FEASIBILITY PROJECT REPORT ON

KODO MILLET COOKIES

Subject : Entrepreneurship Development (FBM-361)

Submitted By:
Sounak Biswas (3070920039)

Submitted To:
Dr. D. B Patel

College of Food Processing Technology and Bio Energy

Anand Agricultural University, Anand
Contents to be covered in the Report:

• Introduction
• Product Identification and Reason for Selection
• Marketing Mix
• SWOT Analysis
• Segmentation : Target Groups
• Site Map & Design
• Machinery & Equipment
• Production Feasibility
• Technical Feasibility
• Financial Feasibility
• Socio-Economic Feasibility
• Conclusion
 Introduction
What is Cookie?

A cookie is a baked or cooked food that

is typically small, flat and sweet. It
usually contains flour, sugar and some
type of oil or fat. It may include other
ingredients such as raisins, oats,
chocolate chips, nuts, etc. Generally,
wheat is one of the cereals used
extensively throughout the world for
the preparation of cookie.
Continue…

What is Kodo Millet Cookie?

Millet cookie is made from a fine flour of millet

with leavening and shortenings. There exists,
however considerable potential for large scale
manufacture and marketing of shelf-stable product
utilizing underutilized grains like Kodo millet as
the demand for ready-to-eat convenience food
products has been steadily increasing, consequent
to industrialization and convenience in using. The
product is made from Kodo millet flour and can be
consumed during tea time or in between the meal.
 Ingredients
Major Ingredients:

• Kodo Millet Flour

• Water
• Sugar Powder
• Shortening
• Invert Syrup

Minor Ingredients:
• Skimmed Milk Powder
• Salt
• Sodium Bicarbonate
• Ammonium Bicarbonate
• Vanilla essence
 Nutrition Facts
Serving Size : 1 Cookie (10 g)
Serving Per pack : 15
Serving Amount
Total Fat 6.2 gm
Cholesterol 0 mg
Minerals 2.6 mg
Total Carbohydrate 65.9 gm
Fibre 9.0 gm
Protein 8.3 gm
Phosphorous 188 mg
Calcium 27 mg
Iron 0.5 mg
Calories 346 kcal
 Scaling of Marketing Packaging
Ingredients

Cooling

Production
Creaming shortening, sugar
powder, invert syrup,
lecithin (5 - 8 min)

Flowchart : Baking (9 – 11
Dissolving salt, ammonium min at 205 °C)
bicarbonate, Sodium
bicarbonate separately in
water
Adding to the Adding Kodo Sheeting Cutting into
above mixture millet flour dough (3.5 circular shapes
and mixing (6 - and mixing mm (50 mm
10 min) (7-9 min) thickness) diameter)
Planetary Mixer Cookie Wire Cut Machine
 Product Identification and Selection:
• Product Name : Kodo Millet Cookies

• Major Ingredients : Kodo Millet Flour, Water, Sugar Powder, Shortening, Invert
Syrup

• Minor Ingredients : Skimmed Milk Powder, Salt, Sodium Bicarbonate,

Ammonium Bicarbonate, Vanilla essence
• Packaging Material : Endfold Wrapping

• Available Size :150 gm

• Shelf Life : 3 Months

• Storage Condition : Normal Room Temperature

 REASONS FOR SELECTION OF THE PRODUCT:

• The proposed business plans to establish a project for baking the flavored
breads. Every bakery offers the bread which is milky or simple or diet in only
one usual flavor. No bakery offers flavored bread so far in India.

• The basic idea behind creating this type of bread is to have bread in diet with
unique color and taste such that it is enjoyed mainly by kids going to school as
well as have fruit in some different form as many children do not like fruits in
diet.

• Not only children but also adults with busy schedule and frequent travelers
can have this bread who do not have time to cook and have food.
 Marketing Mix….

PRODUCT:-
• Ready To Eat Product
• Convenient size
• Cholesterol free
• Provides new dimension to
conventional breads
• Highly Nutritious
Continue…

PRICE:-

• Value based pricing

• Internal cost Reduction
• Competitive based pricing
 Continue…

PLACE:
• Channels:- Bakery shop, Super markets, Whole sellers, Retail store
• Hotels and Restaurants
• Canteens / Snack Center
• Location:-
• College Campus
• Malls
• Near to school and office area
 Continue…

PROMOTION:
• Consumer’s word of mouth
• Advertising:- Television, Newspaper
• Sales Promotions:-
• Sampling Program
• Free Trials
• Point of purchase displays and
demonstration
Continue…

PROCESS:
• Hygienically Processed and packed
• Automated machinery
• Quality assurance test laboratories

PEOPLE :
• Health benefits
• Consumer satisfaction
SWOT Analysis…

 Strengths:

• Innovative offering so getting customer equity.

• No existing specific competitor.
• Reasonable prices for low income groups.
• Easy availability.
Continue…

 Weaknesses:
• No brand recognition
• No separate outlet
• New product hesitation among consumers
Continue…

 Opportunities:

• First mover advantage as no competitor has ever introduced this

taste.
• This new type of bread will attract such type of consumers who are
taste changers.

 Threats:
• New product so people may not accept flavored bread.
• Low shelf life of the product may not catch consumer’s attention.
 SEGMENTATION….
 Demographic Segmentation:

• All Age People (Mostly Kids)

• Both Gender
• For Low/High income people
• For every region
Continue…

Geographic Segmentation:
• Both Urban & Rural Area
• National Market

 Behaviour Segmentation:
• Seeking of Ready to Eat product.
• More concerned about nutritional value and health
benefits.
Continue…..

Psychographic segmentation:
• Having busy lifestyle
• Having a mindset to try and adapt new food
in diet
• Concerned more towards nutritional as well
as flavor requirements
 TARGET MARKET SEGMENTS…

• School-going Children ( As their tiffin for

recess break)
• College Students
• People with a busy schedule who needs an
instant and a quick readymade savory item.
• Frequent travelers
 TECHNICAL FEASIBILITY
SITE SELECTION:
• Raw material supply
• Target market
• Capital amount
• Traffic volume
• Population base
• Work force availability and cost
• Road facilities
• Waste disposal and effluent management
• Water supply and drainage facilities
• Environmental Issues
SELECTED SITE FOR FACTORY –Ambala, Haryana
 SITE MAP & BUIDING DESIGN
Building layout is designed according to the rules and specification of any food
processing plant. The following points have been considered:

• Separate warehouse for raw material and finished products

• Flooring design
• Area for loading & unloading

• On site waste treatment design

• Expanding facilities

• Parking Areas and Transportation Facility

Building Layout
and
Design
 Human Resource Management

General Manager

R&D Sales Production and Financial

Department Department Supply Dept. Department

Equipment Purchase Planning

QC Dept. Dept.
Mfg. Dept. Dept. Dept.

Packaging Production Warehouse

Laboratory
Dept. Dept. Dept.
 FINANCIAL FEASIBILITY

• Variable costs are expenses that vary in proportion to

the volume of goods or services that a business
produces. In other words, they are costs that vary
depending on the volume of activity. The costs
increase as the volume of activities increases and
decrease as the volume of activities decreases.

• A fixed cost is a cost that does not increase or decrease

in conjunction with any activities. It must be paid by
an organization on a recurring basis, even if there is no
business activity
 Fixed Cost
Description Cost (Rs.)
Land and land development 25,35,000
Factory Design 4,00,000
Raw Material Storage 3,00,000
Plant and Machinery
Dough Maker 75,000
Moulding Machine 60,000
Proofing Machine 4,00,000
Baking Oven 1,60,000
Bread Slicer 50,000
Packaging Machine 1,50,000
Miscelleneous Fixed Assets 1,50,000
Total Fixed Cost 42,80,000
 Variable Cost (Per Month)
Description Cost (Rs.)
Raw Material 5,00,000
Transportation 54,000
Electricity 1,00,000
Machinery Maintenence 25,000
Supply Chain Management 75,000
Employees Salary 5,00,000
Packing Cost 50,000
Training Cost 15,000
Marketing Cost 1,00,000
Total Variable Cost 14,19,000
 Total Fixed Cost(Rs.) Total Variable Cost(Rs.) Total Cost(Rs.)
42,80,000 14,19,000 56,99,000

Cost For Package size of 180 gm:

Capacity Of Plant : 200 Kg/hr

Shift : 10 hr

Average Production per month : 2000*24 (regular days) (kg/hr) = 48000 Kg

Total Cost (Rs.) = 56,99,000 Rs.

Cost of Product Per Kg(Rs.) = 56,99,000 / 48000 = 118.72 Rs./kg = 120 Rs./kg

Cost Of Product Per 180 gm(Package Size) = (120) * (180) / 1000 = 21.6 Rs.
Continue…

Description Cost (Rs.)

Cost of product per 180 gm 21.6

Overhead and sales 1.00

Profit Margin 4.76

Retailer Margin 2.64

Total Cost (Price of the Product) 30 Rs.

 Break Even Point Analysis

Based On Unit :
Selling Price = 30 Rs.
Variable Cost = 6.88 Rs.
Fixed Cost = 23.12 Rs.

Total Fixed Cost = 42,80,000 Rs.

Fixed Cost (Per Unit) = 23.12 Rs.

Break even point in unit =

42,80,000/23.12 = 1,85,121.107units
= 1,86,000 units
 Environment Feasibility

The business of producing flavored bread is planned to carry

out according to the rules and regulation enforced by the
Central Pollution Control Board (CPCB):

The following points have been kept in mind:

• Proper Disposal of waste water.

• Strategic Disposal of solid waste.

• Non release of toxic fumes into the environment.

 Socio – Economic Feasibility
CONSUMER ENVIRONMENT EMPLOYEE SOCIETY
• Safe and • Effective waste • Creating job • Providing better
nutritious disposal. opportunities quality products for
product a healthy society.
• Non release of toxic • Giving sufficient
• Reasonable fumes into the wages
price environment • Employee
welfare
 Conclusion:

Considering the various feasibility aspects of flavored bread viz. Technical,

Financial, Environmental and Socio-Economic and the various marketing
strategies that may be employed the business of setting up and producing
flavored bread in India is found to be an economical and profitable venture and
also at the same time it provides an opportunity to explore such market that is
relatively niche in India.
 References :
• https://www.slideshare.net/AlirazaAfzal/new-product-launching-strategy
• https://www.slideshare.net/alichoudharyaries/ptetzel-bread-flavered-bread
• Detailed Project Report on Bread Making Unit By NIFTEM, Sonipat, Haryana
Thank You