Introduction on How to start Wheat Flour or Atta Chakki making business in India
Small businesses are contributing more to the economy. Although large business chains and cooperation gain much attention and are provided special importance, it is the small businesses that are the main donors towards the development of the country. Also, small businesses are great business chances for many budding investors cum entrepreneurs who want to launch a business of their own but are short on experience and amount for investment. Small businesses, therefore, are ideal brek points in career to become businessmen and establish a new business. One such small business idea which is commendable and comparatively simple to start is a flour mill or an atta chakki.
A step by step guide to start an Atta Chakki making business
Flour is one of the most primary and essential components, especially in a country like India where Rotis, Phulkas, chapati, and parathas are part of the daily staple diet. Whole wheat (atta) or any other kind of flour containing maida, Jowar, Bajra, ragi are all used as flour to prepare parathas and Rotis. Additionally, flour is also used in the preparation of fast food items for instance as a pizza base, pasta, buns for burgers, doughnuts, noodles, bread, biscuits, etc. Hence, flour as a commodity is always in demand whether for household purposes or restaurants and fast food corners. Hence, starting a food business, specifically a flour mill or an Atta Chakki might be a perfect business idea.
How to start an atta chakki business in India?
Check the below section to have some more knowledge about how to start an Atta Chakki business. There are two types of flour mill businesses that can be considered while deciding to start a business. The first one is a basic mill where customers get their grains and are grounded and milled for a certain minimal amount. This business needs a milling machine and less space or shop to place the machine and operate the milling business. The investment for this kind of mill is low, the only investment is for the machine and probably a spa small area, both of which can be rented in the initial period. The second type of flour mill is one where the entrepreneur acquires the raw materials that are mainly grains, grounds them at the mill, and transports them to market for selling after proper packaging. This packaged flour is sold to retailers or directly to customers. This business needs procuring the raw materials, milling them, sifting them, and then packaging them, these steps would need machinery and the capital investment is comparatively higher than a basic flour mill. At the same time, the profit margin and demand is even more for readily processed flour.
Advantages of starting Atta Chakki business in India
If you are thinking about how to start an Atta Chakki business, you should first know the advantages of it. A flour mill business has many benefits and is thus a suitable business opportunity to start, especially for budding entrepreneurs.
Market potential of Wheat Flour Making business in India
Every Indian family consumes flour in their day-to-day meals, thus even a single-family needs a significant amount of flour. Also, with the focus on health awareness, many families avoid store-bought ready flour and opt to have it milled instead. Thus the demand for flour mills is rising always. Also, large quantities of flour are needed by local restaurants and hotels too, thus supporting its demand for flour mills.
Business plan to start Atta Chakki or Wheat Flour making business
Atta Chakki is a lucrative business to start once the owner knows the primary aspects of starting the business and the registrations including the various licenses mandatory to start the business.
Registration, license, and permissions required to start Wheat Flour making or Atta Chakki making business in India
The registrations that must be essential to start an atta chakki include-
- 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: An Atta Chakki 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: An Atta Chakki 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: An Atta Chakki 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 Atta Chakki, 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: An Atta Chakki 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.
Equipment and essentials required for starting Atta Chakki business in India
The basic requirement when you plan to start an Atta Chakki business is ‘equipment’. Equipment is mandatory for an atta Chakki without which the business is not possible. The basic list of equipment, machinery, and materials required for an Atta Chakki is mentioned below (taking into account all the types of flour mills)-
- Availability of transportation provision
- Power provision
- Water availability
- Semi-skilled manpower
- Drainage facility
- A minimum area of 3,000 sq. ft for arranging a small scale unit with the entire product range. However, for a basic mill, a smaller area could be used.
Equipment such as
- Bucket elevator
- Reel machine (3 segments)
- Rotary separator with aspiration channel
- Scourer machine with aspiration channel
- Intensive dampener
- Indent cylinder
- Screw conveyor
- V-Groove, Couplings, Pulleys, V-Belts, etc
- Weighing scale
- Dust cyclone
- L.P fan for cleaning
- Roller Mill body
- Roll Grooving & spindle cutting
- Super cyclone
Process of making Wheat Flour
Once the registrations are done and the location is finalized along with equipment procurement, the next step is the actual operation process. Some aspects that are essential for the actual production process are-
The location of the flour mill should be chosen carefully such that it is easily reachable and close to a residential area where you need a flour mill is quite high.
It is essential to acquire basic training for operations associated with the business, especially concerning the running of the equipment and use of the appropriate raw materials as well as correct filter/sieves to get the desired products. Basic idea about repairing the machines is also required in case of break downs.
While manufacturing and selling ready-packaged flour it is significant to consider the process of procuring and milling the grains. The raw materials should be gathered either directly from the farmers or reliable places so that it will benefit the farmers.
After getting the raw materials, the next process involves cleaning the wheat grains carefully to remove dust, stone, and other foreign particles. Then tempering the grain before grinding by treatment with water so that the bran is removed from the endosperm.
The parts of the grains, namely germ, bran, and endosperm must be crushed efficiently and the bran removed and the last process is sifting the flour.
Post sifting and obtaining the endosperm flour, it should be packaged in airtight packets precisely and carefully. After that, they are transported to retailers or sold to customers directly.
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Investment required to start Wheat Flour business in India
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A flour mill is a business that does not need much capital investment. The estimated cost of acquiring the milling machine is around Rs. 2 lakhs, which too can be minimized if the machines are rented in the beginning. Thus, given the rate of return in the business, the investment capital is less. You can just start with a minimum of Rs. 1 L – 1.5 L investment.
Loans availability without any hurdles
As discussed, a flour mill is having huge demand and also not demands much investment when you start the business, which are positive aspects in favor of the mill business which supports banks to lend out loans to businessmen easily, for beginning a flour mill.
Profit margin in Wheat Flour making business in India
You can expect a good range of profit margin from 30-35% in the initial stages as it is a very simple process. But you need to keep in mind that quality should be your priority. This will attract a huge number of customers. As it is having many health benefits Wheat Flour making business will result in good profits.
Marketing strategies for promoting your product
You can promote your product through social media websites. You can even try by using either B2B or B2C websites and sell the products. Give the samples of your product in the nearby restaurants, hotels, grocery stores, supermarkets, etc. It has great demand in the market because of its high nutritional values and health benefits.
These are the basic steps of operating a flour mill business. A small business such as wheat flour or Atta Chakki or a flour mill is the best idea for starting a small business since it has a high requirement in the market with a higher rate of return when compared to the investment. Also, a flour mill can be started on a small scale and less space and is not a gender-specific business idea, thus offering a business opportunity to aspiring investors.
You may also check this: Organic Wheat Farming.