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Bread Manufacturing Project
Bread Manufacturing Project Report. Bread is an affordable and convenient food that is in high demand by mostly people. The Bread making business is bakeries that specialized in making and selling of breads. If anybody wants to start a business with low capital investment then the bread manufacturing business is a good option and here detail guidelines for this business. It is a small scale project and not required a huge licensing process.
In the modern world, bread is in more demand and becoming necessary food in the human diet as it is ready to eat food products and higher nutritive value. It is counted as a most edible wheat based product. Bread manufacturing is a low margin high volume based food product in bakeries.
In different zones of India, the per capita consumption of bread is 1.5kg to 1.75kg. Around 1800 small scale bread manufacturers present in our country, apart from this 2 large scale and 25 medium scale manufacturers present which continue production based on their production capacity. Basic raw materials required in bread manufacturing are wheat flour, yeast, sugar, salt, water and shortening agent. All the basic things like machinery and technology required to start a manufacturing business are available in India.
Plan Your Business
A clear plan is required to set up your business. This helps to find out basic requirements and helps to understand gaps. Preferably a business plan includes the following things:
- Summary of the business plan – The summary act like an overview of the business plan and consists of a mission statement, a review of legal structure and ownership and a brief history of bread manufacturing if it is an existing bread manufacturing unit.
- Business Overview –this means to talk about the concept of your bread manufacturing business. This includes the layout of your bread manufacturing unit and details of the management team.
- Industry Analysis –Industry analysis is a very important step when you start any business, as this will help you to find out the competition in your business, find out the target audience and help to choose the right location for your bread manufacturing unit.
- SWOT Analysis – The SWOT Analysis helps in identifying the Strengths, Weaknesses, Opportunity, and Threats linked with your bread manufacturing business.
- Operations Plan – The Operations Plan of your bread manufacturing business should include the details about how your manufacturing unit will function, like service, staff management, raw material procurement, etc.
- Financial Analysis – The Financial Analysis includes the cash flow statement, the operating costs, the fixed and the recurring expenses, etc. This helps to understand the financial concept of your bread manufacturing business.
- Marketing Plan – Also includes a marketing plan in your bread manufacturing as this explain how you attract customers and promote your bread manufacturing business plan as well.
Choose A Location For Your Bread Manufacturing Business
The second step is to choose a good location when you start a bread manufacturing business in India which has good connectivity. It is generally runs from your home or commercial kitchen required. If you want to start production from some large area then you need a certificate of occupancy (CO).
This law confirms that your area is having all building codes, zoning laws and government regulations met. If you plan to take the unit on rent then it’s the landlord responsibility to get that certificate. Before taking the area on the lease, confirm that you got a certificate from your landlord. On the other side, if you purchase the area and start the production unit then you need to get that certificate from the local authority of your area. Review all building codes and zoning requirements to ensure your production area is in compliance and you will get a certificate of occupancy.
Get All Licenses Required To Open A Bread Manufacturing Business
Regardless of the size of the company, you require registration. You should start the company as a proprietorship if it is a small-scale industry. However, you need to decide the form of business organization based on the investment pattern.
Bread manufacturing unit required the following licences before starting production: FSSAI license, GST Registration, Local Municipal Corporation Health License, Police Eating House license, and the Fire License.
- Food License:To get this licence, you can apply online, through FSSAI website (fssai.gov.in). These days different agencies are also available which charge around Rs 5,000 for the complete paperwork and licence fee and you get your licence. The cost for five years FSSAI licence is Rs 15, 000 and it is advised to get five year licence rather than getting a renewal every year just to avoid renewal fees.
- GST Registration:Today when you start with any business GST is a must and it can be done with the help of a Charted Accountant.
- Health License:This licence is available from Municipal Corporation by giving a health licence fee with the help of a local Municipal Health inspector and it cost around Rs 3,000.
- Fire License:For a fire licence, first of all, install a fire extinguisher cylinder in your complete production unit and wherever it is required and get the licence by providing a fee of Rs 1,000-2,000.
- You may consider applying for online Udyam registration for MSME.
Get Manpower Required To Open A Bread Manufacturing Business
Manpower is a very important and essential part of any business start-up. Without manpower, you cannot start and for production purpose, experienced person is required who understand the recipe and execute. For a small unit chefs, helpers, service boys and a cashier at least the minimum required. The total manpower required on the size of your business unit and salary of every person depends on their experience.
Equipment Required To Start A Bread Manufacturing Business
In the bread manufacturing business, each equipment is required of stainless steel only with food grade certificate whether you start on a large scale or small scale. This is the mandatory requirement of any food operating business. These are the following equipment required during production:
- Weighing scale
- Baking trays
- Bread mould
- Proving cabinets
- Retarder prover
- Dough mixers
- Dough dividers
- Dough scorers
- Dough scrapers
- Stainless steel tabletop
- Bench brush
- Spray bottle
Types of Bread Manufacturing Formulation
There are so many different types of formulations developed and they are developed in different regions based on the 7 traditional food habits of the people. The main types of bread are
- Pan Bread which is popular in the economical stringer countries like USA, UK, Canada and European Nations.
- Hearth or Sour Bread which is popular in France and this type of bread is produced with or without lactic acid fermentation. Hearth bread are baked in an open-hearth.
- Flatbread or roti/ chapatti which is popular in Asian countries and produced without fermentation on a flat hot pan by the baking process.
- Rolls and other small fermented bread contain higher levels of sugar and fat in the formulation and have a sweeter taste and soft bite characteristics.
Bread making process involved 10 steps as follows:
Step 1: Ingredients collection means collecting all ingredients in one place and weigh as per recipe and make sure the ingredients are at the required temperature. Weigh ingredients using digital weighing balance for exact amount follow and now start sifting the flour to remove any impurities.
Step 2: Mixing of the Ingredients means collecting and mixing in the right way to make a dough. There are many ways in which bread can be mixed or kneaded like the straight dough method, the ferment or sponge method and the Salt delayed method. By using one of these methods dough is prepared and goes to the next step.
Step 3 : Proving which means dough rises to its double in size. In this process, ingredient yeast breaks down into alcohol and carbon dioxide. Released gases help the dough to ferment and distribute uniformly. The ideal temperature for proving is 32°C. Proving is done in three stages. The first one is done after kneading called first proving; the second one is done after “knockback” called intermediate proving and final proving is done after shaping the bread called final proving.
Step 4 : KnockBack which means punching of the dough to remove air bubbles developed during intermediate proving and this helps to evenly distribution of all ingredients through the dough. The knock back step is also done to equalize the temperature in the dough.
Step 5: Dividing and scaling
Which means dividing the dough into pieces of the required weight. The scaling of the bread depends upon the size of the mould in which the bread is going to be baked.
Step 6: Shaping/ Panning which means the dough is scaled and then shaped. Firstly dough rest for some time and then allow for shaping without pressure. This is called panning which means to shape the bread and put it in a pan.
Step 7: Final Proving which is done using equipment known as proving cabinet or proving chamber. These chambers have the temperature of 30°C maintained and a 90% humidity level which is ideal for yeast fermentation.
Step 8 : Scoring is the process in which give marks on top of the dough using a sharp blade or knife which helps to expand the bread during baking without cracking.
Step No. 9: Baking means the bread is ready for final baking which is done in three stages using the oven and during this step dough passes through different temperatures to become a final product.’
Step 10: Cooling of the baked bread which means the bread is properly demolded and cooled quickly before slicing and then final slicing done at a temperature of 35°C or normal temperature.
- Bread Manufacturing Project Sample Cost Analysis. Under mention data is the only an assumption that will be change as per capacity and project cost requirement.
- Plant Capacity: 5000 packets per day
- Plant & Machinery: Rs 12 lakhs
- Working capital: Rs11 lakhs
- Total capital investment: Rs 36 lakhs
- Return: 13.53%
- Break Even: 80.44%
Do Right Marketing & Branding Of Your Bread Manufacturing Business
Market and branding are the most essential part for any business to flourish, and a bread manufacturing business is also not different from this. Get a properly designed logo and display board from a professional designer which helps to create your own unique identity and establish it in everybody’s mind. For marketing your business prepare pamphlets and circulate them. Apart from flyers, also prepare a display boards to attract customers. Well-designed display board costs around Rs 30,000. Apart from this, you can also use TV media for marketing purposes.
Project Report Format
In our project report format, we cover technology details, its diagrams, flow chart etc.. as and when required or deemed fit to include. Also, prepare in-depth financial calculations including CMA which is necessary for the Investor/bank.
Key Points Cover in Details Project Report on Bread Manufacturing
As mentioned above, Bread Manufacturing Detail Project Report (DPR) is a complete package that contains everything that requires getting funds up to 10 Crores. Checkout our DPR sample to make your vision more clear. Usually, the Detailed Project Report (DPR) is needed when you apply for a bank loan or Government scheme. Project Report Bank aims to create the reports accurately from the start and make sure that businessmen get the right value and results from the reports.
The following are the key points we generally covers while making DPR, whichever relevant to your business :-
- Introduction to Project and Industry
- Executive Summary
- Profile of the business in the country
- Project Evaluation – Social Angle
- Analysis of basic variables
- Socio- Economic Advantage
- Impact on environment
- Foreign Trade Income
- Value addition
- Import replacement
- Technology assimilation and so on
- Present condition of the business
- Consumer Inclinations
- Market Prerequisites
- Market Portions
- Distribution Channels
- Market Qualities of the Item
- Export Possibilities and Global Market
- Marketing and selling game plans
- SWOT Analysis
- Particulars Of Existing / Proposed Bank Credit Facilities (Form – I)
- Projected Profitability Statement ( Form – II)
- Projected Balance Sheet (Form – III)
- Comparative Operation Statement (Form – IV)
- Maximum Permissible Bank Finance MPBF – (Form – V)
- Cash Flow Statement – (Form – VI)
Monetary Projections Details Contains:
- Cost of Project & Means of Finance
- Details of Raw Materials
- Details of Utilities
- Human Resources Planning
- Technical Manufacturing Business Process
- Assumptions in monetary projections
- Projected Sales & Production
- Cost of Production and Profitability
- Fund Flow Statement
- Working Capital Cycle
- DSCR – Debt Service Coverage Ratio
- BEP – Break Even Point Analysis
- IRR – Internal Rate of Return
- ISCR – Interest Service Coverage Ratio
- Calculation of payback period
- Debt to Equity Ratio
- Working Notes for Monetary Projections
- EBIT – Earnings before interest and taxes
- EBITDA – earnings before interest, taxes, depreciation, and amortization
- Cash Burn Rate
- Discounted Cash Inflow & Outflow
- NPV – Net Present Value
- Net Worth
Report Size : 40 – 50 Pages,
In which, Financial Projections : 18 – 20 Pages
Get Detail Project Report
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Every financial formula required by the bank is contained in a comprehensive Bread Manufacturing project report. To get the sample financial project report on WhatsApp, kindly share your details with our support specialist and get it easily. Also, you can contact our support specialist by just clicking the HELP button on the bottom right corner of this screen. Our project report assistance helps in explaining the features of the reports to make you more clear and understandable on different project reports.
Bread Manufacturing business plan
A clear Bread Manufacturing Project Report is crucial for your success as an entrepreneur. Therefore, you also wish to contemplate some important, like your initial costs, your target market, and how long it’ll see you interrupt even. Also, draft a proper Bread Manufacturing Project Report that describes your expected income, product and repair lines, expansion plans, and other details of your business. Because, a well-drafted project report will facilitate you in applying for any bank loan. Therefore, you can get a well-draft project report from our website www.projectreportbank.com
Q1. Who is the target market?
Almost everyone is eating bread in some different form but people need some extra income to afford certain sandwich bread. The target market for a bread bakery business is anyone who has some optional income to spend on such kind of things
Q2. How does bread manufacturing make money?
A bread manufacturing business involves making money by selling loaves of bread. Loaves easily sold in retail or wholesale shops or you can connect with hotels or restaurants. Wholesale prices for restaurants and retailers are lower.
Q3. How much profit can bread manufacturer make?
A bread manufacturing business is not so big that can provide you so huge amount of profits but it provides handsome income by giving some smart efforts like increase sale options on weekends by charging fewer prices as on weekend’s people want easy and comfortable food. Provide free samples at local retail shops to highlight your business.
Q4. How to promote & market a bread bakery?
The best way to market your business and manufacturing product is by word of mouth. In Bread manufacturing business make the best possible bread so that people will tell their neighbours and friends. Also start encouraging online reviews and build social media profiles which also build your local reputation in society.
Q5. What are some skills and experiences that will help in the bread manufacturing business?
In this business generally who start is a good baker but you can enhance your skills by joining some bakery classes to improve your bread quality and add new kind of bread also.