How do I start a food processing unit in India?
If you want to start Most Profitable Food Processing Projects and Agro Based Business Ideas for Start-up.
The food processing industry has been slated for accelerated growth. It is projected to be a futuristic industry and it is anticipated that, over the years, it will emerge as a leading player in the global markets. As a result, the industry is seen to be witnessing feverish activity.
Before starting a food processing unit you must have to fulfil all these legal requirement and certification.
- Private Limited Company
- Limited liabilities partnership
- One Person company
- Limited Company
- For brand building you have to register your brand under Indian Intellectual property right. Apply for Brand Trademark.
- If your process or product is innovative then you have to apply for product and process patent.
- Apply for FSSAI for to take a FSSAI License: FSSAI license is necessaries for any kind of food item Manufacture, production, process & market.
- If necessaries take water testing and organic testing certificate.
- You must have to verify your nutrition chart which is mention on products level.
- For brand building you can also take ISO 9001- 2015 quality management certificate.
- Application of project to take a benefit of central & state policies/ subsidies scheme prepare a project report.
Each Detailed Project Report Contains
Project Introduction, Brief History of the Product, Properties, BIS (Bureau of Indian Standard) Specifications & Requirements, Uses & Applications.
Formulae Detailed Process of Manufacture, Flow Sheet Diagram.
Present Market Position, Expected Future Demand, Statistics of Imports & Exports, Export Prospect, Names and Addresses of Existing Units (Present Manufactures).
Requirement of Staff & Labour, Personnel Management, Skilled & Unskilled Labour.
|Plant & Machinery:
List of Plant & Machineries, Miscellaneous Items and Accessories, Instruments, Laboratory Equipment’s and Accessories, Plant Location, Electrification, Electric Load and Water, Maintenance, Suppliers / Manufacturers of Plant and Machineries.
|Land & Building:
Requirement of Land Area, Rates of the Land, Built up Area, Construction Schedule, Plant Layout.
List of Raw Materials, Properties of Raw Materials, Availability of Raw Materials, Required Quality of Raw Materials, Cost / Rates of Raw Materials.
Cost of Raw Materials, Cost of Land & Building, Cost of Plant & Machineries, Fixed Capital Investment, Working Capital, Project Cost, Capital Formation, Cost of Production, Profitability Analysis, Break Even Point, Cash Flow Statement for 5 to 10 Years, Depreciation Chart,Conclusion, Projected Balance Sheet, Land Man Ratio.
First you have to select the field that you are gonna work upon, some steps might help you.
Step 1: Write a Business Plan (your idea)
Step 2: Get Business Assistance and Training
Step 3: Choose a Business Location
Step 4: Finance Your Business
Step 5: Determine the Legal Structure of Your Business
Step 6: Register a Business Name
Step 7: Register for State and Local Taxes
Step 8: Obtain Business Licenses and Permits
Step 9: Understand Employer Responsibilities
Step 10: Find Local Assistance
These are some ideas that might help you.
Bakery is one of the most profitable food processing business opportunity one can initiate by having own or rented space. Selecting the right product and proper marketing strategy are the major deciding factor in getting success in bakery business. According to the demand and financial aspect you will need to choose the specific products for your bakery business.
- Banana Wafer Making
Banana wafers are under-ripe bananas that are cut into slice dipped in syrup solution, dried under the sun or by oven, fried and eaten as snack food or dessert. These can be sold both in the local and export markets. You can initiate this business as small scale basis.
- Biscuit Making
Biscuit making business is very lucrative and can be initiated as small scale basis. Biscuit making is a conventional activity and an entrepreneur can initiate this business with low startup capital also. Despite the advent of modern, large capacity and automatic biscuit making plants, large section of people still prefer fresh biscuits from local bakery as they are cheap and offer many varieties.
- Bread Production
Quality bread provides fiber and carbohydrates in a convenient, low fat form that is portable and delicious. Good bread never goes out of style. Bread production industry has several diversification opportunity. Fresh quality breads are always in demand for both urban and sub urban areas. Bread production process is also not complex.
- Cashew Nut Processing
The manufacturing activities that are involve in cashew nut processing are cell cooking, cutting, cashew karnel drying, peeling, grading and packing. Cashew nut processing can be initiated as small scale and also as an export oriented plant. Simple machinery are required.
- Cheesecake Making
Ingredients required for cheesecakes production are cheese, sugar, strawberries, wheat flour, egg, maize, vegetable oil, starch, salt, preservative, colour and essence. Cheesecake is also very versatile. It works well with a wide variety of flavors ranging from lemon and chocolate to pumpkin. Cheesecake making business can be started as small scale basis.
- Chocolate Making
The production process of chocolate may vary according to the different quality of chocolate. Also according to the availability of raw material you can decide the taste and ingredients for chocolate production. Chocolate making is one of the most profitable food processing business.
- Coconut Milk Powder Production
Coconut milk powder has a good market potential not only in India but also in various other countries. Coconut milk powder has advantage of long shelf life, less storage places required and lower cost of bulk packing. Coconut milk powder is one of the most trending food processing business opportunity for new entrepreneurs.
- Coconut Oil Manufacturing
Coconut oil is used as an important cooking medium. Apart from this coconut oil has various industry applications. It is used in the manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, hair oils, cosmetics, etc. Location is one of the most important factor in starting coconut oil manufacturing. It should be nearby the area where from raw materials can be procured easily.
- Condensed Milk Production
Sweetens condensed milk has an good market opportunity both in domestic and export sector. The only main raw material is good quality milk. condensed milk production is one of the most profitable food processing business any individual can initiate with substantial capital investment.
- Custard Powder Production
In starting custard powder production, required raw materials are corn flour, arrow root starch, food colours and essence. Easy availability of raw materials made this business lucrative and profitable. A small scale unit can also be established with some simple machinery. Custard powder is one of the popular food considered as desert.
- Dalia Production
The increasing demand for nutritional and ready to eat food, has increased the market potential of dalia. Dalia manufacturing business can be initiated as small scale basis with simple machinery. Production process is simple. Dalia production does not imply major licensing issues.
- Dal Milling
Dal milling is actually processing of different pulses. According the availability of raw material you can select different various products. Commonly two types of conventional processing methods are used. Such as wet milling and dry milling. Dal milling is capital intensive and energy sapping in nature.
- Energy Drink Production
Energy drink is a very popular options for now a days to relief from stress. Energy drink production is one of the most profitable and trending food processing business. Initiating a energy drink manufacturing business is cost intensive and requires a strong product promotion strategy.
- Flour Production
Flour is produced by milling food grains. different varieties types of flour is used to prepare different foods. These are Wheat flour, brown flour, whole wheat flour, wholemeal flour etc. Production process is simple. This business can be initiated as small scale basis with simple machinery.
- French Fry Making
Good quality potatoes are generally used to make french fry. French fries are becoming very popular in Indian market. Apart from domestic demand the product has an export opportunity also. French fry making business can be initiated as small scale basis. Need to pay attention about packaging.
- Fruit Juice production
Fruit juice is one of the ready to serve item. Another popular product is squash. These are very popular throughout the year specially in summer. Fruit juice production business can be initiated as small scale basis. Product should be selected according to the availability of raw materials.
- Ginger Garlic Paste Processing
Ginger and Garlic Paste is mainly used as a condiment in various food preparation and also serves as a carminative and gastric stimulant in many medicine preparations. As instant mixes and spices are becoming more popular the demand for ginger garlic paste is also increasing. Production process is simple and the product has an immense market opportunity for export also.
- Ginger Oil Production
The main application of ginger oil are confectionery beverages and baked products. India is the larges producer of ginger. Ginger oil production is one of the most profitable food processing business that can be started as small scale basis also.
- Grape Wine Making
Grape wine making is actually fermenting the grape juice. The major raw material required for the processing and making of grape wine is grapes. Grape wine making is capital intensive and it requires proper operational and marketing strategy.
- Groundnut Oil Processing
Ground nut oil processing is one of the most profitable food processing business considering the required capital investment.The oil that is obtained from groundnuts / peanuts is very healthy and suitable for best human consumption. The manufacturing unit can be established as small scale basis.
- Hing Making | Compound Asafoetidia
Hing is used in India in culinary preparations for flavouring purpose. Pure asafoetida is generally not preferred for use in view of the high concentration. It is, therefore, sold in compounded form. Hing has a good market potential not only in domestic market but also in export market. The main raw material is generally imported from Afghanistan or Iran.
- Honey Processing
Honey processing is actually removing wax and other foreign unwanted particles from honey. You can establish the processing unit by two ways. Either by manual system or by electrically driven. Production process is simple and can be initiated as small scale and home based basis.
- Ice Block Manufacturing
Ice block making business can be established as small scale basis. Ice blocks are essential for transportation and preservation of fishes. According to the local demand of ice blocks, unit should be establish as far as production output is concerned.
- Ice Cream Cone Making
Ice cream cone making business can be initiated as home based and small scale basis. Ice cream cones of many varieties flavours and in different forms are served round the year and demand is going up year after year. The most popular mode of serving is in cones as it is neat & clean, easy to store and there is no disposal need. With continuous increase in sale of ice-creams, demand for cones is increasing.
- Ice Cream Making
Ice cram making business can be initiated as small scale basis with low startup capital investment. Ice cream making is a wonderful small business idea that any individual can explore to make handsome money out of it. Ice cream is a frozen blend of a sweetened cream mixture and air, with added flavorings. A wide variety of ingredients are allowed in ice cream, but the minimum amounts of milk fat, milk solids (protein + lactose + minerals), and air should be maintained in ice cream making.
- Iodized Salt Production
Iodised salt is a white crystalline powder salt fortified by Iodine. Iodine deficiency disorder can be easily avoided by consuming sufficient amount of salt fortified with Iodine. Iodized Salt consumption is directly related with population growth. Iodized salt production can be started as small scale basis also.
- Jam Jelly Making
Jam jelly making business is profitable and can be initiated as small scale with low capital investment. With proper planning and strategy, jam jelly making business can be initiated home based also. Different allowances and grants from Government sector is also available. Most kinds of fruit and some vegetables are used to make a wide variety of jam and jelly. Fruit jam contains rich fruit pulp and available in mango, apple, mixed fruit, pineapple and orange flavors. Jelly is a clear, bright mixture made from fruit juice, sugar and sometimes pectin. Jelly and jam is used as bread spread and as a filling for some cakes and cookies.
- Lemonade Making
Lemonade is actually a lemon flavoured very popular soft drink.The principal raw materials required are sugar, citric acid, flavor & essence, food color, and sodium benzoate. Lemonade making is capital and management intensive business.
- Fruit Bar Making
Mango, pineapple fruit bars are very popular. Unit should be initiated according to the availability of raw materials. Fruit bar making process is simple. By installing simple machinery small scale unit can be initiated as home based also.
- Meat Processing
Meat processing technology comprises the steps and procedures in the manufacture of processed meat products. All processed meat products have been in one way or another physically and/or chemically treated. Meat processing is capital intensive. Proper distribution and marketing strategy is required before initiating.
Microbreweries produce small amount of craft beer than large-scale corporate breweries and are independently owned. The market of microbreweries is immensely developing. Different licenses and permission is required in initiating microbrewery business.
- Noodles Making
Generally two types of noodles are popular. One is normal and other is instant. The process is quite simple and requires not much skilled labour. The boom in the food service sector including fast food chain, has widened the demand potential for Noodles.
- Packaged Drinking Water Production
Increasing awareness of health and scarcity of getting pure drinking water have made an immense market demand for packaged drinking water. Now-a-days people prefer to have packaged drinking water not only at outside but also in house. In initiating packaged drinking water business, it is important to check the PH balance of water where you want to establish the unit.
- Palm Oil Processing
The main raw material is palm fruits. Palm oil is used as an edible oil. Apart from that there is a demand for commercial industry use. Palm oil processing is profitable and capital intensive. All type palm oil processing units differ in the level of mechanization of each unit operation and the interconnecting materials transfer mechanisms.
- Papad Making
Papad making business can be initiated as small scale and home based basis also. Papad making is one of the most profitable food processing business considering the low startup capital investment. Papad is a thin wafer like product and served as fried or roasted.
- Pasta Making
The artificial drying process allows pasta to be produced at industrial level and therefore to be distributed. The drying process is the final main step of industrial pasta production, and it is fundamental to greatly prolong shelf life of the product. Manufacturing process is not complex and the demand is increasing.
- Pickles Making
Pickles are most popular item. Besides domestic market pickles have an export potential also. Various different quality pickles can be produced. The product should be selected according to the availability of the raw materials. Simple machinery and equipment are required and production process is simple.
- Potato Chips Making
Sliced, thin and fried potato chips are very popular ready-to-eat snacks item. Potato is one of the easy available vegetable also. Potato chips making process is simple and involved simple machinery. Potato chips making business can be started as small scale basis also. With ongoing growth of the population and rising urbanization, particularly among young people, packaged food such as packaged potato chips have very bright growth prospects.
- Potato Powder Making
Potato powder is increasingly being used in a variety of food preparations like snack foods, soups, curries and other dishes as a thickening agent. Potato powder manufacturing is capital intensive. FPO and Pollution Control Board permission is required.
- Rice Bran oil Production
The Commerce Ministry recently allowed bulk exports of rice bran oil and removed quantitative restrictions on out-bound shipments of organic edible oils. Rice bran oil is considered as a premium edible oil with limited consumption in India. Rice bran oil production is capital intensive. Unit must be focused on export oriented to get much better profitability.
- Rice Mill
India is the second largest producer of paddy in the world. Rice being the staple food of majority population. The mini rice mill consists of a paddy cleaner, sheller, separator and a polisher. Mini rice mill is one of the most profitable food processing business.
- Soyachunk Processing
Soyachunk processing can be initiated as small scale basis. The major raw materials are soybean meal and peanut meal. Soyachunk production process involves milling, mixing, extruding and cutting. This is one of the most profitable food processing business one can start with moderate capital investment.
- Soy Sauce Production
The major raw materials, that needed for soy sauce production are soybeans, wheat, and salt. Different types of manufacturing processes are obtained to produce different types of soy sauce. Soy sauce production can be started as small scale basis also.
- Spice Powder Making
Spice grinding and packaging is one of the most profitable food processing business to be initiated as small and medium scale. Spice is an essential item and is considered as taste maker. Apart from individual spice powder like chilly, cumin, turmeric; special quality mixed spice powder processing is more profitable. Some of the most popular items are meat masala, curry powder, chat masala etc.
- Sugar Candy Manufacturing
Sugar candy is generally considered as hard boiled sugar confectionery. There are so many popular flavours for sugar candy like orange, pineapple, mango, mint, strawberry etc. Sugar candy manufacturing is one of the most popular food processing business idea.
- Sunflower Oil Processing
For sunflower oil processing the main raw material is sunflower seed. Refine sunflower oil goes through the long way of purification which consists of the following stages: mechanical cleaning, hydration, neutralization, bleaching, freezing, deodorization and nitriding. Sunflower oil processing capital intensive and profitable food processing business.
- Tomato Processing
Tomato is a wide available item and processed tomato products are also very popular. Most popular products are tomato sauce, puree, juice, ketchup etc. In initiating tomato processing you can also produce tomato pulp for other small scale industries. Production process is not complex. Simple machinery and equipment are required.
- Tutti Frutti Making
Tutti frutti is concentrated processed food product produced from raw papaya with attractive colour, sugar and preservative. It is also used by several other food processing industries like cake, bakery bread etc. The product has also a very good retail opportunity.
- Vinegar Manufacturing
Vinegar is considered as a good preservative containing 5% acetic acid. Compliances under the FPO and PFA Act are mandatory for vinegar manufacturing. Commercial scale vinegar manufacturing requires sound technical knowledge