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How to Start a Small Scale Biscuit Manufacturing Business in India

This article will provide you with a detailed biscuit-making manufacturing sample project profile with cost, machinery, production process, and raw materials. Also, it contains a financial analysis with the business license and permissions you need to start a small-scale unit.

If you love baking and have a keen interest in the food processing sector, then it is one of the best businesses for you. Also, it is a financially lucrative venture. Basically, biscuit manufacturing comes under the conventional bakery industry.

Broadly, there are three different types of business models that you can start. For beginners, one can start home-based with very little investment. The second one is a small-scale biscuit manufacturing unit aiming to sell primarily in the local market. And another is a medium-scale unit that sells biscuits through a wide distribution network. Both models have their own pros and cons. However, the second one ensures better revenue return and has easy expansion potential.

10 Steps to Start a Biscuit Manufacturing Business

Step 1: Analyze the Market

The biscuit market is very promising and expects higher growth in the near future. The biscuit market is all about effective decision-making, and strategic planning as to how to sell, what kind of packaging should be done, what will be the pricing strategy, etc.

Generally, the success of a biscuit brand depends on several factors including innovative packaging, new flavors, tastes, shapes, etc. Also, rising health consciousness among consumers through electronic media is effective in the Indian consumer market. Simply, offer as many as varieties you can at a cheaper price than an established brand.

Step 2: Determine your Product

After analyzing your local market, determine the product that you are going to produce. It’s very important. Biscuits are easy to carry, tasty to eat, cholesterol-free, and reasonably priced. Actually, different types of biscuits you can find in the market. Some of the most popular are thin arrowroot, sugar-free, wafer, salted, cream biscuit, coconut biscuit, ginger biscuit, jeera crunch, digestive, etc.

Hence, you will need to determine what specific type of biscuit you want to produce. Also, you need to fix the shape, taste, and flavor. Because you have to procure the mold according to the shape. Also, you have to craft the specific recipe as per the taste and flavor you want to provide.

Step 3: Prepare the Business Project Report

The next step is crafting a customized project report or business plan. If you have some prior experience in the biscuit industry and you know the technicalities, then you can craft the plan with the help of software. Plenty of software solutions are available in the market to get financial analysis and cost-profit calculations.

However, if you don’t have any technical idea about the machinery, production process, or raw materials, then it is better to consult an industry expert. The financial aspect of a project report depends on the technical part. Here we have provided a sample cost of the project.

Cost of the Project

  • Building = 25,00,000
  • Plant and Machinery = 80,00,000
  • Furniture and Misc. = 2,00,000
  • Land = 2,00,000
  • Preliminary and preoperative exp. = 80,000
  • Working capital (3 months) = 41,00,000
  • Total = 1,50,80,000

Step 4: Biscuit Manufacturing Business Registration & Licenses

In starting the biscuit-making business, you will need to register your business first. Apart from the proprietorship operation, you have to register with the state ROC as LLP or Pvt. Ltd or Ltd. company. Only after getting the registration, you can apply for the necessary permissions and licenses.

First of all, apply for the MSME Udyog Aadhaar registration. It helps in getting the Government subsidy and financial assistance. Apply for the Trade License from the local Municipal authority. Obtain GSTIN for the tax submission.

As you are going to produce the food item, compliance with the PFA Act is mandatory. Apply for the FSSAI registration and BIS certification to use the ISI Mark on your product.

Step 5: Set up the Unit

Now, you have to establish the manufacturing unit. Generally, a production unit must have specific spaces for storage, production, packaging, and official work. Also, it needs some wide space nearby the front gate for loading and unloading purposes.

The size of the unit mainly depends on the production capacity. Generally, you can operate a small-scale biscuit manufacturing unit with 1500 Sq Ft of area. Check the availability of electricity, water supply, and transport facility nearby the unit location.

Step 6: Procure the Biscuit Manufacturing Machinery

Broadly, you can set up the unit on either a semi-automatic or fully automatic basis. A small-scale unit better runs semi-automatic. Also, the specific machinery requirement depends on the production process and output capacity. Here, you can find a list of basic machinery that you need for the biscuit-making business.

  • Automatic continuous Roller cutting machine
  • Flour Shifter automatic screw type vibrator system with an automatic lifting system
  • Suger Grinding Machine
  • Roll Sheeter
  • Double-action horizontal mixing machine
  • Cooling conveyor
  • Oil spraying machine for salted biscuit
  • Turntable working between oven and conveyor fitted with motor and starters
  • Extra Brass roller for rotary cutting machine & roller cutting machine
  • Syrup Machine with one motor & starters
  • Biscuit Grinder with motor
  • Working table with S.S./Aluminium top
  • Weighing Balance platform type

Step 7: Arrange the Raw Materials

In commercial biscuit making, you need the basic raw material wheat flour. You must arrange the regular supply of wheat flour to the unit.  Also, you need other raw materials like yeast, sugar, ghee, milk powder, salt, edible colors, flavors, etc.

Apart from the ingredients, you will need packaging consumables. Packaging is an important factor in the biscuit industry. Think out-of-the-box packaging ideas. You must provide attractive and moisture-proof packaging. Also, pay attention to the outer carton for bulk supply.

Step 8: Biscuit Manufacturing Process & Production Flow Chart

The biscuit-making process is very simple. However, the recipe matters. First of all, mix the calculated amount of maida, soy flour, starch, vanaspati, water, etc. Then knead it properly to the desired consistency. Finally, roll the dough and bake. After cooling pack the biscuits in wrappers.

The manufacturing process flowchart:

  • Making the dough by mixing the ingredients
  • The process of fermentation
  • Giving the shape
  • Baking the raw biscuit
  • Testing
  • Packaging.

Step 9: Quality Control

Quality control and GMP (Good Manufacturing Practice) is the important aspects of the biscuit-making factory. You must maintain the BIS specifications. Also, testing the product before packaging ensures the quality of the biscuit.  All personnel who visit a factory must be aware of the hygiene needs of a food factory.

Step 10: Distribution & Marketing

Currently, the annual growth rate (CAGR) of the biscuit industry is 11.27%. Apart from the basic and premium biscuits, the cookie segment has seen rising growth these days. In India, rural market penetration plays an important role in the overall success of a biscuit brand.

In addition, create an online store in a suitable eCommerce platform not only to sell online but also to enhance your company brand image.

Electronic media and outdoor advertising are also very effective in terms of getting public awareness. It is better to cater to the local market first. And then expand the area. You must have a proper marketing team to make your biscuit-making business a grand success.