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Bakery Business | Profitable Small Scale Manufacturing

Bakery business in India is the largest industry in food processing sector. Additionally, bakery products have become very popular throughout the country. The 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 is 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. Generally, rural sectors consume around 55% of the biscuits.

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). Additionally, you will need to 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.

Related: 450 Top List Of Business Ideas for Beginners

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. The 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. Basically, it helps 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 is 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. However, you can obtain the details of specifications from the Bureau of Indian Standards, Manak Bhavan, 9, Bahadur Shah Zafar Marg, New Delhi-110 002.

Related: How To Get BIS Certification In India | Basic Guide

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, you will need to have following machines for making biscuits, wafer, bread etc.

  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. Aluminum 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. You will need to procure other items like milk powder, yeast, salt, assorted fruits, baking powder, caramel color, vanilla, butter, cream, etc. in small quantity. You can procure all the raw material from the 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, mix the calculated amount of maida, starch, vanaspati, water etc. in a mixer to form a paste. Then pour the paste into the pre-heated mold to bake wafer sheet. Additionally, mix the other ingredients like sugar, vanaspati, colors, essence in a planetary mixer to form the cream. Then apply the cream on the sheets to form sand witch. Thereafter, cut the sandwich into biscuits and pack in pouches.

To make cakes, mix thoroughly wheat flour and baking powder along with cream, sugar, and ghee till it becomes fluffy. Then add the mixture of beaten eggs to it along with caramel color and chopped fruits. Mix it before pouring the mixture into cake pans. Thereafter, bake it for around 30-40 minutes. a

You can produce pastries in different shapes like square, rectangular etc. from thick cake sheets, buttercream, jam etc. is placed between layers of cake. Then chill the layered cake and cut with sharp knife into 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.