Start Flour Manufacturing Company in India: A Complete Guide
Flour or Atta plays a significant part in our Indian diet because it is one of those staple ingredients from which most of our dishes are prepared. Further, this ingredient is bought on a regular basis in both urban and rural areas. As a result, nowadays, every embryonic entrepreneur wants to start Flour manufacturing company in India.
In this blog, we will discuss the concept and procedure to start flour manufacturing company in India, together with the licenses required.
Reasons for Starting Flour Manufacturing Company
The reasons to start Flour Manufacturing Company in India are as follows:
- Deals with Staple Ingredient for Indian Dishes;
- Involves Low Capital Cost;
- Promises High Returns;
- Caters to High Demand;
Factors Included in the Business Plan of Flour Manufacturing Company
The key factors of the Flour Manufacturing Company’s Business Plan are as follows:
- Acquire Financial Support;
- Choose an Appropriate Location;
- Apply for Licenses Required;
- Buy Flour Milling Machine;
- Provide Training to Operator and Safety Education;
- Discover Ways to Market the Flour Milling Business;
Types of Flour Manufacturing Company
The different types of Flour Manufacturing Company in India are as follows:
In this type of flour mill, the customer will bring the flour and the owner will provide the grinding of wheat. Further, it shall be considerate to note that in this type of mill, there is no need for huge investment and large land, and the same requires just a few manpower requirements.
In this type of mill, the owner will need a good amount of investment, together with a large land base. Further, under this business structure, grains are purchased, cleaned, and grinded by big machines. After that, the same is sent for packaging.
Also, the manufactured packets are then put up for sale under a particular brand name. At present, the key players of the Flour Manufacturing Company are Patanjali, Rajdhani, Ashirwaad, etc.
Different Types of Flours
The different types of Flour in which a Flour Mill can deal are as follows:
- Atta Flour;
- Sooji Flour;
- Wheat Flour;
- Corn Flour;
- Gram Flour;
- Maida Flour;
- Rice Flour;
Investment Required to Start Flour Manufacturing Company in India
The amount of investment required to start Flour manufacturing company in India are as follows:
Set up Cost for Basic Mill
The cost required for setting up a Basic Mill can be summarised as:
Cost of Land
The same requires around Rs 2 to Rs 3 lakhs;
Cost of Machinery
The same requires around Rs 40 thousand to 60 thousand, depending upon the type of machinery involved, such as Fully Automatic, Semi Automatic, or Manual;
A minimum of Rs 30 thousand to Rs 40 thousand is required for miscellaneous expenses;
The total cost incurred will be around Rs 1 lakh if the land is self owned;
Set up Cost for Flour Mill
The cost required for setting up a Flour Mill can be summarised as:
Cost of Land
The same requires around Rs 10 to Rs 20 lakhs;
Cost of Machinery
The same requires around Rs 5 lakhs to Rs 10 lakhs, depending upon the type of machinery involved, such as Fully Automatic, Semi-Automatic, or Manual;
Cost of Registration and License
Around Rs 10 thousand to Rs 30 thousand will be incurred in obtaining all the registrations and licenses required for starting a flour manufacturing company in India;
Cost of Staffing
The same requires around Rs 30 thousand to Rs 60 thousand, depending upon the set of skills required;
A minimum of Rs 50 thousand to Rs 1 lakhs is required for miscellaneous expenses;
Equipment Required to Start Flour Manufacturing Company in India
The different set of equipment required to Start Flour Manufacturing Company in India are as follows:
- Atomizing Dampener;
- Centrifugal Fan;
- DE stoner;
- Flour Cleaning Machine;
- High-Frequency Cleaning Sieve;
- Intensive Dampener;
- Plan sifter;
- Pneumatic Flour Mill Machine;
- Dust Collector;
Space Required to Start Atta Chakki Business in India
The space required to start flour manufacturing company in India can be summarised as:
One can start a Basic Mill at his/her home also, as the same requires only small equipment, machinery, and space of around Rs 200 sq. ft. to Rs 300 sq. ft. As in this case, the grains will be brought by the customers itself, so no need to install big machinery.
This type of flour business requires heavy machinery, huge investment capacity, a good storage facility, regular audits, and the most important, a large area of land of around 3000 sq. ft. to 4000 sq. ft.
Licenses Required to Start Atta Chakki Company in India
The licenses required to start Flour Manufacturing Company in India are as follows:
To start an Atta Chakki business in India, every proposed owner first needs to get his/her business registered. Further, for starting a Basic Mill, the most suitable form of business format is the Sole Proprietorship Firm. However, to start Flour Manufacturing Company in India, the best type of business format is the Private Limited Company Registration.
In India, a Flour Mill or Atta Chakki business comes under the ambit of the Food Business. Therefore, it is necessary for the owner to obtain an FSSAI License or FSSAI Certificate from the Food Safety and Standards Authority of India.
Udyog Aadhar Registration
Another significant license for a flour mill business is Udyog Aadhar Registration. The same can be acquired by applying online on Udyam Portal.
If the aggregate annual turnover of the business exceeds the threshold prescribed, then, in that case, the owner needs to apply for GST Registration under the provisions of the GST Act.
In the case of a basic mill, the owner needs to obtain Shop License or the Shop and Establishment License from the authorities, as the same ensure that the rights and interest of the people employed are duly protected.
In the case of a Flour Mill, the owner needs to obtain Trade License from the Municipal Corporation of the respective state.
The proposed owner requires to obtain BIS certification to make sure that the product assures quality and is free from hazardous substances.
In a nutshell, flour or atta is a staple Ingredient for our Indian dishes and is consumed by every type of income level. Therefore, nowadays, every individual wants to start the flour manufacturing company in India. Also, the same requires low capital investment but promises high returns.
At Swarit Advisors, our experts will not only guide you with the process to start an Atta Chakki business but will provide end to end assistance as well in obtaining the licenses required.