Spice Powder Project Report and Business Plan in India
Hello friends we are here today with a new topic of “Spice Powder Project Report, Business Plan”.
This article comprises a detailed home-based spice business plan, estimated profit with required machinery, cost, manufacturing procedure, and necessary raw materials. Also, it comprises important info about opening a small-scale spice processing business with less capital.
The spice itself a significant industry in India. Our nation is the major producer of numerous spices including turmeric, ginger, chili, and cumin. Hence, the country gains a good exportation income from the spice industry.
The spice powder-making business will be classified under the FMCG segment. It is an important cooking item. Apart from preparing delicious food, spice is a necessary ingredient used for medicines and processed food segments. It aids in improving the taste and flavor in producing pickles, ketchup, sauce, chips, wafers, and in the bakery.
A small-scale spice business is very simple for a beginning. And you can plan for any size based on your investment capacity and required business size. Even, you can plan about opening using a single product. However, a medium-scale unit with multiple goods ensures better income and revenue.
A step-by-step guide to starting a Spice Powder making business, Spice Powder Project Report
STEP 1: Understand the spices powder product requirement
Commonly, you can make three kinds of products in this business. They are spice powder, whole spice, and spices for the specific recipe. Every product has its requirement in the market. Some consumers like using the spices in both ways either as a whole or as a paste. On the other hand, some desire spice powder only.
Some of the prevalent and widely used spices are Chilli, Turmeric, Black Pepper, Cumin, Coriander, Cardamom, Cloves. However, there is another market for the particular blend of spices for a specific food. The list includes chicken masala, meat masala, Sabji masala, chana masala, garam masala,, Kasuri Methi, chat masala, Pav bhaji masala, biryani masala etc. Additionally, the demand for organic spices is also growing presently. However, you must start the business as per the taste of your target market.
STEP 2: Design the business plan for Spice Powder making project report
Preparing a business plan or project report is a significant aspect of this business. Generally, a project report will include important series of information associated with the business. Additionally, it aids to get funding from investors or banks.
Apart from the investment estimate, you must have a proper marketing idea. You have to get a clear analysis of the marketing, distribution, and sales promotion techniques. Here we have summarised the essential stages for starting this business.
STEP 3: Registration, licensing and permissions required for Spice Powder making business
Spice is a food item. And food item processing needs various licenses and permissions from the Govt. organizations. However, it majorly depends on the legal rules region where you are planning to set up the business.
In India, you must take FSSAI permission for the spice start-up business. It is prudent to talk with a small business consultant about the particular licenses and permissions for your new venture.
- Business Entity: The first registration for any business is to register it as a business entity by knowing about the form of the organization. It could be as a sole proprietorship or a partnership or a limited liability partnership or a one-person company. This will help in availing a few benefits to the business and must, therefore, be selected carefully before registering the business at the Registrar’s office.
- FSSAI registration: As Spice Powder Making is classified as the processing of food or food products and thus as per the definition requires an FSSAI registration. Food Safety and Standards Authority of India (FSSAI) is meant for protecting and promoting public health by regulation and supervision of food safety hence FSSAI is a mandatory registration/license for the business. The FSSAI registration process is entirely online and quite easy to follow, once the documents are ready.
- Shop Act or Trade License: As the Spice Powder Making business for example in Maharashtra, India requires applying for a Shop Act License from the local municipal authority to run the business. This license helps manage the working conditions along with working hours, leaves, wages, holidays, etc. of the employees and supports the business to run smoothly.
- Udyog Aadhaar Registration: As Spice Powder Making is categorized as a small business and hence it must be registered under Udyog Aadhaar which is a registration and recognition for MSMEs- micro, small, and medium enterprises.
- GST Registration: Every business, including the Spice Powder Making, should associate with taxes at some point and for monitoring a single uniform taxation structure, the business should get a common GST number which stands for Goods and Service Tax.
- BIS certification: Apart from these registrations the business should get BIS certification as well as tax liabilities.
- No Objection Certificate from State Pollution Control Board: Spice Powder Making doesn’t cause any pollution so no clearance is needed, however, it is recommended to check it with the State Pollution Control Board of the locality where the business is established.
STEP 4: Machinery for Spice Powder making business
According to the goods you want to produce, you will need to get the appropriate machinery. Some of the common machines are mentioned here.
- Packaging machine
- Spice grinder
- Pouch sealing machine
- Weighing scale etc.
STEP 5: Raw materials required for Spice Powder making business
The necessary raw materials are several types of unground spices. The list contains turmeric, coriander, cumin, black pepper red chilies, etc. Also, you will obtain a proper pouch as the key packaging materials. Next, you have to obtain corrugated cartons used for bulk packaging.
STEP 6: Manufacturing process of Spice Powder making business
The process of manufacture comprises cleaning, pulverizing, drying, sieving, and packaging of spices for instance chili, turmeric, pepper, coriander, etc. either individually or in combination with various spices. The manufacturing method is very well established and is not difficult concerning technical operations.
In the first step is necessary to clean the unground spices that are done by staff to separate impurities like dirt and stones. Later wash with water. After drying under sunlight, they are graded and ground with a grinding machine to get a powder texture.
If you wish to produce a particular mix of spices, then it is necessary to create the blend. And the final thing is the packaging. The storage and proper circulation are vital aspects in getting long-term success in the spice powder-making venture.
Calculate the investment for Spice Powder making business
According to your business, you have to calculate the total venture investment of your business. Generally, for a small-scale operation, two different kinds of investment are seen- fixed capital and working capital. Some of the major attentions in fixed capital are the unit, building construction, machinery, registrations, and expenses for licensing, etc.
On the other hand, working capital must be used for procurement of raw materials, salary for staff, distribution, marketing, and tax obligations. If you don’t have your land, it is sensible to start the business on rental or lease area. Moreover, it’s also important to verify if there is any scheme or grant possibility from the Govt.
Spice Powder Project Report – Investment required
|FINANCIAL ASPECTS||Amount in Rs|
|Processing shed 2500 sq ft@250/sq ft||6,25,000|
|Store 1000 sq ft @ 600 /sq/ft||6,00,000|
|Office cum laboratory 400 sq ft @400 /sq.ft||2,40,000|
|Water boring and distribution||50,000|
|Compound wall, watchman shed and road development||12,00,000|
|Machinery and Equipment||Total value in Rs.|
|Micro pulveriser with 10 HP||1,60,000|
|Disintegrater 12” with 7.5 HP||60000|
|Hot air drier cabinet type elect.||30000|
|Platform weighing balance||8000|
|Counter scale balances||10000|
|Sieving m/c. locally fabricated one||5000|
|Automatic form fill and seal m/c||1,80,000|
|Automatic form, fill & seal machine||5,00,000|
|Office furniture, comp printer||40000|
|Erection, electrification charges||1,03,300|
Spice Powder Project Report – Operative Expenses
|Items||Value in Rs.|
|Advance for packaging material (Pouch, cartoon, etc )||1,50,000|
|Sales tax regn.||5,000|
|Other misc. exp.||5,000|
Fixed capital Investment = 27,15,000 + 11,36,300 + 1,78,300 = Rs. 40,29,600/-
Spice Powder Project Report – Working capital
Capital investment required for salaries and man power = Rs. 28,500
Capital investment required for raw materials required = Rs. 7,14,000
Charges for utilities = Rs. 10,200
Other miscellaneous charges = Rs. 40,000
Total working capital per month = Rs. 7,92,700
Total investment required = Rs. 64,07,700
Cost of production per annum = Rs. 1,04,56,874
|Item||Qty. (in kg)||Rate||Value in Rs.|
|Formulated curry powder||290||200||58,000|
|Total Value in Rs.||11,10,640|
Turnover per annum = Rs.11,10,640 X 12 = Rs.1,33,27,680
Profit = Turn Over – Cost of Production = 1,33,27,680 – 1,04,56,874 = Rs. 28,70,806
Net Profit Ratio = Profit x 100/ Turnover = 21.5%
Rate of return = Profit x 100/Total investment = 44.8 %
Break-even point = Fixed cost X 100/FC + profit = 31%.
Marketing strategies to promote your Spice Powder in the market
In case if you miss this: Essential Oil Extraction Business in India.
You could try selling your Spice Powder in local markets or you may sell online. You can also register in some of the popular B2B websites and B2C websites and use online markets to advertise your Spice Powder. You can also sell your products in small stores, supermarkets, shopping malls, school canteens, etc. Promotion of your product through social media is very necessary to have a huge number of clients in this way you can grow and promote your business.
- 10 Profitable Disposable-Based Business Ideas: Low-cost and Low-Investment
- 10 Profitable Solar-Based Business Ideas: Low-cost and Low-Investment
- 7 Profitable Biodegradable-Based Business Ideas: Low-cost and Low-Investment Manufacturing Businesses
- 10 Profitable Insurance-Based Business Ideas: Low-cost and Low-Investment
- 10 Profitable Construction-Based Business Ideas: Low-cost and Low-investment Businesses
- 10 Profitable Manufacturing-Based Business Ideas: Low-cost and Low-investment Businesses
- 9 Profitable Glass Based Business Ideas: Low-cost and Low-investment Manufacturing Businesses
- 9 Profitable Lemongrass-Based Business Ideas: Low-cost and Low-investment Manufacturing Businesses
- 9 Profitable Spirulina-Based Business Ideas: Low-cost and Low-investment Manufacturing Businesses
- 10 Profitable Herbal-Based Business Ideas: Low-cost and Low-investment Manufacturing Businesses
- 11 Profitable Neem-Based Business Ideas: Low-cost and Low-investment Manufacturing Businesses
- 12 Profitable Synthetic-Based Business Ideas: Low-cost and Low-investment Manufacturing Businesses
- How to Choose the Right F&O Trading Platform – A Comprehensive Guide
- 13 Profitable Handmade Business Ideas: Low Cost and Low Investment Businesses
- 10 Profitable Meat Based Business Ideas: Low Cost and Low Investment Businesses
- 13 Profitable Pets Based Business Ideas: Low-Cost and Low-Investment Services
- 13 Profitable Medical Equipment Business Ideas: Low-cost and Low-investment Businesses
- 10 Profitable Beauty-Based Business Ideas: Low-Cost and Low-Investment Manufacturing and Services
- 10 Profitable Citrus-Based Business Ideas: Low-Cost and Low-Investment Manufacturing Businesses
- 10 Profitable Leather Based Business Ideas: Low-Cost and Low-Investment Manufacturing Businesses
- 7 Profitable Garlic Based Business Ideas: Low-cost and Low-Investment Production Businesses