Noodles Manufacturing Project Report - Business Plan

Noodles Manufacturing Project report and Business Plan

Introduction

In this article, we plan to explain how to start commercial noodles manufacturing project report or noodle-making economics and business plan. Even this article summarizes a noodles-making sample project report guide highlighting cost, profit, and noodles-making machine price.

A small-scale noodle manufacturing business is a moneymaking business in India. Based on the local demand, you can also manufacture instant noodles, spaghetti, vermicelli, egg noodles, macaroni, and pasta. As a value-addition, you can also manufacture ready-to-cook packaged soup from the same plant. So, the business has several opportunities and growth prospects.

Noodles are a common food product in India. Almost every household consumes noodles regularly. Besides, hotels, restaurants, fast- food stalls, clubs purchase noodles regularly. Hence, the product has an extensive market throughout the nation. Additionally, the product has a huge export possibility in the Asia Pacific region.

With moderate capital investment, an individual can begin a profitable noodle-making business. The business needs awareness about retail distribution and management expertise.

Step by Step guide to start a noodles manufacturing project report

Market potential of Noodles Manufacturing Business

Increasing population, rapid economic development, growing purchasing potential are a few major reasons for growing the noodles need in the urban area. It’s a ready-to-eat food item and the shelf life is more. So, the working women and housewives both desire to use this food item on regular basis.

Beginning a small-scale business in the food unit needs to analyze the local market properly. First of all, check the most popular noodles brands available in your locality and region. Check their quality, packaging pattern, quantity packing, and rate. If possible, try to know their product promotion techniques, distribution policies, retail sales commission, etc. It will aid you to know the details about the marketing possibilities of noodles.

Prepare Noodles Manufacturing Project Report

While initiating this business, it’s recommended to craft a business report. It is also suggested that you contact some industry experts to take some ideas while crafting the plan. Whoever may prepare the project report, it is essential to add details of machinery cost, raw material expenses, etc. The financial segment of the project reports majorly based on the technical stuff. Here, you can have a rough estimate of cost calculation for the Noodles manufacturing plant.

Arrange project cost

After preparing the business plan, you will have to look for capital. There are various Govt. subsidy schemes allotted nowadays for small-scale start-ups. So, you must search for them carefully and apply them one by one. If you don’t have investment or savings, then you can apply either for a mudra loan or a specific loan for the machinery hypothecation or get some overdraft facility.

License, registration, and permissions required to start Noodles Manufacturing Business in India

Initiating a small-scale noodle-making business demands the below registration and essential licenses. Noodles or Chow Mein is a consumer durable processed food product so the business requires specific registrations and permissions before beginning the unit. The following are the permission and licenses required to make food products in India:

First of all, it’s important to get your organization registered.
Need to avail GST number
The Trade License could be applied by approaching Municipal Authority. They can charge some amount for this purpose as a fee.
Apply for MSME Udyog Aadhaar online. Thus, will aid in availing the Govt. schemes and loans.
This manufacturing category is under food processing operation and hence demands FSSAI registration. It is obligatory
Also, you can approach the BIS certification if you want to sell the product across the nation. The BIS specification for Noodles is IS 1485:1976.
It’s necessary to gain Trademark registration of your product or company.
For exporting your product abroad, you must get an IEC number.
Acquire the essential trade license through the local authority.
Next, apply for the VAT registration.
After that plan for the essential BIS Certification (Bureau of Indian Standards) for your business.
Then, register the trademark for the noodles-making business.
For this business, there is no need for a NOC from PCB- Pollution Control Board. But it is suggested to check with the local office.
Also, it is necessary to get registered with ROC for your business.
Being a food processing product, you should take the FSSAI (Food Safety and Standards Authority of India) license as well.
Apart from that you should concentrate and make sure the plant follows the GMP and PFA Act which are very important.
All the items produced should get ISO certification for authenticity and trust in people so apply for ISO 9001 certification too.
Finally, you have to install proper exhaust fans at appropriate positions to keep the environment comfortable inside the unit.

Area required to set up the Noodles Manufacturing Business Unit

Depending on the plant size, you will require a commercial cover space. Generally, you can begin a small-scale noodle manufacturing business in around 800 sq. ft. area. You will require a power and water connection. Also, verify if transportation is possible.

If you don’t have to own any area, then it’s better to use a rental space and initiate the business. It reduces the overall project expenses and you can use the money for business growth and marketing purposes.

Machinery required to start Noodles Manufacturing Business Unit

You may also check this: How To Start An Essential Oil Extraction Business.

After acquiring the space, you will have to get the noodles-making equipment. You can check out many machinery suppliers throughout India. So, check the machine cost properly. Also, check the customer’s reviews before purchase if possible. Buy the machine after confirming it as a reliable and prevalent machine supplier or retailer.

The specific machinery needed and the machine cost are determined by the operation mode (semi-automatic or fully automatic) and unit capacity. Here, we have enlisted some of the essential machinery.

Vertical type powder mixer with motor complete
Dough mixer blade type
Noodles making power operated machine with different size die-heads
Aluminum/Galvanised iron water tape pipeline fittings
Water boiler fuel heated
Weighing machine
Wooden trays 1000 pcs.
Plastic Buckets with the cap.
Packaging machine

Raw materials required to start Noodles Manufacturing Business Unit

The main raw materials are maida or wheat flour, and starch. Apart from that, you will require some sugar, spices, common salt, garlic, Sodium Bicarbonate, ginger, etc. The requirement of the accessory ingredients is determined by the particular taste and flavor that you desire to prepare noodles.

Moreover, there is a requirement for packaging stuff. It is important to pack the noodles in a moisture-proof material. Even for bulk packages, a strong outer carton box is required.

Noodles manufacturing process

The major manufacturing process is dependent on the availability or unavailability of gluten. However, you can include a small number of nutrients but these do not affect the organoleptic makings or processing properties of the material.

In the beginning, stage, pour the water in the extrusion step. And separate it after drying. However, you can even plan for selling wet noodles as a fresh product to the local fast-food owners or food stall owners.

Wheat flour noodles are commonly produced by sheeting and rolling, while other types are typically prepared using extrusion or batter cooking process.

The modern instant noodles are steamed and fried using Hydrogenated Vegetable Oil, which has a fat quantity of about 20%, and added salt and edible gum with a shelf life of about 6-8 months. Instant noodles can be cooked rapidly, only requires 2-3 minutes for boiling or rehydration with boiling water.

You can prepare noodles in varied sizes, hollows, or as solid. The flavor and taste in the instant noodles are developed during the re-hydration in boiling water through the addition of a tastemaker of the needed flavors.

Channel distribution has an important role in the noodles manufacturing business. Besides, you have to advertise the product and your brand for attracting people.

In case if you miss this: How To Start A Bamboo Crafts Making Business In India.

Investment required to start Noodles Manufacturing Business

Noodles Manufacturing Project Report and Economics

Project Cost:

Land and Building: Rs. 7,75,000

Machinery and Equipment: Rs. 3,74,000

Pre-operative Expenses: Rs. 35,000

Total: Rs. 11,84,000

Total Working Capital Rs. 6,55,425 (for three months)

Total Capital Investment: Rs. 18,39,425.

Financial Analysis;

1. Total recurring cost per year: Rs. 26,21,700

2. Depreciation on building @ 5%: Rs. 33,750

3. Depreciation on M/C @ 10%: Rs. 35,200

4. Depreciation on office equipment @ 20%: Rs. 4,400

5. Interest on total capital investment @ 14%: Rs. 2,57,520

Total: Rs. 29,52,570.

Turn Over per year;

Fresh Noodles in 200 gms (7.5 Lakh Packets): Rs. 39,37,500.

Net Profit (per year);

= Sales – Cost of production

= Rs. 39,37,500 – Rs. 29,52,570

= Rs. 9,84,930.

Rate of Return;

ROR= Net profit per year × 100 / Total investment = Rs. 9,84,930 × 100 = Rs. 18,39,425 = 53.5%

Break Even Point;

B.E.P. = FC × 100/ FC + P = Rs. 6,05,550 × 100/6,05,550 + 9,84,930 = 38.07%.

Conclusion of noodle manufacturing business

If you are not confident enough about noodles making business on a large scale, it is recommended to start from home initially and get an idea about your immediate market. Currently, some brands sell good quality noodles-making machines online.

The market potential of noodles is growing daily. If planned with proper analysis and forecast, you can gain a lot of money from noodles making venture.

1 COMMENT

BIMAL OLI May 6, 2022 At 12:09 am

sir i am on the initial stage of this business but i have some difficulties on the market cause there are some big players on this market so how can i differ from this players. there is a big competion of a price rate on the market . so all of the inventory cost same but how can they sell in loss.please reply me on this topic
.

Noodles Manufacturing Project Report – Business Plan

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