Do you want to start a jam and jelly making manufacturing business? Find here a detailed guide on how to start this business with the manufacturing process, and equipment required.
Jam jelly-making is a profitable business. In addition, you can initiate the business on a small scale with low capital investment. The food processing industry has started receiving a great deal of attention from policymakers. The current industrial policy in food processing is also favorable for the food processing industry.
India is the 2nd largest producer of fruits and vegetables in the world, and the food processing sector in the country is expected to double in the next decade. The ever-growing consumer demands have opened up huge investment opportunities for foreign and private entities in the food processing industry currently.
You can start the business at your home also. However, you must have proper planning and strategy. In addition, you can avail of different allowances and subsidies from Government sectors.
Generally, you can produce jams and jelly from almost every type of fruit and some vegetables. Fruit jam contains rich fruit pulp and is available in mango, apple, mixed fruit, pineapple, and orange flavors. Jelly is a clear, bright mixture made from fruit juice, sugar, and sometimes pectin. Generally, people use jelly and jam as the bread spread and as a filling for some cakes and cookies.
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Is Jam Jelly Making Business Profitable?
Generally, domestic households, restaurants, and other eateries are the major consumers of these items. It is estimated that the total production of processed fruit & vegetable in India is about 15.0 lakh tons. Out of various products fruit juices and fruit, pulp accounts for 27 percent, followed by jams & jellies at only 10 percent and synthetics at 8 percent.
This is obvious that the processed products of the fruit & vegetable business will remain a growing industry for a long time. One of the main reasons for the expectation of growth is that the consumption of jam jelly is gaining popularity day by day owing to the growing change in food habits and increased consumption of bread and other convenient snack foods.
7 Steps to Start a Jam Jelly Making Manufacturing Business
1. Register your Business
In starting a jam jelly-making manufacturing business, you will need to register your business first. There are four options such as sole proprietorship, LLP, and Pvt. Ltd and Ltd. Co. According to your management nature and objective, you need to select the right one. However, you can also start the business as a proprietorship.
Obtain a Trade License. As this is a food product item, you will need to apply for the FSSAI License. You can register your business as an SSI Unit. Compliance with FPO and PFA Act is necessary. IS standard for these products is 5861:1970. GST Registration is a must for manufacturing businesses at present.
2. Jam Jelly Making Ingredients
The major raw materials required for the production of mixed fruit jam & jelly, and marmalade are different fruits and vegetables. These are orange, pineapple, guava, papaya, jackfruit, and banana. The consumables are sugar, citric acid, preservatives, food-grade colors, chemicals, pectin, flavors, common salt, etc.
Additionally, you will need to procure the packaging consumables. First of all, you have to pack the product in a glass bottle or jar. And finally in cartons.
3. Machines & Equipment
For a small-scale conventional production process-oriented unit you will need to have the following machinery. Pulper, Juice Extractor, Mixer, Grinder, Slicer, Cap Sealing Machine, Bottle Washing Machine, and Carton Sealing Machine. From this type of unit, you can expect 30 tons of production output per year on 2 shifts working and 300 working days
If you want to establish a large-scale production unit you will need to establish a fully automatic production unit. According to the desired production output requirement, you can establish a customized plant.
Additionally, you will need to procure some other equipment and tools. The list includes a weighing scale, glassware, working tables, canteen burners, stainless steel utensils, hand gloves, cutters and graters, storage racks, etc. Also, you will need to have Testing equipment like a jell meter, refractometer, etc.
4. Jam Jelly Manufacturing Process
Find below some basic steps to be followed to make Jams & Jelly
First of all, wash the fruits in water and remove the skins. After peeling, cut or slice them into small pieces. Then, boil these pieces in water. Add an appropriate quantity of sugar to the pulp. When the temperature is around 60 C; citric acid, color, essence, etc. are added. This mixture is then stirred for a while, cooled, and then packed in bottles. The process flowchart is:
Washing, peeling, and slicing of fruits → Boiling → Mixing of sugar with pulp → Cooling → Packing.
Washed and peeled fruits are fed to the hopper of a juice extractor and the juice so obtained is filtered. Certain fruits like rosella or guava need to be boiled in water before extracting juice.
Sugar is added to juice and then this mixture is boiled to convert it into jelly form and pectin, citric acid, color, etc. are added in the required quantity. Boiling is done until the jelly-like formation is obtained. Packing is done on cooling. The process flowchart is:
Washing and peeling of fruits → Addition of sugar in juice → Boiling → Cooling and Packing.
5. Cost to Start a Jam and Jelly Manufacturing Business
Here are some of the costs associated with starting a jam and jelly manufacturing business in India:
The major cost is the purchasing of the price of the machinery. The actual cost of equipment and machinery will vary from INR 2-5 lakh depending on the features and production output. This includes cooking kettles, filling machines, packaging equipment, etc.
The second most important cost factor is in procuring fruits, sugar, and pectin to prepare jams and jellies.
In addition, you will need to invest in salaries and wages of employees, packaging costs, legal and license fees, and marketing costs.
Overall, the cost of starting a small-scale jam and jelly manufacturing business in India will be around Rs. 5Lacs to Rs. 10 lacs.
6. Arrange Funds
You will need a reasonable amount of investment to start a jam and jelly manufacturing plant. You can approach banks for term or working capital business loans. In addition, apply for a credit card for handling short-term expenses.
If you want to start a jam jelly-making business, then you must have in-depth knowledge about several aspects. These are ingredients, recipes, production processes, packaging, etc.
This is one of the easiest businesses you can start in the food processing industry. This business allows several other operations from the same unit. And it allows for enhancing profitability. You can also produce pickles and sauce from your jam jelly-making unit as well.
7. Have a Marketing Plan
You must formulate a well-planned marketing strategy for the overall success of the business. Other than developing an effective distribution network, create a website so that your jam and jelly company has an online presence.