Bakery Business Plan (2)
Short Description
This is An outlet is orginol work of mine...
Description
Æ T he Pr oj ect on bus i nes s pr opos al been s ubmit t ed by Rohit Gupt a ENR IBR 4023&Saurabh S ingh ENR 4015. As all Academi c pr oj ect is on or igi nal wo r k execut ed on dat e 28 -10-10.
It is t he or igi nal wor k done by us. T his is t he
pr oper t y of t he Ins t it ut e and us e of t his r eport wit hout pr ior per mis s ion of t he Ins t it ut e will be cons i der ed ill egal and act ionabl e. Dat e:- 31-10-10
Signat ur e
Signat ur e
Rohit Gupt a
Saurabh S ing
IBR 4023
IBR 4015
PGDIB
PGDIB
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Æ T he s ucces s ful compl et i on of t his dis s ertat ion woul d not have been pos s ibl e wit hout t he s upport and cooperation of ot her s. We mus t first t hank G od, who ma kes all t hi ngs pos s ibl e. We know t hat t his pr oj ect was not our indi vi dual achi evement , but t he r es ult of ma ny peopl e t o whom w e will be f or ever grat eful. It is not unt il you under take a pr oj ect like t his one t hat you r ealize how mas s i ve t he effort it r eally is, or how much you mus t r el y upon t he s elfl es s eff orts and goodwill of ot hers. We woul d be failing i n our dut y if we do not expr es s our deep sens e of grat it ude t o t hos e who have been ki nd enough t o help us i n pr eparat i on of t his r eport. We ar e gr at eful t o Dr. D. K. G ARG, CHAIRMAN, IS HAN INSTIT UT E OF MAN AGEMENT & TECHNOLOG Y for his ever last ing s upport and gui da nce on t he gr ound of which ha ve acquir ed a new fiel d of knowl edge. T he cour s e str uct ur e cr eat ed f or t his cur riculum has been benefit ed wit h inclus i on of r ecent devel op ment in t he or ga nizat i on and t he ma nager ial as pect s. I woul d als o like t o t hank our coor di nat or who s upport ed me and encoura ged me t o compl et e t his pr oj ect.
Saurabh S ingh IBR 4015 PGDIB Rohit Gupta IBR 4023 PGDIB
P P
6 66
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Preamble
5
Purpose of study
6
The business
7-9
!
Manpower requirement
10
"
Plant & Machinery requirement
11-12
#
Start up cost
13
$
Sale forecast
14
%
The location
15
&
Product & Market segmentation
16-19
'
Competitor
20-23
Technical Knowhow
24
Plant Layout
25
Demand of the Product
26
!
Why We are interest in this project
27
Taxation
28
!
Legal aspect
29-30
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Conclusion
31
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Entrepreneurship is the practice of starting new organizations or revitalizing mature organizations, particularly new businesses generally in response to identified opportunities. Entrepreneurship is often a difficult undertaking, as a vast majority of new businesses fail. Entrepreneurial activities are substantially different depending on the type of organization that is being started. The food industry is a thriving sector in the Indian economy and holds approximately 4% of the Indian GDP. We should note that the Bakery food has seen in the past few years a growth in the sales and revenues between the periods of 2004 to 2009. However, with the economic downturn that the world is currently experiencing the IRFA (Indian Restaurant & Foodservice Association) is predicting a decline of the industry between 2008 and 2009. Indian People love to eat. We find the social environment of food product the perfect break from cooking, and relish the adventure of tasting new menus. People of India spend lavishly on their eating habit; we take the advantage of this habit of them. We herein The cakery food product strive to deliver the products with the green ambience which the customers won¶t find elsewhere. Quality of products is paramount to us. Vegetarian people need not to travel here and there for the Bakery food product, we will provide them the best Cake and pastry they can ever have.
Our motto is to provide quality products to the customers so that they demand our
product again and again. We try to make small contribution to the environment by using paper for packaging of
our products. We believe that business enterprise is never complete if it doesn¶t make contribution
beyond building a good business. So we constantly work to improve the quality of people whosoever is associated with us. We try to ensure that the customer is getting best service from us. We will be taking the feedback of the customers and look for modification of our
products and services in response to the feedback.
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( (Æ) The objective of this project ³Business Proposal´ is to get insight the real business scenario. It will help us to grow as entrepreneurs because they are the need of our growing economy. There is large opportunity in every sector waiting to be exploited for sustaining the growth of our nation. In this project we will learn how to commence a business ,how to take the strategic decisions such as developing vision & mission for the organization , selecting the particular business, looking for the strategic location for the growth of the business, chalking out the production & marketing plan. It will also help us to understand the dynamism of the market & will nurture the customer centric approach in us. Being an essential part of our course curriculum this project brings out our hidden qualities & natural creativity that are must for the successful completion of this project. We have found that as ³an owner you will get to know a lot of people. It is very social business, with lots of invitations to social events and private parties. You will be on a firstname basis with people who have power and prestige: the conductor of the symphony, the coach of the football team, the mayor, television celebrities, and so on. When they will use your services, you are the one they want to talk to. It makes them feel important, so they will seek you out to become your friend.´ The following information should serve as a guide in helping you make that decision. The information provided is by no means meant to be allinclusive, but it will, we hope, provide some useful guidelines to help in your decision making. The purpose of the study also rotates around the fact whether we ourselves are going to start the business or the other would take a valuable suggestion. In both the case the purpose of the study would be fulfilled. Our purpose of study can be summarized as follows: To increase knowledge base. To develop entrepreneurial skill. To understand business aspects and complications. To give a virtual existence to our future business
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³+ , - . /0 0 01 , 2, 2/3 2 4 4 , 5 5 -´. This statement motivates us to go for the Bakery business in India.
We have
suggested for Bakery food product because up till now there is no branded Bakery food product which sells exclusively Bakery food. THE CAKERY FOOD PRODUCT is a new Bakery product manufacturer which primarily sells Bread, Cake, Cream roll, pastry, pao, toast. The punch line of The Bakery Food Product is ³THE TASTE OF YOUR CHOICE.´
6 0 To become the most preferred Bakery product manufacturer among the people by treating the people in the way they like to be treated and give them best for the least.
0 The Cakery Food Product aims to be a cornerstone in the community creating a neighbourhood atmosphere where customers feel comfortable and become instant regulars. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate for our money and risk.
78 4 1. To establish a working storefront for The Cakery food Product bakery. 2. To develop the strong presence in the community needed to support sales goals. 3. To develop a full menu by the end of first 100 Days. 4. To provide the true flavour of India at reasonable cost.
.90, 20 /9 Currently The Cakery food Product Bakery is a partnership firm of two partner which are Rohit Gupta and Saurabh Singh . Eventually, as the company becomes established, The Cakery food Product Bakery will apply to be incorporated.
.90, .., The Cakery food Product Bakery will be located in Nani which is Very peace full and green atmosphere. This Town is a very popular destination because of the historical architecture w
for weekenders and tourists. It is also a prime location for all the employees of the surrounding bakery businesses. The bakery sells non-wheat and other health specific breads, sweets and pastries to the surrounding community every 24*7.
. : ; Customer is the ultimate Boss for any company, he has the power of even sacking the owner of the company, the only thing he will do that he will not purchase the products of the particular company, so before starting of any business entrepreneur should have clear idea of whom to target. We target the middle and upper middle class people area who like to have bakery food. Mainly our target is ultimate User consumer and children. The Cakery food Product will focus on three distinct customer segments area.
0 . 0 .:; Recognizing the importance of human capital, The Cakery food Product has assembled a strong management team. Most important to the cakery food product is the financial success which will be achieved through strict financial controls. Additionally success will be ensured by offering high quality services and extremely clean and healthy food with Indian taste. The Cakery food Product is an exciting opportunity that combines, fresh baked goods with bread, cake products, addressing the recent need for these new products. Demand for these products is expected to grow exponentially as our target market .Through a combination of a strong management team, a solid business model, and exciting, market demanded products will allow The Cakery food Product to quickly gain market penetration and cash richness.
+ 0 Marketing means creating awareness and willingness in the customers to purchase the products. Marketing is one of the most important aspects of the business because without awareness of the products it cannot be sold. We planned to sell our products with the fallowing advertisement strategy
Ë We will attach a leaflet shaped paper pamphlet to all the leading newspaper in Allahabad. On the leaflet there will be a description of our particular and on the back of leaflet there will be a quotation about the nutritional value of particular product but there will be
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nothing in the quotation that will be affect the sentiments of non vegetarian people because after all they will also be our customers.
Ë Before 15 days of inauguration of our business we will seek permission from the respective Authority for putting the holding about our product. On holding we will keep information about our product, the pamphlet will be large enough so that the information will be visible to the people. Ë We also provide our products free home delivery.
0,:; 0/: No branded bakery food product which sells exclusively Cake and Pastry. It provides variety of cake , Bread, cream roal, toast, and Cake formed by different Flavour which give the customer an Indian taste. +0 : There is a risk in starting this business because it will be first of its kind. / : There is no direct competitor as such but we can consider local player of the particular area as our competitors because they are selling same product with low cost. If talk about International player Britannia also provides some same product, Britannia is also well recognized brand among the customer and its sales are maximum among the various products in India which is a major threat. 99 0,: There is a large customer base, as India is having maximum number of vegetarian peoples. Indians spend around 51% of their personal expenditure on their eating habit.
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.0 + , -- D 26/4, Narad Ghat, Himalaya Lodge, Narad Ghat, Varanasi
+ > + -- Jagatganj, Varanasi - 09936090187
2 8 7+ -- Katalmil Gate, Varanasi - 0542 2214530
9, /7- 0- 5 4 -- 13/13, SARDAR PATEL MARG CIVIL LINES, Allahabad 0532 2261228
. + , -- 211, Noorulla Road, Allahabad ± 211001
?, + , 177/22, Noorullah Road, Allahabad ± 211001 c
- 05 0
19/35, M.G Road, Civil Lines, Allahabad ± 211001
@ 0 0 67/64, Zero Road, Allahabad ± 211003
0
+ - 0- 4 . - G-164 sector 63, opposite Fortis Hospital Sector 62, New Okhla Industrial Development Area, Uttar Pradesh ± 09971499770
00 0 A9. 0 0- - B-66, Okhla Industrial Area Phase-i New Delhi -011 26816298
+ 0 B 0 - 0- 4 . -? Mehrauli Gurgaon Marg, 14GF, Ground Floor MGF Metropolitan Mall Gurgaon, 122 001 - 0124 4100788
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* * The great majority of developing countries including in India poor and suffer from overpopulation and consequent higher rates of unemployment. The technology of advanced by definition is capital ±intensive, whereas the technology required in most developing countries has to be employment-intensive. This is, therefore the basic contradiction. The transfer of capital-intensive technology into developing countries is likely to worsen the employment position as such technology would deny the unemployed the extremists, therefore, argue for an almost total rejection of transferring western technology to Indian conditions. The technical exists not in research laboratories, not in factories machines, nor in engineering data, drawing and patents. It exists in the multi-disciplinary group consisting of scientists, engineers, accounts, managers, operations and maintenance teams other groups who have together developed the technology. So, in business, technology exists where it has been assimilated and adapted successfully and is able to undergo diffusion. In fact the assimilation, adaptation and diffusion of ³know-how´ results in technology. The technical knowhow includes following components such as: Quality of the product. Specification of the raw materials inputs to various components. Details of the plant & machinery and their layout. Engineering and process flow chart, manufacturing instructions. Load diagrams and material balance. Control of operations, production and planning. Managerial practice and data processing. Scale of operations.
a
)( > Æ( )( > 6 The chosen location is selected for its high commercial and residential traffic situated at Nani the
elite
class
area
of Allahabad.
Key
service industries
include
Education,
telecommunications, hotels, banking, and tourism are there. The crakery food product has retained the services of traditional architectural for the conceptual development of the interior design.
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Æ Æ * Æ( Demand analysis is one of the important parts of any kind of business, before establishing the business in market. According to our project it is necessary to find out new trend Bakery product and past requirement of the market that the project which we are going to established whether it is successful in that particular area or not. Consumption trend can be measure ,through demand position or customer life style .Because in today¶s scenario customer needs best quality of baking product at cheaper rate it can be easily analyze through current population of the our target customer area. Demand trend only analyses through customer¶s interest of that particular area, Supply position of any market is depending on number of customer available in that particular area. More the number of the customer more is the demand and vice-versa. It mainly consist the market from where the businessman take the raw material it is depend on the past and present respond of the customer. Nani is situated in the centre of our large Papulation,In Allahabad if we talk about life pattern of the people ,mostly belongs to middle class and teenagers they are mostly prefers bakery product such as Bread, Toast and Pao as breakfast in comparison to fast food so they play important role increasing demand of bakery product. Allahabad is city having large number of people and there are also tourists who visit the Allahabad to see its cultural heritage and Sangam.
*) Æ * ? We are interested in this project because two of our neighbours are already in this business and they are generating enough profit with this business. We had also organized a south Indian food stall in µKshitiz¶ one of renowned festival of our college and we made profit. This has inspired me to open a Bakery business. In spite of this, We are a food loving person. I take interest in cooking and having different varieties of meal. Secondly, through studies I found that bakery business is the fastest growing business in India comparative to other businesses having lowest failure probability and there is low tax liability apposed on the Bakery product in comparison to other type of the business and very formal legal liability required for this business. Allahabad is the only city where cheap land and labour are available. That¶s why we have included availability of resources in our Bakery business. Being a Management student it¶s always curious to be an entrepreneur. Opening a Bakery business is also an entrepreneurship. So, all these create interest in me for this project.
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C As we know India known for the well -developed tax structure with clearly demarcated authority between Central and State Governments and local bodies. Central Government levies taxes on income (except tax on agricultural income, which the State Governments can levy), customs duties, central excise and service tax. Value Added Tax (VAT) (or Sales tax in States where VAT is not yet in force), Stamp Duty, State Excise, Land Revenue and tax on professions are levied by the State Governments. Local bodies are empowered to levy tax on properties, octroi and for utilities like water supply, drainage etc. In last 10-15 years, Indian taxation system has undergone tremendous reforms. They tax rates have been rationalized and tax laws have been simplified resulting in better compliance, ease of tax payment and better enforcement. The process of rationalization of tax administration is ongoing in India. Since April 01, 2005 most of the State Governments in India have replaced sales tax with VAT. Service tax is levied at the rate of 10% (plus 2% education cess) on certain identified taxable services provided in India by specified service providers. Service tax on taxable services rendered in India are exempt, if payment for such services is received inconvertible foreign exchange in India and the same is not repatriated outside India. The CENVAT Credit Rules allow a service provider to avail and utilize the credit of additional duty of customs/excise duty for payment of service tax. Credit is also provided on payment of service tax on input services for the discharge of output service tax liability If so, use the following method to "back into" they tax. You may choose to include sales tax in the price of an item, rather than show the tax separately.
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4 0 0 5 - - 0 D &"! This act is the basic statute that is intended to protect the common consumers against the supply of adulterated food. This specifies different standards for various food articles. The standards are in terms of minimum quality levels intended for ensuring safety in the consumption of these food items and for safeguarding against harmful impurities and adulteration. The central Committee for Food standards, under the Directorate General of health services, Ministry of Health and Family Welfare, is responsible for the operation of this act. The provisions of this Act are mandatory and contravention of the rules can lead to both fines and imprisonment.
78 4 Ë To protect the public from poisonous and harmful foods. Ë To prevent the sale of substandard foods. Ë To protect the interests of consumers by eliminating fraudulent practices
0-- 0 / 0- B+ - .. - E D &$$ These rules lay down certain obligatory conditions for all commodities that are packed form, with respect to declaration on quantities contained. These rules are operated by the Directorate of Weights and Measures, under the Ministry of Food and Civil supplies
( ( Æ ÆÆ BE During the pre-independence period, standardization activity was sporadic and confined mainly to a few government organization. However immediately after independence, economic development through coordinated utilization of resources was called for and the government recognized the role for standardization in gearing industry to competitive efficiency and quality production. The Indian Standard Institution was therefore, set up in 1947 as a registered society under a government of India resolution. The Indian Standard Institution gave the nation the standard it needed for nationalization, orderly industrial and commercial growth, quality production and competitive efficiency. However, in 1986 the government recognized the need for strengthening this National Standards Body due to fast changing socio-economic scenario and according it a statutory
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status. Thus come the Bureau of Indian Standard Act 1986 and on 1 April 1987, newly formed BIS took over staff assets. The activities of BIS are twofold, the formulation of Indian standards in the processed food sector and the implementation of standards through promotion and through voluntary and third party certification systems. BIS has on record, standards for most of processed foods. In general, these standards cover raw materials permitted and their quality parameters, hygienic conditions under which products are manufactured and packaging and labelling requirements. Manufacturer complying with standards laid down by the BIS can obtain and ³ISI´ mark that can be exhibited on product packages. BIS has identified certain items like food colours/additives, vanaspati, containers for packing milk powder and condensed milk for compulsory certification.
78 4 5 E Harmonious development of standardization, marking and quality certification. E To provide new thrust to standardization and quality control. E To evolve a national strategy for according recognition to standards and integrating them with growth and development of production and exports.
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( I am sure that our Bakery food product will be going to succeed as it is having a huge market. The product range also which we are having is unique and it nearly covers all the necessary qualities which it will make a unique product. There are large number of people in Allahabad & it¶s nearby city which can be served as our customers. Our bakery will be first of its kind as there is no branded Bakery up till now in Uttar Pradesh which sells exclusively Cake Pastry, bread this gives our cakery food product a first movers advantage. In India there are large numbers of vegetarian people who account for about 40% of the Indian population. This gives an idea about our target customers. People in India spend lavishly on their eating habit, only we have to do is to provide best quality Bakery food. There are many factors that influence the availability of the product. Supply of raw materials should be within time. Baker and worker should be quick and best so that we can provide our customers the quality Bakery food with a faster service. Marketing is especially important for a business in retail industry because there is no other person on whom the retailer can rely in this industry for penetration in the market or diversification. Marketing is a very crucial activity in every business organization. Every product produced within an industry has to be marketed otherwise it will remain as unsold stock, which will be of no value.
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