Popcorn is a popular snack item among every age group of the population. Also, this is a healthy snack item. Any individual can start a popcorn manufacturing business with a small capital investment. Here in this article, we intend to explore how to start a small-scale popcorn manufacturing business.
Popcorn or Popping Corn is a type of corn that explodes from the kernel and puffs up after heating. However, there are special varieties of corn that give improved popping yield. And these varieties are most suitable for production. However, the shape and color of the kernels; and the shape of the popped corn are the most important consideration in this business.
Industrial popcorn production demands a comparatively small space and infrastructure for commencing. Even you can start a business from home. In India, you can initiate this business with a startup capital of Rupees 10 Lakh onwards.
Is Popcorn Manufacturing Business Profitable?
This is a very delicious and tasty snack item from the user’s point of view. Additionally, the product is also safe and healthy for consumption. This product is becoming equally popular among consumers and manufacturers. Some of the important factors attributing to the growth of its market in India are increasing consumption from tier I cities.
Also, the growth of multiplexes in the country and the entry of several manufacturers with innovative flavors are the major reasons. Therefore, the snacks, that eternal movie-time munchy, have become a sizzling business in India these days. According to an industry leader, the popcorn market in India is increasing very fast – especially in multiplexes. And the gross profit margin is very lucrative. Therefore, starting a popcorn manufacturing business is a profitable venture for entrepreneurs.
Here are the 6 Steps to Start Popcorn Manufacturing Business
1. Popcorn Manufacturing Business Legal Compliances
In starting this business you will need to get registration and licenses from the different Govt. agencies. However, it is advisable to check your state law before commencing the business. Here we put some of the basic considerations.
- First of all, register your business entity with ROC.
- Apply for MSME Udyog Aadhaar online registration.
- Additionally, you must obtain the certification from FSSAI.
- Register your brand name with Trademark.
- Apply for the GST registration number.
2. Popcorn Manufacturing Plant Setup & Machine
For starting a small-scale manufacturing unit, you will need to have 500 Sq Ft space at least. However, according to the size of the operation, you will need to provide the space. Additionally, you will need to arrange utilities like electricity, water, and skilled manpower.
There are different types of popcorn machines are available in the market. However, you must procure a machine according to your desired quality and quantity output. Furthermore, evaluating the quality of popcorn is another major consideration in selecting the machine. Check what percentage of the kernels will pop, and how much each popped kernel expands. Expansion is an important factor for both the consumer and the vendor.
Additionally, you will need to have a weighing scale and pouch sealing machine for your manufacturing unit.
3. Popcorn Manufacturing Process & Raw Materials
The product is produced by heating kernels until the internal moisture expands and pops through the outer shell of the kernel, allowing the starch to expand and cool. The machine will do everything to produce crispy popcorns. Finally, you will need to pack the product with moistureproof packaging materials. Generally, corrugated outer cartons are used for the transportation and bulk handling of items.
4. Raw Materials For Popcorn
Generally, corn or maize is the primary required raw material. Additionally, you will need to procure salt, butter, flavors, spices, etc. Furthermore, you must arrange the packaging materials for finished popcorn packaging.
5. Cost of Starting a Popcorn Making Business
The cost and investment will largely depend on the scale of production. The major investment will be in buying the popcorn manufacturing machine. The price of a popcorn-making machine is in the range of Rs. 10000 to Rs 2 Lacs depending on the production output.
On average, the cost of starting a small-scale popcorn manufacturing business will be anywhere between Rs. 3 Lacs to Rs 10 Lacs.
6. Profit from Popcorn Manufacturing Business
Popcorn has a high-profit margin. And you can increase the margin in several ways. First of all, pricing is the most important factor that you need to consider carefully.
Secondly, you must think about building brand value. Also, product promotion. You can offer an incentive to the dealers and retailers. Concentrate on the supply chain and logistic segment. The bottom line is increasing the sale volume. So you must try to cater to the market deeply to ensure the availability of the product in retail stores.
In the Indian commodity market, visual advertisement plays an important role. You can consider putting an advertisement on Tv channels and FM radios. The overall progress of any business depends on the right decisions and organized implementations.
We hope this detailed article about how to start a popcorn manufacturing business will help you in making an informed decision.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.