Introduction on how to start Vermicelli making business in India
Do you want to begin a vermicelli manufacturing business? You will get a detailed stepwise guide with vermicelli production business project tips. Also, the article comprises the vermicelli production process, necessary raw materials, and market opportunity, and machinery details with costs.
A step by step guide on how to start a Vermicelli making business
Vermicelli is a pasta product. Also, it is famous as spaghetti. And the people in the Indian subcontinent have it in different cooked food items. Some of the famous recipes are Upma, payasam barfis, khichadi, halwa, Curd Semia, Puliyogare, etc.
Apart from a large-scale operation, you can start a vermicelli manufacturing unit on a small or medium scale basis. It demands less investment for building infrastructure and the purchase of machinery. This project is financially money-spinning either for an automatic mode or in a semi-automatic model.
Market potential for Vermicelli making business in India
In the present fast-growing world, vermicelli market potential is great as it is instant with fast cooking preparation properties. So, it has great market potential in both the urban and rural areas. Since the chief raw material is wheat flour, the vermicelli is very rich carbohydrate food. Hence, irrespective of age, a large section of people consume it is regularly. So because of the growth in the number of consumers the market potential for vermicelli is increasing day by day.
The following are the main factors that show the market potential of vermicelli making business:
- Firstly, quick industrial development in India
- Secondly, the vermicelli product durability
- Thirdly, the growing preference for it is because of the increasing number of the working population and many more.
- After that, the population is also growing rapidly in India.
- Next is the purchasing potential of the people is growing day by day.
- Lastly, the changing food habit of the population.
8 steps guide to start a Vermicelli manufacturing business
Analyze the market research of Vermicelli
Vermicelli is classified under instant food or fast food product. And homemakers mostly use this food. Due to the rapid development, changing lifestyle, and growing disposable income, a large number of people are developing an interest in these types of products.
The small grocery stores, malls, departmental stores, and even the popular supermarkets are the ideal places to sell your vermicelli.
Before starting the project, you should analyze the local market demand and supply situation. Also, check the packaging information and price of the already established local and popular brands of your locality. It will aid you in identifying some of the important key aspects of your project.
Craft the perfect business plan for starting Vermicelli making
This is the first main step that you must take very carefully. It is not that you require a project report only for availing financial assistance from the banks. But you require a business plan to initiate the project smoothly with fewer errors. A project plan will help in securing funds and setting the unit properly.
Arranging the capital required for Vermicelli unit
According to the project cost, you should arrange the capital. Usually, project finance depends on production output and unit size. If you have savings of your own it’s nice. Otherwise, you must apply for the loan. And there are many chances to have financial assistance. You can even apply for project finance or machinery hypothecation or get overdraft provision for the working capital assistance.
Registration, license and permissions required to start Vermicelli manufacturing business
Vermicelli is a food product and production and marketing of food items must be done abiding by the PFA Act. First of all, you must register your business. Next, should apply for Trade License. You can also register with MSME Udyog Aadhaar through the website. It will help you in availing the benefits of Government grants and subsidies.
Apply for FSSAI registration. It is mandatory for packaged food products. Obtain a NOC from the State PCB. Also, you may get the brand name of your product after Trademark registration. The following are the permission and licenses required to make food products in India:
- Obtain a trade license from the local authority.
- Next, apply for the VAT registration.
- Thirdly, get the BIS Certification (Bureau of Indian Standards) which is essential.
- Next, register your noodles making business for trademark.
- You do not need a pollution control NOC. But it is recommended to verify with the local office.
- Also, ensure to register your business with ROC.
- Furthermore, it is important to apply for Udyog Aadhaar MSME available online.
- As it is a food-related product, you should apply for the FSSAI (Food Safety and Standards Authority of India) licenses
- Also, the unit must have compliance with the following: GMP and PFA Act which are very essential.
- The products should have ISO certification for building trust in consumers so apply for ISO 9001 certification
- Lastly, you must ensure the unit to have exhaust fans to ensure a comfy environment inside the unit.
Area or location required to start Vermicelli making business
For this type of manufacturing business, you require a location in the industrial area. Verify if there is any food park or not. Getting a location inside a food park will help you start the business with many advantages. Generally, you can begin a small-scale vermicelli manufacturing business in a 1000 sq. ft. covered space. Moreover, you must have electricity and adequate water supply provision for the processing and other purposes.
Cost of fully automatic or semi-automatic Vermicelli making machine
You can start the vermicelli production unit using a semi-automatic or fully-automatic basis. A fully automatic system has a dough preparing system, vermicelli production system with dryer. However, for a beginner, we recommend starting with a semi-automatic system.
The cost of the vermicelli making machine is based on the production output. Generally, these machines come like 10 – 12 kg. Per hour to 130 to 150 kg per hour. You have to obtain the machine as per the desired production output. Apart from the vermicelli making machine, you must have
- Dough kneader (Flour mixer Machine)
- Baby boiler and accessories
- Dryer Machine
- Weighing Scale
- Pedal sealing machines
- Laboratory equipment
Vermicelli raw materials
The main raw material is wheat flour or maida. It is recommended to have a good quality wheat flour to get the best quality finished products. Also, you must obtain the packaging materials. You can use the packets for packing in 200 and 500 gm quantities. Additionally, you require cartons and packing thread-like material for bulk packaging.
Process of making Vermicelli
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The vermicelli production process is easy and well standardized. First of all, mix the wheat and other flours in little quantity in about 25% to 30% of the water in a mixer. Knead for around half an hour and prepare the dough.
You can prepare it using a dough mixer or vermicelli Flour mixer. Then keep the mixed dough into a vermicelli extruder. This vermicelli machine uses an extrusion technique that will change the dough into vermicelli threads. This vermicelli (Sewai) making machine is powered by electricity.
Finally, cut them into the required length and then keep in the tray drier for drying. Drying temperature is about 55 – 65°C and the time needed is 1.5 to 2 hours. After getting the finished products, you require to pack in the proper quantity.
The vermicelli production process is done by mixing raw materials, extruding, drying/roasting, length sizing, and packaging.
Packing of Vermicelli:
Vermicelli manufacturing is an attractive business for entrepreneurs who plan to start a small scale business in the food sector. You can produce some additional items as well such as noodles and pasta from the same plant using most of the same machinery.
You should not miss this: How To Start A Popcorn Business In India.
Investment required for small-scale Vermicelli making business in India
In the report, you must include both parts including technical aspects as well as financial calculations. The financial cost calculation and expected profit ratio are based on the technical aspects of the project. Here, we have included the basic cost such as a sample profile.
The sample project capacity is depicted below for small-scale vermicelli business. The plant can be operated in two shifts per day with each shift of about eight hours.
Plant machinery = Rs. 2 to 3 Lakhs
Equipment required = Rs. 50,000
Packaging = Rs. 50,000
Cost of power connection = Rs. 10,000
Cost of electrification = Rs. 10,000
Erection and commissioning = Rs. 5,000
Cost of machinery spares = Rs. 5,000
Cost of office equipment = Rs. 25,000
Deposits if any = Rs. 15,000
Company formation expenses = Rs. 5,000
Gestation period expenses = Rs. 5,000
Licenses & Tax registration expenses = Rs. 5,000
Initial advertisement and publicity = Rs. 15,000
Contingencies = Rs. 10,000
The total amount required for starting vermicelli small-scale business unit is Rs. 5 lakhs.
Profit margin in Vermicelli making business
You can expect a minimum of 30-35% of profit margin in vermicelli making business if you start the business at a smaller scale. For a commercial scale, the profit goes up to 50%.