Project Report: KVIC – Gramodyog Rojgar Yojana – Bakery Products Unit
Introduction
The bakery industry is a vital segment of the food processing industry in India, catering to both urban and rural households. With the increasing consumption of bread and biscuits, the bakery sector plays a crucial role in nutrition and sustenance, especially in feeding programs for children run by voluntary organizations and government departments. Bakery activities are instrumental in promoting wheat-based products in non-wheat-consuming regions, thanks to advancements in food technology that enable the production of diverse baked goods.
Project Overview
Name of the Product: Bakery Products
Total Project Cost: Rs. 286,000
- Capital Expenditure: Rs. 200,000
- Building (500 sq. ft.): Rs. 125,000
- Equipment (Oven/Bhatti, other equipment): Rs. 75,000
- Working Capital: Rs. 86,000
Production Capacity
Estimated Annual Production:
- Product: Bakery Products
- Quantity: 216,000 Kgs
- Rate per Kg: Rs. 4.00
- Total Value: Rs. 863,000
Key Cost Components
- Raw Materials: Rs. 600,000
- Labels and Packing Material: Rs. 25,000
- Wages (Skilled & Unskilled): Rs. 65,000
- Salaries: Rs. 72,000
- Administrative Expenses: Rs. 40,000
- Overheads: Rs. 20,000
- Miscellaneous Expenses: Rs. 2,000
- Depreciation: Rs. 13,750
- Insurance: Rs. 2,000
- Interest on Loan: Rs. 37,180
Financial Summary
Fixed Cost: Rs. 142,000
Variable Cost: Rs. 721,180
Working Capital Requirement per Cycle: Rs. 86,318
Estimated Cost Analysis
| Capacity Utilization | 100% | 60% | 70% | 80% |
|---|---|---|---|---|
| Fixed Cost (Rs. ‘000) | 142.00 | 85.20 | 99.40 | 113.60 |
| Variable Cost (Rs. ‘000) | 721.00 | 432.60 | 504.70 | 576.80 |
| Cost of Production (Rs. ‘000) | 863.00 | 517.80 | 604.10 | 690.40 |
| Projected Sales (Rs. ‘000) | 1,000.00 | 600.00 | 700.00 | 800.00 |
| Gross Surplus (Rs. ‘000) | 137.00 | 82.20 | 95.90 | 109.60 |
| Net Surplus (Rs. ‘000) | 123.00 | 68.00 | 82.00 | 96.00 |
Manufacturing Process
- Preparation: Sourcing raw materials such as wheat flour, sugar, oil, and additives.
- Mixing: Combining ingredients using automated or manual equipment.
- Baking: Shaping and baking products in ovens or Bhattis.
- Packaging: Packing finished products using labeled materials for distribution.
Key Notes
- Figures are indicative and subject to location-specific variations.
- Replacing building investment with rental premises can:
- Reduce project cost.
- Increase profitability.
- Lower interest on capital expenditure loans.
Conclusion
The bakery products unit under the KVIC Gramodyog Rojgar Yojana offers a promising opportunity for entrepreneurs in the food processing sector. With a relatively low investment, the project ensures high profitability, contributing to both nutritional needs and rural employment generation.
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