BAKING BISCUITS
Introduction
This business idea is for the production and marketing of biscuits. Biscuits
are confectionery products and they refer to small thin products of varying
shapes, tastes that are of soft brittle texture. They are referred to by
different names in different countries. The revenue is estimated US$400 per
year.
Production process
The process consists of combining wheat flour, sugar, margarine, milk and water
in a dough mixer. The dough is then mixed with baking powder and kept for
around three hours. The prepared dough is then passed through biscuit molding,
stamping, and cutting machines and finally baked in an oven. The biscuits are
then cooled, sorted and packed neatly.
Market Analysis
Biscuits have a ready market since they are delicious and conveniently packed.
The main outlets are Supermarkets, Provision Stores, Canteens and Institutions.
The major key players include; Britania and Riham.
Capital Investment Requirements in US$
|
Capital investment item |
Units |
Qty |
Unit |
Amount |
|
Brick oven |
No. |
1 |
2,500 |
2,500 |
|
Dough mixer |
No. |
1 |
1,250 |
1,250 |
|
Weighing scale |
No. |
2 |
100 |
200 |
|
Tray (pieces) |
No. |
4 |
10 |
40 |
|
Hand mould table |
No. |
1 |
50 |
50 |
|
Baking trays |
No. |
50 |
13 |
625 |
|
Packing materials (kg) |
No. |
200 |
1.5 |
300 |
|
Van |
No. |
1 |
6,500 |
6,500 |
|
Total Costs on Machinery |
11,465 |
Production and Operating costs in US$
|
Cost Item |
Units |
Unit cost/ |
Qty/day |
Prod |
Prod |
Prod cost |
|
Wheat flour |
kg |
25 |
20 |
500 |
13,000 |
156,000 |
|
Sugar |
kg |
45 |
50 |
2,250 |
58,500 |
702,000 |
|
Cooking oil |
Ltrs |
32 |
40 |
1,260 |
32,760 |
393,120 |
|
Firewood |
tone |
50 |
3 |
150 |
3,900 |
46,800 |
|
Margarine |
kg |
1.25 |
12 |
15 |
390 |
4,680 |
|
Non fat milk |
kg |
2 |
30 |
53 |
1,365 |
16,380 |
|
Salt |
kg |
0.3 |
5 |
2 |
39 |
468 |
|
Sub-total |
|
3,729 |
109,954 |
1,319,448 |
||
|
General costs(overhead |
||||||
|
Utilities(water and power) |
50 |
600 |
||||
|
Labour |
50 |
600 |
||||
|
Rent |
125 |
1500 |
||||
|
Miscellaneous costs |
50 |
600 |
||||
|
Depreciation(Asset write off)Expenses) |
1 |
13 |
||||
|
Sub -total |
276 |
3313 |
||||
|
Total Operating Costs |
110,230 |
1,322,761 |
Production costs assumed 312 days per year with a daily capacity of 9000 biscuits Depreciation (fixed assets write off) assumes 4 years life of assets written off at 25% per year for all assets.
Direct costs include materials, supplies and other costs that directly go into production of the product.
Project product Costs and Price
Structure in US$
|
Item |
Qty |
Qty/yr |
Unit |
Prod cost |
Unit |
Total |
|
Biscuits |
9,000 |
2,808,000 |
0.47 |
1,322,761 |
0.5 |
1,404,000 |
Profitability Analysis
|
Profitability Item |
Per day |
Per |
Per |
|
Revenue |
4,500 |
117,000 |
1,404,000 |
|
Less production and operating |
4,240 |
110,230 |
1,322,761 |
|
Profits |
260 |
6,770 |
81,240 |