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Bakery Company

This document discusses the bakery industry and bread production in India. It provides background on the size and growth of the bakery industry. It then focuses on Eastern Agro Foods Ltd, a large bakery company that pioneered sliced bread production in India. The company has over 4,000 employees and sells products in over 6,000 outlets across India. It produces various types of bread, including white bread, whole wheat bread, and fiber-increased breads. The document analyzes the direct and indirect costs involved in bread production and concludes that while bread is not a staple food, it has become a popular substitute available through wide distribution channels.

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Neha Dhuri
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138 views3 pages

Bakery Company

This document discusses the bakery industry and bread production in India. It provides background on the size and growth of the bakery industry. It then focuses on Eastern Agro Foods Ltd, a large bakery company that pioneered sliced bread production in India. The company has over 4,000 employees and sells products in over 6,000 outlets across India. It produces various types of bread, including white bread, whole wheat bread, and fiber-increased breads. The document analyzes the direct and indirect costs involved in bread production and concludes that while bread is not a staple food, it has become a popular substitute available through wide distribution channels.

Uploaded by

Neha Dhuri
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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INTRODUCTION

Bakery industry in India is probably the largest among the p r o c e s s e d f o o d i n d u s t r i e s , p r o d u c t i o n o f w h i c h h a s b e e n increasing steadily in the country. Bakery products once considered as sick mans diet have now become essential food items of the vast majority of population. The two major bakery industries, viz., bread and biscuit account for about 82% of the total bakery products. The annual production of bakery products which includes bread, biscuits, pastries, cakes, buns, rusk, etc., most of which are in the unorganized sector, is estimated to be in excess of 3 million tonnes. The production of bread and biscuits in t h e c o u n t r y b o t h i n t h e o r g a n i z e d a n d u n o r g a n i z e d s e c t o r s i s estimated to be around 1.5 million tonnes and 1.1 million tonnes respectively. Of the total production of bread and biscuits, about3 5 % i s p r o d u c e d i n t h e o r g a n i z e d s e c t o r a n d t h e r e m a i n i n g i s manufactured in the unorganized sector. Indian Bakery sector is indicating significant growth both in terms of volumes and customer base. The sector, which is estimated at Rest 3,500 corries c u r r e n t l y r e g i s t e r i n g a 4 0 % g r o w t h a c c o r d i n g t o i n d u s t r y sources. The production of Bakery products has increased from5.19 lakh tonnes in 1975 to 18.95 lakh tonnes in 1990 recording four-fold increase in 15 years. Some of the well-known and most frequented bakeries in the country are Sweet Chariot, Modern Bakery, Daily Bread i n Bangalore, Monogynies, Birdie's, Croissants in the west, and in the north and eastern parts of the country, there are quite a few big players too.

COMPANY PROFILE
Eastern Agro foods ltd has 4367 employees, and sells its products in over 6000 outlets across India. Till 1958, there were no breads in the organized sector and bread consumption was habit typified by the British. M/s Eastern Agro Foods ltd. Has a mechanised bread unit was set up in Mumbai with the name Fresh Bread which produced sliced bread and packed it. Thus, Fresh bread was not only the pioneer, but also inculcated in the people of Mumbai the habit of eating white sliced bread. Objectives of the study : 1. To find out the cost incurred at each level of activity. 2. To find out the profit or loss earned by the organisation. 3. To find out the segregation of overheads.

PRODUCTS OF THE COMPANY


BREAD
Bread is the cheapest basic instant food available for consumption. Though bread is not a staple food in the country, its consumption has increased over the years. In India it is still secondary staple food when compared to chapatti, pure or rice. The different types of bread available are White bread, Wholemeal or whole wheat bread, mixed Grain bread, Kibbled wheat and cracked wheat bread, Fibre-increased white breads, Rye bread. The story of one of India's favourite brands reads almost like fairy tale. Once upon a time, in 1892 to be precise, a biscuit company was started in a nondescript house in Calcutta (now Kolkata) with an initial investment of Rest. 295. The company we all know as Eastern Agro foods put ltd today is one of Indias best known brands and also one of the most admired Food Brand in the country. Having succeeded in garnering the trust of almost one-third of Indias one billion populations and a strong management at the helm means Eastern Agro foods put ltd will continue to dream big on its path of innovation and quality. And millions of consumers will savers the results, happily ever after. The company has four productions. The Eastern Agro foods put ltd Brand is all about eating healthy for leading a better life. It is the largest company in the food processing industry whose product range also includes breads and cakes. Eastern Agro foods put ltd has a , Digestive wheat bread, daily fresh brown bread, Daily Fresh Bread and fruit bread of Eastern Agro foods put ltd.

DATA ANALYSIS
Direct cost To manufacture one unit oif bread the following raw materials are required. Flour Water Yeast salt etc

Direct labour Its is approximately % of the prime cost. This percentage is because a good amount of work is automated as a result of which human resources are diverted to more productive areas such as sales and marketing.

Direct expenses They include costs incurred in bringing the raw materials into the factory which is carriage inward. It also included the amount paid loading unloading charges. Factory overheads It includes depreciation on machinery, supervisors salary, power, maintenance and rent. The depreciation is on straight line basis method. Office and administrative overheads They include depreciation on office furniture @ 5 % on SLM. Also salary, rent, electricity bill, telephone charges. Selling and distribution overheads It includes advertisement and other promotional activities for hoardings, TV commercials, newspaper ads, delivery vehicle and packaging. The food grade plastic is used to pack the bread. Profit The profit arises out of the selling per unit of the product. Profit is 20% of the selling price.

CONCLUSION
As per the study, we would like to conclude that bread not being the staple food in India, has definitely evolved as a substitute for chapattis, rotas, rice, etc. It is easily available due to its excellent distribution channels. Britannia bread has acquired almost50% stake in daily bread market. Today a variety of breads are available, such as brown bread, whole wheat bread, chutney bread, etc. Fresh bread has entered rural market also.

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