What is a biscuit project report?
A biscuit project report is a detailed project report (DPR) for a unit that mixes maida, sugar and fat into dough, forms it on a moulder or cutter and bakes it in a tunnel oven. It sets out the machinery, raw materials, FSSAI licences, project cost, five-year projections, DSCR and break-even that a lender checks.
Entrepreneurs use it to size the line and apply for a term loan, PMEGP or PMFME support; banks use it to judge whether the unit can repay.
Also known as: biscuit manufacturing project report, project report on biscuit, biscuit plant DPR, biscuit factory business plan.
What a bank checks in a biscuit project report
A credit officer reads a biscuit project report for the costs that swing profit and the cash the unit ties up. These are the values in our sample report and why each one is tested.
Maida, sugar and fat take about half of every rupee of sales. A report that shows much less is usually using a retail price or a thin recipe.
Vegetable fat and sugar are 20% each. Their prices move often, so the bank wants to see what a rise of 10% does to profit and DSCR.
Printed laminated film and cartons cost far more for biscuits than for most foods. Leaving them light is a common error in small reports.
Distributors and contract buyers expect credit. Debtor days, with 15 days of raw material stock, set the cash credit limit the unit needs.
Values are the assumptions in our illustrative sample. Your report uses figures for your capacity, recipe and buyers.
Biscuit manufacturing plant cost in India
Cost rises with daily output and with how much of the line is continuous. The large tier is the plant modelled in our sample report; the two smaller tiers are indicative ranges.
Small batch unit
₹25–60 lakh
About 300–800 kg per day, rotary or batch oven
- Machinery₹12–30 lakh
- Shed fit-out (rented)₹5–15 lakh
- Working capital margin₹3–8 lakh
Can fit PMEGP or PMFME, subject to limits
Mid-size line
₹1–1.8 crore
About 1,000–2,000 kg per day, short tunnel oven
- Machinery₹50–90 lakh
- Land and building₹35–65 lakh
- Working capital margin₹5–10 lakh
MSME term loan, often with CGTMSE cover
Semi-automatic plant
₹209 lakh
2,800 kg per day, 8,40,000 kg per year
- Plant and machinery₹102.50 lakh
- Land and building₹71.93 lakh
- Working capital margin₹9.13 lakh
Term loan ₹157 lakh (75%), promoter ₹52 lakh
Small and mid-size ranges are indicative. The sample's land and building figure is land and site development plus building and civil works.
Biscuit manufacturing process
Most Indian units run two kinds of dough. Hard dough gives glucose, Marie and crackers; soft dough gives cookies and cream biscuit shells. The forming step is where the two differ.
- Sugar grinding and weighing
Sugar is ground to a fine powder so it dissolves evenly, and each batch of flour, fat, sugar and milk solids is weighed to the recipe.
- Creaming and mixing
Fat, sugar, glucose and water are creamed first, then maida and leavening agents are added; hard dough is mixed longer to develop gluten.
- Forming
Soft dough is pressed into shapes by a rotary moulder, while hard dough is sheeted, gauged to thickness and cut by a rotary cutter.
- Baking
A tunnel oven with separate heat zones raises the dough, sets the shape and drives moisture down for a long shelf life.
- Cooling
Biscuits cool on a long conveyor before packing; packing them warm makes moisture condense inside the pack and turns them soft.
- Packing and labelling
Biscuits are stacked into pillow pouches of printed laminate, then cartoned, with net quantity, MRP and FSSAI number on every pack.
Raw materials for biscuit making
Maida is the largest input at 42% of raw material cost in our sample. FSSAI rules allow vanaspati, refined edible oil, butter, margarine or ghee as the fat, so the choice of fat is a cost and taste decision.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Wheat flour (maida) | 42% | 124.46 |
| Sugar | 20% | 59.27 |
| Vegetable fat | 20% | 59.27 |
| Milk solids and glucose | 8% | 23.71 |
| Leavening agents, salt and flavours | 10% | 29.63 |
| Total | 100% | 296.34 |
Packing film and cartons are costed separately in the sample, at 7.5% of sales.
Biscuit making machine list and cost
The moulding line and the tunnel oven together take 70% of the machinery cost in our sample. Oven length decides output, so it is sized first and the rest of the line is matched to it.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Semi-automatic biscuit line with rotary moulder | Feeds dough and forms biscuits onto the oven band | 46.13 |
| Gas-fired tunnel oven | Bakes biscuits continuously in heat zones | 25.63 |
| Pillow pouch packing machine | Wraps biscuit stacks in printed film | 10.25 |
| Dough mixer | Creams fat and sugar and mixes the dough | 8.20 |
| Cooling conveyor | Brings biscuits to room temperature before packing | 7.17 |
| Sugar grinder | Grinds sugar to powder for the dough | 5.12 |
| Total plant and machinery | 102.50 | |
Costs are the sample report's estimates for a 2,800 kg per day line. Get current quotations before you finalise.
Who buys biscuits from a new unit?
Glucose, Marie and salted biscuits sell every day with tea, and small towns are served as much by regional brands and private labels as by national companies. A new unit wins on freshness, ex-factory price and the margin it leaves for the distributor.
- Distributors and stockists who supply kirana stores
- Supermarkets and retail chains buying private label
- Larger biscuit brands buying on contract
- Tea stalls, canteens and institutional buyers
- Wholesalers in nearby towns
Contract work lowers the first-year risk: many units sign a supply contract with a brand or chain before they build their own label. A signed contract gives the bank a named buyer for part of the output.
Licences, standards and GST for a biscuit unit
Food licensing and pack labelling matter more for biscuits than factory permits do. These are the approvals checked for this page as of October 2026.
| FSSAI licence | State manufacturing licence for turnover from ₹12 lakh to ₹20 crore, central licence above that, basic registration only below ₹12 lakh |
|---|---|
| Food standard | Biscuits, including cookies, crackers, wafers and cream biscuits, are covered by FSSAI regulation 2.4.15 for bakery products; limits include acid insoluble ash of 0.1% and fat acidity of 1.5% |
| BIS standard | IS 1011:2002 for biscuits; certification is voluntary |
| Packaged goods | Registration as a manufacturer or packer under Rule 27 of the Legal Metrology (Packaged Commodities) Rules, 2011 |
| Pollution board | The CPCB green list covers bakery units below 1 tonne per day with a gas or electric oven; a larger plant should confirm its category with the State Pollution Control Board |
| GST | 5% on biscuits from 22 September 2025, down from 18% |
| Business registration | Udyam (MSME) and GST registration, plus fire NOC and factory licence where state rules apply |
Loans and subsidies for a biscuit unit
PMEGP
Manufacturing projects up to ₹50 lakhMargin-money subsidy of 15–35% for new units, with 5–10% own contribution. Suits a small batch unit.
PMFME
35% capital subsidy, up to ₹10 lakhFor micro food processing units, with 10% own contribution. Useful when upgrading an existing bakery to a biscuit line.
MSME term loan with CGTMSE
Mid-size and larger plantsCollateral-free guarantee cover for eligible micro and small enterprises; this is the usual route for a plant like our sample.
Scheme limits change. Confirm current terms with the bank or the scheme portal before applying.
Mistakes that weaken a biscuit project report
- Using MRP as the selling price
Retailers and distributors take their margins out of MRP, so sales must be worked out at the ex-factory rate, net of GST.
- Ignoring baking loss and breakage
Dough loses weight as moisture in the oven, and broken biscuits and trim cannot be sold as packs. Output must allow for both.
- No plan for fat and sugar price swings
A report built on one month's fat price can look healthy and then miss its DSCR when prices rise. Test a higher price.
- No named buyers
Banks look for distributor tie-ups or a contract manufacturing offer. A plan that sells only under a new brand from day one is harder to fund.
How NPCS helps you set up a biscuit unit
- Product mix and capacityChoose between glucose, Marie, cookies and cream biscuits, and size the oven to what you can sell.
- Line and oven selectionCompare moulder and cutter lines, oven length and fuel, and collect machinery quotations.
- Bank-ready project reportProjections, DSCR and working capital in the format your bank, PMEGP or PMFME office asks for.
- Layout and food approvalsA hygienic plant layout and the FSSAI, Legal Metrology and pollution approvals for your state.
NPCS's client list includes 15 bakery and confectionery assignments, 3 of them for biscuit projects, for entrepreneurs and companies in India and abroad.
What's inside the biscuit sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
18 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
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Biscuit project report: frequently asked questions
What is the biscuit manufacturing plant cost in India?
It depends mainly on daily output and how automatic the line is. A small batch unit in a rented shed needs roughly ₹25–60 lakh, and a 1,000–2,000 kg per day unit about ₹1–1.8 crore. Our sample report models a 2,800 kg per day plant at ₹209 lakh, including land and building. These are indicative ranges; your report works out the cost for your site.
Is biscuit manufacturing profitable?
It can be when the unit sells at a sound ex-factory price and runs well above break-even. In our illustrative sample, a 2,800 kg per day plant earns a 31% return on investment in Year 3. It breaks even at about 40% of capacity and pays back in about 2.8 years. Fat and sugar prices and distributor margins move these results most.
Which machines are needed for biscuit making?
You need a sugar grinder, a dough mixer, a forming machine, a tunnel oven, a cooling conveyor and a pouch packing machine. The forming machine is a rotary moulder for soft dough, or a sheeter and rotary cutter for hard dough. Cream sandwich or oil spray units are added for those product types. In our sample, the moulding line is the largest machinery cost.
What licences are needed to start a biscuit factory?
You need an FSSAI licence, usually a state manufacturing licence for a unit of this size, along with Udyam and GST registration. Packaged biscuits also need Legal Metrology registration as a packer, and the factory needs pollution board consent and a fire NOC where the state requires it. BIS certification under IS 1011 is voluntary.
What is the GST rate on biscuits?
Biscuits attract 5% GST from 22 September 2025, after the GST Council cut the rate from 18%. The lower rate affects the price you quote to distributors and the tax shown in the projections. Confirm the rate for your exact product and HSN code with your tax adviser before you finalise the report.
Biscuit ka business kaise shuru kare?
Start by choosing the biscuit types and the daily output you can sell through distributors or contract buyers. Then fix the site, select the forming line and oven, and get your FSSAI licence, Udyam and pollution consent. A project report with costs, projections and DSCR is what the bank needs before it funds the machinery and working capital.
Can I get a PMEGP loan for a biscuit unit?
Yes, if the project cost is within the PMEGP limit of ₹50 lakh for manufacturing. That usually means a small unit with a batch oven or a short line. Larger plants, like the one in our sample, take an MSME term loan instead. Micro food units may also apply under PMFME, which offers a capital subsidy of 35% up to ₹10 lakh.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report. Its figures are representative and not based on a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, location and loan scheme.
Sources and references
- Food product standards, chapter 2.4: cereals and cereal products (regulation 2.4.15, biscuit)Food Safety and Standards Authority of India, checked Oct 2026
- FSSAI regulatory guide for biscuits under PMFMENIFTEM, Ministry of Food Processing Industries, checked Oct 2026
- IS 1011:2002 Biscuits, specificationBureau of Indian Standards, checked Oct 2026
- Revised green category of industries list 2020Puducherry Pollution Control Committee (CPCB list), checked Oct 2026
- Registration of packers under Rule 27, Legal Metrology (Packaged Commodities) Rules, 2011Department of Consumer Affairs, Government of India, checked Oct 2026
- GST Council approves rate cuts under a two-tier systemIndBiz, Government of India, checked Oct 2026
- Prime Minister's Employment Generation ProgrammeBank of India, checked Oct 2026
- PM Formalisation of Micro Food Processing Enterprises (PMFME)District administration, Khordha, Government of Odisha, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.