Baking Powder is a dry chemical leavening agent. Additionally, it is an important item in the food processing industry. Here in this article, we intend to explore how to start a baking powder manufacturing business.
Baking powders are chemical mixtures of different ingredients and compositions. These ingredients react in the presence of moisture and heat to release gas. It comes in several formulations. However, it contains an alkali, typically sodium bicarbonate (baking soda), and an acid in the form of salt crystals, together with starch to keep it dry.
The baking powder production process is simple. Additionally, the unit demands simple machinery. With a small infrastructure and low investment, any individual can start a baking powder manufacturing business.
7 Steps to Start Baking Powder Manufacturing Business
1. Understand Baking Powder Market Potential
Baking powder has both domestic and industrial consumption. With increasing disposable incomes and changing lifestyles, the eating habits of the people are changing very fast. Additionally, this phenomenon is no more restricted to the urban elites but it is to other areas as well. Thus, the contemplated products have experienced a continuous increase in demand during the last few years.
One of the major factors propelling the growth of the global baking powder market is burgeoning food and fast food markets. The increasing consumption of baked foods directly affects the performance of the global baking powder market. The food industry utilizes baking powder as a raising agent to impart fluffiness and lightness to products such as cakes, waffles, tarts, pastries, etc.
Additionally, the advertisement of the established FMCG company helps in enhancing product awareness. Apart from household use, the bakery and confectionery industries are the regular buyers of this product. Also, restaurants and hotels procure this item very frequently. Therefore, we can conclude, that starting a baking powder production business is a lucrative opportunity for entrepreneurs.
2. Baking Powder Manufacturing Business Compliances
In starting this business, you will need to obtain different licenses and permissions. However, the specific requirements depend on the state where you are starting the business. Here we have compiled some of the basic requirements.
- First of all, register your business. For a small-scale unit, you can start as a proprietorship firm also.
- Apply for the Trade License from the local Municipal Authority.
- Open a Current Bank Account
- Apply for MSME Udyog Aadhaar Registration
- Additionally, apply for an FSSAI license.
- Finally, you will need to obtain the BIS certification. BIS has specified quality standards vide
IS 1159:1957 for Baking Powder.
- Check the upcoming tax liabilities of your product.
- Apply for the GST registration number.
3. Baking Powder Factory Setup & Machinery
In starting this business, you will need to secure a space for the unit operation. For a small-scale unit, you must have at least 1000 Sq Ft of covered area. Because you must provide specific spaces for raw material storage, production, packaging, finished goods storage, and administrative work. Besides, check the availability of electricity and water supply.
With some simple machinery, you can establish a semi-automatic plant. Some of the basic required machines are:
- Micro pulverizer
- Double shaft mixer
- Electrically operated oven
- Weighing Scale
- Packaging machine
4. How Much is the Cost of Starting a Baking Powder Manufacturing Plant
The cost and investments of manufacturing baking soda will largely depend on the production output, type of machinery, and location of the plant. On average, the cost of starting a baking powder manufacturing plant on a small scale will be a minimum of Rs 15 lacs to 25 lacs INR.
5. Baking Powder Production Process
The manufacturing process is standardized and simple. It is advisable to source the manufacturing technology from the Government research center. Here we are providing the basic steps.
First of all, you will need to procure the various ingredients. Then dry the ingredients to bring down the moisture level before grinding. After that, mix them in the required proportion and blend thoroughly.
The final step is the packaging. You will need to pack the product in a moisture-proof packing. Generally, baking powder comes in two different types of packing. These are pouch packing and container packing.
6. Baking Powder Making Formula
Here we are providing the mixing formula for your ready reference. However, you must procure the technology from the authorized Govt. agencies before starting commercial production.
|Sodium bicarbonate||35% wt|
|Sodium aluminum sulfate||29% wt|
|Acid Calcium Phosphate||12 Kg|
Read: Best Small Manufacturing Business Ideas
7. Raw Materials for Baking Powder
For preparing baking powder, you will need to procure sodium bicarbonate, edible starch, Acid Calcium Phosphate, and Sodium Aluminium Sulphate. These are all available in the local wholesale market throughout the country. However, procuring the material from reliable suppliers. The quality of the product hugely depends on the quality of the raw materials that you use.
Apart from an individual unit, you can produce the baking powder from an existing food processing unit also. And it helps to enhance the overall profitability of the baking powder production business.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.