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How To Start A Masala Business

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Introduction: Masala Business

We Indians are obsessed with food, and spices play a huge role in our festivals, festivities, and even day-to-day lives. We are divided by states, but "Spices" is one thing that binds us together. Because of its texture, aroma, flavor, and medicinal characteristics, India is recognized as the "house of spices." India is the greatest spice consumer, producer, and exporter in the world. We manufacture over 75 of the 109 kinds recognized by the International Organization for Standardization, accounting for nearly half of allspice trade worldwide. 

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History of Spices

Spices, along with textiles and fragrances, have always been an important part of India's external trade with countries such as Arabia, Sumeria, Mesopotamia, China, and Egypt.

Camel caravans traveled from Calicut, Goa, and the Orient on a regular basis. They even ship these spices to far-flung locations like Carthage, Alexandria, and Rome. Source Spices have a long and illustrious history that can be found in every holy book. The Ramayana can also be found in Roman Empire literature from the first century AD.

Although Indian spices are now widely available, there was a time when people had to risk their lives in order to obtain them. From the perspective of the Indians, it brought in both commerce and conquerors - a century after a century.

Spice exports from India were more than 231 billion rupees in the fiscal year 2019. Between April and October 2018, the top ten spice importers in India were the United States, Vietnam, China, Hong Kong, Thailand, the United Kingdom, the United Arab Emirates, Malaysia, Bangladesh, and Sri Lanka. Mint products, Chili, Spice Oils & Oleoresins, Turmeric, Cumin, Pepper, Curry powders/paste, Cardamom seeds, other spices (Tamarind, Asafetida, and Cassia), and Garlic were the top 10 exported spices and spice products in terms of value. In the 2017-18 fiscal year, total spice exports totaled US$ 3.11 billion.

Spices are consumed in large quantities in Indian households, and the market is developing at a rate of 40000 crore per year. Any individual can establish a business, even a home-based spice production business if there is so much potential in the spice business that promises good returns with cheap investment.

Spice exports from India have seen significant increases in both value and volume. A total of 11,00,250 tonnes of spices and spice products worth Rs.19505.81 crore (US$2805.50 million) were exported from the country in 2018-19, compared to 10,28,060 tonnes worth Rs.17980 in 2017-18, a 7 percent rise in volume, 8 percent in rupee terms, and 6 percent in dollar terms. Source

Costing Involved In Starting Up a Spice Business

The Indian spices market is expected to rise to almost USD 18 billion by 2020, with branded spices and spice mixes expected to lead the way. People are seeking ready-made food, and spice powder makes their cooking more accessible. India is the world's largest spice producer, generating 50 distinct varieties of spices. As a result, the use of spice powder is steadily rising and becoming more futuristic.

Powdered spices are easy to use and save time and work while cooking a variety of delectable dishes. Powder spices are used on a regular basis in every commercial food industry, including hotels, restaurants, catering businesses, and many more.

Spice powder makes it a simple and profitable business to begin, and it can be started with a modest investment.

  • 50000 INR to 100000 INR as a starting point
  • 250 square yards of space is required.
  • Profitability ranges from 50% to 70%.
  • Earnings: Average daily sales of 100 kilograms, with monthly earnings ranging from 50,000 to 150,000.

Equipment upkeep, employee pay, and marketing charges will be among the additional costs.

Registration for Spice Business in India

To begin a spice business in India, you must first obtain Company Incorporation or establish a company according to the method with an appealing name and logo.

Required License

Because spice powder falls within the food category, it must adhere to a number of state government restrictions, including the following:

Firm registration should be done according to the size of the business, whether it is a Pvt. Ltd, a partnership, or one-person corporation.

  • GST registration

If a company is classified as a small or medium-sized enterprise (SME), it can register and receive services and subsidies from the state government.

Required Raw Materials

Unground spices are the most important ingredients in spice powder, and you'll also need packaging materials to secure the spice powder.

  • Methi leaves
  • Chilly
  • Corrugated cartons
  • Cumin
  • Coriander
  • Pepper
  • Mustard
  • Fennel seeds
  • Poppyseed
  • Turmeric
  • Approved food volar and preservative
  • Approved or food-grade packing materials

Implementation of Machine

A grinding machine is a vital piece of equipment in the spice business, depending on the size of the industry. Impact pulverizes are used in large-scale enterprises, while double-stage pulverizes are used in small-scale industries.

Other equipment is needed, such as a

  • Spice grinder,
  • A weighing scale, 
  • A packaging machine, 
  • A compressor, and
  • A roster.

Area Required

When it comes to starting a business with spices, a small amount of space is required; approximately 250 square yards can be utilized for processing pieces and another 250 square yards is required for packing the spices. Look for a commercial location with essential utilities like water, electricity, and so on.

The state government has put restrictions on starting a food company from home, so be sure the location follows the government's rules.

Make sure the location is convenient for the target market in terms of transportation.

Process of Manufacturing Spices

  • Step 1:- Cleaning 

It is the first step in the spice-making process, in which unground spices are cleaned manually by removing impurities such as stone, dust, and dirt.

  • Step 2:- Drying

After cleaning and washing, place them in the sun to dry; the quality of the spice powder will be determined by how well-dried the spices are. If adequate cleaning and washing are not done, bacteria will proliferate and poison the food.

  • Step 3:- Roasting

After the spices have been dried, they are roasted. Roasting the spices is important since it contributes to the scent, color, and flavor of the spice powder.

  • Step 4:- Grinding

Pulverizing spices into powder requires the use of a grinding machine.

  • Step 5:- Grading

Grading is a process that determines the amount and proportion of spices mixed with the raw material used, as well as the type of spices (flavor), their size, shape, density, and color.

  • Step 6:- Sieving

Ensure that the spice powder has a consistent mesh size.

  • Step 6 Packing of Spices

Seasonings and spices offer a lot of flavor to your favorite foods, but they have to be fresh to work, therefore proper packing is essential.

Stand-up pouches with zip locks will protect and preserve your spices and seasonings, and such packing bags will provide you the choice to choose the ideal size, design, and features for your spices. Choose from features such as gas release valves, tear notches, heavy-duty zipper tops, hang holes, pour spouts, and a variety of styles to help you bring your brand to life.

Once the spice has been transformed into powder form, the powder is weighted according to the quantity that has to be packed. After that, the spices are wrapped in a polythene bag and sealed with a sealing machine.

Stand up; pouches will keep your spices safe from moisture, puncture, stink, and other problems. As a result, you may rest assured that your seasonings and spices will make it safely from the warehouse to the taste buds of your consumers.

Where to Sell Spices

  • Online Portal
  • Wholesale
  • Export
  • Local market (Retail)
FSSAI Basic

If you are into food business with revenue below 20 Lakhs, you must obtain an FSSAI Registration before starting operations. Corpseed can help you to obtain FSSAI registration for your business. Money back guarantee. Get free consulting.

Spice Board Registration

The Spices Board is the Indian government regulatory and export promotion agency for Indian spices. Spices Board was constituted in 1987 under with the merger of the erstwhile Cardamom Board (1968) and Spices Export Promotion Council (1960).

Import Export Code

IEC (Import Export Code) license is mandatory certificate to get before starting any business related to import or export of goods from one country to another. Apply for IEC Code to avoid any penalties from port authorities. No Hidden Fees.

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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Author
Suneeta Tikoo
Over 22 years of experience in IT compliances, Pollution Waste management & EPR compliances. Currently working in Corpseed as Operational Head.

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