Overview: Biscuit Manufacturing
Manufacturing facility. It is one of the ideal ventures for you if you enjoy baking and have a strong interest in the food industry. Furthermore, it is a growth-oriented business model with untapped potential. Fundamentally, biscuit production is a subset of the traditional baking business. There are three types of businesses that you can establish in general. For newcomers, starting a home-based business with a small investment is possible. The second is a medium-sized Biscuit manufacturing company that largely sells in the domestic market. Another is a medium-sized operation that sells biscuits over a large distribution network. Both of these models have advantages and disadvantages. However, the second relates to higher profitability and expansion potential.
Table of Contents
- Overview: Biscuit Manufacturing
- What You Need To Start a Biscuit Manufacturing Industry in India
- Prepare the Product Portfolio
- Draft the Comprehensive Business Plan
- How Much Capital Investment Do You Need?
- Incorporate Your Company
- Establish a Manufacturing Facility
- Procure Required Machinery for Biscuit Making Business
- Identify the Viable Sources of Raw Material
- Avail BIS and Food License from Relevant Authority
- Get the Factory License
- Quality Control
- Ensure Standardized Packing and Marking
- Set up a Distribution & Marketing channel
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What You Need To Start a Biscuit Manufacturing Industry in India
The biscuit industry has considerable growth potential and, in the long run, gives greater stability to the business owner. Effective decision-making and well-informed planning on market identification, packaging, and pricing were key to the Biscuit business's success.
In addition, ever-increasing health worries among the general public are effective in the consumer economy via digital media. Make sure you provide a wide range of products at a competitive price when compared to competitors.
Prepare the Product Portfolio
After conducting extensive market research, identify the product that you are willing to sell to clients. Due to a growth in at-home consumption, the Indian biscuit market had a considerable increase in demand during the covid-19 phase. Milk cookies, in particular Marie, are attracting more customers, resulting in a growth rate of over 12% by 2020. Over time, the biscuit market has changed dramatically. In today's Indian market, there are innumerable variations to choose from. Sugar-free, arrowroot, salted, wafer, coconut biscuit, jeera crunch, ginger biscuit, digestive, and others are the most popular. As a result, you must determine what exact form of Biscuit you can create in order to optimise profits. You should also consider the form of the mould while deciding on the size and shape of the Biscuit you want to manufacture. You must also write down the particular recipe as well as the flavour you wish to deliver to the end-users.
Draft the Comprehensive Business Plan
The following stage is to write a workable project report or business plan. If you have some expertise in the business world and are familiar with the details, you can use the software to sketch up the plan. There is a plethora of software on the market that allows for precise financial analysis and cost-profit calculations.
However, if you lack the necessary experience or technical knowledge of the manufacturing process and raw materials, you should hire a field specialist. The technical side of a business plan is what drives the financial aspect. We've included a sample project estimation in this section.
How Much Capital Investment Do You Need?
In terms of expenses, the biscuit and cookie baking industry is pretty flexible. A homemade cookie business can be started for as little as Rs. 6000. You'll only get enough ingredients to make a tiny batch of biscuits or cookies. Purchase an automated biscuit-making machine if you want to take your business to the next level. Each unit costs roughly Rs. 6 lakhs. You'll need to budget roughly Rs. 2,000 to Rs. 3,000 for packaging and marketing in addition to the actual manufacturing procedure. So, for Rs. 10,000, you may start a homemade cookie and biscuit business.
Incorporate Your Company
In order to start a biscuit-making firm, you must first formalize it by forming a corporation. To do so, you must first choose a proper business model (as shown below) and then go through the necessary incorporation process as required by the bylaws.
- LLP (comes under LLP Act, 2008)
- OPC (Governed by Company Act, 2013)
- Private limited company (Governed by Company Act, 2013)
- Partnership Firm (Partnership Act, 1932)
Establish a Manufacturing Facility
The next stage is to establish a production facility. A production facility should, in general, have enough space for storage, production, packaging, and transportation. The size of the production facility is mostly determined by the capacity of the facility. In general, a moderate-sized biscuit manufacturing unit can be set up in a 1500-square-foot space. Determine whether power, potable water, and a transportation facility are available near the production unit.
Procure Required Machinery for Biscuit Making Business
In general, you can build a production facility that is either semi-automatic or fully automated. To run a small-scale unit, a semi-automatic option is appropriate. Furthermore, the specific equipment required is based on the manufacturing method as well as production capacity. The following is a list of typical equipment found on biscuit manufacturing plants.
Identify the Viable Sources of Raw Material
You must secure an uninterrupted supply of wheat flour to the production plant in the commercial biscuit-making industry. Aside from that, you'll need to gather the necessary ingredients, such as sugar, yeast, salt, milk powder, flavor, and edible colors. Furthermore, you must obtain packaging consumables from reputable suppliers. Make sure the packaging is consumer-friendly and includes the FSSAI's recommended food safety information.
Avail BIS and Food License from Relevant Authority
The two most crucial permissions for food production establishments are the BIS and the Food licenses (FSSAI). BIS accreditation is granted following a thorough verification process by BIS officials. To apply for this license, go to the manak web portal and fill out the appropriate e-form along with the necessary papers. Keep in mind that obtaining BIS accreditation is a difficult task for any company. As a result, it is advisable to remain in contact with a field specialist when applying for the position.
Another need for food business entrepreneurs in India is a food license. According to the FSS Act, 2006[1, the FSSAI (aka Food Safety and Standards of India) issues a food license based on qualifying requirements such as yearly turnover, product capacity, and scope of operation.
Read Our Blog: How to Start a Food Business in India
Get the Factory License
A factory license is a legal requirement for any organization that uses particular machinery and personnel to conduct in-house production. According to the Factory Act of 1948, the Chief Inspector of the Labour Commissioner Organization has the authority to provide this license in exchange for a properly completed e-form and attested documentation.
Commence the Operation as Per BIS Guidelines
Once you secure the licenses above, make sure to commence the operation in view of BIS guidelines as mentioned below:
- Refer IS 5059 to maintain hygiene protocols for biscuit manufacturing.
- The baking should be spot on, and Biscuit should bear a uniform texture and appearance
- The design of the Biscuit should be uniform throughout the production lot.
- The biscuits should be free from insect infestation and fungus, rancid taste & odor.
- The biscuits should be free from foreign particles.
In a full-fledged manufacturing unit, quality control and GMP (Good Manufacturing Practice) play a critical part in biscuit production. The makers are required to comply with the BIS specifications. Furthermore, evaluating the production lot prior to packing assures that the Biscuit is of the highest quality. All visitors to the manufacturing facility must be familiar with the underlying hygiene practices.
Ensure Standardized Packing and Marking
BIS has underpinned the following guidelines for the Biscuit making businesses regarding the packing and marking:
- Biscuits shall be packed in clean made of PCRC, tin plate, paper, cardboard, or other material agreed upon between the buyer & the vendor.
- The packaging should be done to protect the production lot from possible contaminations, breakage, and absorption of moisture.
- Isolate the production lot from packaging materials other than sulfite paper, greaseproof, food-grade plastic, and non-toxic plastic material.
- The production lot should not be placed in close proximity to un-lacquered metal walls.
- Biscuit packets weighing 150 grams and higher, a complaint slip manifesting the code number should be attested to the container.
- Biscuit packets should be marked with the details such as product name, trade name, name & address of the production facility, batch number, etc.
Set up a Distribution & Marketing channel
The process of bringing a product in front of the right clients is known as distribution. Trading products and services appear to be amazingly simple and uncomplicated, but it is never. Distribution is a complicated and varied process that requires the right partner and a well-planned approach.
There are several degrees of distribution, including direct and indirect routes. With the addition of middlemen, the levels tend to rise. A zero-level channel involves a manufacturer selling directly to target customers, while a three-level channel includes a distributor and a store.
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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