Bakery Project Start-Up Business Plan - PDF - Economic Growth - Breads

Search Read free for 30 days
· 10K views · 35 pages

 82% (90)
Bakery Project Start-Up Business

Plan
Uploaded by Abenet Ajeme

Table of Content I. Executive Summery
………………………………………….….. II. Background Information
……………………………...………… III. Market
Related titles
Analysis..……………………………………………..…. IV. Production Plan
&Technical Analys… Full description
    
Save 82% 18% Embed Share
 Search document 
The Subtle Art of Project Feasibility The Yellow House: SMEDA Bakery Shoe Dog: A Bak
Not Giving a F*c… for Bakery… A Memoir (2019… &… Memoir by the… Pla

Search
FEASIBILITY STUDY Read free for 30 days
2018
BAKERY PROJECT
FEASIBILITY STUDY
PROPOSED L OCATI ON:-ADDI S ABABA CI TY ADMI NI STRATI ON

Related titles ARADA SUB -CI TY ; WOR.-05; H .N.083
CONTACT PERSON:-
PREPARED BY: BIMAS CONSULTING SERVICES PLC

Tel: +251-911-547-774
Not Giving a F*c… for Bakery… A Memoir (2019…
+251-936-690-978 &… Memoir by the… Pla
E-mail: [email protected]
Website: www.bimasconsult-et.com
SEPTEMBER, 2018
ADDIS ABABA
BEDILU KASSAHUN BAKERY Page 1
Trusted by over 1 million members
Try Scribd FREE for 30 days to access over 125 million titles without ads or
interruptions!
Start Free Trial

Cancel Anytime.


FEASIBILITY STUDY 2018
Table of Content
I. Executive Summery ………………………………………….…..
II. Background Information ……………………………...…………
III. Market Analysis..……………………………………………..….
IV. Production Plan &Technical Analysis………………………..
V. Organization and Management …………………………….....
VI. Financial Analysis……………………………………………….
VII. Annexes…………………………………..………………………
Related titles

Search
2018
I. EXECUTIVE SUMMARY

Awareness of high quality baked goods is on the rise. Good bread is a rare combination of
nutrition, convenience, and luxury. Today's consumer has less time to create wholesome,
handmade bread, but increasingly appreciates the nutritional and sensory benefits it provides.
Good bread provides fiber and carbohydrates in a convenient, low fat form that is portable and
delicious. Good bread never goes out of style.
In this regard, the envisaged project is a newly established Ethiopian owned business founded
by Mr . B edilu K assahun Alemu , who has been engaged in hotel services business for more
than a decade. The new bakery project has intended to produce and sale bread and pastry
products of high quality ingredients using modern production techniques. In addition the
company’s objective is to generate income for the company by participating actively in the
business environment with creating employment opportunities for surrounding community.
RelatedCurrently,
titles the project promoter has finalized researching the market and has concluded that the
intended business is an attractive investment. The planned production capacity of the project is
assumed initially based on two shifts with capacity utilization rate at 70%, 80%, 90%, and 100%
during 1 st , 2nd , 3rd , and 4th-10th years respectively. Accordingly, it will have a total production
capacity for each item per annum as follows.
Search
where
Although there are many established competitors with in the vicinity thedocument
underlying 
project has planned to be located; it will possess an advantage that lies with the high quality of
its products due to specialization and artisan manufacturing. The main marketing focus will be
of all community inclusive and having an eye catching sign, the scent of fresh bread wafting out
The Subtle Art of Project Feasibility The Yellow House:
of the storefront, and periodic printed advertisements.
SMEDA Bakery Shoe Dog: A Bak
After establishing the operation, the company will explore the possibility of making takeout and
delivering wholesale bread and baked goods to area restaurants and specialty retailers will also
be considered. Hence, the market for the products under consideration is projected to grow
rapidly in the coming years. The products will be supplied to high demanding domestic market
and also will improve the supply of breads to and improve the lives of local community through
employment creation.

Search
2018
Regarding project financing, the total investment cost required for the project is estimated to be
Birr 6,805,818 , which intended to cover investment costs of working premises, machinery,
vehicles, working capital requirements, office furniture & equipment and raw material. Out of
the total estimated initial investment costs, approximately, Birr 4,646,818 will be expected from
owners’ equity contribution and Birr 2,159,818 for Purchase of Baking Machine with
accessories will be sought from external source as bank lease financing loan for which It is
projected that principal and interest on the loan will be paid over five years with annual interest
rate of 11 .5%.
Furthermore, the financial analysis result, the business will generate positive net profit through entire
years of operations.
179,214 2,696,982 3,114,754 3,510,292 5,087,874
During 1 , 2 , 3 , 4 and 5 years respectively. Detail is annexed. On the other hand, projected cash
st nd rd th th
flow of the business shows that the project would generate positive net cash flows throughout the
operation years. The net cash in-flow for considered life span (i.e.1 st year to 5th year is indicated below,
Related titles
whereas Details are shown in annex.
422,444.33 4,801,507 10,167,307 18,017,833 28,702,779 43,097,107
Furthermore, t he investment cost and income statement projection are used to project the pay-back
period. The project’s initial investment will be fully recovered within 3 years. Whereas, Based on the

cash flow statement, the calculated IRR before and After Tax as well as the net present value (NPV)
discounted at 11.5% are shown below.
 Search document
IRR After Tax 32%
IRR Before Tax 49%
NPV @ 11.5% inter. rate 4,185,223
The Subtle Art ofIntroduction

Finally, ProjectandFeasibility
uses of this newThe Yellow
producing House: hasSMEDA
technology Bakeryimpacts on
reliable positive Shoe Dog: A Bak
Not Givingthea overall
F*c… development
for Bakery… A many
of the country in Memoir (2019…
aspects. &…
In this regard, Memoir by the…
the company with its Pla
initial production capacity intended to move forward, so that;
 It creates employment opportunity for about 28 permanent employees;

 It generates income to the promoters and enhances self-employment;
 The business contributes its best role in the socio-economic development;
 It generates revenue to the government in the form of income tax;

Search
2018
II. BACKGROUND INFORMATION
2.1 Establishment
 Project Name: …………………….Bedilu Kassahun Bakery
 Address: …………………………...Addis Ababa City Administration
Arada Seb-City, Woreda-05, H.No. 083
 Type of Business : ………………….Food Processing and Manufacturing
 Legal form of Business : …………...Sole proprietorship
 Status of Business: ………………... New Project;
 TIN Certificate No.: …………… ....0005957543
 Trade Registration No : …………..AA/AR/05/1/0000708/2005; DD:22/5/2005 E.C

Related titles
 TradeLicense No .: ………………...Under Process
 Required Initial Investment : ……...ETB 6,808,818
2.2 Project Ownership
 Search document
The business is a newly established Ethiopian owned business founded by Mr. BEDILU KASSAHUN

ALEMU having the main focuses on bakery of breads and pastries, The business promoters is at the
middle age of life, with having a good character and well appreciated personality among the society.
The Subtle Art ofhe hasProject

Besides, Feasibility
been engaged The Yellow
in hotel services House:
business for more SMEDA Bakery
than a decade. Shoe Dog: A
The new bakery Bak
Not Giving a F*c…
project for Bakery…
has intended to produce and sale A Memoir
bread (2019…
and pastry products &…
of high quality ingredientsMemoir
using by the… Pla
modern production techniques. In addition the company’s objective is to generate income for the
company by participating actively in the business environment with creating employment
opportunities for surrounding community. He is educated and has acquired pertinent working
experiences of undertaking quality hospitality services and capable to implement proper business
management.

Search
2018
2.3 BUSINESSES OBJECTIVES

The major objectives of the business are:
 To fully engage in the production of quality food items for commercial purposes.
 To embark on a sustainable plan to achieve a reliable source of products for the local, market,
To be leader in the supply of quality breads and pastries, using modern production techniques
and technology and efficient management and distribution channels.
To contribute in the food sector development
Producing breads and pastries using modern production techniques and technology through
creation of employment.
To generate sustainable income for the company in order to expand the operation and other
related development activities in the country.
2.4. VISION & STRATEGY

Related titles
Become one of best quality food producers with sustainable profitability.
This will be through performing as a multifaceted business committed in
providing maximum customer satisfaction.
To achieve this vision, it has to be resolved upon a set of strategies and executing these strategies by
translating directly into the ability to serve the business vision and objectives. The company’s vision is to be
realized through a team of professionals who have extensive work experience in theSearch
 industry. document 
2.5. COMPANY VALUES AND CULTURE
The following are components of the business values and cultures.

Not Giving a F*c… for Bakery… A Memoir (2019…
The company communicates openly and honestly.
&… Memoir by the… Pla
Unethical and dishonest practices have no place in the business
The company recognizes and rewards performance
The company believes that staff development is integral part of its success
The company strongly believes that teams, not individuals are the essential unit of the
organization for achieving high performance and accelerating growth.
The company believes in societal support and community development, hence, all its personnel
will obey to this core value.

Search
2018
2.6 KEY SUCCESSES
 Macro level Successes
 Access to credit provision at lower interest rate as compared to the business’s ROI
 Attractive investment policy and other packages;
 Secured peace and stability throughout the country;
 Continuous increment in household income and associated expenditure patterns;
 Sector Level key Successes
 Availability of the required infrastructure;
 Availability of distribution outlets;
 Government incentive and encouragement .
 Firm level successes factors
 Well trained &motivated personnel;
Related titles  Long years of pertinent work experience of the owners/promoters;
 Well established business with plenty of good-will as well as social acceptances that the
promoters earned so far.

 Availability of raw materials relatively with low-cost and nearest locations
2.7 FUNDING REQUIRMENT

 Search document
The envisaged business requires total investment of ETB 6,805,818. Out of this, the total equity

contribution is expected to ETB 990,675.94 including the initial owners’ equity. The remaining
investment cost about ETB 4,646,000, is sought to be found from external source as bank lease financing,
which break-down is, partly for machinery import, equipment and vehicle purchase. On the other hand,
the remaining loan amount will be used to fulfill working capital requirement in connection to planned
production.

Search
2018
2.8 PRODUCTS DESCRIPTION
Products of the envisaged bread bakery will stand out from the competition due to their
uniqueness and outstanding quality. Most of the breads are unique in style, including Sourdough,
and traditional Ethiopian whole wheat bread, and flavored pastries. These breads are made by the
sourdough method which uses no added yeast. This method imparts a rich flavor, which can be
tangy or mild, as well as a toothsome inner crumb and a crackly crust. By using this method, a
skilled baker can create truly delicious breads without added fats or sugars, making many of
products 100% fat free. Sourdough breads also have an extended shelf life, remaining fresh for
days without the use of preservatives.
The project will also offer specialty breads, which will be made in the sourdough way with the
addition of such luxurious ingredients as pastry with fresh ground pepper and dried spices with
roasted green fruits. Spent Grain Bread, made with barley leftover from beer brewing, is another
unique product that BEDILU KASSAHUN ALEMU bakery will offer. Two varieties of product
Related titles
style will be offered fresh daily, a high demand product that is available nowhere else in the area.
The bakery project will also produce White and Wheat Sandwich Breads with soft crust and a
tender crumb for traditional Ethiopian Style food. As the needs of the customer change, so will
the lineup of its products. The bakery equipment is chosen with versatility in mind.

Search
2018
III. MARKET ANALYSIS

3.1 PAST SUPPLY AND TREND ANALYSIS
3.1.1 Bread Production and supply
The bakery business in Addis Ababa comprises a large number of players that can be segmented on the
basis of their production capacity and a type of services they provide. The major partakers are those
considering the industry’s high fixed cost requirement , profitability is largely dependent on the
company’s ability to increase volumes of sales. The shortage of quality wheat bread in the domestic and
regional market is making the sector challenging and it adversely affecting the operations and profitability
of bakeries.
According to CSA, 2013/14 report in Ethiopia there are 217 bakeries making same products of which
57% are held in sole ownership, 30% are PLC and 5% are share companies as shown in the following
figure.
Related titles FIGURE 1: Bakery Businesses
Co-operatives, Others, 2% Public, 1%

2%
PLC, 30%
Individual
ownership, 57%
share company,
The Subtle Art of Project Feasibility
5% The Yellow House: SMEDA Bakery Shoe Dog: A Bak
Not Giving a F*c… for Bakery…
Partnership, 4%
A Memoir (2019… &… Memoir by the… Pla
Source: CSA, 2016
During the years 2007 – 2016, the country consumed an average of 1,375,380 tons of bread
products out of which the Addis Ababa market contributed an average of 64%. The table below
presents the total supply of breads in Ethiopia for the years 2007 to 2016 and the share Addis
Ababa suppliers of production in the total supply.

Related titles
interruptions!
Start Free Trial

Cancel Anytime.
Related titles
Related titles
Related titles
Related titles
Related titles
Related titles
Related titles
Related titles
Related titles
Related titles
interruptions!
Start Free Trial

Cancel Anytime.
Related titles
Related titles
Related titles
Related titles
Related titles
Related titles
Related titles
Related titles
Related titles
Related titles
interruptions!
Start Free Trial

Cancel Anytime.
Related titles
Related titles
Related titles
Related titles
Related titles
Share this document

    
You might also like
The Subtle Art of Not Giving a F*ck: A Counterintuitive

Approach to Living a Good Life
Mark Manson
Project Feasibility for Bakery Business

Adil Anwar
Related titles The Yellow House: A Memoir (2019 National Book

Award Winner)
Sarah M. Broom
Magazines
Not Giving a F*c… Podcasts
for Bakery… Sheet
A Memoir Music&…
(2019… Memoir by the… Pla
SMEDA Bakery & Confectionery

rabirabindra
Shoe Dog: A Memoir by the Creator of Nike

Phil Knight
Bakery Business Plan2
Search
adrianab684 Read free for 30 days
Economic Growth Breads Economies Pricing
Hidden Figures: The American Dream and the Untold

Story of the Black Women Mathematicians Who
Related titles
Helped Win the Space Race
Margot Lee Shetterly
Bakery Business Plan

The Subtle Art of Sulabayo
Project Feasibility The Yellow House: SMEDA Bakery Shoe Dog: A Bak
Never Split the Difference: Negotiating As If Your Life

Depended On It
Chris Voss
Crane Bakery Ltd Business Plan Doc

InfiniteKnowledge
Grit: The Power of Passion and Perseverance

Angela Duckworth
wonderland cupcakes business plan

ruruhamze
Show more
About Support Legal Social
About Scribd Help / FAQ Terms Instagram
Press Accessibility Privacy Twitter

Our blog Purchase help Copyright Facebook
Join our team! AdChoices Cookie Preferences Pinterest
Contact us Publishers
Invite friends
Gifts
Scribd for enterprise
Get our free apps
Books • Audiobooks • Magazines • Podcasts • Sheet Music • Documents • Snapshots • Directory
Language: English
Copyright © 2021 Scribd Inc.


Bakery Project Start-Up Business Plan - PDF - Economic Growth - Breads

Uploaded by

Copyright:

Available Formats

Bakery Project Start-Up Business Plan - PDF - Economic Growth - Breads

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bakery Project Start-Up Business Plan - PDF - Economic Growth - Breads

Uploaded by

Copyright:

Available Formats

What is the proposed location and contact person for the bakery project?

What is the proposed location and contact person for the bakery project?

What are the objectives of the bakery company?

What are the objectives of the bakery company?

Search Read free for 30 days

· 10K views · 35 pages

Bakery Project Start-Up Business

Uploaded by Abenet Ajeme

PROPOSED L OCATI ON:-ADDI S ABABA CI TY ADMI NI STRATI ON

PREPARED BY: BIMAS CONSULTING SERVICES PLC

BEDILU KASSAHUN BAKERY Page 1

Trusted by over 1 million members

Start Free Trial

Search Read free for 30 days

I. Executive Summery ………………………………………….…..

II. Background Information ……………………………...…………

III. Market Analysis..……………………………………………..….

IV. Production Plan &Technical Analysis………………………..

V. Organization and Management …………………………….....

VI. Financial Analysis……………………………………………….

BEDILU KASSAHUN BAKERY Page 2

I. EXECUTIVE SUMMARY

BEDILU KASSAHUN BAKERY Page 3

179,214 2,696,982 3,114,754 3,510,292 5,087,874

422,444.33 4,801,507 10,167,307 18,017,833 28,702,779 43,097,107

The Subtle Art ofIntroduction

 It creates employment opportunity for about 28 permanent employees;

BEDILU KASSAHUN BAKERY Page 4

II. BACKGROUND INFORMATION

 Project Name: …………………….Bedilu Kassahun Bakery

 Address: …………………………...Addis Ababa City Administration

Arada Seb-City, Woreda-05, H.No. 083

 Type of Business : ………………….Food Processing and Manufacturing

 Legal form of Business : …………...Sole proprietorship

 Status of Business: ………………... New Project;

 TIN Certificate No.: …………… ....0005957543

 Trade Registration No : …………..AA/AR/05/1/0000708/2005; DD:22/5/2005 E.C

 Required Initial Investment : ……...ETB 6,808,818

2.2 Project Ownership

The Subtle Art ofhe hasProject

BEDILU KASSAHUN BAKERY Page 5

2.3 BUSINESSES OBJECTIVES

2.4. VISION & STRATEGY

The following are components of the business values and cultures.

BEDILU KASSAHUN BAKERY Page 6

2.6 KEY SUCCESSES

 Macro level Successes

 Attractive investment policy and other packages;

 Secured peace and stability throughout the country;

 Continuous increment in household income and associated expenditure patterns;

 Sector Level key Successes

 Availability of the required infrastructure;

 Availability of distribution outlets;

 Government incentive and encouragement .

 Firm level successes factors

 Well trained &motivated personnel;

Related titles  Long years of pertinent work experience of the owners/promoters;

promoters earned so far.

2.7 FUNDING REQUIRMENT

SMEDA Bakery & Confectionery