How to Start Bakery and Confectionery Industry

The bakery Industry is counted as one of the largest segments among the food processing sector in India. This industry is separated into three categories, namely; (1) bread, (2) biscuits, (3) cakes and pastries; and it offers huge opportunities for innovation, growth, and job generation.

 

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Similarly, the confectionery industry which is a producer of various types of chocolates, chewing gums, and candies as well as other products made from cocoa, is a group of large companies all around the world. The three main categories that fall under this industry include Chocolate, non-chocolate, and chewing gum.

 

Related Projects: - Bakery and Confectionery Products

 

Both Bakery and confectionery are the kind of shops that sells food items. But the main difference between a bakery and confectionery is that a bakery is a place where you can buy baked food items however confectionery is a place where sweet food items are sold.

 

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Regional Growth and Market Scope of Bakery & Confectionery Industry

According to the Bakery & Confectionery Global Market Report, the global bakery and confectionery market is estimated to grow from $887.82 billion in 2020 to $938.97 billion in 2021 at a compound annual growth rate or at a CAGR of 5.8%. And this market is also expected to reach at $1221.28 billion in the year, 2025 at a CAGR of 7%.


Fig: Global Bakery & Confectionary Industry, by region, 2021-2028

(Source: Data Bridge Market Research)

 

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In 2020Asia Pacific was marked as the largest region in the global bakery & confectionery market that accounted for 43% of the market. The second-largest region accounted for 22% of the global market was the Western Europe. And Africa was the smallest region in the global bakery & confectionary market.


Related books: - Bakery, Confectionery, Ice Cream, Chocolate And Cocoa Manufacturing

 

Regional Growth in the Global Bakery and Confectionery Market

By country, the global bakery & confectionery market has covered the following countries so far:-

 -Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, and the USA.

By region, the global bakery & confectionary market has covered the following regions:-

-Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

 

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Due to the increase in the domestic consumption of the products along with the strong presence of various food & beverages manufacturers in the global market, Europe is leading in the bakery and confectionery inclusion market.

Also, Asia-Pacific region is expected to expand at a significant growth rate over the forecasted period of 2021 to 2028 because of the following points:-

- Rapidly increasing consumption of inclusions,

Innovative usage in line with the flavor profile, and

Consumer’s requirements in this particular region.

 

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Major players of Bakery and Confectionery Industry

Major companies in the Global Bakery and Confectionery market include:-

·         Grupo Bimbo

·         Finsbury Food Group

·         McKee Foods

·         Yamazaki Baking

·         BreadTalk Group

 

Related Videos: - Bakery and Confectionery Products: Food Confectionery, Chocolate, Candy, Toffee, Chewing Gum, Jelly, Cream, Biscuits, Bread, Cakes, Pastries, Cookies

 

How to start Bakery and Confectionery Industry (Business Plan)

The following listed points will help you as a guide to starting your bakery and confectionery industry;

-          Create a business plan: Decide the budget distribution, plan the future development of your bakery & confectionery business, etc.

-          Choose location: The ideal location for a bakery & confectionery shop is a reputed market or high-end shopping crowded streets. Ideally, front area shops on the ground floor, which is easily accessible and visible, is apt for the bakery & confectionery business.

-          Get all required licenses:  You need five licenses to start your bakery & confectionery business which are; FSSAI license, GST Registration, Local Municipal Corporation Health License, Police Eating House license, and the Fire License.

-          Manpower: Get the required manpower for your industry/business

-          Buy Equipment: Buy all needed machinery and equipment that you will need in your business for example; Oven, Deep Fridge, Cooling Fridge, Working table, Gas stove, Cylinders, storage utensils, etc.


Fig: Cookies Depositor

-          Marketing & Branding: With the help of a professional designer, get a properly designed logo and display board and do branding on various platforms as well.

 

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Reasons of Growth

- Increasing demand for processed food with some sort of value addition

- Rising disposable incomes

- Rapid urbanization

- Growing demand for convenience snacks and confectionaries

Conclusion

Niir Project Consultancy Services (NPCS) provides detailed project reports, Books, Business Plan for Manufacturing Plant, Start-up Ideas, and Business Ideas for Entrepreneurs, etc. You can also get the detailed and analyzed project report on “How to start Bakery & Confectionery Industry”.

MamSh_2021

 

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And before diversifying/venturing into any product, wish to study the following aspects of the identified product:


• Good Present/Future Demand
• Export-Import Market Potential
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The report first focuses on enhancing the basic knowledge of the entrepreneur about the main product, by elucidating details like product definition, its uses and applications, industry segmentation as well as an overall overview of the industry sector in India. The report then helps an entrepreneur identify the target customer group of its product. It further helps in making sound investment decision by listing and then elaborating on factors that will contribute to the growth of product consumption in India and also talks about the foreign trade of the product along with the list of top importing and top exporting countries. Report includes graphical representation and forecasts of key data discussed in the above mentioned segment. It further explicates the growth potential of the product.

The report includes other market data like key players in the Industry segment along with their contact information and recent developments. It includes crucial information like raw material requirements, list of machinery and manufacturing process for the plant. Core project financials like plant capacity, costs involved in setting up of project, working capital requirements, projected revenue and profit are further listed in the report.


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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

 

 

Ø  Introduction

·         Project Introduction

·         Project Objective and Strategy

·         Concise History of the Product

·         Properties

·         BIS (Bureau of Indian Standards) Provision & Specification

·         Uses & Applications

 

Ø  Market Study and Assessment

·         Current Indian Market Scenario

·         Present Market Demand and Supply

·         Estimated Future Market Demand and Forecast

·         Statistics of Import & Export

·         Names & Addresses of Existing Units (Present Players)

·         Market Opportunity

 

Ø  Raw Material

·         List of Raw Materials

·         Properties of Raw Materials

·         Prescribed Quality of Raw Materials

·         List of Suppliers and Manufacturers

 

Ø  Personnel (Manpower) Requirements

·         Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

 

Ø  Plant and Machinery

·         List of Plant & Machinery

·         Miscellaneous Items

·         Appliances & Equipments

·         Laboratory Equipments & Accessories

·         Electrification

·         Electric Load & Water

·         Maintenance Cost

·         Sources of Plant & Machinery (Suppliers and Manufacturers)

 

Ø  Manufacturing Process and Formulations

·         Detailed Process of Manufacture with Formulation

·         Packaging Required

·         Process Flow Sheet Diagram

 

Ø  Infrastructure and Utilities

·         Project Location

·         Requirement of Land Area

·         Rates of the Land

·         Built Up Area

·         Construction Schedule

·         Plant Layout and Requirement of Utilities

 

Project at a Glance

Along with financial details as under:

 

  •     Assumptions for Profitability workings

  •    Plant Economics

  •    Production Schedule

  •    Land & Building

            Factory Land & Building

            Site Development Expenses

  •    Plant & Machinery

             Indigenous Machineries

            Other Machineries (Miscellaneous, Laboratory etc.)

  •    Other Fixed Assets

            Furniture & Fixtures

            Pre-operative and Preliminary Expenses

            Technical Knowhow

            Provision of Contingencies

  •   Working Capital Requirement Per Month

             Raw Material

            Packing Material

            Lab & ETP Chemical Cost

           Consumable Store

  •   Overheads Required Per Month And Per Annum

         Utilities & Overheads (Power, Water and Fuel Expenses etc.)

             Royalty and Other Charges

            Selling and Distribution Expenses

  •    Salary and Wages

  •    Turnover Per Annum

  •   Share Capital

            Equity Capital

            Preference Share Capital

 

  •    Annexure 1:: Cost of Project and Means of Finance

  •    Annexure 2::  Profitability and Net Cash Accruals

                Revenue/Income/Realisation

                Expenses/Cost of Products/Services/Items

                Gross Profit

                Financial Charges     

                Total Cost of Sales

                Net Profit After Taxes

                Net Cash Accruals

  •   Annexure 3 :: Assessment of Working Capital requirements

                Current Assets

                Gross Working. Capital

                Current Liabilities

                Net Working Capital

                Working Note for Calculation of Work-in-process

  •    Annexure 4 :: Sources and Disposition of Funds

  •    Annexure 5 :: Projected Balance Sheets

                ROI (Average of Fixed Assets)

                RONW (Average of Share Capital)

                ROI (Average of Total Assets)

  •    Annexure 6 :: Profitability ratios

                D.S.C.R

                Earnings Per Share (EPS)

               

             Debt Equity Ratio

        Annexure 7   :: Break-Even Analysis

                Variable Cost & Expenses

                Semi-Var./Semi-Fixed Exp.

                Profit Volume Ratio (PVR)

                Fixed Expenses / Cost 

                B.E.P

  •   Annexure 8 to 11:: Sensitivity Analysis-Price/Volume

            Resultant N.P.B.T

            Resultant D.S.C.R

   Resultant PV Ratio

   Resultant DER

  Resultant ROI

          Resultant BEP

  •    Annexure 12 :: Shareholding Pattern and Stake Status

        Equity Capital

        Preference Share Capital

  •   Annexure 13 :: Quantitative Details-Output/Sales/Stocks

        Determined Capacity P.A of Products/Services

        Achievable Efficiency/Yield % of Products/Services/Items 

        Net Usable Load/Capacity of Products/Services/Items   

       Expected Sales/ Revenue/ Income of Products/ Services/ Items   

  •    Annexure 14 :: Product wise domestic Sales Realisation

  •    Annexure 15 :: Total Raw Material Cost

  •    Annexure 16 :: Raw Material Cost per unit

  •    Annexure 17 :: Total Lab & ETP Chemical Cost

  •    Annexure 18  :: Consumables, Store etc.,

  •    Annexure 19  :: Packing Material Cost

  •    Annexure 20  :: Packing Material Cost Per Unit

  •    Annexure 21 :: Employees Expenses

  •    Annexure 22 :: Fuel Expenses

  •    Annexure 23 :: Power/Electricity Expenses

  •    Annexure 24 :: Royalty & Other Charges

  •    Annexure 25 :: Repairs & Maintenance Exp.

  •    Annexure 26 :: Other Mfg. Expenses

  •    Annexure 27 :: Administration Expenses

  •    Annexure 28 :: Selling Expenses

  •    Annexure 29 :: Depreciation Charges – as per Books (Total)

  •   Annexure 30   :: Depreciation Charges – as per Books (P & M)

  •   Annexure 31   :: Depreciation Charges - As per IT Act WDV (Total)

  •   Annexure 32   :: Depreciation Charges - As per IT Act WDV (P & M)

  •   Annexure 33   :: Interest and Repayment - Term Loans

  •   Annexure 34   :: Tax on Profits

  •   Annexure 35   ::Projected Pay-Back Period And IRR