PFR Final Project On A Bakery Shop

PROJECT FEASIBILITY REPORT ON
ESTABLISHMENT OF BAKERY SHOP

“CAKE & ART”
A project
Submitted in partial fulfillment of the requirements
For the award of the degree of
BACHELOR OF BUSINESS ADMINISTRATION
BY
VIVEK KUMAR BBA/40560/20
ABHISHEK KUMAR MANGALAM BBA/40564/20
HRITWIK KASHYAP BBA/40586/20
HIMANSHU KUMAR BBA/40595/20
AMISH KUMAR CHANDRA BBA/40605/20
DEPARTMENT OFMANAGEMENT
BIRLA INSTITUTE OF TECHNOLOGY,
MESRA, RANCHI – 835215
(LALPUR EXTENSION CENTER, RANCHI)
CAKE AND ART
CERTIFICATE OF DECLARATION
This is to certify that the work presented in this project

entitled "project feasibility report" on BAKERY SHOP
in partial fulfillment of the requirement for the award of
degree of Bachelor of Business Administration of BIRLA
INSTITUTE OF TECHNOLOGY MESRA, LALPUR
FEASIBILITY REPORT Page | 2
CAKE AND ART
(EXTENSION CENTRE) RANCHI is an authentic work 3
carried out under my supervision and guidance.
To the best of my knowledge, the content of this project

doesn't forma basis for the award of any previous degree
to anyone else.
PROF. PRADEEP MUNDA
DEPARTMENT OF MANAGEMENT
BIRLA INSTITUTE OF TECHNOLOGY
LALPUR EXTENSION CENTRE
ACKNOWLEDGEMENT
We express our deep gratitude to our guide DR. PRADEEP
MUNDA (SUBJECT FACULTY) for his valuable guidance,
constructive and untiring endeavors throughout the execution
of the project. He was ever willing to share his wide experience
and rich knowledge. He has being hearing our views and
clearing the doubts on the subject with patience and always
extended his valuable advice.
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4
we have a profound sense of gratitude for our guardian and
friends for their co-operation, constant support and
encouragement throughout the research. Above all we are
thankful to the almighty without whose blessing the tasks
would have been incomplete.

CAKE AND ART
CERTIFICATE OF APPROVAL
The foregoing project entitled "BAKERY

SHOP" is hereby approved as a creditable
study of research topic and has been
presented in satisfactory manner to warrant
its acceptance as prerequisite to the degree
for which it has been submitted
It is understood that by this approval, the

undersign do not necessarily endorse any
conclusion drawn or opinion expressed
therein, but approved the report for the
purpose for which it is submitted.
(INTERNAL EXAMINER) (EXTERNAL EXAMINER)

CAKE AND ART
CONTENTS
S.NO PARTICULARS PAGE

NO.
1 ACKNOWLEDGEMENT 02
2 SUMMERY 04
3 INTRODUCTION 05 -09
4 PROJECT AT A GLANCE 10 -11
5 SWOT ANALYSIS 12 -14
6 TECHNICAL ANALYSIS 15 -21
7 LICENCING PROCESS 22
8 PRODUCTION AND SALES STRATEGY 23 -30
9 FINANCIAL ANALYSIS 31 -54
 LOAN
 COST OF PROJECT
 TRADING AND PROFIT & LOSS ACCOUNT
 BALANCE SHEET
 CASH FLOW STATEMENT
 RATI0 ANALYSIS
10 MAKETING FEASIBILITY 55 -64

 MAKET ASSESSMENT
 COMPETITORS
 PRICING OF PRODUCT (MENU)
11 HUMAN RESOURCE MANAGEMENT 65 -68

 ROLE AND FUNCTION OF HR
 REQUIREMENT OF HUMAN RESOURCE
 SPECIFIC WORKS OF EMPLOYEES
12 CONCLUSION 69
13 BIBLIOGRAPHY 70
14 QUESTIONNAIRE 71 -72

CAKE AND ART
EXECUTIVE SUMMARY
Feasibility reports address things like where and how the

business will operate. They provide in-depth details about the
business to determine if and how it can succeed, and serve as a
valuable tool for developing a winning business plans.
This project is a feasibility report for establishing a bakery. The

name of our partnership firm has been decided as ‘CAKE AND
ART’. We will enter into the business with breads, buns,3D cake,
toasts, cream rolls & cakes, as our chief products.
This project studies and analyses various parameters that decide
the establishment of a bakery and whether the venture shall be
feasible or not.
The project has been divided into four major branches of
feasibility study, namely, technical, human resource, marketing
and financial.
Our team has made an all out effort to present a comprehensive
feasibility report and depict the feasibility of the project.

CAKE AND ART
INTRODUCTION
TO
FEASIBILITY

CAKE AND ART
DEFINITION OF FEASIBILITY 9
A feasibility report looks at the viability of an idea with an emphasis on identifying

potential problems and attempts to answer one main question: Will the idea work
and should you proceed with it?
Before you begin writing your business plan you need to identify how, where, and to
whom you intend to sell a service or product. You also need to assess your
competition and figure out how much money you need to start your business and
keep it running until it is established.
Feasibility studies address things like where and how the business will operate.
They provide in-depth details about the business to determine if and how it can
succeed, and serve as a valuable tool for developing a winning business plan.
Why Are Feasibility Reports so Important?

Feasibility reports contain comprehensive, detailed information about your business
structure, your products and services, the market and help you to know the logistics
of how you will actually deliver a product or service, the resources you need to make
the business run efficiently, as well as other information about the business.
The Components of a Feasibility Report

 Description of the Business: The product or services to be offered and how
they will be delivered.
 Market Feasibility: Includes a description of the industry, current market,
anticipated future market potential, competition, sales projections, potential
buyers, etc.
 Technical Feasibility: Details how you will deliver a product or service (i.e.,
materials, transportation, where your business will be located, technology
needed, etc.).
 HR Feasibility: It is about use of human resource properly
 Financial Feasibility: Projects how much start-up capital is needed, sources
of capital, returns on investment, etc.
 Conclusions: Discusses how the business can succeed. Be honest in your
assessment because investors won’t just look at your conclusions they will
also look at the data and will question your conclusions if they are unrealistic.

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INTRODUCTION TO
BAKERY

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HISTORY 11
Baking is the technique of prolonged cooking of food by dry heat acting by

convection, normally in an oven, but also in hot ashes, or on hot stones. It is
primarily used for the preparation of bread, cakes, pastries, pies, cookies, biscuits
and crackers. Such items are sometimes referred to as "baked goods," and are sold
at a bakery. A person who prepares baked goods as a profession is called a baker.
It is also used for the preparation of baked potatoes, baked apples, baked beans,
and various other foods.
Many commercial ovens are provided with two heating elements: one for
baking, using convection and conduction to heat the food, and one for broiling or
grilling, heating mainly by radiation.
The baking process does not require any fat to be used to cook in an oven. Some
makers of snacks such as potato chips or crisps have produced baked versions of
their snack items as an alternative to the usual cooking method of deep-frying in an
attempt to reduce the calorie or fat content of their snack products.
In ancient history, the first evidence of baking occurred when humans took wild
grass grains, soaked them in water, and mixed everything together, mashing it
into a kind of broth-like paste. The paste was cooked by pouring it onto a flat, hot
rock, resulting in a bread-like substance. Later, this paste was roasted on hot
embers, which made bread-making easier, as it could now be made anytime fire
was created.
Baker putting bread into an oven with a peel, 1568

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Baking flourished in the Roman Empire. In about 300 BC, the pastry cook
became an occupation for Romans. This became a respected profession
because pastries were considered decadent, and Romans loved festivity
and celebration. Thus, pastries were often cooked especially for large
banquets, and any pastry cook who could invent new types of tasty treats
was highly prized. Around 1 AD, there were more than three hundred
pastry chefs in Rome, and wrote about how they created all sorts of diverse
foods, and flourished because of those foods.. A great selection of bakery
products like breads and pastries, with many different variations, different
ingredients, and varied patterns, were often found at banquets and dining
halls. The Romans baked bread in an oven with its own chimney, and had
mills to grind grain into flour.
Eventually, because of Rome, the art of baking became known throughout
Europe, and eventually spread to the eastern parts of Asia. Bakers often
baked goods at home and then sold them in the streets. In London, pastry
chefs sold their goods from handcarts. This developed into a system of
delivery of baked goods to households, and demand increased greatly as a
result. In Paris, the first open-air café of baked goods was developed, and
baking became an established art throughout the entire world, thus
leading to the successful birth of bakeries and baked products.

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PROJECT
AT A
GLANCE

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Name : CAKE AND ART
Products : Breads, Buns, muffins, Pastry, Toasts, Cream Rolls

and our special 3D cake
Status : Medium Scale
Address : Near- LALPUR Chowk , RANCHI - 834001
Type of firm : Partnership Firm
Date of incorporation : 1st April, 2022
Cost of project : Rs. 62,18,180
Source of finance : Partners’ capital - Rs.30,47,525

Bank Loan - Rs.31,09,090
Mission statement : “Our mission is to provide quality products at lowest

Prices and 3D cake in all over Ranchi ” .
Vision : “To be the leader of quality bakery products provider

in the region. This will be achieved by the
dedication of each employee in conjunction with
supportive participation from management at all
levels.”

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SWOT
ANALYSIS
Strengths Opportunities
Threats Weaknesses

CAKE AND ART
SWOT ANALYSIS 16
A scan of the internal and external environment is an important part of the strategic
planning process. Environmental factors internal to the firm usually can be classified
as strengths (S) or weaknesses (W), and those external to the firm can be classified
as opportunities (O) or threats (T). Such an analysis of the strategic environment is
referred to as a SWOT analysis.
The SWOT analysis provides information that is helpful in matching the firm's
resources and capabilities to the competitive environment in which it operates. As
such, it is instrumental in strategy formulation and selection.
The SWOT Analysis of our firm is
Strengths
 The prices of our products are very reasonable and less than our competitors.
 New and different varieties of products have been introduced which shall give
us the benefit of product differentiation.
 Our sales are through tie-ups with grocery stores and supermarkets across
Ranchi. This gives us a wide consumer base and a chance to serve different
levels of customers.
 The firm also gives a little more commission to its distributors to encourage
dealership.
 The labor required does not need any specific qualification & skill and hence
can be made easily available.
Weaknesses
 Bakery products are perishable items hence need to be sold as soon as
possible to gain maximum benefit. The customers also prefer fresh products.
But the far location of the factory can increase the time between baking and
actual selling.
 Our bakery has introduced few bakery items from the possible product lines.
We are not making cakes, pastries, chocolates and other various products.
This limited menu can be seen as a weakness.
 We are not introducing our own outlets but are selling through tie-ups across
the city. This delays our brand establishment time.

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Opportunities
 Expansion of the product line in the future with the introduction of biscuits and
cakes and pastries.
 Scope for expansion with the establishment of our own outlets and bakery
cafés
 Growing concern for health and multigrain food products shall become a
reason for increase of our sales of food items such as brown breads, tomato-
spinach bread and white-coriander bread.
Threats
 Severe competition in the industry with well-established players like United
King, Continental Bakery, Sugar and Spice, Disco Bakery etc.

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TECHNICAL FEASIBILITY
Technical feasibility is a standard practice for companies to conduct feasibility studies
before commencing work on a project. Businesses undertake a technical feasibility study
to assess the practicality and viability of a product or service before launching it.
Whether you are working as a product engineer, product designer or team manager,
there may be plenty of situations in your career where you have to prepare a technical
feasibility study. In this article, we discuss what is technical feasibility, explain how to
conduct one and share tips on writing a feasibility study report.
RAW MATERIAL
Raw materials are easily available at nearby location of our factory.
Raw material which is required are Cake pre-mix, Flour, yeast,
water, sugar, butter ,flavour , cream, honey beaking power, fruit
chunks,etc.
LAND AND BUILDING
For manufacturing of bakery products, we will require a land of 2400sq feet.
LAND & Covered Area Requirement

SR NO PARTICULAR AREA COST PRESENT AMOUNT
SQ PER SQ BOOK
FEET FEET VALUE
Factory
1 Sweet 600 800 480,000 480
production
room
2 Fresh cake 400 800 320,000 320
pastries
production
room
3. Dry cake 400 800 320,000 320
4. Biscuits 400 800 320,000 320
production
5 Snacks 600 800 480,000 480
production

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MACHINE REQUIRED
Machines are easily available nearby the market.
Deck oven
Dough mixer
Dough molder
Sugar grinder
Packing machine
Toast slicer/bread slicer
Freezer
Mixer
Rolling racks
Trays
BAKERY MACHINERY LAYOUT
1.Proofer/Retarder or Final Steam proofer

CAKE AND ART
2. Single rack 20
3. Rack for automatic loder conveyor
4. Cyclothermic Deck oven
5. Automatic Loader/unloader
6. Reach-in Refrigertor
7. work table
8. Refigerated Work Table
9. Semi-Automatic Divider Rounder.
10. Slicver
11. Mixed 100kg (fixed bowl)
12.Volumetric Bread Proofer.
13. Panini Machine.
14.Conical Rounder.
15. Overhead Bread Proofer.
16. CG/200Kg (2S) STL-H
17. Water Meter (qty.2)
18. Reversible Sheeter c/w stand.
19. Mini Croissant Former c/w stand.
20. Planetary Mixer table top
21. Mini Rack Oven.

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INTERIOR OF THE BEKARY STORE
Maintainance And Operating cost

Annual Repair &Maintenance of the plant and machinery is
estimated to be 1% from Year 1-4 and 1.5% from Year 5-10 of
the total machinery cost.
Operating cost for all machinery is very low. It only require electricity

CAKE AND ART
which is not much expensive

22
5 biggest operating cost for bakeries are as follows:
1. Balancing Price of Goods Vs. Volume Produced

There are three types of bakeries – those that specialise in artisan creations, those that
exist on a local scale, and those that operate on a national level. Often you’ll find that
bakeries produce goods at the volume proportional to their size. For example, artisan
bakeries will take longer to create a single cake. This is because the trade requires time
and care, usually done at the request of an individual client. Bakeries that operate on a
national scale will mass-produce goods, have thousands of employees and usually
operate on assembly lines to meet massive distribution needs.
2. Controlling Cost/Number of Ingredients

If you want to find out the cost of one of your recipes, check out Pricing Baked Goods.
This is a free calculator which lets you view the price of each ingredient based on the
quality and quantity bought. This allows for a comprehensive look at the gross cost of
producing one of your products. Whether your cost of ingredients derives from their
quality or volume (or both), it is paramount that you control your ingredient use to a
sustainable and measurable level.
3. Labour Costs
Typical labour costs for bakeries can range between 20% and 30% of total operational
costs. This can be a huge cost sink if mismanaged, so it is hugely important to ensure that
the right people are working in the right places at the right time. Make sure that people
are taking breaks when they need to, for the correct amount of time. Know whether your
staff are arriving early or late and therefore fulfilling scheduled labour hours without
going over what is assigned.
4. Overhead Costs
Do we know what operational costs you are paying for? No matter what, always keep
track of your business’s utility bills. You might find that you are excessively using
electricity or water in some of your operations. While they are obviously essential to
the running of your business – just make sure that it is going only to where it needs

CAKE AND ART
LOCATION 23
Location of our plant is at mesra, ranchi and location of our shop is

at Hazaribagh road, lalpur chowk,ranchi 834001.
SOME SKILL WORKER REQURIED FOR BAKERY BUSINESS;
SKILL- 7 person
Manager/ Supervision/Assistant
Executive Chefs, assistant chef, machine operator
UNSKILL- 2 person
Dishwasher, Driver.
Outlet for Technical person & Non-Technical Person

Technical Person – 1
Non- Technical- 2-
PRODUCTION CAPACITY OF MACHINERY AT

CAKE AND ART
BEKARY BUSINESS: 24
DETERMINING THE CAPACITY OF THE BAKERY
The size of the breadmaking unit, following a market survey, is determined in accordance
with the specific nature of the demand (type of product, real and potential demand,
etc.). Several parameters allow this capacity to be defined:
· Daily consumption of flour,
· Equipment capacity.
To translate this capacity into raw material consumption (flour), the following practical
rule is applied:
1 kg of flour corresponds to 1.33 kg of baked bread
The capacity of the equipment (see chapter 4) is determined after the production
programme and the available human resources have been defined (number of shifts per
day).
ORGANISATION OF THE WORKING AREA OF THE BAKERY
The rooms required for an efficient bakery are as follows:
1. Storage room for flours and other consumables.

2. Kneading room.
3. Fermentation and oven room.
4. Cold storage for finished products.
5. Packaging room.
6. Delivery room for wholesale trade.
7. Shop for retail sales.
8. Area for personnel.

CAKE AND ART
LICENCING PROCESS 25
FSSAI Registration & Food Safety License for Bakery Products
Required Documents for Basic FSSAI Registration

1. Authorized person address proof
2. Passport size photo
3. Business name and address
4. FSSAI declaration form
5. Nature of business details
Required Documents for State FSSAI License

1. Rental Agreement of Business Premises.
2. ID Proof of the Concerned Person (Aadhaar Card / Driving
License / Passport / Voter ID)
3. If any Government Registration Certificates (Company
Incorporation Certificate / Firm Registration / Partnership Deed /
Pan card / GST Registration Number / Shop and Establishment
Registration / Trade License)
4. If the applicant is private limited company or partnership firm then
they should provide MOA & AOA or Partnership deed copy
5. For applying State License any One of the following certificate is
compulsory (Trade license, Shop and Establishment Registration,
Panchayath License, Corporation License , Municipality License )
6. Nature of Business.
7. FSSAI declaration form.

CAKE AND ART
PRODUCTION AND SALES STRATEGY 26
TABLE OF INGRIDENTS
 Wheat
 Commercial of wheat
 Composition of wheat
 Utilization of wheat
Other Grains Ingredients

 Durum
 Special Quality Considerations
 Utilization
 Rye
 Chemical Physical Characteristics
 Triticale
 General Characteristics
 Quality, Composition, and Nutritional Factors
 Utilization
 Rice
 Structure and Composition
 Quality Factors
Use of Rice in the Baking Industry

 Millet
 Varieties and Distribution
 Structure of the Seed
 Food Uses
 Corn
 Quality Factors
 Traditional Food Products From Corn
 Oats
 Classification
 Barley
 Description of Plant and Seed
 Utilization of Barley

CAKE AND ART
Shortenings, Emulsifiers and Antioxidants 27
 The Chemistry of Fats and Oils

 Shortenings From Natural Sources
 Vegetable Shortenings
 Quality Assurance of Fat and Oil Products
 Tests
 Specifications
 Emulsifiers
 Lecithin
Water and Salt

 Water
 Regulations Affecting Potable Water
 Water Treatment
 Effects of Water Impurities on Bakery Products
 Water Treatment Method Used by Bakeries
 Analyses of Water
 Salt
 Salt in the Human Diet
 Containers and Storage
 Types of Salt
 Salt with Additives
 Salt Substitutes in Bakery Products
 Analytical Methods
Products of Bakery Industries

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Raw Materials 28
 Flour
 Yeast
 Water
 Salt
 Sugar
 Bulk Solids
 Flavour
 Enrichment
 Bread Manufacture
 Straight Dough Method
 Sponge Dough Method (Semi-Automatic)
Recipe for Breads

 White Pan Bread
 Milk Bread
 Sweet Bread
 Rice Bread
 Closed Pan Bread
 Sponge Dough
 Final Dough
 Make up and Baking of the Bread
 Egg Bread
 French Bread
 Straight Dough Method
 Raisin Bread
 Whole Wheat Bread
Biscuit Raw Materials

 Sweetener
 Shortening
 Milk
 Leavening Agents and Nutrients

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Recipes for Various Types of Biscuits 29
 Arrowroot Biscuit
 Shell Biscuits
 Digestive Biscuits
 Honey Comb or Crimp Biscuits
 Almond Fruit Biscuits
 Walnut Biscuits
 Soda Biscuit
 Coconut Biscuits
 Nice Biscuits
 Saltish Biscuits
 Marie Biscuits
 Ester Biscuits
 Sandwich Type Biscuits
 Cheese Biscuits
 Rice Biscuits
 Corn Flour Biscuits
 Coffee Biscuits
 Victoria Biscuits
 Edinburg Biscuits
 Snow Drop Biscuits
 Luncheon Biscuits
Marketing Plan
CAKE AND ART
Marketing Vision 30
Cake and art is built around the belief that eating healthy, hygienically prepared food
products can have a significant impact on a person's health and attitude, as well as the
environment. Cake and art also believes that customers can have great tasting baked
goods and quick-dining experience if the right attention is paid to satisfy changing
customer preferences for quality and consistency and be responsive to various seasons
and festive of the year.
Cake and art will launch a first outlet location at Lalpur and Mesra simultaneously to
serve customers from all walks of life and build a local brand which can be leveraged into
additional locations in the coming years. Cake and art will communicate through
advertising, referral marketing, and a loyalty program.
This marketing plan will allow the owner, to focus his marketing efforts by taking the long
view, and looking for results on a daily and weekly basis to see that the chosen tactics are
successful.
Goals
Personal Goals:
• Devote at least 25 hours per month specifically to marketing.
• Obtain at least one speaking engagement to employees per month related to bakery
food.
• Set up operations in such a way that it is possible to take two weeks' vacation in second
year of operation.
Business Goals:
• Achieve total annual operating profit of Rs 10,598,000 in year 2.
• Achieve average monthly spend per customer of Rs 1500 by end of year 3.
Strategic Goals:
 Expansion for new products in the fourth year of operation after the concept and
brand has been proven.
 Achieve 99.5% customer satisfaction (199 in 200 customers leaves satisfied)
 Achieve 35% market of bakery goods customers by end of year 3
Tactical Goals:
• Reach 5,000 club card holders by end of year 3
CAKE AND ART
• Achieve Cake and art membership of 3,500 by end of year 3

• Have 15 business referral partners by end of year 3 31
The Product Mix

Most bakery units vary their product mix depending upon the size of store and its
location. Cake and art will carry a broad selection of bakery products, as well s variety of
non-bakery items instead of selling typically more limited range of bakery: items. In the
beginning retail sales mix by product type will be approximately 73% bakery items, 14%
food items and 8% specialty and branded beverages along with light meal
Market Segmentation
Cake and art focuses on the middle and upper income markets. The main demographic
and psychographic segments in this market are young house wives, children, students
and business people of 15 year old to 55 year old. They represent more than 70%
population of Ranchi and represent groups of people sharing similar behavior patterns
and reasons for patronizing Cake and art bakery products.
Cake and art snacks and sandwiches is a haven for busy and successful business men who
want to enjoy and escape from daily chores of work life. These people will value the high
quality product presented without pretension. Our customers will also appreciate the fun
and fast service - whether celebrating a birthday or stopping in before going home. These
market segments consume the majority of confectionery and bakery products. This will
establish a healthy, consistent revenue base to ensure stability of the business, while
high visibility and competitive products and service are critical to capture this segment of
the market.
Marketing Mix Strategies
Our customer-centered strategies seek to optimize price, product mix and promotion as
a means to drive sales and profits. This approach is achieved by remaining focused on key
success factors of affordability, product variety, and choice and customer convenience.
We will become known as unique dining experience as well as a superior bakery and
confectionery shop.
Product Strategy
The proposed bakery will be offering a large variety of quality products at best prices.

CAKE AND ART
Bakery product mix can be extended to different width, length and depth. The product
mix will be including different types of fresh cream cakes, dry cakes, snacks, sweets, 32
biscuits, etc… As the production will depend on the sales potential, the sales are
estimated depending upon the industry norms. The project will be having two sales
outlets of its own and the rest of the production will be sold to other bakeries. It is
hereby assumed that sales to other bakeries will be at a trade discount of 20%.
Sale Forecast
After establishing of cake and art Bakery as 'the place for quality baked products and
quick dining experience for first three years we project aggressive sales increases for the
following years for POS and carry-out while keeping costs constant. Keeping food costs
low while sale increases is vital to the profitability of cake and art.
Price strategy
Our pricing objective will be revenue maximization through introduction of new products
into market with the ultimate aim of growing market share and establishing long term
customer base. This will be followed by best pricing strategy consistent with the
differentiation objective, to provide added value at a reasonable rate with quantity
discounts, trade discounts and seasonal/festive discounts. Promotional pricing will be
applied for new bakery items and value pricing will be used under adverse economic
conditions to retain sales. However for premium quality product (non-standard),
products made for special orders and products made on short notice, optional product
pricing and skim pricing strategy of 15% more than the original price will be followed.
Place Strategy
The outlets will be centrally and conveniently located within a highly developed
commercial area in Lapur and Mesra. For a heavy competition and proper positioning of
the brand name, the outlets will be opened in the vicinity of competitors (Unique Bakery,
Royal Baker, Rocky Bhai Bakers, United Bakery, Cakes & Bakes etc.). This will be a direct
marketing of the brand name for the best quality and the best price. Marketers need to
determine where the product will be sold and methods of distribution including
transportation and storage. Following factors will be taken into consideration when
opening outlets:
 Quality built environment'

 Property values (realistic)
CAKE AND ART
 Rent levels (realistic)

33
 Organized promotions
 Good management of shopping center or downtown
 Business compatibility
 Compatible land use patterns
SALES OF PRODUCT
 Contact local bakery shop

 Selling our products wholesale results in earning less profit
 Contact local wedding planner
 We sell our product in retail around 60 pieces per day or by direct sale we sell
around 40 to 50 per day
 We sell our 3d cake first time in Jharkhand that make our company special.
 Our Company sell 50% of cake production nearby Mesra area.
 For retail shopping we sell our products in some famous areas of Ranchi like Ratu
Road, Hindpiri ,Kake Road, Firayalal, Sujata chowk, Doranda.

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FINANCIAL
FEASIBILITY

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35
LOAN
WE are taking business loan from SBI for our
bakery shop
Reason for taking business loan :-

 Nature of Facility : Drop-line Overdraft facility
 Target Group : All Business units engaged in manufacturing, services
activities along with self-employed and professional individuals,
wholesale/retail trade.
 Quantum of loan (Min/Max) 10 times of average monthly balance in
current account in previous 12 months subject to:
o Min: Above Rs. 10 lacs
o Max: Less than Rs. 25 lacs.
 Margin (%) 10% which will be ensured through stocks and receivable
statement
 Pricing Competitive Pricing Linked to MCLR
 Collateral Security : Minimum collateral of 40%
 Repayment Period upto 60 Months
 Unified Charges : Rs. 7500/- (comprising of processing fee, EMI charges,
documentation charges, Inspection, commitment charges and remittance
charges)

CAKE AND ART
Note: 1 Cost of Land 36

No. Particular Amount
1. Basic Cost of Land 1480000
2. 1% Commission of Agent 14800
3. Stamp duty @ 10% 148000
TOTAL 1642800
Note: 2 Cost of Construction

No Particular Area(in sq. feet) Amount
1. Production area 1813 1313950
2. Storage area 300 230500
3. Administrative office 375 324750
4. Water room & wash room 244 174600
5. Finished goods storage 300 237500
6. Loading Dock 168 109700
7. Parking space 150 52500
8. Security cabin 56 27400
9. Open land 194 102600
TOTAL 3600 2340000
Note: 3 Machinery
No. Particular Quantity Price per Amount
unit
1 Deck oven 1 264000 264000
3 Dough mixer 3 46500 139500
4 Dough molder 2 42350 84700
5 Sugar grinder 1 35000 35000
6 Packing machine 2 47650 95300
7 Toast slicer/bread slicer 2 38000 76000
8 Freezer 2 16400 32800
9 Mixer 1 3600 3600
10 Rolling racks 6 7500 45000
11 Trays 100 200 20000
12 Stainless steel - - 83400
utensils/tools/equipment knives
TOTAL 879300

CAKE AND ART
Note: 4 Cost of Furniture 37

unit
1 Sofa Set 2 10400 20800
2 Revolved Chairs 4 1500 6000
3 Comfort Chairs 8 950 7600
4 Office desk 3 3000 9000
5 Office Cupboard 1 8000 8000
6 Cabinet 1 11300 11300
7 Working table 1 9000 9000
8 Dustbin 4 100 400
9 Air Conditioner 1 25000 25000
10 Lights 50 40 2000
11 Fans 10 1200 12000
12 Exhaust Fans 4 1500 6000
13 Others 5000
TOTAL 122100
Note: 5 Cost Of equipments

unit
1 Computer 3 23900 71700
2 Telephone instruments 2 600 1200
3 Fire extinguisher equipment 3 5000 15000
4 Generator 1 25000 275000
TOTAL 362900
Note: 6 Cost Of Vehicle

unit
1 Tempo 2 247000 494000
TOTAL 494000
Note: 7 Preliminary Exp.

No. Particular Amt.
1 Licence Fees 35000
2 Registration Fees (1%) 14800
3. Partnership deed 7000
TOTAL 56800

CAKE AND ART
38
Note: 8 Pre-operatives Exp.

1 Market Survey Exp. 2500
2 Connection Charges
1) A.E.C. (Three phase) 48000
2) Electricity connection charges 18500
3) Plumbing 9000
4) Telephone charges 2500
5) Gas pipe line charges 40000
TOTAL 120500
WORKING CAPITAL
1. Current Assets
A. Raw material requirement 30270
B. Finished Goods requirement 25870
C. Debtors Requirement 546750
D. Cash Balance 124889
Total Current Assets 727779
2. Current Liabilities
A. Creditors 567564
B. Deferred Wages 22000
Total Current Liabilities 589564
TOTAL WORKING CAPITAL 138215

CAKE AND ART
39
A STATEMENT SHOWING COST OF PROJECT

SR. NO PARTICULAR AMOUNT (in Rs.)
1. Land 1642800
2. Building 2340000
3. Machinery 879300
4. Furniture & Fixtures 122100
5. Equipments 362900
6. Vehicles 494000
7. Preliminary expenses 56800
8. Pre-operative Expenses 120500
9. Working Capital 138215
10. Reserves for contingency 61565
TOTAL COST 6218180
MEANS OF FINANCE
NO. PARTICULAR AMOUNT
1. Partners’ capital (50%) 3047525
2. Secured loans (50%) 3109090
3. Reserve and surplus 61565
TOTAL 6218180

CAKE AND ART
40
SALARY
Particulars No. Monthly 1ST 2ND 3RD 4TH 5TH
salary YEAR YEAR YEAR YEAR YEAR
Factory 1 13000 156000 156000 156000 163800 163800
manager
Finance 1 13000 156000 156000 156000 163800 163800
manager
Accountant 1 10000 ---------- 120000 120000 120000 126000
Marketing 1 13000 156000 156000 156000 163800 163800
manager
Production 1 8000 96000 96000 96000 100800 100800
supervisor
Master 1 4500 54000 54000 54000 54000 54000
baker
Utility Varies 3500 210000 210000 420000 420000 546000
workers
Drivers 2 3000 72000 72000 108000 110160 110160
Security 1 3000 36000 36000 36000 37080 37080
guard
Peon 1 3000 36000 36000 36000 37080 37080
Total 13 64000 972000 1092000 1338000 1370520 1502520
BONUS
Particulars No 1ST 2ND 3RD 4TH 5TH
YEAR YEAR YEAR YEAR YEAR
Factory 1 13000 13000 13000 13650 13650
manager
Financial 1 13000 13000 13000 13650 13650
manager
Marketing 1 13000 13000 13000 13650 13650
manager
Accountant 1 ------ 12000 12000 12000 12600
Production 1 8000 8000 8000 8400 8400
supervisor
Master baker 1 4500 4500 4500 4500 4500

CAKE AND ART
41
DEPRECIATION
PARTICULARS 1ST 2ND 3RD 4TH 5TH
MACHINERIES 15%
Op balance 879300 747405 635294 540000 459000
Less: depreciation 131895 112111 95294 81000 68850
Closing balance 747405 635294 540000 459000 390150
BUILDING 10%
Op balance 2340000 2106000 1895400 1705860 1535274

Closing balance 2106000 1895400 1705860 1535274 1381747
FURNITURE 10%
Op balance 122100 109890 98901 89011 80110
Closing balance 109890 98901 89011 80110 72099
VEHICLE 40%
Op balance 494000 296400 177840 106704 64022
Closing balance 296400 177840 106704 64022 38413
COMPUTERS 60%
Op balance 71700 28680 11472 4589 1836

Closing balance 28680 11472 4589 1836 735
Total 618725 469468 372743 305922 257099
depreciation
Add Tempo -------- -------- 247000 148200 88920
Less: depreciation -------- -------- 98800 59280 35568
Closing balance -------- -------- 148200 88920 53352
TOTAL 618725 469468 471543 365202 292667
DEPRECIATION

CAKE AND ART
42
FACTORY OVERHEAD EXPENSES

Salary
Factory manager 156000 156000 156000 163800 163800
Production 96000 96000 96000 100800 100800
supervisor
Peon 36000 36000 36000 37080 37080

Security guard 36000 36000 36000 37080 37080
Bonus
Factory manager 13000 13000 13000 13650 13650
Supervisor 8000 8000 8000 8400 8400
Peon 3000 3000 3000 3150 3150
Security guard 3000 3000 3000 3150 3150
Depreciation
Machinery 131895 112111 95294 81000 68850
Building 234000 210600 189540 170586 153527
Insurance
Machinery 13190 11211 9529 8100 6885

Building 4680 4212 3791 3412 3071
Electricity charges 2,21,000 225694 285415 233598 235690
Power and fuel 180000 205141 225984 226983 285741
Repairs and
maintenance
Building 2340 2340 2340 2340 2340

Machinery 8790 8790 8790 8790 8790
TOTAL 1146895 1131099 1171683 1101919 1041284

CAKE AND ART
43
ADMINISTRATIVE OVERHEADS
Salary
Accountant 120000 120000 120000 126000
Finance manager 156000 156000 156000 163800 163800
Bonus
Accountant 12000 12000 12000 12600
Finance manager 13000 13000 13000 13650 13650
Depreciation
Computer 43020 17208 6883 2753 1101
Furniture 12210 10989 9890 8901 8011
Telephone 26000 17750 15310 21680 15650
Stationery 5000 6550 6854 7045 7520
Electricity charges 90000 92546 93568 94871 95862
TOTAL 345230 446043 433505 444700 444194
SELLING & DISTRIBUTION OVERHEAD

Particulars 1ST 2ND 3RD 4TH 5TH
Salary
Marketing 156000 156000 156000 163800 163800
manager
Driver 72000 72000 108000 110160 110160
Bonus
Marketing 13000 13000 13000 13650 13650
Manager
Driver 6000 6000 9000 9300 9300
Depreciation of 197600 118560 169936 101962 61177
vehicle
Fuel & 155200 160580 165847 178450 182560
maintenance of
vehicle
Advertisement 18500 20500 25000 25000 27000
Commission on 175800 205150 226680 258100 269750
sales
Insurance of 17290 15215 22034 16970 13481
vehicle
TOTAL 811390 767005 895497 877392 850878

CAKE AND ART
44
REPAYMENT OF LOAN
Year Principle Installment Interest Total Amt. Balance of
Remaining Paid Paid Principle
1st Year 3109090 621818 342000 963818 2487272

2nd Year 2487272 621818 273600 895418 1865454
3rd Year 1865454 621818 205200 827018 1243636
4th Year 1243636 621818 136800 758618 621818
5th Year 621818 621818 68400 690218 _
TOTAL 3109090 1026000 4135090
STATEMENT OF INTEREST ON PARTNERS’ CAPITAL

Particular 1st Year 2nd Year 3rd Year 4th Year 5th Year
Opening balance of 3047525 3136287 3581981 4063263 5027221

capital
Add: Interest 182852 188177 214919 243796 301633

Add: Profit 88762 445694 481282 963958 1091076
3319139 3770158 4278182 5271017 6419930
Less: Interest (182852) (188177) (214919) (243796) (301633)
TOTAL 3136287 3581981 4063263 5027221 6118297

CAKE AND ART
45
COST SHEET
Opening
Stock of R.M. 0 30270 35200 38950 42150
Add:-
Purchases 4540510 5297170 5853040 6664340 6964530
Less:- Cl.
Stock of R.M. 30270 35200 38950 42150 45890
Cost Of R.M.
Consumed 4510240 5292240 5849290 6661140 6960790
Add:-
Direct Labour 264000 264000 474000 474000 600000
Bonus 22000 22000 39500 39500 45500
Prime Cost 4796240 5578240 6362790 7174640 7606290
Add:-
Factory O.H. 1146895 1131099 1171683 1101919 1041284
Total Factory
Cost 5722135 6709339 7534473 8276559 8647574
Add:-
Office O.H. 345230 44604ss3 433505 444700 444194
Cost of
Production 6067365 7155382 7967978 8721259 9091768
Add:-
Opening stock
of FG - 25870 27850 29950 30500
Less:-
Closing Stock
of FG 25870 27850 29950 30500 32950
Cost of Sales 6041495 7127532 7938028 8690759 9058818
Add:- Selling
&
Distribution 811390 767005 895497 877392 850878
Exp
Cost of
goods sold 6852885 7894537 8833525 9568151 9909696
Add:- Profit 908115 1159813 1170975 1823089 1994674
TOTAL 7761000 9054350 10004500 11391240 11904370
SALES

CAKE AND ART
46
TRADING AND PROFIT & LOSS A/C
Particulars 1st Year 2nd Year 3rd Year 4th Year 5th Year
INCOME:-
Cash Sales 7114250 8201750 8978600 10132840 10419370
Credit Sales 646750 852600 1025900 1258400 1485000
Total Sales
Income 7761000 9054350 10004500 11391240 11904370
Closing Stock
of FG 25870 27850 29950 30500 32950
Less:- Opening
Stock of FG ------ 25870 27850 29950 30500
Total Income 7786870 9056330 10006600 11391790 11906820
Raw Material
Consumed 4510240 5292240 5849290 6661140 6960790
Direct Labour
& Bonus 286000 286000 513500 513500 645500
Factory Cost 781000 808388 886849 850333 818907
Administrative
Cost 290000 417846 416732 433046 435082
Selling &
Distribution
Cost 613790 648445 725561 775430 789701
Preliminary
Expenses
Written Off 35460 35460 35460 35460 35460
Interest on
Partners'
Capital 182852 188177 214919 243796 301633
Total
Expenditure 6699342 7676556 8642311 9512705 9987073
Gross Profit
(PBDIT) 1087528 1379774 1364289 1879085 1919747
Less:-
Depreciation 618725 469468 471543 365202 292667
PBIT 468803 910306 892746 1513883 1627080
Interest
- Long Term
Loan @ 11% 342000 273600 205200 136800 68400
PBT 126803 636706 687546 1377083 1558680
Tax Paid @
30% 38041 191012 206264 413125 467604
PAT 88762 445694 481282 963958 1091076

CAKE AND ART
47
BALANCE SHEET
Particulars Year 1 Year 2 Year 3 Year 4 Year 5
SOURCE OF FUNDS
Owners Funds 3136287 3581981 4063263 5027221 6118297

Reserve & 61565 61565 61565 61565 61565
Surplus
Bank Loan 2487272 1865454 1243636 621818 0
TOTAL 5685124 5509000 5368464 5710604 6179862
SOURCE OF
FUND
APPLICATION OF FUNDS
Fixed Assets
Land 1642800 1642800 1642800 1642800 1642800
Building 2340000 2106000 1895400 1705860 1535274
Less: 234000 210600 189540 170586 153527
Depreciation
2106000 1895400 1705860 1535274 1381747
Machinery 879300 747405 635294 540000 459000
Less: 131895 112111 95294 81000 68850
Depreciation
747405 635294 540000 459000 390150
Furniture 122100 109890 98901 89011 80110
Less: 12210 10989 9890 8901 8011
Depreciation
109890 98901 89011 80110 72099
Vehicle 494000 296400 424840 254903 152941
Less: 197600 118560 169937 101962 61177
Depreciation
296400 177840 254903 152941 91764
Computer 71700 28680 11472 4589 1836
Less: 43020 17208 6883 2753 1102
Depreciation
28680 11472 4589 1836 734
Other 291200 291200 291200 291200 291200
equipment
TOTAL FIXED 5222375 4752907 4528363 4163161 3870494
ASSETS
CURRENT ASSETS, LOANS AND ADVANCE
Inventory
Raw Material 30270 35200 38950 42150 45890
Finished Goods 25870 27850 29950 30500 32950

CAKE AND ART
Sundry Debtors 546750 850123 926540 1025360 1125460 48

Cash & Bank
Balance 307583
410680 554151 1288113 2083908
TOTAL 910473 1323853 1549591 2386123 3288208
CURRENT
ASSETS
LESS : CURRENT LIABILITIES AND PROVISION

Creditors 567564 652140 758410 852140 956840
Deferred Wages 22000 22000 22000 22000 22000
TOTAL 589564 674140 780410 874140 978840

CURRENT
LIABILITY
NET CURRENT 320909 649713 769181 1511983 2309368
ASSETS
Miscellaneous 141840 106380 70920 35460 0
Expenditure (To
the extent not
written off)
TOTAL 5685124 5509000 5368464 5710604 6179862
APPLICATION
OF FUNDS

CAKE AND ART
49
CASH FLOW STATEMENT
Particular 1st year 2nd year 3rd year 4th year 5th year
CASH FLOW FROM OPERATING ACTIVITIES
GST 88762 445694 481282 963958 1091076
Interest 524852 461777 420119 380596 370033
Tax Provision 38041 191012 206264 413125 467604
Depreciation 618725 469468 471543 365202 292667
Preliminary 35460 35460 35460 35460 35460
Expenses
CHANGES IN (13326) (225707) 24003 (8840) (1590)
WORKING
CAPITAL
Tax Paid (38041) (191012) (206264) (413125) (467604)
Net Cash Flow 1254473 1186692 1432407 1736376 1787646
From
Operating
Activities
CASH FLOW FROM INVESTMENT ACTIVITIES
Purchase of (5841100) ------ (247000) ------ ------
Assets
Preliminary (177300) ------ ------ ------ ------
Activities
Net Cash Flow (6018400) ------ (247000) ------ ------
From Investing
Activities
CASH FLOW FROM FINANCIAL ACTIVITIES
Capital 3109090 ------ ------ ------ ------
Term Loan 3109090 ------ ------ ------ ------
Taken
Repayment of (621818) (621818) (621818) (621818) (621818)
Term Loan
Interest on Loan (342000) (273600) (205200) (136800) (68400)
Interest on (182852) (188177) (214919) (243796) (301633)
Capital
Net Cash Flow 5071510 (1083595) (1041937) (1002414) (991851)
From Financial
Activities
Total 307583 103097 143470 733962 795795
Add:- Opening 0 307583 410680 554151 1288113
Balance
Closing 307583 410680 554151 1288113 2083908
Balance

CAKE AND ART
50
RATIO ANALYSIS
1st 2nd 3rd 4th 5th

PARTICULARS year year year year year
PROFITABILITY RATIO
Net profit ratio (%)
(Net profit/sales)100 1.14 4.92 4.81 8.46 9.17
Operating ratio (%)
(PBIT/sales)*100 6.04 10.05 8.92 13.29 13.67
Cash profit ratio (%)
[(PAT+depreciation)/sales]*100 9.12 10.11 9.52 11.67 11.62
EFFICIENCY RATIO
Fixed assets turnover ratio
Sales/fixed assets 1.49 1.91 2.21 2.74 3.08
Total asset turnover ratio
(Sales)/(total assets-misc.exp.) 1.27 1.49 1.65 1.74 1.66
SOLVANCY RATIO
Proprietor's ratio (%)
Proprietor's fund/total asset-
misc.exp*100 52.14 60.00 67.87 77.70 86.33
COVERAGE RATIO
Interest coverage ratio
PBIT/interest on debt 1.37 3.32 4.35 11.07 23.79
LIQUIDITY RATIO
Current ratio
Current asset/current liabilities 1.54 1.96 1.99 2.73 3.36

CAKE AND ART
51
TREND OF RATIOS
1. NET PROFIT RATIO
Net Profit Ratio

Percentage
Year
Interpretation:
The firm has continuously made profit for five years. It shows the firms capability to
increases revenue from its business.
2. OPERATING RATIO
Operating Ratio
Percentage
Year
Interpretation:
Operating profit of the firm is continously increasing over the five years. It does
not increase with more margins because of increses in revenues expenses in
that years, but it also does not decrease which shows continuous increment in
revenue.

3. CASH PROFIT RATIO
Cash Profit Ratio

Percentage
Year
Interpretation:
Cash profit of the firm is continously increasing in five years and it will help the
firm to repay its loans and liabilites.
Cash profit increment also indicate that the firm has more source to earn cash
revenue.
4. FIXED ASSETS TURNOVER RATIO
Fixed Assets Turnover

Ratio
Percentage
Year
Interpretation:
As the revenue is increasing year by year and the depreciation is written off the
value of fixed assets reduces and thus there is an increase in the fixed asset
turnover ratio.

5. TOTAL ASSETS TURNOVER RATIO
Total Assets Turnover

Ratio
Percentage
Year
Interpretation:
The total asset turnover ratio of the firm continously increses in 5 years. It shows
that firm has optimum uses of its assets to generate its revenue.
6. PROPRIETOR’S RATIO
Proprietor's Ratio
Percentage
Year
Interpretation:
Proprietor ratio indicate that the share of owners in the firm aganist the other
liabilites. The Proprietor ratio of the firm is continously increasing in five years and in
the 5th year its is nearly 86.33% and its equal to half of the balance sheet total and
its gives encourage the firm to take more risk.

CAKE ANDCAKE
ART AND ART
7. INTEREST COVERAGE RATIO
Interest Coverage Ratio

Percentage
Year
Interpretation:
The interest coverage ratio indicates capacity of firm to pay interest on debt out
of its profit. The above chart shows that there is continuous increase in this ratio
through out 5 years because of increase in revenue. It is maximum 23.79% in
the 5th year.
8. CURRENT RATIO
Current Ratio
Times
Year
Interpretation:
Ideal current ratio is 2:1 but the above ratio’s are around 3.36:1 which is above
ideal ratio that is justifiable in our industry.

CAKE AND ART
CAPITAL BUDGETING
P V OF DISCO P V OF
YEA DEPRE PRE. CFA DISC CASH UNTIN G CA CUM
R GST CIATION EXP. T O FLOW SH CFAT
UNTIN FLO
G W
FACT FACTO
OR R 1%
11%
1st 887 3546 742 7429

Year 62 618725 0 947 0.901 669395 0.990 73551 47
8
2nd 445 3546 950 1693

Year 694 469468 0 622 0.81 771905 0.980 93161 569
2 0
3rd 481 3546 988 2681

Year 282 471543 0 285 0.73 722436 0.971 95962 854
1 5
136
4th 963 3546 462 4046
Year 958 365202 0 0 0.65 899285 0.961 13114 474
9 00
109 141
5th 107 3546 920 5465
Year 6 292667 0 3 0.59 841587 0.951 13496 677
3 62
546
567
Total 7 3904609 52878
14
NET PRESENT VALUE

Particular Amount
Total Discounted Cash Inflow 3904609
Less
Total Cash Outflow 6218180
NPV (2313571)

CAKE AND ART
PAY BACK PERIOD

In our project Pay Back Period is beyond 5 years. As at the end of the 5 years net
cumulative Cash flow is Rs. 5465677 and our initial investment is of Rs. 6218180.
PROFITABILITY INDEX
Particular Amount
Total Cash Inflow 3904609
Divide
Total Cash Outflow 6218180
P.I 0.6279
INTERNAL RATE OF RETURN

In case of IRR we require two NPV i.e. one negative and one positive at two
different discounting factor. Hence in our project we have taken in to consideration
two discounting factor i.e. 1 and 11% discount level and at both the levels NPV is
negative so it is not feasible within the scope of five years.

CAKE AND ART
BREAK EVEN ANALYSIS

Total Income 7786870 9056330 10006600 11391790 11906820
Less : Variable
Cost
Direct Material 45,10,240 5292240 5849290 6661140 6960790
Direct Labour 286000 286000 513500 513500 645500
Electricity Charges 311000 318240 378983 328469 331552
Repairs
Maintenance 166330 171710 176977 189580 193690
Power and Fuel 180000 205141 225984 226983 285741
Commission on
sales 175800 205150 226680 258100 269750
Total Variable
Cost 56,29,370 6478481 7371414 8177772 8687023
Contribution 2157500 2577849 2635186 3214018 3219797
Less : Fixed Cost
Salary & Wages 767000 899000 938000 973470 889350
Depreciation 618725 469468 471543 365202 292667
Insurance 35160 30638 35354 28482 23437
Telephone &
Internet 26000 17750 15310 21680 15650
Stationery &
Postage 5000 6550 6854 7045 7520
Advertisement 18500 20500 25000 25000 27000
interest on
Partner's Capital 182852 188177 214919 243796 301633
Interest on Loan 342000 273600 205200 136800 68400
Preliminary Exp. 35460 35460 35460 35460 35460
Total Fixed Cost 2030697 1941143 1947640 1836935 1661117
126803 636706 687546 1377083 1558680
Profit
PV Ratio 27.71% 28.46% 26.33% 28.21% 27.04%
=Contribution/Sales
BES=Fixed 7328390 6820600 7397038 6511645 6143184

cost/PV ratio (In
Rupees)

CAKE AND ART
MARKETING FEASIBILITY
According to the market survey conducted, we found that many People are health
conscious and are aware of organic 3D cakes. We have also found that people are to be
made more aware about the ill Effects of natural cakes. There is a great need of a good
quality cakes Supplier in Ranchi. As we all know that we are what we eat, to have a
Healthy mind and a healthy body we need to have healthy cakes. Our 3D cake is not
having any competitor in Ranchi so it has many Growth opportunities.
MARKET ASSESSMENT
Assessing the market size for a new business is a tricky but critical part of feasibility
analysis. For a business idea to work there should be enough customers willing to spend
enough money for the product "offered" to them. This in turn would increase sales
revenue and will thus lead to profit.
Steps followed in market assessment:
Store Merchandising:
The art of displaying or presenting the cakes and bakery products does half of your sale.
Display your exclusive products in such a way that it appeals the customer and forces
them to purchase the same. After all, nothing comes above yummy and tasty food
(cakes). Create an interactive ambience, such as you can come up with story form/ art
painted on walls to increase the engagement and stay time in store.
Photo Zone:
A dedicated photo zone should be there with proper branding i.e. logo, tagline and
images relevant to baked products should be kept. We can insist the customers to click
the images with cakes and the chef and give it to them as a memory. We can also ask
them to post the same on social media.
Trending Theme Cake:

Customized 3D cakes and Theme cakes are trending in market, First Birthday,
Engagement, 1st month anniversary, fashion freak, Sports lover, etc. whatever

CAKE AND ART
customization comes to you make sure you give our special touch to differentiate from
competitors.
Good Advisor:
Viewing the variety of product range, customers tend to get confused. Guide/ advise
them to choose the best. You can advise on the basis of occasion, flavour choice, theme
choice, etc. This will lead the increase in revisit ratio of the customer.
Sample to Taste:
If we are displaying some unique flavours, always keep a sample for the customers to
taste as generally people don’t take risk on buying new flavoured over the tasted ones.
This may be beneficial for the purchasing decision of customer.
Know our Customer:

Knowing our customer gives you the entire idea of their choices, spending limit,
preferences, etc. This helps in increasing sale. It is also advisable to build long-term
relationship with customer which not only gives a lifetime customer but also add-ons
through his/her word-of-mouth.
Teach your Customer:

We can build an edge over your competitors by coming up with something new such as
teaching them i.e. some cooking and baking tips, we can also organise cooking contests,
etc to build your brand presence.
Testimonials with Images:

A tested way of increase in purchase rate is always through your “Happy
Customer”. Display their photos with your product and their feedback.
Try different distribution methods

If we want to make more profit and reach more customers, try to use a couple of
different distribution methods. Consider going online. we can develop our own website
marketing strategy for a bakery, or try to cooperate with popular online ordering and
delivery platforms such Zomato , Swiggy etc. and try to participate in local events,
festivals, concerts, etc. It doesn't require a huge investments to organize your own pop-
up and cater to people attending an open-air event. At the same time, it's a chance to
reach people who don't frequent the area where our bakery is located.

CAKE AND ART
Be nice to your customers
To improve bakery profits, you need to find the right way to communicate with your
customers. Figure out who frequents your place, get to know them better, and find out
what their interests are. Try your best to develop meaningful relationships with your
customers! Good service means that you remember your regulars’ favourite 3D cake. It’s
much more pleasant to have a chat with a nice, friendly baker on your way to work than
to grab a bun in a plastic bag from the nearest supermarket.
COMPETITORS
We do not have any competitor since our product is very new in Ranchi. Though there
are many famous and popular bakery shop in Ranchi But none of them makes 3D cakes.
Thus, our unique and healthy bakery product gives us a competitive advantage And
leaves us with no competitors in our product. It also provides us with huge Growth
opportunities.

CAKE AND ART
PRICING
CAKE AND ART
CAKE & ART

PRICE
1
NAME IMAGE
POUN
D 2 POUND

BUTTER SCOTCH PREMIUM 300 550
CHOLATE DELIGHT 325 575
BLACK FOREST CAKE 300 550

PREMIUM CHOCLATE TRUFFLE
300 600
CAKE

FRESH FRUIT'S CAKE 400 775

PINEAPPLE CAKE 325 650

CHOCLATE TRUFFLE CAKE 400 800
BUTTER SCOTCH CAKE 300 550
SMILEY CAKE 350 700
RED HEART CAKE 400 750

CAKE AND ART
CHOCHO CHIPS (PREMIUM) 400 775
WHITE FOREST CAKE (ROSE

350 700
PRTALS)

KIT-KAT GEMS CAKE 650 1300

PHOTO CAKE 400 750

RED LOVE CAKE 350 700

CHOCLATE DELIGHT ROSE 300
600
DARK FANTASY 400 800

MIX FRUIT (PREMIUM) 400 750
MIX FRUIT CAKE (REGULAR) 300 550

CHOCO-BURRY CARAMEL 55O 675

3D CAKES
MAC MAKEUP Theme Cake 1000 1995

Glazing Rose Cake 400 749

Melting Cornetto Cake 500 1050


CAKE AND ART
2249
Lazy Bro Cake 1100

Floral Cake Galore 1000 1899
PUBG Game Cake 1500 2895
My World Pinata Cake 1000 1900
Sweet Eighteen Birthday Cake 800 1500

Photo Rose Cake 500 1250
Billon Dollar Delicacy 1000 2099
PASTRIES PER PIECE

VANILLA 70
STRAWBERRY 70
PINEAPPLE 75
CHOCO ECLAIRS 70
BLUE BERRY 70
CHOCO MOUSSE 75
KIWI PASTRY 70
WHITE FOREST 80
BLACK FOREST 80
RED VELVET 80
ADD ON PRICE PER

PIECE
BIRTHDAY CAP 40
MAGIC CANDLE 30
PARTY POPPER 50
BALLON PACKETS 40
CAKE AND ART
HBD BANNER 50
NUMBER CANDLE 20
BIRTHDAY CARD 50-150
JUMBO BALLON 20
CREAM ROLL 25
COOKIES PACKET 50-150
MUFFIN 20
PROMOTION
Promotion is the process of information customer about the availability and used of
product and services and persuading them to buy.
SALES PROMOTION
 Coupons
 Discounts
 Referral Programs
 Loyalty Incentives
PUBLIC RELATIONS – How to use the media

 Media Introductions
 PR Events
 News/Media Releases

CAKE AND ART
PERSONAL SELLING
 Salesmen
 Trade shows
DIRECT MARKETING
 Mail Order Catalogues
 Bulk Mailers
 E-mail
 Telemarketing
 Point of Sale Displays and Signs
 Packaging
DIGITAL MARKETING – The Internet is here

to stay!
 Company Websites
 Social Media – Instagram, Facebook, Twitter,& whatsapp
 Blogging
 Mobile Phone Promotions
 YouTube
PHYSICAL DISTRIBUTION

CAKE AND ART
Physical distribution in market refers to a series of interrelated
activities good from the time of production to the point of
consumption.
PLANT OUTLET CUSTOMER
PLANT OUTLET RETAILERS

CAKE AND ART
DELIVERY
PLANT OUTLET CUSTOMER
PARTNER
MARKETING OBJECTIVES
FIRST YEAR OBJECTIVE : To create brand recognition in the mind of
customer.
SECOND YEAR OBJECTIVE : To increaes sale of the products
THIRD YEARS OBJECTIVES : To earn profit giving a high level of

customer satisfaction.

CAKE AND ART
HUMAN RESOURCE MANAGEMENT
Human resource management is the strategic approach to the effective and efficient
management of people in an organization such that they help their business gain a
competitive advantage . It is designed to maximize employee performance in service of
an employer's strategic objectives.
Human resource management is the process of employing people, training them,

compensating them, developing policies relating to them, and developing strategies to
retain the HR team ensures that the employees are satisfied, trained well, motivated
enough, and have all the resources at their disposal to perform as expected.
THE ROLE AND FUNCTION OF HRM

The HR department is responsible for many of the company’s day-to-day administrative
operations. Below are some of the most important functions of the HR department.
PROCUREMENT OF NEW EMPLOYEES

Hiring new employees is one of the most crucial responsibilities of the human resource
department. This process usually involves:
Estimating the manpower requirement – Identify the numbers of

manpower required in the current situation. Identify various job position and fill them
with person having specific set of knowledge, experience.
Recruitment – Recruitment refers to the process of finding or searching prospective

candidates for a job and stimulating them to apply for jobs in an organization. To attract
the right candidate, human resource managers may employ several mediums such as

CAKE AND ART
advertisement, web publishing, online job sites like Nokri.com, linked in etc.,
management consultancy, recommendation of employees.
Selecting – Selection is the process of identifying and choosing the best person out
of a number of a number of prospective candidate for a job.
Placement –It refers to the offering the job to a finally selected candidate and
assigning the rank and responsibility to an employee, identify him with a particular job.
EMPLOYEE DEVELOPMENT
Performance Appraisal – constant checks are done to assess how an individual
employee is performing. Depending on the result, a manager can create a plan to
improve performance or recommend changes to work procedures.
Training and Development –It is a process of increasing knowledge and skill.

Training can be given through working with head and experienced chefs.
Career Planning – human resource managers also create career pathways that
provide growth opportunities for employees.
COMPENSATION AND BENEFITS
Evaluation – this involves determining compensation based on current living costs,
healthcare, and taxes.
Salary and Wages – salaries are given as per designation and experience
of employees.
Bonuses and Incentives – these are benefits above and beyond standard
salaries and wages. Bonuses can be given to employees once in a year.
INTEGRATION
Motivation – to ensure optimum performance, companies must provide a sense of
motivation for its employees. This includes providing benefits and incentives and
promotion opportunities. For making good relation with our employee, we will celebrate
their birthday’s and providing birthday gifts.

CAKE AND ART
Discipline – It is necessary for maintaining smooth working atmosphere. The
HR department can be tasked with implementing disciplinary actions for common
infractions.
REQUIREMENT OF HUMAN RESOURCE SALARY
 1 BAKERY MANAGER [16500]

 1 PRODUCTION SUPERVISIOR [8000]
 2 HEAD BAKER [13000 each]
 2 BAKERYASSISTANT [5000 each]
 1 DRIVER [3000 ]
 1 DISHWASHER [3000 ]
 1 BAKERY CLERK [4500]
TOTAL HR COST = 71000
SPECIFIC WORKS
 PRODUCTION SUPERVISOR supervises all staffs and ensures that all

bakery operations run smoothly. He fulfill supply of raw materials
and addresses all work related to production.
 A BAKERY MANAGER is responsible for coordinating and
supervising the bakery's business operations. They manage
relationships with suppliers, organize inventory and develop
marketing and promotional materials. Bakery managers uphold

CAKE AND ART
safety and sanitation practices at the bakery by inspecting the
kitchen and developing workplace policies.
 BAKER is responsible for maintaining quality and taste of the
product.
 BAKERY ASSISTANT are responsible for provide direct support to
bakers when producing breads, case and other goods. They can
help with front-of-house duties like kitchen tasks like mixing batter
and organizing inventory. Other duties for bakery assistants
include preparing fillings for pastries, notifying the manager when
ingredients are low and counting the number of available goods.
 DRIVER is responsible for transporting the end product from
factory to shop.
 BAKERY CLERK handles the front of house duties at a shop
including greeting customers, answering phones, taking orders and
processing cash transaction.
 DISHWASHER work at bakeries to provide bakers with clean
kitchen equipment. They clean and sanitize bread pans, muffin
tins, molds, spring forms, mixing bowls, spoons, spatulas and
measuring cups. After washing the bakery dishes, they organize
the utensils and kitchen equipment for easy access. Dishwashers
may also assist with other cleaning tasks like cleaning ovens,
wiping stoves and mopping floors.
GUIDELINES AND INSTRUCTION
 Work timing (10 am – 8pm) 8 hours a day.

 Lunch break (2 pm- 3 pm) 1 hours a day.
CAKE AND ART
 Holiday 4 days in a month.

CAKE AND ART
CONCLUSION
We would finally like to conclude the project with a great feeling of having gained
enormous knowledge about bakery industry. First of all we are thankful to our
teacher who gave us such a wonderful opportunity to learn about the practical
aspects of knowledge.
By conducting an extensive research on all the aspects of establishing a bakery,

we conclude that the project is feasible as per capital budgeting techniques.
While making the project we learnt how to communicate or deal with people
and how to maintain contacts with them. We saw all the marketing factors and were
able to understand more about it because of seeing them practically. It has been
said that practical knowledge is more important than theoretical knowledge.

CAKE AND ART
BIBLIOGRAPHY
1. We take help from some websites;
(a) www.thepizzabakery.com
(b) www.pizzabakery.in
(c) www.sethisbakery.com
2.We take help from some reference book:
(a) Production and Operation

Management
(b) Fundamental Of Cost Accountings
(c) Sales Management Decision.
3. we also take help from our guiding
teacher Dr P. Munda

CAKE AND ART
QUESTIONNAIRE
Name
Mobile no.- Email id. -
Occupation
Annual Income (if any)
Address of the respondent
How old are you?

Under 18
18-24
25-
35-44
45-54
55-64
65+
2. What is your gender?
Male
Female
Prefer not to answer
3. How often do you purchase baked goods?
Daily
Weekly
Biweekly
Monthly
Less than once a month
Less than once a year
4. Do you usually prefer sweet or savory?
Sweet
Savory
It's 50/50
5. What style of baked goods do you prefer?
French
American
Something new- unique
I don't care as long as it looks good on my social media.

CAKE AND ART
6. How much are you willing to spend on a single serve bakery
item?
$2-$4 per item
$5-$7 per item
More than $7 per item
7. Do you prefer your product is made from locally sourced
product, fair trade or sustainably sourced product?
Locally sourced product
Fair trade product
Sustainably sourced product
Donesn't matter
8. When buying a baked good, what is important to you?
Appearance
Taste
Texture
Smell
None of the above
9.What is your favorite flavor from your childhood? (ex. moon
pies, whoppers, apple pie)
------------------------------------
10. If you find a good product, how far will you travel to get
it?
Less than 5 minutes
5-10 minutes
10-15 minutes
15-20 minutes
More than 20 minutes

CAKE AND ART

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PROJECT FEASIBILITY REPORT ON

ESTABLISHMENT OF BAKERY SHOP

This is to certify that the work presented in this project

To the best of my knowledge, the content of this project

PROF. PRADEEP MUNDA

FEASIBILITY REPORT Page | 4

The foregoing project entitled "BAKERY

It is understood that by this approval, the

(INTERNAL EXAMINER) (EXTERNAL EXAMINER)

FEASIBILITY REPORT Page | 5

S.NO PARTICULARS PAGE

10 MAKETING FEASIBILITY 55 -64

11 HUMAN RESOURCE MANAGEMENT 65 -68

FEASIBILITY REPORT Page | 6

Feasibility reports address things like where and how the

This project is a feasibility report for establishing a bakery. The

FEASIBILITY REPORT Page | 7

FEASIBILITY REPORT Page | 8

A feasibility report looks at the viability of an idea with an emphasis on identifying

Why Are Feasibility Reports so Important?

The Components of a Feasibility Report

FEASIBILITY REPORT Page | 9

FEASIBILITY REPORT Page | 10

Baking is the technique of prolonged cooking of food by dry heat acting by

Baker putting bread into an oven with a peel, 1568

FEASIBILITY REPORT Page | 11

FEASIBILITY REPORT Page | 12

FEASIBILITY REPORT Page | 13

Name : CAKE AND ART

Products : Breads, Buns, muffins, Pastry, Toasts, Cream Rolls

Status : Medium Scale

Address : Near- LALPUR Chowk , RANCHI - 834001

Type of firm : Partnership Firm

Date of incorporation : 1st April, 2022

Cost of project : Rs. 62,18,180

Source of finance : Partners’ capital - Rs.30,47,525

Mission statement : “Our mission is to provide quality products at lowest

Vision : “To be the leader of quality bakery products provider

FEASIBILITY REPORT Page | 14

FEASIBILITY REPORT Page | 15

The SWOT Analysis of our firm is

FEASIBILITY REPORT Page | 16

FEASIBILITY REPORT Page | 17

LAND AND BUILDING

For manufacturing of bakery products, we will require a land of 2400sq feet.

LAND & Covered Area Requirement

FEASIBILITY REPORT Page | 18

Machines are easily available nearby the market.

BAKERY MACHINERY LAYOUT

1.Proofer/Retarder or Final Steam proofer

FEASIBILITY REPORT Page | 20

INTERIOR OF THE BEKARY STORE

Maintainance And Operating cost

FEASIBILITY REPORT Page | 21

which is not much expensive

5 biggest operating cost for bakeries are as follows:

1. Balancing Price of Goods Vs. Volume Produced