Popcorn Making Project Report, Business Plan

Introduction to Popcorn Making Project Report, Business Plan: Popcorn, the name is prevalent not only in India but also in various countries, from kids to adults. Yes, we are discussing the same Popcorn snack that is commonly famous among people of all age groups. Most people consume while watching a movie, or a stage show, or during any other interesting program on television. However, kids eat them for they enjoy them as a delicious snack item. Popcorn is tasty and simple for digestion. Even if you consume a large quantity, it does not badly affect your health because it gets digested rapidly. The demand is always seen in the market, so given these requirements of the people, an individual can start manufacturing Popcorn Business with low financial assistance. In this article, we will summarize all major aspects related to how to start a Popcorn Manufacturing Business.

A guide to Popcorn Making Project Report and Business Plan

Popcorn (Image source: pixabay)

Why Popcorn Making has more demand?: Popcorn is a commonly preferred snack item. It is a modified form of corn in which the hard corn grains get heated and inflated, and these inflated corn grains are sold as Popcorn. Hence, stoves and pans are essential to make popcorn in villages while machines are employed for commercial preparation. But their quality relies on the special category of maize as high-quality popcorn will not be obtained with any type of maize. Therefore, for the success of this Popcorn Manufacturing business, it is essential to pick a proper type of maize.

Popcorn Making as a business opportunity

Can we start Popcorn making as a business opportunity? Yes, this business can be initiated very easily in cities as well as in villages. For this, you don’t need a specific area or huge investment. You can even install a popcorn machine on a ready-made handcart. One can opt for packing machines for selling artistically if planned smartly. However, if one thinks it is expensive and plans to invest less money, then this packing can be performed manually.

Market potential of Popcorn Business in India

There are many proper reasons and selling aspects. Popcorn is easy for digestion, a very delicious and famous snack item. This is why Popcorn is gaining popularity among customers of different ages. Since customers are increasing, its manufacturers are also rising in India. In cities, its usage is growing at a fast pace as the number of movie theatre complexes in the country is snowballing. With the huge potential for sales, people are inclined to begin the business. With a planned profit margin in this segment, it can be helpful for anybody to start a Popcorn Manufacturing Business as a start-up venture.

List of market areas to start Popcorn Business

If you want to begin this business in a rural region nearby, you will use a wheelbarrow, and then you could install a machine on it. Then you will have to procure the raw material. You can keep the rate from Rs. 5 to Rs. 10 for acquiring raw material for popcorn in it and packing using the machine.

The other way is to start a popcorn-making company. You can plan by spending a little bit of capital because if you are doing this business in the city somewhat larger scale when compared to the village, then you will need proper machinery and proper packaging stuff.

List of licenses, permits and registration required for Popcorn Business in India

If you are initiating a business in a village area, you must not acquire any type of approvals, but for a large-scale business in an urban region, you will have to spend more money on it and you must acquire some licenses that are summarised in the following section.

This is the primary registration or any business that is done under the Registrar of Companies. For this, the owner can approach a business consultant as well. The industry could be registered as micro and medium enterprises based on size.

Since the business is associated with food,

  • A food license (FSSAI) must be acquired. So that during packaging the information will be printed on a packet of popcorn.
  • The trademark registration for securing the brand name is important.
  • Popcorn Manufacturing businesses need to apply for GST registration.

Area required to start Popcorn Making Business

About 450 Square Feet that is about 50 yards is appropriate for starting a small-scale Popcorn Manufacturing Business in the beginning. However, the owner should plan to arrange various places to perform several things as per the operations of his business. The business could demand one or two persons who can take care of the operations associated with the machine, electricity, and water facilities. In addition, you must keep a vehicle, driver, and marketing person to find out potential customers.

Machinery required to start Popcorn Making Business

As far as popcorn making machines dealt, various types of popcorn making machines are existing in the market. It also has machines that use LPG gas. One must select the machine thinking of production capacity and the resources accessible to him. Even, while choosing a Popcorn machine, check whether a machine can inflate corn grains. Not only that, a load weighing machine is necessary to weigh popcorn. However, there are some firms such as Prestige, etc., that have allowed domestic popcorn making using Popcorn Maker.

Raw materials required to start Popcorn Making Business

Some people include butter and salt in household utensils such as pan, pickle, etc. But it is somewhat tedious to say how safe it is to sell this popcorn commercially. Maize is cultivated in many states of the nation and is not only used for popcorn but is the raw material for oil, starch, flour, liquid glucose, etc. Despite that, it is readily obtained in every segment due to the abundant cultivation. Other materials such as ghee and salt are even essential for the popcorn-making process.

The manufacturing process of Popcorn

In case if you miss this: Feed Mill Project Report.

The manufacturing process of Popcorn
Manufacturing process of Popcorn (pic credit: pixabay)

The process of making popcorn using the Popcorn Machine is very simple. If the owner purchases direct maize from the cultivators, he can get more benefits. For this, the individual should primarily separate the corn grains from maize and next dry them properly under sunlight. After the grains get dried, these corn kernels’ impurities like corn hair will be removed. After that ghee and salt will be included in the heating segment of the machine.

Later the corn kernels are added so that the grains are transformed into popcorn due to heat. The machine will easily produce popcorn and automatically the popcorn is made. The owner has to follow the moisture-free packaging steps of Popcorn to ensure the quality of popcorn is not hampered after it is served to the customers.

Popcorn Making Project Report/Economics of starting a popcorn making business in India

Raw Corn
Raw Corn (Image source: pixabay)

Capital Expenditure

Land and Building: Rs. 1,00,000

Equipment (Popcorn m/c, Pan, Mixer, Packing m/c etc.): Rs. 1,65,000

Total Capital Expenditure: Rs. 2,65,000

Working Capital: Rs. 1,63,000

Total project cost: Rs. 4,28,000

Makka, Ghee, Salt etc.: Rs. 1,635

Corn seeds: Rs. 1,20,000

Lables and packing material: Rs. 50,000

Wages (Skilled & Unskilled): Rs. 60,000

Miscellaneous Expenses: Rs. 5,000

Depreciation: Rs. 2,150

Insurance: Rs. 2,650.

Interest (As per the PLR)

a. C.E.Loan: Rs. 34,450

b. W.C.Loan: Rs. 21,190

Total Interest: Rs. 55,640

Fixed Cost: Rs. 1,54,100

Variable Cost: Rs. 2,97,075

Total costs: Rs. 4,51,175

Expected sales: Rs. 6,70,000

Profit = Rs. 6,70,000 – Rs. 4,51,175 = Rs. 2,18,825.

Final words: Hope this post will aid you to begin popcorn business properly in your area.


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