1 1.



Bakery products have become very popular throughout the country. Breads and biscuits are the most common products but other items like cakes, pastries, cream-rolls, cookies etc. are also not lagging far behind. These items are consumed by people of all age groups across the board. Nature of these products is such that the consumers prefer fresh items. Shelf life of cakes & pastries is limited and thus local manufacturers enjoy distinct advantage. In spite of continuous increase in the consumption of these items during last few years, the per capita consumption is still very low compared to the advanced countries. There is, thus, good scope for these items. A good pastry is light and airy, easily broken in the mouth (what is called 'short' eating), but firm enough to support the weight of the filling. The dough must be well mixed but care must be taken not to overmix the pastry. This results in long gluten strands and toughens the pastry. Thus, the manufacture of good pastry is something of a fine art. 1.2 Objective

The primary objective of the model report is to facilitate the entrepreneurs in understanding the importance of setting up unit of cakes and pastries. 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 Material Availability

The all important raw materials will be wheat flour, sugar, eggs and ghee for which proper arrangements should be made. Other items like milk powder, yeast, salt, assorted fruits, baking powder, caramel colour, vanilla, butter cream, etc. shall be required in small quantity. 1.4 Market Opportunities

Couple of national brands tried to enter this market in a big way few years back but their products are still finding it difficult to capture the market as the consumer preference is always for freshly prepared cakes or pastries. There are always some well-known bakers at each centre and the real competition would be from them. Hence, it is advisable to have a retail outlet along with bakery apart from sale through other outlets. Changing lifestyles and increase in the standard of living have changed the eating habits of people with liking for instant or ready-to-eat food items. This trend has spread throughout the
Project Profiles - MP Agros 1 Global AgriSystem Pvt. Ltd. Your Partner in Agri-business

MP Agros 2 Global AgriSystem Pvt.6 Project component and cost Major components of the projects and their costs are described in the table hereunder: Project Profiles . Pastries are made in different shapes like square. Manufacturing process It is standardised and simple for all products. Butter cream. Fresh items are always preferred by the consumers. Then mixture of beaten eggs is added to it along with caramel colour and chopped fruits before the mixture are poured into cake pans and baked for around 30-40 minutes. These are. have become very popular. concentrated foods of high caloric value with rich in fat. jam etc. wheat flour and baking powder along with cream. 1. rectangular etc. 1. items like cakes. The layered cake is then chilled and cut with sharp knife in the required shape and size. There is a very good scope to introduce new varieties palatable to local tastes. Sides of the pieces are iced with butter cream or fudge and topped with finely ground cake crumbs or pieces of fruits or chocolate strips and decorated with proper design. cookies etc.country in all age groups and now even people from the rural areas have also joined this band-wagon. Your Partner in Agri-business . Availability of know how and compliances Compliance with the PFA Act is mandatory. thus. pastries. from thick cake sheets. Capacity of the Project The total capacity of the unit is 200 MT. To make cakes. There are many varieties and flavours of cakes & pastries. Bakery products fall under the same category and apart from bread and biscuits. Ltd. cream-rolls. There are no standard flavours or varieties and preference of local population has to be kept in mind. is placed between layers of cake.5 Project description Applications Cakes & pastries are sweet wheat preparations usually made with beaten eggs and yeast as they act as aerating agents. BIS has specified quality standards for both the products. sugar and ghee is mixed thoroughly till it becomes fluffy. colour and garnish.

00 15.00 5.80 0.69 Year 3 2.50 1.22 8.75 0.9 Building The main production block will cost around Rs.99 6.88 lakhs.40 2.86 Global AgriSystem Pvt.000. security deposits etc.22 8.15 0.25 1.12 Working capital assessment ITEMS STOCK OF RAW MATERIAL & PACKING MATERIAL SUNDRY DEBTORS TOTAL MARGIN MPBF INTEREST ON WC Project Profiles .00 6.96 0.00 75.78 PARTICULARS LAND & BUILDING Land Land Development Land Area Building Production Block Buildup Area Contingencies PLANT & MACHINERY Flour Sifter Egg Beater Cake Mixer Suger Pulverizer Oven Baking Pans SS utensils and Misc Contingencies MISCELLANEOUS FIXED ASSETS Misc Assets Contingencies PRE-OPERATIVE EXPENSES Establishment Professional Charges Security Deposits TOTAL LS LS LS 1. Ltd.94 Lakhs.00 0.78 6.50 0.25 0.00 25. 1.94 0.80 0.000.00 1.24 0.1.80 0.86 Year 5 2. 5.7 Land and Building Unit SqM Qty 200 200 SqM 125 10% 1 1 1 1 1 2 2 20% 1 20% 1 1 1 Cost/unit 250.00 150. professional charges.50 1. Your Partner in Agri-business .00 50.18 10.10 Miscellaneous Assets A provision of Rs.8 Plant and Machinery The total cost of the plant and machinery is Rs.46 lakhs would take care of pre-production expenses like establishment.000.MP Agros 3 Year 1 1.000.00 40.000 100.40 2.000.00 50.00 500.55 8.32 2.63 5.000 Total 8.000.00 500.60 7.60 7. 1.000 396.46 3. 1.00 25.18 10. 5.00 5. 6 lakhs would take care of all the requirements. 1.000.08 6.000 50.000.50 1.00 5. 6.38 0.11 Preliminary & Pre-operative Expenses A provision of Rs.

Ltd.35 23.20 Year 5 3.00 68.MP Agros 4 Global AgriSystem Pvt.80 35.00% 1.17 Key indicators NET PRESENT VALUE at current Inflation (Rs.42 3.50 5.39 Year 7 6.89 Year 7 2.00 82.24 32.61 31.62 2.23) Year 3 90.24 10.96 6.70 54.30 1.37 1.30 1.29 0.00% 50.00 85.96 17.30 1.09 4.47 Year 3 6.60 6.53 6.80 33.16 Projected profit and loss account PARTICULARS INCOME EXPENDITURE VARIABLE FIXED GROSS PROFIT PROFIT BEFORE TAX RETAINED PROFIT Year 1 72.30 Year 5 6.86 1.08 44.93 27.39 22.85 1.97 7.96 13.93 7.00 10.33 7.58 Year 5 90. in lakhs) INTERNAL RATE OF RETURN % AVERAGE DSCR BREAK EVEN POINT % PAY BACK PERIOD ( YEARS) 26.61 29.34 1.89 2.55 1.15 Projected balance sheet PARTICULARS LIABILITIES EQUITY CAPITAL RESERVES & SURPLUS TERM LOAN BANK BORROWINGS-WC TOTAL Year 1 6.23) (0.78 5.78 0.40 25.59 96.29 0.82 1.W/O INCREASE IN TERM LOAN INCREASE IN BANK BORROWINGS-WC TOTAL Year 1 1.1.00% 25.62 Year 7 90.29 0.00 84.73 12.58 54.14 Cash flow statement PARTICULARS SOURCES OF FUNDS EQUITY CAPITAL SUBSIDY NET PROFIT (INTEREST ADDED BACK) DEPRECIATION PRELIMINARY EXP.23 1.16 Year 3 5.11 54.78 0.80 33.84 Project Profiles .78 6.29 0.61 27.78 8.86 1.37 1.58 3.96 20.96 11.00% 100% 6.73 3.13 4.78 4.00 7.92 (0. Your Partner in Agri-business .13 Means of finance EQUITY CAPITAL MOFPI SUBSIDY TERM LOAN FINANANCIAL INSTITUTIONS -Payable half yearly Installments TOTAL 25% 10 50.96 6.

23472420/23411034  Gaziabad Printing and Packing Industries Pvt. Your Partner in Agri-business .147003.07% 1.00% 2.00% 3. 21 Yacoob Street. FIXED ASSETS LAND & SITE DEVELOPMENT MAINTENANCE BUILDING PLANT & MACHINERY MISC. Gaziabad. 2 4 8 2 1. Ranjit Press. Patiala. Ltd. Works.00% 1. Project Profiles .1.34% 7. DPS. FIXED ASSETS LAND & SITE DEVELOPMENT 10% 20% 50% 10% 25% 6 6 200 330 14 80% 90% 100% 45 000 10. Ltd. Tel No.5% 25 3.18 Manpower Requirement PARTICULARS SUPERVISORY STAFF PRODUCTION SUPERVISORS WORKERS SKILLED WORKERS SEMI-SKILLED LABOUR SALESMAN NO. JJ Hospital-400003. Meerut Road. Nr. Nr.34% 10. 2361535  Rolex Tin and Metal Works.MP Agros 5 Global AgriSystem Pvt. Factory Area.0% 2. The actual cost of projects may deviate on change of any of the assumptions.63% 1.19 Assumptions Project & Financing Contingencies on Building Contingencies on Equipment Term Loan Rate of Interest on Term Loan Subsidy Considered Subject to ceiling Expected time of Installation Moratorium CAPACITY Rated Capacity Per Annum 80% of Installed capacity Number of Operational Days DAYS Working Hours Per day Hrs CAPACITY UTILIZATION Year I Year II Year III SALES PRICE W S Price OTHER EXPENSE Commission Marketing Expenses POWER Connected Load HP DEPRICIATION AS PER COMPANY’S ACT BUILDING PLANT & MACHINERY MISC. Nr.00% Months Months TPA Sources of technology  KS Engg. Tel No.

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