Jaypee Business School

Jaypee Institute of Information Technology

(Declared Deemed to be University u/s 3 of UGC Act)
A-10, Sector 62, NOIDA, 201 307, INDIA, www.jbs.ac.in

TEFR Project Report

Greenfiled Biscuit Manufacturing Plant
Master of Business Administration Programme
MBA 2021-23

Name: GAOUTAM SHANKKAR VERMA

PRIYANKA SHARMA
MAYANK GUSAIN
NISHANT CHAUDHARY

“CRUMBLETOP BISCUITS”

JBS-Faculty Supervisor:
Name: MR. SUNIL BHATIA
 1. INTRODUCTION

A biscuit is a baked or cooked food that is typically small, flat and sweet. It usually
contains flour, sugar and some type of oil or fat. It may include other ingredients
such as raisins, oats, chocolate chips, nuts, etc.

Biscuits are often served with beverages such as milk, coffee or tea and sometimes
"dunked", an approach which releases more flavour from confections by dissolving
the sugars, while also softening their texture.

Biscuits are most commonly baked until crisp or just long enough that they remain
soft, but some kinds of biscuits are not baked at all. Biscuits are made in a wide
variety of styles, using an array of ingredients including sugars, spices, chocolate,
butter, peanut butter, nuts, or dried fruits. The softness of the biscuit may depend
on how long it is baked.

2. TECHNICAL ANALYSIS
Technical analysis is a method used to evaluate and forecast the future performance of a
company or industry based on statistical data and market trends. In biscuit manufacturing,
technical analysis can be used to identify trends and patterns in production, sales, and other
key performance indicators (KPIs) that can help manufacturers make informed decisions
about their operations. Here are some technical analysis techniques that can be applied to
biscuit manufacturing:

 Statistical Process Control (SPC): SPC is a method used to monitor and control
 production processes by analyzing statistical data. In biscuit manufacturing, SPC can
be used to monitor KPIs such as production rate, yield, and quality. By analyzing
these KPIs, manufacturers can identify trends and patterns in their production process
and make adjustments to improve their performance.
 Six Sigma: Six Sigma is a methodology used to improve the quality of products and
services by minimizing defects and errors. In biscuit manufacturing, Six Sigma can be
used to identify and eliminate the root cause of quality issues, reduce waste, and
improve production efficiency.
 Total Productive Maintenance (TPM): TPM is a method used to maximize equipment
reliability, minimize downtime, and reduce maintenance costs. In biscuit
manufacturing, TPM can be used to identify and prevent equipment breakdowns,
improve equipment performance, and reduce maintenance costs.
 Lean Manufacturing: Lean manufacturing is a methodology used to minimize waste
and improve production efficiency. In biscuit manufacturing, lean manufacturing can
be used to identify and eliminate non-value-added activities, reduce inventory, and
improve production flow.
 Value Stream Mapping (VSM): VSM is a method used to visualize and analyze the
flow of materials and information in a production process. In biscuit manufacturing,
VSM can be used to identify and eliminate bottlenecks, reduce cycle time, and
improve product quality.
 Root Cause Analysis (RCA): RCA is a method used to identify and eliminate the root
cause of problems. In biscuit manufacturing, RCA can be used to identify the root
cause of quality issues, production delays, and other problems that can impact the
efficiency and profitability of the operation.

3. MARKET and DEMAND Analysis:

India biscuit market stood at $ 3.9 billion in 2023, and is projected to grow at a
CAGR of 11.27%, in value terms, during 2024-2029, to reach $ 7.25 billionby
2029. Rising number of health-conscious consumers, expanding working
population and increasing urbanization are boosting the country’s biscuit market.
Moreover, augmenting disposable income along with changing lifestyle, increasing
awareness regarding healthy diet and change in food consumption pattern are some
of the other factors expected to propel demand for biscuits over the course of next
five years.

The global biscuits market size was valued at USD 30.62 billion in 2023 and is
projected to expand at a CAGR of 5.3% from 2023 to 2029. Growing product
popularity, especially in emerging regions, is expected to be the key factor fueling
the market growth. Moreover, high demand for chocolate biscuits in developed
economies like U.S., Germany, and U.K. will boost the market further. Bakery
manufacturers attract customers with innovative packaging solutions and by
launching new flavor variants, such as pineapple.

4. PRODUCT DESCRIPTION

4.1 Raw Material sources

Following raw material is required as the major raw material for the manufacturing of
biscuits.

S.N. Description Amount

1 Wheat flour Rs. 30-40 Per KG

2 Sugar Rs. 35 - 42 Per KG

3 Flavours Rs.100- 300 Per Litre

4 Oil Rs. 100-150 Per Litre

5 Chemicals Rs. 150-300 Per KG

4. Average raw material (cost per KG): Rs. 60-65

 5. MANUFACTURING PROCESS

 First of all, as a raw material bakery shortening is kept at a temperature of 8

degree Celsius to 10 degree Celsius to Colden its raw material, so that there
will be no lumps issue arise at the time of mixing.
 After that sugar is grinded with the help of Sugar grinder.
 Then mix well the grinded sugar and bakery shortening together & for
mixing use filtered water according to the season type.
 After preparation of mixture add refined wheat flour and flavours as
required in it.
 Then keep ready mixture near dropping machine, where biscuits are
designed according to size, type by the operator.
 Trays are then loaded to the back of machine, in which biscuits start
coming on the conveyor drop by drop.
 After that these trays are loaded on trolley and biscuits are kept in the open
for baking process at 180 degree Celsius for 25 minutes.
 After baking process biscuits are send to packaging department.

6. PROJECT COMPONENTS

6.1 Land

Land required 1200-1500 square feet approx.

Approximate rent for the same is Rs.50000-60000 per month.

6.2 Plant & Machinery

S.N. Item Description Image

1 Planetary mixture
 2 Baking Oven

3 Dropping machine

4 Sugar mixture

Note: cost of the machinery is approx. Rs. 8,00,000 excluding GST and other
transportation cost.

7. Misc. Assets

S.N. Item Description Rate

1 Electricity connection 50,000

2 Other equipment’s & fixture 50,000

 3 Storage tank etc. 20,000

ENVIRONMENTAL PROTECTION & POLLUTION CONTROL MEASURES

Biscuit manufacturing is a major industry that provides a wide range of

products for consumers worldwide. However, this industry is also associated
with environmental issues such as pollution, waste generation, and resource
depletion. In this context, environmental protection and pollution control
measures are essential to minimize the environmental impact of biscuit
manufacturing. In this article, we will discuss some of the measures that can
be taken to reduce the environmental impact of biscuit manufacturing.

7.1 Energy Conservation: One of the significant

environmental impacts of biscuit manufacturing is
the consumption of energy. To reduce energy
consumption, biscuit manufacturers can implement
various measures such as installing energy-
efficient equipment, using renewable energy
sources, optimizing production processes, and
conducting regular energy audits.
7.2 Water Conservation: Water is an essential resource
in biscuit manufacturing, and it is also a significant
source of pollution. To conserve water, biscuit
manufacturers can implement measures such as
recycling water, reducing water consumption, and
implementing a water management plan to
minimize water pollution.
7.3 Waste Management: Biscuit manufacturing
generates significant amounts of waste, including
packaging material, food waste, and wastewater.
To manage these wastes, biscuit manufacturers can
implement measures such as recycling,
composting, and incineration. Proper waste
management can also help to minimize the
environmental impact of biscuit manufacturing.

7.4 Pollution Control: Biscuit manufacturing is

associated with air, water, and soil pollution. To
control pollution, biscuit manufacturers can
 implement measures such as installing pollution
control equipment, using environmentally friendly
materials, and using green technologies. Pollution
control measures can help to minimize the
environmental impact of biscuit manufacturing and
protect the environment.
7.5 Environmental Management System (EMS): An
Environmental Management System (EMS) is a
framework that helps organizations to manage
their environmental impact. Implementing an EMS
can help biscuit manufacturers to identify and
manage their environmental impact, comply with
environmental regulations, and improve their
environmental performance.
7.6 Product Design: Biscuit manufacturers can also
reduce their environmental impact by designing
products that are environmentally friendly. This
can include using recyclable packaging, reducing
the use of harmful chemicals, and reducing the
energy required for production.

Manpower Requirement

6-7 Manpower are required for the Biscuits Manufacturing unit.

Includes:

2 Skilled Labour

2 Unskilled Labour
1-2 Helper

1 Accountant

8. FINANCIALS

8.1 Cost of Project

COST OF PROJECT
(in Lacs)

PARTICULARS Amount

Land & Building Owned/rented

Plant & Machinery 8.00

Miscellaneous Assets 1.20

Working capital 4.44
Total 13.64

8.2 Means of Finance

MEANS OF FINANCE

PARTICULARS AMOUNT
Own Contribution (min 10%) 1.36

Subsidy @35%(Max. Rs 10 Lac) 3.22

Term Loan @ 55% 5.06

Working Capital (bank Finance) 4.00

Total 13.64
8.3 Projected Profitability
(in Lacs)
PROJECTED PROFITABILITY STATEMENT

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Capacity Utilisation % 50% 55% 60% 65% 70%

SALES

Gross Sale

Biscuits 58.00 69.09 78.98 90.25 102.24

Total 58.00 69.09 78.98 90.25 102.24

COST OF SALES

Raw Material Consumed 37.20 42.90 48.96 55.38 63.00

Electricity Expenses 2.88 3.31 3.81 4.38 4.82

Depreciation 1.32 1.13 0.96 0.82 0.71

Wages & labour 5.40 5.94 6.53 7.19 7.91

Repair & maintenance 2.03 2.42 2.76 3.16 2.56

consumables 2.47 2.42 2.76 2.44 3.07

Cost of Production 51.30 58.12 65.80 73.37 82.05

Add: Opening Stock /WIP - 1.71 1.94 2.19 2.45

Less: Closing Stock /WIP 1.71 1.94 2.19 2.45 2.74

Cost of Sales 49.59 57.89 65.54 73.11 81.76

GROSS PROFIT 8.41 11.20 13.44 17.13 20.47

Salary to Staff 2.64 2.90 3.19 3.51 3.87

Interest on Term Loan 0.50 0.44 0.31 0.19 0.07

Interest on working Capital 0.44 0.44 0.44 0.44 0.44

Rent 3.00 3.30 3.63 3.99 4.39

selling & adm exp 0.87 1.90 2.17 3.38 4.09

TOTAL 7.45 8.98 9.75 11.52 12.85

NET PROFIT 0.97 2.22 3.69 5.61 7.62

Taxation 0.06 0.27

PROFIT (After Tax) 0.97 2.22 3.69 5.55 7.35

8.4 Production and Yield

COMPUTATION OF PRODUCTION OF BISCUITS

Items to be Manufactured

Biscuits

Production capacity Taken 50 KG per hour

Total working Hours 8

machine capacity per day 400 KG

working days in a month 25 Days

working days per annum 300

machine capacity per annum 120000 KG

Production of Biscuits

Production Capacity KG

1st year 50% 60,000

2nd year 55% 66,000
3rd year 60% 72,000
4th year 65% 78,000
5th year 70% 84,000
Raw Material Cost
Year Capacity Rate Amount

Utilization (per KG) (Rs. in lacs)

1st year 50% 62.00 37.20

2nd year 55% 65.00 42.90

3rd year 60% 68.00 48.96

4th year 65% 71.00 55.38

5th year 70% 75.00 63.00

8.5 Working Capital Assessment

(in Lacs)
COMPUTATION OF CLOSING STOCK & WORKING CAPITAL
PARTICULARS 1st year 2nd year 3rd year 4th year 5th year

Finished Goods

1.71 1.94 2.19 2.45 2.74

Raw Material

1.86 2.15 2.45 2.77 3.15

Closing Stock 3.57 4.08 4.64 5.21 5.89

 COMPUTATION OF WORKING CAPITAL REQUIREMENT

TRADITIONAL METHOD (in Lacs)

Particulars Amount Own Margin Bank Finance

Finished Goods & Raw Material 3.57

Less : Creditors 0.99

Paid stock 2.58 10% 0.26 90% 2.32

Sundry Debtors 2.32 10% 0.23 90% 2.09

4.90 0.49 4.41

MPBF 4.41

WORKING CAPITAL LIMIT DEMAND ( from Bank) 4.00

Working Capital Margin 0.44

Power, Salary & Wages Calculation

Utility Charges (per month)

Particulars value Description
Power connection required 12 KWH
consumption per day 96 units

Consumption per month 2,400 units

Rate per Unit 10 Rs.
power Bill per month 24,000 Rs.
BREAK UP OF LABOUR CHARGES

Particulars Wages No of Total

Rs. per Month Employees Salary

Skilled (in thousand rupees) 14,000 2 28,000

Unskilled (in thousand rupees) 8,500 2 17,000

Total salary per month 45,000

Total annual labour charges (in lacs) 5.40

BREAK UP OF Staff Salary CHARGES

Particulars Salary No of Total

Rs. per Month Employees Salary

helper 7,000 1 7,000

Accountant 15,000 1 15,000

Total salary per month 22,000

Total annual Staff charges (in lacs) 2.64

8.6 Financial Indicators

FINANCIAL INDICATORS

PARTICULARS 1st year 2nd year 3rd year 4th year 5th year
TURNOVER 58.00 69.09 78.98 90.25 102.24
GROSS PROFIT 8.41 11.20 13.44 17.13 20.47

G.P. RATIO 14.51% 16.21% 17.02% 18.98% 20.03%

NET PROFIT 0.97 2.22 3.69 5.61 7.62

N.P. RATIO 1.67% 3.21% 4.67% 6.22% 7.45%

CURRENT ASSETS 7.56 8.18 8.99 10.05 11.35

CURRENT LIABILITIES 5.39 5.79 6.07 6.38 6.75

CURRENT RATIO 1.40 1.41 1.48 1.58 1.68

TERM LOAN 4.50 3.37 2.25 1.12 -

TOTAL NET WORTH 5.55 5.77 6.46 7.51 8.86

DEBT/EQUITY 0.81 0.58 0.35 0.15 -

TOTAL NET WORTH 5.55 5.77 6.46 7.51 8.86

TOTAL OUTSIDE LIABILITIES 9.89 9.16 8.32 7.51 6.75

TOL/TNW 1.78 1.59 1.29 1.00 0.76

PBDIT 3.22 4.23 5.41 7.07 8.83

INTEREST 0.94 0.88 0.75 0.63 0.51

INTEREST COVERAGE RATIO 3.44 4.81 7.17 11.20 17.42

WDV 7.88 6.75 5.79 4.96 4.26

TERM LOAN 4.50 3.37 2.25 1.12 -

FACR 1.75 2.00 2.57 4.41 -

 9. LICENSE & APPROVALS

 Obtain the GST registration.

 Additionally, obtain the Udyog Aadhar registration Number.
 Fire/pollution license as required.
 FSSAI License
 Choice of a Brand Name of the product and secure the name with Trademark if
required.

10. Implementation Schedule

S.N. Activity Time Required

(in Months)

1 Acquisition Of premises 1-2

2 Procurement & installation of Plant & Machinery 1-2

3 Arrangement of Finance 1-2

4 Requirement of required Manpower 1

Total time Required (some activities shall run 5-6 Months

concurrently)

THANK YOU!