Start Flour Manufacturing Company in India: A Complete Guide

Start Flour Manufacturing Company
Shivani Jain
| Updated: Dec 21, 2020 | Category: Business

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:

Flour Manufacturing Company Reasons to start
  1. Deals with Staple Ingredient for Indian Dishes;
  2. Involves Low Capital Cost;
  3. Promises High Returns;
  4. 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:

Flour Manufacturing Company Factors Included
  1. Acquire Financial Support;
  2. Choose an Appropriate Location;
  3. Apply for Licenses Required;
  4. Buy Flour Milling Machine;
  5. Provide Training to Operator and Safety Education;
  6. 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:

Flour Manufacturing Company Types

Basic Mill

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.

Flour Mill

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:

  1. Atta Flour;
  2. Sooji Flour;
  3. Wheat Flour;
  4. Corn Flour;
  5. Gram Flour;
  6. Bran;
  7. Maida Flour;
  8. 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;

Miscellaneous Cost

A minimum of Rs 30 thousand to Rs 40 thousand is required for miscellaneous expenses;

Total Investment

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;

Miscellaneous Cost

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:

  1. Atomizing Dampener;
  2. Scourer;
  3. Centrifugal Fan;
  4. DE stoner;
  5. Flour Cleaning Machine;
  6. High-Frequency Cleaning Sieve;
  7. Intensive Dampener;
  8. Plan sifter;
  9. Pneumatic Flour Mill Machine;
  10. 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:

Basic Mill

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.

Flour Mill

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:

Licenses Required to Start Atta Chakki Company

Business Registration

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.

FSSAI License

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.

GST Registration

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.

Shop License

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.

Trade License

In the case of a Flour Mill, the owner needs to obtain Trade License from the Municipal Corporation of the respective state.

BIS Certification

The proposed owner requires to obtain BIS certification to make sure that the product assures quality and is free from hazardous substances.

Conclusion

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.

Also, Read: Start a Retail Shop in India: Factors & Licenses to Consider

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Shivani Jain

Shivani has completed her B com LLB (Hons) and has the experience of writing various research papers during her college time. Earlier she was working as an Associate in a Delhi based Law Firm, but her interest in writing made her pursue Legal Content Writing as a career. Her core area of interest is in writing about various legal enactments, tax, and finance.

 

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