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How To Start Bakery Products Production Unit In India


We all are fond of cakes and we often cut them on birthdays or any other occasion. Have you ever thought about what if you could open a bakery? Sounds interesting right? Kriti is a corporate worker but she wants to be independent and do something she is really passionate about. When Kirti thought to herself, she analyzed that baking is something that makes her elated. But unfortunately, Kirti doesn’t know how to plan and start her own bakery business.

Let’s help Kirti by being informative and letting her know it all at once. The Indian Bakery is one of the biggest country’s processed food industries in the country. We can divide the bakery into three major categories: Bread, Biscuits, and Cakes. 

  • A bakery business can be an easy start. Either you can rent a place or start with your own place if you got one. 
  • Keeping the demand in consideration, decide what you shall offer on the plate. Items like cream - rolls, cakes, and cookies are very popular.

Do you know which licenses are required to open a bakery Unit?

  1. The foremost and most important is the FSSAI License. FSSAI stands for “ Food Safety and Standards Authority of India. You shall require individual licenses for your delivery staff and vehicles. The application can be either made online or offline. The validity of the license could vary from 1 to 5 years. 
  2. You’ll require guaranteed compliance along with fire safety guidelines. 
  3. Business License and Registration: If your business is working from home, this license is important. This license gives you legal permission to operate a bakery in your city, allowing you to buy and sell. 
  4. Food License: It can be applied online. The cost of getting this license done would be around 5,000 including paperwork and license fee. It is valid from 1 to 5 years. Heavy penalties are issued if one is running without it. 
  5. GST Registration: It can be done with the aid of a Chartered Accountant. 
  6. Fire Department NOC: You can get a fire license with a fee of Rs . 1,000 -2,000 once you are done with the installation of fire extinguisher cylinders. For obtaining this license, you have to submit business plans, a model of the building, and a certificate from the Architect and fill out a questionnaire relating to fire safety rules and regulations. 
  7. Building Health Permit: Building that you are operating in has been inspected. . This is overseen by the state and helps to ensure that businesses selling food to the public meet the safety regulations. Once you get this permit, you can expect periodic inspections. 
  8. Food Service License: It is required by any business, cafe, restaurant or bakery serving food. 
  9. Operational License - Operational License registers your bakery with the country and gives you the right to run your business. 
  10. Health Department: It issues you the permit to verify that you’re baking and serving food under its regulations. To maintain your health permit, submit and pass regular inspections by the health department. Most countries want you to keep your permit in an area where it can be easily seen by customers. 
  11. Water Testing certificate from the pollution control board: It is important to keep a check on adulteration in the products. In order to increase the market value and checking the sustainability of the quality of water before its use is important 
  12. Health Trade License: You can get it with the help of a local municipal health inspector.
  13. Shop and Establishment Act Registration: If you have more than 10 employees, you need to obtain a shop and establishment registration from the respective state labor department.
  14. Eating House License: This license is granted under Municipal Corporation Laws.
    • Any food business operator can obtain a trade license by making an application to the concerned municipality. This is valid for 1 year and is renewed every year.
  15. Liquor License: Alcohol cannot be sold or distributed without a valid liquor license. It is considered illegal and prohibited. In order to obtain the license you shall be needing :
    • Approval from the State Excise to sell and distribute alcohol.
    • To obtain the license, you need identity proof, address proof, NOC from the fire department, municipal corporation
  16. Pollution Clearance: The food business is considered one of the causes of pollution smoking emissions from the cooking process. Therefore a pollution clearance is required to establish the consent to operate from State Pollution Control Board.

Let's see the investment required for the bakery business.

Whenever we start a business, we need two things most importantly; capital and investment.
There are two kinds of capital; one is fixed funds which are essential for purchasing machines and equipment, and the other fund is a working fund.

Here is a list of machinery required for baking

There are a few machines that could be necessary for baking:

  • Wafer biscuit-producing machine
  • Sugar Milling Machine
  • Butter Mixing Machine
  • Sealing Machine
  • Weighing Balance Platform Type
  • Aluminium vessels, mugs, ladles, spoons, etc.

You’ll be amused to know that there are different types of Bakery

You also need to decide which bakery business would you like to go for.

  • Is it going to be a retail bakery or a wholesale bakery?
  • Wholesale Bakery needs a lot of investment in various forms like capital, manpower, equipment and raw material whereas the case of Retail Bakery, requires less capital as compared to the wholesale bakery. 
  • Home Bakery does not require much investment. They can start with a small menu and eventually earn profits and sales. 
  • Speciality Bakery doesn’t consist of much of choices. The orders are made in advance and then delivered to the customers. 
  • Online Bakery doesn’t need rent, sitting space or much labour. The orders are received online and delivered to the respective customer. 
  • For online bakeries, one needs to create a website putting all the images of baked products together.

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Marketing strategies for bakery business

Marketing is the most important step. Your success completely depends on how you market your enterprise. The better the marketing, the better shall be the revenue generated. Proper branding is necessary for the proliferation of your business. Online marketing helps in the best visibility and rise of customers.

  • Create SEO-optimized websites through which customers can place orders. The website needs to be legit and reliable. It needs to be an encrypted website with a safe gateway allowing customers to make online purchases.
  • Make sure you have uploaded attractive photographs for better sales.
  • Make sure that you are promoting your business online. Use platforms like Instagram and Facebook for the promotion of your business. Use clear pictures, and add relevant information and hashtags.
  • You can also start a youtube channel for traffic generation and promotion on your website. There could be videos of you preparing pancakes or any of the items you serve. It shall help in generating better leads.

Price the products logically and make the menu versatile.

  • Make sure your menu is versatile and consists of multiple options. 
  • Make sure you start with items you have hands-on experience and expertise in the same. 
  • Design a menu that is not scattered but rather clear and easy to read.
  • The cost of manufacturing and operation is different from others and therefore must be decided accordingly. 

Recognition in the market is really important 

Research well what may benefit you in the market and what can you target. Find out opportunities for yourself and your brand. Reach out to events and wedding planners, your friends, and your family. Let them know how good are you at your work and most importantly creative. Take feedback from trusted people, gain trust in the market and let your business prosper. 

Benefits of doing bakery business

  • The mall culture and mobilization of people from villages to towns have created the potential for bakery products. 
  • The nutritional value and packaging have drawn the attention of many.
  • Baked goods are evergreen products. It has a promising future as they are readily available. 
  • It is flexible and scalable. You can run it on an online or offline basis 
  • Moreover, it is a scalable and flexible business. 
  • You can even start it on a small scale.


In this article, we talked about the necessary licenses required for the opening of a bakery. Now Kirti knows it all about the bakery business, thanks to corpseed. Kirti knows which licenses would be necessary, the investments needed and marketing for her business. She is all set to go. When everything is planned and arranged, we feel that our work is done. But the real effort comes into existence after this and that is marketing. Planning a marketing strategy is really important if you want your business to succeed. Lastly, make sure that you promote yourself quite well to the market. The people must know your purpose for starting a business and your passion behind it. Just like Kirti, you can also start your own business, contact corpseed to give a start to your business. We shall be really glad to help you in each and every step concerned with licensing your business.

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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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