PROFILE

ON
SWEETS & BAKERY

LOCATION

Main Road, Near Bus Stand, Rajam, Srikakulam Dist.

 TABLE OF CONTENTS

S.NO PARTICULARS

01. BRIEF ABOUT THE BUSINESS

02. HISTORY
03. SCOPE OF THE PROJECT

04. CONSTITUTION AND SECTOR

05. BACKGROUND OF THE PARTNERS

06. LOCATION AND ITS ADVANTAGES

07. PROJECT COST & MEANS OF FINACNE

08. DETAILED NOTES ON ESTIMATED PROJECT COST

09. DETAILED NOTES ON MEANS OF FINANCE

10. SWOT ANALYSIS

11. ASSUMPTIONS
 PROJECT AT A GLANCE

1. Name of the Unit. : M/s. CHERRY BAKERY AND SWEETS

2. Regd. Office. : MAIN ROAD, NEAR BUS STAND, RAJAM,
SRIKAKULAM DIST.
3. Works. : MAIN ROAD, NEAR BUS STAND, RAJAM,
SRIKAKULAM DIST.
4. Line of Activity. : BAKERY & SWEETS SHOP
5. Sector. : Micro Scale
6. Constitution. : Proprietary
7. Promoter : Mr. K. Balaji Gupta

8. Project Cost & Means of Finance. :

(Rs in Lacs)
PROJECT COST AMOUNT MEANS OF FINANCE AMOUNT

Land & Buildings Lease Promoter Contribution:

Interiors 10.00 Capital 1.50

Equipments 5.00 Term Loan 14.25

Working Capital 10.00 Working Capital Loan 9.50

TOTAL 25.00 TOTAL 25.00

9. Promoters Contribution. : 5.00%

Limits required :
Term loan : Rs. 14.25 lacs
Working Capital Loan : Rs. 9.50 Lacs
Total : Rs. 23.75 Lacs
 BRIEF ABOUT BUSINESS
“Cheery Bakery and Sweets” has a complete range of over 150 delicacies to suit any

taste. You can now choose from an assortment of delicious sweets ranging from traditional

delights to novel and unique tastes, the essence of our products is inspired by 19 th century

royal banquets.

Our saltish range is one of the best and once can have it with cup of tea, coffee or a

refreshing drink. An ideal snack prepared in natural oil to invigorate and provide you with

utmost fulfilment. Our snacks range consists of Chips, Dal Masoor, Somasay, Sawaian, Puffs.

Cheery Bakery and Sweets products in over 80 different types of choice.

Besides traditional taste to give you the flexibility and choice in selecting the packaging that

suits your mood, taste and theme.

 HISTORY
The foundation of CHERRY BAKERY AND SWEETS laid in Rajam, Srikakulam Dist.,

Andhra Pradesh, with the commitment to provide people with delectable quality delights.

The great journey started a small shop in the inner city of Rajam, Srikakulam Dist.. The

passion for quality, distinctiveness and hard work set by our founder is the spirit we seek as

our guiding principle.

VISION
Our vision is to make a brand recognizable for its unique ness and quality if the

ethnic Sweets & Bakery market all around Rajam, Srikakulam Dist.. In this perspective we

consider our self as an innovative and a pioneer, continuously offering unique products and

interesting service concepts that others haven’t even dreamt of.

 SCOPE OF THE PROJECT

Successful running Unit at Rajam, Srikakulam Dist. District for Sweets

& bakery. The Unit is promoted by Mr. K. Balaji Gupta. The Unit is

taken leased building at Rajam, Srikakulam Dist.. The total project

out lay is Rs.25.00 Lacs. The installed capacity of the proposed Unit is

500KGs per day in two shift operations in 365 working days and the

total annual Capacity of the proposed Unit is 182.5MTS. The

operating capacity is assumed at 65%, 75%, & 85% in 1st, 2nd & 3rd

year onwards.

CONSTITUTION & SECTOR

CONSTITUTION:

A Proprietary unit by name and style as “CHERRY BAKERY AND

SWEETS”. The line of activity is to Sweets & Bakery. The Firm is
proposed at Rajam, Srikakulam Dist. District and Andhra Pradesh.
The Firm is a Proprietary Concern

Mr. K. Balaji Gupta

SECTOR:

The Firm comes under Micro Scale Sector and also under Priority

Sector. The Firm has already applied for Registration Certificate

from the District Industries Centre, Rajam, Srikakulam Dist..

LICENCES AND APPROVALS:

The Firm will obtain the following licenses and approval s.

1. SSI Registration.

2 GST

3 FSSAI

BACKGROUND OF PROMOTER
Mr. K Balaji Gupta aged 43 years, residing at Saradi Village, Rajam, Srikakulam Dist. -

16. He was started the business at the young age of just 24 years. Mr. Balaji Gupta

courageously took about the challenge of growing the business. With a dynamic approach

He is willing kept adding 2 more shops across Rajam, Srikakulam Dist. He is having over 14

years’ experience in this line of activity. He is the Sole proprietor. He is financially sound

besides possessing good leadership qualities and vast experience in business dealing and

solving labour problems. With his experience and influence he plays a key role in making this

successful project.

NAME OF THE PROPRIETOR: Mr. KORADA BALAJI GUPTA

D. O. B : 15-05-1975

PAN : AGYPK3714R

CELL : +91- 9441113925

 LOCATION AND ITS ADVANTAGES:
 LAND:

The Proprietor has already taken shop for lease at Main Road, Near Bus
Stand, Rajam, Srikakulam Dist. , Rajam, Srikakulam Dist. District. The
following are the advantages in starting the firm in this location.

 REASONS FOR THE SELECTION OF THE SITE:

1. Availability of labour at economically.

2. Adequate supply of electricity power.

3. Adequate supply of water throughout the year.

4. The site is well connected with road facility.

5. Banking facilities and Government supports.

6. Adequate Transport facilities for economical transportation of finished

product and Raw materials.

7. Nearest to the Market.

8. Land is being situated in Urban area.

9. Accessibility to Rajam, Srikakulam Dist., Vizianagaram, Srikakulam

Market within 30 km.
10. 2.5 km from NH 5 for easy transportation of goods and 1 km from
Railway Station.
 RAW MATERIALS

Required raw materials for manufacturing of Bakery Products

are The Primary Raw Material For Bread are Flour, Yeast, Salt,

Water So without these material no bread can be Made in

General the quality improvements are a better taste an

increased softness a bigger volume a better. The Secondary Raw

material Fats, improvers including emulsifiers, Sugar, Milk

Products,Malt Products But you have to realize that if you are

preparing raisins are also Primary Raw Material. And if you are

preparing a milk loave, Milk powder is also a Primary Raw

material in open market. There is no problem anticipated

regarding the availability of raw materials.

 MANUFACTURING PROCESS

The process of manufacturing Bakery Products processes, as

explained below.
 MARKETING STRATEGY

Industry Analysis:

Sweets & Bakery is in our culture for centuries. It is our cultural heritage; people of

our region have different taste is sweets as compared to west. The western people eat

chocolate as sweets but in our region sweets are mithai. So in every town every city of India

these sweet shops are seen. Rajam, Srikakulam Dist. and the people of Rajam, Srikakulam

Dist. are known for their tastes and eating habits so there are many small scale sweet shops

in almost every area. Cheery Bakery and Sweets has also started as a small shop in Main

Road, Near Bus Stand, Rajam, Srikakulam Dist. but with changing market conditions with

increase in purchase power of customer and their everyday changing taste buds Cheery

Bakery and Sweets has also improved. Although the tastes of customers in many other

dishes are changing people now a days are eating fast foods and like Chinese and western

dishes rather than our typical western or Indian dishes, like we have seen many western

dishes in our wedding occasions which shows the changing consumer needs. But this trend is

not in sweets industry the habit of eating sweets is very much in like centuries before. It is

the most essential component of wedding no wedding, no ceremony or other occasion of

celebration is complete without sweets, with the ever increasing purchasing power people

are purchasing sweets in bulk form. Although the industry of sweets is century old but it is

not fading with the time it is getting rich day by day.

Market Vision, Structure and Analysis:

Sweets industry in india is growing. Mithai is used in indian on weddings, celebrations

and other happy occasions. There are many sweet shops in India only. Cheery Bakery and

Sweets is in this industry for many decades they been serving this industry effectively.
 PROJECT COST & MEANS OF FINANCE

PARTICULARS AMOUNT PARTICULARS AMOUNT

Land & Buildings Lease Promoter Contribution:

Interiors 10.00 Capital 1.50

Equipments 5.00 Term Loan 14.25

Working Capital 10.00 Working Capital Loan 9.50

TOTAL 25.00 TOTAL 25.00

Means of Finance:

Capital : 1.25
Limits Required
Term Loan : 14.25
WC Loan : 09.50
Total : 23.75
Promoters Contribution : 5.00%
 DETAILED NOTES ON PROJECT COST

Land & Buildings:

The promoter has already taken buildings for lease Rajam,

Srikakulam Dist. which is quite suitable to run the firm

Interiors: The promoter has already approached and do some

necessary changes to Interiors for the bakery worth of

Rs.10.00 lacs

Equipment’s & Others:

The following Equipment worth of Rs. 5.00 lacs are required to

run the Firm. The Promoter is already approached reputed
suppliers, and obtained quotations and enclosed the same for
your reference.

S. Description Qty Amount

No

1 Flour Shifter 1 Rs. 5.00

lacs
2 Sugar Grinder 1

3 Planetary Cream 2
Mixer

4 Spiral Mixer 1
5 Bread Slicer & 2
Sealer

6 Baking Oven 1

7 Baking Trays 100

8 Baking Moulds 300

9 Stainless Steel 4
Pans

10 Spares 1 LOT

11 Generator 1 Nos
 10. DETAILED NOTES ON MEANS OF FINANCE

CAPITAL:
The promoter’s capital was fixed at Rs.1.25 Lacs which will
be contributed by the promoter and it will works out 5.00 %
of the project cost of Rs.25.00 Lacs.

Term Loan:
The unit desires to avail Term Loan of Rs. 14.25 Lacs. from Bank/Financial Institute
to meet part cost of the project cost, which works out to 57.00 % of the total project
cost of Rs. 25.00 Lacs. The amount would be repayable in 28 quarterly installments
of Rs. 0.51 Lacs each with a moratorium of nine months from the date of
commencement of Commercial Production. However, the interest on the term loan
would be payable as and when it is applied on the account. The detail of the
repayment programmed is placed in this report.

Working Capital:
The unit desires to avail Working Capital Loan of Rs. 9.50
Lacs from Bank to meet the day to day requirements.
 SWOT ANALYSIS

STRENGTHS:
 Strong base for the Bakery Products
 Due to mass production the cost is reduced and it helps maintain the financials on
smooth flow.
 It has their own steup/ it is the family business resulting into independent decision
making.
 It enjoys approximately good market share, which is greater than any other shops in
this business

WEAKNESS:

 Cannot take small order with reference to home delivery.

 Cheery Bakery and Sweets still don’t have dedicated structure of management.
 They have not promoted their Shops even people are not aware; where the shops are
located and to whom it belongs

OPPURTUNITIES:

 Being one of the best sweets and bakeries in Rajam, Srikakulam Dist..
 The Bakery and Sweet shops is far ahead from the competitors.
 It is going into diversification by establishing shops which will improve their business
turnover and profitability.

THREATS:

 Primary competitors is sweet & bakery business like Bakers World, Fresh Choice in
addition of their growing branches.
 Products of other bakeries and Mithai shops are cheap.
 Taxation in advertisement is increasing the marketing cost hence, reducing the
profits.
 Strong and established competition.
 ASSUMPTIONS UNDERLYING PROJECTIONS FOR COST OF PRODUCTION
AND PROFITABILITY STATEMENT

Installed Capacity:

Installed Capacity per hour:

S. No Description No’s

1 Cakes 87

2 Bread 60

3 Biscuits 22

No. of Shifts per day : 1

No. of Hours per shift : 8 Hours

Installed Capacity:

S. No Description No’s No. of Total

hours Installed
per day Capacity
per annum
1 Cakes 87 8 208800

2 Bread 60 8 144000

3 Biscuits 22 8 52800

Operating Capacity:

Operating Capacity is assumed as under:

Year 2019-20 2020-21 2019-20

Utlilization % 65% 75% 85%

Cakes 135720 156600 177480

Bread 93600 108000 122400

Biscuits 34320 39600 44880

 Cost of Raw Materials:

Raw materials Requirement Description @ 2% loss:

S. No Description Amount

1 Wheat

2 Milk Products

3 Salt

4 Sugar Rs. 35.50 Lacs

5 Additive Fats and Oils

6 Maida

6 Misc.

Stores & Spares:

Stores and Spares are estimated as 5 % on Machinery of

Rs.0.75 Lacs in a year.

Power & Fuel:

Power and Fuel is estimated as

5x8x300x0.746x0.65*0.80x.6.50= 30,260 Per annum

Wages:

Wages are calculated as under

Skilled Workers 2 Nos. x Rs.8000/- Per Month= 16,000

Unskilled Workers 2 Nos. x Rs.6,000/- Per Month = 12,000

or say : 3,36 lacs

 Repairs and Maintenance:

Repairs and Maintenance are estimated as 5% on Machinery

of Rs.50000 /- P.A.

Administrative Expenses:

Administrative Expenses are estimated as 5% on Sales of

Rs. 88452 per annum.

It includes telephone, sadar, travelling expenses.

Sale Expenses:

Sale Expenses are estimated as 2 % on sales of Rs.

88,452.00

Cost of Sales:

Sales Revenue: Sales estimated as under:

S. Description Qty Unit Cost Amount

No

1 Cakes 135720 15.00 20,35,800.00

2 Biscuits 93600 20.00 18,72,000.00

3 Breads 34320 15.00 5,14,800.00

44,22,600.00

Or Say 44.22 Lacs