Introduction on How to Start Nimbu Pani Making Business in India
Are you willing to start a lemonade making business? Here is a simple guide for starting a lemonade production company with less capital.
A step by step guide to start a Nimbu Pani making business in India
Lemonade is a lemon-flavored drink and in a country like India it is famous as ‘Nimbu Pani’. Additionally, lemonade production is a money-spinning and viable manufacturing prospect in India. Generally, people prefer lemonade as cold soft drinks, particularly during the hot summer season. You can start a lemonade production unit as a small scale business.
Market potential to start an Nimbu Pani or Lemonade business
Consuming non-fizzy drinks is more advantageous in health aspects than carbonated drinks. Lemonade, is one of the favorite soft drinks, is used by people of various age groups in general and by the youth in particular and widely during summer to satisfy the thirst and to get reinvigorated.
Changing lifestyle and spending behaviors coupled with increased purchasing potential supported growth in soft drinks from 2014. Consumers also began to move towards health and wellness products that seem to be healthier.
According to the Euromonitor, soft drinks are estimated to record further growth in off-trade volume terms in the coming period. The majority of volume and value growth estimated to come from bottled water and juice, which are being embraced by customers in cities and villages alike. Per capita consumption of soft drinks in India is about 6 bottles per annum. Delhi market has been recorded as the highest per capita consumption in the country with about 50 bottles per annum.
License, registration and permission required for Lemonade business
In initiating lemonade production businessmen must register the business with ROC as per the desired ownership pattern of the company.
You must obtain a Trade License and SSI Registration from the local organization. Soft drink industries are provided with a license under the Fruit Products Order, 1955, which is a statutory Order given under the Essential Commodities Act, 1955, and is monitored by the Ministry of Food Processing Industries.
Under this Order, a license is provided to the manufacturers of fruit associated items covered under FPO, 1955. Compliance under the PFA Act is obligatory. For quality control and standard, BIS specification is required in lemonade production.
At present GST Registration is very much obligatory.
Below is the list of license required before starting the Nimbu Pani making business in India
- Registration of firm
- GST registration
- Trade license
- Pollution certificate
- MSME/SSI registration
- EPI and ESI registrations
- FSSAI registration
- IEC code
- FPO act
Business plan for setting up Lemonade or Nimbu Pani unit
For beginning lemonade production, it is recommended to have a customized business plan from the beginning. It is extremely advantageous in establishing any factory as such.
It will aid you in choosing the right machinery, analyze the financial requirement, and also in financial preparations from the bank or any financial institution.
Before arranging the machinery, create a layout plan for machines, finished goods storage, raw material storage, and area for administrative work. Required utility items are power and water.
The machinery required to start a Lemonade production unit or Nimbu Pani making business
You can see some of the primary and essential types of equipment needed to open a lemonade manufacturing business:
- Tank with agitator, stainless steel
- Syrup making vessel, mild steel with S, S. lining
- Filter, S.S. construction
- Syrup storage tank
- Water tank
- Ingredients storage tank
- Pipes and valves
- Pumps with drive motors
- Filling and sealing machine, automatic
- Water treatment equipment
- Miscellaneous ancillaries
Raw material required for starting Lemonade or Nimbu Pani business
For lemonade production, the requisite raw materials are citric acid, sugar, flavor & essence, sodium benzoate, food color, etc. Apart from this, you should make arrangements for packaging consumables. About 200 ml, 600 ml, 1 liter, and 2-liter packaging is usually available in lemonade packaging. You can also try for small quantity pouch packaging for instance 100 or 200 ml.
Lemonade or Nimbu Pani preparing process
Primarily, prepare the sugar syrup by adding sugar to water. Then mix the citric acid, flavors, preservatives, and other constituents in the appropriate proportion by agitating. Stir the mixture until these ingredients spread and you get a homogeneous mix.
Then, cool the mix to the required temperature and dissolve the carbon dioxide gas in it. At last, fill the diluted mix in specified bottles, seal, and then pack in plastic crates.
Cost or investment to start Nimbu pani making business or Lemonade making business
If you are choosing any small-scale business in Lemonade 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 Lemonade production business is Rs. 1 lakh. Additionally, on a large scale basis, the equipment can be around 2.30 lakh rupees. The cost of raw material could be about Rs. 10,000. Therefore, the entire cost could be estimated at 1-1.5 lakh rupees.
For beginning the business, you must plan for the budget. You may charge around Rs. 20 to Rs. 30 per glass in the market based on flavors. Not only this, but you can also directly contact and have a network with restaurants and hotel industries.
Profits in Lemonade making business in India
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Because of the high demand, the profit margin in Lemonade making business is high. One can gain up to 1000 to 1500 rupees every day. The profit margin in the Lemonade production business is much more for wholesale dealers. If you carefully follow the above-mentioned steps you can earn income through the Lemonade production business though you have spent less capital.
Marketing strategies for promoting Lemonade product
As the Lemonade is an FMCG product, it must have extensive advertising and product promotion methodology. And it is recommended to have an organized marketing team. Select a trendy and memorable name for your product. Prepare the label properly. Advertisements in the electronic media and FM channels are very essential in promoting this type of item. In addition to that, try to keep your product in retail stores as much as possible in your area. Supermarkets and malls are also the best choices for selling the product.
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You must set-up a well-penetrated distribution channel. Generally, many big e-Commerce companies and supermarkets are possible options for domestic selling. Not only the domestic market, but you can also even explore the international market for expansion. Lemonade making is a working capital-based business. So, proper cost analysis and financial forecasting are essential for gaining long-term success.
How to sell your product?
You can sell your product by registering it online on B2B websites and B2C websites. You can even spread some samples in the nearby bakeries, restaurants, supermarkets, or in the wholesale markets where your product gets well purchased. Try new ideas in the starting and just concentrate on promoting your business. Later your business will be raised depending upon the quality you provide to the customers.
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