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 |
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 2580
= 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
