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How to Start Food Manufacturing Company in India

How_to_Start_Food_Manufacturing_Company_and_business_in_India.png

Overview

Everybody loves food, isn’t it? You love food, I hope I am guessing it right. If more than half of the people love food, I am sure that food businesses must flourish today and will continue further. Do you know that India is in 6th rank for being the world's largest food market? The food industry is an evergreen industry and its requirement is never going down until civilization meets its end. Two things are quite essential and primary when it comes to pursuing this business as a profession. First, you need to satisfy the customers and the other is legal requirements. So let's start Step by Step.

Step-by-step procedure to start a food manufacturing business

  1. It’s time to decide which sort of business you want to go for.
    • Now, it’s time to set up a company in accordance with the specifications of the law. 
    • You have alternatives to choose among a private limited company, partnership firm, limited liability partnership, etc.
    • Once you have decided on the structure of your business, registration needs to be done under relevant laws.
  2. Research the market 
    • You must know your target audience and the market you are getting into. 
    • You must know who are your competitors in the market
    • What are the current trends?
    • How must investment be required?
    • The services provided by you, are they in demand?
    • Are there any hindrances?
  3. Apply for the trademark
    • It is essential to protect your product by trademarking. The market is damn competitive, in such a case it becomes necessary that people identify you.
  4. Take Water Testing and an organic testing certificate
    • Sales are dependent on the quality of your product.
    • For high-quality products, water and ingredients need to be good.
    • There should be food inspections in labs and water testing facilities to test the materials.
    • When packaging, you need to ensure that it neither has chemicals nor microbial pollutants.
  5. Check your nutrition Chart
    • People are becoming more aware of their health. So, it automatically becomes essential for you to create a good product with healthy ingredients. This way, people will automatically be attracted to your product.
  6. Location of your organization
    • The organization's location needs to be far away from the city but close to resources to cut costs.
  7. Decide the business structure
    • Now, it’s time to set up a company in accordance with the specifications of the law. 
    • You have alternatives and you can choose among a private limited company, partnership firm, limited liability partnership, etc.
    • Once you are done deciding the structure of your business, you need to register under relevant laws.
  8. Research the Market
    • You must know your target audience and the market you are getting into.
    • You must know who are your competitors in the market
    • What are the current trends?
    • How much investment is required?
    • Is there a demand for your product or service in current times?
    • Are there any barriers?

Licenses are required to start a food manufacturing company

Once you are done with the previous requirements, you have to start arranging licenses. Let’s find out the licenses required.

  1. Private limited companies or LLPs: Food businesses should be private limited companies or LLPs so that the liability of the promoters is limited and access to bank financing is easy. It is essential for promoters to opt for company registration or LLP registration to start a food manufacturing company.
  2. Intellectual Property Right: If you think that your product is distinctive from others in the market, you can apply for a patent. For brand building, you need to register the brand under Indian Intellectual Property right.
    • FSSAI Registration: It is compulsory to obtain FSSAI registration from the Food Safety and Standards Authority of India. There are majorly three types of registrations under FSSAI
    • Basic Registration: It is required for small businesses or startups having an annual turnover of INR 12 lakh and above.
    • State FSSAI License: It is required for mid-size companies having an annual turnover of 12 to 20 crores.
  3. Central FSSAI License: It is required for large enterprises with an annual turnover of over and above 20 crores.
  4. Trademark Registration: If you want a unique brand name for selling food products, you can obtain trademark registration.
  5. Fire NOC: You require a NOC from Fire Department for your business.
  6. Water Testing Certificate: You also require a water testing certificate from a certified agency as without water food can't be cooked.
  7. Shop and Establishment Act Registration: Another registration required is the Shop and Establishment Act Registration.
  8. Pollution Clearance: You also need to obtain a Pollution Clearance from the respective State Pollution Control Board since the manufacturing industry is considered a polluting industry as per the CPCB and SPCB.  After the licensing is done, you need equipment and staff to run your business.
  9. Equipment, and Machinery: Since the process involves processing raw materials into food items for consumption, equipment, and machinery are essential. Equipment differs according to food manufacturing. Machinery is essential for packaging and labeling, items manufactured. For a business to run, the staff is required. You need to hire designers, cooks, a marketing team, a sales manager, and an HR manager.

We can categorize food under various major heads.

  • Cereals, Pulses, and bean processing
  • Dry fruits and nuts
  • Frozen foods
  • Tinned foods
  • Baked foods
  • Ready-to-cook packages 
  • Snacks and Namkeens

Marketing is the most important element of the entire process.

  • The right marketing strategy will help your business to flourish.
  • Build a website that contains all the essential information so that both suppliers and consumers know your business well.
  • You can even use tools like digital marketing to gain popularity for your business.

There are some ideas on how you can start your business.

Here are various options you can go for.

  1. Bakery: Bakery has a huge market and anybody can start baking. You can either have your own space or rent one. Selecting the right ingredients and the right marketing strategy is a task. You can choose your products depending on the demand in the market and your finances.
  2. Banana Wafer Making: Banana wafers are under-ripe bananas, sliced and dipped in syrup solution, dried under the sun or in the oven. They are then fried and eaten as a snack or dessert. This is a good example of a small-scale business
  3. Biscuit Making: Biscuit making can also be a small-scale business. The best part is, that it can be initiated with less capital as well. There is still a large section of people preferring fresh biscuits from local bakeries because they have a huge variety and moreover they are cheap. 
  4. Bread Production: Good quality bread provides fiber and carbohydrates. They are portable as well as delicious. Fresh quality bread is in demand and moreover the process of making it is also not that difficult. 
  5. Cashew Processing: This is among the highest profit-making food business ideas to be done on a small scale. 
  6. Chocolate Making: The easiest and most fun is this business. It requires nominal investment.
  7. Coconut Oil Manufacturing: It is not only required for cooking but also used for many industrial applications.

Conclusion

Thinking of doing business and turning it into reality are two different things. We think and a lot of ideas pop into our heads but it is essential to research and process the information. We need to figure out which food has a huge demand in the market and how we can make the sales distinctive if we plan on starting it. It is indeed a roller-coaster ride, but a ride you’ll miss is not tried. You must try it, see how things can work out for you, study the market and try something new. Hope the article was helpful. For more queries, you can contact corpseed, Corpseed has all solutions when it comes to licensing and we shall be really glad to help you with the entire process of licensing. 

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
Bhavya Ahuja
I have over 3 years of experience working as a content writer . Currently, I work as a content writer at Corpseed ITES Private Limited, where my job role is providing the best content in the field of lifestyle and entertainment . I'm deeply passionate about creating an impact in the industry with my skills and knowledge

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