Introduction to make money from cashew nut processing business
Cashew nut processing business began in the late 60s, which is turn out to be the main producing crop after tea and coffee. The processed cashew nut could be consumed directly or in various forms of food.
Ideas to make money from cashew nut processing business
Cashew is a seasonal fruit, which cannot be consumed in raw form it must be processed before to make it edible. Cashews serve as a source of energy, nutrition, vitamins, and antioxidant which is beneficial for human fitness and it also helps us to defend from a disease like cancer. Cashew nut processing unit can be started at any location by determining the raw material availability.
Today, in this article we are going to explain a money-making business idea and that is small-scale cashew nut processing business. The profit margin in the cashew processing business is high. You can also get trained from cashew processing training centers.
The market potential for cashew nut processing business
The demand for cashew nut is growing day by day, it is one of the significant agricultural property exported from India to overseas counties.
India is a principal country for processing, production, consumer, and exporting of cashew nut. Cashew nut processing businesses in India have the utmost rate of productivity in the world. More than 70% of processed cashew nut is shipped in the world from India. The domestic market also consumes two-thirds of overall production because cashew is a largely consumable item in Indian households. You can also avail of the cashew nut processing subsidy by the government.
Cashew processing business registration and license
While beginning cashew processing in India, you must complete some registration and license procedures. The list of registration and licenses needed to start the cashew manufacturing business is below.
Firm registration: You may begin a small to medium cashew manufacturing business either as a Proprietorship business or as Partnership Firm.
If you are planning this cashew business as One Person Company, then you must register your firm as a proprietorship. For Partnership operation, you should register as a limited liability partnership (LLP) or Private Limited Company with Registrar of Companies (ROC).
GST registration: GST registration will provide the GST number which is compulsory for every business.
Trade license: The trade license can be obtained from the local authorities.
Pollution certificate: The cashew manufacturing industry may generate pollution; so, you must get the pollution control certificate.
Udyog Aadhar, MSME/SSI registration: Cashew manufacturing is a mechanical based industry if you plan to register your business with MSME/SSI registration it could help avail government subsidies and facilities.
License from boiler inspector: It is mandatory to have a license from the boiler superintendent for cashew nut unit owner.
Trademark: Once you should secure the brand using the trademark registration.
Area required for cashew processing business
You should procure an area of around 500 sq. mt and for operating small scale cashew nut preparing unit. The area should be smoothed and should have an open area to dry out cashews in the sun.
You must check the accessibility to the market where you can sell your item. This will impact while determining the aggregate cost of set up. It is impossible to start the cashew nut processing at home.
The raw material used in the cashew nut processing business
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The main raw material for this business is cashew nuts. Explore the best suppliers of the required raw materials and equipment in your market.
Raw materials must be available in good quality and sensible cost. Complete an appropriate analysis before finalizing any dealer or supplier.
Cashew processing machine and unit setup
One can start a cashew preparing unit in any location in the country. Make the choice purposely keeping in mind the accessibility to prepared market and also from transport to avail crude cashew.
The list of machinery and equipment used in cashew nut processing is mentioned below.
- Cooking containers
- Cashew filling machine
- Cashew peeling machine
- Cooking vessels
- Fragments strainer
- Hand functioned cutting equipment
- Hot furnace
- Husk winnowing machine
- Multi-color cashew kernel sorting machine
- Pieces separator
- Sealing machine
- Semi-automatic shedding appliance
- Shutting machine
- Steam boiler
- Steam pipeline
- Steam reservoir
- Weighing scale
You must pack the final product in airtight packets that are moisture-proof.
Cashew nut processing
The raw cashew nuts must be purchased from a farmer or local market.
Before processing these nuts need to dry under sunlight for 2-3 days then store it in jute/gunny bags for processing.
Primary cleaning: The primary step is to sun-dry raw cashew nuts and stores them in bags.
Steaming in the boiler: The stored nuts must be cleaned and next steamed under pressure container to soften the cashew nutshell. It is essential because it makes cashew lose from inside and then it will be easy to take out from a shell.
Shell cutting: The cashew shell is cut open longitudinally and the cashew nut is removed out from shell manually or by cutting machine.
Steam roasting: The cashew nuts are dried in an oven at specific heat so that the outer layer of cashew nuts can be peel off effortlessly.
Peeling: The outer pinkish layer of the cashew nut must be known as “testa” which is removed off and cashew nuts are then available for consumption.
Grading: The cashew nuts are graded into 6 different varieties as per size, color, and roasting condition of the kennel and also how this kernel is broken; the grading is done through AGMARK standards.
Packaging: The cashew nuts are now prepared to be packed and before packaging, kennels are dried so the humidity and the moisture content becomes 3%, which is also done by storing cashew nuts in jute bags.
The cost to start a cashew nut processing business
The cashew processing cost per kg is mentioned below.
The cost of land – Rs. 3,00,000
The cost involved in land development – Rs. 50,000
The cost involved in setting up the cashew processing plant – Rs. 20,00,000
The cost of raw material – Rs. 6,00,000
Miscellaneous cost – Rs. 1,50,000
The packaging cost – Rs. 1,00,000
Labour cost – Rs. 3,00,000
Total cashew nut processing plant cost in India is Rs. 35,00,000.
The profit margin for cashew nut processing
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You can expect the profit margin for cashew nut processing in the first year which will be
very little but later on the profits will be high as the cashew is an important ingredient in the household as well as a sweet shop, restaurants, etc. You can expect 50 to 60 % of the profits from the second year.
How to sell processed cashew nuts
Cashew nut – local market: Find the market which is nearby and also deal with hotels and restaurants, contact distinctive chefs and restaurants and inform them regarding your product.
Cashew nut – wholesale market: You can sell your cashew in the wholesale market of your city for bulk orders.
Cashew nut – online market
B2B websites: You can register your cashew nut business like Alibaba, Indiamart, Tradeindia, Exportersindia, etc. to acquire bulk orders.
B2C websites: Register your cashew nut business on B2C websites like Amazon, Flipkart, Snapdeal, Bigbasket where customers can see your products and approach for orders.
Brand and uniqueness
Advertising is a significant aspect of the accomplishment of the business. Apart from the conventional way of advertising, the present generation could be reached mainly by online promotion which is a viable way to launch your brand. While advertising the business you must research the competitors and look out for some ideas for promoting your brand. You can even allow orders through own online shop to sell your product, or you can even deal with another hosting site that to sell and introduce your product to the clients. You have to think about the expansion of your business from the day you have initiated the cashew preparing business which is very important for a successful business.
The conclusion to make money from cashew nut processing business
This business is easy to work on and you will better chances of getting good money. For better profits in cashew nuts, you should think of commercial Cashew Farming.