Introduction on how to start Tamarind Paste baking business in India (Cost, Profits, License)
This article holds a detailed sample business profile on how to start a tamarind paste making business. Also, the article will highlight about tamarind paste making machine, ingredients, manufacturing process, market potential, project cost and returns.
Tamarind pulp is edible, thus people use the tamarind pulp for preparing various types of food. Also, it is used as a pickling agent for its sour taste.
A step by step guide to start a Tamarind Paste making business in India
Tamarind paste has many culinary applications including a flavoring for curries, chutnies, and the traditional sharbat syrup drink. The tamarind sweet chutney is famous in India and Pakistan for garnishing few snacks. Basically, the tamarind pulp includes 20% moisture, about 6% fiber, and majorly 67 % carbohydrates.
However, tamarind pulp cannot be stored because of its perishable nature. Due to this reason, people go for packaged tamarind paste for day to day cooking requirements. Also, using the paste is not that much trouble such as raw tamarind. That is the reason, tamarind paste is getting more demand not only in the metro cities but also in villages.
Market potential to start a Tamarind Paste making business in India
This is the primary step is starting while any food processing associated business. You must find out the particular market for your specific item. Basically, tamarind paste is a readymade item to be used in cooking. So, the grocery stores, supermarkets, departmental stores, and self-service counters are the perfect areas to sell the product from. Additionally, online marketplaces and food delivery options are very much potential areas as such. Not only this, it has a good export value in countries such as UAE, USA, and Malaysia.
Business plan to start Tamarind Paste making business
After you acquire confidence in the market, the next step is crafting the business plan for Tamarind Paste making business. Yes, there are many business plans for making software applications online. And some of them are very effective too. But if you can’t prepare the report of your own, it’s recommended to consult an expert.
Generally, a business plan included two basic segments. The Main is the technical aspect and the next is the financial analysis. Actually, the financial calculation is based on your technical aspects. On the other hand, must be on par with your budget constraints.
Investment required to start tamarind paste making business
A small-scale tamarind paste making business does not require much capital. However, the exact amount you need will be based on the production output. Also, you can verify if there is any Government subsidy is available or not for the business such as tamarind paste making business.
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Generally, banks do support the entire project finance. And in that scenario, the bank will ask for some collateral security or owner’s share. If you have the capital for fixed savings, then you can also think of availing only a cash credit as a working capital cost.
License, registration and permissions required to start Tamarind Paste making business
Apart from the proprietorship business, you should be in a position to register your organization. On the basis of the managerial pattern, you may opt for your business to register as LLP or Pvt. Ltd. or Ltd. Company. You must definitely obtain a Trade License and approach a nearby bank to open a current bank account for financial transactions pertaining to your business.
As your business is categorized under food processing business, you must have an FSSAI registration. You must even follow the FPO norms. Though this type of plant does not demand a PCB license, it is recommended to apply for a NOC. Finally, you must obtain GST registration for tax filing. If you have more than 10 staff members, then you should apply for PF and ESI.
Area required to start and setup a Tamarind Paste making business unit
You can start a small-scale unit in a covered area of 1000 sq. ft. The location must have a power connection and sufficient provision. Also, you must have a wide entrance for loading and unloading purposes. It is suggested to start the unit in an industrial area.
After choosing the space, design a floor plan and machinery accommodation plan. Determine the specific location for the storage, packaging, production, testing lab, and official work. You can even approach the machinery supplying firm to assist you.
Tamarind Paste making machine
Broadly, you can set up the unit in two ways. One is semi-automatic and the second is fully-automatic. The semi-automatic unit is recommended in the starting days and for beginner entrepreneurs. Some of the primary required machinery are listed below:
- Baby boiler and accessories
- Stainless steel pulp extractor
- Stainless steel steam jacketed kettle
- Stirrer, motor, reduction gears for the kettle
- Cup washing and drying machine
- Stainless steel working tables
- Lab equipment
Process of making Tamarind Paste
Firstly, de-seed the raw tamarind. After that, soak the tamarind in small quantities of water in the kettle. Then, heat the mass gently till you feel the pulp is soft. Stir the mass and separate it from the kettle. And then, extract the pulp using an extractor.
The pulp obtained is once again filled into the kettle where it is once again concentrated to one third its volume. 1 Kg of tamarind yields around 400 grams of the paste. Finally, include the preservatives and pack the product containers of 200 grams capacity and seal.
Raw materials required to start a Tamarind Paste making business
The major ingredient you require for tamarind paste making is raw tamarind. Also, you require a Class II preservatives. Packaging can be done by using glass or plastic bottles. Also, you must have a hard cardboard outer cartoon and straps for bulk packing. Finally, you should get printed labels to add product information to the consumers.
Manpower required for Tamarind Paste making business
For a small scale unit, you should have about 6 employees. However, the number of workers is based on the unit size and quantity of production output. Here, we have listed a basic requirement list
- Production manager cum chemist – 1
- Skilled worker – 2
- Semi-skilled worker – 2
- Administrative staff – 1
Points to remember
Quality control plays a chief role in the entire success of the plant. You must prepare the paste according to the standards marked down under the FPO. The FPO license is obligatory. Also, the tamarind paste should be free from fermented odor on production or storage. Also, the product should not produce any fungal or bacterial effect. It is necessary to add the expiry date on the labels. From a tamarind paste making business plant, you can produce other items as well. Actually, multiple product processing units will have better income and business prospects.
Investment required for starting Tamarind Paste making business
You can start the Tamarind Paste-making business with just one unit so it requires an only a minimum investment of Rs. 40,000 to Rs. 50,000. You can earn more profits with low investments.
Profit margin in Tamarind Paste business
You can get a good profit margin in Tamarind Paste making business. It varies from 20-25% within a year and soon your profits will get rise based on the quality of your products.
You may also check this: How To Start Herbal Oil Business.
Marketing strategies for promoting the Tamarind Paste product
Mainly it is essential to determine the marketing strategy for your business. The marketing strategy should have two things: first, to attract potential customers and make sure they are aware of brands and the second one is to educate potential customers about your Tamarind Paste features like how it is so healthy and tasty. Additionally, you can opt for advertisements using banners, advertisements in local magazines, and reviews by food critics.
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.
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 vegetable stores, 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.
In case if you are interested in this: Organic Tamarind Production in India.