Custard Powder Making Business – How To Start

How to Start a Custard Powder Making Business


Do you plan to start a custard powder company from scratch? Or you need a guide to the custard production business? If your answer is positive, then we recommend you to read the entire article.

Custard is a type of food item which is consumed as a dessert across the world and it is easy to produce and prepare. The main component for producing custard is corn; thus it is extremely rich in carbohydrates. The fact that corn is used all over the world makes it easier for people to consume custard. Research has reported that custard production is one of the best practices of businesses to do that could stand the test of time under the food business.

In the hierarchy of human requirements, food has always been the priority. Humans would first seek to solve the problem of hunger before as compared to any other requisites. Custard is a stable food that you are likely to see in the kitchen of an average family in most regions. It is reasonable and it is consumed by both the rich and the poor. Thus, the market for custard is not restricted to a sector of the community.

A step-by-step guide to Custard Powder Making Business in India

Guide to Custard Powder Making Business
Guide to Custard Powder Making Business

If you plan to initiate a business associated with the production of stable food, that would cost you less to initiate, then starting with Custard powder might just be a perfect option. The fact that you can readily get the required raw materials and components (Corn, preservatives, flavors, milk, eggs, et al) needed to produce custard powder, makes it is easier for young businesspersons to venture into it.

The good thing about beginning a custard powder production company is that you can begin it from the comfort of your home with low startup investment if you plan to start on a small scale. Here are ideas to help to know how to start the custard production line.

Business plan for starting a Custard Powder Making Business

Registration, license, and permission required for starting Custard Powder Making Business in India

If you plan to start any food processing and Production Company, you should register the company and acquire the required license before you can be allowed to operate. This is so because most countries follow the proper guidelines which monitor the food industry to evade the production of substandard goods/foods that might be damaging for consumption.

So opening your own custard powder production company needs that you register your company and investigate from the body regulating foods and drugs in your province to get the compulsory license. Make sure you add a catchy name to your company that is generic to the food industry.

Below is the list of licenses required before starting the Custard Powder Making Business in India

  • Registration of firm
  • GST registration
  • Trade license
  • Pollution certificate
  • MSME/SSI registration
  • EPI and ESI registrations
  • Trademark 
  • FSSAI registration
  • IEC code
  • FPO act

Business Entity: The first registration for any business is to register it as a business entity by knowing about the form of the organization. It could be as a sole proprietorship or a partnership or a limited liability partnership or a one-person company. This will help in availing a few benefits to the business and must, therefore, be selected carefully before registering the business at the Registrar’s office.

FSSAI registration: As Custard Powder is classified as the processing of food or food products and thus as per the definition requires an FSSAI registration. Food Safety and Standards Authority of India (FSSAI) is meant for protecting and promoting public health by regulation and supervision of food safety hence FSSAI is a mandatory registration/license for the business. The FSSAI registration process is entirely online and quite easy to follow, once the documents are ready.

Shop Act or Trade License: As the Custard Powder business for example in Maharashtra, India requires applying for a Shop Act License from the local municipal authority to run the business. This license helps manage the working conditions along with working hours, leaves, wages, holidays, etc. of the employees and supports the business to run smoothly.

Udyog Aadhaar Registration: As the Custard Powder is categorized as a small business and hence it must be registered under Udyog Aadhaar which is a registration and recognition for MSMEs- micro, small, and medium enterprises.

GST Registration: Every business, including the Custard Powder, should associate with taxes at some point and for monitoring a single uniform taxation structure, the business should get a common GST number which stands for Goods and Service Tax.

BIS certification: Apart from these registrations the business should get BIS certification as well as tax liabilities.

No Objection Certificate from State Pollution Control Board: Custard Powder doesn’t cause any pollution so no clearance is needed, however, it is recommended to check it with the State Pollution Control Board of the locality where the business is established.

Area or location required for starting Custard Powder Making Business

Inspection of your unit is a step in the screening process you would undergo before you are allowed to get a license to operate. So, if you plan to run on a large set-up and not from your home, you must get a facility that is clean and one that meets the health and safety guidelines of a food processing and production company.

Procedure to start Custard Powder Making Business

The truth is that you may begin on your own residing at your house and later appoint people to work for you if you are starting with a narrow budget. All you need to do is to know the process of mixing the raw material and skill to package and sell it intact.

The good thing about the procedure is that it is easy to acquire, and you could learn it by just searching the “How to Videos” or you read it up in some magazines. But if you have spare time, you may be aware of it from an existing custard powder production business at a fee or join as an intern.

Equipment required for starting a Custard Powder Making Business

For starting the manufacturing, you should have the mentioned amenities and ingredients: Powder Mixing Machine, Weighing Machine, Packaging and Sealing Machine, Drying Machine and Metal Table and Stool. Apart from that, you must be careful to keep the stock of cornflower or maintain the supply whenever needed, preservatives, eggs, concentrated vitamins, and milk supply, etc.

Choosing unique flavors for preparing Custard Powder Making Business

Your selling point mainly depends on the uniqueness of your product. No doubt, if you have done proper market research before initiating, you would know that there are different flavors of Custard powder available in the market. So it is significant if you produce custard with a wide range of flavors to cater to all varieties for your potential target people.

Some of the common flavors of custard which you will see in the market are banana flavor, vanilla flavor, milk flavor et al. But the fact is if, you can figure out with your exclusive and novel flavor that can help you stand special in the market place.

Packaging the prepared Custard Powder

To gain the attention of your customers, you should come out with distinctive and attractive packaging for your product for example custard powder in this case. When planning the package for your custard, you must design for various sizes that would appeal to different people with different budgets. You can select to use both plastic containers and nylon or both types. The bottom line is that once your custard powder is uniquely packed, it will be stress-free for shoppers to spot and pick it from the stocks.

Cost or investment to start Custard Powder Making Business

If you are choosing any small-scale business in Custard Powder production then you must pay for raw materials specifically milk and other things such as packaging material and other things. If you are inaugurating a small-scale business then employees’ remuneration is also essential. The capital for small scale Custard Powder production business is Rs. 2 lakhs. Additionally, on a large-scale basis, the equipment can be around 3.50 lakh rupees. The cost of raw material could be about Rs. 10,000. Therefore, the entire cost could be estimated to 3 – 5 lakh rupees.

For beginning the business, you must plan for the budget. You may charge around 250 to 300 rupees per kilogram in the market. Not only this, but you can also directly contact and have a network with restaurants and hotel industries.

You may be interested in this: Vanilla Cultivation information.

Profit in Custard Powder Making Business in India

Because of the high demand, the profit margin in Custard Powder making business is high. One can gain up to 2000 rupees every day. The profit margin in the Custard Powder production business is much more for wholesale dealers. If you carefully follow the above-mentioned steps you can earn income through Custard Powder production business though you have spent less capital.

In case if you miss this: How To Invest In Share Market.

Marketing strategies to promote your Custard Powder

You must carefully explore the ideal and aggressive marketing strategies if you truly plan to stay steady in this line of business. The fact that anybody can feasibly produce custard powder makes it extremely competitive to sell. So you are anticipated to study the market and then accept the marketing smartness that can aid you to penetrate the required market.

For the start, you can try the door to door selling and road programs to sell your custard powder. Since you are fresh to the market, you are suggested to do a lot of promotional stunts and awareness to achieve market acceptance.

The steps discussed here would aid you to start your own custard powder production business from the scratch. Besides these tips, the hard work will make your brand to be widely accepted and make good earnings on your capital. Therefore, act on the above suggestions and you could break even in a short duration.



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