In this article, we intend to explore how to start commercial noodles manufacturing business. Also, this post includes noodles making sample project report guide with cost, profit, and noodles making machine price.
A small-scale noodle manufacturing business is a profitable venture in India. Depending on the local demand, you can also produce instant noodles, egg noodles, vermicelli, macaroni, spaghetti, and pasta. As a value-addition, you can also produce ready-to-cook packaged soup production from the same unit. So, the business has diversified opportunities in the expansion.
Noodles is a popular food item in India. Almost every domestic household use noodles on a regular basis. Apart from this, restaurants, canteens, street food stalls, clubs buy noodles frequently. Hence, the product has a good market throughout the country. Additionally, the product has good export potential in the Asia Pacific region.
With medium capital investment, an entrepreneur can start a profitable noodle-making business. The business demands knowledge about the retail distribution and management skills.
8 Steps Guide to Start a Noodles Manufacturing Business
Step 1: Analyze the Domestic Demand & Market Potential
Increasing population, rapid industrialization, increasing the purchasing capacity are a few major reasons for increasing the noodles demand in the urban area. It’s a ready-to-eat product and the shelf life is higher. So, the working women and housewives both prefer this food item in regular use.
Starting a small-scale business in the food industry requires analyzing the local market first. First of all, check the most available and popular noodles brands in your are. Check their packaging, quantity packing, quality, and price. If possible, try to understand their product promotion strategy, distribution network, retail sales commission, etc. These all will help you in the decision making process.
Step 2: Prepare Noodles Manufacturing Project Report
In starting this business, you will need to prepare a project report. It is advisable that you consult with an industry expert to get help. Whoever may prepare the project report, you will need to provide general inputs like machinery cost, raw material cost, etc. The financial part of the project reports heavily depends on the technical aspects. Here, you can find a sample cost calculation of a proposed Noodles manufacturing plant.
- Land & Building Construction = Rs 9,85,000
- Machinery & Equipment = Rs 4,74,000
- Pre-operative Expenses = Rs 35,000
Total Fixed Cost = Rs 14,94,000
Staff Salary = Rs 30,500
Raw Materials = Rs 1,90,000
Utilities = Rs 11,000
Other Contingent Expenses = Rs 29,000
Total Working Cost (per month) = Rs 2,60,500
Total Working Cost for 3 months = Rs 7,81,500
So, Total Projected Project Cost = RS 22,75,500
You can reduce the cost, you if start the unit at your own space or at a rented space. The cost may differ depending on the unit size.
Step 3: Arrange Project Cost
After preparing the project report, you will need to arrange the finance. There are several Govt. subsidy schemes are available for the small-scale industry. So, you must check that. If you don’t have the sufficient capital in hand, then you can apply either for a project loan or for a specific loan like machinery hypothecation or overdraft facility.
Step 4: Business Registration & Licensing
Starting small scale noodles making business requires following registration & licenses.
- First of all, register your organization. Other than the proprietorship option, you will need to check the name availability first. At that time, also check the domain availability.
- Apply for GST Registration
- Apply for the Trade License from the local Municipal Authority. They will ask you for a certain amount to deposit as the fees.
- Apply for MSME Udyog Aadhaar online. It’s not mandatory. However, it helps in getting the Govt. subsidies and loans.
- The packaged food processing operation requires FSSAI registration. It is mandatory.
- Also, you can apply for the BIS certification if you want to sell the product throughout the country. BIS specification for Noodles is IS: 1485:1976.
- Apply for the Trademark registration of your brand name
- For selling in foreign countries, you will need an IEC number.
Step 5: Secure Location & Set up the Unit
Depending on the unit size, you will need a commercial cover space. Generally, you can start a small-scale noodle manufacturing business with an 800 Sw Ft space. You will need electricity and water supply. Also, check the transport availability near the space.
If you don’t have your own space, then it’s better to start the business with a rented space. It reduces the overall project cost and you can utilize the money in business expansion and enhancing the sale.
Step 6: Procure Noodles Manufacturing Machinery
After securing the space, you will need to procure the noodles making machine. You can find a lot of machinery suppliers throughout the country. So, check the machine price carefully. Also, check the customer’s feedback if possible. Buy the machine only from a reliable and established machine manufacturer or supplier.
The specific machinery requirement and the machine cost depends on the operation mode ( semi-automatic or fully-automatic) and unit size. Here, we put a basic list of machinery requirements.
- Vertical type powder mixer with motor complete
- Dough mixer blade type
- Noodles making power operated machine with different size die-heads
- Wooden trays 1000 pcs.
- Plastic Buckets with the cap.
- Aluminum/Galvanised iron water tape pipeline fittings
- Water boiler fuel heated
- Weighing machine
- Packaging machine
Step 7: Arrange Raw Materials
The main raw materials are wheat flour or maida and starch. Additionally, you will need sugar, common salt, spices, garlic, ginger, Sodium Bicarbonate, etc. Actually, the requirement of the ancillary ingredients depends on the specific taste and flavor you want to provide in noodles.
Also, you need to packaging consumables. You need to pack the noodles in a moisture-proof packing. And you need to provide a strong outer carton box for the bulk supply. So, arrange the supplies accordingly.
Noodles Manufacturing Process
The major manufacturing process depends on the presence or absence of gluten. However, you can add a small amount of nutrient but these do not affect the organoleptic qualities or processing properties of the material.
First of all, add the water in the extrusion step. And remove it after drying. However, you can sell the wet noodles as a fresh product to the local restaurant owners or food stall owners.
Wheat flour noodles are usually produced by sheeting and rolling, while other types are typically produced by extrusion or batter cooking methods.
The modern instant noodles are steamed and fried in Hydrogenated Vegetable Oil, have a fat content of about 20%, and added salt and edible gum and a Shelf Life of 6-8 Month. Instant noodles are fast cooking, needing 2-3 minute boiling or rehydration in boiling water.
You can produce noodles in different sizes, hollows as well as solid. The flavor and taste in the instant noodle are created during the re-hydration in boiling water by adding a mix known as a tastemaker of the different flavors.
The channel distribution plays a major role in the noodles manufacturing business. Also, you need to promote both the brand and the product to get the wide consumer appeal.
Noodles Making Business from Home
If you are not sure of jumping into noodles making business in commercial-scale but want to taste the water before, you can try to make noodles from home and understand your immediate market in a better way. Presently, there are some companies providing good quality noodles making machine on the online market.
The market potential of noodles is increasing day by day. If planned properly with proper dedication, you can earn a lot of money from noodles making business.
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.