Imagine a country with Indian grains, and fruit-bearing trees, where dairy cultivation flourished. A little further forward, and you look at rowed stores with imported snacks and beverages. This is the tragic new reality of India, with a $ 5.3 billion processed food deficit.
This story is remembering a chapter, one that will be written by entrepreneurs, which will aim to convert the country’s raw food yield into a high -quality processed food.
Why is this a great opportunity
India leads the world in the production of food, grains, fruits and vegetables. At the same time, we import processed food of more than $ 5.3 billion every year. This is a very strange situation.
Indian entrepreneurs have every raw material at their disposal. In fact, the Government of India has extended a hand to create new enterprises that promise to increase the value of our crops and create better durability supply chains.
Therefore, these new start-up enterprises can aim to produce drinks, chocolate and other snacks to replace imported products.
Take a close look at the figures
Saying that the food processing industry is currently one of the hottest areas in India. It is expected to grow at a stable rate every year and create employment opportunities for about 7 million people in this process.
Now we analyze India’s imports. India imported in last year:
- Drinks and Drinks: $ 1.54 billion
- Processed fruits and nuts: $ 4.19 billion
- Coco and Chocolate Products: $ 512.7 million
- Snacks such as pastries and grains: $ 156.6 million
There is a clear tendency that these items should be built locally in India.
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Where your startup may fit
The following are some industries in which new businesses can excel.
First, cocoa and chocolate products
India exports a significant amount of cocoa powder and chocolate variety. Therefore, entrepreneurs can invest in small scale chocolate manufacturing units based on bean-to-bar technology. Another interesting suggestion is to make plant-based chocolate spreads which are in demand in the market.
Next, health and herbal beverages
The rate of beverage imports in India is increasing rapidly. Therefore, instead of importing beverages, there is scope for making innovative beverages locally. For example, no one can make crafts such as Kombucha. In addition, you can create a health drink inspired by Ayurveda using indigenous herbs.
In addition, dehydrated fruits and nuts
It is the highest category of imports that produce highest business capacity. New ventures can sell popular snack products such as freeze dried fruits. Similarly, no one can manufacture walnuts such as almond butter, cashew butter and other fruit pulp for separate industries.
Read More: 10 Best Food Manufacturing Business Ideas for Entrepreneurs
Also, extradited snacks and immediately prepared food prepared
Various types of imported premium snacks and breakfast things are available in the country. Therefore, new enterprises can use indigenous millets such as tidal and quinoa to make immediate breakfast mixture and other nutritious food.
Additionally, you can introduce targeted gluten-free pasta and healthy protein breakfast grains to welfare-oriented consumers.
Practical business ideas you can start today
Which businesses can you start? Think of these direct options.
- Start a cocoa grinding unit: Local chocolaters can be supplied with processed cocoa.
- Make a healthy beverage plant: Herbal tea, infected water and Ayurvedic beverages can be made and bottled.
- Build a nut processing hub: Install a nut cleaning, roasted and packaging feature.
- Open a freeze drying facility: Produce premium snacks using fresh fruits and vegetables.
- Launch a millet breakfast line: India’s super-day can be used to make breakfast grains.
- Develop a fermentation lab: Special sauce and vinegar can be made from local fruits.
Read More: List of 33 Profitable Food Manufacturing Business Plans
What can the government do to help you?
The government is ready to help you for your credit, for your credit. Many schemes are available.
- For example, the PMKSY provides funds for the manufacture of large -cycles such as scheme, food parks and cold storage chain systems.
- The PMFME scheme provides small business with 35% credit-linked subsidy to help them get off the ground.
- On the other hand, the PLI scheme provides subsidy for the manufacture of food products within India’s borders.
- And, the ODOP scheme focuses on a particular product of a district and provides branding and marketing aid.
Learn from successful companies
Additionally, major Indian corporations have lessons to shine. For example, Tata, ITC and Marico are already progressing for the manufacture of these products in India.
Tata is innovating new health drinks, while LT Foods is marketing instant millet food worldwide. These reflect the demand for processed foods made in the country.
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Simple Steps to Get Started
Some more tips for your trek are as follows:
- First, pinpoint the districts with the greatest raw material agricultural potential and try to situate your plant there.
- Then, the establishment of a comprehensive cold chain and logistics for the sustained delivery of fresh and high-quality products is a worthy investment.
- Subsequently, apply for available government grants and subsidies as soon as you can.
- Also, ensure compliance with domestic and FSSAI as well as global quality and safety standards as this will enable you to export later.
- Last but not least, to acquire assistance in technology and new concepts, collaborate with research organizations such as NIFTEM.
How NPCS Can Help You
NPCS has an established reputation for assisting right from the inception to making an idea a reality. Niir Project Consultancy Services helps you by providing a detailed Techno-Economic Feasibility Report (DPR) that serves as a rough blueprint of the entire project.
The project comprises extensive documentation relating to the market, the processes that are to be undertaken, and the associated machinery. Apart from that, we assist you in determining the financials of the project which is the essence of having adequate funds in the business, or obtaining project loans, or funds from government facilitation grants.
Leveraging NPCS’ extensive, multi-decade experience, you will be guided on selection of optimal projects along with favorable regulatory approvals for easy and confident kickstart of food processing business.
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Conclusion: Your Future in Food Processing
This is the right moment for an entrepreneur to set foot in the food processing sector in India. India has abundant raw materials, along with considerable government assistance. For the entrepreneur, that provides an excellent opportunity to build a successful business.
From an Indian perspective, it will aid in the creation of more jobs, and diminish the dependency on food imports. Additionally, it has the potential to elevate India to a more favorable position in the food processing industry. In essence, there is a need to “Make in India” for the internal and external markets.
Food Processing Business: Frequently Asked Questions (FAQs)
How much does India spend on imports of processed foods?
As of the 2023-2024 period, India is estimated to spend more than $5.3 billion on processed foods each year.
Which food products have the highest value in imports?
Startups can take full advantage of the larger imported categories such as processed fruits and nuts ($4.19 billion) and beverages ($1.54 billion).
What government assistance is available for starting new food processing businesses?
For infrastructure, the government provides the PMKSY scheme, for micro-units under the PMFME scheme (35% credit-linked subsidy) and the PLI scheme for fostering domestic manufacturing.
As a foreign investor, can I retain 100% equity in a food processing firm?
The government permits full Foreign Direct Investment (FDI) in the food processing sector on an automatic basis.
Which potential new venture opportunities are highlighted in the report?
Such ventures include processing of cocoa, plants for herbal beverages, facilities for freeze-drying fruits, and ready-to-eat snacks based on millets.