Introduction to Biscuit Project Report, and Manufacturing Business Plan: This blog will give a detailed biscuit-making sample project guide and comprises the essential aspects like cost, production process, equipment, and raw materials. Also, it includes financial analysis and the relevant business license and authorizations that are mandatory for setting up a small-scale business.
A guide to Biscuit Project Report (Cookie), and Manufacturing Process Business Plan
If one has a passion for baking and has a keen desire to work in the food processing segment, then it is one of the best ventures for that individual. Moreover, it is a financially appealing business. Apart from that, this manufacturing is classified under the conventional bakery segment.
Broadly, we have about two different types of business models that can be opted in this country. One is a small-scale biscuit manufacturing unit that has the sole motive to sell biscuits in the local market. And next is a medium-scale unit that targets a wide distribution network for sales. Both the models have their benefits and risks. However, the second one will attract more revenue with proper returns and is easy for expansion in the future.
Business plan for starting Biscuit Manufacturing Business
It is a very crucial step for any business and crafting a customized project report must be done properly. If one has previous expertise in the biscuit manufacturing segment and has the awareness about technicalities in it, then you can draft the plan using some applications available online. There are many software solutions now in the market to draft the financial breakdown and cost-profit analysis.
However, if you don’t have any technical knowledge about the machinery, raw materials, production process, then it is recommended to approach experts in this business or sector. The financial analysis of a project report is based on the following segments.
- Market potential
- Basis and presumptions
- Implementation schedule
- List of approvals required
- Raw materials required
- List of machinery and equipment
- Manufacturing process
- Project economics
Basis and Presumptions of Biscuit Manufacturing Business
The Biscuit Manufacturing Project Profile relies on the following assessments:
- Working hours/shift: 8 hrs.
- No. of shift/day:1
- Working days: 300
- Labor expenses: as per the State Government’s Minimum Wages Act.
- Rate of interest: 15% per annum
- Costs of machinery and equipment: Taken based on A particular dealer
- Value of raw material: As per local market Packing material/others rate (on wholesale rate)
- Land: owned
- Building Construction
- Break-even point will be estimated on a full capacity utilization basis
- Pay-back time is 5 – 7 years
Implementation schedule of Biscuit Manufacturing Business
The project implementation schedule of Biscuit Manufacturing Business
- Project preparation: 0-1 month
- Location selection, acquisition of 1-2 months land and land development
- Loan Sanction: 1-3 months
- Building construction: 3-4 months
- Connection of electric supply and water: 4-5 months
- Obtaining machinery: 5-6 months
- Electrification & installation: 6-7 months
- Recruitment of staff and workers: 7-8 months
- Trial run can be initiated in 8-10 months
- Commercial production could start from 10-11 months
Market potential of Biscuit Manufacturing Business
In the present times, the biscuit industry’s annual growth rate (CAGR) is around 11.27%. Not only the basic and premium biscuits but also the cookie segment is now having demand and growth has been seen these days. In India, the penetration in the rural market has a significant role that contributes to the success of a biscuit business.
The biscuit market is very favorable and anticipating a higher development in the coming years. The biscuit market is majorly about decision-making, and strategic preparation such as insights on how to sell, what type of packaging might be opted for, what will be the cost, profit margin, etc.
List of approvals required for starting Biscuit Manufacturing Business
For beginning the biscuit-making business, it is important to register the business primarily. Apart from the proprietorship pattern, one can register using state ROC as LLP or Pvt. Ltd or Ltd. Company. The other necessary permission can be applied only after the business has been registered.
The first step after firm registration has to be the online application of the MSME Udyog Aadhaar registration. It aid to avail the various Government schemes and financial support. Next, go for the Trade License that can be done by contacting the local Municipal authority. Get the mandatory GSTIN for the tax submission.
As the final product is related to food, compliance with the PFA Act is obligatory. So, it is important to get FSSAI registration and BIS certification so that it can be printed on your packing material.
Things required to set up Biscuit Manufacturing Unit
Now, it is the stage to arrange the manufacturing plant. Usually, a production plant should have particular space allocated for production, storage, packaging, and administrative tasks. Also, it requires some wide space close to the front gate for unloading and loading works.
The scale of the unit is chiefly based on the production capacity. Commonly, you can operate a small-scale biscuit manufacturing unit in an approximately 1500 sq. ft region. Check the provision of water supply, power connection, and transport provision close to the unit location.
List of machinery required for starting Biscuit Manufacturing Business
Broadly, you can arrange the unit either by semi-automatic or fully automatic machines. For a small-scale plant, it is recommended to accommodate the semi-automatic machine. Moreover, the requirement of particular machinery is based, on the production process and output capacity. Here, we have added an essential list of primary machinery that you have to purchase for a biscuit-making business.
- Automatic continuous roller cutting machine
- Flour shifter automatic screw type vibrator system having an automatic lifting system
- Double action horizontal mixing machine
- Sugar grinding machine
- Oil spraying machine for salted biscuit
- Roll sheeter
- Cooling conveyor
- Biscuit grinder with motor
- Turntable working between oven and conveyor integrated with motor and starters
- Extra brass roller used for rotary cutting machine and the roller cutting machine
- Working table with S.S./Aluminium top
- Syrup machine with one motor and starters
- Weighing balance platform type
Raw materials required for starting Biscuit Manufacturing Business
For commercial biscuit making, the chief raw material is wheat flour. One must contact a good supplier for a regular supply of wheat flour to his plant.
Also, you must get some other important components like yeast, ghee, sugar, salt, milk powder edible colors, required flavors, etc.
Not only ingredients, but you require packaging materials as well. Packaging is a significant factor in the biscuit-making business. Plan for some sort of different out-of-the-box packaging thoughts. You have to gain the ideas to get attractive and moisture-proof packaging. Also, try to acquire the outer carton for bulk packaging and its supply for transportation to retailers and distributors.
The manufacturing process of Biscuit Cookie
The biscuit-making method is very easy. However, the recipe differs from brand to brand and makes the difference. Primarily, mix the intended amount of maida, starch, soy flour, Vanaspati, water, etc. Then knead the content properly to the desired consistency. At last, roll the dough and proceed with baking. Post baking the biscuits will be left for cooling and later wrapped for packaging.
Biscuit Project Report/ Economics of Biscuit Manufacturing Business in India
In case if you miss this: Canola Oil Manufacturing Project Report.
i) Land and Building
Building 2000sqft @Rs.2000 per Sq. ft: Rs. 4,00,000
Over Head Tank: Rs. 40,000
Total: Rs. 4,40,000
ii) Machinery and Equipments: Rs. 4,95,000
iii) Pre Operative Expenses: Rs. 25,000
Total Fixed Capital (i+ii+iii): Rs. 9,60,000.
i) Raw Materials: Rs. 7,99,000
ii) Salaries and Wages
Manager cum Food technologist 1: Rs. 20,000
Sales man: Rs. 10,000
Skilled workers-2: Rs. 30,000
Helpers 10 nos: Rs. 50,000
Total: Rs. 1,10,000
iii) Utilities: Rs. 11,300
iv) Other Contingencies: Rs. 13,700
Total working capital (i+ii+iii+iv): Rs. 9,34,000.
Total Capital Investment
a) Fixed Capital: Rs. 9,60,000
b) working Capital: Rs. 9,34,000
Total: Rs. 18,94,000
Source of Funds
Term loan: Rs. 7,20,000
working Capital Loan: Rs. 7,00,500
Own fund: Rs. 4,73,500
Total: Rs. 18,94,000
Total loan amount required: Rs. 14,20,500.
Cost of production
Total recurring expenditure: Rs. 9,34,000
Depreciation on Building and tank @5%: Rs. 1,833
Depreciation on machinery and equipment @10%: Rs. 2,917
Depreciation on hand tools@15%): Rs. 438
Depreciation on Office equipments@20%: Rs. 1,000
Interest on loan (15%): Rs. 17756
Total production cost: Rs. 9,57,944
Say: Rs. 9,58,000
Profit in Biscuit Manufacturing Business
The total sale price of biscuits manufactured: Rs. 15,49,000
Profit = Rs. 15,49,000 – Rs. 9,58,000 = Rs. 5,91,000.
Quality control in Biscuit Manufacturing Business
Good Manufacturing Practice (GMP) and Quality Control (QC) are the significant elements in the biscuit-making plant. You must uphold the BIS specifications. Also, timely testing of the product before every packaging will preserve the biscuit quality.
All the staff who are involved in the unit for various operations must be knowing the proper hygiene practices that have to be followed in a biscuit factory.
Marketing strategies to promote your Biscuit product
Generally, the success of a biscuit brand can be analyzed based on many several aspects like creative packaging, tastes, new flavors, innovative shapes, etc. Also, growing health consciousness among the population through the various platforms is an effective key for the Indian consumer market. It is very easy to plunge into the present market if you can offer several varieties at a reasonable or cheaper price than an established brand.
Electronics media and traditional advertisements play a crucial role in advertising the product and increasing public awareness. It is better to tap the local market in the initial days. Later go for expansion. One must develop a proper marketing plan and its associated team that could contribute properly to his/her biscuit making the business a huge success.
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