Candy Manufacturing Project Report, Plan

Introduction to Candy Manufacturing Project Report, Business Plan: When you think about starting your candy-making business then you will have several questions in mind about the process, machinery, market, and location. In this article, we have explained some of the essential aspects of the candy business.

A guide to Candy Manufacturing Project Report, Manufacturing Process of Candy, Making Business Plan in India

Candy-making can be initiated with low capital but will get good returns if planned appropriately. The candy-making venture is simple and can be taken take without any trouble. The demand for quality candies is there because they are consumed not only by kids but the adults too love to have them.

Hard candy
Hard candy (Image credit: pixabay)

Business plan for starting Candy Manufacturing Business

For starting Candy Manufacturing Business, you need to craft a business plan by considering the following points: 

  • Market potential
  • Basis and presumptions
  • Implementation schedule
  • List of approvals required
  • Raw materials required
  • List of machinery and equipment
  • Manufacturing process
  • Project economics
  • Profitability

Market potential of Candy Manufacturing Business

Firstly, you should thoroughly research the market and try to recognize the coolest and most selling candies in your locality or region. Once you get that information about most selling candy in your province and then you can plan easily. Plan to get a similar type of candies that having high demand presently or think about an idea and varied flavored candy.

Basis and presumptions of Candy Manufacturing Business

The Candy Manufacturing Project Profile relies on the following assessments:

  • Working hours/shift: 8 hrs.
  • No. of shift/day:1
  • Working days: 300
  • Labor expenses: as per the State Government’s Minimum Wages Act.
  • Rate of interest: 15% per annum
  • Costs of machinery and equipment: Taken based on A particular dealer
  • Value of raw material: As per local market Packing material/others rate (on wholesale rate)
  • Land: owned
  • Building Construction
  • Break-even point will be estimated on a full capacity utilization basis
  • Pay-back time is 5 – 7 years

Implementation schedule of Candy Manufacturing Business

The project implementation schedule of Candy Manufacturing Business

  • Project preparation: 0-1 month
  • Location selection, acquisition of 1-2 months land and land development
  • Loan Sanction: 1-3 months
  • Building construction: 3-4 months
  • Connection of electric supply and water: 4-5 months
  • Obtaining machinery: 5-6 months
  • Electrification & installation:  6-7 months
  • Recruitment of staff and workers: 7-8 months
  • Trial run can be initiated in 8-10 months
  • Commercial production could start from 10-11 months

List of approvals and permits required to start Candy Manufacturing Business

The next step to start Candy Manufacturing Business in India is acquiring the below list of licenses, permissions, and registrations –

  • Register your business identity
  • MSME registration
  • GST registration
  • ROC
  • Get the PAN Card
  • Registration of firm
  • Shop Act License
  • FSSAI License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate from pollution board
  • Trade license from local municipal authority

Skills required for starting Candy Manufacturing Business

We recommend you to get some crash course on candy-making. If you plan to manufacture candies then it’s essential to get training from specialists in their workshop. They will also provide the help you ain knowledge on how to make appealing candies without any troubles. To complete the ongoing competition in the candy market it is essential to have a unique candy. There are so many candies currently seen in the market. Few of them are buttery candies, tangy and sweet candies, and others.

Area required for starting Candy Manufacturing Business Unit

To establish a Candy Manufacturing business, you must identify someplace. Firstly, you must arrange the candy-making machines and install them in that location and also take care you have the place to store the raw materials and end product. Apart from that check the facilities of transporting the raw materials to the unit and packed end products to the market.

Materials required for starting Candy Manufacturing Business

It is very important to have a power connection. While beginning the candy business, you must comprise a candy thermometer and various types of candy-making molds. Also, you should contact the local suppliers to get the raw materials such as different flavors, sugar, etc. The vital feature is the wrapping of your candy. You must often plan how you get an attractive packaging of your candy.

The machinery required for starting Candy Manufacturing Business

In the beginning, one can start this candy-making business from home as well on small scale but on a commercial scale, you have to spend more money. Several candy-making machines can be bought from online platforms. We suggest you choose machines prudently and also check out the guarantee period, the installation or demo provision, and service options.

The manufacturing process of Candy

In case if you miss this: Paper Bag Manufacturing Project Report.

The manufacturing process of Candy
The manufacturing process of Candy (Image credit: pixabay)

There are several exciting technologies available for candy manufacturing along with various types of candy manufacturing machinery. We can get complete machinery that is integrated with various processing lines as well as individual machines for each step involved in the candy manufacturing process. Some particular examples of the machinery involved in manufacturing are:

  • Candy Mixing and Cooking
  • Candy Molding
  • Candy Aerating
  • Candy Stamping
  • Candy Cooling
  • Candy Coating
  • Candy Drawing
  • Automatic Decorators
  • Integrated Candy Manufacturing Solutions
  • Candy Wrapping and Packaging
  • Candy Quality Control Equipment

Candy Manufacturing machinery must have to be approved and authorized by the government. The technology seen in several modern candy manufacturing machines is highly sophisticated. The machines are mainly automated and regulated by computers with user-friendly touch screen operations. Manufacturing equipment is included with sophisticated sensors mechanism, electronics, and programmable regulators as the current state of the art.

Candy Manufacturing Project Report/ Economics of Candy Manufacturing Business in India

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Economics of Candy Manufacturing
Economics of Candy Manufacturing (Image credit: pixabay)

Fixed Capital

i) Land and Building   

Land Owned

Building 2000 sq. ft. @ Rs.2000 per sq. ft: Rs. 4,00,000

Over Head Tank: Rs. 40,000

Total: Rs. 4,40,000

ii) Machinery and Equipments: Rs. 4,95,000

iii) Pre Operative Expenses: Rs. 25,000

Total Fixed Capital (i+ii+iii): Rs. 9,60,000.

Working Capital

i) Raw Materials: Rs. 7,99,000

ii) Salaries and Wages

Manager cum Food technologist 1: Rs. 20,000

Sales man: Rs. 10,000

Skilled workers-2: Rs. 30,000

Helpers 10 nos: Rs. 50,000

Total: Rs. 1,10,000

iii) Utilities: Rs. 11,300

iv) Other Contingencies: Rs. 13,700

Total working capital (i+ii+iii+iv): Rs. 9,34,000.

Total Capital Investment

a) Fixed Capital: Rs. 9,60,000

b) working Capital: Rs. 9,34,000

Total: Rs. 18,94,000.

Source of Fund

Term loan: Rs. 7,20,000

working Capital Loan: Rs. 7,00,500

Own fund: Rs. 4,73,500

Total: Rs. 18,94,000

Total loan amount required: Rs. 14,20,500.

Cost of production

Total recurring expenditure: Rs. 9,34,000

Depreciation on Building and tank @ 5%: Rs. 1,833

Depreciation on machinery and equipments @ 10%: Rs. 2,917

Depreciation on hand tools @ 15%): Rs. 438

Depreciation on Office equipments @ 20%: Rs. 1,000

Interest on loan (15%): Rs. 17756

Total production cost: Rs. 9,57,944

Say: Rs. 9,58,000.

Profitability in Candy Manufacturing Business

Total sale price of Candies manufactured: Rs. 15,49,000

Profit = Rs. 15,49,000 – Rs. 9,58,000 = Rs. 5,91,000.

Conclusion of Candy Manufacturing Project Report

If you wish to start a profitable business venture, then Candy Manufacturing Business is an excellent opportunity to start with. Yes, obviously there might be huge competitors but people will always support the new taste and healthy items. So, start thinking of an idea to give a variety, healthy and tasty candy that will attract the customers. Always remember that the quality product will attract more customers. Remember that at the initial stages, it takes time to get your brand registered so plan for few marketing strategies and use social media to promote your product. If once it gets registered your product will go in the hype. 


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