The biscuit manufacturing business is very lucrative and can be initiated on a small-scale basis. Biscuit-making is a conventional activity and an entrepreneur can initiate this business with low startup capital also.
Despite the advent of modern, large capacity and automatic biscuit-making plants, a large section of people still prefers fresh biscuits from the local bakery as they are cheap and offer many varieties.
These manufacturers are able to cater to some typical local palates as well. Thus, they are able to withstand competition from organized sector units.
Despite the advent of modern, large capacity and automatic biscuit-making plants, a large section of people still prefers fresh biscuits from the local bakery as they are cheap and offer many varieties. These manufacturers are able to cater to some typical local palates as well. Thus, they are able to withstand competition from organized sector units.
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Is Biscuit Making Business Profitable?
The biscuit market is very promising and expects higher growth in the near future. The biscuit market is all about effective decision-making, and strategic planning as to how to sell, what kind of packaging should be done, what will be the pricing strategy, etc.
The biscuits market is seen to be dominating in the food industry due to its innovative packaging, new flavors, tastes, shapes, new technologies, and rising health consciousness among consumers.
Many national and regional brands dominate the urban and semi-urban markets. But even then many local manufacturers have also carved a special niche as their products are fresh, they offer many varieties and they are cheaper.
8 Steps to Start Biscuit Manufacturing Business
1. Registration & Licenses
In starting a biscuit-making business first you will need to determine the ownership pattern and register the firm accordingly with the Register Of Companies(ROC). You need to obtain a Trade License from the local authority.
In addition, apply for GST Registration. A biscuit is a food item you have to take an FSSAI license. Register your business with the local DIC office.
While you are starting a commercial biscuit manufacturing company, it is advisable to take No Objection from the Pollution Control Board. The BIS has specified quality standards vide IS 1011:1992. Compliance with the PFA Act is necessary.
2. Raw Materials Required
The basic raw material for the manufacture of biscuits is wheat flour. The requirement will not be substantial but supply arrangements with flour mills in the region would ensure smooth supplies.
Other required items are yeast, sugar, ghee, milk powder, salt, edible colors, flavors, etc. Concentrate on the packaging. You must provide a Proper packaging system for moisture-proof packaging.
3. Learn Biscuit Making Manufacturing Process
The manufacturing process is simple and conventional. Mix wheat flour along with other ingredients with water and prepare the dough.
Then, keep it at normal room temperature for about a couple of hours to allow proper fermentation. Then place it in biscuit molding trays.
Further place these trays in an oven for baking. After requisite baking, trays are taken out, cooled and biscuits are packed. The process flowchart is as under:
Making the dough by mixing the ingredients → Process of fermentation → Giving the shape → Baking the raw biscuit → Testing → Packaging.
The recipe is an important factor in this business. And you must have some innovative biscuits in making the recipe to get long-term success in this business. In addition, you can source manufacturing technology from Government research institutes.
4. Biscuit Manufacturing Machines
The machinery required for biscuit making are a dough mixer, rotary molder, rotary cutter, laminator, biscuit baking oven, cooling conveyor, oil sprayer, two-tier cooling conveyor with standard accessories, and biscuit sandwiching machine.
You also need to purchase sealing and wrapping machines for packaging purposes. According to the required output, you will need to purchase the machinery.
Starting a biscuit-making business is a lucrative venture for housewives and women entrepreneurs also. In addition, you can start biscuit making on a part-time basis to earn extra income.
5. Biscuit Factory Setup Cost in India
It is without saying, the cost of launching a biscuit manufacturing business will depend on a wide range of factors. It includes production output, license fees, machinery costs, salary and wages, and marketing costs.
On average, the initial investment to launch a small-scale biscuit manufacturing unit in India with a production capacity of 500kg/ day will be around Rs. 5 lacs to Rs. 10 lacs. For medium scale with a production capacity of 100kg, day the cost will increase to around Rs. 30 Lacs.
And, you will need to invest more than Rs. 50 Lacs to start a large-scale biscuit manufacturing unit in India.
6. Arrange Funds
If you are short in budget, it is advised to apply for business loans from banks and financial institutions. Also, apply for a credit card to manage short-term expenses.
7. Develop a Distribution Network
It is essential to create an effective distribution network so that your biscuit items reach all possible places from where customers can buy. To achieve this, we need to tie up with dedicated wholesalers, distributors, and retailers.
8. Create a Website
It is almost mandatory to have a website for your biscuit company. It not only helps in the brand building but also fetches new customers.