1

B READ

PRODUCT CODE : 205101

QUALITY AND STANDARDS : IS 1483:1979
IS 4941:1968
PRODUCTION CAPACITY : Qty. : 36 lakh loaves of 400 gm bread per year
Value : Rs. 165 Lakh
MONTH AND YEAR : February, 2003
OF PREPARATION
PREPARED BY : Office of the Development Commissioner,
(Small Scale Industries), Nirman Bhavan,
New Delhi-110011

INTRODUCTION MARKET POTENTIAL

Bread is a fast and convenient food With the changing socio-economic
based on wheat. There are many environment i.e. increased literacy rate
varieties of bread depending upon the (about 65%), higher per capita income,
local demand like whole flour bread, larger number of women going out for
brown bread, bread fortified with work to sustain family, higher living
vitamins and minerals, milk bread and standards and increased tourist
bread for diabetic patients. Its population, etc., one can expect atleast
consumption is more in cities and towns 5% growth rate in case of bakery
where industrial working group products in coming years. According to
population is more. Bread and biscuit an estimate, there are about 1 lakh SSI
consumption is increasing day by day Units producing items worth Rs. 3000
and these are being increasingly used crores annually. Our per capita
for various feeding programmes for consumption of bakery products is the
children managed by voluntary agencies lowest in the world i.e. 1.27 kg. whereas
and State Departments of Health. in advanced countries, it ranges from
The raw material required for bread 5070 kgs.
is wheat flour/ maida which is available Keeping in view these facts, the
in plenty in the country considering manufacture of bakery products has
increase in wheat production from 26 substantial scope for development in
million tonnes in early 1950 to 54 million smaller towns, villages and backward
tonnes as of today. The manufacture of areas and can provide good number of
bread is exclusively reserved for small employment opportunities at different
scale sector. levels.
8 BREAD

B ASIS AND PRESUMPTIONS TECHNICAL ASPECTS

(i) The scheme is based upon three Process of Manufacture
shifts per day with installed
Dough is prepared by mixing all the
capacity of 15000 loaves and 300
ingredients together in the machine. The
working days per annum.
bowl is removed and mixing is done at
(ii) The capacity utilization of plant is intervals of 40 minutes. The mixed
considered to be 70% with 3% dough is fermented for two hours,
overall wastages and other knocked back and rested for 30 to 40
expenses. However, it will minutes. The dough is ready for dividing.
increase to 80% and 90% in 2nd
The dividing is done as per the size of
and 3rd year respectively.
the loaf to be manufactured.
(iii) The construction of building and
The divided dough pieces are panned
layout of plant is expected to meet
and kept for final processing. When the
the hygienic standards prevailing
dough attains a particular rising, they are
in other similar food processing
baked for 40 minutes at 420F. Baked
Industries.
dough is cooled sufficiently, sliced and
(iv) The yield of bread is about 910
then wrapped.
numbers of breads (400gm.)
taken from 280 kgs of Maida. Quality Control and Standards
(v) The costs of machinery, raw
The Bureau of Indian Standards has
material, finished product, salary,
interest, etc. have been taken as specifications for bread and the number
prevailing in the market. is IS1483:1979.
(vi) The water charges @ Rs 4.75/kl,
Production Capacity (per annum)
include cost of pumping,
processing and distribution of Sl. Item Qty. (No.) Value
water. No. (Rs. in lakhs)
1. Bread 30 lakhs 165
IMPLEMENTATION SCHEDULE
Motive Power
Sl. Activity Period The approximate requirement for the
No. (in months)
unit of above capacity is 25.00 KW.
1. Arrangement of land,
Registration, approval Pollution Control
of loan and other
formalities 2 There is no major pollution problem
2. Site development, in the manufacture of the above item.
fencing and civil
construction 1 Energy Conservation
3. Machinery procurement 2 Baking oven should be selected based
4. Erection and commis- on its performance of energy efficiency
sioning 1 in terms of fuel/power because it
5. Trial-cum-commercial involves high energy consuming
production 1 process.
 BREAD 9

FINANCIAL ASPECTS Sl. Particulars

No.
Indige- Qty.
nous
Total
(Rs. in
lakh)
A. Fixed Capital
1 2 3 4
i ) Land & Building Amount (Rs. 9. Tunnel type final -do- 1 2.0
in lakh) prover over all size
1. Land 1000 sq mts @ Rs 250 2.50 6622' long
sq mtr double walled
complete with
2. Land Development, Fencing etc. 1.00 recirculating fan (1HP)
and with 1 HP
Built-up Area
automatic arrangement
3. Main Factory Building 15.00 of mechanical pushing
600 sq mts @ Rs 2500 sq mtr trollies through
Other Constructions the tunnel
4. 50 sq mts@ Rs 1500 sq mtr 0.75 10. Proofing Racks-A set -do- 1 1.0
of 8 No. for
Total 19.25 final proofing
ii) Machinery and Equipments 11. Oil, fired travelling -do- 1 3.75
type of oven having
Sl. Particulars Indige- Qty. Amount capacity of 1000 loaves
No. nous (Rs. in charge having 1HP
lakh) main drive motor, 3 HP
1 2 3 4 recirculating fan,
another 1 HP driven
(a) Production Unit exhaust fan complete
with medium pressure
1. Auto flour sifter with Ind. 1 0.40
burner
capacity to sift 2 bags
per 5 minute complete 12. Hot loaves collection -do- 1 0.30
with 0.373 KW motor table 6' diameter tur-
and other accessories ntable having sunmica
top driven by 1 HP motor
2. Water measuring tank -do- 1 0.15
(S.S.) capacity 100 litres 13. Slit conveyer for pan -do- 1 0.80
with all accessories returned from oven
to moulding area
3. 100 Kg capacity double -do- 2 1.2 driven by 1 HP motor
armed type dough
kneader with 1.5 kW 14. Slicing machine output -do- 3 0.75
motor 500-600 loaves per
hour with 0.746 KW
4. M.S. extra tub -do- 2 0.12 motor

5. Single pocket slow speed -do- 1 0.80 15. Wrapper sealing -do- 3 0.18
dough dividing complete machine 8 simmer
with 1 KW motor state 5 heaters
1.5 KW load
6. First prove rounder -do- 1 0.30
16. Bread cooling racks -do- 8 0.60
table type with
0.746 KW motor 17. Bread mould set of 3 Ind. 0.45
pans with lid
7. Conical umbrella type -do- 1 0.60
rounder complete with 18. Refrigerated cabinet -do- 0.25
1.12 KW motor and for storing compressed
suitable reducing yeast upto 200 kg
gear box capacity fitted with
1HP 3 phase motor
8. Bread dough straight -do- 1 0.60 19. Coal fired baby boiler -do- 1 0.40
through moulder with of capacity 200 kg
1.5 KW geared motor Steam/hr complete
and switches with all fittings
10 BREAD

Sl. Particulars Indige- Qty. Amount B. Working Capital (per month)

No. nous (Rs. in
lakh) (i) Personnel
20. 6" cotton canvas -do- 2 0.30
conveyer driven by Sl. Designation No. Salary Total
0.37 KW motor No. (Rs. in
lakh)
b) Testing Equipment -do- L.S. 0.50
c) Pollution Control Nil 1. Manager 1 6000 .06
Equipment 2. Supervisor-cum-chemist 4 4000 .16
d) Energy Conservation Nil
Facilities/Equipment 3. Mechanical supervisor 1 3000 .03
e) (1) Cost of power 0.50
connection 4. Accountant (Senior) 1 4000 .04

(2) Electrification 1.27 5. Sales-cum-purchase clerk 2 2500 .05

and Installation
charges @ 10% 6. Clerk-cum-cashier 1 2500 .025
of the cost of
machines and 7. Skilled Workers 7 2500 .175
equipments
f) Cost of Moulds/ 0.20 8. Unskilled Workers 14 2000 .28
Other Fixtures
9. Peon-cum-watchman 2 2000 .04
g) Cost of Office 0.50
Equipments and 0.86
Furniture, etc
Perks @ 15% of Salaries 0.13
Total 17.92
iii) Pre-operative Expenses 0.50
Total 0.99
Total Fixed Capital 37.67
i)+ii)+iii)

(ii) Raw Materials

Particulars Ind. Qty. (tonnes) Rate (per Kg.) Amount(Rs. in lakh)

Flour -do- 92 Rs. 8.50/kg 7.82

Sugar -do- 2.76 Rs. 14.50/kg 0.40

Salt -do- 1.4 Rs. 4/kg 0.056

Dry yeast -do- 0.7 Rs. 150/kg 1.05

Chemical and additives L.S. 0.40

Packaging materials L.S. 0.80

10.526

(iii) Utilities

Power 766 KWH units @ Rs. 3/KWH 0.23

Fuel L.S. 0.07

Water 0.005

0.305
 BREAD 11

(iv) Other Contingent Expenses Particulars Amount (Rs.

Particulars Amount (Rs. in lakh)
in lakh)
(v) Depreciation on office 0.20
(i) Postage and Stationery 0.005 equipment @ 20%
(ii) Telephone 0.005 (vi) Interest on total capital 6.95
Investment @ 14%
(iii) Consumable stores 0.01
Total 153.252
(iv) Repair and maintenance 0.005
(2) Turn over (per year)
(v) Transport charges 0.03
(vi) Advertisement and Publicity 0.03 Item Qty. Rate Amount (Rs. in lakh)

(vii) Insurance 0.01 Bread 30 lakhs @ Rs 5.60 168

(viii)Taxes 0.005 (3) Net profit (per year) Rs. 168 lacs 153.252 lacs=
(ix Sales expenses 0.02 (before income tax) Rs. 14.748 lakhs

(x) Other Miscellaneous Expenses 0.02 (4) Net Profit Ratio

Total 0.14 = Net Profit per year 100
Turn over per year
(v) Total Recurring Expenditure (per month)
= 14.748 100
(Rs 0.99 + 10.526 + 0.305 + 0.14) = 11.961 lakhs 168
(vi) Working Capital for Bread Industry for one = 8.78%
month-Recurring Expenditure = Rs 11.961 lakhs

(5) Rate of Return

C. Total Capital Investment = Net Profit per year 100
(Rs. in lakh) Total Capital Investment
= 29.72%
(i) Fixed Capital 37.67
(ii) Working Capital 11.961 (6) Break-even Point
Total 49.631 (i) Fixed Cost Amount (Rs.
in lakh)
MACHINERY UTILIZATION (a) Depreciation (on machine and equipment, 1.93
tools and fixtures and other equipment)
The baking of bread is considered to (b) Depreciation on building 0.84
be bottleneck operations for achieving (c) Interest on total investment 6.95
projected capacity and anticipated
(d) Insurance 0.12
utilization of 9095%.
(e) 40% of Salary 4.128

FINANCIAL ANALYSIS (f) 40% of Other Contingent Expenses 0.62

(1) Cost of Production (per year) Total 14.588

Particulars Amount (Rs. (ii) Net P rofit (per year) 14.748

in lakh)
B.E.P. = Fixed Cost 100
(i) Total recurring cost 143.532 Fixed Cost + Profit
(ii) Depreciation on building @ 5% 0.84 = 14.588 100
(iii) Depreciation on machinery 1.68 14.588 + 14.748
and equipment @ 10% = 1458.8
(iv) Depreciation on moulds 0.05 29.336
and fixtures @ 25% = 49.73%
12 BREAD

A DDITIONAL INFORMATION 4. M/s. J.SC. Dass and Bros.

33/8, Anath Nath Dev Lane,
For detailed technical information Kolkata-700037
entrepreneurs may contact any SISI or 5. M/s. Ever Fresh Product
Branch SISI located in the region. Ram Bagh,
Addresses of Machinery and Indore (M.P.)
Equipment Suppliers 6. M/s. New Engg. Industries
Firozpur Road,
1. M/s. Baker and Co. (P) Ltd.
Ludhiana.
Oomrigal Building,
Opp. Crawford Market, 7. M/s. Bijoy Engineers
Mumbai-400008 Mini Industries, Arimpur,
Trichur - 680611 (Kerala)
2. Nagpal Brothers (Regd.)
C-127, Phase-II, 8. Baker Enterprise
Mayapuri Industrial Area, 23, Behra Engg. Lane
New Delhi-110064 Near Peeragarhi,
Ph. 25400407, 25402631 New Delhi - 110041
3. M/s. Mangal Engg. Works 9. Flora Engg. Corp.
Lahori Gate, 28-A, Phoolbag, Rampura,
Patiala, New Delhi -110035
(Punjab) Phone: 25415335, 25411920.