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FEASIBILITY REPORT ON BAKERY &CONFECTIONERY
This feasibility study examines opening a bakery and confectionery business with two outlets. It will produce and sell cakes, snacks, sweets, biscuits, bread and other items. The bakery will operate out of a 9,600 square foot facility with two 900 square foot retail outlets. It will employ staff across various roles like production, sales and management. Financial projections cover a three year period and make assumptions about costs, revenues, and other factors to assess the investment's viability.
In this document
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Introduction to project feasibility with focus on bakery and confectionery aspects.
Key steps before investment include analyzing customer base, location, and market potential.
Overview of bakery products, including cakes and snacks, with a market strategy of dual-outlets.
Details on production capacity based on machinery capabilities and operational shifts.
Financial structure with equal equity and debt funding totaling Rs. 17,209,000.
Optimal project location criteria focusing on urban areas with infrastructure support.
Recommendations for marketing tactics, brand positioning, and product development.
Sales distribution plan with a split between own outlets and sales to other bakeries.
Summary of raw materials necessary for project implementation.
Details on cost-effective local and second-hand machinery options to be used.
Specifications for furniture and fixture installations needed for the bakery.
Land area and utility requirements such as gas, water, and electricity for the bakery.
Outline of human resource requirements necessary for project execution.
In-depth financial analysis to support the feasibility and sustainability of the project.
Key assumptions that underpin financial and operational projections for the project.
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FEASIBILITY REPORT ON BAKERY &CONFECTIONERY
- 2. CONTENT • INTRODUCTION • STEPBEFORE INVESTMENT • PROJECT BRIEF • PROJECT CAPACITY • PROJECT INVESTMENT • PROJECT LOCATION • STRATEGIES • SALE • RAW MATERIAL • MACHINARY AND FURNITURE • HUMAN RESOURCE • FINANCIAL ANALYSIS • KEY ASSUMPTIONS
- 3. INTRODUCTION This particular feasibilityis regarding “Bakery & Confectionery” The project feasibility may form the basis of an important investment decision and in order to serve this objective, the document/study covers various aspects of project concept development, start-up, production, marketing, finance ,business management
- 4. STEPS CONSIDERED BEFOR INVESTMENT •Number of customers • Cites and area of country • Potential of customers • Selection of right location • Provision of other general items
- 5. PROJECT BRIEF Major productsin this case would be cakes, snacks, sweets & nimko, biscuits, bread and general items A combination of 2 outlets, one in a low-income area and another in a posh area, is used in this study along with 27% sales to other bakeries at trade discount of 15 %
- 6. PROJECT CAPACITY Project Capacitycan not be based on machinery capacity The proposed bakery outlet will be working from 6.00-am morning to 12.00 midnight. These outlets determine the factory timing for production. It is proposed that 2shifts are necessary for production For the proposed project, oven of 7x7x10 feet with 8 rotating stands having 5 trays on each stand is used. So the oven capacity will be: 60-kg biscuits in 30 baking minutes at a temperature of 150 degree centigrade. 120 pieces of large Pizza in 20-25 minutes at a temperature of 150 -180 degree centigrade. Number of working days has been taken as 365 with average 2 shifts per day
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- 8. PROJECT COST ANDFINANCE PROJECT FINANCE Equity Rs.8,604,500 Debt Rs.8,604,500 Total finance Rs.17,209,000
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- 10. PROJECT LOCATION Any bigcity with a total population of over 1 million is the ideal location for the project as in AGRA Sadar bazar which is main market area. Electricity and water supply is easily available with 24 hrs power supply. For a heavy competition and proper positioning of the brand name, one has to open outlets in the vicinity of competitors. exposure to new foods both have resulted in demand for diversity in terms of food varieties and uses
- 11. STRATEGIC RECOMMENDATION • MARKETINGand BRANDING • PRICING • NEW PRODUCT DEVLOPMENT
- 12. SALE • The projectwill be having two sales outlets of its own and the rest of the production will be sold to other bakeries. • It is hereby assumed that sales to other bakeries will at a trade discount of 15%. Out of the total sales 27% will be sold to other bakeries while 73% of the total sales will be sold on bakery’s own outlets.
- 13. ANNUAL SALE ITEM %AGETOTAL AMOUNT FRESH CREAM CAKE 7 3,190,429 FRESH PASTRIES 21 2,014,800 DRY CAKE 9 2,252,868 SNACKS 54 4,894,152 BUISCITS 3 1,855,658 SWEET AND NIMKO 6 3,142,064 GENERAL ITEMS 5,146,495 TOTAL SALE 23,563,216
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- 16. MACHINARY The proposed projectwill be using local machinery or 2nd hand imported machinery available locally. Local machinery and installations are quite competitive in price in comparison to the foreign equipment and installations. Major suppliers of Local and used imported machinery are: Bake excel Associates, agra Saeed Fabrication Works, agra
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- 20. LAND/COVERED AREA The proposedfactory will be consisting of 9600 sq. ft. of land whereas the shop areas will be 900 sq. ft for each outlet The development charges are taken to be 10% of the land cost Main utilities would be gas, power and water.Distribution transformer station, loading capacity averaging 10 KW, 3-phase industrial meter is estimated to fulfill the requirement ofpowerWater supply would be through local municipality.
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