ENTREPRENEURSHIP DEVELOPMENT PROJECT

TOPIC

“CAKES AND CO.”

Under The Guidance of:

Faculty Name

Submitted By:

Ayush Anjana

BATCH- G

T.Y. B.Sc. SHTS 2023-2024

 CERTIFICATE

This is to certify that Mr. Ayush Anjana has performed the practical of the
Entrepreneur Development Project as it essential in three year curriculum of D.Y. Patil
University, School of Hospitality and Tourism Studies, Nerul , Navi Mumbai.
The Project Entitled “CAKES AND CO.” Contained all the relevant information for
the Completion of the project.

Mrs. Pallavi Chaudhary (Director) -

Project Incharge -

External Examiner -
 ACKNOWLEDGEMENT

I am very thankful to everyone who all supported me for completing my project

effectively and moreover on time

I am equally grateful to my project in charge Mrs. Shital Jain who gave me moral
support and guided me in different matters regarding the topic. She had been very
kind and patient while suggesting me the outlines of this project and correcting my
doubts. I thank her for his overall supports.

I express my thanks to my DIRECTOR(Mrs. Pallavi Chaudhary)for extending her

support.

Last but not the least, I would like to thank to my friends who helped me a lot in
gathering different information, collecting data and guiding me from time to time
in making this project.

I have selected the PROJECT on “CAKES AND CO.”

Hope that it contained all the required information.

Thanking You!

Ayush Anjana
 INDEX

SR.NO PARTICULAR SIGN

1 Introduction
2 Market Potential
3 Manufacturing Process
4 Financial Analysis
5 Land & Building
6 Machinery & Equipment
7 Other Fix Assets and Preliminary Operating
Expenses
8 Raw Material
9 Utilities and Working Capital Requirement
10 Project Cost
11 Man-power Requirement
12 Cost of Production
13 Interest & Depreciation
14 Profit Before Tax
15 Profit After Tax / Net Profit
16 First Year Trading Account and Balance Sheet
17 Second Year Trading account and Balance Sheet
18 Third Year Trading account and Balance Sheet
INTRODUCTION

Curried Veg, Snacks, Mix Vegetable Paratha is a combination of both nutrition and authentic Indian
flavor. These foods come with a filling of assorted vegetables mixed with rich Indian spices. A wholesome
breakfast item, these stuffed mix vegetable and parathas are perfect when you are running late as they can
be cooked in a matter of a few minutes. Nd so these frozen foods are also known as ready to Eat foods.

MARKET POTENTIAL / BUSINESS PLAN

 Paneer Market Introduction:

South India is the biggest market for paneer. However, paneer is popular in almost every

state in the country. Industry insiders reason that paneer may be finding acceptability

because more people are eating out and traveling a great deal within the country. However,

Amul sells 65% of the branded paneer in the country.

Hotel industries are the major consumer of the paneer. Besides, paneer consumption is

growing in India by 25%-30% yearly. Therefore, starting a small scale paneer manufacturing

project is highly lucrative for new entrepreneurs, if you are already in the dairy business, you

can also consider starting a small unit with the existing one.
 Market Potential of Paneer Manufacturing:

In our country, paneer is quite a popular dairy item almost in every household. Both in

vegetarian and non-vegetarian dishes, paneer are used. Naturally it is sold in various grocery

stores, supermarkets, departmental stores etc. As paneer is the primary ingredient in several

exotic Indian dishes, restaurants, hotels, food joints are the most important consumers of

paneer. However, packaged paneer of several reputed brands namely Amul, Nestle etc. is

sold maximum in the market, near about 65%. One thing is clear from the above words that

paneer consumption is increasing at a faster rate. Thus, if you have interest in dairy industry,

you can start the business of paneer manufacturing and expect a high return.

 Sales Revenue:

It may take about RS. Per liter of good quality milk and the cream and the paneer can be sold

at RS 220 per kg. RS.240 is the MRP per kg. The yield of cream can be of 4500 kg per year

and the revenue will be of RS.9.90 lakhs. Paneer of 12 metric ton will generate about RS.

26.40 lakhs and this will result in total revenue of RS.36.30 lakhs.
 Competitive Landscape:

The paneer market in India is highly concentrated in nature with the presence of only a few

large manufacturers, such as Amul, Mother Dairy, Gowardhan, these players compete

against one another in terms of prices and quality.

 Cheese Market Introduction:

Except for the popular Indian variety of cottage cheese - Paneer, India is not traditionally a

‘cheese nation.’ Cheese was more or less kept for sandwiches, or to create dishes that would

go along as evening dishes or accompaniments to cocktails. The Western world introduced

us to cheese. Now, the mainstream use of cheese and cheese spreads has increased in the

urban areas. Cheese is used as cheese blocks, grated cheese and cheese spreads. With the

growing saturation of cheese consumption in the West and the encouraging successes in

other ‘non- cheese’ Asian countries like Japan and China; overseas cheese producers are

eyeing the Indian market for its huge promise. There are 3,000 cheese varieties globally.

India's stores and delis offer about 40 varieties.

 Market Potential of Cheese Manufacturing:

The Indian cheese market is dominated by Gujarat Cooperative Milk Marketing Federation

that uses the brand name Amul and Britannia New Zealand Foods Pvt. Limited, using the

brand name ‘Britannia Milkman’. Amul is way ahead of competition and owns about 60% of

the market. Britannia has about 25% share. Other conspicuous players are Dabon

International
Private Limited, a wholly owned subsidiary of the French dairy company Bongrain S.A and

other regional brands like Mother Dairy and Vijaya. These companies have a 10% market

share. The remainder 5% of the market is taken by imported cheese brands, retailed in

specialty stores.

 Sales Revenue:

Revenue in the Cheese segment amounts to ₹392,721m in 2020. The market is expected to

grow annually by 8.8% (CAGR 2020-2025). In global comparison, most revenue is

generated in the United States (₹1,846,043m in 2020). In relation to total population figures,

per person revenues of ₹284.58 are generated in 2020. The average per capita consumption

stands at 0.8 kg in 2020.

 Competitive Landscape:

The cheese market in India is highly concentrated in nature with the presence of only a few

large manufacturers, such as GCMMF, Britannia and Mother Dairy. These players compete

against one another in terms of prices and quality.

 Curd Market Introduction:

Curd, also known as Dahi, is a well-known milk product which is prepared by the

process of fermentation. It is generally consumed on a daily basis, as a part of a meal

or refreshment by a large part of the Indian population. It is also suitable for

consumption by the lactose intolerant consumers. Curd is a rich source of nutrients

such as calcium, phosphorus, vitamin B2, magnesium and beneficial fatty acids which

help to strengthen bones and teeth improve digestion and reduce the risk of heart

problems. According to the report, the market reached a value of INR Billion in 2018,

exhibiting a CAGR of 13.5% during 2011-2018.

 Market Potential of Curd Manufacturing:

Yogurt (curd), traditionally known as Dahi in India, has been a part of the Indian meal, with

home-made dahi consumed daily. But now people become aware about the difference

between traditional dahi and yogurt. India dairy industry's rapid growth is attributed

primarily to the advent of functional products with characteristics such as low-sugar, low-fat,

cholesterol- reducing and favorable impact on digestive health. Among all functional foods,

yoghurt is considered an ideal medium for delivery of beneficial functional ingredients. In

addition, demand for organic yogurt products with natural ingredients is also on the rise.

Innovative and premium products such as bio yogurts or yogurts enriched with juice and

fruits are also finding favor among consumers.

India Packaged Yogurt Market is growing with a CAGR of 17% from last three years and is

projected to get double by the year 2018 due to rising awareness about product, increasing

disposable income, growing demand in middle class people and affordable price of yogurt.

India yogurt market is divided into two segments viz. Spoonful and Drinkable range.

Spoonful segment dominates the market heavily while drinkable yogurt is growing fast.

Keeping in point, the health and nutritional benefits of yogurt, the youngsters, women,

athletes, etc. majorly fuelled the sales in yogurt market.

According to India Packaged Yogurt Market Overview, packaged yogurt market is

anticipated to increase at a CAGR of 20.43% over three years. Amul and Nestle are the

market leaders in the organized yogurt market. Cocoberry is leading the frozen yogurt

category followed by Red Mango and YogurBerry. The unorganized market in this industry

is negligible. Nowadays consumers are becoming more health conscious; hence they will

consume products like yogurt containing low-fat, low sugar and low-calories without

compromising with the taste.

 Sales Revenue:

The report finds that the market grew at a CAGR of 13% during 2014-2019. The healthy

growth of the market can be attributed to numerous forces. Population growth, rising

disposable incomes, increasing health consciousness among consumers and affordable price

are some of the factors that are currently broadening the growth aspects of the market.

Looking forward, IMARC Group expects the market to exhibit strong growth during 2020-

2025.

 Competitive Landscape:

The competitive landscape of the Indian curd market has also been covered in this

report. Some of the prominent players operating in the market include KMF, GCMMF,

Mother Dairy, Sri Vijaya Visakha Milk Producers and Heritage.

 Ghee Market Introduction:

Ghee is nutritionally rich class of clarified butter used as a cooking medium. It is known for

its taste & pure health in the Indian subcontinent. It is commonly used in South Asian and

Middle Eastern cuisines, traditional medicines, and religious rituals. It is prepared by gently

heating butter, and retaining the clear liquid fat while discarding the solid residue that settled

to the bottom. The taste, texture, and color of the ghee depend on the quality of butter,

source of milk, and duration of boiling. In Ayurveda, ghee is considered as a vital medicine

for healing wounds, improving digestion, reducing free radicals, and boosting immune

system. It can be kept at room temperature for several weeks without refrigeration.

The consumption of ghee has increased, as it is rich in fat soluble vitamins A, D, & E, helps

in building strong bones, improves digestion, and reduces inflammation. The plethora of

health benefits and high penetration in the emerging market are the key drivers of the market

growth. Further, high disposable income and population boom are expected to present

lucrative opportunities to market players. However, overconsumption of ghee could lead to

cardiovascular diseases, which in turn is key factor affecting the market growth during the

forecast period.

The global ghee market is segmented based on application and geography. On the basis of

application, it is divided into household and industrial. Geographically, it is analyzed across

North America, Europe, Asia-Pacific, and LAMEA. Comprehensive competitive analysis

and profiles of major market players, such as Amul, Britannia, Milkfood, Madhusudan Ghee,

KMF, Nestle, Verka, Gopaljee Ananda, Gowardhan, and Anik are provided in the report.

 Market Potential of Ghee Manufacturing:

For Indians, ghee is a religious matter rather than a food item. It has dominated most Indian

kitchens for centuries. Use of ghee in sweets is viewed by customers as the symbol of their

quality and richness. But the metabolic epidemic comprising diabetes, heart disease, obesity

and hypertension, which have emerged in the recent two decades in India has put a question

mark on this Indian favorite cooking medium.

 Sales Revenue:

At present, ghee is witnessing an escalation in demand across India on account of an increase

in disposable incomes which has enabled consumers from lower income groups to afford it.

Besides, as ghee does not require refrigeration and is shelf stable, it is preferred over its

alternatives such as butter. The ghee market in India reached a value of around INR

(₹1,846,043m) Billion in 2018, growing at a CAGR of more than 11% during 2011-2018.

 Competitive Landscape:

The competitive landscape of the Indian ghee market has also been covered in this report.

Some of the prominent players operating in the market include GCMMF, RCDF, Mother

Dairy, Patanjali, SMC Foods, etc.

 FINANCIAL ANALYSIS

A. Fixed Asset

1. Plant and Machinery

Sr.No Particulars Total Unit Rate /Unit Total

Amount

1 Electric Mixers 4 50,000/- 2,00,000/-

2 Packaging Machines 2 50,000/- 1,00,000/-

3 Waffle Maker 4 50,000/- 2,00,000/-

4 Deep Freezers 2 50,000/- 1,00,000/-

Total 6,00,000/-

2. Other Fixed Assets-

Sr No Particular Rate /Unit Total Unit Total Amount

1` Table 500 5 2,500/-

2 Chair 800 5 4000/-

3 Cooler 7000 2 14,000/-

4 Printer 5000 2 10,000/-

5 Major Equipment 14,500 1 14,500/-

Total Amount 45,000/-

3. Land and Building: -

Land and Building: I have chosen this location for the production as it is economic in

nature, ij addition to above transportation, raw material are easily available. Transportation

facilities and good power units (electricity), gas supply and work force is also available. The

location site should have proximity to road/rail facilities, services, such as water, electricity

and effluent mains social infrastructure, etc. subsoil of the site should be firm with proper

drainage.

Taking a look at the availability of raw material and manpower the dairy plant will be

installed in Karjat.
 Sr. No Particulars Amount

1 4000 Purchase of gala for production 1000 35,00,000/-

sq.ft (3,500 per sq.ft)

Total Amount 35,00,000/-

B. Raw Material Purchased –

Sr.No Particulars Rate /kg Total Total Amount /Month Amount /Year

quantity Amount

/Day

1 Refined Flour 40 50 kg 2000/- 60,000/- 7,20,000/-

2 Egg 60 /doz 10 doz 6000/- 1,80,000/- 21,60,000/-

3 Milk 30 20 ltr 600/- 18,000/- 2,16,000/-

4 Sugar 40 20 kg 800/- 24,000/- 2,88,000/-

5 Baking powder 25 2kg 50/- 1,500/- 18,000/-

6 Vanilla essence 2000 /ltr 2 ltr 4000/- 1,20,000/- 14,40,000/-

7 Butter 400 15 kg 6000/- 1,80,000/- 21,60,000

Total 19,450/- 5,83,500/- 70,02,000/-

C. Utilities-

Sr.No Particulars Amount / Month Amount/ Year

1 Electricity 10,000 1,20,000/-

2 Water Bill 2000 24,000/-

3 Telephone Bill 3000 36,000/-

4 Gas Bill 4000 48,000-

5 Transport 10,000 1,20,000/-

Total 3,48,000/-
D. Manpower Requirement

Sr.No Particulars Quantity Salary / Total amount Salary /Year.

Month

1 Manager 1 15,000/- 15,000/- 1,80,000/-

2 Admin Staff 2 14,000/- 28,000/- 3,36,000/-

3 Technical Staff 2 18,000/- 36,000/- 4,32,000/-

4 Marketing 2 12,000/- 24,000/- 2,88,000/-

Executive

5 Skilled Employee 2 15,000/- 30,000/- 3,60,000/-

6 Housekeeping 4 8000/- 32,000/- 3,84,000/-

7 Security 3 10,000/- 30,000/- 3,60,000/-

Total 23,40,000/-
 Cost of Production

Sr.No Particulars Amount

1 Raw Material 70,02,000/-

2 Salary and wages 23,40,000/-

3 Utilities 3,48,000/-

4 Plant and Machinery 6,00,000/-

5 Contingencies 10,000/-

6 Fixed Assets 45,000/-

Total 1,03,45,000/-

12 Projected Annual Sales

PAS= Cost of Production + 30% of Cost of production

=1,03,45,000 + 31,03,500

=1,34,48,500
13 Project Cost—

Sr.No Particulars Amount

1 Land And Building 35,00,000/-

2 Plant and Machinery 6,00,000/-

3 Margin Money 26,89,700/-

4 Fixed Assets 45,000/-

5 Contingency 10,000/-

6 Pre-operating expenses 12,000/-

7 Post-operating expenses 16,000/-

Total 68,72,700/-
14 Means of finance – Here you have to write Promoters contribution and Money borrowed

from bank as a loan.

Sr.No Particulars Amount

1 Promoters Contribution (It should be 40 % of Project 27,49,080/-

cost)

2 Bank Loan at a rate of 12 % Interest (It should be 60 % of 41,23,620/-

project cost)

Total 68,72,700/-

15 Profit = Selling Price – Cost of Production

= 1,34,48,500 – 1,03,45,000

Profit = 31,03,500/-

16 Profit after Interest and Depreciation

= Profit - (Interest on Bank Loan @12% p.a. + Depreciation on Fixed Assets @10%)

= 31,03,500 – (4,94,834.4 + 4,500)

= 31,03,500 – 4,99,334.4

= 26,04,165.6
 17 NET PROFIT after GST

Net Profit= Profit – 18% GST

= 26,04,165.6 – 4,68,749.80

=21,35,415.8

FY 19-20 (FIRST YEAR)

Trading Account

Particulars Amt Particulars Amt

To Salary and Wages 23,40,000 By Sales 1,34,48,500

To Utilities 3,48,000

To Purchase 1,07,60,500

1,34,48,500 1,34,48,500

Profit & loss Account

Particulars Amt Particulars Amt

To Depreciation- By Gross Profit 1,34,48,500

-Land and Building 3,50,000

-Plant and Machinery 60,000

-Furniture and Equipment 4500

To Stationery 1634787.63 2549915.8

To Advertisement 3814504.47
 To Transport 3269575.26

To Freight 2179716.84

To Net Profit 21,35,415.8

1,34,48,500 1,34,48,500

Balance Sheet

Liabilities Amt Assets Amt

Promotor’s

Contribution 27,49,080 Land & Building 35,00,000

Add: Net profit 21,35,415.8 48,84,495.8 Less: Dep @ 10% (3,50,000) 31,50,000

Plant & Machinery 6,00,000

Bank Loan 41,23,620 Less: Dep @ 10% (60,000) 5,40,000

Furniture and

Less: EMI (12 M) (2,72,924) 38,50,696 Equipments 45,000

Less: Dep @ 10% (4500) 40,500

Patents 10,00,938.36

Registration of

Company 6,00,563.016

Cash In hand 8,00,750.688

Cash At Bank 12,01,126.032

Closing Stock 14,01,313.704

 87,35,191.8 87,35,191.8

FY 20-21 (SECOND YEAR)

Trading Account

Particulars Amt Particulars Amt

To Salary and Wages 23,40,000 By Sales 1,74,83,050

To Utilities 3,48,000

To Purchase 1,47,95,050

1,74,83,050 1,74,83,050

Profit & loss Account

Particulars Amt Particulars Amt

To Depreciation- By Gross Profit 1,74,83,050

-Land and Building 3,15,000

-Plant and Machinery 54,000

-Furniture and Equipment 4,050

To Admin 21,50,093.925

To Advertisement 50,16,885.825

To Stationery 28,66,791.9

To Transport 43,00,187.85

To Net Profit 27,76,040.54

1,74,83,050 1,74,83,050

Balance Sheet

Liabilities Amt Assets Amt

 Promotor’s

Contribution 27,49,080 Land & Building 31,50,000

Add: Net profit 27,76,040.54 55,25,120.54 Less: Dep @ 10% (3,15,000) 28,35,000

Plant & Machinery 5,40,000

Bank Loan 38,50,696 Less: Dep @ 10% (54,000) 4,86,000

Furniture and

Less: EMI (12 M) (2,54,860) 35,95,836 Equipments 40,500

Less: Dep @ 10% (4.050) 36,450

832812.162 Cash in Hand 864525.981

Cash at Bank 2017227.289

Sundry Debtors 1729051.962

Investments 1152701.308

91,20,956.54 91,20,956.54

FY 21-22 (THIRD YEAR)

Trading Account

Particulars Amt Particulars Amt

To Salary and Wages 23,40,000 By Sales 2,27,27,965

To Raw materials 70,02,000

To Utilities 3,48,000 9690000

To Purchase 1,30,37,965

2,27,27,965 2,27,27,965
 Profit & loss Account

Particulars Amt Particulars Amt

To Depreciation- By Gross Profit 2,27,27,965

-Land and Building 2,83,500

-Plant and Machinery 48,600

-Furniture and Equipments 3,645

To Other Expenses 2817505.0947

To Stationery 3756673.4596

To Advertisement 5635010.1894

To Transport 6574178.5543

To Net Profit 36,08,852.702

2,27,27,965 2,27,27,965

Balance Sheet

Liabilities Amt Assets Amt

Promotor’s

Contribution 27,49,080 Land & Building 28,35,000

Add: Net profit 36,08,852.702 63,57,932.702 Less: Dep @ 10% (2,83,500) 25,51,500

Plant & Machinery 4,86,000

 Bank Loan 35,95,836 Less: Dep @ 10% (48,600) 4,37,400

Furniture and

Less: EMI (12 M) (2,37,992) 33,57,844 Equipments 36,450

Less: Dep @ 10% (3,645) 32,805

Sundry Debtors 1004110.7553

Closing Stock 2342925.0957

Cash In hand 1338814.3404

Cash At Bank 2008221.5106

97,15,776.702 97,15,776.702