25
Bakery PRODUCTS
PRO DUCT CO DE
Q UALITY AN D STAN DARDS
PRO DUCTIO N CAPACITY
(PER AN N UM)
MO N TH AN D YEAR
O F PREPARATIO N
PREPARED BY
I NTRODUCTION
Bakery industry in India is the largest
of the food industries with an annual
turnover of about Rs. 3000 crores. India
is the second largest producer of biscuits
after USA. The biscuit industry in India
c o m p r i se s o f o r gan i ze d an d u n -
organised sectors. Bread and Biscuits
form the m ajor baked foods accounting
for over 80% of total bakery products
produced in the country. The quantities
of bread and biscuits produced are more
or less the sam e. However, value of
biscuits is more than bread. The industry
h as t r ad i t i o n al l y b een an d l ar gel y
continues to b e in the unorganized
sector contributing over 70% of the total
p r o d u ct i o n . Bak er y p r o d u ct s o n ce
considered as sick man’s diet, have now
becom e an essential food item s of the
vast m aj ority of population. Though
bakery industry in India has been in
existence since long, real fillip came only
: 205801010 (Biscuit)
: PFA , A ct 1 9 5 4 (M a nd a tor y ) a nd BIS/
Specification (optional)
W afers: IS 2397:1988
Biscuits: IS 1011:1992
: Q uantity: 60 MT
Value : Rs. 56,78,400
: March, 2003
: Small Industries Service Institute
A-208, Kamla N agar, Agra-282005
Phone N o. 2381023, Fax (0562) 381287
E-mail: sisiagra@nde.vsnl.net.in
in the later part of 20th century. The
contributing factors were urbanization,
resulting in increased dem and for ready
to eat products at reasonable costs etc.
MARKET POTENTIAL
The bakery units are unevenly spread
am o n g St at e s. Th e se ar e m ai n l y
c o n c e n t r at e d i n t h e St at e s o f
Mah ar ash t r a, West Ben gal , An d h r a
Pradesh, Karnataka and Uttar Pradesh.
I n d u st r i al l y ad v an c e d St at e s l i k e
Maharashtra And West Bengal have very
Large num ber of bakery units. The per
cap it a co n su m p t io n is very h igh in
industrialized States like Maharashtra
an d West Ben gal . Th e Bi scu i t s are
becom ing quite popular in rural areas
as well. Nearly 55% of the biscuits are
consum ed by rural sector. The higher
consum ption of biscuits in rural area
could be attributed to its position as a
snack, longer shelf life and better taste
which is liked by different cross sections
146 WAFER BISCUITS (NEW)
of population. There is no m arketing
problem as every shop is a m arket for
wafer biscuits.
Bak ery p ro d u ct s st i l l rem ai n t h e
cheapest of the processed ready to eat
products in the country. The production
of Bakery products has increased from
5.19 lakh tonnes in 1975 to 18.95 lakh
t o n n es in 1 9 9 0 reco rd in g f o u r-f o ld
increase in 15 years. Am ong the bakery
products, biscuits occupy an im portant
place as they contribute over 33% of
total products processed. Over 79% of
the biscuits are produced by small scale
sector consisting of both factory and
non-factory units. The growth rate for
b ak ery products is estim ated at an
av er age o f 9 . 8 % p er an n u m . Th e
d e m an d f o r b ak e r y p r o d u c t s w i l l
continue to increase in future. The
estim ated growth rate of 9.8% is on the
l o wer sid e co n si d erin g t h e p resen t
p o t e n t i al i t y o f b ak e r y p r o d u c t s,
particularly in rural areas, where about
7 0 % o f t h e p o p u l at i o n l i v e s.
Encouraging trends in consum ption of
bakery products by population of lower
and middle income groups indicate vast
scope for consideration of nutritional
enrichm ent of bakery products.
B ASI S AND PRESUMPTIONS
1. Th e Pr o j ect Pr o f i l e h as b een
prepared on the basis of Single
Shift of 8 hours a day and 25-
working days in a m onth at 75%
efficiency.
2. It is presum ed that in the first
year, the capacity utilization will
be 70% followed by 85% in the
second year with 1 0 0 % in the
subsequent years.
3. The rate of salaries and wages
for skilled workers and others are
on the basis of the minimum rates
in the State of U.P.
4. Interest rate for the fixed and
working capital has been taken @
1 5 % o n an aver age wh et h er
f i n an c e d b y t h e Ban k e r s o r
Financial Institutions.
5. The margin money required is the
minimum 30% of the total capital
investment.
6. Th e r e n t al v al u e f o r t h e
ac c o m o d at i o n of o f f i ce,
workshop and other covered area
h as b een t ak en @ Rs 2 0 p er
Sq.m tr.
7. The rates in respect of machinery,
equipm ent and raw m aterials are
those prevailing at the tim e of
preparation of the Project Profile
and are likely to vary from place
to place and supplier to supplier.
When a tailor made project profile
is prepared, necessary changes
are to be m ade.
8. Th e p ay b ack p eri o d m ay b e
5-years after the initial gestation
period.
9. Th e ge st at i o n p e r i o d i n
im plem entation of the proj ect
m ay b e to the tune of 6 to 9
months which includes making all
arrangem ents, com pletion of all
form alities, m arket surveys and
tie-ups etc.
I MPLEMENTATION SCHEDULE
The im plem entation of the proj ect
includes various jobs/ exercises such as
procurem ent of technical know-how,
m arket surveys and tie-ups, preparation
o f p ro j ect rep o rt, selectio n o f site,
r egi st r at i o n , f i n an c i n g o f p r o j ec t ,
procurem ent of m achinery and raw
 WAFER BISCUITS (NEW) 147

m aterials etc., recruitm ent of staff, i n gr ed i en t s l i k e su gar, v an asp at i ,

erection/ com m issioning of m achines, colours, essence are mixed in a planetary
t r i al p r o d u c t i o n an d c o m m e r c i al m ixer to for m cream . The cream so
production etc. In order to efficiently and prepared will be applied on the sheets
successfully implement the project in the t o f o r m san d wi t ch . Th er eaf t er t h e
shortest period, simultaneous exercises sandwitch will be cut into biscuits and
are carried out. Project im plem entation packed in pouches.
will take a period of 8 m onths from the
date of approval of the scheme. Breakup Qu al i t y Co n t ro l an d St an d ard s
of activities with relative tim e for each The PFA Act, 1954 is m andatory and
activity is shown below: BIS Specifications are optional for Wafer
Activity Period Biscuits. The relevant Bureau of Indian
(In Months) St an d ard s Sp eci f i cat i o n f o r Waf ers
(second revision) (with Am endm ent No.
1. Sc h e m e Pr e p ar at i o n 0-1 2) is IS:2397:1988. The specification for
and approval Biscuits (third revision) (with Amendment
2. SSI Provisional 1-2 No. 1) is IS:1011:1992. The details of
Registration specifications can be obtained from the
3. Sanction of loan 2-5 Bureau of Indian Standards, Manak
4. Cl ear an ce f r o m St at e 3-4 Bhavan, 9, Bahadur Shah Zafar Marg,
Pollution Control Board New Delhi-110 002.
5. Placem ent of order for 4-5 Pr o d u ct i o n Cap aci t y
m achinery and delivery
6. Installation of m achines 6-7 1. Production of Cream ed : 60 MT
Wafer Biscuits
7. Power connection 6-7
2. Va l u e o f Cr e a m e d : Rs. 56,78,400
8. Trial run 7-8 Wafer Biscuits
9. Co m m e n c e m e n t o f 9 onwards
Production Mo t i ve Po wer 25 K.W.

TECHNICAL ASPECTS En er gy Co n ser vat i o n

Pro cess o f Man u f act u re
the conservation of energy:
The m ain product of the unit wafer
b iscuits can b e m anufactured after
ob taining raw m aterials lik e m aida,
starch, soda, salt, colour, preservatives,
vanaspati, suger, flavours etc. which are
easily available in local m arkets. The
calculated am ount of m aida, starch,
vanaspati, water etc. are m ixed in a
m ix er t o f o r m p ast e. Th e p ast e so
form ed will be poured into pre-heated
m ould to bake wafer sheet. The other
The following steps m ay be taken for
1. Machinery and equipm ent parts,
w h i c h ar e r ev o l v i n g an d
reciprocating should be properly,
lubricated from tim e to tim e with
suitable lubricant oil.
2. Lay-out of the unit should be in
such a way that no back tracking
of m aterial is there.
3. Al l el ect r i c swi t ch es m ay b e
turned off, when not required.
148 WAFER BISCUITS (NEW)

4. The entire transm ission belt will Sl . Descr i p t i o n Q t y. Am o u n t

be tightened before starting the No. (I n Rs. )
work is wherever applicable. 4 Planetary Mixer (3 Speed 1 4 5 ,0 0 0
system , steel body, capacity
5. As far as possible, Solar Energy 25 Kg./ Hrs., 2 KW.)
and day light will be used keeping 5 Sealing (Packaging) Machine 1 1 5 ,0 0 0
all the other lights off. (1 KW)
6. As far as possible, inductive load 6 Working table with S.S./ 2 5 ,0 0 0
of motor will be reduced and high Aluminium top
power factor will be used with the 7 Weighing Balance platform 1 5 ,0 0 0
aid of capacitors of appropriate type

sizes. 8 Alum inium vessels, Mats, – 1 0 ,0 0 0

cups, Mugs, ladle, spoons,
gloves, etc.
Po l l u t i o n Co n t r o l
9 Electrification and Installation – 4 2 ,0 0 0
1. Th i s i n d u st r y m ay i n v o l v e Charges @ 10% of cost of
p o l l u t i o n t o so m e ex t en t f o r Plant and Machinery
wh ich St at e Po llu t io n Co n t ro l 1 0 Cost of Office furniture and – 3 0 ,0 0 0
Board has to be approached. Equipment etc.
To t al 4 ,9 7 ,0 0 0
2. The m inim um height of shed will
be m aintained with exhaust fans 3 . Pre-Op erat i ve Ex p en ses 2 0 ,0 0 0
installed for removing decongestion,
To t al Fix ed Cap it al (1 +2 +3 ) 5 ,1 7 ,0 0 0
proper ventilation, rem oval of
cokes, fum es etc. B. Wo r k i n g Cap i t al (p er m o n t h )
(i ) St af f an d Lab o u r
FINANCIAL ASPECTS
Sl . Desi gn at i o n No. Sal ary Amount
A. Fi x ed Cap i t al No. (In Rs.) (In Rs.)

1 . Lan d an d Bu i l d i n g Am o u n t (a) Adm inistrative and Supervisory

(I n Rs. )
i) Production Manager 1 5000 5 ,0 0 0
Land and Building (rented) 2 ,0 0 0
@ Rs. 20 Sq. Meter (per m onth) ii) Supervisor/ Store-keeper 1 4000 4 ,0 0 0
Covered Area 100 Sq. Meter iii) Accountant 1 3000 3 ,0 0 0
iv) Salesman 3 3000 9 ,0 0 0
2 . Mach in ery an d Eq u ip m en t
v) Peon/ Watchman 1 2000 2 ,0 0 0
Sl . Descr i p t i o n Q t y. Am o u n t
No. (Rs. ) vi) Sweeper 1 1500 1 ,5 0 0

1 Manual Wafer Biscuit 1 2 ,7 5 ,0 0 0 (b) Technical, Skilled and Unskilled

Machine (6 Plates) (Including i) Skilled Worker 3 3000 9 ,0 0 0
Creaming, Cutting and
Support Tables, Capacity cream ii) Sem i-skilled Worker 2 2500 5 ,0 0 0
wafer 25-30 Kg./ Hrs., 15 KW)
iii) Helper 4 2000 8 ,0 0 0
2 Butter Mixing Machine 1 3 5 ,0 0 0
To t al 4 6 ,5 0 0
(7-30 Kg./ Hrs. Butter, 2 KW)
Perquisites @ 15% 6 ,9 7 5
3 Sugar Grinding Machine 1 3 5 ,0 0 0
(30-50 Kg./ Hrs., 2 KW) To t al 5 3 ,4 7 5
 WAFER BISCUITS (NEW) 149

(i i ) Raw Mat er i al C. To t al Cap i t al In vest m en t

Sl . Descr i p t i o n Q t y. Rat e Am o u n t Am o u n t (I n Rs. )
No. (I n Rs. ) (I n Rs. )
Fixed Capital 5 ,1 7 ,0 0 0
i) Wheat Flour (Maida) 4000 8 3 2 ,0 0 0 Working Capital (for 3 m onths) 1 1 ,2 0 ,4 2 5
Kg. per Kg. To t al 1 6 ,3 7 ,4 2 5
ii) Maida starch, vegetable 1000 7 1 ,4 7 ,0 0 0
fat, salt, soda, colours, Kg.
MACHINERY UTILIZATION
preservatives etc. It is expected that during first year
iii) packaging m aterial – – 1 ,2 5 ,0 0 0 m achinery utilization will be 70%, 85%
during second year followed by 100%
To t al 3 ,0 4 ,0 0 0 in subsequent years.
(i i i ) Ut i l i t i es Am o u n t
(I n Rs. )
FINANCIAL ANALYSIS
Electricity 5 ,0 0 0 1 Co st o f Pro d u ct i o n (p er an n u m ) Am o u n t
(I n Rs. )
Water 1 ,0 0 0 (a) Total Recurring Cost 4 4 ,8 1 ,7 0 0
To t al 6 ,0 0 0 (b) Depreciation on Machinery and 4 6 ,7 0 0
Equipm ent @10%
(i v) Ot h er Co n t i n gen t Ex p en ses Am o u n t
(c) Depreciation on Office Equipments 6 ,0 0 0
(I n Rs. )
and Furniture @ 20%
1 . Rent 2 ,0 0 0 (d) Interest on Total Capital 2 ,4 5 ,6 1 4
Investm ent @ 15%
2 . Postage and Stationery 500
To t al 4 7 ,8 0 ,0 1 4
3 . Advertisem ent and Publicity, 1 ,0 0 0
Legal Fee etc. o r Say 4 7 ,8 0 ,0 0 0

4 . Telephone 500 2 . Tu rn -o ver (p er an n u m )

5 . Repair and Maintenance 500 Sl . Descri p t i o n Q t y. (Kg. ) Rat e Am o u n t

No. (p er Kg. ) (I n Rs. )
6 . Transportation 1 ,0 0 0
(i) Wafers (8 Gm .) 2 ,0 0 0 125 2 ,5 0 ,0 0 0
7 . Consumables 500
MRP Re. 1
8 . Sales Expenses 3 ,0 0 0 (ii) Wafers (18 Gm .) 1 ,0 0 0 111 1 ,1 1 ,0 0 0
MRP Rs. 2
9 . Insurance 500
(iii) ATC Pack (150 Gm.) 1 ,0 0 0 153 1 ,5 3 ,0 0 0
10. Miscellaneous Expenses 500
MRP Rs. 23
To t al 1 0 ,0 0 0
(iv) Checkers (14 Gm .) 1 ,0 0 0 214 2 ,1 4 ,0 0 0
MRP Rs. 3
v) To t al Recu r r i n g Ex p en d i t u r e Am o u n t
(p er m o n t h ) (I n Rs. ) To t al 7 ,2 8 ,0 0 0

1 . Salary and Wages 5 3 ,4 7 5 Less sales expenses @35% 2 ,5 4 ,8 0 0

2 . Raw Material 3 ,0 4 ,0 0 0 Net Sales Realization (turn over) 4 ,7 3 ,2 0 0
3 . Utilities 6 ,0 0 0 (per m onth)

4 . Other Contingent Expenses 1 0 ,0 0 0 Net Sales Realization (turn over) 5 6 ,7 8 ,4 0 0

(per year)
To t al 3 ,7 3 ,4 7 5
3 . Net Pro f i t (p er an n u m ) (Before Incom e Tax)
Wo r k i n g Cap i t al (f o r 3 m o n t h s) Rs. 1 1 ,2 0 ,4 2 5 Sales – Cost of Production = Rs. 8 ,9 8 ,4 0 0
150 WAFER BISCUITS (NEW)

4 . Net Pro f i t Rat i o Noida-201 301 (U.P.).

= Net Profit × 100
Turn-over 4. M/ s. Gh azi ab ad Pr i n t i n g an d
= 8,98,400 × 100
Packing Industry Pvt. Ltd.
5 6 ,7 8 ,4 0 0 Opp. Ganesh Tent House,
= 1 5 .8 % Near DPS, Meerut Road,
5 . Rat e o f Ret u rn
Ghaziabad.
= Net Profit × 100 5. M/ s. Aroras Box and Cartons Pvt
Total Investm ent Ltd.
= 8,98,400 × 100 39th K.M.,
1 6 ,3 7 ,4 2 5
= 5 4 .9 %
Delhi-Jaipur Road,
(N.H. No. 8),
6 . Break -even Po i n t Gurgaon-122 001
Fi x ed Co st (p er an n u m ) Am o u n t (Haryana).
(I n Rs. )
(a) Total Depreciation (on m / c. 5 2 ,7 0 0
6. M/ s. Jain Packaging Products
equipment, dies, tools, and furniture) 33, Sarai Pipal Thala,
(b) Rent 2 4 ,0 0 0 Behind Mangat Ram Dal Mill,
(c) Interest on borrowing 2 ,4 5 ,6 1 4 Subzi Mandi,
(Total Investm ent) Azadpur,
(d) Insurance 6 ,0 0 0 Delhi-110 033.
(e) 40% of Salary 2 ,5 6 ,6 8 0 7. M/ s. United Packaging
(f) 40% of Utilities 2 8 ,8 0 0 19/ 21, Shakti Nagar,
(g) 40% of Other Contingent Expenses 3 6 ,0 0 0 Delhi-110 007.
(excluding rent and insurance)
8. M/ s. Rajat Electronics
To t al 6 ,4 9 ,7 9 4
1309, A-5. First Floor,
B.E.P. Pan Mandi,
= Fixed Cost × 100
Sadar Bazar,
Fixed cost + Profit
Delhi-110 006.
= 6,49,794 × 100
6,49,794 + 8,98,400 9. M/ s. R.D. Singal and Co.
= 42% A-81/ 2, Wazirpur Industrial Area,
Ad d r esses o f Mac h i n er y an d Raw Delhi-110 052.
Mat eri al Su p p l i ers 10. M/ s. Am bica Packers and Printers
1. M/ s. Gem ini Engineers 2687, Kinari Bazar,
F-4, IDA Kukatpally, Dariba Kalan,
Balanagar, Delhi-110 006.
Hyderabad-500 037. 11. M/ s. Control Print (India) Ltd.
2. M/ s. Reliance Engineering Works A-27, Swasthya Vihar,
K. No. 4065, Sec. 46-D, Vikas Marg,
Chandigarh-160 047. Delhi-110 092.
3. M/ s. Authentic Designers Raw Mat eri al Su p p l i ers
C-112, Sector-10,
Local dealers.