Make Money with Spice Making, Cost to Start, License

How to make money with spice powder making business in India

Spice Powder Making Business is a good money-making business with low capital, any person can initiate this business; even home-based spice making business is beneficial. India is popular as the land of spices since India is the largest producer and thus it exports many of its species worldwide.

Spice powder is an important component in cooking, none of the Indian food is complete without spices and so most of the food industry consume spices, and they are available in varied forms as per the base material is used to make the spice powder. What are we waiting for? Let us get into the details to make money from spice powder making in India.

A step by step guide to make money with spice making

Spices help to add to the aroma, good taste, and color to food. Usually consumed spices in India are turmeric powder, coriander powder, chilli powder, cumin, etc. spices are majorly seen as an important ingredient in the glossary list of every Indian home.

The demand for spices in the international and domestic market is increasing day by day; it is expected that 10 million tonnes of spices were exported from India during the past year 2018-19; chilli powder and garlic powder stand top to the exporting spices list.

We being Indians can’t even imagine any food without spice, and as every Indian food is having base ingredient is spices. Thus, spices are the major consumable household entity and the Indian spices market is rising with the 40000 cores every year.

India is considered as the largest spice producing country, and India produces more than 50 different types of spices, people are seeking for ready-made food and spice powder which makes the cooking easier in this fast lifestyle, therefore the spice powder demand is increasing consistently. Powdered spices are easy for cooking purposes and it reduces time and physical labor for preparing different tasty food items. Every commercial food-associated industry like restaurants, hotels, etc. has been using powdered spices extensively.

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A guide to making spice powders for profit.
A guide to making spice powders for profit.

You can categorize the spices into whole spices, spice powder, and spices for a specific recipe; you have to change with the consumer demand. As people prefer the spices as per the recipe requirement so based on that you have to add new spices in your production list.

Commonly and traditionally used spices are Chilli, Cloves Cardamom, Black Pepper, Turmeric, Cumin, etc. Spice powder making is an easy and cost-effective business to initiate, one can begin this business with small-scale capital.

Licenses for spice powder business

Spice powder making is classified under the food industry. Food processing industries are required for many registrations from a state government and one must follow few rules of state government associated with the food industry.

Registration of Firm: You may begin the small to medium unit either as Proprietorship or in the form of a Partnership Firm. If you are beginning this business as One Person Company, then one should register your firm as a proprietorship.

GST Registration: It is mandatory to have a GST Number for every company.

Trade License: It is also very important to have a trade license from local organizations.

MSME/SSI Registration: It is mandatory to register your business with Udyog Aadhar MEMS registration that will aid in availing subsidies or any facilities from the state government.

Trademark: It is also very essential to secure your brand and you must apply for a trademark.

Food Safety and Standard Authority of India (FSSAI): Spice powder is a food ingredient that is the reason you must get a food operation license and FSSAI license which is mandatory for any food industry.

IEC code: In case you are also interested to export your powder to abroad then you must apply for IEC code.

BIS certification: It is important for getting the for BIS certification, ISI specification that is available for ground spices are listed below

  • Black hole and ground ISI-1798-1961
  • Chilli powder ISI-2445-1963
  • Coriander powder ISI-2444-1963
  • Curry powder ISI-1909-1961
  • Methods of sampling and test of Spices and condiment ISI-1997-1961
  • Turmeric powder ISI-2446-1963

It is recommended to have an AGMARK certification.

Area selection for spices business (location)

The absolute space for spice powder making business is estimated to be around 500 sq. ft, where you can section it into two parts one is for processing of the spices next step is for the spices packaging. The place or area should have the provision of water supply and electricity.

You can begin spice powder making business from your home, but while beginning the business from your home make sure that the area you have chosen is having ample space for the business. According to the state government laws for the home-based business, it is an important rule that the manufacturing does not allow any pet in the location, therefore in case you keep pets in your house then it will be a problem for your business.

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Make sure the unit must be easy to be accessed by transportation and the target market is also nearby. It is very important to complete all the documentation related to the land with the aid of the landowner.

The raw material required to make money with spice making

The major material for the spice powder is the ungrounded spice which includes turmeric, chili, clove, cumin, coriander, etc. the raw material for the spice powder depends on the type of the spice that you want to process.

Apart from the raw material for the spice powder, you must have packaging material for a packing that is very important after processing the spice powder. You can make use of the packaging material as promoting material for advertising by printing your brand/ logo on it, and also you can print the information regarding the product that will help the clients to know about it.

To initiate production you must purchase the spices in bulk, here is a list of some which could be used as the major raw material.

  • Chilly
  • Coriander
  • Corrugated cartons
  • Cumin
  • Fennel seeds
  • Methi leaves
  • Mixed powder
  • Mustard
  • Pepper
  • Permitted food color and preservative
  • Poppy seeds
  • Turmeric

Packaging materials including MET-PET, PET, PP, PPFP.

Machinery to make money with spice making

You must purchase the machinery according to the production you are interested in to make the spice powder you must have a grinding machine.

There are many types of grinding machines that are obtainable for the spice powder grinding purpose as per the type of raw material.

Impact pulverizer: Impact pulverizer is preferable for the rock salt, turmeric and this machine is usually used for large-scale manufacturing.

Double stage pulverizer: This machine is used for small-scale manufacturing which is suitable for turmeric and rock salt.

Hammermill: This is preferred for the chili, curry leaves, coriander, ajowan, tej patta, hyssop, mustard, cumin, black cumin, basil leaves, etc.

Spice mill: Spice mill is suggested for fennel, mustard, fenugreek, poppy seed, tej patta (bay leaf), basil leaves, curry leaves, marjoram, hyssop, thyme leaves, parsley, mint, lesser cardamom, sage, greater cardamom, kokum, juniper, etc.

Pounding Machine: Pounding Machine is preferred for black cumin, fennel, dill, fenugreek, poppy seed coriander, mustard, ajowan, aniseed, anardana, celery juniper, caraway, kokum, star anise, mace, tamarind, black pepper, vanilla, long pepper, etc.

List of machinery needed for the spice powder making are listed below

  • Compressor
  • Disintegrator
  • Heat Sealing Machine
  • Packaging machine
  • Roster
  • Sieves
  • Spice Grinder
  • Weighing Scale

Spice packaging machine: Spice packaging includes filling and sealing process.

After the processing, the spices are separated according to the size, weight, shape color, and flavor then they are packed using a pouch.

Spice powder is obtainable in various packets; 100gm, 150gm, 200gm, 250gm, and 500gm.

You may use the packaging for advertising purposes and can print company information like logos and information regarding ingredients that are used in that specific packets.

The process of spice powder making to earn good money

Step 1: Cleaning

This is a very first step for spice making in which the ungrounded spices are cleaned manually for removing impurities like dust, stone, and dirt. Even some machines are available for the cleaning process. The cleaning process of spices requires around 15 liters of water for a 1m3 volume container.

Step 2: Drying

After the cleaning and washing process place them for drying under sunlight, the quality of the spice powder is based on the well-dried spice. If proper cleaning and washing are not done it leads to the development of food poisoning bacteria.

There are two types of drying processes as per the climatic condition.

Drying during the dry season

In the dry season, Air has less moisture so, you can easily dry your spices by just spreading them on the mat in the direct sun, which is considered as the cheapest method, but this may result, in mixing impurities to the spices by blowing air.

The solar dryer is known as the perfect option which avoids this type of problem; the solar dryer can be available and is packed container for easily drying your spices.

Drying during the wet season

As it is well known that during the wet season the moisture content in the air is high, thus the solar dryer will not be sufficient for proper drying, and therefore you must require an artificial dryer for the drying step.

Step 3 Roasting

After the spices are dried completely and properly, they are sent to the next step called the roasting of the spices which is important because it will assist to give the aroma, good taste, and color to spice powder.

Step 4: Grinding/Pulverizing

Grinding machine is used for grinding purpose for transforming the spices into powdered form. Many manual grinders can be employed for small-scale units; they can generate around 100 kg of spice powder every day using it. But the automatic grinding machine can yield about 20 to 25 kg of spice powder every hour. It is very essential to have a well-ventilated room to avoid dust.

Step 5: Grading

The grading is done based on the proportion of spices mixed and inclusion with their raw material as well as on the variety of spices (flavor), shape, size, density, and color.

Step 6: Sieving

The powdered spices are sieved to make sure spice powder and its texture is having a uniform size.

Step 7: Packaging

After the spice is modified to powder form, spice powder is weighted as per the required quantity and sent for packing. Then spices are later packed with the help of a polythene bag and sealed by using a sealing machine.

Expenditure or cost to start a spice powder making business

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The cost to start a spice making business.
The cost to start a spice making business.

Land cost and building cost = Rs. 1,00,000 per year

Cost of spice powder making machine set = Rs. 1,30,000 to Rs. 1,60,000. You can select based on the size of your business.

Raw materials cost = Rs. 50,000

Cost for packing material = Rs. 5,000

Cost for marketing your business = Rs. 5,000

Other expenses = Rs. 5,000

Total costs involved = Rs. 2,50,000.

Marketing strategies for selling spice powder

The grocery store is always not the correct place for this business especially when you are in the beginning stages as they mostly seek the popular brands. It is suggested to sell food shows, programs, farmer markets, or online.

Check out the below options for the advertising and promotion of your business.

Local market (retail market)

Hotel and restaurant: It is recommended to see in your locality or through the telephone directory or online to reach out or contact hotels and restaurants. You may inform them about your new brand and ask to have some samples if they are interested. You may also hire people for this purpose for you.

Contact local cooking schools: This is one of the alternatives yet worth to approach to promote your business in nearby cooking schools. You may announce a free cooking class and showcase the spice powder and its flavors.

Wholesale market for spices (FMCG): You may contact the wholesale shops and sell your spice products in the wholesale market in your area.

The online market for spices

You may even create an attractive website then spread the information to your customers about different flavors and also give an option to purchase online.

B2B websites: It is very useful if you can register your spice powder business on websites like Alibaba, Exportersindia, Indiamart, Tradeindia, etc. where you can have clients who could purchase in bulk.

B2C websites: Nowadays online shopping is not limited to fashion but it is not seen in every sector and the food industry is not an exception. It will be perfect if you could promote the business via websites like Bigbasket, Amazon, Snapdeal, Flipkart, etc. to sell your spice powder directly to the customer.

Export market

As informed earlier the Indian Spice powder is gaining its impression in foreign markets as well so if you are planning for export market then have the IEC code and you can export your product in the international market as well.

Brand and uniqueness: You can even advertise by publishing about the products in cooking magazines, local newspapers, and books and even distribute some promoting material in different areas in the location where you are having operations related to your unit.

The Conclusion to make money with spice powder making

With a perfect business plan, one can make good money in spice making business.



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