Profit in Food Processing Business (Cost to Start)

Introduction to profit in food processing business in India (Cost to Start)

The food processing industry is having great importance for India’s progress because of the significant linkages and synergies that it endorses between the two pillars of our economy, which are agriculture and industries. Rapid growth in the food processing segment and progressive development in the value addition chain are also of very essential for attaining favorable terms of trade for Indian agriculture both in the international and domestic markets. Another important and vital contribution of an efficient food processing industry is for the nation’s food security. It is well-known that our country faces post-harvest losses of about 25 to 30 percent and this must be reduced to give relief on food security and at least marginal reductions could contribute positively towards the income levels of the farmers.

Ideas to start and make a profit in the food processing business

The food processing industry in India stands to be one of the largest in terms of manufacture, export, use, and development in the entire world. This segment has a wide potential to contribute to the growth and employment prospects of the country. The Indian food industry tends to grow, thereby increasing its contribution to world food trade annually. In India, the food sector has appeared as a high-profit sector with the extreme scope in the background specifically, the food processing industry is getting famous as a high-priority area.

Market potential of a food processing business to make a good profit

The Indian food and grocery market stand as the sixth largest, with retail providing around 70 percent of the sales. It is predicted to grow at a rate of 104 percent, reaching US$ 482 billion by 2020. The Indian food processing industry contributes 32 percent of the country’s total food market, about 14 percent of manufacturing GDP, and 13 percent of India’s exports with six percent of total industrial capital.

Market potential of a food processing business.
Market potential of a food processing business.

The food processing industry in India has a complete turnover of about USD 65 billion which includes value-added products of about USD 20.6 billion.

Food processing comprises any type of value addition to agricultural or horticultural produce and the goods. The grading, food processing, and packaging all get included under this segment. The food processing industry sector in India is a global competitor in terms of production, exports, consumption, and growth prospects.

India is predicted to get an investment of $10 billion in the food processing sector and generate 1 million employment opportunities in the coming years. The food processing industry in India offers ideal opportunities in the production and export of processed food.

The basic list of license for initiating the below food processing units in India

The below is the list of license required to initiate the businesses below-

  • Registration of firm
  • GST registration
  • Trade license
  • Pollution certificate
  • MSME/SSI registration
  • EPI and ESI registrations
  • Trademark
  • FSSAI registration
  • IEC code
  • FPO act

List of profitable food processing business units in India 

In case if you miss this: Profitable Agriculture Business Ideas in India.

List of profitable food processing business units.
List of profitable food processing business units.

Below are the lists of profitable food processing businesses in India:

Bakery Business

Bakery business is the most popular business in the food processing units. The consumption of bakery items is increasing day by day and we all are aware that the morning is incomplete without the baked items like crunch and crispy biscuit, bread is the most popular breakfast in the morning and coming to the celebration, it is incomplete without the cutting the cake.

For starting the bakery business you need to know about the area location along with the bakery business plan. You can even start the business at your home as it requires very little space and you can do it by the orders placed. The investment for starting this business is very less you can even start with a minimum amount of Rs. 25,000. The profits in the bakery business are very high where it ranges from 50 to 60%.

Cashew Processing Business

India is a leading country in the cashew crop production and cashew processing; it is a major producing crop after tea and coffee. The cashew available in the market is the processed one. The cashew produced cannot be consumed in raw form. The processing of cashew is an important business in the food industry. Cashew nut processing business began in the late 60s, which is turn out to be the main producing crop after tea and coffee. The processed cashew nut could be consumed directly or in various forms of food. Cashew nut processing unit can be started at any location by determining the raw material availability. The profit margin in the cashew processing business is high. You can also get trained from cashew processing training centers. You can expect 50 to 60% of profits in the cashew processing business in India.

Dairy Processing Business

Dairy products are famous among different age groups and are consumed daily. If you can acquire some a good source of the milk then you may begin the dairy business.

You can initiate your dairy farm or you can prepare the dairy products at your home and then sell it to the dairy owner. Dairy product making business is classified under the food processing industry and if you are thinking to operate a dairy business from your home then you must verify the various government guidelines regarding the food processing industry.

Fruit Juice Production Business

The fruit juice processing business will provide you an excellent opportunity to earn good profits with low investment. You can also provide them according to the seasons. Fruit juice making is the most fastest-growing business in the Indian market. The fruit juice market has grown up to 30% as per the analysis from the last 10 years which has valued Rs. 1100 crores now and expected to grow more than 15% in the coming years. This rising demand for fruit juice making in urban areas is leading to an increase in the popularity of fresh fruit juice.

The awareness of health and healthy food, diet, etc. made the people health conscious and therefore, they are looking for a healthy diet daily, and hence having the fruit juice is one of the best options for them. Fruit juice making business has gained great trust and is a value-added market. You can expect a profit range of 40 to 50%

Ginger Garlic Paste food processing business to make a good profit

The ginger garlic paste is an important food preparation ingredient in every Indian kitchen. It is used in most Indian dishes to condiment various food preparation. Nowadays, people are interested in instant food and spices, and since garlic paste is ready to use ingredient so people consume garlic paste on almost every day for delicious food.

The paste market is growing by 25% which is estimated to be around 70 cores. All this is possible for them as people are more interested in a ready to use product and garlic paste is one of this item. You can make ginger garlic paste with low capital; the paste comes in different quantities such as in 50gm, 100gm, 150gm, and 250 gm. There are many ginger paste manufacturing companies, so you need to target the audience near your areas especially hotels, retailer shops, in nearby apartments, fast food business centers, etc.

Particularly in cities, people are looking for instant ginger garlic paste that is extensively consumed in the household. Apart from domestic use, the ginger paste is used in restaurants and hotels which are the major clients. The Indian consumer stands as the chief customer of this business; hence, it has a wide market throughout the country. Therefore, staring ginger garlic paste manufacturing business is a great money-making opportunity for start-ups. You can initiate the ginger garlic paste manufacturing business with an amount of Rs. 40,000. In this business, you can expect a profit range of 45 to 55%.

Lemonade Making Business

Lemonade is also called as Nimbu Paani in India, which is one of the preferred soft drink in India, there is no replacement to the lemonade when the sun gives heat in extreme summer and thus the intake of the lemonade is more during the summertime. And the need for the lemonade is great during the summer season in specific.

The lemonade making is very easy; it does not require any tough technique. You can initiate the lemonade making business by using very few types of machinery. You can just begin the business with Rs. 5,000 as it requires only a few ingredients. The profit scales will he high where you can get more than 60%. But it is seasonal.

Mineral Water Processing Business

Mineral water is a pure form of hydrogen and oxygen along with the presence of minerals like barium, manganese, iron, etc., based on the quality of raw water, the appropriate treatments are provided to the water to make it as standard mineral water. Mineral water is sent through the various processes before it is packed into the specified bottles for selling purposes.

Due to the growing number of domestic as well as an international traveler, the need for the mineral water bottle is growing for 5 years. Hence, the market potential of mineral water is more and one can initiate the mineral water making business with less capital. You can get good returns in this business.

Noodles Manufacturing

In the present fast-growing world, noodles 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. So because of the growth in the number of consumers the market potential for noodles is increasing day by day.

The noodles manufacturing process is very easy, so you can even start the business with noodle making machine for home. To initiate the noodles making business in India it just costs Rs. 50,000 to Rs. 80,000 based on the machinery cost. You can expect a minimum of 33% of profit margin in noodles making business if you start the business at a smaller scale. For a commercial scale, the profit goes up to 50%.

Papad food processing business to make a huge profit

Papad is an FMCG product. Any person can initiate papad making business as a small, medium, and large-scale category depending on the savings or capital available. Even, one can develop this business at their home. Nowadays, papad is available in numerous different flavors and tastes. Thus, you must analyze the specific demand. The overall papad market is progressively growing which is particularly more in the winter season.

You can initiate the papad making business with just Rs. 10,000 and earn huge returns as profits. It involves only less cost to start with. Even small business entrepreneurs can establish their business and meet the competition with the bigger brands by its quality and price in this business.

Pickle making food processing business to make a huge profit

Pickles are a delicacy that is consumed in almost all parts of the world. Pickle boosts the taste of meals. Spices are the core of pickle which renders the pickles their delicious and wonderful taste. As per the market need, you must determine the quantity of the unit. Some people start a small pickle making business in their home kitchens, want to design a pickle manufacturing business plan, while some opt for a commercial space right away. A home business has the benefit of not spending extra money on rent, and many areas and even states do have particular facilities for home-based food business. You can initiate the business with just Rs. 30,000to Rs. 50,000. You can expect a good profit margin in pickle making business, which would be more than 50% in pickle making business. The main point of attraction in pickle making business is taste. You need to attract the customers with quality and taste.

Potato Chips Making 

Potato chips making business is one of the money-making small-scale manufacturing business that individuals can begin even from sitting at home. Potato chips are crunchy and crispy potato slices which are fried in oil and preserved in salt, as potato slice faces the dehydration when it comes in contact with oil.

India is one of the largest potato crop growing country potato chips are an interesting idea, and it gives substantial value to the potato. Even though there are many potato chip manufacturers in India, but the sale for them in the market is high than any other product. Because it is everyone’s favorite snack item. You can initiate potato chips making machine price with just Rs. 22,000. You can make profits ranging from 50 to 60% in this business.

Rice Mill

Rice mill plant provides food for approximately 65% population of India, rice is an essential crop in India and it stands as the 45% of total grains production, every Indian have rice in the everyday meal.¬ The raw form of rice is known as paddy, which is not consumed by people directly; it must be processed to achieve rice from paddy. Rice mill plant aids to get the rice grain from paddy it eliminates the rice husk and rice bran if you are dwelling in paddy producing area you can begin the rice mill plant, rice mill plant is a money-making business with low capital. If you are thinking of a profitable business then the rice mill plant is one of the best options for you, here in this blog you will get the particularities relevant for initiating the business plan for the rice mill plant.

Spices Business

India is the major producer of spices in the world. 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. 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; chili powder and garlic powder stand top to the exporting spices list.

It is also a home-based business where the investment for spice powder making business involves very less i.e., Rs. 25,000 to Rs. 1,00,000 based on the scale of the business. You can expect huge profits ranging from 35 to 45% in this business.

Meat Processing Business

India stands top in producing the meat; hence the meat processing business is into good profits even though you plan to set up a small-scale meat processing plant. Meat is one of the most consumable food items in the country. Therefore it must have the longest shelf life. Meat processing business needs proper business planning and should have investment for meat processing plant business in India.

The reason for the quick growth in demand for processed meat is for the increasing awareness of protein-rich diet also about the diversities of the processed meat available in the market that will aid to boot the meat processing business. There are various types of meat processing plants that are available that are categorized as mentioned: Chicken processing plant, Pork processing plant, Goat processing plant, Sheep processing plant, Freshwater fish processing plant, and Seafood processing plant.

Tomato food processing business for making a profit

Tomato is readily available and highly growing crop in India, the tomato processing products are also famous all over the world the most famous products of the processing tomatoes are puree, sauce, juice, ketchup, etc.

Tomato processing products are easy for preservation and they are ready to serve food products, presently people are using such readymade food mostly, hence, the consumption of the tomato processing is high and market demand for the tomato processing food is growing day by day. You can earn good profits in this as tomato puree is an essential ingredient in many of the delicious food items. You can expect 45 to 50% of profits in this business.

Snacks Namkeen Manufacturing

Salted snacks Namkeen manufacturing business great scope for its huge market demand, the Nnamkeen or salted snakes are consumed during tea and drink hours. These have popularity not only in India but also famous abroad.

The main raw material for the salted snacks product is Gram pulses and spices along with different food additives and colors could be used to render superiority in the products. You can expect 50 to 60% of profits in this business as it requires very less investment starting from Rs.50,000.

If you are interested to grow food, please check this: Agri Farming.



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