Do you want to start a vermicelli manufacturing business? Find here a detailed stepwise guide with a vermicelli production business project sample profile. Also, the article includes vermicelli production process, raw materials, market opportunity and machine details with price.
Basically, vermicelli is a pasta product. Also, it is popular as spaghetti. And the people in the Indian subcontinent consume it in different cooked food items. Some of the major popular recipes are Upma, khichadi, payasam barfis, halwa, Puliyogare, Curd Semia etc.
As the major raw material is wheat flour, the vermicelli is a rich carbohydrate food. Hence, irrespective of age, a large section of people consume it is on a regular basis.
Apart from a large-scale operation, you can start vermicelli manufacturing project as a small or medium scale basis. It requires low capital investment for building infrastructure and procuring machinery. This project is financially profitable both as an automatic and semi-automatic model.
8 Steps Guide to Start a Vermicelli Manufacturing Business
Step 1: Analyze the Market Potential
Actually, vermicelli comes under the instant food or fast food item. And homemakers prefer this food. Due to the rapid urbanization, changing lifestyle, and increasing disposable income, a large demographics are showing interest in this type of products.
The small grocery stores, departmental stores, malls, and supermarkets are the ideal places to sell vermicelli.
Before initiating the project, you must analyze the local market demand and supply condition. Also, check the packaging details and price of the established local and regional brands of your area. It will help you in determining important aspects of your project.
Step 2: Craft the Project Report or Business Plan
This is the first major step that you need to take very carefully. It is not that you need a project report only for getting financial assistance from the banks. But you need the business plan to start the project smoothly with fewer mistakes. Basically, a project report helps in securing funds and establishing the unit properly.
In the report, you need to craft both parts including technical aspects and financial calculations. The financial cost calculation and expected profit ratio depend on the technical aspects of the project. Here, we put some basic cost as a sample profile.
The sample project capacity is 60 tonnes per year. The plant operates two shifts a day with each shift of eight hours duration.
- Plant machinery = 6.690 Lakh
- Laboratory equipment = 0.500 Lakh
- Transport vehicle = 7.500 Lakh
- Cost of power connection = 0.500 Lakh
- Cost of electrification = 0.650 Lakh
- Erection and commissioning of = 0.650 Lakh
- Cost of machinery spares = 0.250 Lakh
- Cost of office equipment = 1.000 Lakh
- Deposits if any = 0.600 Lakh
- Company formation expenses = 0.100 Lakh
- Gestation period expenses = 0.500 Lakh
- Licenses & Tax registration expenses = 0.100 Lakh
- Initial advertisement and publicity = 10.000 Lakh
- Contingencies = 0.500 Lakh
- Working capital margin money of ( in case of a loan) = 5.625 Lakh
Total Project Cost = 35.165
Step 3: Arrange the Capital
According to the project cost, you will need to arrange the capital. Usually, the project cost depends on the production output and unit size. if you have your own capital it’s good. Otherwise, you will need to apply for the loan. And there are several processes to get the financial assistance. You can apply for project finance or machinery hypothecation or of=verdraft facility for the working capital assistance.
Step 4: Vermicelli Manufacturing Business Registration & License
Vermicelli is a food item. And production and marketing of food item require complying with the PFA Act. First of all, you need to register your business organization. And then apply for Trade License. You can also register with MSME Udyog Aadhaar online. It will help you in getting Government grants and subsidies.
Apply for FSSAI registration. It is the must for packaged food production. Obtain a NOC from the State PCB. Also, you can secure the brand name of your product with Trademark registration.
Step 5: Select Location
For this type of manufacturing business, you need a location in the industrial zone. Check if there is any food park or not. Getting a space inside a food park will allow you starting the business with several advantages. Generally, you can start a small-scale vermicelli manufacturing business with a 1000 Sq Ft covered space. Additionally, you need electricity and adequate water supply for the processing and general use purpose.
Step 6: Vermicelli Making Machine & Cost (Fully Automatic or Semi-automatic)
Basically, you can initiate the vermicelli production unit either as semi-automatic or fully-automatic basis. A fully automatic system comes with dough preparing system, vermicelli production system and dryer. However, for a beginner, we advise starting as a semi-automatic project.
The cost of the vermicelli making machine depends on the production output. Generally, these machines come like 10 to 12 kg. Per hour to 130 to 150 kg per hour. You have to procure the machine according to your desired production output. Apart from the vermicelli making machine, you will need
- Dough kneader (Flour mixer Machine)
- Baby boiler and accessories
- Dryer Machine
- Weighing Scale
- Pedal sealing machines
- Laboratory equipment
Step 7: Vermicelli Raw Materials
The only major raw material is wheat flour or Maida. Always use good quality wheat flour to get the best quality finished products. Also, you need to procure the packaging consumables. You can pack in 200 and 500 gm pouches. Additionally, you need outer cartons and packing strap for bulk packaging.
Step 8: Vermicelli Production Process
Vermicelli production process is simple and well standardized. First of all, mix the wheat and other flours in small quantity with around 25% to 30% of water in a mixer. Knead for about half an hour and prepare the dough.
You can prepare it with the help of a dough mixer or vermicelli Flour mixer). Then put the mixed dough into a vermicelli extruder. This vermicelli machine uses extrusion principles that will change the dough into vermicelli threads. This vermicelli (Sewai) making machine is run by electricity.
Finally, cut them into the desire length and then place in the tray drier for drying. Drying temperature is around 55 – 65°c and the time required is 1.5 to 2 hours. After getting the finished products, you need to pack in the right quantity.
Vermicelli Production Process Flow Chart
Mixing Raw Materials
Drying / Roasting
Packing of vermicelli
Vermicelli manufacturing is a highly lucrative business for the entrepreneurs who want to start a small venture in the food industry. You can produce some additional products like noodles and pasta from the same unit using the most of the same machinery.
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.