Bakery Project Report



Manufacturing Bakery products is a good business opportunity. You need to study the project report on bakery to start this business unit on a small or large scale. The bakery business plan can be the same for you except for the amount of finance and setup you wish to install. Bakery products have high demand in the market and are consumed in every household. Since the population is rising every day, the influence of foreign culture and females working in Indian society have fluctuated the eating habits of Indians.

It has made bakery products popular and has given rise to the bakery business in the country. Bakeries these days are indulged in making healthy bakery products that are liked by consumers and they consume them repeatedly. The Indian bakery industry produces the products that are processed. Bakery products can be manufactured from bread, cookies and biscuits to pizza base, kulchas etc. 82% of the bakery items are consumed in the form of bread, biscuits and other items that are affordable by all income groups.

Indian bakery segment can be categorized as biscuits, bread and cakes. Bakery in India produces 1.3 million tons of bakery products and among which 3 million are from small-scale bakery businesses in India. You can now get automatic and semi-automatic bread and biscuits being manufactured in a gist of time.

  • People in India prefer fresh bakery products so you need not keep the stock ready in the beginning days and growth of the business you can get an idea of how much of your items are sold in a regular daily basis and thus you can initially keep less stock ready and satisfy the customers with fresh bakery items.

Bakery Project Report

In India the popular bakery biscuits are the glucose biscuits, marie choice and cream biscuits. The share of big companies is major in biscuits sector but when you are opening a bakery in your own town and city you enjoy multi opportunities. You can initially promote your business and enjoy good returns in the near future. You can start free home deliveries to get people less bothered with coming to carry their items. You can start rusk biscuit business simultaneously as rusk is the main product sold in abundance in a bakery. Online selling of bakery products is another major attraction for both small- and large-scale new bakeries. Thus, you can invest in this business and earn high income. If you wish to avail bank loan or set up a bakery in your town you need investment or complete bakery business plan that can make your task of establishing a good bakery in your town. Our project report on bakery can assist you with every important detail you should know. 

What are the types of bakery business to start in India?

Before you start a bakery business in India, you need to first select the type of business you have to start. You can start either a retail bakery or a wholesale. You need to be specific about the type of bakery before starting your business. To decide this is crucial as it is going to influence how you would engage in your business and how much money you would require investing. 

Retail Bakery

Customers mostly buy bakery items from retailers. You can make them in different sizes and shapes. You need to have atleast 1 employee to manage your cash register and guide customers. You can start jeera biscuit business also in the same bakery as this product has huge market demand. 

Wholesale Bakeries

A wholesale bakery bakes goods and sells them directly to suppliers or to retail hubs like coffee parlors, or super markets. When you start a wholesale bakery, you can get many creative options to manufacture and sell them in attractive packaging.

Type of Bakery Service

As you know now which type of bakery you are going to open, so you have to decide about the services you would offer in your bakery.

Here are some ideas.

Bakery Cafe

A bakery café is a room known as sit down bakery that contains dining space where your customers can relax and enjoy some food.

Food Truck Bakery

If you want to meet the requirements of your customers, you can start mobile eatery as bakery food truck and serve your clients.

Home Bakery

If you don’t have much funds, then you have an option to become a home baker and start a home bakery. It is ideal to start baking from home. You can just buy some ideal tools, arrange space and get the license. If you can initiate bread making business as a home baker, you can set up a separate unit by accumulating profits in this niche. 

Counter Service Bakery

A counter service is somehow similar to a bakery café. It is like a small store from where customers can go and buy items of their needs.

Specialty Bakery

A specialized bakery is a way to produce one or few types of bakery items and sell them to wholesalers or retailers. You need to focus on single or very few product types and become best in that.

Bakery Business Market Potential

The bakery shop sells cakes, biscuits, pastries, bread, sandwiches, burgers, soups, namkeens etc. Food processing industries contribute significantly to India’s industrial development. The bakery industry is also a part of the food processing industry. This industry also contributes significantly to the development of the country. There are many types of bakery industries in the country, big and small. This industry has been particularly contributing to the supply of food products in India.


It is necessary to have a bakery shop in major parts of all cities and villages. Bakery products have become part of the daily routine today. Therefore, good markets are available to open bakery products shops. Its season and demand remain throughout the year.


Along with the bakery business, you can get more profit by starting the business of manufacturing bread and snacks.

Demand For Bakery in India

Today, there is a race to adopt Western civilization in India. However there is a good demand for bakery products in India. The demand for these products is constantly increasing. Today’s new young generation has a great interest in it.

Bakery products cost very little. Poor people can buy these products easily. However, demand for these products remains in all categories of poor and rich. Consuming bakery products has also become a fashion in the modern era. Bakery products are well-liked by the boys and girls of the school college. These products are easily available.]

Also Read Our Article on Emerging Sectors in Gujarat: A Business Opportunity Overview.  

How to open a bakery in India?

You need to follow the listed steps to open a bakery in India.

Create a bakery business plan

Before you learn how to start a bakery business in India, you need to write a business plan that will help you streamline your plan. You will be able to decide the budget you are ready to invest, how much you have in hand and how much you need to arrange. Then you need to plan about the future development of your bakery and include the following items in your business plan.

Summary of Bakery Business Plan

Summary of bakery business plan will work to give you an overview of your bakery. This will include your mission, a review of your bakery structure and ownership detail.

Business Overview

Business overview of your bakery will include the type of service you will include in your bakery. It can contain the layout of your bakery, service you have to provide, sample of menu, and management team details.

Industrial Analysis

Industrial Analysis is crucial as this will help you to identify the competition in your city and get you an idea of target audience, and help you select the right location for your bakery.

SWOT Analysis

The SWOT analysis of your bakery will help you identify your strengths, weakness, opportunity and threats. You can plan your business keeping in mind the SWOT analysis. Your strength for this business is that you can manufacture multiple items for sale. For instance, kids love to eat cookies so you can start cookies biscuit business also under the same roof.

You need to include:

Operations plan

Operation plan for your bakery includes the detail of how your bakery will function, like order taking, menu, service, raw material arrangement, staff management etc. 

Financial Analysis

Financial Analysis of the bakery business must include the cash flow statement, operating cost, fixed and recurring costs etc. This can help you get financial viability for your bakery business.

Marketing Plan

You need to include a marketing plan for your bakery business. The marketing plan will help you grab more customers for this business.

Choose the location for your business

To start a bakery business requires a suitable location that can be a shop in a reputed bakery, or high end shopping area with high footfall. Front area shops that are visible clearly is the best space for your bakery. You need to have a space of 500 square feet atleast two floors. One can work as functional kitchen and the other can work as a display area. You can arrange space on rent in the beginning.

Once you finalize your location, you need to be sure that your space has good supply of water and electricity. You need to arrange a legal agreement of the property you are using. You must obtain NOC certificate from the owner of the property that says he has no problem with the business you are starting in his property.

Obtain All necessary Licenses

Bakery business requires main 5 licenses to start. FSSAI license, Local Municipality license, Police Eating House License, Fire License and GST. The most important among these are FSSAI, GST and local municipality trade license.

You need to get these licenses before starting the bakery only so that you can start your business  without any hassle.

Food License can be obtained by applying online. You need to spend approximately Rs 5,000 to do all the paper work and license fee for this license. You can pay a five year renewal fee that is around Rs 15,000 in beginning only.

GST Registration

You can get GST Registration done by a chartered accountant.

Health License

You can obtain health license from the local municipality and start your business. You need to spend Rs 3000 to obtain this license.

Fire License

You can get fire license also from the local municipal corporation with the payment of Rs 1,000 to 2,000. You can get this license once you install fire extinguishers in your shop.

Hiring Manpower

You would definitely require a team to work with you. You should hire expert workforce to work for you. You need a head chef, service boys, helpers and a cashier. You need to hire a team of 15 members and assign duties as per their caliber.

Buy Equipments for bakery

The major equipments that you need to buy for your bakery are oven, cooling fridge, deep fridge, working table, storage utensils, planetary mixers etc. You can buy new equipments to maintain efficiency in your work. You can buy second hand working table to reduce some cost.

Designing of your display area

The display area of your bakery needs to be well designed so that every item is properly displayed and grabs the attention of the customers. You can keep display fridge to show cakes and pastries.

Your display area should have good storage to display the racks you keep for displaying your stock.

Install a POS and Billing Software in the Bakery

The POS software is just not the billing software but is now equipped with features like stock management. This software now is used in every bakery to manage the shelf life of your baked items and helps you deal with your perishable goods.

Raw Material For Bakery Business

Raw materials include flour, maida, yeast, sugar, ghee, milk powder, salt, food coloring. All materials are easily available in every region of India.

Its demand in the Indian market is quite good. Essential raw materials are also readily available. Demand for these products remains in all states of the country. Therefore, doing a bakery business is a good plan.

License Required for Bakery Business in India

Every business that relates to eating needs to aquire a few licences and agreements from the government. If you are going to start a bakery be it on small or large scale there are some legal formalities that you need to do. It is henceforth compulsory for the bakery to get licensed from FSSAI, Police Eating House, GST, Fire Department, Local Municipality, and state pollution control board. The most prior among the government approvals that I have mentioned are from FSSAI, GST and Local Municipal health permit.

How to grow a bakery business?

In order to grow your business in India we suggest you to do the best Marketing and Branding of your Bakery.

Marketing and Branding of your business will make your business successful. You can get your logo designed that can help you establish your brand. This can help to establish your identity in the market and you can exhibit your well designed menu too.

You can get around 30,000 pamphlets published initially and promote your business. It will cost you around Rs 30,000 only. You can also invest money in an attractive display board to attract customers that will cost you around Rs 20,000. You need to keep a good budget for restaurant management software because you will definitely attract customers in your eating space.

Staff Uniform

To decide uniform for your staff is optional. If you choose to decide the uniform for your staff, you will deliver professional look to your customers. This will help to make your staff members look presentable. Well dressed and hygienic. You can choose dress like t-shirt and pant of same colour, chef coats or aprons.

Partner with online food aggregators

These days there is good demand for online food. Since you are opening a new bakery, so you can register your business with online food aggregators and show your online presence. You must create an online ordering website also where you can exhibit you accept orders through your website as well. You can generate good number of orders for your bakery.

Bakery Set Up Cost

The entire set up cost of your bakery is around Rs 15 lakh. The cost of space and equipment can bring some difference in the set up cost of your bakery.

Equipments needed to start a Bakery

Along with buying the raw material for your bakery, you need to buy necessary equipment to make goods ready for sale. Here is the list of equipments that you need to buy for your bakery.

  • Oven
  • Microwave  
  • Deep Freeze 
  • Milk Pots 
  • Weighing scale
  • Planetary Mixers
  • Mixing Bowls
  • Baking Trays 
  • Working table
  • Gas Cylinders
  • Utensils

Manpower Requirement for Bakery

Manpower is another significant arrangement that you cannot skip while starting your bakery. The hiring of manpower depends on the scale of your bakery. If you are opening a small scale bakery then you need to hire 2 to 4 people initially. They must have basic bakery knowledge. You need to hire 6 to 10 people for medium scale bakery and around 15 members for large scale bakery in the beginning.

Set Up Cost of Bakery and Investment

Now since you know about the essential space, raw materials, equipments, manpower etc. Let’s have a glance at the investment amount you need to spend to start your bakery. Here is an investment estimation for a small, medium and large scale bakery in India.

  • Small Scale Bakery will require an investment of Rs 1 to 3 lakh.
  • Medium Scale bakery requires and investment of Rs 5 to 8 lakh.
  • A large scale bakery will cost an investment of Rs 8 to 15 lakh in India.

Profit Margin from A Bakery in India

Once you know the investment cost for starting a bakery, you might become curious to know about the returns you can get in the form of profits.

Profit is important so that you can run your business on a consistent basis. You need to do frequent marketing of your business and expand your business. The average profit that you can make in a small-scale bakery is Rs 60,000 to Rs 1.2 lakh. The profit made from this business would depend on the items you are manufacturing and selling in your bakery.

If you are dealing in multiple bakery items, you can make around Rs 2 lakh in your bakery by running a small-scale business only.

Target Customers for Bakery Business

Local Shops

There is no better place to sell your bakery items than a local shop. Local shops would love to join hands with you and increase your sales if you give them a boost.


Retailers have more variety of products in their stores. Bakery items are a fast-moving product that they can keep and sell in their stores. Thus, they can also tie with your business and enhance your sales.

Super Markets

A large variety of products with large stock is a supermarket. It is difficult to connect with them as your target audience but once you associate, you will get bulk orders for your bakery items from them.

Online Retail Stores

There are so many retail stores online. You can set up your account and display your products online. It will increase your sales.

Sweet Shops

Apart from supermarkets, you can target sweet shops as they are near your area and can surely sell bakery items in bulk to their customers.

Cafes and Tea Stalls

Bakery items are the most required at tea stalls as people enjoy them with a cup of tea. You can henceforth reach out to cafes and tea stalls to sell your stuff and increase your sales.

How Much Does It Cost to Start a Bakery in India? 

If you are planning to start a bakery business in a commercial area, you need to have an estimate of the cost.


Depending on the size of your bakery, you need to pay rent if the space is rented one. The rent can vary from location to location as in you can consider Rs 25,000 to Rs 40,000 as rent of the building in India.

The space you need to open your bakery café can cost rent of around Rs 70,000 to 1 lakh rupee.


The total cost that you need to obtain license may come upto Rs 30,000.


Decent staff would ask for decent salary also. For a small scale bakery you need minimum of 4 people who would range a salary upto Rs 1,20,000.

Billing and POS System

POS billing system is essential in your bakery. It would cost you around Rs 25,000 to Rs 50,000.

Cost of Marketing

Marketing is an activity. You need to spend around Rs 40,000 to Rs 60,000 per both on offline and online marketing of your bakery.

How to run a successful bakery business?

In order to run a successful bakery business you need to market it nicely so that you can establish brand reputation in the Indian market. Use our tips to do so.

Use Print Media

If you want to get popularity at domestic level, you must have a good grip in the local market. Therefore spreading a word about your business is important. Publishing ads in the print media can help you in this start up.

Temporary stall in the Malls

When you plan to promote your bakery brand, you can give out free samples of your delicious biscuits to create more customers who visit malls and super markets in your city. You can also set up temporary stalls in famous locations of your city.

Join Retailers

You can club with retailers by joining hands with them. Bakery items like cakes and pasteries are liked by every age group. Maybe your outlet is far and customers may not reach you. In this case if you sell your stock to the retailers, it will boost your market and give you better revenue. Initially you can share profits, or begin an agreement with them.

Traditional audio Visual Media

Local TV Channels and FM Stations play a major role in promotion via vehicles. Catchy and interesting videos will bring huge impact on your customer mindset.

Social Media and Online Publicity

You can create your profile on social media handles like facebook, instagram etc and promote your products online. You can also record and edit the promotional videos and upload them on social media platforms or through a website. Your one post can reach a wide audience and increase your customers in a short span of time.

Special Offers

Initially you need to make strategies that can help you get new clients. You can design special offers or discounts so that you can grab attention from your target audience. This technique of promotion will increase your sales and it also depends on the potential of your biscuits.

Café and Restaurant Owners

You can also sell your bakery items at cafes and restaurants as all sections of people visit them. They can enjoy your biscuits and dry cakes with tea or coffee. Therefore, the demand for your bakery items will increase.

Around Schools or Colleges

You can sell your cakes and pastries, cream rolls etc in front of schools and biscuits. A pack of biscuits will be perfect if students after school or college are hungry. Thus you can grab their attention.

What is the impact of bakery items on Health?

Food has a wide impact on health, so it is necessary to take care of prescribed standards. Also, it is necessary to mark the expiry date on all the material. As a seller you must not sell stale bakery items to the customers. First thing is that they won’t buy it because stale bakery stinks. Secondly if any customer gets it without checking won’t return to your shop again. Bakery items make you fat as they have whole purpose flour in it. You should not consume it daily.

Bakery Business Plan

A clear small bakery project report is crucial for your success as an entrepreneur. You wish to contemplate some important, like your initial costs, your target market, and how long it’ll see you interrupt even. Draft a proper Bakery Shop project report that describes your expected income, product and repair lines, expansion plans, and other details of your business. A well-drafted small bakery project report will facilitate you in applying for any bank loan.

Bakery Business Sample Project Report Format

In our detailed bakery project report format, we have covered every important detail that you must explore before you invest in the bakery business in India. You will get the data bakery business model in PDF which you can use easily.

Contents Of detailed Project Report for bakery unit
Sr. No.Contents
1Project at Glance
3Objective, Promoters Management & Background
4Market Demand Potential
5Location of Project
6Business Process
7Means of Finance
9Revenue Model
10Mfg. Process Chart
11Planning for Human Resources
12Expenses Details
13Fixed Assets Details
14Plant & Machinery Details
15Debt – Service Coverage Ratio
16Projected Profitability Statement
17Projected Balance Sheet
18Projected Cash Flow Statement
19Statement of Depreciation
20Term Loan Repayment Schedule
21Ratio Analysis
22Break – Even Analysis
For whom is baking business plan useful?

1) CA Chartered Accountants 

2) Tax Consultants

3) Small Business Owners

4) Students

In addition to those who want to prepare project reports themselves.

How To Download Bakery Project Report PDF for bank loan?

While you wish to start a new bakery business, you will definitely need bakery business plan that will guide about everything you would like to have in your new venture. Thus, you can immediately download the free bakery project report pdf or word file. 


The data that we have presented in our bakery business plan is well researched by our professionals and thus is accurate. You can consider it as a blueprint and create your own free bakery project report pdf for bakery business in India. 

Gone are the days waiting at the door of the expert. You can simply download Bakery sample project report in hand, instantly in pdf format.

First Step            –   Click add to basket  >>  Check Out  >>  Payment

Second Step       –  Immediately after successful payment, you will get a link to download the report. You can download the report immediately from this link.

How can I start bakery business from home in India?

It is not really hard to manufacture bakery items from home. You just need to know some tactics and skills to prepare them. Simple formula is that you need to mix things in a right proportion. When the ingredients are mixed half of the task is done. A soft dough is kneaded and it should be glossy and smooth.

For Khari, The dough needs to be rolled in the shape depending on the stuff you are preparing. Proper dimension and thickness is taken care of. Later ghee is applied on layers and the stuff is given folds as required. The process repeats till all the layers are formed.

The shapes may be refrigerated as per the recipe. Later it is taken out from the refrigerator and cut according to the shape it needs. You will then bake it at a prescribed degree celcius. The ready pieces are cooled and packed in containers or packets for dispatch.

Manufacturing rusk in Bakery

It is prepared by pre mixing the ingredients as per recipe and a dough is prepared. The desired consistency should be kept in mind. It is then divided and cut into pieces. The pieces are put into moulds for proofing and then baking is done. After this cooling process starts and then again it is baked. First it is baked at 200 degree celcius and then at 180 degree.

Atta Biscuits In Bakery Near me

All the ingredients are weight as per requirement and then a soft dough is made using ghee, sugar and water. You need to beat the dough and make it soft and fluffy. Later yogurt does its work and makes it best for Atta Biscuits. Keep it on rest for 10 to 15 minutes. Again the dough is set and flattened round. Now you are to make incision with the help of a knife. Additional nuts can be sprinkled. Later the biscuits are baked at 200 degree Celsius for 20 minutes approximately.

How do you succeed in bakery business? 

You can succeed in your bakery business if you do the timely assessment of your bakery items. 

Technical Assessment Of Bakery Items

The raw material for a bakery business is wheat and it is readily available. So technically you get the main ingredient nearby.

The equipment or machine that you are going to use in your bakery are not that costly if I compare to other business in India. You will be able to easily afford them.

The machines which you can buy are semi or fully automatic. The machines will make your work easy. The manufacturers who sell you the machinery also provide free installation too. It makes your installation task easy and cost effective.

You will require large storage area like godown for storing your raw material and finished products.

You can even start a bakery from home. Thus it is a cheap business idea for business in India.

Socio-Economic Assessment

You can generate extra income from your bakery unit. It will help you to upgrade your socio economic status.

You can generate employment opportunities for the youth of the village nearby you. Like salesman, manager and sales operator. If you get the right work force, the real talent of village women being an excellent entrepreneur.

If your team and entrepreneurial skills are good you can convert idle resources to useful ones.

Market Assessment Of Bakery Business In India

People consume daily eating bakery items like rusk and biscuits. Thus every bakery has a scope of selling them abundantly if the quality is fine.

The people of many states in India eat ghee products so they love bakery items that are made with ghee. It has a good market potential for you.

Mall culture is in trend. Thus bakery items can be sold in malls at some shops. You can capture these shops also.

SWOT Analysis

Strengths Of Bakery Business

In India wheat is grown abundantly. Thus you can store a good amount of wheat for producing bakery items.

The labour and work team is easily available for this business. In metropolitan cities you can get qualified staff for baking. This will relieve your stress.

You need not require much capital to invest in this business. It is a strength that less capital investment will bring your instant profits.

Weaknesses Of Bakery Business

The items you will manufacture are perishable and can become stale in a short span of time.

The price of bakery items may fluctuate as per the competition in the market.

You might face scarcity of skilled labour that may affect your production.


Since the business doesn’t have much investment so there may be many entrepreneurs in bakery business that will increase competition for you.

Assessment Of Risk in Bakery Business

  • Since bakery products do not stay fresh for much time therefore there may be wastage of raw material and finished goods in this business.
  • Proper study of consumer behavior should be done before starting this business. Then only you should decide to manufacture bakery items.
  • The shelf value of bakery items is less so you should keep a check on advertisement of your items for constant sale.
  • Since the business is to produce perishable products and sale is not certain. Thus banking institutes do not easily provide financial help to bakery business in India.
  • The financing industry looks for detailed project report for bakery unit deeply and then decides to grant loan or not.
  • You should package your items in an attractive manner so that the customers get attracted and buy your items.
  • You need to have proper certification of your shop. The bakery business should follow food standards for sure.

Waste Disposal in Bakery

Waste disposal should be on daily basis and properly. The waste spreads fungus in the bakery. Thus timely removal of fondant, burnt parts and unused dough is recommended.

Frequently asked questions on Bakery Project Report

Can I get bakery project report pdf for bank loan?

I am glad you landed here. Well, you will surely like our bakery project report for small or big business. It is avaialable to download. It will help you to write your project report for bakery and submit in the bank for loan.

Can I download bakery report and use it for bank loan under pmegp mudra and other government scheme?

Ofcourse you can get the bakery business model from our website. It is just a blueprint that can help you to write one. You can refer to our project report and create your own according to your specification and submit in the bank for loan.

Can I download bakery project report in the format of excel or word file?

You can surely get the bakery business model for download in pdf format and later when you want to change it in word or excel file, you can easily do it with free file converting tools on google.


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