Bread Manufacture

Production Capacity : 1440 tpa (36 lakh loaves of 400 g /annum)

Uploaded on : April 2009


Product and its Applications

Bread is an important ready-to-eat product which is becoming increasingly popular in hotels, restaurants, canteens and in households. The bread is a fast and convenience food based on wheat. There are many varieties e.g. whole flour bread, brown bread, milk based and fortified breads


Market Potential

India produces more than 80 million tonnes of wheat. Most of it is used for direct consumption in the form of chapati & bakery products.

The per capita consumption of bakery products in the country is about 2 kg per annum, against 50-100 kg bread alone in western countries. Consumption of bread is increasingly fast at estimated rate of 135% with a scope for further enhancement. The manufacture of bread in small towns and villages shall not only meet the local demand but generate employment opportunities in the vicinity.


Basis and Presumption

  • The unit proposes to work at least 300 days per annum on single shift basis.
  • The unit can achieve its full capacity utilization during the 2nd year of operation.
  • The wages for skilled workers is taken as per prevailing rates in this type of industry.
  • Interest rate for total capital investment is calculated @ 12% per annum.
  • The entrepreneur is expected to raise 20-25% of the capital as margin money.
  • The unit proposes to construct own building.
  • Costs of machinery and equipment are based on average prices enquired from machinery manufacturers.

Implementation schedule

Project implementation will take a period of 8 months. Break-up of the activities and relative time for each activity is shown below:

Scheme preparation and approval 01 month
SSI provisional registration 1-2 months
Sanction of financial supports etc 2-5 months
Installation of machinery and power connection 6-8 months
Trial run and production 01 month

Technical aspects


Location

The unit can be set up at any suitable place where there is substantial market demand. Availability of power and road connectivity is to be ensured. Keeping in view the short shelf life of the product, marketing network has to be planned carefully.


Process of Manufacture

Maida is the principle ingredient. It is sieved to 60 mesh size and converted into dough by mixing other components. The yeast solution is added and mixed well until dough is formed. The dough is allowed to ferment at a temperature of 27°C and 75% Relative Humidity. During this period, the volume of dough increases due to carbon dioxide gas released by the action of yeast. It is given knock-back and allowed a rest for a period of 15 minutes. The dough is weighed into 450 g pieces for obtaining a baked loaf of 400 g bread. It is rounded, moulded, panned and baked at 205°C for 25-30 minutes. The baked loaf is taken out of the pan, aerated and cooled for 60-90 min. It is sliced and wrapped.


Quality Control and Standards

As per BIS/PFA requirements


Pollution Control

There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board.

There is no major pollution problem associated with this industry except for disposal of waste which should be managed appropriately. The entrepreneurs are advised to take "No Objection Certificate" from the State Pollution Control Board.


Energy Conservation

The fuel for the steam generation in the boiler is coal or LDO depending upon the type of boiler. Proper care should be taken while utilising the fuel for the steam production. There should be no leakage of steam in the pipe lines and adequate insulation should be provided.


Production Capacity

Quantity 1440 tpa (12,000 loaves of 400 g/day)
Value 270 lakh
Installed capacity 6.5 tpd
Working days 300/annum, 3 shifts
Optimum capacity utilization 70%
Manpower 26
Motive Power 40 kW
Water 10 kL/day

Financial Aspects


Fixed Capital


Land & Building

Particulars

Amount (Rs. lakh)

Land 800 m 2 02.50
Built up area 500 m 2 22.00
Total cost of land and building 24.50

Machinery and Equipment

Description

Amount

Mixer with flour sifting arrangements, dough kneader, sun mica top dividing table, moulder, proofing cabinet, electric ovens, slicer, weighing scale, baking tins / trays, trolleys, lab equipment, wrapping machine, refrigerated cabinet, baby boiler 23.00
Erection & electrification of machinery & equipment @10% cost 02.30
Office furniture & fixtures 02.70
Total 28.00

Pre-operative Expenses

Consultancy fee, project report, deposits with electricity department etc 01.50

Total Fixed Capital Amount (Rs. lakh)

(9.1.1+9.1.2+9.1.3) 54.00

Recurring expenses per annum


Personnel

Designation

No.

Salary Per month

Amount

Factory Manager 1 10,000 1.20
Supervisory staff 3 06,000 2.16
Office Assistant 2 05,000 1.20
Technician 0 05,500 1.32
Skilled workers 6 03,500 2.52
Unskilled workers 12 03,000 4.32
      12.72
Perquisites @15 %     1.92
Total 26   14.64

Raw Material including packaging materials

Particulars

Qty (t)

Rate/t (Rs.)

Amount (Rs. lakh)

Maida 1120 13 145.60
Sugar 34 22 7.48
Salt 17 O8 1.36
Yeast 8.4 210 17.64
Chemicals LS LS 07.00
Packaging material LS LS 14.92
Total LS LS 194.00

Utilities

Particulars

Amount (Rs. lakh)

Power 05.60
Water 00.40
Coal 01.86
Total 06.86

Other Contingent Expenses

Particulars

Amount(Rs. lakh)

Repairs and maintenance@10% 02.80
Consumables, spares Transport & travel Publicity Postage & tationary Telephone 02.70
Insurance @1% 00.50
Total 06.00

Total Recurring Expenditure

(9.2.1+9.2.2+9.2.3+9.2.4) 221.50 (Rs. lakh)

Working Capital

Recurring expenses for one month(Ref. 9.2.5) 18.45 (Rs. lakh)

Total Capital Investment

Fixed capital (Refer 9.1.4) 54.00
Working capital (Refer 9.3) 18.45
Total 72.45

Financial Analysis

Cost of Production (per annum)

Amount (Rs. lakh)

Recurring expenses (Refer 9.2.5) 221.50
Depreciation on building @5% 001.50
Depreciation on machinery @10% 002.53
Depreciation on furniture @20% 009.70
Total 235.80

Sale Proceeds (Turnover) per year


Item

Qty

Rate (Rs.)

Amount (Rs.lakh)

Bread loaves of 400 g 36 lakh 7.50 270.00

Net Profit per year

   

= Sales – Cost of production
= 270.00 - 235.8
= Rs. 34.20 lakh


Net Profit Ratio

   

Net profit X 100
---------------------

Sales


34.20 X 100
---------------

270

= 12.7 %


Rate of Return on Investment

   

Net profit X 100
------------------------

Capital Investment


34.20 X 100
-----------------

72.45

= 47.2 %


Annual Fixed Cost

 

Amount (Rs. lakh)

All depreciation 04.60
Interest 09.70
40% of salary, wages, utility, contingency 11.00
Insurance 00.50
Total 25.80


Break even Point

   

Annual Fixed Cost X 100
---------------------------------

Annual Fixed Cost + Profit

25.80 X 100
------------------
25.80+ 34.20

2580
--------
60


= 43 %


Addresses of Machinery and Equipment Suppliers

  • Auto Bisk Plant Co.
    East Cross Road No. 32, Ashoka Road
    Mysore – 570 001
  • Electrotherm Furnaces Pvt. Ltd.
    32-B, II Phase, Peenya Industrial Area, Dasarahalli P.O.
    Bangalore – 560 058
  • Associated Furnace Manufacturing Co.,
    R.Munivenkatappa Building
    Kammagondanahalli, Opp. HMT Industrial Estate
    Bangalore – 560 015
  • Edward and Sons
    Ambedkar Nagar, Deevarjeevanhalli
    Bangalore – 560 045
  • Mangal Engineering Works,
    Factory Area, Patiala – 147 001
  • Sembhi Engineers
    4-5, New Colony, Opp. KMV College
    Jalandhar – 144 004
  • Ghaziabad Printing and Packing Industry Pvt. Ltd.
    Opp. Ganesh Tent House, Near DPS, Meerut Road
    Ghaziabad (U.P.)
  • Aroras Box and Cartons Pvt. Ltd.
    39th K.M., Delhi-Jaipur Road , (N.H. No. 8)
    Gurgaon – 122 001 (Haryana)
  • Jain Packaging Products
    33, Sarai Pipal Thala, Behind Mangat Ram,
    Dal Mill, Subzi Mandi, Azadpur,
    Delhi – 110 033
  • United Packaging
    19/21, Shakti Nagar
    Delhi – 110 007
  • Rajat Electronics
    1309, A-5, First Floor, Pan Mandi, Sadar Bazar
    Delhi – 110 006
  • R.D.Singal and Co.
    A-81/2, Wazirpur Industrial Area,
    Delhi – 110 052
  • Ambica Packers and Printers
    2687, Kinari Bazar, Dariba Kalan
    Delhi – 110 006
  • Baker and Co.(P) Ltd.
    Oomrigal Building , Opp. Crawford Market
    Mumbai – 400008
  • Nagpal Brothers (Regd)
    C-127, Phase-II, Mayapuri Industrial Area
    New Delhi – 110 064
  • J.SC. Dass and Bros.
    33/8, Anath Nath Dev Lane ,
    Kolkata- 700037
  • Ever Fresh Product
    Ram Bagh
    Indore (M.P.)
  • Bijoy Engineers
    Mini Industries, Arimpur,
    Trichur- 680611 (Kerala)
  • Baker Enterprise ,
    23, Behra Engg Lane , Near Peeragarhi
    Delhi – 110 041
  • Flora Engg. Corp.
    28-A, Phoolbag, Rampura
    New Delhi – 110 035
  • Jyothi Industries.
    31, Pampa Mahakavi Road
    Bangalore – 560 004
  • Raylons Metal Works
    Kondivita Lane
    Andheri, Mumbai
  • Shanti Engineering Works
    Figure of 8 Road
    Coonoor – 643 101
  • SIDVIN
    78, 5th Main , Saraswathipuram
    Mysore – 570 009
  • M/s S.S.P. (P) Ltd.
    13, Milestone, Mathura Road ,
    Faridabad- 121003
    Email: sspgroup@del2.vsnl.net.in
  • M/s Marvel Machines Pvt Ltd.
    140, Anna Salai, Saidpet
    Chennai - 600015
    Email: marvel12@vsnl.com
  • M/s Azad Engineering Company
    C-83, B.S. Road , Indl Area,
    Ghazibad -201009
    Email: azadeng@satyam.net.in / azadenggco@hotmail.com
  • M/s Sanjivan Industries
    A -13, Karimsheth Indl. Estate,
    Wagdevi Nagar, Near Valishali Nagar
    Dahisar (E), Mumbai -400068
    Email: sanjivanind@roltanet.com
  • M/s Pharamalab India Pvt. Ltd.
    Star Metal Compound,
    LBS Marg, Vikroli (W)
    Mumbai -400083
    Email: mkt@pharmalab.com
  • M/s Larsen & Toubro Ltd.
    L &T House, Ballard Estate,
    Mumbai -400001
    Web: www.larsontoubro.com
  • M/s Shiv Engineers
    Patel Avenue , Plot No. 165,
    Flat No.1, Right Bhusari Colony,
    Paud Road , Pune -411038
    Email: shivenginerrs@rediffmail.com
  • M/s Bombay Industrial Engineers
    13, Crystal Apartments,
    Gulmohar Cross Road ,
    11, JVPD
    Mumbai -400049
    Email: ijsehgal@bom5.vsnl.net.in

Other Special Features

A careful selection of product mix is necessary based on the local market demand and availability of raw materials. The facilities can also be utilised to manufacture breads of different recipes, buns, cakes for fuller utilisation of capacity.


Contact for more information

Information Manager
TIMEIS Project
E-mail: timeis@ficci.com