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How To Start Corn Flakes Manufacturing Business

Do you want to start corn flakes manufacturing business? Are you searching for corn flakes manufacturing business plan sample? Find here a detailed corn flakes manufacturing business plan for your ready reference.

If you are living in an area that is rich in corn or maize production, then you must consider starting this business. In addition, you can start the corn processing business with moderate startup capital investment. Furthermore, the business doesn’t demand a large area for production.

Some of the major corn-producing countries are the USA, China, Brazil, the EU, Ukraine, Argentina, Mexico, and India. Additionally, some of the major Indian corn-producing states are Madhya Pradesh, Andhra Pradesh, Karnataka, and Rajasthan.

Corn flakes are healthy and nutritious food. This type of food business is popular in both developed and developing countries. Apart from popcorn, this is one of the most popular commercial items you can produce from maize. Additionally, it is a very popular food for breakfast. Generally, people take this food with warm milk. It is a very quick meal and acts as an appetizer also.

Is Corn Flakes Manufacturing Business Profitable?

The demand for ready-to-eat food is increasing very fast. Additionally, people are looking for a healthy diet. Therefore, a change is taking place at the breakfast table of an average urban Indian household. The hustle and bustle around the first meal of the day keep the packaged breakfast foods mart on the edge.

Though several other breakfast bowls of cereal are also available in the market they are still gaining popularity. Besides their good taste, and crispy nature, cornflakes are also popular because of their friable texture and blended flavor.

And most important, the food is just ready for consumption with no cooking requirements. This is the major reason the demand for cornflakes is increasing rapidly. Therefore, starting a cornflakes manufacturing business is a lucrative venture for entrepreneurs.

Maize provides invaluable nutrient substances. Additionally, these nutrients are very necessary for the balance of the human diet. The various substances are proteins, carbohydrates, starch, fat, and water. Apart from the normal corn flakes, there are some other varieties that are also available in the market. And these items offer different tastes and flavors. Such as corn flakes with honey or almonds or nuts etc.

10 Steps to Start Corn Flakes Manufacturing Business

1. Business Compliance

As you are starting a food processing business, it demands several registrations and licenses. First of all, register your business according to your state law. And then check what licenses you have to obtain for the manufacturing unit. In India, you have to obtain permission from the FSSAI department. In addition, you have to apply for BIS certification.

At present, GST registration is a must to start any manufacturing business in the country.

Apart from the business licenses, you have to figure out the upcoming tax liabilities of this business. It varies from state to state. It is better to talk with a local tax consultant. In India, you will need to have a business PAN Card, current account, and TIN number.

2. Create a Business Plan

Before commencing the business, you must have a business plan in your hand. The corn flakes manufacturing business plan includes several important aspects of the business. These are the executive summary, objective, vision, mission, investment, business model, and marketing strategy.

A business plan is one of the most important tools for starting a business. Additionally, a business plan helps you in commencing the business in the right way.

Before crafting the plan, do some market research. Identify what types of products are most popular in the market. How other established companies are offering their products. Additionally, figure out their sales promotion strategy. These all will help you in crafting a comprehensive business plan for your business.

3. Cost & Investment

The cost of starting a corn flakes manufacturing business will depend on a wide range of factors. It includes several factors production capacity, location, equipment, and raw materials.

Some of the basic components of startup cost are as follows:

  • Machinery and equipment – Rs. 5-10 Lacs
  • Raw materials (corn, sugar, flavorings) – Rs. 2-5 Lacs
  • Packaging materials – Rs. 1-3 Lacs
  • Marketing and promotion – Rs. 2-3 Lacs

The factory rent, legal fees, and miscellaneous expenses are excluded. On average, the cost of starting a small-scale corn flakes manufacturing business in India will be around Rs 20 Lacs to Rs. 30 Lacs.

4. Arrange Funds

You can start the business with your own money or by taking loans from the banks. There are several banks and lending companies that offer business loans in India. You can approach them with your business project plan for a term or recurring capital funding needs.

Also, check out loan apps that offer instant cash. Do not forget to apply for a credit card to meet short-term small business expenses for your corn flakes manufacturing business.

5. Select a Location

The location is one of the major deciding factors in the manufacturing operation. You can only set up this manufacturing unit in a place where you can source the corn smoothly for your factory. Because if you procure the maize from a distant location, then the transportation cost will be higher. And it will directly hit on the net profit.

As you are starting a product-based business, you have to consider several important aspects prior. Generally, a small-scale corn flakes production unit demands 1000 Sq Ft of the area for the entire operation. However, the requirement of the area varies according to the desired output.

6. Machine & Equipment

The corn flake manufacturing plants generally come with integrated machines. It is a complete process you can get from several machines. In addition, you must have some testing tools and equipment. Find here a list of basic 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.

Procure the machines as per your specific demand. Additionally, before placing the final order check the customer feedback of the machine supplying company. Check the warranty period as well.

7. Procure Raw Materials

Corn is the major raw material in this business. However, this is a seasonal item. Therefore, you have to procure the entire material at the time of harvesting. And you have to store the raw materials carefully. Apart from the corn, you have to procure salt, sugar, etc. And these are available throughout the year. In addition,

In addition, you will need to procure the packaging consumables. And packaging plays a big role in several aspects. These are looks, shelf life, etc. You must provide lucrative and moisture-proof packaging to get the best result.

8. Corn Flakes Manufacturing Process

The corn flakes manufacturing process is simple. Basically, there are three basic steps. These are grain cleaning, grit section, and final production.

Step 1: Grain Cleaning

You will need to use yellow and white corn (Hybrid) for the manufacture of corn flakes. Initially, you have to clean the corn grains. And then polish them to remove dirt, dust, etc. You can use silos for storing corn grains. Take the help of air classifiers for the removal of dust, dirt, and germs. Use a separator for sorting out large grains from small grains.

Step 2: Corn Grit Section

After polishing grains, mill them to remove germ and bran. After that, cook the broken pieces in the rotary steam cooker under pressure. Then add the flavor syrup of sugar, malt, salt, and water during the process. The cooked

The cooked material possesses moisture which raises to about 36 – 37%. Then again wash and clean the grits with air classifiers. Additionally, separate the large and small grits by the separator. Then store these in bins. Put the grits into an agitator or lump breaker.

Dry the materials. Keep the dried materials in the de-moisturizing tank for a few hours. Because you will need to provide the residual moisture to become equally distributed. This is a very important process for uniform pressing in the flakes.

Step 3: Corn Flakes Section

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

Then transfer the flakes immediately to the rotary of any other oven for roasting. Next, inspect the roasted flakes to remove substandard flakes. Finally, immediately transfer the corn flakes to the packing machine.

9. Hire Manpower

Generally, there are three major staffing areas in this business. These are manufacturing, operational, and marketing. Try to hire skilled manpower for the manufacturing process. However, a factory in charge is a must.

Additionally, you will need to have an accountant and other employees for daily operations. Apart from these, build an effective sales team. Because a well-penetrated distribution network is mandatory for this business.

10. Have a Marketing Plan

A small-scale corn flakes manufacturing company must concentrate to build the distribution network properly. In addition, tap the institutional market. This type of product demands proper branding and sales promotion strategy.

Create a website for online presence. In addition, you can sell corn flakes on online marketplaces as well.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.