PROJECT PROFILE ON BISCUIT INDUSTRY

1. Name of the Project: BISCUIT INDUSTRY

2. Location within State/Country: ODISHA

3. Nearest Road, Rail & Sea connection:

4. Estimated Capital Cost of the Project: Rs. 1,50,80,000

5. Raw Material: FOOD, SUGAR, BAKERY

6. Environment Impact: The project is an Environment Friendly Activity. There will be

no Ecological imbalance and Pollution hazards to the Localities because of the Project.

7. Time-frame for selection & completion

Of selection of Project: period of 12
months.

8. Government Incentive package applicable

To the Project: Capital Investment, Power, Interest, Transport,
subsidies, etc.
 PLANT & MACHINERY

Machinery to be used are as follows:

• 1. Flour mixer
• 2. Rotary forming machine for hard Biscuit
• 3. Rotary forming machine for soft Biscuit
• 4. Tunnel Gas Oven
• 5. Oil Spray machine
• 6. Cooling conveyor
• 7. Layout Turning Machine
• 8. Sandwich machine
• 9. Packaging

MARKETING CHANNELS
The marketing channels plays important role in the distribution of the products to reach the
potential customers. The selection of the marketing channels is also important .so choose my
marketing channels as follows as

• Wholesaler & Distributor:

These People working as a company partner because they are giving place
our product.

• Wholesaler & Retailer:

The registration with the trading companies like India mart will also be the
marketing channel

The factor influenced to choose the plant layout are as

follow as:
1. Availability of Raw materials:
2. Availability of Skilful labours:
3. Good Transportation facilities:
4. Availability of the Water and Power supply:
FINANCE:
Supply of finance is very important factor in the establishment of an enterprise is old. Finance
is the life line of the Business. Finance deal with the arrangement of the sufficient capital for
the smooth run of the Organization. Following are the certain sources of the finance scheme:
A) Own
Capital:
33.33% of the project cost will be financed by the promoter himself.

B) Term Loan from the Commercial

Bank:
Rs. 1,00, 00,000 at the rate of interest 13.75%
 Cost of the Project

Sr No. Particulars Amount

1 Building 25,00,000
2 Plant and Machinery 80,00,000
3 Furniture and Misc. 2,00,000
4 Land 2,00,000
5 Preliminary and preoperative exp. 80,000
6 Working capital (3 months) 41,00,000
Total 1,50,80,000

Total Fixed Capital:

Sr no. Particulars Amount
1 Building 25,00,000
2 Plant and Machinery 80,00,000
3 Furniture and Misc. 1,50,000
4 Land Development 2,00,000
5 Preliminary and preoperative exp. 80,000
Total 10930000

Building:
Sr no. Particulars Cost of the item Amount
1 Corporate Office 4,20,000 5,20,000
2 Show Room 3,50,000 3,50,000
3 Work Shop 8,00,000 9,50,000
4 Toilet 1,00,000 130,000
5 Store room 5,50,000 5,50,000
Total 2500000
 Plant and Machinery:
Sl. no. Particular Quantity Amount
1 Hydraulic Hot press 01 50,05,000
2 Steam Boiler 01 13,10,000
3 Chimney with 01 4,90,000
Ladder
4 Air-pre Heater 01 2,88,000
5 Dust controller 01 2,07,000
6 Pressure 01 3,90,000
reducing
station
7 Glue Machine 01 3,10,000
Total 8000000

Furniture and Miscellaneous Expenses:

Sr no. Particulars Quantity Amount
1 Furniture

Office chairs 8 20,000

Almirah 8 40,000
Racks 20 50,000
Tables 2 5,000
Computer and Accessories 1 35,000
Fans 8 10,000
Sofa set 1 20,000
2 Work shed ----------- 20,000
Total 200000

Land
Sr no. Particular Price/acre Amount
1 Land Area (2 acre) Own
Development 1,00,000 2,00,000
 Preliminary and Preoperative Expenses:
Sr no. Particular Amount
1 Deposit for Power, Water, Telephone 20,000
2 Loan Application process fees 10,000
3 Deposit for internet 5,000
4 Legal Stamp Duty and Registration 20,000
5 Travelling 13,000
6 Consultancy 12,000
Total 80000

Depreciation (per annum):

Sr no. Types of Assets Cost of Assets Rate of Amount
Depr.
1 Plant and Machinery 80,00,000 10% 8,00,000
2 Furniture 2,00,000 20% 40,000
3 Building 25,00,000 5% 1,25,000
Total 9,55,000

Working Capital Requirement:

Sr no. Particular 1 Month 3 Month
1 Raw Material 11,51,000 34,53,000
2 Salary and Wages 1,25,000 3,75,000
3 Power and Fuel 24,000 72,000
4 Other 12,000 36,000
Manufacturing
Expenses
5 Selling and 17,000 51,000
Office
expenses
Total 39,87,000
Raw Material:
Sr no. Particulars No. of Price/tons Cost/month Cost /year
Tons/month (Rs)
1 Food 140 5000 7,00,000 84,00,000
2 Sugar 70 4000 2,80,000 33,60,000
3 Bakery 25 6800 1,71,000 20,52,000
Total 11,51,000 1,38,12,000

Salary and Wages:

Sr no. Name of the No. of Salary /head Salary / Salary /year
month
Post member
1 Manager 1 14,000 14,000 1,68,000
2 Accountant 1 9,000 9,000 1,08,000
3 Office staff 3 4,000 12,000 1,44,000
4 Chemist 1 4,500 4,500 54,000
5 Supervisor 1 6,000 6,000 72,000
6 Machine 1 5,500 5,500 66,000
Operator
7 Skilled labour 7 3000 21,000 2,52,000
8 Unskilled 10 3000 30,000 3,60,000
labour
9 Women 3 3000 9,000 1,08,000
mazdoor
10 Mechanic 4 3500 14,000 1,68,000
cum
Electrician
Total 32 1,25,000 15,00,000
Power and Fuels:
Sr no. Particulars Per month Per Annum
1 Fuel 8,000 96,000
2 Power 16,000 1,92,000
Total 24,000 2,88,000

Other Manufacturing Expenses:

Sr no. Particulars Per month Per annum
1 Repairing of 8,000 96,000
the
Machine
2 Packaging Material 4,000 48,000
Total 12,000 1,44,000

Office Selling, Distribution Expenses:

Sr no. Particulars Per month Per annum
1 Transportation 2,500 30,000
2 Telephone and 1,500 18,000
internet
bills
3 Postage 13,000 1,56,000
and
Stationeries
Total 17,000 2,04,000
 Cost of the Production:
Sr no. Particulars Per month Per annum
1 Raw Material 11,51,000 1,38,12,000
2 Salary and Wages 1,25,000 15,00,000
3 Other 12,000 1,44,000
Manufacturing
Expenses
4 Consumables 20,000 2,40,000
5 Repairing of machines 15,000 1,80,000
Total 13,23,000 1,58,76,000

Profitability
Sr no. Particulars Per month Per annum
1 Sales 18,35,274 2,20,23,288
2 Less: Cost of Production 13,23,000 1,58,76,000
3 Gross Profit 5,12,274 61,47,288
4 Less: Office, selling, distribution 17,000 204000
exp.
5 Less: Interest on loan 1,12,500 1350000
13.75% bank
Net Profit 382774 4593288
Cash Flow Statement

Particular Rs
Operation Activity
Wages and salary 1500000
Repair & machine 180000
Manufacturing Expenses 144000
Selling & Distribution 204000
Total 2028000
Add Investment activity
Building 2500000
Plant & machinery 8000000
Furniture 200000
Land 200000
Total 10900000
Add Financial activity
Loan 10000000

Total cash flow income 22928000

 PROFIT & LOSS ACCOUNT

Capacity Utilization 85% 85% 79% 79% 79%

1st year nd
2 year rd
3 year th
4 year 5th year
A Sales 22023288 ear2016-17 26,648,177
24,225,616 26,648,177 26,648,177
B Cost of Production
Raw Material 1,38,12,000 15,048,000 16,552,800 16,552,800 16,552,800
Power 2,88,000 2,88,000 2,88,000 2,88,000 2,88,000
Wages and Salaries
15,00,000 15,00,000 15,00,000 15,00,000 15,00,000
Factory Overhead
120,000 120,000 120,000 120,000 120,000
C Administration and Selling 2,04,000 204,000 204,000 204,000 204,000
Exp.

D Gross Profit Before Interest

6,30,3288 7,065,616 7,983,377 7,983,377 7,983,377
E Total Financial Expenses
Interest on Term Loan
1,350,000 1,237,500 1,100,000 962,500 825,000
F Operating Profit
4,953,288 5,828,116 6,883,377 7,020,877 7,158,377
G Preliminary Exp.

H Profit and Loss Before Tax

4,953,288 5,828,116 6,883,377 7,020,877 7,158,377
I Provision for Tax
732,193 874,224 1,032,507 1,032,507 1,032,507

Net Profit
4,22,1095 4,953,892 5,850,870 5,988,370 6,125,870
 BALANCE SHEET

At the End of 1st year 2nd year 3rd year 4th year 5th year
Construction
Period
Liabilities
Owner's Fund 6,250,000
6,250,000 6,250,000 6,250,000 6,250,000 6,250,000
Reserve and surplus
4,22,1095 4,953,892 5,850,870 5,988,370 6,125,870
Secured Loan
Term Laon 9,000,000
10,000,000 10,000,000 8,000,000 7,000,000 6,000,000
Working capital adv. 2,124,000
2,124,000 2,124,000 2,124,000 2,124,000
Current Liabilities and
Provision
Trade Credit 3,059,108
1,495,905 4,666,930 5,529,430 6,391,930
Creditors
Total 25,387,000
16,250,000 24,019,000 26,891,800 26,891,800 26,891,800

Assets

Fixed Assets
10,930,000 9,97,5000 9,97,5000 9,97,5000 9,97,5000 9,97,5000
Current Assets , Loans And
Advances
Raw Material 15,048,000
13,812,000 16,552,800 16,552,800 16,552,800
Cash and Bank Balance 5,240,000
Debtors 1,52,000 284000 284000 284000 284000
Miscellaneous Expenditure
and losses
preliminary Exp. 80,000
80,000 80,000 80,000 80,000 80,000

Total
16,250,000 24,019,000 25387000 26,891,800 26,891,800 26,891,800