How and Why to Start Your Own Food Processing Industry? 33 Profitable Food Manufacturing Business Plans
How and Why to Start Your Own Food Processing Industry? 33 Profitable Food Manufacturing Business Plans. Processed Food Business Ideas for Startup.
In India, the food sector has high growth and profit potential. Also, you can find a lot of opportunities here. The Indian food and grocery market is the world’s sixth-largest in terms of volume. And the food processing industry accounts for 32% of the country’s total food market. Manufacturing of food products like spice powders or curry powders is a growing industry within the subset of the food manufacturing industry. Spices and curry powders play an important role in enhancing the flavor and taste of the processed foods – making them an essential part of cooking at households and restaurants. India produces almost all the known spices and is the largest exporter of this commodity. Hence, there is tremendous opportunity for setting up a food manufacturing business that caters to domestic demand or export demand. In this article, we look at the process for setting up a food manufacturing business in India.
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Food License
Every food business owner including a petty vendor/ hawker needs to obtain a Food license from FSSAI. FSSAI stands for the Food Safety and Standards Authority of India. The FSSAI license is of 3 types:
FSSAI Registration
FSSAI State License
FSSAI Central License
Application for FSSAI Registration / License can be made either offline or online. For obtaining the license offline, the food business owner shall send an application to the Licensing Authority along with requisite fees. However, for online license/ registration, the Food Licensing and Registration System (FLRS), portal launched by FSSAI can be used.
On completion of the registration process, an FSSAI license number is provided to the food business operator. If the food business is operating in more than one state a central license will be needed for the head office / registered office. The license is issued with varying validity from 1 year to 5 years. Heavy penalties are levied on operators running a food business without FSSAI Registration/License.
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Legal Licenses Required for Starting a Food Business in India
1. Food License
2. Trade License/ Eating House License
3. Liquor License
4. Fire Department NOC
5. Shops and Establishment Registration
6. Pollution clearance
7. License for playing music or videos
8. Tax registrations
o Income Tax
o GST (Goods and Service Tax)
o Professional Tax
9. Labour law Registrations
10. Infrastructure Licenses
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Food processing is the transformation of agricultural products into food, or of one form of food into other forms. Food processing includes many forms of processing foods, from grinding grain to make raw flour to home cooking to complex industrial methods used to make convenience foods.
Primary food processing is necessary to make most foods edible, and secondary food processing turns the ingredients into familiar foods, such as bread. Tertiary food processing has been criticized for promoting over nutrition and obesity, containing too much sugar and salt, too little fiber, and otherwise being unhealthful in respect to dietary needs of humans and farm animals.
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Food processing is any method used to turn fresh foods into food products. This can involve one or a combination of various processes including washing, chopping, pasteurizing, freezing, fermenting, packaging, cooking and many more. Food processing also includes adding ingredients to food, for example to extend shelf life.
What are the Methods of Food Processing?
Food processing includes traditional (heat treatment, fermentation, pickling, smoking, drying, curing) and modern methods (pasteurization, ultra-heat treatment, high pressure processing, or modified atmosphere packaging). Some of the common methods are described below:
Canning
The food is heated to a high temperature. This process is called pasteurisation. Then, the food is packaged and stored in an air-tight can. Check our infographic showing the processing steps for canned tomatoes.
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Fermentation
The breakdown of sugars by bacteria, yeasts or other microorganisms under anaerobic conditions. This means, no oxygen is needed for the process to take place (apart from oxygen present in sugar). Fermentation is notably used in the production of alcoholic beverages such as wine, beer, and cider, and in the preservation of foods such as sauerkraut, dry sausages, and yoghurt, but also for raising dough in bread production.
Freezing
Food temperatures are reduced to below 0°C to decrease the activity of harmful bacteria. The process can be used to preserve the majority of foods including fruits, vegetables, meat, fish, and ready meals.
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Modified Atmosphere Packaging
Air inside a package is substituted by a protective gas mix, often including oxygen, carbon dioxide and nitrogen – gases that are also present in the air we breathe. They help to extend the shelf life of fresh food products - usually of fruits, vegetables, meat and meat products, and seafood.
Pasteurization
Food is heated and then quickly cooled down to kill microorganisms. For example, raw milk may contain harmful bacteria that cause foodborne illnesses. Boiling it (at home) or pasteurising (on a large scale) is crucial to ensure it is safe to consume. Apart from dairy products, pasteurization is widely used in preservation of canned foods, juices and alcoholic beverages.
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Smoking
A process of heat and chemical treatment of food to help preserve it by exposing it to smoke from burning material such as wood. Smoked foods usually include types of meat, sausages, fish or cheese.
Additives
Food additives play an important role in preserving the freshness, safety, taste, appearance and texture of processed foods. Food additives are added for particular purposes, whether to ensure food safety, or to maintain food quality during the shelf-life of a product. For example, antioxidants prevent fats and oils from becoming rancid, while preservatives prevent or reduce the growth of microbes (e.g. mould on bread). Emulsifiers are used for instance in improving the texture of mayonnaise, or stopping salad dressings from separating into oil and water.
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Main Benefits of Processed Foods
Ø Palatability and sensory improvements
Ø Preserved and improved nutritional quality
Ø Safety
Ø Preservation, convenience and choice
Ø Reducing health inequalities and concerns
Processed foods like pre-cut vegetables and meat are quality convenience foods for busy people and for those who can’t visit a faraway market to buy vegetables and meat.
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Benefits of food processing include toxin removal, preservation, easing marketing and distribution tasks, and increasing food consistency. In addition, it increases yearly availability of many foods, enables transportation of delicate perishable foods across long distances and makes many kinds of foods safe to eat by de-activating spoilage and pathogenic micro-organisms.
Processed foods are usually less susceptible to early spoilage than fresh foods and are better suited for long-distance transportation from the source to the consumer.
When they were first introduced, some processed foods helped to alleviate food shortages and improved the overall nutrition of populations as it made many new foods available to the masses.
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Scope of Food Processing Industry
As per an estimate, India’s current food processing industry is estimated at USD 130 Billion and expected to attract huge domestic and foreign investment. Some of the key factors which are likely to increase the demand for processed food and consequently the food processing industry in the coming years are –
India is a country of over 1.25 billion population. With rising middle class having a considerable disposable income, the domestic market offers 1.25 billion opportunities for the sector.
India ranks no 1 in the world in the production of milk, ghee, ginger, bananas, guavas, papayas and mangoes. Further, India ranks no 2 in the world in the production of rice, wheat and several other vegetables & fruits. If the surplus production of cereals, fruits, vegetables, milk, fish, meat and poultry, etc. are processed and marketed both inside and outside the country, there will be greater opportunities for the growth of the sector.
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Due to rapid urbanization, food habits are changing rapidly towards value-added foods. The change is accentuated by the fact that over 65% of India’s population is 35 or under, who are inclined to have processed food.
Next to China, India is among the fastest growing economies in the world. The recent quantum jump in the ease of doing business ranking of the World Bank (from 130 to 100) indicates the conducive business climate in the country and expected to attract foreign investment into this sector.
As per an estimate, around 40 percent of total food production is wasted due to the inadequate facilities for transportation, storage, processing and marketing. If these deficiencies are addressed, there is a huge scope for the development of the sector.
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Here is the list of profitable business ideas and opportunities in food processing industry
2. Apple Chips
7. Besan Plant
10. Chocolate
11. Corn Flakes
12. Dal Mill (Pulse)
13. Dehydrated Onion
15. Egg Powder
18. Instant Noodles
19. Iodised Salt
23. Peanut Butter
26. Potato Flakes
31. Spice Powder
NPCS, holds a special place, globally and hence ought to be taken as an important part of business ventures as per the modernization with all sorts of increasing trends. Thereby, we hereby inform you to reach out to us in case of expanding or commencing into the same, requiring detailed base projects for the betterment of the business venture. We help you analyse the market, confirm the plant and machinery, look into financial requirements, manufacturing techniques, etc.
For detailed analysis and research-based understanding of the Project, please reach out to Niir Project Consultancy Services (NPCS) for a detailed report, Business Plan on the same. Our report covers all the crucial points in the elaboration, inclusive of plant and machinery confirmation, analysis of the market, cost of raw material, balance sheet, Manufacturing Process, and various other important aspects.
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