Cheese and paneer are the two major products in the dairy industry. And the demand for these items is increasing very fast. Any individual can start a cheese and paneer manufacturing business on a small-scale basis. Find here a detailed cheese and paneer manufacturing business plan sample checklist.
Basically, cheese and paneer are value-added dairy items. Basically, paneer is fresh cheese. It is also known as cottage cheese. Actually, paneer is an unaged, acid-set, non-melting farmer cheese or curd cheese. However, packaged paneer ensures good quality and longer shelf life than loose paneer.
Is Cheese & Panner Making a Profitable Business in India?
Milk and its products are essential consumer items of daily life. Therefore, the items come under the FMCG segment. The demand for these items is increasing both in rural and urban areas. Additionally, vegetarian people are the major consumer of these items.
In India, paneer and cheese are popular in both north and south India. Cheese is originally from southern Italy. Additionally, it is an essential ingredient for several pizzas and pasta dishes. Consumption of cheese has several health benefits associated with it. It is a good source of Vitamins, minerals, and proteins.
There are several reasons for the growing demand for this item. These are changing food habits, increasing fast-food chains, and over-consumption of pasta, pizzas, and easy availability of raw materials such as milk.
Cheese & Paneer Manufacturing Business Project Plan
1. Market Analysis & Business Plan
In initiating the business, it is advisable to study your local market. You can find several established companies in the market right from Amul to Nestle. Study the price range, quality of the packaging, sales strategy, etc. These all will help you in making your own business model.
Additionally, you must have a comprehensive project report in your hand. According to your investment capacity, you must craft the project report. However, you can also avail of finance from banks or other financial institutions.
2. Business Compliance
Cheese and paneer both are food items. Therefore, the production business demands specific licenses and permits. Check your state law. Additionally, check the tax liabilities also.
In India, you will need to obtain an FSSAI registration. Apply for BIS certification also. As per the management pattern, register your business. For a small operation, you can start the business as a proprietorship company. Apply Udyog Aadhaar. You can apply for online registration.
GST Registration is a must at present to start a manufacturing business in India.
3. Plant Setup & Machinery
First of all, decide whether you want to start with both two products or with a single product. Accordingly, you will need to secure a space for it. Generally, paneer manufacturing is an easier business than cheese production. According to the project report, secure a space for the unit operation. Ensure that the space has adequate electricity and water supply.
Generally, this type of factory operation comes with a production line. You can install the plant in two ways. Either on a semi-automatic basis or a fully automatic basis. And these all depend on the desired production output and investment capacity. According to the project report, procure the machinery from a reliable supplier.
4. Learn Cheese and Paneer Manufacturing Process
Basically, cheese comes in many varieties. The variety determines the ingredients, processing, and characteristics of the cheese. The basic steps involve standardization of milk, pasteurization, cooling the milk, adding bacteria, forming cheese, cutting, and packaging.
First of all, you will need to process the milk by skimming it in a cream separator. Then heat the skimmed milk to about 60 degrees centigrade. Then add a few drops of lime extract or citric acid to split it. After that, filter the coagulated mass through a muslin cloth and filter press when the cake is obtained. Then slice it manually to the desired weights, pack it in wax paper, and store it under refrigerated conditions.
5. Cost of Starting Cheese and Paneer Making Business
The cost and investment will depend on the size and production output. The major cost you will have to bear is the cheese and paneer-making machine. It costs around Rs. 25,000 for a 10 kg tray capacity.
The other investments will be in factory space, compliances, and hiring manpower. You will need around 1000 sq. ft of workable area to establish the paneer manufacturing unit. On average, you can start a cheese and paneer manufacturing unit on a small scale by investing around Rs. 5 lacs to Rs. 10 Lacs.
6. Arrange Funds
If you are short on funds and unable to source money from your relatives and friends, visit a nearby branch of a bank and ask for initial funding. You can also check out if there are any government schemes and subsidies to avail of.
There are also some excellent personal loan apps in India that offer personal loans instantly. You can check them out.
In addition, apply for a credit card to meet short-term expenses.
7. Raw Materials
In both cases, the major required raw material is milk. Therefore, you will need to ensure the regular availability of milk at your unit. Additionally, you will need to procure the packaging consumables. You must provide quality packaging to ensure the freshness and longevity of the product.
Generally, this type of manufacturing business demands quality and efficient manpower. According to your plant setup, you will need to hire quality manpower. Broadly, you will need to have three dedicated teams. The first is for production, the second sales team, and the third is for managing administrative work including accounting.
It is without saying, the long-term success of FMCG products depends on the successful distribution network. In addition, you will need to concentrate on tying up with the malls, supermarkets, and retail chains. Also, do not forget to create a website because it is now almost mandatory to go online for any business to be successful.
Overall branding and advertising are a must in the cheese and paneer manufacturing 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.