Cake & Filled Croissants Puffs Manufacturing Project

Cake & Filled Croissants Puffs Manufacturing Project. Make Profits in Bakery Industry. Start Your Own Baking Business

Bakery products includes bread, crackers and cookies, biscuits and rolls, cakes, croissants puff, cupcakes, bread and cracker products, pies, tarts, sweet rolls, coffeecakes, doughnuts, and frozen and refrigerated bakery products, such as cookies, bread and cake dough, and batter.

The Cake is a food which typically is used and known all over the world in the form of Sweet Desserts. Cakes were a modern modification of bread, typically in olden days bread are used in place of cake.

The global cake market is expected to witness a CAGR of 3.3%, during the period 2018-2023, and is expected to value at USD 75 billion, by 2023. Manufacturers are including healthy ingredients in their cake products in order to gain competitive advantage. The sale of large cakes have been on the decline, as customers are favoring of smaller ones.

The increasing popularity of customizable cakes is the driver for global cake market. With the rise of in-store bakeries and innovative product offerings from the small, regional, and international suppliers, the cake market is making its presence felt, globally. The recent trends of designer cakes and continuous innovations in cakes are likely to boost the market.

The global cake market is segmented based on flavors, product type, distribution channels, and geography. Decorated cakes and dessert cakes together account for the majority of the market demand for cakes, globally. The chocolate cakes are preferred to other flavors, and contribute the most to revenue generation. The market for cakes is highly fragmented, due to the presence of a large number of regional and international suppliers. The vendors compete for innovation, pricing, and distribution.

Urbanization and rising disposable incomes have resulted in greater purchasing power. The working population in big cities prefers on-the-go foods, such as pastries, cake snacks and sweet pies, among others. Globally, 54% of the population lives in urban areas, and this is expected to increase in the coming years.

Traditionally, croissants have been regarded as an upscale luxury food item, primarily accessible to consumers with extra spending money. The use of croissants as a sandwich carrier adds to its growth potential.

As breads and biscuits are fast-moving consumer goods (FMCG), they are consumed on a daily basis by the consumers which increases the sales of these products in India. In addition to this, growth in the fast-food chains further stimulates the demand for breads as they are used in sandwiches, burgers, soups, snacks, etc. Moreover, introduction of value-added bakery products is giving an impetus to the market growth. Apart from this, busy lifestyle, changing eating habits and western influence has reflected in a strong demand for bakery products in India.

Bakery Industry

Bakery industry is one of the oldest businesses in India, which is modernizing and is constantly changing in terms of product range and services. Bakery holds an important place in food processing industry and is a traditional activity. The bakery industry in India today has an important place in the industrial map of the country.

The bakery industry in India has witnessed an annual growth rate of more than 15 per cent during the past years. There is an immense growth potential in the global and domestic markets. As the bread industry is a low-margin business, cost control is crucial in sustaining profitability in the long run.

Indian bakery industry is one of the biggest sections in the processed food industry of the nation and has undergone a massive change majorly on account of changing perception of bakery products and evolving consumer tastes. Rising urbanization and growth in the disposable incomes of the Indian population has proven to be a magnet for international bakery chains owing to which the sector has seen an influx of foreign bakery companies foraying into India which has helped in improving the quality of Indian bakery products. Today there is a constant effort by the bakery players to innovate their product line to match up to Indian palate. Driven by evolving perception of bakery products in India, consumption boom in the nation and changing consumer preferences, we estimate the Indian bakery industry to touch levels of INR 483 billion in the next five years.

Global bakery products market is expected to witness significant growth over the next eight years owing to rising popularity of natural, healthy and organic baked products along with increasing consumption of bread China, the U.S., Mexico, and Brazil. Abundant availability of raw materials including sugar, flour, starch, meat, emulsifiers, dried fruit, flavorings, additives, preservatives, gluten, food acids, and vitamins will propel industry growth. Growing demand for various products including donuts, bread, cakes, pastries, and pies is expected to drive market growth. The increasing presence of convenience stores, supermarkets, retailers and food service providers will aid demand over the forecast period.

The exponential population growth, presently low per-person consumption, widespread promotional and advertising campaigns by multinationals, rapidly westernized lifestyles and reducing the time for preparation of drive demand in the region. Also, availability of better-quality ingredients such as chocolate, fillings, toppings and flavors and secondly, by international exposure to improve the quality of bakery products will stimulate growth over the next eight years.

Increasing preference for bread, rolls, cakes and pastries, pies, cookies, crackers, pretzels and tortillas is expected to augment demand over the forecast period. Bread will continue to remain the most widely consumed bakery product globally, whereas cakes and pastries will witness the fastest growth over the next eight years. The introduction of novel flavors, increasing penetration, indulgence factor and rising disposable income in Asia Pacific and Latin America will promote pastries demand over the forecast period.

Increased global urbanization has led to improved living standards and higher disposable incomes. However, hectic lifestyles have resulted in deteriorating health conditions and lifestyle disorders owing to unhealthy eating habits. In large cities, the working class demands more on-the-go foods such as rolls, sandwiches, and croissants. Hence, in-store bakeries and artisanal bakeries are often located around busy streets and near corporate parks and entertainment parks.

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Assumptions for Profitability workings	Plant Economics
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Overheads Required Per Month And Per Annum Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses
Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR