In terms of production, consumption, export and growth
prospects, the Indian food processing industry is one of the
largest in the world. With the emergence of new markets and innovations, the
sector has widened its reach. Mass scale production of ready-to-eat food,
drinks, processed and frozen fruits and vegetables, marine and meat products,
etc., has been able to meet the growing worldwide demand for food. Establishing
post-harvest infrastructure in the form of cold storage facilities, food parks,
packaging centres, value-added centres and irradiation facilities has helped
preserve food for rising worldwide food demand.
While billions of people in the country continue to celebrate
festival after festival, the food industry is on a high. Fueled by what can be
considered a perfect ingredient for any industry — high disposable incomes —
the food sector has witnessed a marked change in patterns of consumption,
especially in food terms. The current size of the Indian food industry is
around $40 billion and is expected to grow by 27% – 30% and will need
double-fold growth over the next 3 years, taking into account today’s rising
demand trend.
In addition to this, there are other motivating factors for
setting up food industry in India such as vast source of raw material, switch
from conventional food grain farming to horticulture, India’s vast population
out of which much of the urban middle class is shifting their food habits
significantly, low cost of production, shifts in consumption patterns,
implementation of food parks and attractive fiscal incentives by the
government.
The generic steps of establishing industry in this sector can be
summarized as below:
Market Research: Knowing the market potential
for a particular product or for whatever product is available in the market.
Market research is a useful tool for reducing risks and achieving success. In
order to understand the environment around the food processing industry in the
present scenario, financial and competitive research must be performed by food consultant having an expert level understanding
of the business idea. Extensive secondary market research needs to be done in
order to measure the business, pricing, and trends.
Business Conceptualization: Based
on market research results, the company has to select an idea based on multiple
factors including core competence & interest levels. The decision has to be
on a rational basis.
Establishing Business Entity: Business
structuring is a very important decision at the beginning of the business.
There are different types of businesses entities that can be set up in India,
such as Private Limited Company, Public Limited Company, Partnership and
Limited Liability Partnership (LLP).
Therefore, agreeing on the right business structure is
important.
Location Analysis: Ideally, one has to
locate the project or factory close to the raw materials site, but there are
other considerations to keep in mind as well. The government usually provides
corporate subsidies and tax exemptions to different states/locations. And, this
is achieved by location analysis which takes into account all the variables,
including tax and government incentives, the availability of manpower,
electricity, water, land price, etc.
Business Plan
Formulation: The business plan must be
formulated as it is a very useful road map to determine where you are and where
you want to be. A properly crafted business plan developed by a food industry consultant would serve the
blueprint of narrative and financial worksheets for your upcoming manufacturing
business ideas.
Fund Raising: There
is a need for funds depending on the type and scale of the company, so you need
to find the most suitable way to raise it. There are also a number of special
schemes for central and state government supporting organizations for the same
Company
Registration: After the right business entity
has been determined, the company must be registered with the appropriate
authority by filing the necessary incorporation forms. Also, the tax
registrations that are required are PAN, GSTIN, Excise & Customs
Registration and Service Tax.
Registration with
appropriate food authorities: Food and Food
Safety Licenses from FSSAI and you can obtain the same fulfilling all criteria
and some assistance from the leading food safety consultants in the market
trade License to make sure that you are not committing illegal business
practices with your unit. Registrations under Shops & Establishment Act and
under Factories Act Industrial License under Industrial (Development &
Regulation) Act, 1951 Licenses under the Essential Commodities Act, 1955 to make
sure that the good quality products are manufactured and sold.
Registrations under the Food Safety and Standards Act, 2006 and under Standard
and Weight Measure Act. Other registrations with Central and State government
keeping in mind the exact business model under food processing industry like
MSME, MakeInIndia etc.. for getting benefits a subsidiaries
Intellectual Property Rights Registration: To
protect the brand name, trademark, copyright, and design or watermark
registration IPR registrations are necessary.
Infrastructure Planning and Setup: You
need proper infrastructure support such as; land, construction, water,
electricity, transportation, etc. Mecha-structural Settings the machinery &
automation support for the manufacture of food products must be assessed,
selected and installed.
The specifications can vary from a normal food processing unit
to set up a beverage company. Specifications in terms of raw materials,
licenses and certifications can be slightly different so you can seek help from
the marketplace’s best beverage consultants to assist them with
the method.
Human Resource Planning: Manpower
is required in various areas such as manufacturing (workers), supervision
(technicians), and administration, finance, advertising, and misc. So you would
need a Human Resource team to procure the same.
Business Strategy
execution: Now it’s time to implement whatever
you’ve put forward. Like the plan for Administration, HR, Advertising &
Sales. That is how you get started with your food production system, but make
sure that you assess that decision that affects you and move with your guide or
mentor.
Government Schemes & benefits: Coming
to the government’s assistance and subsidiaries, one can conveniently go online
and read more about and benefit from the government’s various schemes and
programs. Schemes such as Pradhan Mantri Kisan SAMPADA Yojna (PMKSY), the
establishment of mega-food parks, large-scale cold chain systems, the
development and expansion of food processing and preservation capacities,
agro-processing clusters, etc…
The government has also created regulatory bodies like National
Horticulture Board (NHB), National Horticulture Mission(NHM), Agriculture and
Processed Food Products Export Development Authority (APEDA) and Ministry of
Micro, Small and Medium Enterprise etc for helping the unit owners with every
possible assistance. To know more you can visit https://mofpi.nic.in/Schemes/related-schemes-other-agencies and
educate yourself on the various government-run schemes and benefits.
