If you are thinking about starting a food manufacturing business in India, you are on the right path. Also on the right platform that can guide you regarding the same at its best. You must be thinking about what type of guidance is needed to start a food manufacturing business. One can simply start it on its own. No it’s not like that. Food industry is also governed by the rules, regulations and laws. One who is entering into this industry must be aware about these laws and regulations in order to save one’s business against any fines and penalties.
The Food Safety and Standards Regulation Act of 2006 mainly governs this industry. Almost all the terms and conditions which are applicable to start a food manufacturing business are given under the same law. But again it is not possible to understand it as it is in legal language which is technical and not easy to understand. Hence with the help of an expert you can comply with the FSS Act’s terms and conditions which will be applicable on your business.
What is a Food Manufacturing Business?
Production of any kind of food material with the help of one or more than one ingredient or raw materials is known as food manufacturing business in India. Such kinds of businesses can be a small business or a well established business like food factories. A manufacturing company is a person or institution that controls or owns an establishment that produces or processes food. Furthermore to contract manufacturers, contract packers, and other entities which produce or prepare food are included in this definition. Manufacturing is the process through which the raw materials produced from livestock and agricultural products converts into goods intended for secondary or tertiary use.The process includes the following:
- Procurement
- Receipt
- Preparation
- Packaging,
- Storage,
- Distribution
- Transportation
- Repacking
Key Food Manufacturing Business Ideas in India
Some of the most popular food manufacturing business ideas are given below. These are specially for the reference of those who are planning to start a food manufacturing business in India.
- Processing of the cereals like wheat, maize, rice, oats etc
- To start a food manufacturing business related to dry fruits and nuts
- Manufacturing of foods which are ready to eat and takes less time to cook like meggie, pasta etc
- Processing of the pulses like mong, lentils, green beans, peas etc
- Preparation of snacks
- Manufacturing or preparation of namkeens
- Baking of food also comes under the same category of food business
- Preparation or manufacturing of tinned food materials
- Frozen food business can be the best option to start a food manufacturing business
- Ready to cook packages are the one which are very in demand
7 Important Things to Keep in Mind to Start a Food Manufacturing Business
To start a manufacturing business related to food is not easy. There are multiple things that need to be kept in mind if one is thinking about starting a food manufacturing business. But some of the key things which one cannot ignore if he or she is entering into the food industry are mentioned below:
Basic Research to Start a Food Manufacturing Business
- Do market research with respect to the food manufacturing business
- Research about the competitors
- Your primary research must be regarding the target customers
- Research about the location of the business
- Research regarding a unique name for your business
- Must research with respect to the food item which you are going to supply in the market
- Start building contracts as networking is also important for a business
- On the basis of research draft a good business plan
- Do a thorough research regarding the type of entity suitable for your business
Business Incorporation
There are many types of business registrations. One must register its entity as per the business. In the current blog we are talking about starting a food manufacturing business. As per this business some of the suitable entities are:
- Private Limited Company Registration which can be done online
- Limited Liability partnership Firm, its registration procedure is also online
- One Person Company in case of single owner
- Joint ventures are also possible with the help of joint venture agreement
- Partnership firm can be a good option if you are going to start a food manufacturing business on a local area with boundaries
Legal Compliances
As mentioned above also that there are certain legal compliances which one needs to fulfill to start a food manufacturing business in India.some of them are mentioned below:
- Obtain a trade license from the local competent authorities. This license is also known as business license
- If the turnover of your business is above Rs. 20 lakhs must obtain GST Registration
- Take a MSME registration if it falls under the same category. It will give you a number of benefits
- Obtain a shop and establishment certificate on the registered business address
- Take the permission of the local authorities to start a food business
- Get a organic testing certificate
- Verify the nutrition chart
Obtain FSSAI License
As per the Food Safety and Standards law of India that is FSS Act of 2006 its compulsory to all the food businesses to work with the FSSAI License. If it is found that they are working without this license given under FSSAI Act, they may attract penalties. Hence you must start a food manufacturing business after obtaining the proper license as per your business. Basically Food registration are of three types: General FSSAI Registration, State FSSAI Registration and Central FSSAI Registration.
In the manufacturing of the food industry these licenses are applicable on the basic of the production per day like:
- If the production capacity is more than 2 MT per day than the Central FSSAI License will be applicable
- If the production capacity is between 1 MT- 2MT per day than the State FSSAI License will be applicable
- If the production capacity is up to 100 kg/per day than the General FSSAI Registration will be applicable
IPR Protection
For a new business it’s really important to protect the business’s intellectual properties. In the food manufacturing business mainly there are two types of intellectual properties applicable. First is trademark registration where one registered their trademark with the competent authority. Second is to patent the method of food manufacturing which has been used in your plant. This is known as patent registration.
Water Testing Certificate
For most of the manufacturers, whose manufacturing process involves usage of water either directly or indirectly water testing is mandatory. Hence to start a food manufacturing business also requires the same. As it is obvious in food manufacturing water is definitely going to be used. For this purpose one has to send water for the testing in the labs. After the testing if everything is good they will provide you with a water testing certificate. And you can use this wherever it is required.
FSS Act Compliances
- Proper hygiene must be maintained
- Water must be tested then used in the manufacturing
- Proper labeling on the products
- Mention the ingredients on the food product
- Curve adulteration of food
- There must not be anything toxic in the food
- Get FSSAI License for the business
Conclusion
To start a food manufacturing business anywhere in India, involves several important steps and considerations. You need to comply with the post compliances of the business like to conduct primary and secondary research. Understanding your competitors, identifying your target customers, choosing an appropriate location, and developing a unique business name is equally important. Additionally, it’s crucial to decide on the type of entity suitable for your business. Legal compliance is essential, including obtaining a trade license, GST registration, MSME registration, shop and establishment certificate, FSSAI license, and various testing certificates.
Intellectual property protection through trademark and patent registration is vital, and water testing certificates are required due to water usage in the manufacturing process. This comprehensive approach will help you navigate the complexities of the industry and ensure a successful start.
