Bread Manufacturing Business Plan – Small Business Project

Bread manufacturing project can be initiated as small scale and does not require major licensing. Bread is a hygienically manufactured and packed snacks food product available at cooperatively cheap price. In modern days bread is now becoming one of the essential food items in human diet due to its ready-made availability and high nutritive value. It is the most consumable wheat based bakery product. The bread is low margin high volume based processed food and also bread manufacturing is labor intensive.

The per capita consumption of bread in India is around 1.5 kg to 1.75 kg in various zones. The organized sector consists of around 1800 small scale bread manufacturers around the country, besides 25 medium scale manufacturers and 2 large scale industries which were permitted to continue on the basis of their production capacity.Wheat flour, yeast, sugar, salt, water and shortening agent are required as raw materials to manufacture bread. The plant and machinery and the technology required to manufacturing the bread, are completely available in India.


Since the consumption of bread is increasing rapidly day by day, the demand also is increasing enormously. So, though there are a lot of organized as well as private sector existing, but the demand will not meet totally by them in near future. Bread manufacturing industry is 4.00 million tons industry growing at the rate of  6 percent and is expected to grow at the same rate in the medium term. So, for new startup entrepreneur, it may become very good sector for investment.

Many different types of bread manufacturing formulations have been developed so far. These formulations are developed in different regions based on the 7 traditional food habits of the people. The main bread types can be classified as under.

1. Pan bread: This type of bread is popular in the economically developed countries including USA, Canada, United Kingdom and European nations.

2. Hearth bread or sour bread: This category of bread is produced with or without lactic acid fermentation. Hearth bread is baked in an open-hearth. These bread are becoming popular in France.

3. Flatbread or roti/chappati: This category of bread is popular in Asian countries. The product is unfermented and flat. This baked on a flat hot pan.

4. Rolls and other small fermented bread: These products generally have higher levels of sugar and fat in the formulation and thus typically have sweeter taste and softer bite characteristics.

Bread Manufacturing Project Synopsis: 

Plant Capacity: 5000 packets per dayPlant & Machinery: Rupees 12 Lakhs
Working Capital: Rupees 11 LakhsTotal Capital Investment: Rupees 36 Lakhs
Return: 13.53%Break Even: 80.44%

The actual cost of bread manufacturing project may deviate on change of any of the assumptions. You can modify the project capacity and project cost as per your requirement.