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How to Start a Profitable Iodized Salt Manufacturing Business

Do you want to start an iodized salt manufacturing business? If yes, you are in the right place. Any individual can initiate a small-scale iodized salt manufacturing business. The manufacturing process is simple, producing iodized salt by iodinating common salt.

India is the third-largest salt-producing country in the world after the US and China. The present demand for iodized salt is estimated at 281,514 tons per annum. However, industry experts expect that the demand will reach 413,412 tons by the year 2020.

Iodized Salt Market Potential

Iodized salt is a white crystalline powder salt fortified by Iodine. Most of the people of the country are at risk of iodine deficiency disorder (IDD) because their soil lacks iodine and because they lack access to foods that contain iodine. IDD can be easily avoided by consuming a sufficient amount of salt fortified with Iodine.

Salt fortification is a highly cost-effective method of ensuring that everyone receives a steady and continuous iodine supply. Iodized salt improves thyroid function, improves brain function, fights against depression, controls weight, and many more. Increasing health awareness and spending capacity of the people are the key factors in the growing market of iodized salt.

Suggested Read: Top Profitable Small Manufacturing Business Ideas

At present, there are 18 iodization plants, 4 plants are following a dry mixing type process and 14 plants are using a wet spray process. The demand for iodized salt is more than 60 Lac tons per year as per the Ministry of Health survey.

To meet this requirement, more production capacities are required. The bulk of the common salt produced in India goes for human consumption. Only to some extent salt is Iodized and that is not sufficient to meet the demand for iodized salt. A good and stable market exists for this product.

6 Steps to Start an Iodized Salt Manufacturing Business

1. Registration & Licenses

In starting an iodized salt production business, entrepreneurs need to obtain different registrations and licenses from Government Authority in India. These are as follows:

  1. Business registration with ROC
  2. Trade License from Municipal Authority.
  3. Factory License
  4. Udyog Aadhaar MSME Registration
  5. Food Business Operator License
  6. BIS Certification

In addition. having a GST registration number is a must.

These licenses and registrations must be obtained from respective authorities in India.

2. Arrange Funds

The total initial investment cost will depend on your desired production output and total project cost. Broadly, you can categorize the cost into two sections. One is a fixed capital investment and the other is a working capital investment.

The fixed capital investment includes land, building, and machinery. On the other hand, the working capital investment includes raw materials, packaging consumables, utilities, human resources, etc. You can apply for a loan from any bank and financial institution provided you can accommodate at least 25 – 30% of the project cost as collateral security.

Related Article: How To Get Small Business Loans

3. Iodized Salt Machinery & Utilities

In starting a medium-scale, and iodized salt production unit following machinery is required.

  • Silos (stainless steel)
  • Crushers (Roller/ball)
  • Mixers
  • Packing Machines

The major required utility is electricity. Because it is the major power source for heavy-duty crushing machines installed in the plant. Also, you have to arrange water resources for general purposes in the plant.

4. Iodized Salt Manufacturing Process

You have to prepare the production program according to the selected plant capacity and expected market share you want to capture. At the initial stage of production, the plant may require some years to penetrate into the market. Therefore, the plant initially will operate at 75% of its rated annual capacity. Broadly, you can produce iodized salt through various different processes.

Iodizing the edible salts with potassium iodide, potassium iodate, and calcium iodate, is the most popular production process. Potassium iodide is not stable.

Therefore, you will need to add stabilizers (like calcium carbonate) to reduce the loss of iodine, in the case of using Potassium Iodide. The iodate, on the other hand, is stable up to 560 Deg C. Except in extreme

The iodate, on the other hand, is stable up to 560 Deg C. Except in extreme conditions, Potassium iodate does not deplete and can sustain even after 300 days in storage as iodized salt. The Central Salt & Marine Chemical Research Institute (CSMCRI), Bhavnagar.

5. Raw Materials

The Central Salt & Marine Chemical Research Institute (CSMCRI), Bhavnagar found that it is only on heating the iodized salt or boiling the solution, that there is significant depletion. Even, Health Ministry has approved potassium iodate for iodinating salt.

According to the 1987 BIS standards, to get 30 ppm of iodine, you will need to add 50 ppm of potassium iodate. To get the iodized salt, dissolve the iodate in water or saturated brine. Then mix the salt crystals with the aqueous solution to form iodized salt.

Considering the growing demand for the product, the iodized salt production business is one of the most profitable investment opportunities in India. The income statement and the other indicators of profitability show that the project is financially viable.

6. Iodized Salt Manufacturing Project Synopsis:

  • Plant capacity: 20 Tons/Day
  • Plant & machinery: Rs. 36 Lakhs
  • Working capital: Rs. 24 Lacs
  • T.C.I: Rs. 91 Lacs
  • Return: 61.19 %
  • Break-even: 45.87 %

The actual cost of the iodized salt manufacturing project may change for different assumptions. You can modify the project capacity and project cost as per your requirement.

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.