Introduction: Bakery Products Manufacturing

‘Having tea? Here, take a biscuit with it or Feeling hungry? Let’s make sandwich bread.’ These are the common scenarios that show how many roles bakery products play in our daily lives. Rarely a day goes by when we don’t see or eat them. So, what can be the possible reason for this inclination? Well, for one bakery products are safe to consume if not healthy, and the second is their affordability, which doesn’t burn a hole in anyone’s pocket. If we talk in figures, the market size valuation of bakery products was USD 10.1 billion at the end of 2022 and has been growing since then, especially considering the ongoing recovery of the country from covid pandemic. As per the experts, the bakery market can grow at an impressive compounded annual growth rate of 9.6 percent between 2023 and 2028 to touch a whopping value of USD 17.44 by the forecasted period.

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Today, all these positive trends have attracted lots of entrepreneurs into the bakery industry and made it a lucrative business idea with high profits. In this article, we are going to discuss with you the best tips to consider to start a bakery products manufacturing business and the compliances that must be followed in India.

Strategies for Starting a Bakery Products Manufacturing Business

• Create A Bakery Business Plan

Setting up a bakery products manufacturing business is not as easy as it may seem. Just like many businesses, it also requires prior planning or we should say, an action strategy to ensure every process is going on the right track. Here, analysis of the industry and the marketing trends can help you devise a business plan, which can contain both the short-term and the long-term visions, the methodologies to achieve them, and their related time frames. 

At the same time, going through the businesses of your competitors can also be quite significant as it can tell you about the preferences of customers and the best areas to target.

• Location to set up a manufacturing facility

What would be the best location to pick for setting up a bakery products manufacturing business? The one where the raw materials can be easily acquired and the cost of their transportation does not amount to much, right? These are the reasons we see key players of the bakery industry, be it Britannia, ITC, or Parle, choose to build their manufacturing facilities in partially urban and rural areas. 

• Workforce

Bakery manufacturing goes through a lot of processes, which include mixing, fermentation, proofing, baking, cooling, slicing, and packaging. And, due to this, the demand for laborers both skilled and unskilled is also pretty high in the industry. Therefore, it’s better if you also secure ways to gather a workforce that is efficient and expert and can help your business grow.

• Funding

You may require a good amount of capital to start your bakery manufacturing business as the list of required equipment involved in it can be quite extensive. For instance, it can include planetary mixers, industrial ovens, deep fridges, cooling fridges, and many more. In the absence of this equipment, the risk of bakery products getting rotten can become a headache to running the business efficiently. 

• Marketing and Branding

Nothing matters in business if one fails to make end-consumers aware of its products and this becomes more important for the business of bakery products where customers buy what they see. Therefore, make sure you put equal attention to the marketing and branding strategies for the expansion of your business. You can work on your packaging and make it appealing enough for the customers to grab it. Besides this, you can work on your logo to make it unique and create a website to enhance the authenticity of your bakery products and business. 

Compliances Required for Starting Bakery Products Manufacturing Business

• FSSAI Registration

Every food business operator who indulges in the manufacturing, distribution, and storing of edible products for public consumption must obey the rules and regulations of the Food Safety and Standards Authority of India (FSSAI) and apply for an FSSAI license. There are three types of licenses issued by FSSAI, which are as follows:

1. FSSAI Central License:- Applicable to the food business operations having an annual turnover of over Rs. 20 crores.
2. FSSAI State License:- Applicable to the food business operations having an annual turnover of between Rs. 12 lakhs to Rs. 20 crores. 
3. FSSAI Basic Registration:- Applicable to the food business operations with an annual turnover of up to Rs. 12 lakhs.

• GST (Goods and Services Tax) Registration

Every business entity with a yearly turnover of more than the threshold limits must register under GST and get a unique 15-digit Goods and Services Tax Identification Number (GSTIN). The threshold limit under GST is INR 40 lakh for businesses operating in the normal category states and INR 20 lakh for those operating in the special category states. 

• Health Trade License

A Health Trade license is mandatory for every business entity that indulges in the manufacturing of goods and services that can affect the health of the general public. Issued by the State Municipal Corporations, the relevant business entity, bakery products manufacturing business in this case, must obtain it before commencing the work activities.  

• Fire Safety Clearance

Seeing the rising incidents of fire mishappenings at workplaces, the Indian government has mandated every business to get fire safety clearance from the relevant fire departments. It ensures the placement of all the necessary fire safety measures at the work premises.

Conclusion

Being among the largest segments in India’s food processing industry, the bakery products manufacturing business offers great opportunities for high growth, innovation, and generation of employment for the country’s people. Every business is a game of numbers and in India, whose population is continuously growing alongside the demand for food products, starting a bakery manufacturing business can earn you high margins. If you’re looking for any help with the compliances required for it, don’t hesitate to contact Corpseed, which is India’s leading technology-driven business consultation service provider.

Rereted Blog:

How To Start A Bakery Business in India?

How To Start Bakery Products Production Unit In India