PROPRIETOR:
BAKING AND FOOD INDUSTRY MULTIPURPOSECOOPERATIVE
TABLE OF CONTENT
CHAPTER ONE
1.0 Introduction ……………………………………………. 1
1.1 Purpose for Establishing the Business ……………… 1
1.2 Description of the product …………………………….. 2
1.3 Profiles of the Company………………………………. 3
1.4 Description of the promoter …………………………. 3
CHAPTER TWO
2.0 Market Analysis ……………………………………….. 4
2.1 Market size……………………………………………… 4
2.2 Market strategy ………………………………………… 5
CHAPTER THREE
TECHNICAL ANALYSIS
3.1 Land and building (shop)…………………………….. 6
3.2 Location of the project ……………………………….. 6
3.2.1 Justification of the business ………………………… 6
3.2.2 Customers profile and benefit ……………………… 7
3.3 Machinery and equipment …………………………… 7
3.4 Annual depreciation of the Equipment …………….. 8
3.5 Raw materials and utilities required ……………….. 9
3.6 Labour and personal requirement …………………. 10
3.7 Sources of start up capital ………………………….. 10
CHAPTER FOUR
4.0 Managerial procedures ………………………………. 11
4.1 Housing and machineries ……………………………. 11
4.2 Sanitation and medication …………………………… 11
4.3 Production processes. ……………………………….. 11
4.4 Costing of the product. ……………………………….. 12
CHAPTER FIVE
5.0 Economic Analysis of the product …………………… 14
5.1 Working capital projection …………………………….. 14
5.2 Total investment cost…………………………………… 15
5.3 Sources of start up capital (table) ……………………. 16
5.4 Conclusion ………………………………………………. 16
5.5 Recommendation ………………………………………. 16
CHAPTER ONE
INTRODUCTION
The establishment of this bakery works is to obtain the production, technical, financial demand and supply, marketing and other related information on the prospect for having a bakery that will serve the state and beyond. Meanwhile, to get the company (Seed of Hope Baking and Food Industry) prepare for more great achievement.
This is a comprehensive write-up on the subject in order to prove, or otherwise state, the economic viability of the proposed project which is to investigate and report the need to establish one of the
best baking and food industry in this …………… state. to determine the operational cost and suggest the best cost which is the effective method of maximizing the expected yield. It is to also determine and report on the economic commercial and social feasibility of the market project.
1.1 PURPOSE FOR ESTABLISHING THE BUSINESS A
Many bakery companies may have their own different purpose for running the business, but to me,
(i) I want to make a different even among many in my production.
(ii) To produce bread and foods to the people of Ebonyi state and other state.
(iii) The company will create job opportunity to Nigerian citizens.
(iv) The company will stand as a help to the needy
(v) Another purpose for establishing the business is to prosper the company and making gain as well.
(vi) As regard to the place I want to establish the business, that is ……………………. where there is no bakery industry, in that case, I want to bring it nearer to the people of ……………………. and ……………………..
(vii) To have a compressive feasibility study on the subject matter, to prove or otherwise state the economic viability of the proposed project,
(viii) The establishment will improve the consumption and be of great nutritional value to the consumer as well.
1.2 DESCRIPTION OF THE PRODUCT
The proposed project will involve mainly, bread making snacks, chin-chin, and other food produce like fried chicken, fried rice, indiome etc.
Therefore bread, snacks, chin-chin will be produced from the flour in which sugar will also be added to it. This produce is classified under fats food which supplies oil to the body. It will always be packaged in a selophin (ie sachet bags) after passing through the baking processes. Other food produce should always be served based on how the customer wants it, other he/she to be taken it right there or it should be packaged for the customer in a take away materials.
The availability of the raw materials and its substitute in producing these goods and services are found in some parts of this Ebonyi state, I mean the main distributor of flour is located in this Ebonyi state that is Santa Maria, flour and sugar etc. distributor. ……………………. main market is another source of the company raw materials like groundnut oil as one of the raw material will be gotten from also in ……………………. main market.
1.3 PROFILES OF THE COMPANY (INDUSTRY)
Seed of Hope Baking and food industry is a liability company. The Head office of the company is located at ………….. Community ………. L.G.A, ……… state Nigeria.
The industry is authorized to engage in bread and other food production.
The industry sources her capital for investment from both the industry and his intermediate relative. The industry as a liability company, can sell her shares on the stock exchange market, and it has never for once obtain loan of any sort of any financial institution.
1.4 DESCRIPTION OF THE PROMOTER
The promoter of this project is Mr. A from …………… Local Government Area of ………….. State.
I learnt this baking food production industry in Est food industry ……………. (THIS IS A SAMPLE: 2st avenue Gwarinpa Estate ll Abuja and Devalo baking and food industry, Daban avenue off Sabongari road Bwari Abuja, Near Trem church). The training I had with the company leaves no doubt about my ability to succeed in the proposed project. I was trained as a baker, mixer, operator, cutter, table man, even the idea as a sales manager, all this areas, I was first received the training from Emu Bakery.
CHAPTER TWO
2.0 MARKET ANALYSIS
The main purpose of production is for marketing (for sale). The analysis of the market potentials of the project is therefore critical to the success of any investment. This market analysis will be discussed under two different heading as follows: the market size and marketing strategy.
2.1 MARKET SIZE
The market size of the project will includes all the people who buys, sells, or makes use of bread and our food product.
For the fact that there is no such establishment particularly in ……………………., the market size will include ……………………., …………. And ………….., also ……………………. capital city. Others who need the services of the equipments for their own production will also be given the services and hences constitute parts of the market for the equipment services.
As the business progresses, the promoter has it in mind to extend the market frontier to other neighbouring cities such as ……………………., …………. And ………….., also ……………………. etc. These commercial cities has the potentials for high demand for the product due to the combined factors of high population and high income level.
2.2 MARKET STRATEGY
Seed of Hope Baking and food industry will ensure a high quality product and services to its prospective numerous customers. This will be achieved by the recruitment of competent and qualified staffs. Good quality of machinery, equipment and raw material will also reflect high standards and quality available in the market so as to maintain the envisaged to quality standard. Though the pricing policy will be competitive, but penetration strategy of pricing will be adopted, so as to attract more customers.
CHAPTER THREE
TECHNICAL ANALYSIS
3.1 LAND AND BUILDING (SHOP)
The promoter will construct a factory structure in a plot of land for the project, hence the land has be gotten. He has also gotten the vehicle he will use in transacting the business raising of the structure is estimated at a cost
3.2 LOCATION OF THE PROJECT
The location of the business project is proposed to be situated at ……………………. community near ……………………. market. It is chosen to be there because of the areas the business want to be covering and for easy accessibility to the prospective numerous customers.
3.2.1 JUSTIFICATIONS OF THE BUSINESS
The people of ……………………. and ……………………. is blessed with a good marketer (business men) of different areas, but those into the business of selling bread, snacks and even chin-chin finds it very difficult to get it, thereby traveling all the way form …………..
……….., ……………………. to the capital city in order to get them (those goods). It is an this note, that the promoter discovers what they passes through in transacting the business and deems it necessary to sort out the problem in their land thereby putting a stop to it by having it in mind to established such industry in that particular part of the state.
Also there are some in the state that would have been in flour supply but for the fact that much people are not into bakery production business, they withdraw themselves from such. In that case also, the establishment of this project will enhance more distributors of flours into the state and also energize their motivation. There are some of other advantages attached to this project which include;
– employment opportunities: the establishment of this project has it in mind to provide Job opportunities for a good number of Nigerian youths who will be engaged in the production processes.
– Source of revenue: Government will benefit from the business through the business tax and personal income tax by the employees of the project.
3.2.2 CUSTOMER PROFILE AND BENEFIT
The products from the industry will be focused mainly in Ebonyi State as its main point of disposal and consumption since Ebonyi State towns are predominantly civil servants, in habited towns.
3.3 MACHINERY AND EQUIPMENT
The machineries and equipments required by the project and their prices includes;
|
S/N |
Items |
Details(Description) |
Qty |
Unit cost |
Amount |
|
1 |
Industrial oven |
Fire wood oven |
1 |
800,000 |
800.000 |
|
2 |
Lister |
8 HP lister Engine |
1 |
150,000 |
150,000 |
|
3 |
Milling machine |
To be constructed |
1 |
120,000 |
120,000 |
|
4 |
Slicing machine |
– |
2 |
120,000 |
120,000 |
|
5 |
Working table |
Production table and slicing table machine |
2 |
15,000,00 |
30,000 |
|
6 |
Mixing machine |
1 |
3,000 |
300,000 |
|
|
7 |
Scale |
1 |
3,000 |
3,000 |
|
|
8 |
Paddle |
2 |
2500 |
5,000 |
|
|
9 |
Baph |
1 |
8000,00 |
8,000 |
|
|
10 |
Pans |
As may be required |
200,000 |
200,000 |
|
|
11 |
Knives |
2 |
200 |
400 |
|
|
12 |
Cutter |
1 |
400.000 |
400,000 |
|
|
13 |
Water tank |
1 |
15,000 |
15,000 |
|
|
2133700 |
2151400 |
3.4 Raw Materials and Utilities Required
|
S/N |
Items |
Details(description) |
Unit cost |
Amount( |
|
1 |
Flour |
20 bags |
N7,300.00 |
146,000.00 |
|
2 |
Sugar |
21/2 bags |
7,800.00 |
19,500.00 |
|
3 |
Butter |
2 cartons |
4,200.00 |
8,400.00 |
|
4 |
G/Nut oil |
1 gallon |
5,200.00 |
5,200.00 |
|
5 |
Salt |
10 sachet |
50 |
500.00 |
|
6 |
Yeast |
5 sachet |
350 |
1750 |
|
7 |
Baking powder |
1 tin |
1300 |
1300 |
|
8 |
E.D.C |
1 gallon |
17,000 |
17,000 |
|
9 |
Kenas improver |
5 sachet |
600 |
3000 |
|
10 |
Milk |
10 sachet |
450 |
4500 |
|
11 |
Flavours |
4 lits of gallon |
2500 |
10,000 |
|
12 |
Honey |
4 lits |
500 |
2000 |
|
13 |
Curant fruit |
5 sachet |
500 |
2,500 |
|
14 |
Eggs |
10 crates |
750 |
7500 |
|
15 |
Water |
20 gallons |
30 |
600 |
|
16 |
Nut megg |
20 pieces |
30 |
600 |
|
17 |
Fire wood |
5,000 |
5,000 |
|
|
18 |
Diesel oil |
20 litres |
160 |
3200 |
|
19 |
Engine oil |
10 lits |
500 |
5000 |
|
20 |
Electricity |
Per. Month |
2,000 |
2,000 |
|
21 |
Car fueling |
50 litres |
100 |
5,000 |
|
22 |
Land |
1plot |
500,000 |
500,000 |
|
23 |
Building |
500,000 |
500,000 |
|
|
24 |
Nylon / label |
15.00 |
1,500.00 |
|
|
1,056,335.00 |
1,252,050.00 |
3.5 LABOUR AND PERSONAL REQUIREMENTS
The company is going to have the following workers for a start as seen in the table below;
|
S/N |
Items |
No |
Wages |
Amount( |
|
1 |
Manager/supervisor |
1 |
20,000 |
20,000 |
|
2 |
Machine operator |
1 |
12,000 |
12,000 |
|
3 |
Production assistant |
3 |
7,000 |
21,000 |
|
4 |
Marketers |
2 |
7,000 |
14,000 |
|
5 |
Driver |
1 |
15,000 |
15,000 |
|
6 |
Security |
1 |
7,000 |
7,000 |
|
7 |
baker |
1 |
15,000 |
15,000 |
|
83000.00 |
104000.00 |
3.6 ANNUAL DEPRECIATION OF THE EQUIPMENT
|
S/N |
Items |
Cost ( |
Useful life(years) |
Amount( |
|
1 |
Industrial ovun |
800,000.00 |
20 |
150,000 |
|
2 |
lister |
150,000.00 |
10 |
50,000.00 |
|
3 |
Milling machine |
120,000.00 |
15 |
40,000.00 |
|
4 |
Slizing machine |
30,000.00 |
8 |
20,000.00 |
|
5 |
Working table |
30,000.00 |
10 |
3,000.00 |
|
6 |
Mixing machine |
3,000.00 |
20 |
100,000.00 |
|
7 |
Scale |
3,000.00 |
2 |
200.00 |
|
8 |
Peddle |
5,000.00 |
2 |
100.00 |
|
9 |
Baph |
8,000.00 |
10 |
1000.00 |
|
10 |
Pans |
200,000.00 |
4 |
10,000.00< /p> |
|
11 |
Knives |
400.00 |
3 |
50.00 |
|
12 |
Cutter |
400,000.00 |
10 |
50,000.00 |
|
13 |
Water tank |
15,000.00 |
5 |
2,000.00 |
|
2151400 |
626150.00 |
3.7 SOURCES OF START UP CAPITAL
The project will be financed by the following body
|
s/n |
Sources |
Amounts |
Percentages |
|
1 |
Owners equity ie personal fund |
N500,000.00 |
79 |
|
2 |
Cooperative fund |
N412,3000.00 |
67 |
|
3 |
Loan |
N2,000,000.00 |
150 |
|
Total |
N2,912,300.00 |
296 |
CHAPTER FOUR
4.0 MANAGERIAL PROCEDURES
For maximum productivity to be attained from this proposed business, good management should first be in mind and an effort made to achieve that.
4.1 HOUSING AND MACHINERIES
Considering the environment in which the project is to be situated, the house should be well built with a proper size. it must be well fenced for security purpose. As regard to the machineries, the company will be established with a recommended machineries and equipment, to avoid any disappointment during production.
4.2 SANITATION AND MEDICATION
The company being a place where food is being manufactured, I will ensure the hygienic nature of the environment, for attracting customers. The medication aspect, all my product must be free from all, which the NAFDAC did not approve, to ensure cordial relationship with the NAFDAC.
4.3 PRODUCTION PROCESSES
The processes of producing the products proposed in the project are shown diagrammatically in the figure below flouràingredientsàmixingàmillingàcuttingàmoldingàturningàbakingàpackagingàdistribution.
(a) Fig. 1: flow diagram for bread production
Flour à ingredients à creaming à portioning à baking à packaging àdistribution.
(b) Fig. 2: flow diagram for cake production
flour à ingredients à mixing à millingàcutting à frying à packaging à distribution.
(c) Fig. 3: flow diagram for chin-chin production
Flour à ingredients à mixing ànodding àfillingàbakingàpackaging àdistribution
(d) Fig 4. Flow diagram for snacks production
4.4 COSTING OF THE PRODUCT
The establishment will mainly base on the production of bread, chin-chin, snacks and other food produce. In this write-up, we are going to observe the costing big loaves of bread, chin-chin, snacks.
COSTING OF BIG LOAVES OF BREAD
|
Raw material |
Buying cost |
Qty per item big loaves of bread |
Cost per item |
|
Flour |
73 |
– |
73 |
|
Label |
07 |
= |
07 |
|
Packing leather |
15 |
– |
15 |
Costing of chin-chin
|
Flour |
73 |
– |
73 |
|
Packaging leather |
02 |
– |
02 |
|
75 |
COSTING OF SNACKS
|
Flour |
73 |
– |
73 |
|
Packaging leather |
02 |
– |
02 |
|
75 |
CHAPTER FIVE
5.0 ECONOMIC ANALYSIS OF THE PRODUCTS
A critical analysis of the economic viability of the business project will be on focus.
5.1 WORKING CAPITAL PROJECTION
The working capital requirement of the project is estimated for a period of one week as stated below;
|
S/N |
Items |
Qty required |
Unit cost |
Amount( |
|
1 |
Flour |
20 bags |
N7,300.00 |
146,000.00 |
|
2 |
Sugar |
21/2 bags |
7,800.00 |
19,500.00 |
|
3 |
Butter |
2 cartons |
4,200.00 |
8,400.00 |
|
4 |
g/nut oil |
1 gallon |
5,200.00 |
5,200.00 |
|
5 |
salt |
10 sachet |
50 |
500.00 |
|
6 |
Yeast |
5 sachet |
350 |
1750 |
|
7 |
Baking powder |
1 tin |
1300 |
1300 |
|
8 |
EDC |
1 gallon |
17,000 |
17,000 |
|
9 |
Kimas improver |
5 sachet |
600 |
3000 |
|
10 |
Milk |
10 sachet |
450 |
45000 |
|
11 |
Flavours |
4 lits of gallon |
2500 |
10,000 |
|
12 |
Honey |
4 lits |
500 |
2000 |
|
13 |
Corant fruit |
5 sachet |
500 |
2,500 |
|
14 |
Eggs |
10 crates |
750 |
7500 |
|
15 |
Water |
20 gallons |
30 |
600 |
|
16 |
Nut megg |
20 pieces |
30 |
600 |
|
17 |
Fire wood |
5000 |
||
|
18 |
Diesel oil |
20 litres |
160 |
3200 |
|
19 |
Engine oil |
10 lits |
500 |
5000 |
|
20 |
Electricity |
Per. month |
2,000 |
2,000 |
|
21 |
Car fueling |
50 litres |
100 |
5,000 |
5.2 TOTAL INVESTMENT COST
|
s/n |
Items |
Amount(N) |
|
1 |
Preliminary expenses i.e business Reg loan application, producing of feasibility report. |
10,350.00 |
|
2 |
Project building |
500,000.00 |
|
3 |
Machinery and equipment |
2,151,400.00 |
|
4 |
Working capital |
250,550.00 |
|
Total |
2,912,300.00 |
5.3 CONCLUSION
Taking off from the raw material list above analytical indication of the enterprise using taken off budgeting, cash, costing of the product, the analysis, benefit, present worth and internal rate of return confirmed this. This project has a very high internal rate to return even at rate higher than what is charged for agricultural loan.
The value of the expected revenue of the each year of operation is reasonable hence debt repayment will not be difficult.
5.4 RECOMMENDATIONS
The credit institution is advised to grant the loan amount requested by the promoter to enable her realize the dream of the project.
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