The namkeen food industry is expanding significantly. The enormous demand for snacks demonstrates the vast potential in this industry. In India and beyond, goods like bhujia, chana-chur, and dal month are well recognised. A fast-paced lifestyle combined with disposable income has caused this industry to flourish significantly. However, this business is rather difficult because you could encounter ups and downs as a result of shifting consumer preferences and the abundance of branded and unbranded goods available on the market today. In India, there are almost 1,000 different types of snack products available, with the biggest brands competing for a sizable market share. But careful analysis of market trends could help you succeed.
Why should you start Namkeen Factory?
There are currently many open doors that are accessible to an entrepreneur. There are several reasons why you should select this food company. Here are a few ways to start your own enterprise in this field. The food industry is flourishing and expanding more quickly.
Reasons why you should start the Namkeen factory are:
High-profit margins exist.
During the festival season, demand rises.
There are many national and international giants that are searching for people to become part of this business.
People who want to work in the food industry have more and more chances available to them, and anyone who capitalises on one of these opportunities always stands a better chance of coming out on top.
Would it be a good idea for you to Buy or Start Your Own?
In general, the sales volumes of purchased snacks and foods indicate progress over new firms. If you’re a business person who is focused on a very unique value arrangement, you can choose the startup strategy. However, you should first conduct a thorough analysis of the comparison in order to understand the intricate elements of the enterprise.
Here is some of the information you would need to have before beginning your namkeen production line.
Namkeen Commercial Production
Namkeen products can be produced on a large scale as well as a small scale depending on your business format. There are a number of branded and fabricated equipment that is used in the production of namkeen snacks. However, in order to carry out uniformity in products, commercial batch-type machinery is essential.
List of Namkeen Equipment You Would Require
The namkeen you produce dictates the type of equipment you need. Some of the general ones that you would need are frying equipment, mixers, grinders, dough, and packaging equipment. If you’re planning a business on a larger scale, spray applicators for seasoning and batter applicators would be required. These applicators are used for accuracy and proper measurements, including consistency in the taste of the product.
Here is a list of the equipment needed:
- Dough Kneader
- Food Processing Equipment
- Batch fryer
- Namkeen Extruder
- Seasoning and Coating Applicators
- Spray Machines
- Product Handling
- Inspection Equipment
An ideal location to start your factory would be close to the source of the raw material. The factory should have a large space for storage of items, and equipment, and also proper and easy access to the road. You could also set up the factory in close proximity to a marketplace so that your products could reach consumers faster and easily without too much hassle.
Setup Cost The business startup cost for a namkeen business would require a minimum of Rs. 10 lakhs. This would include the cost of land, building, machinery, and other miscellaneous assets and expenses. Though you can apply for funds, a minimum of at least 17.5% is to be paid by you. Setting up a factory with a small space in an industrial area would cost you about Rs. 60,000 to Rs. 70,000 in terms of rent. These are just estimates which could differ according to your business plan, machinery, and other costs.
You would have to register your business as a limited liability company or a sole proprietorship company. Your company needs to conform to health and safety rules. A food handler’s card would be needed, which confirms that you have an understanding of food safety, health, and sanitation practices. Your product should get a food and drug number and pass the standard organization certification as well. Another good option would be to have a licensed kitchen since this would imply that you meet a commercial-grade kitchen standard.
Make your product stand out through its packaging, and branding, and give it an attractive name. Your product should be appealing in order to draw the attention of the consumers. Catchy taglines could also be another way to make your packaging attractive.
Marketing the Snack
Sell your namkeen products to grocery stores, departmental stores, and restaurants. Hire sales representatives to apply direct marketing techniques. Advertise your brand in social media, newspapers, local publications, posters, billboards and print handbills.
Evaluate the competition in your locality. You could use the internet to check out similar businesses in the area. Find out how other businesses have set themselves up. Learn, study, and gain adequate knowledge in order to get an idea of how things work so that you do not repeat mistakes that other businesses have already made.
India Namkeen Market, 2023 Analysis
The traditional snack sector in India has experienced rapid expansion in recent years. In the near future, the market is expected to expand at a CAGR of more than 7%. In the last few years, there has been a tremendous demand for Namkeen due to rising consumer awareness of packaged, healthful snacks.
According to the excellent growth rates of regional businesses like Balaji Wafers and Bikanervala at a time when their international competitors are faltering, Indian consumers appear to have rediscovered their passion for traditional snacks like farsan, bhujia, and Namkeen.
The great economic development of India has led to higher purchasing power, which has changed Indian customers’ preferences. It has been seen that consumers are moving away from traditional, local and regional, national brands and toward Namkeen in loose packaging.