How to start a bakery unit in India- Blog

start a bakery unit
How to start a bakery unit in India
Jan 5th,2017/ start a bakery unit

’’Failure is simply the opportunity to begin again, this time more intelligently.’’

Bakery business is one of the largest food processing industry. Bakery products are popular in all parts of the country. The business is very lucrative as one can start with it by just renting a space. Choosing the correct product and right marketing strategy are the key factors of this business. Choose your products, as per your financial capabilities and demand aspects. The very first step to start a bakery in India is, drafting a good plan. A well-created business plan with following points always helps the top officials & future investors.

Steps To Start A Bakery

A huge population of India prefers fresh bakery products from local places. The Bakery products are consumed at huge quantity because of its low prices and changing tastes of the growing population. The bakery business is the third most revenue generating sector of the food processing industry.

Over 50% of biscuits are used up by the rural regions. West Bengal and Maharashtra have the highest per capita consumption of bakery products.

Market size for this business has increased by US$ 3 billion, in the past 5 years. Biscuits industry is said to be the shining star of this sector.

Therefore, opening a bakery unit is a promising business venture for a startup entrepreneur.

In order to start a bakery unit, you need to register your business at the Register of Companies & apply for Food Business Operating License from FSSAI i.e. the Food Safety & Standards Authority of India. All the fire safety terms & guidelines must be followed. Individual licenses are required from FSSAI for delivery vehicles & delivery boy.

The owner might have to register the business SSI at the DIC office (local). You must also get your Vat Registration done along with getting a clearance from the Pollution Control Board.

It is important to evaluate your financial status before starting a bakery. A good credit situation helps in securing loans from reputed banks or financial institutions for your business plan. It is important to keep your documents updated. You need to divide your bakery business finance into:

  • Fixed Capital – it includes commercial area, machineries, etc.
  • Working Capital – generally cash and other liquid stuff used to run business, regularly.

Following ways will help you in securing start-up finance:

  • Credit cards
  • Institutional or angel investors
  • National & Local government grants
  • Business loans
  • Gifts from near &dear ones

Always have a customized unit establishment report in hand so that you can arrange the workplace and install the machines at the right place. Choose an area, where bakery product demand is high as well as it offers smooth transportation facility. Design a layout, before installing your machines.

PFA Act, 1954 is compulsory but the BIS Conditions are voluntary for the Wafer Biscuit units. The owner must consider – The applicable BIS Requirement for Wafer units (2nd revision) (with the Amendment Number. 2) - IS: 2397:1988. The requirements for Biscuit units (3rd revision) (with the Amendment Number. 1) -IS: 1011:1992. For more details, try to reach Bureau of Indian Standards.

You can setup a fully automatic or a semi-automatic bakery unit, as per your requirements. Usually, biscuits, wafer, bread making units required the following machinery and kitchen essentials: Wafer-biscuits making machine, weighing balance, working table with aluminum top, sealing gear, planetary mixer, sugar grinder, butter mixer, aluminum vessels, gloves, spoons, mats, ladle, mugs, cups, etc. You will also need to arrange for water supply & electrification.

The major raw materials of a bakery business are wheat flour, eggs, sugar, ghee, milk, yeast, baking powder, cream, butter, salt, etc., which can be easily bought from the local wholesale stores or from the direct manufacturer. A large-scale bakery unit can setup its own flour mill.

For biscuits, calculated amount of vanaspati, maida, water, starch, etc. are mixed to form a smooth paste, which is poured into mould (pre-heated) to bake the wafer sheets. Now, ingredients like vanaspati, sugar, essence & colors are mixed to form smooth cream which is applied baked sheets to form a sandwich. Thereafter, sandwiches are into biscuit shapes and are packed, for sale.

For cakes, baking powder, wheat flour, ghee, sugar, eggs, caramel color, cream, etc. are mixed till it becomes smooth. Chopped fruits are added before the cake mixture is poured into baking pans. The cakes are baked for 30-40 minutes. The baked cakes are iced with fudge or buttercream and decorated with finely chopped fruits or delicious chocolate strips.

You can also go for a fully automatic unit.

To make you bakery and products popular among people, you need to try a few promotional ideas. As you receive your permits, decide your bakery name and design its logo. The following methods can be used to make your bakery popular:

  • Brochures
  • Business cards
  • Emails and eCards
  • Use social media for example, by creating Company page on Facebook, etc.
  • You should use designed packages with company’s logo & contact information on the boxes, so that the potential buyers can find you easily.
  • If your budget allows, you can have a grand opening ceremony.
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