How to Start a Profitable Biscuit Manufacturing Business in India

India’s love for biscuits is undeniable. From morning tea-time snacks to evening munchies, biscuits are a staple in almost every Indian household. This consistent demand makes a biscuit-manufacturing business a promising venture. If you’re looking to start your own food-manufacturing unit, this guide will walk you through the entire process step by step.

Why Start a Biscuit Manufacturing Business in India?

• Unwavering Market Demand:
  • Biscuits are a staple in Indian diets, consumed across all age groups and socioeconomic strata.
  • The market’s resilience is evident in its consistent growth, driven by increasing urbanization and changing lifestyles.
  • According to industry reports, the Indian biscuit market is projected to witness substantial growth, exceeding billions of dollars in the coming years, making it a highly profitable sector.
• Product Diversification and Innovation:
  • You can cater to diverse tastes by offering a wide range of biscuits, from classic glucose and cream biscuits to premium cookies and crackers.
  • Innovation in flavors, ingredients (e.g., healthy options like multigrain or sugar-free), and packaging can create unique selling propositions.
  • Real world example: Companies are now offering biscuits with added vitamins, or with traditional Indian spices, to increase their market share.
• Scalability and Growth Potential:
  • Starting with a small-scale unit allows you to test the market and gradually scale up production as demand increases.
  • Expanding your distribution network and exploring export opportunities can further boost growth.
• Relatively Manageable Startup Costs:
  • While investment is required, it’s often lower compared to other manufacturing industries.
  • Strategic planning and efficient resource management can optimize startup costs.

Developing Robust Plan for Biscuit Manufacturing Business

A well-defined business plan is your roadmap to success.

• Executive Summary:
  • Provide a concise overview of your business concept, target market, and financial projections.
• Market Analysis:
  • Conduct thorough research on market trends, consumer preferences, and competitor analysis.
  • Identify your target audience (e.g., children, health-conscious consumers, premium segment).
  • Analyze competitor pricing, product offerings, and distribution strategies.
  • Research local market conditions and trends.
• Product Line and Manufacturing Process:
  • Define your product range, including biscuit types, flavors, and sizes.
  • Outline the manufacturing process, from raw material sourcing to packaging and distribution.
  • Include a detailed flow chart of production.
• Marketing and Sales Strategy:
  • Develop a comprehensive marketing plan, including branding, advertising, and promotional activities.
  • Identify distribution channels, such as retail stores, wholesalers, online platforms, and direct sales.
  • Plan for digital marketing and social media presence.
• Financial Projections:
  • Estimate startup costs, operating expenses, and revenue projections.
  • Develop a cash flow statement, profit and loss statement, and balance sheet.
  • Analyze your break-even point and return on investment.
• Management Team and Organizational Structure:
  • Introduce your team and their expertise, highlighting their relevant experience.
  • Define roles and responsibilities within the organisation.
• SWOT Analysis:
  • Identify your strengths, weaknesses, opportunities, and threats.

Detailed Setup Cost and Capital Investment for Biscuit Manufacturing Business

• Land and Building:
  • Renting or purchasing a suitable space with adequate ventilation, hygiene, and storage facilities.
  • Consider proximity to raw material suppliers and transportation hubs.
  • Factor in cost of modifications to meet food safety standards.
• Machinery and Equipment:
  • Mixing machines (planetary mixers, dough mixers).
  • Baking ovens (rotary ovens, tunnel ovens).
  • Cooling conveyors.
  • Packaging machines (flow wrapping machines, sealing machines).
  • Storage tanks for oil and other liquids.
  • Quality control equipment.
• Raw Materials Inventory:
  • Initial stock of flour, sugar, oil, flavors, and packaging materials.
  • Factor in storage conditions to prevent spoiling.
• Licensing and Permits:
  • FSSAI registration/license fees.
  • GST registration fees.
  • Trade license fees.
  • Pollution control board fees.
  • BIS certification fees.
• Working Capital:
  • Funds for day-to-day operations, including raw material purchases, salaries, and utilities.
  • Funds to cover operational costs for at least 3 months.
• Marketing and Branding:
  • Costs for packaging design, branding, promotional materials, and advertising.

💡 Pro Tip: If you want to start a manufacturing business but have too many doubts, connect with a manufacturing business expert from Boss Wallah for guidance – https://bw1.in/1116

Detailed Raw Material Sourcing and Management

• Flour:
  • Source high-quality maida or atta from reputable suppliers.
  • Ensure consistent quality and moisture content.
• Sugar:
  • Use refined sugar or powdered sugar for consistent sweetness.
• Vegetable Oil/Butter:
  • Choose high-quality oils or butter for texture and flavor.
• Flavors and Essences:
  • Source natural or artificial flavors from reliable suppliers.
  • Experiment with unique flavor combinations.
• Packaging Materials:
  • Use food-grade materials that meet safety and hygiene standards.
  • Ensure proper sealing to maintain product freshness.
• Storage:
  • Raw materials must be stored in dry, cool, and pest-free environments.

Manufacturing Unit Setup

• Location:
  • Choose a location with good connectivity, access to raw materials, and a skilled labor force.
  • Ensure adequate power supply and water availability.
• Layout:
  • Design an efficient layout to optimize production flow and minimize cross-contamination.
  • Separate raw material storage, production, packaging, and finished goods storage areas.
• Machinery:
  • Invest in reliable and efficient machinery from reputable suppliers.
  • Ensure proper installation, maintenance, and calibration.
• Hygiene:
  • Implement strict hygiene standards, including regular cleaning and sanitation.
  • Provide training to employees on food safety practices.
• Quality Control:
  • Establish quality control measures at each stage of production.

Licensing and Legal Requirements for Biscuit Manufacturing Business

• FSSAI License:
  • Mandatory for all food businesses in India.
  • Ensure compliance with food safety and hygiene regulations.
• GST Registration:
  • Required for tax purposes.
  • Understand the applicable GST rates for your products.
• Trade License:
  • Obtain from your local municipal authority.
  • Ensure compliance with local regulations.
• Pollution Control Board NOC:
  • If applicable, obtain a No Objection Certificate from the pollution control board.
  • Ensure proper waste disposal.
• BIS Certification:
  • For quality standards.
  • This shows customers that your product is held to national standards.
• MSME Registration (Udyam Registration):
  • For availing government benefits, such as subsidies and loans.

ALSO READ | 10 Highly Profitable Manufacturing Business Ideas Under ₹50,000

Packaging

• Materials:
  • Use food-grade materials like BOPP, aluminum foil, and paper that provide barrier protection.
  • Ensure that materials prevent moisture and oxygen from entering.
• Design:
  • Create eye-catching designs and labels that reflect your brand identity.
  • Include clear and concise product information, including ingredients, nutritional value, and expiry date.
• Sizes: Offer various packaging sizes to cater to different customer needs and price points.
• Sealing: Ensure proper sealing to prevent spoilage and maintain product freshness.

Marketing and Distribution

• Local Retailers: Build strong relationships with local grocery stores, supermarkets, and bakeries.
• Wholesalers and Distributors: Partner with wholesalers and distributors to expand your reach to a wider market.
• Online Platforms:
  • Sell your biscuits through e-commerce websites and food delivery platforms.
  • Create your own website and online store.
• Direct Sales:
  • Set up your own retail outlet or participate in local markets and food festivals.
  • Consider food trucks or mobile sales.
• Promotional Activities:
  • Use social media marketing, digital advertising, print ads, and local events to promote your products.
  • Offer samples and discounts.
• Branding: Create a strong brand identity to build customer loyalty and differentiate your products.

ALSO READ | How to Start a Snack Food Business | Easy Steps to Success

Need Expert Guidance?

Starting a business can be challenging, but you don’t have to do it alone! At Boss Wallah, our 2,000+ business experts are ready to provide valuable insights and guidance. Whether you need help with marketing, finance, sourcing, or any other area of any business, our business experts are here to help you succeed- https://bw1.in/1116

Confused about Which Business to Start?
Want to start your own business but unsure which one to choose? Explore Boss Wallah, where you’ll find 500+ courses by successful business owners, featuring practical, step-by-step guides on starting and growing various businesses.
Find your perfect business idea today: https://bw1.in/1111

Conclusion

Starting a biscuit-manufacturing business in India requires careful planning, investment, and execution. However, with the right strategy and dedication, you can tap into the vast potential of the Indian biscuit market. Focus on quality, innovation, and effective marketing to build a successful and sustainable business.

Frequently Asked Questions (FAQs)

1. What is the minimum investment required to start a biscuit-manufacturing business?

The minimum investment can range from ₹10-20 lakhs for a small-scale unit.

2. What are the essential licenses required?

FSSAI license, GST registration, and a trade license are essential.

3. What are the key raw materials used in biscuit manufacturing?

Flour, sugar, oil, and flavors are key raw materials.

4. How can I market my biscuits effectively?

Partner with retailers, wholesalers, and use online platforms and promotional activities.

5. What machinery is required for a biscuit-manufacturing unit?

Mixing machines, baking ovens, cooling conveyors, and packaging machines.

6. How do I ensure quality control in my production process?

Maintain strict hygiene standards, use quality raw materials, and follow BIS standards.

7. What are the challenges in starting a biscuit-manufacturing business?

Competition, raw material price fluctuations, and maintaining quality are key challenges.

8. Where can I find biscuit manufacturing machine suppliers in India?

Online industrial marketplaces and local manufacturing equipment suppliers.