BEETROOT COOKIES

DETAILED PROJECT REPORT

Submitted to:
■ Department of Food Science &
Technology College of Agriculture
Govind Ballabh Pant University
of Agriculture & Technology

Submitted By:
■ PALLAV CHHAWAN (I’d.: 54460)
■ ELP Food Technology (AFS- 491)
Table of contents:
S.No. Topic
1. Introduction
2. Details of the company
3. Problem statement
4. Executive Summary
5. Partnership
6. Project brief
7. Product
8. Project Plan
9. Connectivity with nearby districts
10. Tie-ups
11. Project Schedule
12. Processing Flowchart
13. Benefits of the product
14. Financials
15. Means of finance

16. Marketing

17. Marketing Strategies

18. Government Approvals

19. Innovation Tried

 Introduction:

■ The company is currently conducting a feasibility study of starting a plant and

manufacturing unit to procure and process the beetroot cookies.
■ There are many other growing segments of food industry. The entrepreneurs shall
study to sector thoroughly before investing in food industry. The size and outlay of the
project depends upon the market size, type of technology, and knowledge about the
product.
■ The entrepreneurs may decide upon the type of products based on raw material
availability and also market demand in project area.
 Details of the company:
■ Name : Magic Bakers

■ Industry: Food processing

■ Registered office: Plot no. 11, Near GuruDev Complex, Bareilly Road,
Haldwani, Nainital, Uttarakhand, 263139
 Problem Statement
■ To make people aware about the importance and health benefits of beetroot based
products.
■ To commercialize the beetroot based products among people in small cities.
■ Due to lack of knowledge of beetroot and its dislikes among people specially
youths ,this company tries to improve their perspective for the same.

Executive summary
■ Magic Bakers is an exciting company in the field of bakery food industry, which is
mainly focusing on providing healthy and tasty cookies to the customers
■ Due to increasing health consensus in the customers has led to the search of
something healthy and vitamin enriched sweet and snacks which are comparatively
healthier and tastier.
■ On behalf of this knowledge, Local Delights Is trying to commercialize beetroot
based cookies among the local people of Uttrakhand .
■ So here it is reported the detailed progress of the industry, as how it
is going to operate and function in near future if allowed and
permitted.

Partnership:
■ New entrepreneurs may start their business as an individual,
partnership firm, or a joint stock company.
■ Individual & proprietary concern should have their PAN number and
should preferably have a bank account. Partnership firms should
execute a partnership deed as per Indian Partnership Act 1932 on a Non
Judicial Stamp Paper as per the Stamp Act of the State Government and
register the partnership firm with the Ministry of Corporate affairs.
 Project Brief
■ The proposed project is to be located at Plot no. 11, Near GuruDev
Complex, Bareilly Road,Haldwani, Nainital, Uttarakhand, 263139.The
Plant is situated at an ideal location with all necessary infrastructure
facilities to start a manufacturing plant.
■ The nearby towns are Kathgodam, Rudrpur and Lalkuan, Road and
rail transportation to Dehradun, Rishikesh, Bareilly and Delhi,
ensuring good connectivity all around.
The Plant’s features:
The plant’s capacity is planned at 12,000 kg p.a. installed with technologically
advanced and state of the art machinery.
The plant will also house a captive diesel generator facility and in-house water
supply, to ensure smooth operations.
The plant also proposes to obtain ISO & allied Quality Assurance Certifications after
commencement of its operations.
The company plans to house the team of highly skilled process workers and
management specialists, who will prove best to the Industry.
 Product:
■ The company intends to produce healthy and tasty cookies enriched with the goodness
of beetroot.
■ Beetroot is highly nutritious yet underrated food amongst people. By preparing
beetroot riched delicacies, we are trying to enhance the nutrition status of people
without compromising with the taste.
■ The product which our industry will manufacture is:
“BEETROOT COOKIES”
 Project plan:
■ The Company is setting up a processing and manufacturing plant
measuring around 400 sq. meters area, in Nainital district of
Uttarakhand.
Connectivity with near by
district
 Tie -ups
■ The company has entered into agreement with a well-known sweet
shop, Standard Sweets and Brew and Bite Cafe , near by the location.

■ The shops will provide the supply and sale of a product at optimal cost
for the mass sale in the local city. Our own production centre will also
be an outlet for the sale of the product to the interested buyers.
 Project Schedule:
■ The company will start the construction of factory shed from the
month of August and start procurement in food plant and machinery
from the month of August as well.

■ The workers will start the production from September -October

depending upon the requirements.

■ The company will draw the working capital limit and will start the
initial production for which the payment will have to be made in
advance for which there is need of working capital.
Particulars July August September October November

Incorporation of
company

Approvals

Fund Raising

Construction of
Factory shed

Plant and
machinery
procuremen
t
Production Starts

Packaging
and sale
Processing Flowchart:
Mixing of
ingredients
(Maida,
powedered sugar,
curd, milk cream,
olive oil,essence)

Baking
Some Benefits Of This Product :
1. It may have anti-cancer properties due to containing betacyanin.
2. It may lower blood pressure due to high nitrate concentration.
3. It may improve exercise performance and support energy levels.
4. It may improve digestive health due to high fibre content and the
presence of glutamine.
5. It may have anti-inflammatory and antioxidant properties.
 Financials:
Cost of project: (All numerical values are in lakhs)

Particulars Amount Own contribution Bank

Finance

Land and - Self owned -

building
Plant and 6.80 1.70 5.10
machinery

Furnitures and other 1.00 0.25 0.75

assets

Working capital 3.33 0.83 2.50

Total 11.13 2.78 8.35

 Balance Sheet:
Particulars 1st Year 2 nd year 3rd year 4th year 5th year
Liabilities
Capital 3.43 4.71 6.09 7.54
opening
balance
Add:- Own Capital 2.78

Add:- Retained profit 1.65 2.37 3.18 4.15 4.71

Less:- Drawings 1.00 1.10 1.80 2.70 3.20

Closing Balance 3.43 4.71 6.09 7.54 9.05

Term loan 5.20 3.90 2.60 1.30

Working Capital limit 2.50 2.50 2.50 2.50 2.50

Sundry Creditors 0.59 0.66 0.74 0.83 0.92

Provision and 0.20 0.24 0.29 0.35 0.41

other liabilities
Assets
Fixed 7.80 7.80 7.80 7.80 7.80
Assets
(Gross)
Depreciation 1.12 2.08 2.89 3.59 4.19

Net 6.68 5.72 4.91 4.21 3.61

Fixed
Assets

Current Assets

Sundry 3.33 3.78 4.23 4.72 5.25

Debtor
s
Stock in hand 0.66 0.74 0.83 0.92 1.02

Cash and 1.25 1.77 2.25 2.67 3.01

Bank
Total 11.92 12.01 12.22 12.51 12.88
 Profitability Statement :
Particulars 1st Year 2 nd Year 3rd Year 4th Year 5th Year
Sales 33.26 37.77 42.31 47.20 52.46
Cost of sales
Raw material 17.64 19.89 22.27 24.89 27.65
Electricity expenses 1.01 1.21 1.45 1.60 1.76

Depreciation 1.12 0.96 0.82 0.70 0.60

Wages 4.56 5.02 5.52 6.07 6.68
Repair 0.50 0.76 0.85 0.94 1.00
Total cost of sales 24.58 27.80 30.87 34.16 37.64
Gross Profit 8.69 9.98 11.44 13.03 14.82
Other Expenses (interest 7.04 7.60 8.25 8.88 9.59
to loan, Salary to staff,
rent)

Net Profit 1.65 2.37 3.18 4.15 4.71

Production of cookies
Production Capacity Kilograms (kg)

1st year 70% 8,400

2nd year 75% 9,000

3rd year 80% 9,600

4th year 85% 10,200

5th year 90% 10,800

 Power, Salary & Wages Calculation:

Utility Charges:
Particulars Value Description

Power connection 6 KWH

Consumption per day 48 Units

Consumption per month 1200 Units

Power bill per month 12000 Rupees

 Break up of Labour Charges
Particulars Wages per month No. of Employees Total Salary
(in Rupees) (in Rupees)

Skilled 11000 2 22000

Unskilled 8000 2 16000
Total Salary 456000

Staff Salary
Particulars Salary per month No. of Employees Total Salary

accountant 15000 1 15000

Administration 12000 2 24000
staff
Total salary per 39000
month
Total annual staff 468000
charges
 Depreciation:
Note: Here machinery and plant are depreciated at the rate of 15% and furniture
at
10%.
Particulars Fixed cost Depreciated Depreciated Depreciated Depreciated Depreciated
cost cost cost cost cost
(1st year) (2nd year) (3rd year) (4 th year) (5th year)

Machinery 6.80 5.78 4.91 4.18 3.55 3.02

and plant

Furniture 1.00 0.90 0.81 0.73 0.66 0.59

 Break Even Point
Analysis:
Year I II III IV V
Total Sales 33.51 37.80 42.34 47.23 52.49
Variable 25.06 28.32 31.71 35.26 39
Expenditure

Total Fixed 6.81 7.11 7.45 7.82 8.26

Expenses
Break even 26.98 28.34 29.67 30.85 32.14
sales

Note: All the numerical values represent amount in

Lakhs.
 Means of Finance:
Financing to food processing falls under priority sector lending. The loans to
units meeting the criteria of MSME. Such units can be financed by any
Scheduled
Commercial Banks, Regional Rural Banks, and Cooperative Banks. •
■ Margin Money: The margin money varies from minimum 10% to 25% of the
total project cost.
■ Bank Loans: It is compulsory to take bank loans to avail various subsidy schemes
of government. The bank loan taken by me for my Industry is of ₹8.35 Lakhs
(Eight Lakhs thirty five thousands) at an interest rate of 10.70% per annum. and
with a payback period of 5 years. We kept our land papers as security in bank.
■ Savings: We also invested the amount of money we’ve saved. We used Rs. 2.78
Lakhs from our side.
 Marketing:

■ Marketing of beetroot cookies is the biggest challenge. There are several popular
brands in the market which acts as an entry barrier for new food products.
Therefore especial emphasis need to be given in marketing and branding of the
product.
■ The units shall also allocate remarkable budget for promotion and advertisement.
■ Indians are fond of trying new types of cuisines. Apart from households,
restaurant, roadside shops, hostels etc. are bulk consumers of the product. New
comers need to work on competitive pricing and hence the price decided by us is
equivalent to many other cakes and is decided ₹200 per paket of 200gm, the
amount one can easily pay for it.
 Marketing Strategies:
■ Designed an appealing sticker for packaging which will attract buyers and
will represent our culture.
■ Packaging in transparent air tight containers which will allow consumers to see
the product from outside.
■ The product will be available in many shops/ retailer’s shops from where one can
easily buy.
■ 10% discount on pre booked bulk orders with order more than 100 packets at
once which consumers buy for any event or ceremonies.
 Government Approvals:
■ NOC with local bodies like Nagar-Palika / Municipal Corporation.
■ Consent to establish from State Pollution Control Board.
■ Approval for layout plan for construction.
■ Registration with District Industry Centre as Small/Medium
Enterprise.
■ License from FSSAI.
■ Permission to commence production from State Pollution Control
Board.
■ Certification of the trade mark or logo.
Innovation tried:

■ Incorporation of beetroot in cookies.

Advantages:
1. It may have anti-cancer properties due to containing betacyanin.
2. It may lower blood pressure due to high nitrate concentration.
3. It may improve exercise performance and support energy levels.
4. It may improve digestive health due to high fibre content and the
presence of glutamine.
5. It may have anti-inflammatory and antioxidant properties.
THANK
YOU!