Vinegar is well known since long back throughout the world. Vinegar manufacturing project is a highly profitable project for new startup entrepreneurs. It is used daily in every house. Vinegar is known in Hindi and Punjabi as sirka. It is a liquid consisting mainly of acetic acid (CH3COOH) and water.
Vinegar is used in a wide range of industrial, medical, and domestic uses. Large quantities are also used in the manufacture of tomato ketchup chili sauce and sauces used in the canning of fish.
Vinegar is also used in the manufacture of acetic acid and for the production of acetone, a solvent that imparts a good fruity flavor as such it is used in almost all homes for improving the taste and flavor of food products.
Vinegar contains about 5% acetic acids, coloring matter, salts, and quite a few other fermentation products which impart a characteristic flavor and aroma to it. Any entrepreneur can start a vinegar manufacturing business and make good money.
Here are the 7 Steps to Start Vinegar Manufacturing Business
1. Create a Business Plan
If you are serious about starting a vinegar manufacturing unit, take time and write a detailed business project plan. If you need, hire a professional to help you in this regard. This business plan will be extremely important if you are looking for finance from banks to start your manufacturing unit.
2. Register your Business
It is essential to register your vinegar manufacturing plant to run a legally-compliant business. There are various company structures that are available depending on the size and scale of operation in the country. Some of the popular ones are sole proprietorship, partnership, and private limited company.
If you are starting small and not looking for funds from investors, the proprietorship is a good choice. However, forming a private limited company happens to be a better option for larger scale and generating funds from financial institutions.
3. Procure Licenses and Permits
You will need a wide range of licenses and permits to run a vinegar manufacturing plant. Some of them are listed below:
- Factory license
- FSSAI license
- Udyog Aaadhar MSME
- GST Registration
- NOC from the pollution control board
4. Buy Vinegar Plant Machinery
There will be a need of buying different types of machines and tools to manufacture vinegar. It also depends on the type of vinegar you are going to make. However, some of the basic machinery is mentioned below:
- Vinegar making machine
- Storage tanks
- Filling line equipment
- Fermentation tanks
- Weighing Scales
Also, you need to buy raw materials to make vinegar. This will depend on the type of vinegar you are planning to make. For example, if you are planning to make Cider vinegar, apple juice would be your primary raw material as it is made from fermented apple juice.
5. Learn Commercial Vinegar Manufacturing Process
Commercial vinegar is produced either by fast or slow fermentation processes. In general, slow methods are used with traditional vinegar, and fermentation proceeds slowly over the course of months or a year. The longer fermentation period allows for the accumulation of a nontoxic slime composed of acetic acid bacteria.
Fast methods add mother of vinegar (bacterial culture) to the source liquid before adding air to oxygenate and promote the fastest fermentation. In fast production processes, vinegar may be produced in 20 hours to three days.
6. Vinegar Manufacturing Project Cost Synopsis:
|Plant Capacity: 5000 bottles/day||Plant & Machinery: 27 lacs|
|Working Capital: 32 lacs||Return: 53%|
|Total Capital Investment: 77 lacs||Break-Even: 37%|
The actual cost of the project may deviate from a change of any of the assumptions. You can modify the project capacity and project cost as per your requirement.
7. Where to Sell Vinegar?
If you are planning to sell vinegar commercially, having a good network of wholesalers and distributors is a must. Some of the institutional sectors you must approach are the pharmaceutical industry, food and beverage industry, chemical industry, and so on.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.