Profits in Corn Flakes Making Business (Cost to Start)

Profits in corn flakes making business (Cost to Start)

Are you interested to initiate corn flakes manufacturing business? If you are also in need of corn flakes manufacturing business plan samples? Check here a comprehensive corn flakes manufacturing business plan for your assistance.

Ideas to start and make profits in corn flakes making business

If you are dwelling in an area that is rich in corn or maize production, then you should think about beginning this business. Moreover, you can start the corn processing business using low capital. An additional benefit is this business does not require a large area for production.

You can check out a few of the chief corn-producing countries like the USA, Brazil, China, the EU, Ukraine, Mexico, Argentina, and India. In particular, if we consider India as our main market then the popular Indian corn-producing states are Madhya Pradesh, Karnataka, Andhra Pradesh, and Rajasthan.

Corn flakes are having nutrition value and considered very healthy. This type of food business is famous in both developing as well as developed countries. Including popcorns, it is considered as one of the highly prominent commercial food products that are obtained from maize. This is also a very common food for breakfast. Usually, people consume it with warm milk. It is thus a quick meal and even acts as an appetizer.

Maize renders very nutritious products. In addition to that, these nutrients are very essential for the balance of the human diet. The different substances that are needed for the human diet are proteins, fat, carbohydrates, starch, and water. Apart from the basic corn flakes, there some variants are also now prepared which offer a range of delicious tastes and flavors. These are flakes with honey or nuts or almonds, etc.

The corn flakes making, business potential for good profits

The demand for readymade food is growing rapidly. Moreover, people are focussed on a healthy diet. Thus, a shift is seen at breakfast for an average Indian household. The bustle about the first meal of the day keeps the packaged breakfast foods as a top priority.

Even though several other breakfast bowls of cereal are also obtainable in the market flakes are still attaining their popularity. Apart from the good taste, the crispy texture, corn flakes are even famous for their friable nature and its delicious flavor. And the most significant part is it can be ready for consumption without any need for cooking arrangements. This is the main cause for the demand of corn flakes in the market. Hence, initiating corn flakes manufacturing business is a profitable project for investing.

Nutrition facts of corn flakes

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• Carbohydrates: 8 – 10%
• Proteins: 9 – 7%
• Starch: 50 – 60%
• Fats: 10 – 0.15%
• Water: Small quantity.
• Sugar: 10%
• Potassium and Calcium -3%

Corn flakes making – a business plan for good profits

Business Compliances

As you are planning for a food processing business like corn flakes manufacturing then, there are few registrations and licenses that must be attained. First of all, you should register your business based on your state legal guidelines. And then you should verify the details about licenses you must acquire for any manufacturing unit. In India, you must get permission from the FSSAI organization. Also, you must apply for BIS certification too.

Apart from the business licenses, you must check about the upcoming tax liabilities as well which differs from state to state. It is recommended to contact a local tax consultant about it. In India, you must have a business PAN Card, current account, as well as TIN number.

Business plan

Before starting the business, you should prepare a business plan carefully. The corn flakes making business plan comprises many essential aspects of the business such as executive summary, objective, mission, vision, business model, investment, and marketing strategy.

A business plan is one of the most significant tools for opening the business. Additionally, a business plan aids you in properly starting the business. Before developing the plan, perform some market research. Recognize what types of products are most widespread in the market. How other reputable companies are proposing their products. Additionally, see their sales promotion techniques. These all will assist you in designing a perfect business plan for your business.

Location

The location is one of the chief deciding aspects in the manufacturing segment of any business. You can only arrange the manufacturing unit where you can avail of the corn easily to your unit. Because if you obtain the maize from far away location, then the transportation cost will be more which will reduce your returns and finally affect the net profit.

As you are beginning a product-based business, you must consider many important aspects from starting only. Commonly, a small-scale corn flakes production plant needs about 1000 square feet area for the entire activities. However, the need for the area varies depends on the desired output.

Machinery

The corn flakes manufacturing plants usually have the machinery as well. Check out a list of general requirements.

• Silo for storing corn grain constructed by brick & R.C.C.
• Air classifiers with all accessories
• Separator
• Storage Bins
• Weighing Balance
• Rotary steam cooker
• Agitator or lump breaker
• Pan cooker or steamer
• Germs Separator
• Heavy flaking machine
• Rotary oven
• Conveyor
• Inspection conveyor
• Automatic Packing Machine
• Screening and cooling Equipment
• Mixer for flavoring syrup
• Boiler Cap
• Shifter
• Other miscellaneous equipment.

Acquire the machines as per your need. Additionally, before keeping the final order check the customer reviews of the machine supplying firms. Make sure you note the warranty period and servicing possibilities too.

Raw materials

Corn is the chief raw material in this business. But, it is a seasonal item. Hence, you have to procure the entire corn during the harvesting period only. And you must store the raw materials properly. Apart from the corn, you must obtain salt, sugar, etc. which are available round the year.

Additionally, you must procure the packaging materials. And the packaging has a crucial role in several segments such as for looks, shelf life, etc. You must have an attractive and moisture-proof packaging material to have a successful and finished product that could be sold in the market easily.

Staffing

Usually, there are three major segments where you must have people in this business. These basic areas are manufacturing, operational, and marketing. Try to appoint experienced and skilled candidates for the manufacturing process. However, a factory supervisor is inevitable. Additionally, you will hire an accountant and other staff for daily operations. Apart from these, keep an efficient sales team.

The manufacturing process of corn flakes to make good profits

The corn flakes manufacturing process is easy and simple. Generally, there are three steps if we observe. They are grain cleaning, grit section, and final production.

Step 1: Grain cleaning

You must use the yellow and white corn (Hybrid) for the manufacture of corn flakes. Initially, you must clean the corn grains. And then polish them to eliminate impurities such as dirt, dust, etc. You can use silos storage of the corn grains. Take the use of air classifiers for removing dust, dirt, and germs. You can use the separator to distinguish large grains from small grains.

Step 2: Corn grit section

After polishing grains, mill them to separate germ and bran. Next, proceed to cook the broken pieces in the rotary steam cooker with pressure. Then feed the flavor syrup of sugar, salt, malt, and water during the process as required. The cooked material possesses moisture which raises to around 36 – 37%. Then again clean and wash the grits using air classifiers. In addition to that, separate the large and small grits using the separator. Then store them in bins. Keep the grits to an agitator or lump breaker.

Dry the materials. Place the dried materials in the de-moisturizing tank for some hours. Because you will ensure the left moisture is equally distributed. This is a very significant process for uniform pressing in the flakes.

Step 3: Corn flakes section

Finally, you will pass the grits or cooked material to a heavy flaking machine. Here you can transform the grits into flakes by pressing the grits. It is cooked using a water roller.

Then transfer the flakes instantaneously to the rotary of any other oven for roasting. Then check the roasted flakes to remove less standard flakes. Then directly transfer the corn flakes to the packing section.

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Cost to start corn flakes making business

In the corn flakes manufacturing business, mainly, there are three kinds of expenditures. These are regarding the arrangement of the plants including its machinery, raw material procurement with costs associated with operations, and marketing expenses.

You need to arrange finances ranging from Rs. 8 lakhs to Rs. 10 lakhs. Because the price of corn flakes making machine is little high which ranges from Rs. 4 lakhs to Rs. 15 lakhs based or more on the capacity of the production scale.

However, you can initiate the business with your savings or by availing loans from the banks. But in this case, the bank will surely ask for the collateral security for the loan amount.

Profits in corn flakes making business

In Corn flakes making business, you can expect a profit range of 35 to 40 % as here the machinery cost is high you need to avail the bank loan. But there is no doubt that you will be surely into profits with no period.

How to promote corn flakes in the market

A small-scale corn flakes manufacturing company should focus to establish the distribution network carefully. Also, reach out to the institutional segment. This type of product requires careful branding and sales promotion methodologies.

How to sell your corn flakes 

Moreover, you can sell corn flakes even online stores as well which is trending nowadays through your website if your budget permits or via the popular e-commerce sites.

You can sell your Corn flakes in local markets or you can even sell in the medical stores. You can also register in B2B websites and B2C websites in online markets to promote Corn flakes products.

You can also sell your products in supermarkets, small stores in shopping malls, etc. Advertise about your product through social media to get a huge number of clients in this way you can increase and promote your business. Even though there are several Corn flakes manufacturers in India, but the demand for encouraging the new product is also high because of its medicinal properties. So, you need not worry about the market. You can sell your product based on the Corn flakes wholesale price in India.

To reduce input costs and make more profits in corn flakes manufacturing in India, you can start Organic Maize Farming.