How to Make Money from Raisins (Kismis): Investment, Cost, and Profit Margin

Manufacturing Raisin (Kishmish/kismis) is essential since it is a widely consumed food item. Although most of them are imports, there has been significant growth in raisin production in India in recent years. It is used to produce sweets and delicious foods in households. Since raisins are primarily made from grapes, bear this in mind while planning to build a raisin factory where there is a lot of grape production so the entrepreneur can buy the raw material cheaply. Let’s check out how to make money from Raisins (Kismis).

How To Make Money From Raisins (Kismis)
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Almost everyone uses raisins. Thus, it is a good product. It can be a highly successful business if started in a selected environment. When an entrepreneur wants to sell Raisin, he can sell it in his own country and make money by exporting it to other countries, as long as his product is made to international standards. The entrepreneur in the Raisin manufacturing business must first concentrate on the home market and build client trust in their product.

Then the entrepreneur can eventually export. The entrepreneur’s success depends on the product’s cleanliness and quality requirements. They are dried up to 80%–85% to make raisins. By following the below steps, you will know how raisins are produced and distributed commercially. 

Market and scope of raisin production 

The worldwide raisins market is a major dried fruit market category. The use of raisins in food, beverages, and cosmetics is a growing worldwide demand for raisins. As a result, the world market of raisins is estimated to grow at a 4.77 percent CAGR to reach IN 20, 61, 010 Crores by 2026. Raisins are dried grapes used in cooking and eating raw.

The raisins are produced by drying grapes in the sunlight or using a food dehydrator with a similar nutrient profile. Acquisitions, product launches, and expansions are key strategies used by prominent businesses in the raisins industry to expand their consumer base. As a result, there is a constant increase in the raisins market.

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Raisins (Kismis)
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The health advantages of raisins drive the market development in cooking and baking. Cross-cultural cuisines also help to increase consumer demand for raisins. The emergence of organized retail in Asia-Pacific also drives the worldwide raisins industry. Asia-Pacific is the world’s largest raisin market, with significant development opportunities for producers. However, the negative consequences of eating raisins may slow the worldwide raisins market’s development. 

How to make money from Raisins (Kismis)

Make a business plan for your raisin business

The entrepreneur must first create an excellent business plan for his business before he can begin managing his business profits and investment. It’s also vital since it details the plant’s production capability and other aspects of the firm. If the entrepreneur has a limited budget, they can decide to set up a low-capacity manufacturing facility. And if the entrepreneur does not have a budget, they can build up as many production capacity plants as possible.

A project report is included in the business plan itself. Using this information, the entrepreneur will be able to estimate the costs and profits of beginning his Raisin Manufacturing Business. Because of this, the entrepreneur needs to have a bit extra money in reserve than what is expected to be spent in their project report, just in case. Bank loans, government-sponsored savings plans, and subsidized loans are the most common ways people can manage their money.

Investment required for your raisin business

For higher profits, raisins can only be produced by a large-scale factory. To establish such a large factory, you need to have significant capital. You can also take the help of loans from banks or private corporations if you don’t think risking all the money at once is a good idea. Your investment depends on various factors such as the size of your business, the quality of the machinery you purchase, the quality of the raw materials you purchase, etc.

Even for starting a small factory, you will need an area of 800 square meters. The total estimated project cost for a large-scale raisin manufacturing company can be above five lakhs. So you need to be careful while calculating the investment and analyze your business model properly to estimate the perfect budget for starting your raisins business.

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Land requirements for your raisin business

It is crucial to select an ideal area before starting a Raisin Manufacturing Business. Then the chosen location’s land and property must be managed. Owning, renting, or leasing land and buildings are always options for the entrepreneur. It is also possible to plan to build a unit on the property owned by the entrepreneur. The entrepreneur also requires space for production, storage, electricity and utilities, and a small office. A businessperson may need 1000-1200 sq ft to do this. A business can rent a building built in the chosen location if it isn’t available.

Licence and registration required for your raisin business

Business registration: The first step in starting a business in India is registering as a legal entity. Depending on the extent of the firm and the amount of capital invested, the owners may opt for one of the following business models: There are three types of limited liability companies: LLPs, PLCs, and PLCs with limited liability (PLC)

Factory licence: A manufacturing license is often issued by the local government in each state. By the Factory Act, such a permit is necessary. If you want to apply online for a factory license, you’ll need the required paperwork for your firm’s site plan and business plan.

Pollution control certificate: According to the 1974 Water (Prevention and Control of Pollution) Act, a permit from the local pollution control board is required for every company owner operating a facility that discharges pollutants into water resources or the surrounding region.

The State Pollution Board gives a “No Objection Certificate” before any industry or company may be established (CTE). As soon as a company or processing facility has been founded, it may easily get a Consent to Operate No Objection Certificate (CTO). No Objection Certificates need to be renewed regularly. Candidates may submit CTE and CTO applications for each state’s pollution control board through its website.

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FSSAI License registration: The Food Safety and Standards Authority of India accreditation is required for anybody in the food sector, including rice farmers. For an FSSAI licence, you must apply online and pay a fee to your local government website. In addition, the applicant will be required to provide the following standard documents throughout the application process.

GST registration: Businesses who want to do business outside their home state must get a GST registration number. The official GST website has an online registration form. The applicant must provide all required supporting documentation throughout the application submission process.

Raw materials required for processing raisins 

Grapes are all you need to produce kismis, and they can be purchased in bulk. You’ll have to go out and get some high-quality grapes. You should not choose grapes that are already ripe. A good grade and sweet grapes must be used for this purpose. You need to get in touch with the local grape cultivators.  Grapes of high grades can be found here. It’s a great way to buy these grapes at a discount. The grapes must be harvested from this point and then processed further.

The machinery required for raisins manufacturing

  • Dryer and washer for grapes.
  • Machine for sorting and grinding.
  • A machine for packaging.
  • An instrument for measuring.
  • Cargo crates and other transport equipment.
  • A Sealing Machine.
  • Other tools and equipment.

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Raisins (Kismis)
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Raisin manufacturing process

  • Choose good quality grapes from the supplier.
  • The grapes can dry for two to four weeks on the trays depending on the weather. The fruit becomes brownish-purple in colour when the grape’s moisture content reduces from 75% to under 15%.
  • When the raisins have dried, the paper trays are rolled up over them to make a bundle. Once collected, the rolls are stored in bins or crates until they’re ready for transport.
  • Dirt and other unwanted things are removed from the fruit rolls as they arrive at the manufacturing.
  • The dried grapes are taken from storage bins and sent to the processing facility. 
  • Afterwards, they are mechanically changed by the conveyor system. 
  • Sand and dirt can be removed from the raisins by running them through an air-blasting fine mesh filter. Immature fruit can be removed by vacuuming it out using a suction apparatus.
  • The cap stems of each raisin are removed using a two-step process using two revolving conical surfaces. Afterwards, the raisins are shaken to remove them from the stem. The seeds are mechanically removed from the raisins if they contain any.
  • The raisins are then separated by size using a series of mesh filters once all of the processing operations have been completed. Now that the raisins have been divided, they can be stored in various containers.
  • They’re put into vehicles and delivered to their customers.

Storage and packing of raisins

Raisins have a high water permeability. Mold, rot, and fermentation can all occur in moisture, and once fermentation occurs, it can swiftly spread throughout the whole batch. Mites, cockroaches, beetles, grubs, moths, rats and mice, and ants can all be prevented under the right circumstances of temperature and humidity. Agglomeration, syrup production, candying, and fermentation can be harmful at temperatures over 24°C and under mechanical pressure.

Discoloration and hardening may occur as a result of heat. As a result, heat sources should be avoided while using it. Raisins are finally packed in 400 gauge LDPE film bags and kept in corrugated boxes of 5 to 15-kilogram capacity at low temperature to retain the natural raisin color and avoid pest assault to endure mechanical, climatic, biological, and chemical stressors. This is the raisins preservation method.

The profit margin of your raisin business

As a raisin producer, you’ll need to locate a distributor or dealer, which shouldn’t be too difficult. Manufacturers make a lot of money because raisins are in great demand. The profit margin of the raisin manufacturing business is dependent on a variety of factors. You need high investment and higher profits for a large-scale raisin manufacturing business. If you start small, then so will the profits you get.

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Getting your investment back can take a time of 2 to 3 years; afterward, your business can go on the profit scale. If you can find a way to sell your products directly to the consumers, you can make higher profits. If possible, try to open your retail outlets and sell your raisins, this way, you can boost your raisin business in no time.

Grapes yield around 0.45 kilogram of raisins for every 1.6 kg. You can calculate the running investment required for your business and the income generated by selling your produce. However, this is a rough figure and may sometimes alter depending on the manufacturing process. Nevertheless, you can use this information for a rough estimation of your finances.


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