Project Profile

PRODUCT

FAMILY LOAF

PREPARED BY SUPERDAY GROUP MANAGEMENT CONSULTING JAGAL ROAD 08090801744 EMAIL _SUPERDAYGROUP@YAHOO.COM

PROJECT PROFILE ON ULTIMATE LOAVES EXECUTIVE SUMMARY : superday group loaves shall be a loaf produced under highly hygienic condition , the intention was to complete with the existing loaves in Nigeria and to become the peoples choice in the nation . Our loaves are intended to have an edge over other loaves in Nigeria in terms of taste and flavor, quantity and quality. The unique intension is to create a loaf that is widely acceptable by people with good taste and avoidable price to complete with the existing loaves in Nigeria. Our loaf shall be of good weight, attractive colour , white loaf that can be consumed in all homes , schools, churches etc in Nigeria. Operationally, we shall make the most profit and deliver value for all the stake holders, we shall do good to all our staffs and our distributors shall be our king all the time , creating an avenue where we can listening to them and follow the useful part of their advice . We shall be friendly to our hosting community and we shall be eco-friendly too.
Bread and bakery products are dietary staples in Nigeria and are consumed by the vast majority of the population. We can divide the bread market into four principal categories: white, brown and whole-meal, specialty breads and bakery products. White is the most popular type of bread, though consumers now spend more money on specialty breads. This is because there is more variety in the segment and the ethnic quality of the sector increases its value. Whole-meal and brown bread is the fastest-growing sector, as consumers seek healthier options. Foreign bakery products, especially croissants and bagels, are gaining importance in the market as part of the breakfast treat trend. The economic crisis is affecting consumer behaviour in the bread and bakery products industry. Squeezed budgets and financial uncertainty have resulted in the dining-in and lunchbox trends. With consumers choosing to stay at home in order to save money, manufacturers are enabling them to reconstruct the restaurant experience at home by introducing meal kits and accompaniments, bread included. In addition, the number of those bringing packed lunches to work to save money is rising. As a result, manufacturers are increasing variety in flavour and format for the occasion. This is to prevent consumers lunch experiences from becoming repetitive and mundane reason for targeting an exciting bread product. The primary reason behind growing household expenditure on bread and bakery products is rising input costs. Poor harvests, depleting global stockpiles and the economic and Eurozone crises are driving up commodity prices, including wheat. The presidency just lunched cassava bread as composite bread, our business in future would also look at that portion of the market. The continued increase has inevitably driven up retail prices. Thus, while consumers are spending more on bread,

this does not mean that they are buying more bread. On the contrary, consumption of bread and bakery products has declined in terms of average grams consumed per person per week. Consumers are cutting back their spending and the rising awareness of the amount of bread that is wasted in Nigeria has resulted in many trying to buy only what is essential. Half loaves have facilitated this phenomenon therefore we shall also introduce our half loaf within few month of production of the bigger loaf. Superday group anticipates that Nigerian household expenditure on bread and bakery products will continue to rise over the next 5 years. The price of wheat, the demand for half-and-half, brown/wholemeal and specialty breads, foreign bakery goods and healthier options (especially gluten-free products), as well as part-baked bread, will drive sales. We also believe that interactive campaigns and innovation will maintain dynamism in the industry. However, manufacturers value and volume sales will remain squeezed by intense competition, promotional activity and rising input costs.

II. MARKET POTENTIAL :Nigeria has the population of about 160 millions with Lagos state our hosting state contain about 20 million people .The country consumes about 180 billion tones loaves yearly ,nearly all street and all house has a bread at every particular time , government also is interested in this staple food reason for the introduction of cassava bread . The introduction of butter and milk flavor into ultimate loaves would make it competitive in the market; we intend to produce bread that can be eaten by everybody with everything and at all time in all places of the country. We shall also introduce van sales of our product, direct sales and distributor system of sales, we shall mass produce ultimate loaves and distribute to all outlets in Lagos and its environ with the major factory in Lagos III. BASIS AND PRESUMPTIONS: The proposed factory will produce white loafs & wheat loaves of 6,000 white loaves per day on double shift of 12 hours with 45 staff using 20 per shift having 300 working days in the year .. The production capacity of plant and machinery would be 60 % in the first year, 70 % in second year and 80 % in the subsequently years and onward respectively. The value of land and construction cost have been taken an average basis, it varies from time to time and place to place. The cost of machinery and equipments, labour, raw materials and other contingents are mentioned have been calculated at the time preparation of this project profile and it varies from place to place and time to time. The annual expenses such as Salary, wages and others contingent expenses have been taken for 12 months. The salary and wages proposed in this profile are applicable as per State Govt. labour law. The normal operative period is estimated to be more than 10-15 years life considering the technology in this industry.

The sales prices have been assumed at prevailing market rate, however, are considered at exfactory price.

IV. IMPLEMENTATION SCHEDULE: Activity Starting Market survey for collection of data in respect of demand, raw material, including power, fuel, availability of technology, pollution control, NAFDAC registration and other registrations .. Selection of site & development land Identification / selection of machinery and equipments and order for manufacturing from OEM and supply. Construction of the factory , work/ equipment flow Product development , purchase of other brand loaves , conclusion on the size of the loaves , weight , and dimension of the bread Allocation of baking pan construction, trolley construction and bread bag production to the contractors. Equipment arrangement. Selection and supply of raw material Production / market sampling /branding activities Development of market strategy Finalize pricing strategy Premium/ skimming, penetrative, mark up etc Dealer/distributor margins Bulk selling discounts Credit periods Distribution strategy : Select channels of distribution Transportation Point of Sales Materials ( POSM) Display racks, stand etc. Period To Completion Responsibility who

Transportation and installation of machinery identification and electrification.

Trail production. V.TECHNICAL ASPECTS: [1] Process of Manufacture : All ingredients are properly weighed and the flour and magarine is firstly mixed dry before adding other ingredients and then water , two bread is added as roll back to control waste , The content is bailed out after mixing for 13 minutes , this is then scaled and then divided using a divider and the product is manually transferred to the hopper of the moulding machine and this is moulded into the required shape .The bread is ready for proofing .proofing takes two hours after which the bread is baked for 30 minutes , depaning occurs almost immediately after baking and the product is cooled then sliced for dispatch Process flow chart
Weigh all ingredients Scale dough Mix all ingredient in Macadams mixer Ball out dough the

Divide dough

Mould dough

Proof dough

Bake dough

Depan the bread

Cool and sliced for dispatch

2. QUALITY CONTROL AND STANDARDS : The hygiene policy must be maintained all the time all factory short interval control must be religiously followed, clean as you work standard must be followed, good manufacturing technique must be followed all the time , we shall never compromise quality . 3. PRODUCTION CAPACITY (PER ANNUM for 120 capacity oven ) Quality (Nos.) : 19 batches per shift , 38 batches per day of two shift , 4560 loaves per day Value : 4560*150 =N684,000:00k per day :684000*7=4,788,000 in a week :4788000*4=19,152,000 in a month 5. POLLUTION CONTROL : a mini EFLUENT TREATMENT PLANT is to be constructed in future to control environmental pollution .waste disposing unit to be constructed with net . 5. WATER SUPPLY :in future a mining water treatment plant is to be constructed in the factory . 7. ENERGY CONSERVATION The following steps may be taken for the conservation of energy, which are as given below : Machinery and equipments parts which are revolving and reciprocating should be lubricated properly from time to time with suitable lubricants. Layout of the unit should be in such a way that no back tracking of raw material to finished products during the working. All electric switches may be kept off, when electricity is not required. The entire transmission belt should be tightened before starting the work, wherever, applicable.

Fluorescent tube with electronic chocks may be used for saving the energy. The self ballasted fluorescent lamps are high efficiency replacements for ordinary bulbs. Load of motor will be reduced and high power factor will be used with the aid of capacitors of appropriate sizes.

VI. FINANCIAL ASPECTS [i] FIXED CAPITAL

1. Land & building Particulars i. Land : ii. Building : a. Office. b. Store for materials. c. Bore hole . d. Septic tank raw Area Acre Rate (N.) Amount [N.]

e. Vehicle shed for customer , Cloak room for staff .

Total

10,000,000

(ii) MACHINERY & EQUIPMENTS : SN Description .

a. PRODUCTION UNIT :-

Qty. [Nos.]

Rate (N.)

Price [N.]

A B C D E F

Dough motor)

mixer (run by 20 HP

1 UNIT

*1,850,000

1,850,000.00

150kg ,scale 50 kg scale Dough Divider . Dough moulder Prover

Oven. Cooling trolleys Baking trolleys Water chiller (200lt)

1 UNIT 1unit 1 unit 1 unit 1 unit 1 unit 10 unit 5 unit 1unit

150,000 100,000 *1,850,000 *1,200,000 900,000 *3,500,000 70,000 60,000 *900,000

150,000.00 100,000.00 1,850,000.00 1,200,000.00 900,000.00 3,500,000.00 700,000.00 300,000.00 900,000.00

g h. i J

K L M

Slicing machine various tool, scale gauges, fixtures, racks and other equipments. 4 Work tops . Cost of office equipments/furniture like computer, cash box, tables, chairs, Elmira, jar, cooler, racks etc.

1 unit

450,000 200,000 200,000

450,000.00 200,000.00 200,000.00

Total (a to m)
(iii) Pre-operative Expenses Total fixed capital [i +ii+iii] : = 27,300,000 [B] WORKING CAPITAL [Per Month] (i) Staff and Labour (per moth): S.No. Description Nos. 02 Production Manager Supervisor 03 04 04 05 Cashier-Cum-Clerk Operatives Cleaners /guards Sales rep .

12,300,000
= 5,000,000 = 10,000,000+12,300,000+5,000000

1 2 1 40 2 3

Salary *400,000 *200,000 * 35,000 *25,000 *15,000 *35,000 Total

Total Salary (N)

400,000.00 400,000.00 35,000.00 1,000,000.00 30,000.00 105,000.00 1,970,000.00

*=subject to change (ii) Raw Material [Per Month] : Sr.No. 01 02 03 04 05 06 07 08 09 Description Flour Sugar Salt Margarine Bread fibers Sealing tapes Flavor Yeast Bread improver Total Qty.[month] 1255 123 31 123 127680 100 100 123 Rate [month ] 7000 9000 2500 3500 .55 300 3000 3500 4000 Total = Value [N]
8,785,000.00 1,107,000.00 77,500.00 430,500.00 70,224.00 30,000.00 300,000.00 430,500.00 11,230,724.00

(iii) Utilities [Per Month] : Sr.No. Particulars 01 Power 02 Water 03 Diesel 04 PMS Total

Value [N] 200,000 30,000 200,000 10,000 440,000

[iv] Other Contingent Expenses . Sr.No. Particulars 01 Postage and stationery 02 Telephone 03 Consumable stores 04 Repair & maintenance 05 Transport Charges 06 Advertisement and publicity 07 Sales expenses 08 Traveling expenses 09 Taxes 10 Insurance 11 Misc. expenditure Total (v) (vi) Total Recurring Expenditure (per month) (i+ii+iii+iv) = 1,970,000.00 +55,000+440,000+11,230,724.00 =13,695,734 Total Working Capital (for 3 months) = 13,695,734

Value [N] 10,000 10,000 5,000 10,000 10,000 10,000

55,000

C. TOTAL CAPITAL INVESTMENT: Sr. No. Particulars 01 Fixed capital 02 Working Capital Total VII. FINANCIAL ANALYSIS : [1] Cost of production (per year) : 01 Total recurring cost per year 02 Depreciation on Building @ 5% 03 Depreciation on Machinery and Equipment @ 10% 04 Depreciation on moulds fixtures and Equipment @ 10% 06 Interest on capital investment @ 14 % p. a. 04 Depreciation on Office Equipments @ 20% Total [2] Turnover (per year) : Qty. Rate 1,542,240 N150(market entrance price ) 1,542,240 N160 (trade price ) [3]

Value [N] 27,300,000 13,695,734 40,995,734

N. 164,348,688 6,000,000 32,750,000

203,098,688

Value (N) 231,336,000 246,758,400

Net Profit (per year) : = Turn Over Production Cost = 231,336,000-203,098,688 or (246,758,400-203,098,688) = 28,237,312.00 or 43,659,712.00

[4]

Net Profit Ration:

= Net Profit X 100 Total Turnover

= = [5] Rate of Return : = =

28237312*100/231,336,000 12.2 Net Profit (per year)X100 Total Investment 28237312*100/40,995,734

= 68.9%

[2] B.E.P. Fixed cost X 100 = Fixed cost + Profit

27,300,000 X 100 = 49.1% 27,300,000+ 28,237,312.00

Prepared by:ADEOSUN ADELEKE GBEMIGA (SUPERDAY GROUP )

10