Biscuit has become a very important part of our life. And as the population grows, the demand for biscuits is bound to increase as part of everyday morning and evening snacks. For those interested in food industry this is a good industry to be in. The biscuits can be sold as a commodity, without much branding and as a branded product. The approximate investment as per NIIR (www.niir.org), is Rs 8 crores, with an expected return of 52% and a break even at 45.55%, for a production capacity of 30 tonnes/ day
The above figures by NIIR are approximations, and will be different as we customize to your land cost, the capacity you really plan, the extend of branding and marketing investment you make, and a host of other factors that affect your business model.
If you are interested in this industry you have to do the following essentials;
1. Study the competitors to find the gaps (unmet demands) that you can cover (market study)
2. Study the exact product category that you will fill in (product study)
3. Study the HR requirements, the operating processes and the cost of operations (operation plan)
4. Study the fixed investments that you have to make (land, machineries, patents etc)
5. Study the legal requirements, licenses and procedures
6. Study the industrial zones available, and evaluate if which zone is better (location plan)
7. Study all the processes that you can outsource
8. Study all the 3rd parties with whom you can establish business partnerships
9. Study how you can brand, market and sell your product
10. Design a business model that will make you different from your competitors (business model)
11. Workout the financial viability of the project (is it really worth it for you to start)
12. Work out the risk analysis and what are the risks involved and can you handle it (risk analysis)
13. Work out how much capital should you get from others and how you will do it (investment plan)
Do you have any experiences (good or bad) or concerns/opinions regarding this industry? If so please share with us.
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If you are interested in starting your own “Biscuit Factory” we can prepare the customized, actionable project reports, feasibility studies and business plans for you to have it right. You may contact us at email@example.com or call +91-9995-900-800
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With an approximate capital that can range from 30 crores plus, and an estimated return of 31% and break even at 38%. This can be an opportunity.Source: NIIR
The actual capital (returns and Break even) will change based on the capacity of the manchinery, cost of land and branding, marketing and other operational strategy. The above figure is just an approximation
At AASC, we prepare customized feasibility studies, projects reports, strategy reports and business plan presentations for projects in Kerala.
To know more about us, please visit www.ameenahsan.com