Do you want to start a small-scale jam jelly manufacturing project? This article includes a detailed jam jelly-making business project sample with machinery, cost, and raw materials. Also, it contains important inputs in starting a jam jelly production business with a small investment.
India has diverse agro-climatic conditions, varied soil types, and abundant rainfall. Due to this, our country is a potential grower of high-value horticultural produce. Fruits are an important source of energy for human-beings but they are perishable items. However, we can prepare en number of value-added products that have a larger shelf life.
In the entire food processing industry, jam and jelly are the most common product that you can produce easily. It needs minimum machinery. Hence, the fixed capital cost is so less. Even, if you have already a 9 to 5 job, then also you can consider this business to start. Also, you can produce other products including fruit bar, juice, sauce, pickles from the same unit.
10 Steps in Starting Jam Jelly Making Business
Step 1: Understand the Product (Difference between Jam & Jelly)
Jam and jelly are two different products with different characteristics and production processes too. However, the products have similarities also. Both jam and jelly are made with fruits or fruit components. So, you must understand the products properly first.
|Jam refers to a product made with whole fruit, cut into pieces, or crushed.||Jelly is a clear fruit spread consisting of firmed fruit (or vegetable) juice.|
|Jam contains fruit pulp||Jellies have the juice form of fruit.|
|The gelled syrup that can’t hold itself in its place||Clear and sparkling and holds itself in its place.|
|Only food accompaniment||Both food accompaniment, and dessert|
|Jam looks hazy||Jelly looks clear|
Step 2: Analyze the Market Opportunity
Jam and jelly are important food products as they enhance the palatability of food due to its taste and flavor. As they contain fruits, they supplement the food with vitamins and minerals. Hence, these products have very good market potential.
Most of the households, restaurants, other eateries, clubs, hostels, etc. consume jam and jelly regularly. Also, these are the major selling products in many outlets like grocery shops, departmental stores, etc. Additionally, the demand for jam and jelly is growing year after year.
In the Indian market, you will find a lot of established brands like Kissan, Smucker’s, Druk, Tops, Cremica, Patanjali, etc. However, the market is predominantly for the small units producing these products in the specific region.
Step 3: Prepare the Project Report
Preparing the business plan or project report is the first step. Broadly, you need to mention the project overview, business objective, technical aspects, project economics with cost, and marketing plan. The technical aspects contain the raw material list, production process, etc. Also, you will need to mention where you will procure the raw materials.
Jam Jelly Making Sample Project Cost
- Land, building & civil work: Rs. 6,75,000.00
- Plant & machinery: Rs.5,72,000.00
- Fixed asset: Rs. 2, 37,000.00
- Preliminary & preoperative expenses: Rs. 1, 96,000.00
- Contingency & escalation: Rs. 74,000.00
- Working capital: Rs 1,21,000.00
Total Project Cost = Rs 18,75,000.00
Step 4: Marketing Plan
The marketing plan of the proposed project may include a promotional campaign like offering special discounts, referrals, advertisement, new product development, etc. Also, you can consider the packaging innovations and tie-ups with buying houses.
The effectiveness of distribution coverage and practice is of paramount importance in achieving the desired jam and jelly sales. Hence, understanding the distribution channels is crucial for the manufacturer to plan and implement an effective distribution strategy. So, you must provide extra emphasis on building a potential distribution network.
Additionally, you can gain market share through enhancing retailer, and distributor margins. Finally, you can consider utilizing the media like broadcasts, newspapers, and also social network platforms to introduce the products and also attract more customers.
Step 5: Business Registration & License
In our country, initiating a jam jelly-making business even on a small-scale requires business registration. Apart from the sole proprietorship firm, you can register the organization as LLP or Pvt Ltd or Ltd company.
After registering the business, you will need to check the required business licenses and permissions. Depending on the location, you will need to obtain Trade License. Apply for MSME Udyog Aadhaar registration online. Also, you will need to get the FSSAI registration. An FPO license is necessary to start a fruit processing industry in India. Currently, GSTIN is a must in our country for any type of business.
There is no major pollution problem associated with this industry except for disposal of waste, Hence, you must manage it appropriately. You should apply for a “No Objection Certificate” from the State Pollution Control Board.
Step 6: Arrange Finance
Now, you will need to accumulate the necessary finance. If you have your own capital, then you don’t need to take any loans. However, you can apply for the entire project finance from the banks or other financial institutions. If you have enough capital for the fixed cost, then also you can apply for a working capital loan as an overdraft facility.
Step 7: Establish the Unit
Location selection is the most important aspect in establishing the unit. Also, you will need to consider the utilities that you need in operating the unit. You will need a sufficient water supply and electricity. Generally, the specific area required depends on the unit size and production output of your project. However, you can start a small-scale operation from a 1000 Sq Ft of covered area.
Step 8: Procure Jam Jelly Making Machinery
- Pulper Machine
- Slicing Machine
- Juice Extractor
- Steam Jacketed Kettle
- Bottle Washing and Filling Machine
- Baby Boiler
- Cap Sealing Machine
- Stirrers, SS Utensils, Burner, Weighing Scales, Hand Gloves
- Miscellaneous Tools and Equipment
- Testing Equipment
Step 9: Procure Raw Materials
To start the commercial production, you will need to procure the necessary raw materials. The major consumables you require are fruits, sugar, pectin, additives, preservatives, food colors, etc. Also, you will need to procure the packaging consumables like plastic jars, pouches, labels, cardboard boxes for outer packing, and adhesive tapes.
Step 10: Jem Jelly Making Process
Commercial Jam Production
First of all, you will need to wash the fresh fruits in water and remove the skin. Then cut or slice them into small pieces. Boil these pieces with water. Then, mix the appropriate quantity of sugar with the pulp. When the temperature is around 60°C, add citric acid, color, essence, etc. Then stir this mixture for a while. After cooling, pack in the bottles.
The process flow chart:
Washing, peeling, and slicing of fruits
Mixing of sugar with pulp
Commercial Jelly Production
First of all, wash and peel the fruits. Feed them to the hopper of a juice extractor. After obtaining the juice, filter it. Certain fruits like rosella or guava need boiling in water before extracting juice. Then, add the sugar to the juice and boil this mixture to convert it into jelly form. Here, add pectin, citric acid, color, etc. in the required quantity. Boiling is done till jelly-like formation is obtained. After cooling, pack the jelly.
The process flow chart:
Washing and peeling of fruits
Addition of sugar in juice
Cooling and packing
In the commercial jam jelly-making business, you need to maintain the product quality. Mention the manufacturing date, quantity, MRP, and expiry date on the label.
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.