As part of the food manufacturing industry, spice powders and curry powders are growing in popularity. The flavor and taste of processed foods are enhanced by spices and curry powders – making them essential to cooking in homes and restaurants. As the world’s largest exporter of spices, India produces most of them. Food manufacturing businesses that cater to domestic or export demand have tremendous opportunities. Developing a food manufacturing business in India is the topic of this article.
Curry powders and spices
It is mainly unprocessed spices that are traded. The bulk of spice powders, however, are exported to other countries as spice powders. The flavor of an Indian curry or Indian food is enhanced by curry powder, a blend of 20 or more spices. The formula for curry powder varies from manufacturer to manufacturer, because each blends various spices.
Creating a food production facility
Investing about Rs.10 lakhs in equipment and working capital can enable a small food manufacturer to set up shop with a specialization in spices and curry powder. In a food manufacturing unit investing Rs.5 lakhs in equipment, annual sales can reach Rs.70 lakhs with 60% efficiency. According to estimates, profit after tax will be approximately Rs. 2 to 3 lakhs on such a sales turnover.
Food manufacturing businesses typically require the following equipment:
- Two 12 inch double heads on one side of the multi-mill pulveriser and one 12 inch single head on the other
- The motor has a 10 HP Crompton starting system, a switch, and a capacitor
- 36000 1 36,000.00 12″ disintegrator with stand
- The Uruli Roaster has a capacity of 15 kg per batch, and it is powered by an electric motor
- Flour mill parts, including motor pulleys, belts, rails, foundation bolts, and belt guides
- Pulverizer with a single head
- Extraction of bolt oil
- A balance that weighs by electronic means
- All components of a cube-shaped control panel
As stated above, about 3 – 5 people would be required to operate a small food manufacturing business. It is estimated that the business would require most of its workers to be unskilled, and that salaries would cost between Rs.30,000 and Rs.40,000 per month.
Registrations and licenses
To limit the liability of promoters and to have easy access to bank financing, all food businesses should be incorporated or formed as LLPs. In order to start a food manufacturing business, promoters must register their businesses as companies or limited liability partnerships.
The Food Safety and Standards Authority of India requires all food manufacturing companies to obtain FSSAI registration. For spices and curry powder manufacturers, food license registration online is mandatory as a small food manufacturer. A food manufacturer may apply for trademark registration in addition to FSSAI registration, if the business will sell food products under a distinctive brand name. If the manufacturer plans to export products, an Import Export Code or IE Code is required.
A final consideration is that (if implemented) VAT or GST would be applicable to products sold by a food manufacturer. It is therefore necessary for the business to register for VAT or GST in order to remain compliant.