From the Desk of Narayana Peesapaty
Business Opportunities with Bakeys
Hello. Greetings from Bakeys.
On this World Environment Day, where the theme is to beat plastic, I am happy to share with you that we can now avoid plastic in form of utensils.
We have developed the state-of-the-art technology to mass produce edible cutlery and crockery.
The packaging is evolved to ensure it is plastic-free.
The awareness about edible cutlery has been created and we are receiving several enquiries and orders.
We have started with spoons and developed the designs for soup spoons, forks, dessert spoons and yoghurt spoons.
Now I want to fast-track the distribution of these products and replace plastic disposables as much as is possible. One way to do it is, I increase the capacity and keep selling. This would mean growth, but not to the extent I want.
The other way is to spread the technology all over the world. This would help our products to be available at sufficient quantities.By spreading the technology, the logistics cost, import duties and marketing overheads, which push the prices up, will be reduced. Edible cutlery will become affordable and that would trigger better off-take.
This is what I wish for this world. No more plastic in our food!
Hence, I have decided to sell the machines. When edible cutlery is produced locally and sold, the marketing overheads will diminish significantly.
I did not quit my job after about a couple of decades of research career just to earn more money from business. I quit, because I wanted to contribute constructively to make this world a better place to live. I would therefore like to extend my invitation to you to join us in this revolution we have created.
I am looking for investors who can set up production facility locally and sell locally.We will give the technical knowhow and the machinery to produce. Please read the below attached terms and conditions on how join this revolution.
I request you to write to firstname.lastname@example.org. You may also call +91 9393762080. I would request you to please call only during the office working hours of 9:00AM to 6:00 PM, Indian Standard Time (IST)
I look forward to welcome you into the Bakeys Family of Change Makers.
Information for those who want to produce Edible Cutlery
1.We are selling our state-of-the-art automatic edible cutlery manufacturing machines. We would be selling only 10 machines per month. These machines will be supplied on first-come-first served basis. If the number of bookings cross the 10 machines limit, they will be slotted for delivery in the next month as per the chronological sequence.
2. Cost of machine: In Indian market, it costs Rs.15 lakhs. In overseas market, it is USD 25,000. Overseas customers should pay in US Dollars only. This price includes one-time payment of royalty, perpetual license to produce edible cutlery with our technology, permission to produce edible cutlery on your own brand. This also includes cost of the intensive training we would be offering in operations, maintenance and production of edible cutlery.
3. GST applicable is 18%, which is extra
4. All payments should be made directly by Bank transfer only. We will not accept any other mode of payment. Please note that payment once made will not be returned under any circumstances.
25% should be paid as booking amount
50% should be paid within 6 months.
Upon payment of this amount, a slot will be scheduled for your training. After satisfactory completion of the training, you will be intimated to pay the balance.
Balance 25% should be paid upon intimation and the machine will be dispatched. The cost of shipping, packaging and other logistics cost will be your own.
5. We have decided to exit from the production of edible cutlery and instead facilitate others to take up this activity. We would be focusing on research and development of other products such as straws, chopsticks, stirrers, which also would be offered to you to take up once they are ready.
6. You should not use the brand name “Bakeys” or the logo of our company. The copyrights on this rest with us. However, if you feel, the name of Bakeys will help you sell, you can mention on the label, “With technology provided by Bakeys Foods Pvt Ltd”. The Bakeys logo, if used on the label or any other marking should be accompanied with your own logo and the size of Bakeys logo should not be more than 15% the size of your own logo.
7. Intensive training will be given about how to operate and maintain the machine and how to produce edible cutlery, including how to knead the dough and precautions to take while production and packaging. You will also be made to dismantle the machine and reassemble it so that you will be able to understand the care and maintenance of the machine yourself. This training will also include information on market opportunities.
8. Training will be provided to batches of 10 investors who have booked the machine STRICTLY on first-come-first-served. Training will be imparted at our facility in Hyderabad, India. You will have to make your own travel and stay arrangements. The duration of the training will be for about a week.
9. Following are the details of machine
Dimensions: 40 ft long 3 ft wide and 5ft height,
Moulds made of food grade Stainless Steel integrated with the machine
.Ceramic wool (50 mm thick) insulation encased between Stainless Steel interior and mild steel exterior. The exterior is spray painted in blue and white, fixed to a mild steel frame forming the body.
All components that come in contact with the dough/product are made of food grade stainless steel.
The electrical load of the machine is about 35 HP.
The total electrical load of the plant will be about 65 HP (which includes other machines like the dough kneading machine and packaging machine in addition to our machine load)
This machine has a capacity to produce 50,000 pieces per day of 24 hours. It should be run 24 hours on 3-shift working to optimize on energy consumption.
There are moulds of 5 different shapes integrated into the machine. These are spoons, forks, soup spoons, dessert spoons and yoghurt spoons (small spoons). There are 102 frames. Each frame is fitted with moulds with one shape per frame. Depending on your market expectation, you can suggest a mix of the numbers of mould-frames. If you feel, forks will sell more, ask for more frames with fork moulds. Likewise, if you feel, yoghurt spoons would sell more, ask for these to be more. Depending on what you want, we will fix the mould-frames as per your choice. We will train you on how to change the mould- frames as per market demand.
Carbon emission: Zero discharge, non-polluting
Maintenance: Training will be given for the same, in case of very heavy serious issues and if our engineer needs to visit your facility, the cost of travel, accommodation and per diem will have to be borne by you. However, before dispatching our engineers, we will try to resolve the issue using video call or similar technology. The video calling will have to abide by the Indian standard Time (IST) and will be taken up during the working hours of 9:00 AM to 6:30 PM IST. Site visit by our engineer will be the last resort since their visit will be charged to you – travel, visa expenses (where applicable), stay and per diem in addition to the charges levied by the company.
10. The picture of the machine is given below. The video of the machine working is also given here.
To watch the machine is production, please click here:
11. The infrastructure required to produce edible cutlery:
Factory area of minimum 50ft X 30ft, with 3 phase electricity supply with connected load of 65 HP, 24 hour power and water. This machine needs to run 24 hours to get best energy efficiency. Thus power back up arrangement are essential in case of power cuts.
12. Other additional machines required: (1) Dough kneading machine which can be sourced locally from any bakery machinery manufacturers and (2) packaging machine depending on the type packaging material you want to use.
13. What if we want our brand name imprinted on the cutlery
It will cost you extra. Since, the overall shape of the product will remain the same, irrespective of the brand name engraved on the product; we will advise you to avoid this additional cost. This additional cost is Rs 6.00 lakhs or USD 10,000. The die shall however remain the property of the company, although you may have paid for it. You cannot claim any ownership right over it.
14. Can we get custom made moulds – like if we want a specially designed shape?
We will not encourage that. However, if you strongly feel about it, subject to technical feasibility, we will make it for you at an extra cost of Rs 6 Lakhs or USD 10,000. The die shall remain the property of the company and you cannot claim ownership on it even though you paid for it.
15. Do you give recipes? If so what types of recipes
Recipe will be given at the time of training. We will encourage you to develop your own recipe and would help you achieve it.
16. How should the product be packed
Since this is an environment friendly product, we advise plastic free packaging. Also care has to be taken while packing at all stages since the product is fragile. We would advise minimal packaging since it is the packaging waste that is harming the environment.
17. How many shifts can be run per day
The plant should be run for 24 hours with 3 shifts of 8 hour each for optimal energy utilization. Production per shift would be 15,000 to 18,000 pieces
18. What is the manpower required
Three workers per shift of any gender, provided packaging is automatic. If you pack them manually, the labour requirement will be higher.
19. Will the raw material be supplied by you or can we purchase from other sources.
We will not supply raw materials. You need to source it from the local market or directly from the farmers.
20. If the full payment is made can my order come on priority basis?
Yes. However, the mandatory 8 months wait will be necessary as fabrication and pre testing by us needs this much of time.
21. How will the machine be dispatched?
It will be dismantled and transported to your facility and will be assembled there. We will train you to dismantle and reassemble, so that you can do that yourself at your location. We will also provide you a CD and instruction manual giving details of all stages of assembling the machine.
The cost of shipping will be borne by the customer. You can employ your own shipper. If needed, we can suggest local shippers but the rate negotiations and terms and conditions have to be taken by the customer himself/herself.
22. When will the machine be dispatched?
The machine will take 8 months for processing, fabrication, testing, training and eventually dispatching from the date of placing the order. We have scheduled the training program one month before the dispatch of the machine because, you can go back and show all the samples to your prospective customers, inform them that in one month, you will start the production. This however is subject to the first-come-first-served condition of entertaining only 10 orders per month.
23. Will we receive the update when our machine is ready for despatch or should we follow up
Yes, we will keep you updated.
24. Will the cost of spoons be decided by you or can we decide it?
We will only suggest appropriate pricing, however it will be you, who should decide
25. Can you share the economics of this business?
A cost-estimation per day spreadsheet is given below. Please note, these are costs as per Indian market. I have made overestimations in the costs just to see how profitable is this project, even under very pessimistic conditions.
Please note, these estimates are only indicative. You may have to tweak them as per the costs prevailing in your markets.
All figures are in Indian Rupees.
These calculations are based on activities for ONE DAY
|CALCULATIONS ARE PER DAY BASIS|
|Daily production (number of pieces)||50000|
|Raw materials needed (Kg) (@ 15 Grams per piece)||750|
|Moisture loss, wastages, etc @ 30%||225|
|Raw material total (Kg)||975|
|Cost of raw materials @ Rs 40/Kg||39000|
|15 workers @ 3 per shift + 6 workers for packaging @ Rs 15,000 per month assuming 20 working days per month||11250|
|Packaging material @ Rs 25 per pack||12500|
|Electricity 45 Kw per hour @ Rs 10 per unit||10800|
|Rent (@ Rs 15,000 per month)||500|
|Unforeseen expenses @ 30% of above||22215|
|Amortization of cost of machinery||2085|
|(Cost of machine is recovered in 2 years)|
|Total expenditure per day||98350|
|Returns from sales (@Rs 2.25 per piece)||112500|
|Gross Profit per day||14150|
|Gross Monthly profits (20 working days)||283000|
|Gross Annual profits||3396000|
|(in Rupees lakhs)||33.96|
|We have taken the costs on the higher side to look at profitability under pessimistic scenario.|
|Raw materials is taken @ Rs 40 per Kg. This is on higher side|
|The weight of the raw material needed is taken as per the heaviest piece (soup spoons)|
|The extent of moisture loss and wastage of raw materials is assumed at 30%, which is way too high.|
|Power charges are taken at Rs 10.00, which also is on the higher side.|
|Contingency expenses (unforeseen expenses) is assumed at 30%, which also is on higher side.|
Given the above profitability, this project breaks even on the first year itself
26. Is there a customer support / technical support where we can call if any problems arise
We will provide you with a technical support number.
For any further details please contact +91 9393762080 or write to email@example.com.
Hope to see you as the agent of change and make this world a better place to live.
Wall Street Journal