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Legal and Statutory Compliance Required to Start Beverage Manufacturing Company in India


Introduction: Beverage Manufacturing Company

Do you remember the chilly summer days when a mere sip of Coca-Cola after a cricket match used to feel like heaven? Or the serving of tea on the arrival of relatives and the excitement of getting one cup for yourself? If the answer is ‘Yes,’ you’d also agree that beverages have always been one of the most sought-after items in our country and this is the reason we see businesses today massively investing in their manufacturing industry. To put this in figures, as per the studies of Goldstein Market Intelligence, the beverage industry of India is expected to grow at an impressive compounded annual growth rate of 16.2 percent till 2030, and not just that, seeing the current trends, it’s also possible that by the end of this decade, the market size valuation of the beverage industry of India will touch a whopping sum of USD 150 billion. All these indicate nothing but one thing and that is the present and future of the beverage industry is always evergreen in India and investing in it can reap good profit margins. Here, someone might ask ‘Okay, we agree. But how to start it and what are the compliances that are required for it?’ Well, no need to worry as we have got you covered. This article has everything that can help you start a beverage manufacturing company, alongside complying with the mandatory compliances.

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Tips to Start a Beverage Manufacturing Company in India

  • Secure Investment

Setting up a beverage manufacturing company may take a lot of capital as per the scope of its operations. Therefore, it’s best if you first work towards arranging the required finance because making any other plans would only lead to fruitless results in the lack of the basic need of a business, which is ‘sufficient capital.’ You can present your business idea to any potential investors and secure funding through them or another viable way is to approach banks for loans.

  • Understand the Needs of Today’s Market

Just like any other business, setting up a beverage manufacturing business also requires an entrepreneur to first understand what customers are looking for and the trends prevalent in the market. This can help him identify the perfect niche for his product segment. By going through the current market trends and their proper analysis, he can make strategies accordingly to fulfill them.

  • Keep a Competitive Selling Price

Apart from ensuring the good quality of your beverage, you also have to keep their selling prices competitive enough to get an edge over your competitors. Here, you can first analyze all the expenses that are going into making your beverage product and then check the selling prices that are common in the market. These will help you calculate a fixed selling price for your beverage product that would ensure good sales and margins for the business. 

  • Attractive Packaging Strategy

There’s a famous saying ‘Customers buy what they see’ and this is more true than ever for the beverage industry. Therefore, you make sure that your beverage products are packed in such manners that not only comply with the required safety standards but also appeal to the targeted customers and urge them to get it. Effective packaging can help you attract new customers and strengthen your brand positioning. 

  • Business Plan

Another major factor that can help you establish a successful beverage manufacturing company is a foolproof business plan. From the objectives of your business and the methods for attaining them to their targeted time frame, you can mention everything in a business plan. This will help you in two ways, first, it will keep your business activities always on the right track and second, it will help you present your business to potential investors in a better manner for securing funding. 

  • Devise Marketing Strategies

There’s no point in going through all these effort-taking tasks if you fail to make the relevant audience aware of your products, especially when there is cutthroat competition in the market. Therefore to get success for your beverage manufacturing company, devise a marketing plan that can lead to a unique brand identity and high customer loyalty. If you’re confused about where to start, then social media platforms for marketing activities always remain the top choice.

Compliances Required to Start Beverage Manufacturing Company

  • Company Registration

Company registration, also known as Business registration, is the very first task you need to do to start a beverage manufacturing company in India. The setting up of a beverage manufacturing company takes place under the cover of artificial legal entities, such as a limited liability partnership or a corporation.

  • GST Registration

GST Registration is a must for every business entity, whose yearly turnover crosses the limits prescribed under the regulatory frameworks, which is Rs. 20 lakhs for the special category states and Rs. 40 lakhs for the normal category states.

  • FSSAI License

FSSAI License is mandatory for every business operator, who indulges in the production, distribution, or trading of beverages for public consumption. Issued by the Food Safety and Standards Authority of India, it acts as a permit to do beverage business anywhere in the country. 

There are three types of licenses issued by FSSAI

  1. FSSAI Central License: For food business operators with a yearly turnover of over Rs. 20 crores.
  2. FSSAI State License: For food business operators with a yearly turnover of between Rs. 12 lakhs to Rs. 20 crores.
  3. FSSAI Basic Registration: For food business operators with a yearly turnover of up to Rs. 12 lakhs.
  • Pollution NOC Certificates (CTE/CTO)

The beverage industry is considered a polluting industry by the Central Pollution Control Board of India, therefore, every business involved in it is obliged to obtain pollution clearances from the relevant government authority, which is the State Pollution Control Board in this case. Under the pollution NOC certificates, there are two types of consents - CTE and CTO. Before establishing businesses, it is necessary on the part of their owners to get CTE (Consent to Establish). And after that, they need to obtain CTO (Consent To Operate) to ensure they are operating in compliance with the mandatory standards

  • Employee Provident Fund (EPF) Registration

Under the Employees Provident Fund & Miscellaneous Provisions Act, of 1952, the Indian government has mandated EPF registration for all manufacturing establishments employing twenty or more people. The purpose behind this is to help employees save a fraction of their salaries every month.

  • Employees' State Insurance (ESI) Registration

Businesses employing ten or more people are mandated to obtain ESI registration. It aims for financial assistance to the employees in the form of compensation for the loss of his/ her wages during the period of their abstention from work due to sickness, maternity, and employment injury.

  • Drug And Pharmaceutical License

If a food business operator is involved in the production of drinks that contain caffeine, then it becomes necessary for it to obtain approval from the Food and Drug Department regarding the limit of caffeine used in the produced drinks.


Given the hot climate of India and its food and drinking culture, starting a beverage manufacturing company can prove to be quite beneficial for you and we hope that reading this article will contribute to your entrepreneurship journey. If you’re worried about the compliances, then communicating with the experts of Corpseed ITES is a viable idea. Being one of India’s leading business consulting firms, Corpseed ITES can help you make your first move to a successful beverage company.

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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