FEASIBILTY REPORT

FOR BAKERY ITEMS & PRODUCTS

Index

 PURPOSE OF DOCUMENT…………………………………………………………………………………………..……….04
 PROJECT COST SUMMARY…………………………………………………………………………………………………..05
 PROJECT ECONOMICS & FINANCING………………………………………………………………………………………………06
 PROJECT COST………………………………………………………………………………………………………………………………..07
 SPACE REQUIREMENTS………………………………………………………………………………………………………..08
 MACHINERY & EQUIPMENTS REQUIREMENT……………………………………………………………………….09
 FURNITURE & FIXTURES REQUIREMENTS……………………………………………………………………………..12
 OFFICE EQUIPMENT REQUIREMENTS……………………………………………………………………………………13
 HUMAN RESOURCE REQUIREMENTS…………………………………………………………………………………….14
 UTILITIES & OTHER COSTS…………………………………………………………………………………………………….15
 KEY ASSUMPTIONS (OPERATING COST)..............................................….....................................21
Index

 REVENUE(ASSUMPTED)……………………………………………………………………………….
 FINANCIAL ASSUMPTIONS……………….………………………………………………………….
 RAW MATERIAL ASSUMPTIONS……………….………………………………………………….
 CONSULTANT FEES…………………………….………………………………………………………..
PURPOSE OF DOCUMENT

 The objective of this “Feasibility Study Report” is to facilitate bakery business

entrepreneur in project identification for investment. The project feasibility report
may help in development of basis of an important investment decision and in order to
serve this objective.
 The document / study / report covers various aspects of project concepts
development, startup and production, marketing, finance and business management.
 The purpose of this document is to facilitate potential investors in Bakery items &
Products business by providing them with a general understanding of the business
with the intention of supporting potential investors in crucial investment decisions.
PROJECT COST SUMMARY

 A detailed financial model has been developed to analyze the commercial viability of
bakery items & products business. Various cost & revenue related assumptions along
with results of the analysis are outlined in this section.
Project Economics & Financing:

Description Details
Capital Investment PKR 14698050
Payback Period 09 - 12 Months (Approx.) on 66 % ROI
Net Present Value ( NPV ) PKR 14698050
Project Cost:

 Following fixed and working capital requirements have been identified for operations
of the proposed business:
Machinery & Equipment 2068750
Furniture & Fixture 3005000
Office Equipment 200000
Pre Operating Cost 3668500 + 2223000+ 1030000 = 3183000 = 6921500
Transportation Cost 106000
Total Capital Cost 10232500
Working Capital Cost
Raw Material Inventory 3865550
Upfront Building Rent including Utility Bills 300000
Cash 500000
Total Working Capital 41738550
Total Investment 14698050
Space Requirement:

Description Estimated Area (Sq.ft.) Rent /Development Cost

Production Unit 2000 sq.ft Company Owned
Outlet # 01 750 sq.ft PKR 15,000 ( Rent )
Outlet #02 750 sq.ft PKR 15,000 ( Rent )
QA&PD Lab & Microbiology 750 sq.ft PKR 1000000
Lab
( Development &
Equipment Installation )
1030000
Machinery & Equipment:
Machinery & Equipment:
Machinery & Equipment:
S.No Description No. of Item Cost per Item Original Value
01 Flour Sifter 01 380k 380k
02 Mixer Cakes & Creams 01 300k 300k
03 Oven ( 8x8ft) 02 150k 300k
04 Oven Trays 30 750 22500
05 Dyes 30 300 9000
06 Molding Pans 50 300 15000
07 Deep Freezers 02 80k 160k
08 Fryer & Burner 04 150k 600k
09 Sealing Machine 02 65k – 150k 300k
10 Moving Trollies 04 120k-150k 600k
11 UPS & Batteries 04 40k-50k 200k
12 Generators 01 100k 100k
13 Bain Marie 02 150000 300k
14 Ice Making Unit 01 300000 300k
15 Miscellaneous equipment tools 01 100000 100k
3668500
Furniture & Fixtures
Furniture & Fixtures

S.No Description No.of Item Cost per Item Original Value

01 Tables for Production 04 35000 140000
02 Chairs and Other Furniture 01 50000 50000
03 Renovation & Interior Designing 01 2500000 2500000
04 Air Conditioner 06 70000 420000
05 Cold Store 01 1000000 1000000
06 Weighing scales 03 15000 75000
07 Microwave Oven 02 15000 30000
08 Sign Board 02 25000 50000
09 Plastic Pallets 10 4000 40000
10 Miscellaneous 01 1000000 1000000
3005000
Office Equipment
Office Equipment

S.No # Description Quantity Unit Cost ( Rs) Total Cost ( Rs )

Computer with Servers 01 125000 125000
Billing Machine 02 15000 30000
Telephone Set 03 1500 4500
Office Stationary 01 - 20000
200000
Utility Expenses

Utility Description Estimated Expense Per Month

Electricity 150000
Natural Gas 75000
Water 25000
Diesel for Generator 50000
Grand Total Utility Expenses 300000
Human Resource
Description No. of Employees Monthly Salary Per Person Overall Salary Per Cadre Minimum Competency

Production Department

Factory Operations Manager 01 150000 150000

Production Manager 01 120000 120000

Production Officer 01 40000 40000

Production Shift Supervisor 03 25000 75000

Production Helper 06 18000 108000

Foremen Maintenance Workshop 01 40000 40000

Electrician & Plumber 02 30000 60000

Chiller ( Ice Maker) Operator 02 20000 40000

Electrical Helper 02 20000 40000

Maintenance Helper 02 20000 40000

Dispatch Incharge 02 20000 40000

Dispatch Helpers 06 18000 108000

Production Department Budget Requirement 861000

Human Resource
Description No. of Employees Monthly Salary Per Person Overall Salary Per Cadre Minimum Competency

Quality Assurance & Product Department

QA & PD Manager 01 120000 120000

Product Development Officer 01 40000 40000

Quality Assurance Officer 01 40000 40000

Microbiologist 01 50000 50000

QC Inspectors 06 20000 120000

Lab Assistants 02 18000 36000

Master Chef 02 50000 100000

484000
Human Resource
Description No. of Employees Monthly Salary Per Person Overall Salary Per Cadre Minimum Competency

Administration & Finance Department

Admin Manager 01 120000 120000

Admin & Finance Officer 01 40000 40000

Purchaser 01 40000 40000

Store Incharge 01 30000 30000

Store Helper 02 18000 36000

Mason 01 18000 18000

Gate Office Incharge 01 20000 20000

Sweeper / Janitor Staff 04 18000 72000

Security Guard 06 18000 108000

Driver 02 20000 40000

488000
Human Resource
Description No. of Employees Monthly Salary Per Person Overall Salary Per Cadre Minimum Competency

Sales & Marketing Department

Manager Sales & Marketing 01 150000 150000

Sales Officer 01 40000 40000

Marketing Officer 01 40000 40000

Salesmen 10 18000 180000

Data Entry Operators 04 20000 80000

490000
Raw Materials

Raw Material Unit Rate Per KG Estimated Monthly Consumption Cost per Month

Maida Kg 92.4 2000 kg 184800

Sugar Kg 110 1200 Kg 132000

Butter Kg 1000 1000 kg 1000000

Baking Powder Kg 300 25 kg 7500

Eggs Pcs 200 200 Dozen 480000

Flavor cocoa Liter 500 25 Liter 12500

Cream + Honey Kg 1000 500 Kg 50000

Baisan Kg 120 1200 Kg 120000

Dry Fruit Kg 220 25 Kg 5500

Channay Kg 220 100 Kg 22000

Nimko Masala Kg 500 500 Kg 250000

Khoya Kg 1000 1000 Kg 1000000

Ghee Kg 270 1000 Kg 270000

Oil Kg 160 1000 Kg 160000

Raw Materials

Raw Material Unit Rate Per KG Estimated Monthly Consumption Cost per Month

Yeast Kg 950 25 Kg 23750

Cheese Kg 750 50 Kg 37500

Mayonnaise Kg 900 50 Kg 45000

Flavor Butter & Cheese Liter 400 50 Kg 20000

Flavor Vanila Liter 400 50 Kg 20000

Food Colors Kg 500 50 KG 20000

3865550
Last Words….