food processing business plan in india

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List of 57 Profitable Food Processing Business Ideas

Do you want to start a business in the food processing industry? Are you searching for profitable food processing business ideas? If yes, find here a list of the best and easy-to-start business ideas in the food and agro-processing segment.

In India, the food sector has high growth and profit potential. Also, you can find a lot of opportunities here. The Indian food and grocery market is the world’s sixth-largest in terms of volume. And the food processing industry accounts for 32% of the country’s total food market.

Initiating a food business is easy to start. And as the population density is high in our country, you will find always a market for your product. Also, financial institutions including banks provide different types of loans and subsidies to food entrepreneurs.

List of 57 Food Processing Business Ideas

Bakery is one of the most profitable food processing business opportunities in India. 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 the bakery business. According to the demand and financial aspects you will need to choose the specific products for your bakery business. Read More…

2. Banana Wafer Making

Banana wafers are under-ripe bananas that are cut into slices dipped in syrup solution, dried under the sun or in the oven, fried, and eaten as a snack food or dessert. These can be sold both in the local and export markets. You can initiate this business on a small-scale basis. Read More…

3. Beaten Rice Manufacturing

Beaten rice manufacturing is comparatively an easy business to start in small towns  or village areas. It needs small capital investment towards infrastructure and machinery. The raw material is also available locally

4. Biscuit Making

The Biscuit-making business is very lucrative. You can initiate the business on a 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, a large section of people still prefers fresh biscuits from the local bakery as they are cheap and offer many varieties.

5. 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. The bread production industry has several diversified opportunities. Fresh quality bread is always in demand in both urban and suburban areas. The bread production process is also not complex.

6. Cashew Nut Processing

The manufacturing activities involve in cashew nut processing are cell cooking, cutting, cashew kernel drying, peeling, grading, and packing. Cashew nut processing can be initiated on a small scale and also as an export-oriented plant. Simple machinery is required. Read More…

7. Cheesecake Making

Ingredients required for cheesecake production are cheese, sugar, strawberries, wheat flour, egg, maize, vegetable oil, starch, salt, preservatives, color, 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 on a small-scale basis.

8. Chocolate Making

The production process of chocolate may vary according to the different qualities 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 businesses.

9. Coconut Milk Powder Production

Coconut milk powder has the good market potential not only in India but also in various other countries. Actually, coconut milk powder has the advantage of long shelf life, fewer storage places required, and lower cost of bulk packing. Coconut milk powder is one of the most trending food processing business opportunities for new entrepreneurs.

10. Coconut Oil Manufacturing

Coconut oil is used as an important cooking medium. Apart from this coconut oil has various industrial 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 factors in starting coconut oil manufacturing.

India is the highest producer of coconuts in the world. The total cultivated area is over 1.94 million hectares. Around 90% of the coconut growing area is situated in the four southern states of India, with Kerala occupying about 50% of the coconut cultivated area in India. The location of your manufacturing unit should be nearby the area where raw materials can be procured easily.

11. Condensed Milk Production

Sweetens condensed milk has a good market opportunity both in the domestic and export sectors. The only main raw material is good-quality milk. condensed milk production is one of the most profitable food processing businesses any individual can initiate with substantial capital investment.

12. Custard Powder Production

In starting custard powder production, the required raw materials are corn flour, arrowroot starch, food colors, and essence. The easy availability of raw materials made this business lucrative and profitable. A small-scale unit can also be established with some simple machinery.

13. 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 on a small-scale basis with simple machinery. The production process is simple. Dalia production does not imply major licensing issues.

14. Dal Milling

Dal milling is actually the processing of different pulses. According to the availability of raw materials, 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. Read More…

15. Energy Drink Production

Energy drink is a very popular option nowadays to relieve stress. Currently, energy drink production is one of the most profitable and trending food processing businesses. Initiating an energy drink manufacturing business is cost-intensive and requires a strong product promotion strategy.

16. Flour Production

Flour is produced by milling food grains. different varieties types of flour are used to prepare different foods. These are Wheat flour, brown flour, whole wheat flour, wholemeal flour, etc. The production process is simple. This business can be initiated on a small-scale basis with simple machinery.

17. French Fry Making

Good quality potatoes are generally used to make french fries. French fries are becoming very popular in the Indian market. Apart from the domestic demand, the product has an export opportunity also. French fry-making business can be initiated on a small-scale basis.

18. Fruit Juice production

Fruit juice is one of the ready-to-serve items. Another popular product is squash. These are very popular throughout the year, especially in summer. The fruit juice production business can be initiated on a small-scale basis. The product should be selected according to the availability of raw materials.

19. 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 medicinal preparations. As instant mixes and spices are becoming more popular the demand for ginger garlic paste is also increasing. The production process is simple and the product has an immense market opportunity for export also. Read More…

20. Ginger Oil Production

The main application of ginger oil is in confectionery beverages and baked products. India is the largest producer of ginger. Ginger oil production is one of the most profitable food processing businesses that can be started on a small-scale basis also.

21. 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.

22. Groundnut Oil Processing

Groundnut oil processing is one of the most profitable food processing businesses considering the required capital investment. The oil that is obtained from groundnuts/peanuts is very healthy and suitable for the best human consumption. The manufacturing unit can be established on a small-scale basis. Read More…

23. Hing Making

Hing is used in India in culinary preparations for flavoring purposes. Pure asafoetida is generally not preferred for use in view of the high concentration. It is, therefore, sold in compounded form. Hing has good market potential not only in the domestic market but also in the export market. The main raw material is generally imported from Afghanistan or Iran.

24. Honey Processing

Honey processing is actually removing wax and other foreign unwanted particles from honey. You can establish the processing unit in two ways. Either by the manual system or by electrically driven. The production process is simple. Additionally, you can initiate the business on a small-scale and home-based basis.

25. Ice Block Manufacturing

Ice block-making businesses can be established on a small-scale basis. Actually, ice blocks are essential for the transportation and preservation of fish. According to the local demand for ice blocks, the unit should be established as far as production output is concerned.

26. Ice Cream Cone Making

Any individual can initiate the ice cream cone-making business on a home-based and small-scale basis. Ice cream cones of many varieties of flavors and in different forms are served around 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 needed. With the continuous increase in the sale of ice creams, demand for cones is increasing. Read More…

27. Ice Cream Making

You can start an ice cream-making business on a 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.

Basically, 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. Read More…

28. Iodized Salt Production

Iodized salt is a white crystalline powder salt fortified by Iodine. Iodine deficiency disorder can be easily avoided by consuming a sufficient amount of salt fortified with Iodine. Iodized Salt consumption is directly related to population growth. You can start an iodized salt production business on a small-scale basis also. Read More…

29. Jackfruit Processing

The primary economic product of jackfruits is the fruit. People consume it both when immature and when they mature. However, you can’t keep the sweet pulp of the fruit for a long time because of its highly perishable nature. Hence, every year there a huge post-harvest loss occurs during the peak time. Read More…

30. Jam Jelly Making

Jam jelly-making business is profitable and can be initiated on a small scale with low capital investment. With proper planning and strategy, the jam jelly-making business can be initiated home-based also. Different allowances and grants from the Government sector are 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 is 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 are used as the bread spread and as a filling for some cakes and cookies.

31. Lemonade Making

Lemonade is actually a lemon-flavored very popular soft drink. You need the principal raw materials like sugar, citric acid, flavor & essence, food color, and sodium benzoate. Lemonade-making is a capital and management-intensive business.

32. Fruit Bar Making

Mango and pineapple fruit bars are very popular. You must initiate the unit according to the availability of raw materials. The fruit bar-making process is simple. You can initiate a small-scale unit by installing simple machinery as a home-based also.

33. Fruit Juice Production

Starting a fruit juice production company is a profitable and lucrative venture. However, the business demands careful planning and substantial capital investment. Fresh fruit juice is a popular item in the beverage industry compared to other packaged drinks. Read More…

34. 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 physically and/or chemically treated. Meat processing is capital intensive. However, you need a proper distribution and marketing strategy before initiating.

35. Microbrewery

Microbreweries produce a small amount of craft beer than large-scale corporate breweries and are independently owned. The market of microbreweries is immensely developing. However, you need different licenses and permissions in initiating the microbrewery business.

Learn More:   How to Start a Microbrewery Business

36. Noodles Making

Generally, two types of noodles are popular. One is normal and the other is instant. The process is quite simple and requires not much skilled labor. The boom in the food service sector including the fast-food chain has widened the demand potential for Noodles. Read More…

37. Packaged Drinking Water Production

Increasing awareness of health and the scarcity of getting pure drinking water have made an immense market demand for packaged drinking water. Nowadays people prefer to have packaged drinking water not only outside but also in-house. In initiating packaged drinking water business, it is important to check the PH balance of the water where you want to establish the unit.

38. Palm Oil Processing

The main raw material is palm fruits. Palm oil is used as edible oil. Apart from that, there is a demand for commercial industrial use. Palm oil processing is profitable and capital-intensive. All types of palm oil processing units differ in the level of mechanization of each unit operation and the interconnecting materials transfer mechanisms.

39. Paneer & Cheese Production

Basically, cheese and paneer are value-added dairy items. Basically, paneer is fresh cheese. It is also known as cottage cheese. Actually, paneer is an unaged, acid-set, non-melting farmer cheese or curd cheese. However, packaged paneer ensures good quality and longer shelf life than loose paneer. Read More…

40. Papad Making

Any individual can initiate the papad-making business on a small-scale and home-based basis also. Papad making is one of the most profitable food processing businesses considering the low startup capital investment. Papad is a thin wafer-like product served as fried or roasted. Read More…

41. Pasta Making

The artificial drying process allows the pasta to be produced at an 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 the shelf life of the product. The manufacturing process is not complex and the demand is increasing.

42. Pickles Making

Pickles are the most popular items in Indian recipes. Besides, the domestic market pickles have an export potential also. Actually, you can produce different types of quality pickles. However, you must select the product according to the availability of the raw materials. The production process is simple. And you need simple machinery and equipment.

43. Potato Chips Making

Sliced, thin, and fried potato chips are very popular ready-to-eat snacks item. Potato is one of the easily available vegetables also. The potato chips manufacturing process is simple and involves simple machinery. Additionally, you can initiate the potato chip-making business on a small-scale basis also. With the ongoing growth of the population and rising urbanization, particularly among young people, packaged food such as packaged potato chips have very bright growth prospects. Read More…

44. 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. However, potato powder manufacturing is capital-intensive. In this business, you will need to obtain FPO and Pollution Control Board permission to run the unit.

45. Rice Bran oil Production

The Commerce Ministry recently allowed bulk exports of rice bran oil and removed quantitative restrictions on outbound shipments of organic edible oils. Rice bran oil is a premium edible oil with limited consumption in India. Rice bran oil production is capital intensive. However, you must establish an export-oriented unit to get much better profitability.

46. Rice Mill

India is the second-largest producer of paddy in the world. Rice is the staple food of the majority population. The mini rice mill consists of a paddy cleaner, sheller, separator, and polisher. Mini rice mill is one of the most profitable food processing businesses.

47. Scented Supari Making

Basically, supari is a mouth freshener. People in all age groups chew supari on a regular basis. However, raw supari is not a consumable item. It requires proper processing and packaging to make it human consumable. Read More…

48. Soya chunks Processing

First of all, any individual can initiate the soya chunks processing on a small-scale basis. The major raw materials are soybean meals and peanut meals.  The Soya chunks production process involves milling, mixing, extruding, and cutting. This is one of the most profitable food processing businesses one can start with moderate capital investment.

49. Soy Sauce Production

The major raw materials, that are needed for soy sauce production are soybeans, wheat, and salt. Also, you can obtain different types of manufacturing processes to produce different types of soy sauce. You can start soy sauce production on a small-scale basis also.

50. Spice Powder Making

Spice grinding and packaging is one of the most profitable food processing business ideas in India. Also, you can initiate the business on a small and medium scale. Spice is an essential item and is considered a tastemaker. Apart from individual spice powders like chilly, cumin, and turmeric; special quality mixed spice powder processing is more profitable. Some of the most popular items are meat masala, curry powder, chat masala, etc. Read More…

51. Sugar Candy Manufacturing

Sugar candy is generally considered hard-boiled sugar confectionery. There are so many popular flavors for sugar candy like orange, pineapple, mango, mint, strawberry, etc. Sugar candy manufacturing is one of the most popular food processing business ideas.

52. Sunflower Oil Processing

For sunflower oil processing the main raw material is sunflower seed. Refining sunflower oil goes through a long way of purification. It consists of the following stages: mechanical cleaning, hydration, neutralization, bleaching, freezing, deodorization, and nitriding. Sunflower oil processing is capital intensive and profitable food processing business. Read More…

53. Tamarind Paste Making

Tamarind paste has many culinary uses including a flavoring for chutneys, curries, and the traditional sharbat syrup drink. The tamarind sweet chutney is popular in India and Pakistan as a dressing for many snacks. Basically, tamarind pulp contains 20% moisture, 6% fiber, and 67 % carbohydrates. Read More…

54. Tomato Processing

Tomato is a widely available item and processed tomato products are also very popular. The 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. The production process is not complex. Only you need simple machinery and equipment.

55. Tutti Frutti Making

Tutti frutti is a concentrated processed food product. Basically, you can produce it from raw papaya with attractive color, sugar, and preservatives. Additionally, several other food processing industries like cake, bakery bread, etc. use this product regularly. The product has also a very good retail opportunity. Read More…

56. Vermicelli Production

Basically, vermicelli is a pasta product. Also, it is popular as spaghetti. And the people in the Indian subcontinent consume it in different cooked food items. Some of the major popular recipes are Upma, khichadi, payasam barfis, halwa, Puliyogare, Curd Samia, etc. Read More…

57. Vinegar Manufacturing

Vinegar is a good preservative. Generally, it contains 5% acetic acid. Compliances under the FPO and PFA Act are mandatory for vinegar manufacturing. Commercial-scale vinegar manufacturing requires sound technical knowledge.

Rupak Chakrabarty

Rupak is the founder of MUVSI. He is a small business consultant by profession. His mission is to make people know how to make money and understand personal finance for a better living.

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Starting a Food Processing Business in India

India makes a lot of money mainly from farming. It is the sixth biggest in the world for selling food and groceries and is fifth in the global retail market.  The growing food processing industry is expected to become a big deal in the future.

On April 17, Italy launched its first mega food park project in India, which includes food processing facilities. This new project, called “The Mega Food Park,” happened because of a letter of intent between the ICE office in Mumbai and Fanidhar Mega Food Park in Gujarat. The launch shows both countries working together to strengthen their relationship. In this blog, we shall learn about starting a food processing business in India.

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Understanding Food Processing Units

Food processing units use different methods to turn raw materials into things people can eat. This process is important in areas like farming, gardening, plantations, raising animals, and fishing. It also includes industries that use farm materials to make edible products, making the food processing sector a big investment and profit area.

The processed food industry is now worth about Rs. 1100 crore, with a yearly growth rate of 10-15%. In the world of food processing units, there are nine categories based on the main materials used in making things. This industry is a key place for investment and profit, playing a big role in farming, gardening, plantations, raising animals, and fishing.

Why Food Processing Units Are Important?

Food processing is crucial to make sure there’s always enough food, no matter the season or the type of food. Making lots of processed foods can be a good opportunity, especially compared to doing it alone.

Benefits of Starting Food processing Business in India:

Starting a food processing business in India can be beneficial because of these:

1. More Demand from City Middle-Class People:

There are more and more middle-class people in Indian cities who want processed foods, making it a good market for investors.

2. Lots of Raw Materials:

India has many raw materials, a big advantage for the food processing industry, making sure there’s always enough to make things.

3. Changing How People Eat:

People’s eating habit are been changing, creating new opportunities in the food processing sector that matches the needs of the market.

4. Lower Production Costs:

India is cheaper for making things, making it more profitable for food processing units.

5. Good Financial Incentives:

The Indian government gives good financial incentives, making India a good choice for investors in the food processing industry. These incentives are make India a good and profitable place to invest in this area.

Starting a Food Processing Business in India: Important Steps and Legal Considerations

Starting a food processing business in India means dealing with many rules and plans made by the govt to helping set up and modernize such units, often giving financial help.

The important legal steps involved in starting a food processing business are:

1. Get FSSAI License:

Before starting any of the food business, you must get a Food Safety and Standards Authority of India or FSSAI licence . Different types of FSSAI licences are been available for different businesses in country. Following the right steps makes sure you follow the law and keep the business running smoothly.

2. Research and Understand the Market:

Doing thorough market research is very important in the beginning. Knowing how the market works and picking the right product are key steps. Checking if there’s demand in the market, looking at economic and industrial outcomes, analysing competitors, and checking trends all play a big part in making decisions.

3. Set Up the Business:

After picking the product and knowing the market, the business must have to be set up legally. There are different option like private limited company registration public limited companies, partnership firm registration, and limited liability partnership registration also, each with its own pros and cons. Choose based on things like the size of the manufacturing industry, yearly turnover, and other necessary criteria. Legal experts can give valuable advice to help make informed decisions.

By following these important steps and legal things, aspiring business owners can build a strong foundation for their food processing business in India. Seeking professional advice makes sure you follow the rules and make the business stable.

4. Picking the Right Location:

Choosing where to put your food processing factory and planning your business in the food industry involves some important things to think about when starting a food processing business.

Figuring out how big your market is helps you choose the best spot for your food factory. It’s good to pick a place that makes it easy to get things like skilled workers, raw materials, electricity, and transportation.

It’s also smart to think about government help and tax breaks, especially in certain parts of India, when deciding where to put your factory. Make sure to check if there are enough raw materials in the area where you want to set up. Since food can go bad, it’s important to make sure you can get what you need all year round.

5. Planning Your Business:

Making sure you’ve done good research and analysis from the start is really important for making a good business plan and starting a food processing business. You need to come up with new ideas and plans to make a roadmap for your company. This should include how your company works and what you want to do in the future. For food companies, it’s important to guess what might happen in the industry and plan for it to be successful.

6. Getting Money:

Having enough money is a very bigger part of starting and growing any business. The amount of money you need depends on how big your business is and what kind of industry you’re in. Finding people to invest in your company and making sure you have a steady source of money is important to keep your business going and growing strong.

7. Sorting Out Legal Compliances and Making Plans for Your Food Business

Some important legal considerations for starting a food processing business include:

• Getting Your Company Registered:

After starting your company, you have to register it with the right authorities before you start doing business. In India, there are specific documents and forms you need to submit for registration, following the rules in the Companies Act of 2013.

• Registering for Taxes:

Companies have to sign up for different taxes, like PAN, Sales Tax, Excise & Customs Registration, and Service Tax. It’s also important to register for Intellectual Property Rights to protect things like patents and copyrights from being claimed by others.

• Following the Rules:

Following laws like the Food Safety and Standards Act of 2006 and the Standard and Weight Measure Act is really important for starting a food processing business. To legally operate in India, you also need to get licenses like a trade license, food license, and industrial license.

8. Implementation:

Once you know all the steps, it’s crucial to make your plans happen in the right way for starting a food processing business. Your company needs to follow all the legal rules and set things up the right way.

Managing your workers and the things you need to run your business is really important for starting a food processing business. Splitting up workers into different groups can help improve both sales and the quality of your products.

By carefully dealing with legal matters and making sure you follow all the necessary steps, your food processing business can start off on the right foot in India. This way, you can make sure your business is both legal and runs smoothly.

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Final thoughts.

Starting a food processing business in India needs a careful approach. This includes following the law and planning things well. From the beginning steps like registering under the Companies Act 2013 to dealing with taxes and protecting your ideas, understanding and working with the legal side is key. Following laws like the Food Safety and Standards Act of 2006 and getting the right licenses is vital for your business to be seen as legitimate. Making sure your plans are put into action well, and taking care of your workers and what you need to run your business, can set your food processing business up for long-term success in the Indian market.

Aishwarya Agrawal

Ms. Aishwarya Agrawal is a graduate from Hidayatuallah National Law University, Raipur [HNLU Raipur]. Aishwarya holds a great interest in adding value to the legal fin-tech sector. She joined "StartupFino" with a motive to help budding lawyers in their day-to-day journey in the field of Law.

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An Overview of the Indian Food Processing Sector

• May 02, 2023, 12:50
• Miscellaneous

India has great potential to become a global processed food export powerhouse as it includes a rich agricultural resource base, strategic geographic location and proximity to food-importing nations, and an extensive network of food processing training, academic, and research facilities. The Indian food processing industry has grown rapidly with an average annual growth rate of 8.3% in the past 5 years. With a market size of US$ 866 billion in 2022, the food industry will play a vital role in the economy's growth. The domestic food market is projected to grow by over 47% between 2022 and 2027, reaching US$ 1,274 billion. In 2023, the food market will generate US$ 963 billion in revenue and the market is anticipated to expand at a CAGR of 7.23% between 2023-27.

India's agricultural exports surged by nearly one-fifth (19.92%), crossing the US$ 50 billion milestone, covering 50% of the world’s rice market in FY22. Exports of processed food climbed from US$ 8.56 billion in 2020-21 to US$ 10.42 billion in 2021-22. Furthermore, in 2021-22, processed food exports accounted for 22.6% of the overall agri-food exports. The Indian food processing sector has attracted more than US$ 6 billion worth of foreign direct investment (FDI) since 2014-15. Moreover, the food processing industry has attracted FDI equity worth US$ 709.72 million during 2021-22. The total FDI received in the food processing sector is US$ 11.79 billion from April 2000 till December 2022.

Food Processing Industry in India India’s food processing sector is one of the largest in the world and it is expected to reach US$ 535 billion by 2025-26. The rise in the preference for processed food is driven by two worldwide consumer megatrends

• The increasing demand for convenience
• A growing emphasis on health and wellness.

Different Techniques of the Food Processing Industry

Industry Segments

The food processing industry in India is made up of 5 segments including grains, cereals and pulses, fruits and vegetables, meat and poultry, dairy products and processed foods.

• Grains, cereals, and pulses

India is the largest producer of rice, wheat, and other grains including corn, sorghum, and millets in the world. India has a substantial grain processing sector. with the majority of the nation's grain production going towards food processing. The industry comprises the processing of cereals and pulses into many forms, such as flakes, puffed cereals, and ready-to-eat snacks, as well as the milling of grains to generate flour, rice, and other products.

• Fruits and vegetables

India is a significant producer of a variety of fruits and vegetables, with the industry making up around 28% of the nation's overall agricultural output. These items are highly perishable and have a limited shelf life, hence the food processing industry is essential in processing and preserving them. The sector includes the preparation of fruit and vegetable juices, jams, and pickles, as well as the processing of fresh and frozen fruits and vegetables.

• Meat and poultry

India is a major producer of beef, mutton, and poultry, and the country's meat and poultry industries are expanding quickly. These items, which include the manufacturing of frozen meat, meat products, and poultry products, are processed and preserved with the help of the food processing sector.

• Dairy products

India is the world's largest producer of milk, and the dairy sector is a significant part of the nation's food processing business. The industry involves the transformation of milk into a variety of dairy products, including butter, cheese, yoghurt, and others.

• Processed foods

In India, the processed food sector produces a wide variety of food items, including convenience foods, ready-to-eat meals, and snacks. The industry is supported by a robust supply chain that comprises primary processors and food processing companies.

Exports in the Indian Food Processing Industry The export goal for agricultural and processed food products for the fiscal years 2022–23 was set at US$ 23.6 billion, of which US$ 19.694 billion i.e., 84%, had been accomplished by December 2022.

During 2011-12 to 2020-21, the export of goods under the Ready to Eat (RTE), Ready to Cook (RTC), and Ready to Serve (RTS) divisions saw a CAGR of 10.4%. India exported finished food goods worth more than US$ 2.14 billion in 2020-21. The United States, the United Arab Emirates, and Nepal are the top three RTE export destinations in 2020-21. In 2020-21, the primary exporting destinations for RTC are the United States of America, Malaysia, and the United Arab Emirates.

As depicted in the below graph, there is a 39.79% increase in the processed fruits and vegetables segments followed by a 33.39% increase in the other processed foods, and a 6.4% rise in the livestock products from April- December 2022-23 to April-December 2021-22.

Opportunity

in the Food Industry

India is the world's largest dairy producer, but it ranks 46th in terms of export. Similarly, India is the second-largest producer of vegetables but ranks 15th in the global industry.

In terms of worldwide exports, the processed food category is increasing far faster than the unprocessed food category - secondary and higher processed foods are growing at 5-6% CAGR, while unprocessed and primary foods are growing at 1-3% CAGR.

The demand for processed food products is being driven by increased urbanisation, higher disposable incomes, the growth of nuclear families, and a preference for convenience food goods. Furthermore, selling food in processed form allows you to charge a greater price and hence capture a larger economic value. For instance, according to an estimate by the RBI, manufacturing prepared meals adds 30% value to the product whereas processing meat adds 12.7%.

As depicted in the below table, India has a solid position in terms of production, but its position deteriorates in terms of food product export, particularly in processed form across all categories. Hence, it is imperative that the industry, along with all stakeholders throughout the value chain, unite and make concentrated efforts in order to establish a strong position in global processed food exports.

Source:  Federation of Indian Chambers of Commerce & Industry (FICCI0 and BCG Report

Government Initiatives

• Mega Food Parks
• Integrated Cold Chain and Value Addition Infrastructure
• Creation/ Expansion of Food Processing/ Preservation Capacities (Unit Scheme)
• Infrastructure for Agro-processing Clusters
• Creation of Backward and Forward Linkages
• Food Safety and Quality Assurance Infrastructure
• Human Resources and Institutions
• PM Formalisation of Micro Food Processing Enterprises Scheme Under the Aatma Nirbhar Bharat Abhiyaan, the centrally sponsored scheme, the Pradhan Mantri Formalisation of Micro food processing Enterprises (PMFME) Scheme was launched on June 29, 2020. This scheme is currently being implemented in 35 states and union territories with the goal of improving the existing micro-enterprises in the unorganized segment of the food processing industry and the formalisation of the sector. It also includes US$ 487.61 (Rs. 40,000) in financial assistance for working capital and the purchase of small tools for each member of the Self Help Group (SHG) involved in food processing operations. Over 1 lakh SHG members have been identified and a total of US$ 24.74 million (Rs. 203 crore) has been granted.
• Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) The Production Linked Incentive Scheme for Food Processing Industry (PLISFPI), a central sector scheme has been allocated a financial outlay of US$ 1.32 billion (Rs. 10,900 crore) for the period of 2021-22 to 2026-27. It aims to assist the emergence of global food manufacturing champions commensurate with India's natural resource endowment and to encourage Indian brands of food products in foreign markets. By 2026-27, the scheme's implementation would enable an increase in processing capacity, resulting in a processed food output of US$ 4.07 billion (Rs. 33,494 crore) and the creation of roughly 2.5 lakh jobs.

Road Ahead Due to social media and digital knowledge, the Covid-19 pandemic has expanded the acceptability of processed foods, and customer demand for more ethical and environmentally friendly products is expanding. Agriculture and allied activities are the backbone of the Indian economy. More than half of the Indian population depends on it for a living. Thus, increasing the gross value addition in the agricultural industry will be a critical lever in improving the country's socioeconomic conditions. India has the potential to become the global food supply hub and boost its export share in the post-Covid-19 future. For the sector to remain competitive, it is essential to have scale, quality, and cost-effective export capabilities that meet international certification criteria.

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7 Things Needed to Start a Food Manufacturing Business

Updated on : Jul 14th, 2022

The food manufacturing business is a profitable business in India. Since India is an agrarian economy, it is known for manufacturing varieties of organic food products. India generates most of its revenue from food production and agriculture. The demand, possibilities of diversification and expansion are tremendous for a food manufacturing business. It has emerged as one of the leading industries in India.

The food processing business means various techniques and operations through which the raw food materials are transformed into food items for storage, cooking and consumption. It includes many processes right from the basic preparation of the raw food to converting it to fit for consumption.

Food Manufacturing Business Ideas in India

There are many kinds of food manufacturing businesses that you can start. Some of the major food manufacturing businesses are listed below:

• Cereals and pulses processing
• Dry nuts and fruits
• Ready-to-eat foods
• Baked goods
• Snacks and namkeens
• Tinned goods
• Ready to cook packages
• Frozen foods
• Bread production
• Cereal production
• Flour production
• Meat processing
• Fruit juice production
• Spices and curry powder production

7 Things Required For Starting a Food Manufacturing Business

When you have decided to start a food manufacturing business, you require the following seven things to run your business:

Decide the Business Structure

The first thing required to establish a food manufacturing business in India is to decide and set up a business structure. It may be a One Person Company (OPC) , partnership firm , Limited Liability Partnership (LLP) or private limited company . You should decide the business structure for your food manufacturing business based on its scale and management type. 

After deciding on the structure of your manufacturing business, you need to mandatorily obtain the company or firm registration for your food manufacturing business from the Registrar of Companies or Registrar of Firms, respectively. The company registration or firm registration will help you get funds and run your business legally.

Research the Market

Before starting a food manufacturing business, you need to research and understand the market to choose the right product to manufacture. You should research the economic and industrial outcomes of the current units of food processing. While selecting the food product, you should keep in mind the availability or viability of the product in the market as it helps you to determine your competitors, current trends and market size.

Arrange for Funds

Every business needs proper capital and funding for establishing and running its operations. There are many ways to obtain funds for your business. You can go for crowdfunding or get a business loan from banks when you don’t have enough capital for your business. You can even raise money from your family and friends. 

You can approach venture capitalists or angel investors who can contribute to your food business’s funding. You can also apply for funds from government schemes that provide assistance to agro-industries, such as Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) scheme, Pradhan Mantri Krishi Sinchayee Yojana (PMKSY), etc.

Decide on the Location

You must decide on the location of the manufacturing unit. Selecting a location away from the city is recommended as manufacturing units require vast areas. But, ensure that the location is close to the resources so as to reduce logistics costs. The location should be easily accessible to resources like workforce, transportation facilities, raw materials, electricity sources, etc. It should also be close to the location where you will be selling your products.

Get FSSAI Registration/License

It is mandatory for people involved in food businesses to obtain an FSSAI registration or license . As per the Food Safety and Standards Act, 2006 (FSS Act), all food manufacturing business owners in India must obtain an FSSAI registration/license. There are three types of FSSAI registration. The kind of registration you need to apply for depends on your food manufacturing business’s annual size and turnover.

You need to apply for an FSSAI Basic Registration when your business has an annual turnover of below Rs.12 lakh. You should apply for a State FSSAI License when your annual turnover is above Rs.12 lakh but below Rs.20 crore. When your annual turnover is above Rs.20 crore, you should obtain a Central FSSAI License.

Get Other Mandatory Licenses

You need to obtain certain other mandatory licesnes/registrations for your food manufacturing business before starting its operations. You need to obtain a fire department NOC for your business. You need to get a water testing certificate from a certified agency as water is an essential ingredient for preparing food items. 

Shop and Establishment Act Registration is required since all shops and commercial establishments need to obtain this registration. You need to obtain a pollution clearance from the respective State Pollution Control Board (SPCB) since the food manufacturing industry is considered as a polluting industry as per the CPCB and SPCB.

If you plan to export your food items, you need to obtain an  Import Export Code (IEC) . You will also require a GST registration. When you sell your food products or items for consumption or storage under a brand, you can get a trademark registration to protect your branded products from competitors.

Equipment and Staff

Lastly, after obtaining all the required licenses/registrations, deciding on the location and arranging funds, you need to obtain the equipment and hire staff to run your food processing business. Since food manufacturing involves processing raw materials to food items for sale or consumption, you will require a variety of equipment and machinery for processing the food.

The equipment and machinery vary according to the food item to be manufactured. However, most food manufacturing businesses generally require food cleaning, grading, peeling, blending and sorting equipment. Additionally, machinery is required to pack and label food items manufactured and processed for sale or consumption.

You would require a good workforce to run your business. You must hire people for various designations, including factory workers, cooks, marketing, sales managers, cleaners, and HR managers.

After establishing your food processing unit, ensure that you are marketing it adequately. A good marketing strategy will help to grow your business. Build a website of your business containing all the key information so that consumers and suppliers know about your manufacturing unit. You can post your food products on social media channels such as Instagram and Facebook to gain more customers or suppliers.

Disclaimer: The materials provided herein are solely for information purposes. No attorney-client relationship is created when you access or use the site or the materials. The information presented on this site does not constitute legal or professional advice and should not be relied upon for such purposes or used as a substitute for legal advice from an attorney licensed in your state.

About the Author

Mayashree Acharya

I am an advocate by profession and have a keen interest in writing. I write articles in various categories, from legal, business, personal finance, and investments to government schemes. I put words in a simplified manner and write easy-to-understand articles. Read more

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Food Processing

Average annual growth rate (aagr) of 11.18% in the last 5 years.

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Quick links, food processing - 'a sunrise sector'.

India's food ecosystem offers enormous investment opportunities with stimulating growth in the food retail sector encouraging economic policies, and attractive fiscal incentives. Through the Ministry of Food Processing Industries (MoFPI), Government of India is taking all necessary measures to boost investments in the food processing industry in India. Some of the initiatives include:

• Pradhan Mantri Kisan Sampada Yojana (PMKSY) aims at developing modern food processing infrastructure. PMKSY has been envisaged as a comprehensive package which will result in creation of modern infrastructure with efficient supply chain management from farm gate to retail outlet.
• Pradhan Mantri Formalisation of Micro Food Processing Enterprises Scheme (PMFME) aims to enhance existing individual micro-enterprises in the unorganized segment of the food processing industry.
• Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) aims to boost domestic manufacturing, increase exports, while supporting food manufacturing entities with stipulated Sales and willing to make investment for expansion of processing capacity and branding abroad to incentivize emergence of strong Indian brands. The scheme is EoI bases.

India’s agricultural and processed food products exports were up by 13% to $19.69 Bn in nine months of the current fiscal (2022-23) compared to the same period last year.

Agro Processing Cluster Projects approved by MoFPI

Mega Food Park Projects approved by MoFPI.

• The share of processed food exports in agri-exports has increased substantially from 13.7% in 2014-15 to 25.6% in 2022-23.
• The total FDI received in the food processing sector from Apr 2000 till Sept 2023 was $12.354 Bn which is 1.89% of the total FDI Equity inflow. The FDI equity inflow in the Food Processing Sector for FY 2023 was $0.896 Bn.
• By 2025 the Indian Food Processing market is estimated to reach $535 Bn and growing at a compound annual growth rate of 15.2%. Tier-II and Tier-III cities could mirror the trend visible in metropolitan areas, by consuming more processed food in the coming years. 
• India’s consumer spending to grow to $6 Tn by 2030.
• India's export of agricultural and processed food products rose close to $51 Bn in 2022-23. Major exporting countries include USA, Bangladesh, UAE, Vietnam, among others. 
• India has emerged as world leader in the production of a variety of fruits like mango, banana, guava, papaya, sapota, pomegranate, Lime & aonla and is the second largest producer of fruits and vegetables.
• In FY 2022-23, India exported 17.8 Mn Tonnes of non-basmati rice and 4.6 Mn Tonnes of basmati rice.
• Government aims to make India the Global Hub for 'Shree Anna' (Millets)

100% FDI is permitted under the automatic route in food processing industries in India.

100% FDI is allowed through the government approval route for trading, including through e-commerce in respect of food products manufactured or produced in India.

For further details, please refer FDI Policy

Share of GVA of Agriculture & Allied Sector in Total Economy (at current prices) (2022-23)

Share in total employment

Worth of agricultural and processed food products exported in 2022-23

Cropping intensity

Explore Related Sub Sectors

World's largest producer of Spices, Milk and Pulses

World’s second largest producer of tea and sugarcane

World's second largest producer of wheat, fruits, and vegetables

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India’s food processing sector is one of the largest in the world and its output is expected to reach $535 Bn by 2025-26.

The Food Processing sector in India has a quintessential role in linking Indian farmers to consumers in the domestic and international markets. The Ministry of Food Processing Industries (MoFPI) is making all efforts to encourage investments across the value chain. The food processing industry has a share of 12.22% (at 3-digit of NIC classification) in the employment generated in all Registered Factory sector engaging approximately 2.03 Mn people. Unregistered food processing sector supports employment to 5.1 Mn workers as per the NSSO 73rd Round report 2015-16 and constituted 14.18% of employment in the unregistered manufacturing sector. Major sectors constituting the food processing industry in India are processed fruits and vegetables, RTE/RTC, mozzarella cheese, processed marine products, edible oils, beverages, and dairy products.

Under PMKSY the projects sanctioned under various schemes as on date (30.09.2023) include, 41 Mega Food Parks, 371 Cold Chain projects, 68 Agro-Processing Clusters, 474 proposals under Creation/Expansion of Food Processing & Preservation Capacities (CEFPPC), 61 Creation of Backward and Forward Linkages Projects, 46 Operation Green projects, 186 Food Testing Laboratories projects have been approved across the country.

The key sub-segments of the Food Processing industry in India are Fruits & Vegetables, Poultry & Meat processing, Fisheries, Food retail, dairy industry, etc.

• Total horticulture production in the year 2022-23 is estimated to be 351.92 MT, an increase of about 4.74 MT (1.37%) as compared to the year 2021-22 (final)
• India ranks 1st in Milk production and the total milk production in the country during 2021-22 is 221.06 MT . In the year 2021-22, the milk production has registered an annual growth rate of 5.29%
• In 2021-22, the total egg production in the country is 129.60 Bn which have increased by 6.19% as compared to the previous year
• The fish production in 2021-22 is 16.24 MT comprising of marine fish production of 4.12 MT and 12.12 MT from Aquaculture. Further, national fish production for 2022-23 is expected to reach 17.4 MT
• Production of plantation crops is estimated to increase from 15.76 MT in 2021-22 to 16.05 MT in 2022-23, which is an increase of about 1.78%
• India achieved an all-time high exports of seafood both in terms of volume and value by shipping 1.73 Mn MT of seafood worth $8.09 Bn during FY 2022-23
• The export of other cereals recorded a growth of 13.64% in nine months of the current fiscal
• India export of other Cereals (Excluding Rice, Wheat Maize and Millet) to the world was worth $404.30 Mn during the Apr - Oct 2023 as per provisional data provided by DGCIS
• The total meat production in the country is 9.29 MT for the year 2021-22 with an annual growth rate of 5.62%. The total five major meat producing States are Maharashtra (12.25%), Uttar Pradesh (12.14%), West Bengal (11.63%), Andhra Pradesh (11.04%), and Telangana (10.82%)
• The estimated production of rice is 135.75 MT, Wheat is 110.55 MT, and Nutri/Coarse cereals is 57.31 MT for the year 2022-23
• India’s exports of foodgrains have registered a steady growth in last few years which is reflected in the increase in India’s share in world foodgrain exports from 3.38% in 2010 to 7.79% in 2022 as per UN COMTRADE statistics. Top agricultural products exported from India include Marine products, rice, spices, amongst others.
• Non-Basmati Rice has emerged as India’s top export item among the many agricultural and processed food product exports under APEDA basket, with the export of $4,663 Mn in nine months of 2022-23

GROWTH DRIVERS

Agri-commodity hub.

Largest producer of several agri-commodities

Huge consumer base

1.3 Bn consumers with increasing demand for branded food

Strong economy

India is the fastest growing largest economy in the world

Conducive policies

Proactive government policies with attractive fiscal incentives

One District, One Product (ODOP)

Under ODOP scheme, 713 districts have been identified across the country

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Food Products for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat. Under the PLI Scheme for Food Processing Industry, a total of 158 applications have been approved under different categories including 22 applicants (out of 30 selected applicants) selected to participate under PLI Scheme for Millet-based products are MSMEs. The implementation of PLI scheme is likely to facilitate expansion of food processing capacity by nearly INR 30,000 crore and create additional direct and indirect employment opportunities for about 2.5 Lakh persons by the year 2026-27. As per the data being reported by the PLIS beneficiaries, investment of about INR 7,099 Cr has been made under the Scheme.

INR 10,900 Cr

Scheme Outlay

• Ministry of Food Processing Industries
• Ready to Eat / Ready to Cook (RTE/ RTC)
• Marine Products
• Fruits and Vegetables
• Mozzarella Cheese

Industrial Land Bank Portal

Gis - based map displaying available infrastructure for setting up business operations in the state., investment opportunities in food processing.

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Applicant for the purpose of the Scheme shall be

• Proprietary Firm or Partnership Firm or Limited Liability Partnership (LLP) or a Company registered in India
• Co-operatives
• SME and making an Application for seeking approval for coverage under the Scheme.

The applicant may include a company applying on its own behalf and its subsidiary(/ies) provided the Applicant company holds more than 50% of the stock of its subsidiary(/ies) and that none of such subsidiary company(/ies) is included in any other Applicant company under the Scheme.

Marketing Federation or Apex level co-operatives can also apply on behalf of Member Unions or Member co-operatives in the case of co-operatives.

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Transport within the clusters is eligible subject to meeting of minimum distance criteria for all category of applicants.

Usually entire rack consisting of 40 wagons is booked by one party, which aggregate the crops from different transporting parties. Railway allows only one name for sender and therefore, only one name for consignee appears in Railway Receipt. In such case, we can accept the claim with the following supporting documents:

• Agreement/MoA between the applicant and the consignee as per RR showing the crops details, proportionate payment towards railway freight, including bank details;
• Transaction voucher – Demand raised by consignee as per RR to the applicant for payment of proportionate freight amount;
• Bank Statement showing payment to consignee as per RR;
• Duly counter signed copy of RR (signed by Consignee & Applicant, both)

Applicant can enter the details of major 10 farmers and upload the list of farmer’s detail on the Online Application Form as pdf file

Establishment of Animal Feed manufacturing and strengthening of existing units/ plant of the following categories:

• Establishment of Mini, Medium and Large Animal Feed Plant
• Total Mixed Ration Block Making Unit
• By pass protein unit, Mineral Mixture Plant
• Enrich Silage making unit, Animal Feed Testing Laboratory
• Any other activities related to animal feed manufacturing.

Market Research

The state of food security and nutrition in the world 2023, annual report 2022-23 | ministry of food processing industries, new india factbook 2022-2023, annual report 2021-22 | ministry of food processing industries, prime minister's formalization of micro food processing enterprises …, government ministry/ department.

• Department of Agriculture, Cooperation & Farmers Welfare
• Department of Fisheries
• Department of Animal Husbandry and Dairying
• Food Safety and Standards Authority of India
• Agriculture and Processed Foods Export Development Authority
• Marine Products Export Development Authority

Industry Association

• Confederation of Indian Food Trade and Industry (CIFTI)
• List of Institutions focusing on Dairy, Meat and Fisheries
• List of Institutions focusing on Horticulture Crops
• List of SAUs offering courses in Food Science & Technology & Dairy Technology
• List of State Agricultural Universities
• Institution focusing on Post Harvest Technology
• Doing Business in India
• Team India News

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• Why Start a Food Manufacturing Business?

India is a diverse country. Its food is as diverse as its people and geography. India and its connection to food are of utmost importance. The taste of Indian flavours and spices is making the Indian food manufacturing industry popular not only in the domestic market but in the global market as well. The food manufacturing industry is a fast flourishing industry. Starting a food manufacturing industry is a profitable option indeed.

Table of Contents

What Products You Can Offer?

Industry and market, benefits to start, production linked incentive scheme for food processing industry (plisfpi), nivesh bandhu:, building and construction, legal and statutory, licenses and registration, three types of fssai license, documents for fssai basic registration (also required for state and central).

• Pollution Clearance
• Shops and Establishment Registration
• Fire Department NOC
• Trademark Registration
• Water testing and an Organic testing Certificate
• Import and Export Code (IE Code)

Machinery 

Preparation equipment, mechanical equipment, packaging and labelling equipment, raw material, manufacturing/service flow, why corpseed.

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Well, if you have finally decided to start a food manufacturing company, the next step would be finalizing the products. In the case of food, the list of products is inexhaustible. A few options that have high demand and good performance in the market are as follows:

• Ready to eat packaged foods
• Ready to cook foods
• Bakery products
• Frozen foods
• Chocolate production
• Bread production
• Cereal production
• Bottled water
• Spices and curry powders production

The Indian food industry is a high-growth and high-profit industry. Its contribution to the world food trade is growing rapidly. The food and grocery market in India is the world’s sixth-largest. The Indian food processing industry makes up 32% of the total food market of the country and in terms of production, consumption, export, and expected growth, it is ranked fifth. It contributes approximately 8.80 and 8.39 % of GVA in Manufacturing and Agriculture respectively, 13% of India’s exports, and 6% of total industrial investment.

The government through MoFPI is encouraging investments in the industry. It has approved proposals for joint ventures (JV), foreign collaborations, industrial licenses, and 100% export-oriented units. As per the data given by the Department of Industrial Policies and Promotion (DIPP), the food processing sector has received approximately USD 393.41 million worth of FDI in 2020-21. During the period of April 2000 till November 2021, FDI WORTH USD 10.88 billion was received by the food processing sector. The CII has estimated that the food processing sectors have the potential to attract more than US$ 33 billion of investment over the next 10 years. 

Under the automatic route, 100% FDI is permitted in the food processing industries in India. As per 2020-21, data India is exporting Ready to Eat (RTE), Ready to Cook (RTC), and Ready to Serve (RTS) food products to U.S.A, U.A.E, Nepal, Canada, and Sri Lanka, which were more than $ 2 Billion in 2020-21.

The government has approved the Central Sector Scheme – Production Linked Incentive Scheme for Food Processing Industry (PLISFPI) to support food manufacturing and Indian food product brands in the international market with an outlay of Rs. 10900 crore. 

The Government is also implementing Pradhan Mantri Kisan Sampada Yojana (PMKSY) with an outlay of Rs. 6000 crore. 

Government Incentive Schemes 

The implementation period of this scheme will be from 2021-22 to 2026-27.

This scheme has two components. 

The first component is associated with incentivizing manufacturing of four major food product segments viz. Ready to Eat/ Ready to Cook (RTE/ RTC) foods including Millets-based products, Processed Fruits & Vegetables, Marine Products, Mozzarella Cheese.

The second component is associated with supporting branding and marketing abroad to incentivize the emergence of strong Indian brands.   

There are a number of schemes that will be implemented under PMKSY. These are as follows: 

• Mega Food Parks
• Integrated cold chain and value addition infrastructure
• Creation/Expansion of Food Processing/ Preservation capacities 
• Infrastructure for Agro-processing Clusters
• Creation of Backward and Forward linkages
• Food safety and quality assurance infrastructure
• Human resources and institutions
• Operations Green

Nivesh Bandhu is a one-stop platform for all the stakeholders of the industry, including farmers, processors, traders, and logistics operators. It brings together central and state government policies and incentives available for the food processing sector. A food map is also available on the portal that can be helpful for the investors to find various project locations.

How to start the food manufacturing business?

It is the choice of the project proponent to decide the size and scale of his industry. As per the resources available the industry could be small, medium, or large-sized.  The land area required for the industry would depend upon the market size and share of the industry. The land area may range from 0.5 acres to 50 acres. The land area and location should be finalized considering the availability of raw materials, manpower, transportation facilities, ease of doing business, etc. In some states, the government provides tax exemption and subsidies on establishing businesses in specific locations. 

The building should be designed considering the requirements of the business. The Architect should prepare the building plan taking into consideration the machinery required and the processes that are to be carried out in the plant. The safety measures as mandated by different rules and regulations should be in place. The average construction cost comes around Rs. 2000-4000 per square feet. 

Finances and financial compliances are some of the most important requirements for running a business smoothly. There are a few tax registrations that are mandatory. 

• Income Tax:- Each and every business is mandated to have a PAN (Permanent Account Number) and TAN (Tax Account Number), under the name of the business or the owner, in case of a sole-proprietorship, for filing income tax.
• GST Registration:- GST registration is mandatory for businesses having a financial turnover of more than Rs. 20 Lakhs (Rs. 10 Lakhs for special category states). In some cases GST Registration is mandatory irrespective of the turnover:
• The business involving inter-state supply of goods and services
• The situation where the tax is paid by the person receiving the goods/services instead of the supplier.
• A business operating on an e-commerce platform.
• Professional Tax:- This is levied by the local municipality on the salary paid to every individual. The tax rate is different in different States. 

Registration of the business entity: You are free to decide on whatever business structure you want to choose for your company. The business structure that you choose should be suitable for your conditions. The different structures to choose from are as follows-

• Private Limited Company

It’s the renowned legal structure for the business with multiple benefits such as limited liability, separate legal entity, ease in share transfer, etc. A private limited company can be registered with a minimum of 2 directors and 2 shareholders, where shareholders and directors can be the same person. At maximum, the directors can be 15 and the members can be 200. 

• One Person Company

The biggest advantage of OPC is – that there can be only one member as the sole owner who will be responsible for all the economic and organizational decisions. It is mostly preferred for micro-businesses.

• Limited Liabilities Partnership

It is an upgraded version of the general partnership and the partners are known as Designated Partners. The partners in LLP have limited liability, meaning that the personal assets of the partners can’t be used for paying the debts of the company. All partners are shielded from joint liability. For professional firms, micro and small businesses that are family-owned or closely-held LLPs are the most recommended.

• Proprietorship

A sole proprietorship is a kind of business entity that is solely owned, controlled, and managed by a single person. It is the easiest way of running a business, with the ease of registration process and with lease compliance responsibilities. The proprietor possesses the complete rights of the business to himself in terms of legal formalities, decision making, finance, etc.

• Partnership

A partnership comes into the picture when two or more people agree to go into business together and both might be from the same family or same association, whether or not they have a written contract. Validating the details in a partnership agreement that specifies each partner’s rights, responsibilities, and share of the profits is mandatory.

1. Food License

Any FBO (Food Business Owner) who is planning to start a business that involves activities related to food (food processing, manufacturing, re-labelers, repackers, retailers, distributors, suppliers, caterers, etc.) need to register itself or get a license from FSSAI depending upon the annual turnover.

FSSAI stands for Food Safety and Standards Authority of India which was established under the Food Safety and Standards Act, 2006. It comes under the Ministry of Health & Family Welfare. FSSAI regulates and checks for safe food manufacture, storage, and handling practices of FBOs. FSSAI is responsible to check for compliance and see if FBOs are following the regulations and standards mentioned under the Food Safety and Standards Act, 2006.

• What is FSSAI License?

Any FBO requires an FSSAI Registration or an FSSAI License depending upon annual turnover, installed capacity, area of operations, branches, etc. FSSAI License is a 14 digit license number issued to FBOs compliant with the rules and regulations laid down under Food Safety and Standards Act, 2006. The FSSAI License number should be printed on the food products with the FSSAI Logo. 

• FSSAI Basic Registration

Small start-ups and businesses having an annual turnover under Rs. 12 Lakhs should seek FSSAI basic registration. Registration can be obtained from the state government by submitting the needed documents. Registration application should be applied through Form A.

• FSSAI State License

Mid-sized companies having an annual turnover of more than 12 Lakhs but less than 20 crores need to obtain FSSAI State License from the State Government. State License is to be applied through Form B.

• FSSAI Central License

Large businesses having an annual turnover of more than 20 Crores need to obtain FSSAI Central License from the Central Government. The Central License is to be applied through Form B.

• Duly-Filled Form A signed by all directors/partners/proprietor/ Executive members of the society [Form B for State and Central License]
• On the letterhead of the company, Food Safety Management System (FSMS) declaration should be done
• Annual Turnover of the Food Business Operator (FBO) determined by Proof of Income
• The person appointed by the firm/company nominated in Form IX
• Self-Declaration by Director
• Affidavit on Non-Judicial Stamp Paper

Additional Documents for State License

• Location’s Blueprint or layout 
• A list specifying the Equipment and Machinery installed or to be installed at the location
• Copy of the license and NOC from manufacturers
• Authority letter specifying the name and address of the responsible person

Documents for Central License

• An Analysis report of water from a certified and/or a government health laboratory
• IEC issued by the Directorate General of Foreign Trade
• For units involved in the manufacturing of mineral or carbonated water, a pesticide residue report of water
• Source of Milk
• Proof of Annual turnover, if required
• Meat provider/ Meat processing units
• Certificates issued by the Ministry of Tourism, if applicable
• Vehicles turnover proof, if applicable
• Articles of Association (AoA) and Memorandum of Association (MOA)

2. Pollution Clearance

Since the food manufacturing industry is considered a polluting industry as per CPCB as well as SPCBs, Pollution clearance (Consent to Establish/Consent to Operate) is required from the respective SPCB. Depending on the type and scale of the business operation a category-specific license is required. Most of the food processing industries fall in orange and green categories.

CTE should be obtained before establishing the business and CTO is required before the beginning of the operations. CTE is a one-time NOC whereas CTO requires renewal from time to time.

3. Shops and Establishment Registration

As per the Shops and Establishment act , 1953, an FBO is mandated to get a trade license by registering the business with the local authority. The FBO should send an application along with the required fee and details of the business to the concerned local municipality or health department. An inspector will visit the premises for inspection. After the complete inspection and verification of the documents, the license is issued to the FBO.

4. Fire Department NOC

A NOC from the concerned fire department is required as well before starting the business. The FBO should apply through an application accompanying necessary documents like- building plans, building model, and certificate from the architect. A questionnaire related to compliance with fire safety rules and regulations shall also be filled out by the FBO. An inspection of the premises will be carried out by the fire department officials after the verification of the documents. 

5. Trademark Registration

Trademark registration is not mandatory but it is an added advantage for any business for faster growth and building a brand image in the market. The FBO can get a trademark registration by registering over the Intellectual Property India Portal with necessary documents and fees.

6. Water testing and an Organic testing Certificate

Water is the most necessary ingredient for preparing any food item. The water being used by the FBO for manufacturing food items should be of the best quality. A water testing certificate should be obtained from a certified agency in order to comply with the underlying permissible limits.

7. Import and Export Code (IE Code)

Any business that is importing goods is required to obtain IE Code. IE Code application should be submitted to the Directorate General of Foreign Trade (DGFT) along with necessary documents and fees. The IE Code registration is a one-time requirement and it has no additional compliances or annual filings. 

The food processing industry involves the processing of raw materials into an attractive and marketable food product. For this processing which is diverse and complex, a variety of machinery and equipment is required. The various equipment involved in the production cycle are as follows:

Cleaning Equipment:- The cleaning process involves the dry process and wet process. The raw material is to be cleaned thoroughly so that any contaminant can be removed from the surface of the material. The following types of equipment are used for cleaning: 

• Sterilizers
• Soak/Floatation Tanks
• Spray Washers
• Magnetic Separators

Grading Equipment:- this process is associated with sorting and determining the overall quality of the raw material. Equipment used:

• Tungsten lights
• Image Processors

Peeling/Skinning Equipment:- The undesirable and inedible parts are removed in this process. Equipment employed:

• Pressure vessels (Flash steam peeling)
• Stationary rotating blades (Knife peeling)
• Conveyors and Furnaces (Flame peeling)

Sorting Equipment:- This process is almost similar to the dry cleaning process. 

• Sieves/Screens
• Sorting Conveyors
• Disc Separators

Size Reduction:- Mechanical processes involving shear, impact, or compression force are used to reduce the average particle size of solid food matter. 

• Grinding/Crushing: Roll crushers, Pressure mills, Strainers/Pulpers
• Cutting/Chopping: Slicing machines, Meat grinders

Size Enlargement:- These processes are used to increase the average particle size of solid food matter.

• Extrusion: Refrigerated extruders, Non-thermal extruders
• Agglomeration: Pelletizing Equipment, Rotating Drums, Tableting equipment, High-speed agitators
• Forming: Confectionary molders, Bread molders, Pie, and Biscuit formers

Homogenization/Emulsification:- The liquid food matter is homogenized and average particle size is also reduced.

• Emulsifiers
• Homogenizers
• High shear mixers

Mixing/Blending Equipment:- This process is used to maintain a uniform mixture.

• Fluid mixers
• Dough/Paste mixers
• Solid mixers

The raw material is procured from the producers to make finished goods. The raw material required depends upon the type of food being manufactured in the industry.  For e.g. Grains, nuts, and seeds; vegetables and fruits; seafood and meat; dairy products, poultry, etc. The raw materials being used in the manufacturing process should be of the best quality. 

The government developed the “Nivesh Bandhu” Investor Portal. The trade section of this portal allows the food processors to procure raw materials. 

The food producers can procure raw materials from FPOs (Farmer Producer Organization).

To handle the operations and functioning of the business, manpower is required. The staff of the industry constitutes of people having different job roles according to their experiences and capabilities. The basic teams required are- Management, Human Resources, Operations, Quality, Sales, and Labor. 

The people employed in any business are subjected to different labor law regulations and registrations:

• Employee State Insurance registration

The businesses having more than 10 employees earning less than Rs. 21,000 per month must do ESI registration. 

• Employees Provident Fund registration

The businesses having more than 20 employees must obtain EPF registration. The employees earning less than Rs. 15,000 per month are mandated to be covered under EPF.

The manufacturing flow constitutes all the processes involved in making a finished good beginning with raw material. 

In order to understand the manufacturing/service flow, let’s take an example of potato chips manufacturing.

The food manufacturing industry is a prospering industry. In recent times the food habits and consumption patterns of people are shifting from home-cooked towards processed and packaged food and the production cost is decreasing. In this changing scenario, this industry ensures very profitable and quick growth. The food processing sector in India is one of the largest in the world. Its output is expected to reach $535 billion by 2025-26. This is an outstanding time to start a food manufacturing business. 

Corpseed is the one-stop solution for setting up a new industry in India. We facilitate end-to-end solutions starting from company registration to quality management certificates. Our team of Industry veterans catering the in-depth knowledge of this industrial sector provides the best in class consultation to overcome all the compliance burdens and provide hassle-free delivery. 

Our specialists have the technical knowledge and industry-specific experience to understand the challenges that this sector confronts, as well as extensive experience working with important government agencies. Our expertise in liaisoning with government officials helps us to represent our clients whenever required.

FSSAI Basic

If you are into food business with revenue below 12 Lakhs, you must obtain an FSSAI Registration before starting operations. Corpseed can help you to obtain FSSAI registration for your business.

FSSAI State

If you are into food business with revenue above 20 Lakhs, you must obtain an FSSAI License before starting operations. Corpseed can help you to obtain FSSAI state license for your business. Guaranteed satisfaction or your money back.

FSSAI Central

FSSAI Central License PAN India in no time. In case you want to import/export or sell your products on an E-Commerce Website, you must obtain an FSSAI Central License. Team Corpseed will help you to obtain FSSAI central license.

This portion of the site is for informational purposes only. The content is not legal advice. The statements and opinions are the expression of author, not corpseed, and have not been evaluated by corpseed for accuracy, completeness, or changes in the law.

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How to get started with the food processing business?

The food industry is currently on a surge as the Indians love to feast. India generates most of its revenue from agricultural and food production. India is an agrarian economy and is known for manufacturing a wide variety of organic food products and is considered to be the 6th largest country for grocery and food markets. The food processing business in India today has emerged as one of the leading industries.

Food processing business mainly refers to various operations and techniques through which the raw food materials are transformed into food items suitable for cooking consumption and storage. It consists of various processes like the basic preparation of the raw food and then transforming it into a fit for consumption. The food market is currently witnessing a change in its consumption pattern with the growing income of consumers.

Why should you invest in a food processing business?

The main reason you need to invest in food processing is that it ensures quick and profitable growth. If you are thinking about starting a food manufacturing business, then first, you should learn how profitable it can be. India has a huge population, out of which the majority of people belong to the urban middle class. The changing food habits, consumption patterns, low production costs, and food preferences have significantly contributed to the Boom in the food processing industry.

How to start a food processing business?

Starting a food processing business has its benefits as well as challenges. The Indian government has come up with several new policies and schemes for helping out the entrepreneurs in setting up their food processing units. To start a food processing business, you need to have an FSSAI license. However, here are some of the steps that you need to follow to start a food processing business in India:

1. Choose your location - Deciding on the factory location is extremely crucial before you plan to launch it. It is always advisable to look out for a feasible location and has easily accessible resources like raw materials, manpower transportation facilities, electricity sources, and others. An ideal location can only be derived from these factors and the raw material’s availability in a particular location. Also, you must consider the perishable nature of the food items and the duration. These two things must be taken into consideration for maintaining a good and quality product throughout the year.

2. Choose a specific niche - Focus on a specific niche or type of food production. However, this should be something that you are familiar with making. For instance, you can make food seasonings and other organic mixes. So sticking to this particular niche would be profitable for you as you have a prior idea of what type of raw materials and things are required to create seasonings and mixes.

3. Market analysis and research - For starting a food manufacturing business, you need first to understand the market and choose the right product that you can manufacture without any hassle. While selecting the product, you should keep in mind the viability or availability of the product in the market. Research on the industrial and economic outcomes of the current units of food processing. By this, you can determine your competitors, market size, and current trends.

4. Know all about the food business licenses- For initiating a genuine food manufacturing business, you need to know about all the mandatory licenses. Get connected with the State Departments of Public Health and ask the prerequisites for starting a food manufacturing business. You might be required to obtain the food enterprise license, the FSSAI license, and other business permits for running a retail food business.

5. Get funding- Every other business needs proper funding and capital for running its operations. If you don't have enough capital, you can go for crowdfunding or go for a business loan. Also, funds vary as per the nature and size of the business. It is always recommendable to have shareholders and investors who can contribute to your food business’s funding.

6. Choose suppliers - As a restauranteur or a food manufacturing unit owner, you need to work with various suppliers. This would include right from the furnishing of the POS system, kitchen utensils to, of course, food materials. Start with creating the wish list of your suppliers, get connected with them, scope out your long-term and short-term budget, and then choose your partners. Make sure that the suppliers are not charging more as it can minimise your margins. Ensure that you negotiate well. Start looking for wholesalers online or directly visiting the wholesale retailer store, the local farmer markets, and so on. A trusted wholesale supplier can help you provide quality products, thus ensuring a successful food processing business.

7. Hire employees - For starting your food manufacturing business, you would require good manpower. For scaling this business, you need to hire various designations, including cooks, factory workers, cleaners, marketing, sales manager, and HR managers. Ensure that you are hiring the right staff who can manage their job well. Also, you need backup employees in case any of your staff is ill. Hire those candidates who have sufficient experience and a good track record in their field. An efficient team of workers can help you in maintaining your brand image.

8. Advertise your business well - Before you start with your food processing unit, ensure that you are marketing it well. Apart from offline marketing, you can also go for the digital marketing option. Start building a great website that is easy to navigate and has all the key information about your business. Also, announce it on social media as people are constantly exposed to it. By posting relevant news and high-quality photos of your food processing business, you can ace the game of marketing.

Food Processing Business Ideas

If you have low capital or you are a bit tight on your budget, then you can find some cost-effective food processing business ideas that can help you earn a great ROI. Some of them are:

• Biscuits - The biscuit-making business is something that you can initiate on a small-scale basis. Indians love to sip their cup of tea with biscuits or cookies, which is why it is a lucrative market. Many people still prefer freshly baked biscuits from the local bakeries because of their taste and quality.
• Chocolate - Chocolate is also an amazing ingredient used as a raw ingredient in various food items. Thus, a chocolate-making business can also be a profitable one that would fall under your budget. Various other food processing units require raw chocolate for various dessert-making processes.
• Bread production- Bread being a staple food item, always remains in high demand. Fresh quality bread is always in demand in both Suburban and urban areas, and therefore, the bread production business also offers a great business opportunity.
• Flour production - You can also produce various kinds of flour, including wheat flour, whole wheat flour, brown flour, wholemeal flour, etc. The production process is also simple and can be initiated on a small-scale basis with just a few simple machines.

Start with your food manufacturing business today

There are various other food processing business ideas, including fruit juice production, condensed milk, coconut milk powder, cheesecake, cashew nut, groundnut oil, honey, ice cream, jam, lemonade, meat processing, noodles, and several other options. The list is never-ending. However, it is up to you and your budget what type of food processing business idea you want to opt for.

1) How to start your tea manufacturing and marketing business? 2) How to start a pharmaceutical manufacturing company? 3) How to become a business broker & start business broker services? 4) How to Become A Successful SME Owner?

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Q. What kind of food processing business is profitable?

Ans. Food product making that can be started on a small scale and is in great demand can be a profitable business.

Q. Can I start a food business with zero investment?

Ans. Yes, by getting pre-approved loans or through crowdfunding.

Q. Do I need to be qualified enough to get into the food processing business?

Ans. Yes, you need to be at least 10+2 qualified.

Read the best of business ideas, tips for small businesses, the latest update on technology & more by OkCredit.

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How to Start a Food Processing Unit in India?

If you wish to have a business that makes and sells food products, then this article will give you all the answers. However, if you feel overwhelmed, fret not. Contact us at Vakilsearch and we’ll guide you through setting up your own food processing unit.

India is a country that generates most of its revenue through its agrarian economy. India is the sixth-largest country in the food and grocery market and the fifth largest retail market at the global level. Know How Start a Food Processing Unit in India.

The food processing industry in itself is an emerging space and is seen as the potentially leading industry of the near future. In this article, we will show you how to set up your own food processing unit. If you don’t have the manpower, then you may consider reaching out to our team of experts at Vakilsearch, we will guide you in setting up your own unit.

Italy, on April 17, launched its first-ever mega food park project in India involving food processing facilities amid efforts from both sides to further ties between the two nations. This pilot project named “The Mega Food Park” was launched, with the signing of a letter of intent between the ICE office in Mumbai and Fanidhar mega food park, in Gujarat.

Table of Contents

What Is the Concept of a Food Processing Unit?

Food processing units include all the methods and techniques involved in converting a raw material or a combination of raw materials into a consumable product. Food processing units are an integral part of practices such as agriculture, horticulture, plantation, animal husbandry, and fisheries. It also includes other industries that use agricultural inputs for manufacturing edible products. This manufacturing industry has become a site of investment and profits.

The net worth of the processed food industry is estimated to be around ₹1100 crore and it is fast accelerating at a rate of 10-15% per annum. The food processing units comprises nine categories based on the basic raw materials being used.

Importance of Food Processing Units

Food processing is an essential process that ensures we have food throughout the year irrespective of its seasonal nature or easily perishable variety. Mass production of these processed foods can be very profitable unlike those made by an individual. 

Benefits of Investing in India

• In India, this is a prospective industry due to the increased demand by the majority of the urban middle-class population
• Availability of raw materials is abundant
• Change in the consumption patterns
• Comparatively low cost of production 
• Attractive fiscal incentives that make India the best option.

How Do I Start a Food Processing Business in India?

The Indian government has laid down many policies and schemes to help set up food processing units in India and to provide them with financial support to modernise the industry.

In order to start any food-related business, an food & safety licence  is mandatory. There are different types of FSSAI FoSCos licenses available and it varies according to the business type. However, there are certain procedures to be followed in order to legally safeguard the company, such as:

Business Research and Market Analysis

Understanding the market and choosing the product to be manufactured is the most crucial part of starting any business. While choosing the product, the investor must keep in mind the viability of the product in the market. It is also important to research the economic and industrial outcomes of the current food processing industries, which will be useful in determining the market size, competitors and their trends. 

Once the basic market research is done, the business must be structured according to the needs to make it legally stable. There are options such as private limited company , public limited company, partnership firm, Li mited liability partnership , etc. with their own pros and cons.

These choices can be made on the basis of the size of the manufacturing industry and the yearly turnover and other mandatory criteria. It is recommended to seek help from legal professionals who can advise on the types of companies. 

Location of the Factory

Deciding upon the market size is necessary to find a suitable location for the factory. It is advisable to determine a location that has feasible and easily accessible resources such as manpower, raw materials, electricity sources, transportation facilities, etc.

Another important factor to consider is the government provided subsidies and tax exemption in some states of India. An ideal location can be derived by analysing these factors along with the availability of raw materials in a certain location.

The perishable nature of food and duration must be taken into consideration in order to maintain good produce throughout the year.

Business Plan and Strategies:

All the research and analysis made at the beginning must then be streamlined as per the requirements of the processing units.

New policies and strategies must be formulated for the company to generate a blueprint of how the company should function and the future plans must be roughly decided. In the case of food processing units, one needs to bear in mind the future outcomes of the industry and the growing trends too.

Every business needs to be funded for bringing in the materials and maintaining the value chain once the industry grows. The funds also tend to vary according to the size and nature of the industry. So it is important to have shareholders and to find a constant source of funding for the company.

Legal Implications

Once a company is formed, it has to be registered with the relevant authorities before the business is set into motion. The Companies Act 2013 specifies that the companies must be registered by submitting certain documents and requisite forms in order to get themselves registered as a company in India.

The company must also get registered for the various taxes such as PAN, Sales Tax, Excise & Customs Registration, Service Tax, etc. the trademark must also be protected from being claimed by others, so an IPR registration which includes patents, copyrights, etc. is mandatory.

Other acts such as Food Safety and Standards Act, 2006 and the Standard and Weight Measure Act must be followed and various licenses for operating in India, such as trade license, food license, industrial license, etc. is necessary.

Implementation

With all the necessary steps to start a food processing unit ready, it is important to strategically implement all the mandatory requirements. Everything needs to be put into place. The human resources and infrastructure must be regulated and separate divisions of workers must be used to improve the sales and quality of the product.

How much does it cost to set up a food processing unit in India?

The cost of setting up a food processing unit in India varies based on scale, location, and infrastructure. On average, it can range from a few lakhs to crores, covering expenses for equipment, facilities, licenses, and operational costs.

What license is required for food processing in India?

Various licenses are required for food processing in India, including FSSAI registration or license, GST registration, and other specific permits depending on the nature and scale of the business. Complying with regulatory requirements is crucial for a legal and successful operation.

Is the food processing business profitable?

The profitability of a food processing business depends on factors like market demand, product quality, and cost management. With strategic planning, innovation, and adherence to industry standards, food processing businesses can be highly profitable, catering to the growing demand for processed and packaged foods.

What is the budget of the food processing business?

The budget for a food processing business varies widely based on the size and scope of operations. Small-scale ventures may require a few lakhs, while large-scale setups can entail crores of rupees. Budget considerations include equipment, infrastructure, licenses, and working capital.

Which food business is most profitable?

Profitability in the food business depends on market trends and consumer preferences. Currently, businesses focusing on health-conscious and specialty foods, organic products, and innovative snacks tend to be more profitable. Researching market demands and staying updated on trends is essential for identifying lucrative opportunities.

How do I start a small scale food processing industry?

To start a small-scale food processing industry, conduct market research, create a detailed business plan, secure necessary licenses, and identify a suitable location. Acquire essential equipment, establish quality control measures, and focus on marketing. Connecting with industry experts and utilising government schemes for small enterprises can aid in successful establishment.

Read More:-

• How to Start Catering Business?
• Process to Start a Food Manufacturing Business
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• Posted On December 22, 2022
• Posted By By Zarana Mehta
• Articles - Company Law
• How to start a business in India
• How to start Manufacturing business

How to Start a Food Processing Unit in India?

The Indian government has established many policies and initiatives to assist in the establishment of food processing plants in India, as well as to provide financial assistance to modernize the industry. An FSSAI license is required to start any food-related business. Food processing is a promising industry with numerous room for expansion. In this blog, we’ll walk you through an efficient setup approach for a food processing unit, Business structure, Documents needed to register a food processing unit in India, and other related information.

Table of Content

What is the Food Processing Unit?

All of the procedures and techniques involved in transforming a raw material or a mixture of raw materials into a consumable product are included in the food processing Unit. Plantation, horticulture, agriculture, fisheries, and animal husbandry all use food processing facilities. Other industries that employ agricultural inputs to make edible items are included as well. This manufacturing sector has turned into a powerhouse of investment and profit.

How to start a Food Processing Unit?

Market analysis and research.

Before launching a food manufacturing firm, you must first learn about the market and select a product that you can create without difficulty. You should consider the product’s feasibility or the availability in the market while making your choice. Research into the industrial and economic outcomes of today’s food processing systems. You may use market analysis and research to figure out, the size of the market, who your competitors are, and current trends.

Select Supplier

As the owner of a food processing facility, you must collaborate with a variety of vendors. This would encompass everything from the POS system to cooking utensils and, of course, food supplies. Begin by making a list of your suppliers’ wishes, connecting with them, determining your long and short-term budgets, and then selecting your partners. Check to see if the suppliers are charging more, as this could reduce your profit margins. Ensure you are a good negotiator. Begin your search for wholesalers online or by going to a wholesale retailer’s store, a local farmer’s market, which are examples that can help you in selecting suitable suppliers.

Select Location

Before you open your factory, you must first decide where it will be located. It is always a good idea to look for a place that is practicable and has easy access to resources such as raw materials, human resources transportation, electrical sources, among other examples. Only these variables, as well as the availability of raw materials in a particular place, can lead to an optimum site. You should also think about how perishable the food is and how long it will last. These two factors must be considered throughout the year in order to maintain a good and quality product.

Select a Niche

Concentrate on a certain specialization or type of food production. This, however, should be a recipe you are comfortable with. You can produce food spices and other organic combinations, for example. Sticking to this specialty would be advantageous for you because you already know what raw materials and equipment are needed to make spices and mixes.

Hire Employee

If you want to start a food production firm, you will need numerous people. To grow this firm, you will need factory workers, hire cooks, marketing, sales managers, Human Resources managers, and cleaners among other positions. Ensure you hire the correct people who will be able to do a good job. You will also require backup employees if one of your employees becomes unwell. Candidates with relevant expertise and a proven track record in their field should be hired. Maintaining your brand image can be made easier with the support of a capable team.

Benefits of setting up Food Process Business in India

• The supply of raw resources is plentiful.
• India is the ideal option because of its low production costs and attractive fiscal incentives.
• Due to rising demand from the bulk of the urban middle-class population in India, this is a promising business.
• Changes in consumer habits also benefited Food processing Business

Business Structure that can be Registered as a Food Processing unit in India

• One Person Company
• Private Limited Liability
• Sole Proprietorship Firm
• Partnership Firm

If a foreign person wishes to start a business as a Food Processing unit or company in India then he may register his business as an Indian Subsidiary However the answer for “How to start a business in India?” remains the same. So, let us have a look at the process for starting a business.

Flow chart of Food processing unit Registration in India 

With many entities looking to set up business in India, there are a few things to consider when you’re going for registering your business in India. With that in mind, we’re happy to present a few fundamental documents/requirements that are necessary for registering any business in India. Below is the list of documents required to start a business in India.

Documents required to start a Food Processing Unit in India

License and Registration for Food Processing unit in India

The Food Safety and Standards Authority of India requires all food manufacturing companies to get FSSAI registration. In addition to FSSAI registration, a food processing unit can apply for trademark registration if it wants to sell its products under a distinct brand name. If the manufacturer intends to export products, an Import Export Code, or IE Code, will be necessary.

Start-Up India Registration

Now if you are a Start-Up, then you might require some more registrations and licenses, what are they? Let us have a look at the whole list of Registrations and Licenses required for registering a business as a startup in India.

This blog has clearly shown that establishing a new food processing plant in India necessitates a comprehensive and well-defined approach. As a result, business owners must have a thorough awareness of legal consequences in order to ensure that a manufacturing unit’s basis is solid. Before starting a new business, one must deal with a mountain of paperwork and legal ramifications. The EbizFiling specialist can provide you with the necessary patronage to comply with existing bylaws.

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Indian Food Processing Sector: 5 point call to action to tap export potential

Sushma Vasudevan Rachit Mathur Shivam Jain Aparna Bijapurkar

The Indian agricultural industry is a global giant in terms of production – ranking second globally and contributing to almost 10% of the global production. Despite its strong position, however, the country lags in processing and export of processed food products. Further, food processing has enormous socio-economic benefits for India – the GVA per worker in processed foods is about 4 to 4.5x that of agriculture. This, coupled with the increased global demand for processed food products, presents a strong case for the country to invest in this sector. With that context, BCG and FICCI partnered to develop this report for Food World India 2022. This report puts in context the current status of the Indian food processing industry and deep dives into the factors affecting the competitiveness of the industry at a global level such as cost competitiveness, product quality, compliance to standard etc. Finally, the report lays down "A-R-I-S-E" - a 5-point action plan for various stakeholders to appreciate and act upon. The various tenets of the plan range from upgrading the operating model and infrastructure in use, to ensuring proper branding and compliance by the products. By acting on this suggestion, India can unlock the true potential of its processed food export industry and achieve a position of global leadership.

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Sign in to your account, connect with us for any investment related query, intrested in, regulatory framework, an investor can setup operations in india, 1. setting up a manufacturing unit, 2. importing food products and selling it into indian market, 3. exporting food products manufactured in the country.

What kind of license is required for your business?

Registration

Manufactures or sells any article of food himself or a petty retailer, hawker, itinerant vendor or temporary stall holder; or distributes foods including in any religious or social gathering except a caterer.

Such other food businesses including small scale or cottage or such other industries relating to food business or tiny food businesses with an annual turnover not exceeding Rs 12 lakhs and/or whose

Production capacity of food (other than milk and milk products and meat and meat products) does not exceed 100 kg/ltr per day or

Procurement or handling and collection of milk is up to 500 litres of milk per day or

Slaughtering capacity is 2 large animals or 10 small animals or 50 poultry birds per day or less

Documents required while applying for a Registration: -

- Application in Schedule-1

- Address proof (Government documents like Voter ID card)

- Photograph of applicant

Registrations are granted by the Registering Authority who may be Designated Officer/ Food Safety Officer or any official in Panchayat, Municipal Corporation or any other local body or Panchayat in an area, notified by the State Food Safety Commissioner.

Dairy units including milk chilling units equipped to handle or process morethan 50,000 litres of liquid milk/day or 2500 MT of milk solid per annum.

Vegetable oil processing units and units producing vegetable oil by the process of solvent extraction and refineries including oil expeller unit having installed capacity more than 2 MT per day.

All slaughter houses equipped to slaughter more than 50 large animals or 150 or more small animals including sheep and goats or 1000 or more poultry birds per day.

Meat processing units equipped to handle or process more than 500 kg of meat per day or 150 MT per annum.

All food processing units other than mentioned under (I) to (IV) including labellers and repackers having installed capacity more than 2 MT/day except grains, cereals and pulses milling units

100 % Export Oriented Units.

All Importers importing food items including food ingredients and additives for commercial use.

All food business operators manufacturing/ processing/ importing any proprietary food for which NOC has been given by FSSAI.

Registered/ Head office of FBOs operating in two or more states.

Food catering services in establishments and units under Central government Agencies like Railways, Air and airport, Seaport, Defence etc.

Hotels with 5 star and above accreditation.

All E-commerce food businesses.

All grains, cereals and pulses milling units [All other food business operators which are not covered under registration and central licensing are covered under state licensing]

Documents to be enclosed with application for License (to Central / State Licensing Authority):

(The list is only indicative, not mandatory unless mentioned)

- Form-B duly completed and signed (in duplicate) by the proprietor/ partner or the authorised signatory (mandatory for all categories).

- Blueprint/layout plan of the processing unit showing the dimensions in metres/square metres and operation-wise area allocation (mandatory for manufacturing and processing units only).

- List of Directors with full address and contact details (mandatory for companies only)

- Name and List of Equipments and Machinery along with the number, installed capacity and horse power used (mandatory for manufacturing and processing units only).

- Photo ID and address proof issued by Government authority of Proprietor/Partner/Director(s)/Authorized Signatory. (optional).

- List of food categories desired to be manufactured. (In case of manufacturers).

- Authority letter with name and address of responsible person nominated by the manufacturer along with alternative responsible person indicating the powers vested with them viz, assisting the officers in inspections, collection of samples, packing & dispatch. (mandatory for manufacturing and processors).

- Analysis report (Chemical & Bacteriological) of water to be used as ingredient in food from a recognized/ public health laboratory to confirm the portability (mandatory only for manufacturing and processing units only).

- Proof of possession of premises. (Sale deed/ Rent agreement/ Electricity bill, etc.) (optional).

- Partnership Deed/Affidavit/Memorandum & Articles of Association towards the constitution of the firm. (optional).

- Copy of certificate obtained under Coop Act - 1861/Multi State Coop Act - 2002 in case of Cooperatives. (wherever applicable).

- NOC from manufacturer (mandatory for Re-labellers and Re-packers)

- Food Safety Management System plan or certificate (if any).

- Source of milk or procurement plan for milk including location of milk collection centre’s etc. in case of Milk and Milk Products processing units(wherever applicable).

- Source of raw material for meat and meat processing plants. (wherever applicable).

- Pesticide residues report of water in case of units manufacturing packaged drinking water, packaged Mineral water and/or carbonated water from a recognized/ public health

- Recall plan wherever applicable, with details on whom the product is distributed. (Optional).

- NOCs from Municipality or local body. (Optional).

Food products standards laid down by FSSAI needs to be followed for each product category being manufactured and sold in Indian market.

Food License and Registration System (FLRS) is an online platform where investors can apply for license/registration and can track their application during the course of processing. Registration portal - https://foodlicensing.fssai.gov.in/about_flrs.aspx

Process followed for importing food articles in India -

Bill of Entry (BOE) is filed at Customs ICE GATE (https://icegate.gov.in) on Single Window Interface for Facilitating Trade (SWIFT). Risk based sampling called Risk Management System (RMS) is in operation at Customs Single Window Interface for Facilitating Trade (SWIFT)

Risk Management System (RMS) scrutinizes the application and if the FSSAI clearance is required; the BOE is referred to FSSAI on online Food Import Clearance System (FICS)

CHA/Importer needs to be registered on FICS (www.ics.fssai.gov.in)

FSSAI accepts the BOE and may ask for further details from CHA/Importer, if necessary

If all the relevant information is provided, Authorized Officer (A.O) fixes appointment for the inspection of the consignment (only two opportunities are provided to the CHA/Importer to confirm the appointment)

On inspection, if everything is found satisfactory including labelling and packaging requirements of the consignments, the samples are drawn (2 nos batch wise)and if not, Authorised Officer rejects the consignment and issues Non-Conforming Report.

Samples are then sent to FSSAI Notified NABL accredited Laboratory, if sample is found conforming then No Objection Certificate (NOC) is generated and if not conforming, then Non-Conforming Report (NCR) is generated, rejecting the clearance of food consignment/items.

If Importer is not agreed with the finding of the laboratory report, he may apply for retesting of second sample at the referral laboratory. Outcome of test result will determine the fate of consignment. He may present the review application in Form 6 of FSS(Import) Regulations, 2017 to the Review Officer (Director, Imports) along with the required documents at the FSSAI Headquarter

The order passed by the Review Officer can be challenged before the CEO, FSSAI within 15 days whose decision thereon will be final

Documents that may be required for Importing Food into India -

If any investor is importing plant/plant based products, livestock/livestock based products, they have to refer to the sanitary import permit system laid down by the ministry of agriculture & farmers' welfare:, sanitary import permits.

Directorate of Plant Protection, Quarantine & Storage, Ministry of Agriculture & Farmers Welfare looks after issues related to plant quarantine

Objective is inspection of imported agricultural commodities for preventing the introduction of exotic pests and diseases into India

The Directorate of Plant protection, Quarantine & Storage provides import permit for planting material based on a certificate from Designated Inspection Authorities of the concerned jurisdiction for import of new commodities

Pest Risk Analysis is mandatory and should be submitted to the Plant Protection Adviser to the Govt. of India

A total of 60 entry points including 34 seaports, 12 airports and 14 land custom stations are notified points of entry for import of plants and plant material. Besides, 60 Inland Container Depot/ Container Freight Station,11 Foreign Post Offices have also been notified for the entry of plants /plant material

Application is submitted through the single window clearance system SWIFT, and customs authorities route the documents to Plant Quarantine for necessary processing at their end

Import permit is generally issued for 6 months after conducting a detailed import risk analysis

List of Processed Items (Plant Products) which does not require Plant Quarantine clearance

Standard Operating Procedures for Phytosanitary Inspection and Plant Quarantine Clearance of Plants/ Plant Products & other Regulated Articles can be referred to at: https://plantquarantineindia.nic.in/PQISPub/pdffiles/SOPimpfinal25.pdf

Animal quarantine is under the purview of Ministry of Agriculture, Department of Animal Husbandry Dairying and Fisheries

Under the scheme of Animal Quarantine & Certification Services, Animal Quarantine stations are set across the country in New Delhi, Mumbai, Kolkata, Chennai, Hyderabad, and Bangalore to provide facility of Animal Quarantine and Certification services

The consignments containing livestock and their products are referred by the customs for Animal Quarantine Clearance in compliance to import Quarantine health rules of the Government of India. The consignments are examined along with the accompanied health certificates and other relevant papers before allowing entry into India, to prevent the entry of any Exotic Livestock Diseases

Livestock products are categorized under Open General License (OGL) as per EXIM Policy

In India the import of livestock products are allowed subject to Sanitary Import Permits(SIPs) as per the provisions of Live-stock Importation Act.,1898. It is a certificate certifying India's sanitary requirements of all live-stock products:

• Meat and products of all kinds of including fresh, chilled and frozen meat, tissue or poultry, pig, sheep, goat
• Egg and egg power
• Milk and milk products
• Bovine, caprine embryos, ova or semen; and
• Pet food products of animal origin

Imports of animal and animal products are only allowed through designated seaports/airports of Bangalore, Chennai, Delhi, Hyderabad, Kolkata, and Mumbai where animal quarantine and certification services are available.

Imports of fish products are allowed through the seaport of Vishakhapatnam (in the State of Andhra Pradesh), Sea and airport of Kochi and the Land Custom Station at Petra pole(for imports from Bangladesh only)

Standard Operating Procedures for Animal quarantine & certification services can be referred to at: http://www.aqcsindia.gov.in/sops.html

Application for Import/Export of Pet Animals, Aquatic/Other Animals, Birds & Poultry (Chicks): http://www.aqcsindia.gov.in/pdf/livestock1.pdf

Application for Issue of Zoo Sanitary Certificate for Import/Export of Livestock Products: http://www.aqcsindia.gov.in/pdf/livestock-products1.pdf

Every person exporting any one or more of the Scheduled products shall, before the expiration of one month from the date on which he undertakes such export or before the expiration of three months from the date of coming into force of this section, whichever is later, apply to Authority to be registered as an exporter of the Scheduled product or Scheduled products.

Registration Procedure with APEDA:

Application form duly filled and signed by authorized signatory.

Self certified copy of Import-Export code issued by D.G.F.T.

List of Directors/Partners/Proprietor on company’s letterhead in triplicate.

Pvt. Ltd./Public Ltd. Co.’s/societies should forward a copy of their Memorandum and Article of Association and Partnership firms should forward a copy of partnership deed attested by notary.

Self certified copy of PAN issued by Income Tax Department.

The company should compulsorily mention their e-mail ID, phone and fax number etc. in their application.

In case the exporter desires to register as Manufacturer Exporter, he should furnish the copy of company’s registration with FFO, Directorate of Industries, State Dept. of Horticulture/Agmark/EIA etc.

Bank certificate duly signed by the Authorities.

Cash or DD/Pay Order of Rs. 5000/- towards registration may be made in favor of APEDA payable to Specific APEDA office where the request has been made for Seeking RCMC.

Registration portal

https://itrack.apeda.gov.in/onlineregistration/apedaonline.aspx

AGMARK is a certification mark for agricultural produce, assuring that they conform to a grade standard notified by Directorate of Marketing & Inspection (DMI), Department of Agriculture, Cooperation and Farmers Welfare, Ministry of Agriculture & Farmers Welfare under Agricultural Produce (Grading Marking) Act, 1937

These standards differentiate between quality and 2-3 grades are prescribed for each commodity

Till date, grade standards for 222 agricultural commodities have been notified. These include fruits, Vegetables, cereals, pulses, oilseeds, vegetable oils, ghee, spices, honey, creamery butter, wheat, atta, besan.

Food Safety and Standards(Prohibition and Restriction on Sale)Regulations 2011 have prescribed mandatory certification under AGMARK for certain products viz. Blended Edible Vegetable Oil, Fat Spread

In case of Til Oil, CarbiaCallosa, Honey dew, Tea and Ghee FSSAI has prescribed few conditional restrictions

The certification scheme is implemented through 11Regional Offices, 26 SubOffices, 11 Regional Agmark Laboratories and Central Agmark Laboratory (Apex laboratory) of the Directorate

Application forms for AGMARK can be viewed at the following link:

For detailed information refer to: https://dmi.gov.in/GradesStandard.aspx

Bureau of Indian Standards

Operates product certification schemes by which it grants licenses to manufacturers covering practically every industrial discipline from agriculture and textiles to electronics

It is functioning under the administrative control of Ministry of Consumer Affairs, Food & Public Distribution

The certification allows the licensees to use the popular ISI mark, which has become synonymous with quality products for the Indian and neighbouring markets for over 55 years

The Food Safety and Standards (Prohibition and Restriction on Sales) Regulations, 2011 has prescribed mandatory certification under the BIS Act for the following products:

• Infant formula (IS14433)
• Milk cereal based weaning food (IS1656)
• Processed cereal based weaning food (IS11536)
• Follow up formula(IS15757)
• Packaged drinking water(IS14543)
• Packaged mineral water(IS13428)
• Milk Powder(IS1165)
• Skimmed Milk Powder(IS13334)
• Partly Skimmed Milk Powder(IS14542)
• Condensed Milk, Partly Skimmed and Skimmed Condensed Milk(IS1166)

For detailed information refer to: https://bis.gov.in/

Food Safety and Standards Authority of India

Established under the Food Safety and Standards Act 2006, Food Safety and Standards Authority of India (FSSAI) is an autonomous body established under the Ministry of Health and Family Welfare, Government of India. Operating by the guidelines set across by the FSSA 2006, FSSAI is the responsible authority that safeguards public health through the regulation and supervision of food safety. FSSAI has been created for laying down regulatory standards for articles of food and to regulate their manufacture, storage, distribution, sale and import to ensure availability of safe and wholesome food for human consumption.

FSSAI has been mandated by the FSS Act, 2006 for performing the following functions:

Standards and Compliances: Framing of regulations to lay down standards and guidelines with respect to articles of food and specifying an appropriate system of enforcing various standards thus notified

FSMS: Adoption of Good Manufacturing Practices, Good Hygienic Practices, Hazard Analysis and Critical Control Point and other such practices to be followed by Food Business Operators (FBOs) to ensure food safety

Laboratories: Laying down procedures and guidelines for accreditation of laboratories and notification of accredited laboratories

Policy and Advisory Functions: To provide scientific advise and technical support to Central and State Governments in matters of framing policy and rules in areas that have a direct or indirect bearing on food safety and nutrition

Risk Management: Collect and collate data regarding food consumption, incidence and prevalence of biological risks, contaminants in food, residues of various contaminants in foods products, identification of emerging risks and introduction of a rapid alert system

Information Dissemination: Creating an information network across the country so that the public, consumers, Panchayats etc. receive rapid, reliable and objective information about food safety and issues of concern

Capacity Building: Provide training programmes to those involved in or intending to get involved in food businesses

Collaborations and Partnerships: Contribute to the development of international technical standards for food, sanitary and phyto-sanitary standards

Consumer Awareness: Promote general awareness about food safety and standards

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PM FME stands for “Prime Minister Micro Food Processing Enterprises”. PMFME is an all-India Centrally Sponsored Scheme with an outlay of Rs. 10,000 crores for coverage of 2,00,000 enterprises over 5 years from 2020-21 to 2024-25 being implemented by MOFPI.

What Are Micro Enterprises?

A Micro Enterprise is an enterprise where the investment in Plant and Machinery or Equipment is not more than Rs. 1 crore and the Annual Turnover is not more than Rs. 5 crore.

Is There Any Limit Of Credit Subsidy/Grant?

Yes, it would be 35% of the project cost with a maximum ceiling of Rs 10 lacs for an individual beneficiary. For SHG members involved in food processing, seed capital of Rs 40,000/- per member will be distributed as working capital and for the purchase of small tools.

Is There Any Initial Investment Required By The Person For The Scheme?

Yes, the applicant should be willing to contribute 10% of the project cost.

What Is The Process Of Crediting Subsidies?

At the national level, a Nodal bank would be appointed for the disbursement of subsidies to the banks and liaison with the banks

Is There Any Provision Of Special Benefits For SC/ST Applying In The Scheme?

Yes, the specific allocation has been made for Scheduled Caste/ Scheduled Tribe and the North-Eastern region.

When The Subsidy Amount Will Be Credited To My Account?

On sanction of the loan, the Central and State government will transfer the fund to the beneficiary mirror account. The beneficiary needs to pay the EMI on time for the next three years and the unit needs to be operational. Post 3 years, if the loan category is standard, the subsidy amount will be credited to the beneficiary account

I Have Applied For The Benefits Of The Scheme. Can My Son/Daughter/Sprouse Also Apply For The Same As They Are Dealing In ODOP Processing?

No, only one person from one family would be eligible for obtaining financial assistance. The “family” for this purpose would include self, spouse and children.

Can I Avail Of Other Government Schemes With The PMFME Scheme?

Yes, you can avail of other Government schemes with PMFME Scheme

How Branding And Marketing Support Will Be Provided Under This Scheme?

Marketing and branding support would be provided to groups of FPOs/SHGs/Cooperatives under the Scheme following the ODOP approach in the following ways: ✓ Training relating to marketing to be fully funded under the scheme ✓ Developing a common brand and packaging including standardization to participate in common packaging ✓ Marketing tie up with national and regional retail chains and state level institutions ✓ Quality control to ensure product quality meets required standards

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What Is The Duration Of The Scheme?

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Is Any Processing Fees Or Application Fees Will Be Charged?

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10 Innovative Millet Business Plan – A Profitable Agribusiness Idea for Startups in India

Table of Contents

Millet Business Plan – Introduction:

Millets are taking their position on the plate and becoming part of the diet of health-conscious people, not by force but by choice. The demand for millets-based products is increasing in the urban areas and thus creating ample opportunities for new market entrants entrepreneurs. In this blog, I will take you on a millet business plan tour.

The uniqueness of Millets:

• Millets are a superfood and are the powerhouse of rich nutrients packed with energy. It got its reward and is now called as Nutri-Cereals.
• Millets are gluten-free and the trend of the gluten-free market is increasing at a faster rate.
• It contains a good profile of micronutrients.
• It does not contain trans fat.
• It is rich in dietary fiber and resistant starch which works as pre-biotics.
• It is alkaline in nature and contains non-acid-forming properties.
• Millets contain a balanced amino profile. The digestibility of millets can be increased by proper processing and malting.
• Millets are good for farmers as it is suitable for dryland farming and requires less agricultural inputs and can sustain drought
• It is good for the planet as it is a climate-resilient crop.
• It is used in the pharmaceutical industry.

Millets Nutritional and Functional Properties:

Health benefits of millets:.

10 Innovative Millet Business Plan:

1. millet business plan – millet primary processing unit:.

There are nine types of millets grown in India. It is categorized into 2 depending on the presence of the husk layer. Sorghum, Pearl Millet, and Finger Millet does not contain husks and they are called naked grains. The rest 6 millets (Little Millet, Foxtail Millet, Barnyard Millet, Proso Millet, Kodo Millet, and Browntop Millet) requires the removal of the husk to make it suitable for human consumption. It starts with cleaning, grading, and finally removing the husk layer.

For establishing a millet processing unit we require space as per the machines to be installed. To start with we require at least three machines.

• Grader-cum-Aspirator
• Destoner-cum-Aspirator
• Dehuller-cum-Aspirator (Single and Double Stage dehuller)

The cost of establishing this unit varies from 3-5 lakhs to 60-70 lakhs depending upon the capacity of the machines.

If you want to start with a small dehuller, it will cost about Rs.75,000/-. This is the first tabletop dehuller in India developed by DHAN Foundation.

Before Starting this primary processing unit, we need to keep in mind some valuable points:

• Need to do the survey to know the market potential and the availability of raw materials.
• The performance of machines and their efficiency to be checked before purchasing the machines.
• Entrepreneurs must be familiar with the operating of machines or a trained machine operator is required.
• Understanding the millet grains’ shape and sizes .

2. Millets Value Addition:

Value-Addition is the process of taking a raw commodity and changing its form to produce a high-quality end product.

Why Value Addition of Millets is required?

• To meet the taste/preferences of the consumers.
• Reducing post-harvest losses.
• Nutrient enhancement.
• Ready to eat (RTE), ready to Cook (RTC) – Reduces the cooking time.
• Enhance shelf life and make the product available for a long time.
• Diversified Millet products can solve our food needs as climate changes.
• Improving the consumption of millet products can help to overcome malnutrition.
• Millet farmers will have more post-harvest technologies thus enhancing the economic value of millet as well as improving the status of farmers.

Ready-to-eat millet products like Millet Vermicelli, Pasta, Flakes, and Puffs are emerging products and becoming more familiar in households today. I got an opportunity to visit the Indian Institute of Millet Research, Hyderabad, and witnessed the making of Millet Pasta. Let us see the video, how the millet pasta is made and what are machines required for making pasta. In the same machine, we can also make millet vermicelli by changing the dice.

Indian Institute of Food Processing Technology , Tamil Nadu has developed some amazing innovative millet-based products. You can go through the IIFPT website for more Millet Business Plans.

• Edible Millet Film – It is flexible, transparent, and eco-friendly having good anti-oxidants and antimicrobial properties. It can be cooked by steaming, baking, and frying.
• Non-dairy millet ice cream
• Millet Milk Powder
• Millet Moringa Pasta

3. Millet Business Plan for Millet Seed Entrepreneurs :

As the demand for millets is increasing and there is also demand from the farmers side for good quality millet seeds. In India, we have a good presence of quality seeds of Sorghum and Pearl Millet. But there is ample scope for minor millets.

Good quality minor millets seeds will definitely increase the production and productivity of millets. Farmers can also join in Government Seed Production Programme for producing quality seeds. There is a huge potential business in the seed sector.

4. Millet Business Plan for Millets Aggregators:

Aggregating millets in the warehouse for supermarkets and the food industry is another millet business plan. Large quantities of millets can be purchased and kept in the warehouse and can fulfill the needs of the food industry when needed. The specialty of millet grains is that they can be stored for years together with husk by following the storage safety principles.

There is always a problem at the farmers’ level for proper storage of millets grains. Farmers prefer to sell their produces just after harvesting. This opportunity can be captured by procuring the millets from the farmers and can be kept in big warehouses.

5. Millet Business Plan – Millets packaging for Supermarkets and the Retail Industry:

Processed millets can be packed and can be supplied to retail and supermarkets. This is the millet business plan for B2B. Nowadays retailers are dedicating separate aisles and shelves for millet-based products. Putting products on display is generating more sales and ultimately more revenue.

The millet products can be packed as per the requirement of the clients.

6. Millet Business Plan for Bakery Industry(Biscuits and Cakes):

Today, when we see biscuits in the market that are mostly made of refined cereals(maida) but when they are made with millets, will be a healthy choice. For establishing a millet bakery unit, you require these three machines:

• Planetary Mixer
• Cookies cutting machines
• Rotary Convection Oven

If you are interested in this millet bakery unit, you can go through this blog on ”Millet Biscuits Making for Entrepreneurs” .

People are becoming health conscious and when it’s time for a birthday celebration, they are preferring cakes made of Millets. You might hear of Mumbai-based Chef Natasha Gandhi, founder of House of Millets, she makes beautiful cakes with Millets that are healthy, gluten-free, vegan, and free from refined sugar. She delivers all over Mumbai.

7. Millet Business Plan for Millet-based Hotel Industry:

It’s a very happy moment to see Hotels and Restaurants planning Millet-based tiffins and meals in most of the cities in India like Bangalore, Hyderabad, Visakhapatnam, Chennai, and many more. One such inspiring story of Chittem Sudheer of Visakhapatnam started his startup with only Rs.50,000/-. He makes healthy and yummy idlis wrapped in Vistharaku leaves.

He created a food sensation among the people. For the complete story of Chittem, you can read this – Vizag Man’s Leaf Millet Idlis make his startup a Food Sensation .

8. Millet Business Plan for Export Industry:

India is the largest producer of millets and there is ample demand for millets in the international markets. The potential export markets for Indian Millets in 2020 were Indonesia, Austria, Netherlands, Phillippines,, and New Zealand.

India’s export of Millets was 24.5 million dollars in 2017-18, 25.76 million dollars in 2018-19, and 21.05 million dollars in 2019-20(April to December)

According to a report- The North America Millets Market was valued at US$ 841.87 million in 2018 and is expected to grow at a CAGR of 4.0% during 2019-2027 to reach US$ 1,192.24 million by 2027.

APEDA is taking initiative to the export millets from our country. Recently, Ragi and Barnyard Millet from Uttarakhand were exported to Denmark, creating export opportunities in European countries.

9. Millet Business Plan for Farmer Producer Organisation(FPO):

Creating FPOs will successfully deal with the constraints and challenges faced by the farmers. It will give strength and bargaining power to access financial and non-financial inputs, services, and technologies. This will help farmers in generating more revenue from the collective sale of millet grains.

Under Odisha Millet Mission, FPOs are created at the block level and are involved in the procurement of Ragi for PDS and ICDS.

For this, you can get a lot of support from the Government.

10. Millet Business Plan – Creating e-Commerce Online platform on Millet Products:

Now, people are preferring online platforms to buy their household items including groceries. Online sales are increasing at a faster rate in India. Creating an e-Commerce platform for millet products will create more business as it will reach large customers.

You just need to build a good website and add all ranges of millet products.

Conclusion:

Millets have huge business potential and it is going to grow at a faster rate. You need to capture the opportunity at the right time. Hope you liked the millet business plan tour and definitely must be thinking to start your millet startup.

Please give your valuable feedback and suggestions in the comment section below and don’t forget to tick the ”Notify me of new posts by email” so that you never miss my future posts.

Author:  Tapas Chandra Roy, A Certified Farm Advisor on Millets, ‘Promoting Millets from Farm to Plate’ and an Author of the book -”  Millet Business Ideas-Empowering Millet Startups ”. In a mission to take the forgotten grains- Millets to Millions. To remain updated on my blogs on Millets please subscribe to my newsletter and for any queries please feel free to write to  [email protected]

26 thoughts on “10 Innovative Millet Business Plan – A Profitable Agribusiness Idea for Startups in India”

Thank you soooomuch sir, for giving, sharing millet business ideas, planning, suggestions.it is Such a valuable Advice.thank you sir.

You are most welcome. It’s my pleasure.

Thank you for this valuable article.

• Pingback: How to make Healthy Millet Cookies with Jaggery at Home - Millet Advisor

Well narrated about millet. Lets aim to make millet based micro food processing units in malkangiri district.

Thank you, Sir, Sure we will be doing it.

Very useful post Sir. It explored various business opportunities in Millets.

• Pingback: How Millet Startup in Odisha working to bring Change in Farmer Community - Millet Advisor

Excellent presentation on all about millets it’s benifits & value chain You will be glad to know Odisha’s premiere Sweet outlets ” Bikali Kar” is also selling Ragi Rasagolla

I have collected very imp knowledge and information about Millets..

Thank you the information is very useful i would love to know more about processing pearl millets and finger millets

Need to do a startup with Pearl millets, Me from Uttarakhand- Ranikhet, eec Ur suggestion DM @9816631122 WhatsApp

Very useful article, Thanks a lot team.

Thank you so much for the neat explanation of millet and its health benefit’s.

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Thank u very much more information in millets business idea

Excellent presentation

hello Sir Thank you for the inhand information on millet

i am starting my export business and millet (sorgham, pearl millet , Ragi are my product kindly help me for understanding the processing of raw millet and where can i find it

Thank You Sir for such valuable information.

बहुत-बहुत धन्यवाद

मैं मिलेगी संबंधित व्यापार करना चाहता हूं पैकिंग के संदर्भ में कृपया मुझे उरी जानकारी दीजिए9827047910

Thank you sir ….very crisp and insightful information ….

• Pingback: 10 Innovative Millet Business Plan – A Profitable Agribusiness Idea for Startups in India. - Tree Of Life Centre Foundation

Very good information about millet business.

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