How to Start a Small Scale Iodized Salt Production Plant

Do you want to start an iodized salt production business? If Yes, find here a detailed iodized salt manufacturing business project sample profile with the production process, machinery and cost.

Actually, iodized salt or iodised salt is a table salt with iodine. Consumption of iodized salt prevents the iodine deficiency in the human body. Therefore, it helps in preventing the thyroid gland problems, including the endemic goiter. In many countries including India, iodine deficiency is a major public health problem. And we can easily address it with the regular consumption of iodine salt in a small quantity.

So, let us explain first what is an iodized salt. Actually, iodine is a micronutrient and dietary mineral. Also, it is an essential trace mineral essential for human development and growth. And salt is an effective medium for distributing iodine. Iodized salt production is possible by spraying it with a potassium iodate or potassium iodide solution. The production process is simple. Also, you can initiate the business on the small-scale basis.

10 Steps in Starting Iodized Salt Production Business

Step 1: Market Study

Iodized salt comes under the FMCG segment. So, the product has already a good demand in the Indian retail market. Not only the domestic market, iodized salt has good export potential too. India is the third largest salt producing country in the world after China and USA. Some of the major importing countries are Malaysia, South Africa, Nigeria, Fiji, Mauritius etc.

You can find a lot of established manufacturer in the market. Therefore, you can check the packaging quantity and price that are popular. And these will help you in determining the price and other necessary inputs.

Step 2: Project Report Preparation

In starting this type of medium-scale unit, you will need to craft the customized business plan or project report. Broadly, you will need to detail the technical part and the project economics. If you have some prior experience and knowledge, you can prepare the plan of your own using the specific software solutions. Otherwise, you can take professional help.

In the business plan, you will need to mention organization detail, mission, vision, business objective. The technical part includes the market opportunity, manufacturing process, raw materials and quality control. Here, we have provided the sample profile for your ready reference.

Step 3: Finance Arrangement

According to the project report, you will need to arrange finance. You will need to arrange both the fixed capital and working capital. The fixed cost includes plant & building cost, machinery purchase, and pre-operative expenses. On the other hand, the working capital cost includes raw materials, utility, transport etc. It is advisable to start the project with bank finance or at least machinery hypothecation or overdraft facility.

Step 4: Business Registration & License

Initiating iodized salt production business requires business registration first. You will need to register the business according to the specific form of organization. Definitely, you will need to select a name of the company.

After getting the business registration, apply for the MSME Udyog Aadhaar registration. Also, obtain the Trade License from the local Municipal Authority. You can secure the brand name with Trademark Registration. Apply for FSSAI license and BIS registration for using the popular ISI mark on your product packaging.

Step 5: Manufacturing Unit Establishment

In establishing the manufacturing unit, you will need to secure a space first. Generally, the requirement of the specific area depends on the unit size and production output. However, you can initiate a small-scale operation with a 1000 Sq Ft of covered area.

Also, you need electrification and water supply facility. It is better to craft a floor plan before installing the machinery. You have to arrange the electrical wiring also according to the specific requirement.

Step 6: Procure Machinery

In starting a medium scale iodized salt production unit, you will need the following machinery.

  1. Silos (stainless steel)
  2. Crushers (Roller/ball)
  3. Belt Conveyor
  4. Spraying chamber (SS) for Potassium iodate solution.
  5. Mixers
  6. Packing Machines

Step 7: Procure Raw Materials

To operate the plant, you will need to procure the necessary raw materials. According to the 1987 BIS standards, to get 30 ppm of iodine, you will need to add 50 ppm of potassium iodate. So, you need edible grade salt as the main raw material. Also, you need technical grade Potassium iodate 40 ppm/25 ppm. Finally, you need packaging consumable like polythene pouch bag and outer cardboard cartons for bulk packaging.

Step 8: Recruit Manpower

For the production operation, you will need to recruit efficient and skilled manpower. Broadly, you will need to build a production team, an accounting department and a marketing team. Though the specific manpower requirement depends on the business model, here we put a basic list of manpower requirement.

  1. Production head
  2. Machine operator
  3. Accountant
  4. Factory assistant
  5. marketing manager
  6. Sales executive

Step 9: Production Process

First of all, feed the raw salt to a conical shaped hopper and crush it with a high carbon steel roll crusher to the size of 2-3 mm. Then, convey this salt through an inclined conveyor to discharge point at the ground. Spray the 0.1% aqueous solution of potassium iodate over a mixing bed of salt of thickness 10-15cm, by air pressure. This iodized salt in mixed in a horizontal mixer for uniform mixing of Iodine. Pack the finished product from the hopper in a fixed amount. Alternatively, you can pack it in one Kg poly pack for direct sales.

Potassium iodide is not stable. Therefore, you will need to add stabilizers (like calcium carbonate) to reduce the loss of iodine, in the case of using Potassium Iodide. The iodate, on the other hand, is stable up to 560 Deg C. Except in extreme.

Step 10: Retail Distribution

In our country, the retail distribution is the most effective way of capturing the market. However, it needs proper planning and leadership. Also, you need right manpower who knows the distribution nitty gritty. Apart from this, the supermarkets, shopping malls, food delivery apps and online marketplaces are also very viable options these days. Moreover, you need a solid marketing plan with backed up effective resources. We hope this article about iodized salt production business will help you in starting your own venture.