A flour mill is an easy business to start. Additionally, you can start this business in both city and rural areas. Furthermore, a flour mill offers a wide range of manufacturing opportunities for entrepreneurs.
The object of crafting this article is to provide 6 flour mill business ideas to the new entrepreneurs. Additionally, we put details about how to start a flour mill business with a small startup capital investment.
The roller flour mill is a process industry to mill the grains and provide the endosperm as various fractions viz: maida, sooji, and atta. The skin or bran is separated from the endosperm and sold as cattle feed.
These products have sufficient domestic demand. Additionally, there is export potential also. Generally, atta, maida, suji, and corn flours are the basic ingredients for a wide range of processed foods. Additionally, these are the items for domestic daily use. Furthermore, the bakery industry of our country hugely depends on these ingredients as raw materials. So the flour mill project is a financially profitable business in our country.
Here are the 6 Steps to Start a Flour Mill Business
You can start the business in two ways. And the two different business models demand different infrastructure and investment.
One is you secure a small retail space. Install an atta chakki there. And allow people to come with grains. And you will be getting charges for grinding those grains.
This is a comparatively easy model and demands small capital investment. Also, this is a very traditional model of the flour milling business. However, this model is not acceptable for long-sustained businesses.
Another option is you set up an integrated flour mill. And offer the packaged products to your consumers. However, this business demands a moderate capital investment initially. Also, you need to have strategic planning for marketing and distribution.
So crafting a flour mill business plan or project report is necessary for initiating the business. Additionally, you must craft the business plan according to the products you want to produce and your investment capacity.
Related: Questions To Ask Before Starting Manufacturing Business
1. Select your Niche
Below we list down the 6 Most Profitable Small Scale Flour Mill Business Ideas:
#1. Bran: The bran is the skin of the grains. Also, bran is used as a dietary fiber.
#2. Cornflour: Cornflour is an essential item in the food processing industry. Corn milling or maize milling is a highly profitable business. However, you must establish the mill in a location where you can source the corn easily.
#3. Gram Flour: The most common name for gram flour is besan. And the product has a great demand in our country.
#4. Sooji: Sooji is another very popular grocery item in our country. You can produce sooji from the same manufacturing unit.
#5. Wheat Flour (Atta): Atta is one of the most essential items for the domestic kitchen.
#6. Wheat Flour (Maida): Maida has comparatively more demand than atta.
2. Registration & Licenses
The flour milling business comes under the food processing industry. So it demands specific licenses and registration before commencing the business. Check your state laws carefully. However, here we put a list of basic requirements.
- First of all, determine the form of the organization and register your business with ROC.
- Apply for the Trade License from the local municipal authority.
- Furthermore, apply for Udyog Aadhaar MSME Online Registration
- Apply for FSSAI registration.
- You have to apply for AGMARK.
- Apply for BIS certification
- Check the tax liabilities.
- This business doesn’t demand any pollution clearance. However, check it with the State Pollution Control Board of your area.
- Apply for the GST registration number.
3. Cost of Setting up a Flour Mill
The flour milling business generally demands two different types of investments. One is a fixed capital investment. It includes land (if you purchase the land), building, machinery, registration, and licensing fees. If you start the business with a rental premise then fixed capital includes the security deposit amount for the area of land.
Another is the working capital investment. It includes raw materials, staffing, rent, transportation, marketing, distribution, and administration costs. There are different types of small business loan providing companies in our country. And loan providers also offer various customized schemes for your specific requirements.
Related: Best Small Business Loans in India
4. Flour Mill Profit Margin
You can earn an inspiring profit margin from a flour milling business. However, the percentage of profit depends on several aspects. For enhancing the profit, you will need to reduce the production cost.
Also, you must consider enhancing the sales volume and penetrating new areas. Always remember, you will only expect a good profit when you sell the product as a brand.
5. Flour Mill Business Plant Setup & Machinery
First of all, you have to secure a location for manufacturing operations. Check the available transportation facility, electricity, water, semi-skilled manpower, and drainage facility. For setting up a small-scale unit with the entire product range, you will need to have 3000 Sq Ft built-up areas at least.
Related: Things To Consider in Selecting Factory Location
Here are some basic requirements for plant & machinery:
- Bucket elevator
- Reel machine (3 segments)
- Rotary separator with aspiration channel
- Scourer machine with aspiration channel
- Intensive dampener
- Indent cylinder
- Screw conveyor
- V-Groove, Pulleys, Couplings, V-Belts, etc
- Weighing scale
- Dust cyclone
- L.P fan for cleaning
- Roller Mill body
- Roll Grooving & spindle cutting
- Supper cyclone
Generally, a flour mill project comes with a lot of customization. According to your investment capacity and desired output quantity, you must install the machinery.
Additionally, you will need to have testing equipment and packaging machinery.
6. Flour Production Process & Raw Materials
The production process for each item is a little bit different. You can source the manufacturing technology from the Govt. department in exchange for certain fees. However, here we put the basic steps of flour production.
First of all, clean the wheat grains thoroughly to remove dust, stone, and other foreign matters. Then temper the grains before grinding by treating them with water so that the bran is separated from the endosperm.
Crush the wheat between corrugated rollers (Break rolls). It is a long process and may contain several breaks. The stock contains pieces of endosperm and bran and the stock from the last break is principally bran.
The middlings contains endosperm, bran, and germ which are then successively classified, and some of the bran removed are sent to reduction rollers. These are smooth rollers, but as the bread rolls, they are graduated so that successive reduction becomes finer and finer.
After each reduction, sifters separate the flour, middling, and stock. And you have to continue the process until you can remove most of the endosperm as flour. Additionally, you have to separate most of the bran in the sifters.
The major required raw material is wheat blended in different proportions. Additionally, you have to procure the packaging materials for the flour mill business.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.