Start a Spice Business in India

An overview of the Indian spices market

The taste in food comes from two things, one is due to the cook and the other is due to the spices. And when it comes to Indian food, you cannot even think without spices. Cumin, coriander, turmeric powder, chili powder, black pepper, cloves, cardamom, nutmeg, mace, cinnamon, different types of spices are grown and used in every state of India.

Apart from this, many spices like Chat Masala, Chola Masala, Pav Bhaji Masala, Sabzi Masala, Bread Masala are sold in the market for different vegetables and dishes. If you want to do business of spices and want to make yourself a businessman then you must read this article till the end.

Before Starting a Business: Profit and Capital

So the thing is that before starting any business, the only thought that comes to mind is that it has profit. So that the business capital does not get lost. So first of all, let us see how big is the spice market in India. In ancient times, India’s spice business was spread till Rome and China. In the global market, India is known for the fragrance, texture and Ayurvedic properties of its spices.

India: The Home of Spices

In terms of spices, India has the largest domestic market in the world. India is called the Home of Spices because there are 109 types of spices listed in the ISO i.e. International Organization for Standardization. Out of them, 75 i.e. 75 types of spices are grown in India.

Export of spices: A growing market

In the financial year 2020, India exported spices worth $3.62 billion. Vietnam, Hong Kong, Bangladesh, Thailand, Malaysia and Sri Lanka are all in the top ten important exporters of Indian spices. In the financial year 2019, India’s highest trade in terms of value was of chili pepper products, spices, cumin, turmeric, black pepper, curry powder, pastes, cardamom seeds, turmeric and garlic.

There is scope in the manufacturing business because even after fulfilling the domestic needs, lakhs of tonnes of spices are exported from India. So let us know step by step how you can start this business from scratch.

Steps to start spice business

1. License and Business Registration

So here first of all it is necessary to obtain license and business registration and for this your first step will be to establish a one person company by getting ROF registration from the Registrar of Forms. After this you need a trade license which you will get from the local authority, after that you will need Udyog Aadhar.

Just like Aadhar card, Udyog Aadhar is Aadhar for Business which is a twelve digit number which you can get by applying in Ministry of Micro Small and Medium Enterprises Government of India. If you search Udyog Aadhar on Google, you will see the website of Udyam Registration dot gov.in where you will get detailed information.

Apart from this, you can also get this MP registration done for your special person, the benefit of this will be that if the Central Government starts a subsidy program, then you will be able to apply for it. If the spices are used on food items, then you will have to take a food license from ADI i.e. Food Safety and Standards Authority of India.

After starting the business, if you want to do export-import business for years, then for this you will need ICICI or import-export code.

2. Business setup: location and infrastructure

Number two is, apart from the business license, to set up a manufacturing business, you will have to increase your weight along with 205 grams of materials, machinery and replacement, for which companies need space for the factory, so you need a stage of at least 500 square feet where you can do the work of spice grinding machine, drying space, keeping raw material and packaging.

3. Machinery: determining quality

Now let’s talk about the third point where it comes to machines because without them spices will not be prepared. The quality of the spices you make will also depend on how finely ground your spices are. To set up a spice factory, you need at least a flying machine, impact pulverizer, double school warehouse, a family spice mill and equipment to crush things.

All these machines will cost between five to seven lakh rupees or the price can be even higher according to their production capacity, quality and features. The price of Interpol State is between one lakh to one and a half lakh rupees. Similarly, the double stage pulverizer costs two to two and a half lakh rupees. So, for this, you will have to find a good supplier or company from which you can get the machine at the lowest price.

4. Business capital: investment and financing

And the fourth point tells you that if we talk about spice manufacturing, then you will also have to work on business capital. If you have your own place available, then you will save the cost of 40 lakhs. Even after this, including business registration, machine, labor cost, electricity, parking, labeling, sales and marketing raw material, it will take 10 to 15 lakh rupees to set up a large scale business. If you have shortage of capital, then you can apply for this loan and if you get government subsidy, then your expenses will be reduced a bit.

5. Raw Material: Selection of Spices

After this comes the turn of the thing without which the business of spices is not possible, that is the spices themselves i.e. the raw material. For this you will have to decide what basic spices you will keep in your product like cumin, coriander, chilli, turmeric, cloves, cardamom, bay leaf, big cardamom, black pepper, cinnamon, apart from these, curry leaves powder, ginger-garlic, nutmeg, mace, saffron, tilak kewda, flaxseed, kasuri methi, fenugreek seeds, asafoetida, mango powder, pomegranate seeds, there are many such names which you can give place to in your business or it will also depend on capital and manpower because if you can answer them ultimately then only you will get profit, so for the beginning, choose those spices which are needed every day and in every kitchen, along with this you will have to find a good supplier who will give you good quality spices at the right price.

6. Wholesale market: search for suppliers

Well, in every state you will find spice traders who will supply you spices in bulk on hall read. If you want to go to the biggest market of the spice, then it is in Delhi’s Khadi Bavli market, definitely visit there thrice or apart from this, you can also explore the spice market in every state capital. Talking about South India, in Kerala you will find almost all kinds of good quality spices like nutmeg, dry ginger, cinnamon, fennel, black pepper, cloves, cardamom and vanilla etc. After the raw material reaches your factory, there is a long process of preparing them like cleaning. To keep the quality of spices right, their cleaning is very important so that when your spices are ready, they look clean and their aroma also comes out.

7. Spices processing: cleaning, drying and grinding

After this, the next step is drying i.e. drying because drying the spices is also an important process so that when they are ground, they become powdered properly and the spices remain crisp, after this shopping i.e. some spices are such which are available whole like Belongs Pooja Pitra Black Pepper, they can be branded according to the quality so that they can be sold at different rates and finally comes grinding, that is when it comes to making a powder of the spices and selling them, it is very important to grind them, hence by using a good machine and grinding them two to three times, you will get good results.

8. Competition and building a customer base

Point number 7 is invalid, which is that if all the strong computers are already available in the market, then you can increase your customer base only with your quality and reasonable price. As a startup, this will be your priority, then you will quickly make a place in the market. To grow your business, you will have to operate in both retail and wholesale mode. For this, play your local market and surrounding areas and also look for markets in your nearby states. If you are in a place from where any export business is possible, for example, if your area is adjacent to Bangladesh, Sri Lanka, Nepal border, you can also become an exporter of spices. Phone number 8 comes from this year, marketing is such a factor that increases the business, that is why there should be one or two people in the team whose sales and marketing skills are very good.

9. Sales and Marketing Strategies

Apart from this, if there is a fair, trade fair or haat bazaar near you, then take your stuff there too, maybe you may get an inverter. If you want more detailed information about price manufacturing or need spotted help to start a business, then you can contact the Institute for Industrial Development, which will increase your knowledge and also guide you in setting up the complete setup, starting from the machine. This is an effort of the Ministry of MSME on behalf of the Central Government to make people self-reliant. For more information, you   can visit www.irctc.co.in . Wish you all the best.

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