bakery final

8/2/2019 Bakery Final

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I N D U S T R Y

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Presented ByShradha, Anchal ,Priyam,


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INDIAN BAKERY INDUSTRY

The Indian bakery industry is the largest among the processedfood industries. The current estimated market is about Rs3,295 crore and is expected to cross Rs 4,308 crore by 2012.

At present, the bread & biscuit industry accounts for 82% ofthe total bakery products in the country.

At present, the annual production of bakery products whichinclude bread, biscuits, pastries, cakes, buns and rusk, most

of which are in the unorganised sector, is estimated to be inexcess of 3 million tonnes.

The production of bread and biscuits in the country both in theorganised and unorganised sectors is estimated to be around2.6 million tonnes.

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RESTRICTIONS AND REGULATIONS The import and export of food ingredients in India is

governed by Directorate General of Foreign Trade (DGFT)under Ministry of Commerce.

The taxes and duties are imposed by Central Board of

Excise and Customs, under Ministry of Finance. Accordingto Central Excise and Customs Law, each food ingredient isclassified (for duties / taxes purpose) under differentchapters according to their source, processing and nature.

The other body keeping an eye on the quality of incomingingredients is Food Safety and Standards Authority of India(FSSAI), under Ministry of Health and Family Welfare

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BAKERY PRODUCTS The market for bakery industry is valued at

Rs. 69 billion. The two major bakeryproducts, i.e. breads and biscuits hold forabout 82 % of the market share.

Product coverageBread

Biscuits

Pastries Cakes

Buns

Confectionary products


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WHY BAKERY BUSINESS? Changing trend.

New challenges, like healthy nutritious, tasty and freshproducts.

Diversified products like,

1. High protein products.2. Vitaminised & Mineralized product.3. Anti diabetic products.4. High fiber content product.

5. Low salt product.6. Low fat product.

Export of bakery product

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PROBLEMS AND CHALLENGES

The major problem the bakery business faceis the labor problem, quality issues

Sometimes illiterate customers arrive that isthe challenge to sell a bakery product

Pricing problems

Political issues such as taxing system


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WHAT WERE THE PROBLEMS YOU FACED WHILECOMMENCING THIS BUSINESS?

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0%

10%

20%

30%

40%50%

60%

70%

labourproblem

qualtyissues

politicalproblems


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WHAT ARE YOUR MARKETING TACTICS YOUINVOLVE TO EXPAND YOUR BUSINESS?

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0%10%20%30%40%50%60%

70%80%90%

outdorradvertising

event sponser special events

q9


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DID YOU GET ANY FINANCIAL AID FROM ANYORGANIZATION?

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0%

20%

40%

60%

80%

100%

yes no


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ARE YOU A LABOR INTENSIVE ORGANIZATION

OR A TECHNOLOGY INTENSIVE ORGANIZATION?

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GoodBakery

sunderBakery

BurmaBiscuit

SweetLusciou

s

Cakes&

Bakes

labour 60 60 80 40 50

Tecnology 40 40 20 60 50

0102030

405060708090


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DO YOU MAINTAIN INVENTORY FOR A LONGERPERIOD OF TIME?

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0%

20%

40%

60%

80%

100%

yes no


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WHAT ARE THE CHALLENGES YOU FACED INRUNNING THIS BUSINESS?

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0%

10%

20%

30%

40%

50%

60%


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WHAT ARE THE OPPORTUNITIES YOU FEEL ARE THERE IN THISINDUSTRY AND ARE THEY WORTHWHILE FOR YOU?

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0%

10%

20%

30%

40%

50%

60%

70%

80%

mass coveragediversification expansion

80%

30%

50%


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WHAT ARE THE SOURCES OF PROCURING ORDERS FROM YOURPRESENT AND POTENTIAL CUSTOMERS?

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0%10%20%30%40%50%

60%70%80%90%

ONLINEBOOKING

DIRECTLYIN STORE

PHONEBOOKING


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SIDBI

This is a facility specially designed under the Credit Guarantee

Fund Trust for Micro and Small Enterprises (CGTMSE) scheme

of SIDBI and Ministry of Small and Medium Enterprises.

Facilities offered Cash Credit for meeting working capital finance requirement

Term Loan for purchase of commercial assets & business expansion

needs


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STATE BANK OF TRAVANCORE

loan amount-25000 to 10lakhs Disposing limit- for 25000 in 2 weeks and for 5 lakhs and

above in 4 weeks

No collateral till 5 lakhs but it is required if taken above 5lakhs upto 25 lakhs

Collateral security- no collateral security till 25000 Guarantee-one guarantor is required

The Bank has registered as Member Lending Institutionwith Credit Guarantee Fund Trust Scheme for SmallIndustries (CGTSI) launched by SIDBI

It provides guarantee cover of 75 % of the amount ofdefault, in respect of facilities upto Rs 10 lakhs

Interest rates charged- 10% to 15%

Margin- above 25000 (20% of term loan)


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CONDITIONS BEFORE SANCTIONING THE LOAN

BY THE BANK

Seriousness for the business

Creditability of the business plan Various condition of MSME under section 25

should be fulfilled Should have a past experience in the same

category or have a business background ofany other

Fresher-previous bank record ,legal record Location of the desired bakery shop

Estimation of the revenue that could begenerated at the desired location


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DOCUMENTS REQUIRED

Photograph of borrower / guarantor

Income tax return for last 2 yrs

Audited / Unaudited trading , profit & loss , balance sheet for last 2 yrs

Projected financial statement for ensuring year

Registration certificate under shop/ establishment act, trade tax act

Bank statement of last 6 months

Proof of business address/residential address/continuity in business


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REQUIREMENTS TO START A BUSINESS

LAND approx 5000 sq ft for

LABOUR

RAW MATERIAL INFRASTRUCTURE

PROPER LOCATION

As per SIDBI , if one outlet of bakery has tobe opened in campus then it would require acapital of Rs. 25 30 lacks approx

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PROSPECTS

Increasing dependence on bakery products.

Use of sophisticated and modern machineries whichincreases bakery efficiency.

High quality packaging material increases shelf life of

product.

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CONCLUSION

Due to changing consumption pattern there is lot of scopefor bakery industry.

Due to modernization , westernization and industrializationdemand for bakery has increased.

Good opportunity to emerge as a national brand.

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bakery final

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