How to Start a Small Scale Biscuit Manufacturing Business

This article includes a detailed biscuit making sample project profile with cost, machinery, production process and raw materials. Also, it contains 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 completely two different types of business model that you can escalate in India. One is a small-scale biscuit manufacturing unit. And it only sales the biscuit in the local market. And another is a medium-scale unit that sales biscuits through a wide distribution network. Both the models have the own pros and cons. However, the second one ensures better revenue return and has easy expansion potential.

10 Steps to Start a Profitable Biscuit Making Business

Step 1: Analyze the Market Opportunity For Biscuit Making

The biscuit market is very promising and expecting a higher growth in the near future. 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 the electronics media is effective in the Indian consumer market. Simply, offer as many as variety you can at a cheaper price than an established brand.

Step 2: Determine your Product

After analyzing your local market, determine your 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 Project Report or Business Plan

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 a software. A plenty of software solutions available in the market to get the financial analysis and cost profit calculations.

However, if you don’t have any technical idea about the machinery, production process, 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 Making 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, the 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 purpose.

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

Step 6: Procure the Biscuit Making Machinery

Broadly, you can set up the unit either as semi-automatic or fully-automatic basis. A small-scale unit better runs as 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 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 the commercial biscuit making, you need the basic raw material wheat flour. You must arrange the regular supply for 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 some out of the box packaging idea. You must provide attractive and moisture proof packaging. Also, pay attention to the outer cartoon for bulk supply.

Step 8: Biscuit Making Process & Production Flow Chart

The biscuit making process is very simple. However, 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



Step 9: Quality Control

Quality control and GMP (Good Manufacturing Practice) is the important aspects in 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 a rising growth these days. In India, the rural market penetration plays an important role in the overall success of a biscuit brand. Electronics media and outdoor advertising are also very effective in terms of getting public awareness. It is better to cater 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.