Bakery Business | Profitable Small Scale Manufacturing

Bakery business in India is the largest industry in food processing sector. Bakery products have become very popular throughout the country. Bakery is one of the most profitable food processing business opportunity one can initiate by having owned or rented space. Selecting the right product and proper marketing strategy are the major deciding factor in getting success in the bakery business. According to the demand and financial aspect you will need to choose the specific products for your bakery business.

Bread and biscuits are the most common products but other items like cakes, pastries, cream-rolls, cookies etc. are also very popular in India. People almost prefer to have fresh products and this nature increased the popularity of bakery products.

Bakery Business Market Opportunity

Though, there are sufficient automatic and semi-automatic bread as well as biscuit manufacturing units in India but there are still a number of people prefer fresh bread and other products from the local bakery. Bakery products are an item of mass consumption in view of its low price and with rapid growth and changing eating habits of people, bakery products have gained popularity among masses. The bakery industry has achieved the third position in generating revenue among the processed food sector. The per capita consumption is very high in industrialized States like Maharashtra and West Bengal. The Biscuits are becoming quite popular in rural areas as well. Nearly 55% of the biscuits are consumed by rural sector.

The market size for the industry is pegged at US$ 4.7 billion in 2010 and is expected to reach US$7.6 billion by 2015. It also mentions that the shining star of the sector remains the biscuits industry, which is expected to outperform the growth of the sector overall. Thus, opening a bakery business is considered as a promising and profitable business venture for new startup entrepreneurs.

License Required To Open A Bakery Business

In starting a bakery business, you will need to register the business first with ROC (Register of Companies). You have to apply for a Food Business Operating License from fssai (Food Safety & Standards Authority of India). You would also require individual licenses from FSSAI for the delivery boy or delivery vehicle. You will need to ensure the compliance of all the fire safety guidelines. You may also register your bakery unit as SSI from local DIC office. Obtain Vat Registration. You also need to have clearance from Pollution Control Board.

Bakery Business Finance

In initiating a bakery business, you will need to arrange two types of capital. One is fixed capital for setting up the unit and purchasing machinery. Second one is working capital. Hire purchase leasing is available from banks for machinery purchase. You can avail a cash credit or overdraft account to serve the requirement of working capital.

Bakery Business Unit Establishment 

It is always recommended to have customized project report in hand. It will help you in arranging finance, preparing the unit, purchasing and installing the right machinery and in another operational aspect. It is better to establish the unit in industrial are where you can arrange worker and transport facility. Before installing the machinery, having a layout plan and implementation schedule are essential.

Bakery Business Quality Control

The PFA Act, 1954 is mandatory and BIS Specifications are optional for Wafer Biscuits. The relevant Bureau of Indian Standards Specification for Wafers (second revision) (with Amendment No. 2) is IS:2397:1988. The specification for Biscuits (third revision) (with Amendment No. 1) is IS:1011:1992. The details of specifications can be obtained from the
Bureau of Indian Standards, Manak Bhavan, 9, Bahadur Shah Zafar Marg, New Delhi-110 002.

Bakery Business Machinery

According to the desired product and production output, you can establish bakery unit by two ways. One is fully automatic setup and another one is semi-automatic setup. Generally for making biscuits, wafer, bread etc following machinery are required:

  1. Wafer biscuit making machine.
  2. Butter Mixing Machine
  3. Sugar grinding machine
  4. Planetary mixer machine
  5. Sealing machine
  6. Working table with S.S./Aluminium top
  7.  Weighing Balance platform type
  8. Aluminium vessels, Mats, cups, Mugs, ladle, spoons, gloves, etc.

Apart from these, you will need to arrange electrification and water supply.

Raw Material & Production process of Bakery Business

The major required raw materials are wheat flour, sugar, eggs and ghee.  Other items like milk powder, yeast, salt, assorted fruits, baking powder, caramel colour, vanilla, butter, cream, etc. shall be required in small quantity. You can procure all the raw material from local wholesale market. For medium scale unit, you can procure major raw material from direct manufacturer. In establishing a large scale bakery business, you can also setup your own flour mill included.

In making biscuits, The calculated amount of maida, starch, vanaspati, water etc. are mixed in a mixer to form paste. The paste so formed will be poured into pre-heated mould to bake wafer sheet. The other ingredients like sugar, vanaspati, colours, essence are mixed in a planetary
mixer to form cream. The cream so prepared will be applied on the sheets to form sand witch. Thereafter the sandwich will be cut into biscuits and packed in pouches.

To make cakes, wheat flour and baking powder along with cream, sugar and ghee are mixed thoroughly till it becomes fluffy. Then mixture of beaten eggs is added to it along with caramel colour and chopped fruits before the mixture are poured into cake pans and baked for around 30-40 minutes. Pastries are made in different shapes like square, rectangular etc. from thick cake sheets, buttercream, jam etc. is placed between layers of cake. The layered cake is then chilled and cut with sharp knife in the required shape and size. Sides of the pieces are iced with buttercream or fudge and topped with finely ground cake crumbs or pieces of fruits or chocolate strips and decorated with proper design, colour and garnish.

This is a semi-automatic process, You can also go for a fully automatic bakery business production setup. 

Learning Resources

1. Textbook of Bakery and Confectionery