How to start spice manufacturing business in idia idea

by - November 22, 2022

 Spice trade in india 

         It is one of the most popular trades in fact India produces 75 of the 109 spices listed in the world which is about 70% of the total production.

          india is a major producer and exporter of Spices, thus starting a spices business in India is a very profitable business option. Spice powder making business is a type of business that ensures the owner with good returns with low investment. Also, anyone can start this business; even home-based spice business is very profitable.



Spice idea

Spices business scope in India

   All types of spice powders are a must have in all types of Indian cuisine. You will find one or more types of spices as an important ingredient in almost every recipe in India. Spices help in imparting aroma, color and good taste to the food. Common types of spices used in India are turmeric powder, chili powder, coriander powder, cumin powder, etc. and whole spices like cardamom, black pepper, cumin, bay leaf, cinnamon, and many more. So setting up a business in the spice sector is likely to be successful.

      Now, when you have decided to start your business, the first step is to know the profit making scope in that business, the current trends and the demand for the product you are manufacturing. This is the basic stage; Imagine a situation where you are producing a product 'X' and no one buys it, how depressing that situation would be. You don't want to face that kind of situation, do you? Don't worry, I believe these statics will be able to ease your mind and assure you that spice business can become a profitable option for you.

Spices manufacturing sector prospects


   India is the world's largest producer and exporter of spices; Hence it is known as the 'Land of Spices'. As per the data, 5.8 million tonnes of spices are estimated to be exported from India in the year 2012-13, with chilli and garlic being the most exported spices. The United States and China were among the top importers of these spices in terms of value. Additionally, as per the data the value of exports to both the countries was Rs. 2115 crores and Rs. 2019 crore respectively. Today the current market needs are also creating ample opportunities for the spice industry.
In addition, the Government of India constituted the Spices Board in the year 1987 to develop and promote Indian spices[1] in the global markets. Spices Board functions under the Ministry of Commerce and Industry, Government of India. Subsidy is provided to registered spice exporters having Spice House Certificate or Brand Registration with Spice Board or Organic Certificate to send spices abroad.

Steps to start Spice Business in India

   business planning

   Register Your Spices Business

   get license

   set location

   Source raw materials and equipment

   decide on investment

   start your spice business

business planning




Planning is the first step in setting up your business. Therefore, it is important and necessary to bring your idea to life.

An effective business plan requires three things:

  • Research 
  • Study
  • Analysis

 Spice industry, markets and consumer behaviour.

   With this in mind, here are some things to keep in mind while creating a business plan:

  • Business Name
  •  Business Summary
  •  Founder and Director
  •  Investment
  •  Location
  •  Target Niche
  •  Marketing Strategy
  •  Product Uniqueness
  •  List of Products

 Spices List

  • Sambhar Masala
  • Chola Masala
  • Pav-Bhaji Masala
  • Fried Rice Masala
  • Manchurian Masala
  • Chilli Paneer Masala
  • Parantha Masala
  • Curry Masala
  • Chicken Masala
  • Biryani Masala
  • Tandoori Masala
  • Pickle/Aachar Masala
  • Butter Paneer Masala
  • Rajma Masala

 Register your Spice Business

After creating a plan, officially register your spice business.
   You can register your business as any of the following structures:

  • One Person Company
  • Partnership
  • Private Limited Company


 required documents

  • Passport size photograph (scanned copy) of all the directors
  •    pan card copy
  •    Proof of identity of all directors
  •    Proof of residence of all directors (not older than 2 months)
  •    Aadhar card of all directors
  •    Address proof of the company (not older than 2 months)
  •    electricity bill
  •    Telephone/Mobile Bill
  •    Internet / Broadband / Wi-Fi / Fiber Bill ~ Any other Government utility bill

 Licenses

  • FSSAI License
  •    GST Registration
  •    Shop and Establishment Act License
  •    MSME Registration
  •    BIS Certificate (for quality check)
  •    NOC from State Pollution Control Board (in case of powdered spices)
  •    Business License (Regional)
  •    Trademark for your brand (optional but recommended)

 

 Location


The choice of the right location depends on the scale and budget of the business.

You need a recommended area of ​​200 square yards to set up a spice processing unit in India.

     You will need at least around 100-150 square yards to store the packaged products.

Source raw materials and equipment

Raw material is the key to the secret door of spice making business. So, if you get it right, you can open all doors to success.

The quality of the raw material decides the smell, taste and customer credibility on the product.

The machines and equipment required for spice business are:

Grinding Machine

 Blending Machine

 Pulveriser

 Weighing Machine

 Packaging and Box Printing Machine

 Compressor

 Roaster

 Disintegrator

 Sieves

 Next, to pack the spices you need:

Plastic Packets (Sizes: 50gm, 100gm, 150gm, 200gm, 500gm and 1kg)


   cardboard box

   paper packets

 decide on investment

After finding the right location, it is time to get funding and investment for the spice factory project cost.

To start spice business in India, you need a minimum investment of Rs.5 lakh-Rs. would be required. 20 lakhs as initial investment.

But before estimating the investment required, list down your expenses for running the spice business for 2 years. At least, until you start making your presence felt and making profits.

So, I have listed some of the primary expenses in spice business:

Rents

 Machinery

 Raw Materials

 Logistics

 Packaging

 Salary

 Utility Bills

 Furniture

 Office Setup

 Accounting Software

 General Expenses

 After estimating the funding requirement for spice business, here are some sources of finance that can help you:

Friends

 Family

 Savings

 Business Loans

 Angel Investors

 Startup Funding

 SMERGERS

start your spice business

 As soon as all the above tasks are done, do a grand opening and start your spice business operation on a good day.

Read more about: Auspicious Dates 2023

Now moving forward I will tell you about two more aspects of how to start spice business.

   hiring

   marketing Advertising

 Hiring

To start your spice making business, the people you need in the beginning are:

Nutritionist

 Manager

 Accountant

 Labour for operating machines, processing, packaging

 Security Guards

 Sales Person

 Logistics Team

 Drivers

 IT professionals (hire freelancers at the initial stage)

 After that, allocate and delegate tasks to the team.

   Finally, do the puja and start your work.

Marketing & Advertising

Marketing and advertising are two things that can take your spices business to extreme heights if done right.

When packing your products, be sure to choose colors that appeal to customers.

For example, colors like red and yellow awaken the taste buds and attract attention effectively.

   Keeping an eye on these things will also help you establish your business presence faster.

You can advertise through newspapers and hoardings in your area as well as in nearby cities.

     Both of these methods may be old fashioned but are still very effective for attracting the attention of customers.

Also, you can sponsor events on behalf of your business and get recognition through it.

Scope of Masala Business in India

Indian spices are used globally in very impressive quantities. In fact, the spice business industry is growing from Rs. 40,000 crores every year. As a result, it is giving high returns on low investment.

Today the current market demand is creating good opportunities for the spice industry every day. Furthermore, as technology has advanced to a great extent, you can supply worldwide and create a huge market.


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