CLOUD BAKERY

BUSINESS PROJECT REPORT

COMPANY NAME: GLENARY’S

Office Address:

glenaryscakes.org

DONE BY: NAQUIA MAMOOWALA

TABLE OF CONTENTS
1. EXECUTIVE SUMMARY.........................................................................................................................3
1.1 Business Background...........................................................................................................................3
1.2 Objectives (LONG-TERM AND SHORT-TERM).............................................................................3
1.3 Business profile....................................................................................................................................3
1.4 Financial Requirement.........................................................................................................................4
2. KEY PROJECT ACTIVITIES.......................................................................................................................4
2.1 Manufacturing Process.........................................................................................................................4
2.2 Production Program..............................................................................................................................4
3. MARKET ANALYSIS..................................................................................................................................5
3.1 Product description...............................................................................................................................5
3.2 Market description and target clients...................................................................................................5
3.3 Pricing Structure...................................................................................................................................5
4. MARKET ASSESSMENT.............................................................................................................................6
4.1 Price.........................................................................................................................................................6
4.2 PRODUCT...........................................................................................................................................6
4.3 PLACE.................................................................................................................................................6
4.4 PROMOTION......................................................................................................................................7
5. FINANCIAL EVALUATION....................................................................................................................8
5.1 Projected investment expenditure.............................................................................................................8
5.2 Projected Profit & Loss Statement (Rs.Lakhs).........................................................................................9
5.3 Projected Cash Flow Statement...............................................................................................................10
5.4 Ratios.......................................................................................................................................................11
6. OPERATIONAL PLANNING.....................................................................................................................12
6.1 Plant location......................................................................................................................................12
6.2 Plant layout.........................................................................................................................................12
7. ORGANISATIONAL PLAN........................................................................................................................13
7.1 Manpower requirement and budget.........................................................................................................13
7.2 Organizational structure..........................................................................................................................13
8. Exit strategy..................................................................................................................................................13
9. SWOT ANALYSIS/ risk analysis................................................................................................................14
10. APPENDIX...............................................................................................................................................16
1. EXECUTIVE SUMMARY

1.1 Business Background

Bakery products have long been basic food products for human nutrition. The convenience,
accessibility, and nutrition profile associated with them are the major factors of their sustenance in
the Indian modern market. Customers want baked goods that are ‘guilt-free’ and are increasingly
seeking gluten-free products Alongside healthier options, millennials in particular are always
seeking new flavours and experiences. This is where Glenary’s set foot in with the ever rising
demand for its premium specialty cakes and healthy pastries all over Kolkata city. Glenary’s is a full
fledged home based bakery business for 4 years which caters to customized needs during special
events such as weddings, parties, gatherings etc. With a solid 500+ customer base, we have been
able to make a handsome profit of 40%. In the proposed business plan, we intent to expand our
business to a higher and organized level by entering the new thriving area of standalone cloud
kitchens. Market surveys and research have revealed that there is an average daily footfall of 100+
customers in salt lake area in the city, the housewives and youngsters bring in the maximum
business, and that there are not enough confectioneries to tap the rising demand. Taking into
account the neighbourhood and other areas scaling up to 8kms , the potential market is as large as 5
lakh customers. The financial projections have been conservative based on assumption that even if
acceptability is by only 1% of the total market, it displays a handsome profit of 30%, which is very
promising and motivating for the owner.
The owner is the head chef, a graduate in ACPA culinary school, self-driven and talented. The vision is
to establish chains of standalone cloud kitchens across India. Since it’s a budding business, loans
from bank are seeked. Even though, Glenary’s is new to this high scale business, it is backed by
experienced associates having a thriving business of their own for about 15 years.

1.2 Objectives (LONG-TERM AND SHORT-TERM)

Long term: To become the best cakes and pastry caterer and establish various cloud kitchens
across the country with full fledged in-house delivery.

Short term: To cater premium quality specialty cakes and healthy pastries with fast and reliable in
-house and outsourced doorstep delivery options.
1.3 Business profile
Name of the Promoter :
Business Name : Glenary’s
Status of the Promoter : Proprietor
Head Office Address :
Website: glenaryscakes.org
Android application: glenary’s
Phone Number : 72999 70022 Email Id : glenaryskolkata@gmail.com
 1.4 Financial Requirement

S.No Particulars Amount (Rs)

i Own Investment/Equity 3,65,000
ii Term Loan 19,90,000
iii Working capital Loan 4,99,000
Total 28,54,000
A total of 28.5 lakhs will be required to establish the business, lease machinery and rent space for
kitchen and, purchase raw materials and equipments. Details of proposed plan is given in the below
sections.

2. KEY PROJECT ACTIVITIES

Summarized activity and/or topic
2.1 Manufacturing Process
Technical know-how availability: A detailed study material and well trained and experienced pastry
chefs are available.
Step-by-step description of the manufacturing process (raw material -finished goods) Batter
preparation-Grinding-Mixing with creams sponge preparation-Cream preparation-Baking -Placing
the toppings/decorating.
2.2 Production Program
No. of working days/annum: 300 Days

No. of working shifts (8hrs)/day: One shift/Day

Installed capacity (annual) : 15 Tons/Annum

Utilized capacity (%)

Year - I----- 50%
Year - II----- 65%
Year - III-----72%

S.No items Quantity Produced/Yr Capacity

Utilization(%
1 Customized cake and 7,500 kgs ( 50% ) – 1st year 15000 Kgs ( 100% )
standardized pastries
2 Customized cake and 9,7500 kgs ( 50% ) –2nd year 15000 Kgs ( 100% )
standardized pastries
3 Customized cake and 10,800 kgs ( 50% ) –3rd year 15000 Kgs ( 100% )
standardized pastries
3. MARKET ANALYSIS

3.1 Product description

Manufacturing of premium 2 tier, 3 tier and 4 tier wedding, party and designer Cakes, varieties of
Cookies and 20+ variety of exotic pastries by well trained chefs and cooks based on the order and
design given by the customer.

3.2 Market description and target clients

Glenarys is entering an untapped but trending market of virtual restaurant. Studies as well as
market survey has proven that the supply of good quality bakery goods is low and demand is ever
rising which gives us a unique and profitable exposure in the market since competition is at bay. It
is also proven in a report by The Economic Times that h high-end customers are ready to shell out
extra bucks and go for more exotic cakes rather than the regular ones which Glenary’s specializes
in.

Target clients:
i. Event corporates,
ii. School and college going students
iii. Families.
iv. Locals planning large events and celebrations

3.3 Pricing Structure

Cakes Amount Cookies Amount Pastries Amount
Total product cost 1 tier- Rs550/kg Premium- Rs400/kg Specialty- Rs 650/kg
per unit (fixed 2 tier- Rs 650/kg Standard- Rs 320/kg Standard- Rs 400/kg
cost/unit 3 tier- Rs800/kg
+variable /unit)+tax Seasonal cakes-
additional 20%
Desired Profit 70% 70% 70%
Sale Price (including Ranging from Rs Ranging from Rs Ranging from Rs 80-
tax) 950- Rs 1,500/kg 200- Rs 350/ box of Rs 150 /slice
6
 License Application Status
FSSAI license Approved Yet to receive
GST Registration Approved Received
Health License Yet to be Applied
approved
Police Eating Approved Received
House license
Fire License (NOC) Approved Received

3.4 Licensing Agreement

4. MARKET ASSESSMENT
4.1 PRICE
Leadership pricing strategy is used to maintain premium quality and brand equity. A handsome
profit of 70% will be charged for the unique and personalized touch given to the product. We
mainly focus on how customers will perceive our products and thus have a value based pricing
strategy which means the price may go higher lower from the pricing structure mentioned above
according to the customer’s specific demand.

4.2 PRODUCT
i.23 varieties of pastries and 3-4 varieties of exotic seasonal pastries/fresh fruit pastries
ii. 3 variants of cookies
iii. 1-4 tier specialty cakes (as per the customer’s request)
iv. In – house delivery service/ delivery through third party application ( zomato, swiggy, dineout,
trip advisor)
v. Dedicated and running website and android application to provide customer service and handle
order requests.
vi. All items will be delivered in 6 layer protected cardboard boxes with quality design and
branding.
4.3 PLACE
Glenary’s will open as a cloud bakery in the town of Salt Lake, Kolkata, which has highest demand
for the products we offer. Also since we are cutting down on dine in options; we save on the cost of
footfalls, high-end site and parking space. Although the company is beginning as a little bakery, the
objective of the business is to continually grow. In order to do this, the company will slowly open
more such virtual kitchens starting in different locality of the city, and gradually expand to other
cities. Likewise, the catering service will grow as more bakeries are opened and perhaps the ability
to cater multiple events at one time will be reached. The internet is an extremely efficient way to
expand the business to a wider range of areas; therefore, Glenary’s has developed a website on
which customers can place orders. Glenary’s already has its own logistics to deliver the orders and
will find an appropriate way to safely ship through other sources such as third party applications.
Doing so will not only increase the number of consumers that will be able to access the business,
but will also allow Glenary’s to determine appropriate locations for opening more successful cloud
bakeries, based on the areas from which the most orders are placed.

4.4 PROMOTION
Marketing is extremely necessary as it is the single source of getting orders. Since we are not
spending on location and other maintenance costs, we have kept a sizeable sum aside for
marketing. Online marketing works best in favor of cloud kitchens. 
 The first thing we would do is to get Glenary’s registered on restaurant listing and review
sites such as Zomato, Tripadvisor, Burrp, etc., and encourage positive reviews from our
regulars.
 We have engaging Facebook and instagaram business accounts for advertising exclusive
deals and discounts. Also we would promote our brand through micro influencers by
sending PR packages.
 Advertise our in-house food delivery App through community sponsorship, participation
and contribution.
 Publicity through reference and word of mouth
5. FINANCIAL EVALUATION
5.1 Projected investment expenditure
Fixed assets
Land and Building

Particulars Area required Total value

Land Na Na
Building Na Na

Machineries/Equipments:

S.No Description Nos. Rate (Rs) Total value(Rs)

required
1 Dough Kneeder 1 65,000 65,000
2 Planetary Mixers 2 90,000 1,80,000
3 Electric Oven 2 50,000 1,00,000
4 Other manufacturing equipments 1 each 2,00,000 2,00,000

5 Diesel Generators 1 4,00,000 4,00,000

6 Microwave oven, Hot case 1 each 1,50,000 1,50,000

7 Air Conditioners 1 60,000 60,000

8 Kitchen & Cutlery Equipments 3,00,000 3,00,000

9 Cake Mould 20 10,000 2,00,000

Misc. Fixed Assets:

S.No Description Nos. Rate (Rs) Total value(Rs)

required
1 Furniture 1 15,000 15,000
2 Computers 2 50,000 1,00,000
3 inverter 1 50,000 50,000
4 CCTV Camera 1 10,000 10,000
Preliminary and Pre-operative Expenses:

S.No Particulars Amount (Rs)

1 Licenses & Approvals 25,000
2 R& D Expenses 25,000
3 Contingencies 50,000
Working Capital:

S.No Item Duration Total Value (Rs)

I YR II YR III YR IV YR V YR
1 Raw material stock One 75,000 90,000 1,05,000 1,17,000 1,27,500
month
2 Establishment expenses 9,000 9,900 10,800 14,080 15,300

3 Start-up expenses 25,000 Nil Nil Nil Nil

4 Overhead expenses 4,80,000 3,80,000 3,80,000 4,20,000 4,50,000

Total Cost of the Project:

S.No Particulars Total value (Rs)

1 Fixed Capital 18,30,000
2 Working Capital 9,24,000
3 Preliminary & Preoperative Expenses 1,00,000
4 Total 28,54,000

5.2 Projected Profit & Loss Statement (Rs.Lakhs)

Mar-20215 Mar-2022 Mar-2023 Mar-2024 Mar-2025

Sales 30.00 39.00 43.20 48.00 54.00
Total
OtherIncome
Income 37.98
0.00 49.37
0.00 54.69
0.00 60.77
0.00 68.36
0.00
Raw Material
Closing StockConsumed 4.32
7.98 6.10
10.37 6.84
11.49 7.60
12.77 8.55
14.36
Wages 5.22 6.79 7.52 8.35 9.40
Power & Fuel 1.50 1.95 2.16 2.40 2.70
Rent 1.50 1.95 2.16 2.40 2.70
Other Manufacturing Costs 1.50 1.95 2.16 2.40 2.70
Administration Expenses 1.14 1.48 1.64 1.82 2.05
Selling & Distribution Expenses 1.50 1.95 2.16 2.40 2.70
Excise Duty 1.50 1.95 2.16 2.40 2.70
Depreciation 2.60 2.34 2.10 1.90 1.71
Finance Charges 1.19 2.09 1.49 0.90 0.30
Total Expenditure 21.97 28.55 30.39 32.57 35.51
 5.3 Projected Cash Flow Statement

Mar-2021 Mar-2022 Mar-2023 Mar-2024 Mar-2025

Net Profit as per Tax 16.01 20.82 24.30 28.20 32.85
Add: Depreciation 2.60 2.34 2.10 1.90 1.71
Add: Capital Contribution 3.71 0.00 0.00 0.00 0.00
Add: Loan from Bank 24.82 0.00 0.00 0.00 0.00
Add: Increase in Sundry Creditors 0.40 0.12 0.06 0.06 0.08
Add: Decrease in Sundry Debtors 0.00 0.00 0.00 0.00 0.00
Add: Decrease in Stock 0.00 0.00 0.00 0.00 0.00

Total Inflow 47.54 23.28 26.46 30.16 34.64

Less: Purchase of Fixed Assets 26.00 0.00 0.00 0.00 0.00
Less: Repayment on Loan to Bank 4.96 4.96 4.96 4.96 4.96
Less: Increase in Sundry Debtors 5.00 1.50 0.70 0.80 1.00
Less: Decrease in Sundry Creditors 0.00 0.00 0.00 0.00 0.00
Less: Increase in Stock 7.98 2.39 1.12 1.28 1.59
Less: Loans & Advances 0.00 0.00 0.00 0.00 0.00

Total Outflow 43.94 8.85 6.78 7.04 7.55

Opening Balance 0.00 3.60 18.03 37.71 60.83
Surplus/Deficit 3.60 14.43 19.68 23.12 27.09
Closing Balance 3.60 18.03 37.71 60.83 87.92

Usual Mar- Mar- Mar- Mar- Mar-

Norms 2015 2016 2017 2018 2019
Current Ratio >1.33 41.45 67.12 97.24 127.50 154.56
Debt-Equity Ratio <2.00 1.01 0.37 0.15 0.05 0.00
5.4
Debt Service Coverage Ratios
>1.5 2.80 3.25 4.00 4.97 6.30
Ratio
TOL / TNW <3.00 1.03 0.38 0.16 0.06 0.01
Interest Coverage Ratio >2.00 14.45 10.96 17.31 32.33 110.50
Net Profit Margin(%) >5.00 53.37 53.38 56.25 58.75 60.83
6. OPERATIONAL PLANNING
6.1 Plant location
Salt Lake, the new hangout for city residents, has etched success stories in different spheres. This
influx of people has benefited the bakery and confectionary business in the area along with many
others. Today, Salt Lake hosts more than 25 bakery outlets, along with individuals who are
registering nearly 30 percent growth year on year. There is an average footfall of 100 clients. Even
with so many outlets, surveys have proved that the demand for customized and exotic cakes is
ever.Almost 40% of respondents seek for home delivery services. Thus, we are giving our
customers the benefit of delivery at no extra charge if they order from our Glenary’s App. This is a
value added service that is not that prominent in other parts of the city. Commuting is hassle free
and convenient in this area due to low traffic.

6.2 Plant layout

The basic plant layout of a 250 sq ft

kitchen
7. ORGANISATIONAL PLAN
7.1 Manpower requirement and budget

S.No Particulars No. Wages/Salary Annual

p.m (Rs) expenses (Rs)

1 Skilled 2 25000 6,00,000

2 Semi-skilled 2 12000 2,88,000

3 Unskilled 1 5000 60,000

4 Office staff

5 Anyother

Total 9,48,000
7.2 Organizational structure
Glenary’s is a single proprietor company owned by Ms. Nysha Patel. She would be the chief pastry
chef and take care of day to day operations as the sous chef. Recruitment of other bakers and line
workers would be done through a screening process from recognized online culinary websites by
the chief chef. Future plans for manpower requirement would be executed once the business starts
giving profitable ROI. The future plans would include:
i. Executive pastry chefs
ii. Pastry artists
iii. Inventory and quality control manager
iv. Administrator
v. More delivery boys

8. EXIT STRATEGY
If the proposed project does not work properly, the business shall be wound up through liquidation
over time. The strategy is to extract profits over time to pay off the debt rather than putting the
money for expansion. After maximum profits have been drawn out, the rest of debt would be
settled by selling off the equipments. Also if money
INTERNAL FACTORSfalls short, the business is backed by
experienced associates.
STRENGTHS (+) WEAKNESSES (-)
 500+ existing customer base
 High demand for the products  High cost on logistics
offered  Inadequate finance
 Space and cost effective  Talent availability is inadequate
 Unique varieties of cakes and
pastries offered 9. SWOT
 70% high profit margin ANALYSIS/ R
 Unsaturated market ANALYSIS

EXTERNAL FACTORS
OPPORTUNITIES (+) THREATS (-)
 New residential buildings are
being established which means
20% larger market
 Cloud kitchen listing exposure on
 Lot of political interference
famous food websites like
 Consumer resistance against certain
zomao, swiggy, dineout.
use of technology
 30% growth in bakery business
every year
10. APPENDIX
S.no Website / books
https://economictimes.indiatimes.com/east/why-bakeries-in-salt-
1.
lake-are-witnessing-rise-in-demand/articleshow/16448784.cms
https://www.posist.com/restaurant-times/cloud-kitchen/cloud-
2.
kitchen-setup/open-cloud-kitchen-restaurant.html

3 Entrepreneurship by Madhurima Lal

https://www.posist.com/restaurant-times/cloud-kitchen/cloud-
4.
kitchen-business-mistakes-to-avoid.html

5. https://limetray.com/blog/start-bakery-business-india/