluten (ii) evolution of carbon dioxide gas by action of the enzymes in the
yeast upon the sugars. Three main requirements in making bread from wheat flour
are formation of gluten network, aeration of the mixture by incorporation of gas,
and coagulation of the material by heating it in the oven.

PRINCIPLE OF BREAD BAKING

There are three technological principles involved in baking of bread:

1) Conversion of starch: Wheat flour starch is partly converted into the

sugar, which is being used by yeast during fermentation producing alcohol with
simultaneous release of CO2 gas is responsible for porous, open honeycomb texture
of the baked bread.
2) Mechanical stretching: The hydrated wheat protein forms gluten
fibers, which are stretched mechanically to obtain a fine, silky structure. This
structure remains permanent when the protein is denatured during baking. The
stretching of gluten is partially achieved by development of CO 2 gas during yeast
fermentation and partly by mechanical mixing.
3) Flavour development: Bread flavor is because of the alcohol and other
compounds generated during yeast fermentation, together with flavor compounds
formed during baking.
2. INGREDIENTS AND THEIR FUNCTIONS IN BREAD MAKING

FLOUR

Flour is essential to the structure of dough and subsequently the bread.

Gluten (Gliadin and Glutenin) is the principle functional protein of wheat flour.
Gluten forms fibrillar frame work when hydrated and mechanically worked. Thus
the wheat flour is converted into cohesive, elastic, extensible dough. This
viscoelastic three-dimensional gluten network retains gas formed by sugar
fermentation and contributes to structure of dough and bread.

Starch plays important role in dough during baking. When heat is applied,
gas cells expand gluten networks stretches, starch granules take up water and get
partially gelatinized. This viscous paste sets to gel after baking. Satisfactory
protein content for bread flour is 11 to 13% and moisture content not more than
14%.

WATER

Water hydrates gluten proteins during mixing, gelatinizes starch during

baking and serves as a dispersion medium for other ingredients such as yeast.
Quality of water such as pH and hardness of water play important role in dough
formation. Excessively alkaline water can retard the activity of yeast enzymes.
Hard water containing calcium and magnesium ions, may have a tightening effect
and soft water a loosening effect on dough.
YEAST

Yeast produces carbon dioxide and ethanol by fermentation of fermentable

sugars. During fermentation it also helps in formation of flavour precursors. Rate
of fermentation of dough by yeast is controlled by temperature, nutrient supply,
water, pH, sugar concentration, salt and level and type of yeast. Generally two
types of yeasts are used in baking: Compressed yeast and dried yeast. Both the
types consist of living cells of Saccharomyces cerevisiae.

SALT

Salt acts as flavour enhancer and helps control the fermentation by yeast. It
also toughens the gluten and gives less sticky dough.

SUGAR

Sugar is an Energy source for yeast, Fermentable carbohydrate, provides

Sweetness and flavour compounds generated during fermentation and baking,
gives Crust colour: Caramelization and non enzymatic browning, and Delays
staling of bread by increasing hygroscopicity and thus tenderizing the crumb
3. BREAD MANUFACTURING

Production of bread consists of number of steps. The flow diagram for

manufacture of bread is given below.

Fig. 11.1 Flow diagram for bread manufacture

The first step of bread making involves sifting of flour to remove any
foreign matter and coarse particles, and to aerate and make the flour more
homogeneous. The next step is dough mixing, which is accomplished by various
methods of preparation of dough. Once the dough is formed, it is divided into
pieces of requisite size. The divided dough is rounded to a ball shape and then
passed through intermediate proofer, where the roughly stretched gluten fibre get
time to recover their extensibility so that they can be moulded well without
breaking the surface skin. After intermediate proving, the dough is passed through
a set of pairs of roller to form a sheet. The sheeted dough is now passed through
pressure board to get moulded into cylindrical shape.

The moulded dough pieces are then placed into greased individual bread
baking tins. The panned dough pieces are then passed through final rover under
controlled temperature and humidity. After complete proofing, the dough tins are
transferred to the baking oven. Once baking is completed, the breads are de-
panned, cooled and then sliced. Sliced breads are then packaged in suitable
packaging material, generally polypropylene pouches.

4. ABOUT THE PROMOTER

Name :

Sex :

Permanent Address :
Sathyamangalam, Erode (DT)-638401.
Marital Status :

Nationality : Indian
5. FINANCIAL ASPECTS

(A) FIXED CAPITAL

(1) LAND & BUILDING:

Land: 500 sq. ft. @ Rs. 10 per sq. ft.

Building Area

Factory Shed : 200 sq. ft.

Store (Raw Material) : 100 sq. ft.
Store (Finished Goods) : 100 sq. ft.
Office : 100 sq. ft.
Total Covered Area : 500 sq. ft.
Rent : Rs.5000/-

(2) MACHINERY & EQUIPMENT

Sl. No. of Rate per Amount

Description
No. Units unit (Rs) (Rs)
1. Commercial bakery oven for bread 1 3,45,000 3,45,000
2. Dough Moulder 1 85,000 85,000
3. Dough kneaders 1 55,000 55,000
4. Bread slicing machine 1 15,000 15,000

TOTAL 5,00,000

(3) PREOPERATIVE EXPENSES Rs.25,000

(4) TOTAL FIXED CAPITAL Rs.5,25,000
(B) WORKING CAPITAL (PER MONTH)

(i) Staff & Labour (Per Month):

Sl. Rate Amount
Personnel No.
No. (In Rs.) (In Rs.)
Skilled or semi-
1. 2 8000 16,000/-
skilled workers
2. Unskilled workers 1 6000 6,000/-
3. Proprietor/ Manager 1 10000 10,000/-
4. Marketing executive 1 8000 8,000/-
Total: 40,000/-
Perquisites @ 20% on the total salary 8,000/-
Grand Total 48,000/-

(ii) Raw Material (Per month):

Sl. Rate Value
Item description Qty.
No. (Rs.) (In Rs.)
1. Dough (800 kg/day) 20,000 kg 20 4,00,000/-
2. Soft Water 512 kg 5 2,560/-
3. Sugar 32 kg 30 960/-
4. Salt 16 kg 4 64/-
5. Shortening or ghee 32 kg 100 3,200/-
6. Compressed yeast 9.60 kg 100 960/-
7. Skimmed milk powder 32 kg 250 8,000/-
Mineral yeast food or
8. 2.80 kg 200 560/-
dough conditioner
Total: 4,16,304/-
(iii) Utilities: (Per Month)

1. Electricity 10,000/-
2. Water charges 1,000/-
Total: - 11,000/-

(iv) Miscellaneous Expenses (Per Month)

Sl. No. Description Amount (Rs)

1. Rent 5,000/-
2. Office expenses 2,000/-
3. Consumables 2,500/-
4. Repairs and maintenance 2,500/-
5. Sales expenses 5,000/-
Total: - 17,000/-

(v) TOTAL WORKING CAPITAL (PER MONTH) Rs.4,92,304/-

Say Rs.4,92,300/-

(C) TOTAL CAPITAL INVESTMENT:

1. Machinery & Equipment 5,25,000/-

2. Working Capital per month 4,92,300/-

Total: 10,17,300/-
(D) MEANS OF FINANCE:

Total Project Cost 10,17,300/-

Promoter contribution 5,42,300/-

Finance required from the Bank 4,75,000/-

6. FINANCIAL ANALYSIS

(1) Cost of Production (Per Annum)

1. Recurring Expenses 59,07,600/-

2. Depreciation on Machinery @ 10% 50,000/-

3. Interest on Total Investment @ 12.0% 1,22,076/-

Total: 60,79,676/-

Say 60,79,700/-

(2) Turn Over (per year) by Sales

Quantity Rate/ Packet

Product Value (Rs.)
(Packets) (Rs.)

Tissue Paper 9,00,000 7.50/- 67,50,000/-

(3) Net Profit (per year)

Sales Value (-) Cost of Production

67,50,000/- (-) 60,79,700/- = Rs.6,70,300/-

(4) Net Profit Ratio:

Net profit X 100 6,70,300 X 100 = 9.93%

Turn Over/Annum 67,50,000

(5) Rate of Return on Investment:

(Net Profit/Total Capital Investment)

Annual Profit X 100 6,70,300 X 100 = 65.89%

Total Capital Investment 10,17,300

(6) Break Even Point/Analysis:

Fixed Cost (Per Annum):

1. Rent Rs. 60,000/-

2. Depreciation Rs. 50,000/-

3. Interest on Capital Investment Rs. 1,22,076/-

4. 40% of Wages of Staff & Labour Rs. 2,30,400/-

5. 40% of other contingent expenses Rs. 1,34,400/-

Total Fixed Cost: Rs. 5,96,876/-

Say: Rs. 5,96,900/-

Break Even Point:

Fixed Cost X 100 5,96,900/- X 100 = 47.10%

Fixed Cost + Annual Profit 5,96,900/- + 6,70,300/-
7. REPAYMENT SCHEDULE

Repayment of loan Rs.4.75 lakh will be in 5years with 60 instalments. The

rate of interest has been calculated @ 12.5% per annum however the rate of
interest may vary while implementing the project.

(Rs. in lakhs)

Total Total
Year Months Principle Instalment Interest
Interest repayment

1 12 0.73 1.28 0.55 0.55 0.73

2 12 0.83 1.28 0.45 1.00 1.56

3 12 0.94 1.28 0.34 1.34 2.50

4 12 1.06 1.28 0.22 1.56 3.56

5 12 1.19 1.28 0.09 1.65 4.75