This article consists of a step-by-step guide on how to start a fruit juice production company on the small-scale. It also includes the production process, machinery details, raw material requirements,s, etc.
Starting a fruit juice production company is a profitable and lucrative venture. However, the business demands careful planning and substantial capital investment.
Fresh fruit juice is a popular item in the beverage industry compared to other packaged drinks. In addition, the consumption of packaged fruit juice is increasing rapidly. Due to its ready-to-eat property, people prefer packaged fruit juice. Additionally, the global juice market is expected to witness significant growth in the recent future.
The global juice market including fruit juice and vegetable juice holds a major share of the global beverage industry. Rising preferences for healthy products and increasing health awareness are fueling the demand for fruit and vegetable juice, in the overall beverage industry.
Furthermore, fruit and vegetable juices are gaining popularity as health and dietary concerns are growing among the consumers. Different flavors of juice that are a blend of fruits and vegetables are gaining popularity with consumers.
Currently, orange juice holds the major demand in the global juice market, but other juices like apple juice, grape juice, pineapple juice, tomato juice, grapefruit juice, and other single fruit and vegetable juices, mixtures of juices are gaining high attention. So starting a fruit juice manufacturing company is a profitable opportunity for entrepreneurs.
7 Steps Guide to Start Fruit Juice Production Business
Step 1: Fruit Juice Production Company Registration & Licensing
This is the first step in starting a fruit juice manufacturing business. Check your state law for registering the business. And accordingly, register your company. Fruit juice manufacturing is a food processing and packaging business. So check the licensing formality from the health department and other concerning departments of it. In India, you will need the following licenses and permits.
- Trade License from the Municipal Authority
- MSME Udyog Aadhaar Registration
- FSSAI registration
- AGMARK registration
- Compliance with FPO Act
- NOC from State PCB
Step 2: Fruit Juice Production Business Plan
This is the most crucial step in starting this business. You must craft a business plan in hand before commencing the business. Do some market research. Try to find out the most popular juices in your locality. Additionally, check what are the raw materials available there. Determine your range of products. Determine the packaging quantity and system. Try to figure out your potential competitors. And how you will compete with them. Craft a financial calculation with a cash flow and expected ROI.
Step 3: Location
Securing the right business location is extremely important in the manufacturing business. Furthermore, you must provide space for storage, production, office operations, etc. Try to find out a location where you can access manpower, transportation, and other utilities like water and electricity. It is advisable to start the business from a rental property. Because it will reduce your startup budget compared to buying a property.
Step 4: Equipment & Raw Materials
According to your desired quantity output, you will need to procure the machinery and equipment. Additionally, it depends on what type of juices you will produce. Generally, you can establish the unit on a semi-automatic or fully-automatic basis. If you are starting a business with less experience, then never go for fully-automatic arrangements. Furthermore, a semi-automatic plant allows you to know the subject better and scopes for further scale-up. Some of the basic equipment you need
- Knives (stainless steel)
- Cutting boards
- Juice extractor
- Analytical balance
- Stainless steel saucepan
- 10kg scales
- Measuring cylinder
- Capping machine
- Wooden spoons
- Plastic funnels
- Plastic buckets
- Cleaning equipment (brushes, scourers, cloths, hosepipe, etc)
- Gas cylinders with burners.
According to the product, you will need to procure the raw materials. As the raw materials (fresh fruits) are highly perishable items, you must ensure the regular supply.
Step 5: Fruit Juice Production Process
For all the fruit-based beverages, the first stage is the extraction of juice or pulp from the fruit. The following are the key manufacturing stages:
- Selection and preparation of raw material
- Juice extraction
- Filtration (optional)
- Batch preparation
- Filling and bottling.
You can use any fruit to make fruit juice, but the most common ones include pineapple, orange, grapefruit, mango, and passion fruit. Some juices, such as guava juice, are not filtered after extraction and are sold as fruit nectars.
Step 6: Staffing
Starting a fruit juice manufacturing company demands various operational activities like production, purchase, accounting, and marketing. So you will need to employ the right manpower for the different work responsibilities.
Step 7: Promotion
Quality and attractive packaging play important role in product promotion. Because it helps to create good visual aspects. So a durable and attractive packaging is a must for this business. Additionally, the overall success of this business depends on the wide distribution network.
However, try to tap the local market first. And then concentrate on expanding. Additionally, focus on institutional selling. In any sort of consumer food product item, outdoor advertising and television advertisement play a big role. However, ensuring the availability of your product in every possible retail location is the most crucial aspect of a successful fruit juice production company.
Rupak is the founder of MUVSI. He is a small business consultant by profession. His mission is to make people know how to make money and understand personal finance for a better living.