List of 33 Profitable Food Manufacturing Business Plans. Processed Food Business Ideas for Startup.
The food processing industry is a vital component of any nation's economy, particularly in agriculture-centric countries like India. It plays a key role in diversifying agriculture, creating value-added opportunities, and producing surplus goods for export. This sector not only commercializes agriculture but also enhances farmers' incomes and generates employment. It encompasses a broad range of activities, including the preservation, packaging, and transportation of food products. Technological advancements have expanded the industry's scope to include ready-to-eat items, frozen fruits and vegetables, seafood, and meat products. The establishment of food parks and investments in supply chain infrastructure further bolster this sector, positioning it as a global leader in production, consumption, and export.
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The food processing industry of India is one of the largest in the world in terms of manufacture, use, export, and development. The sector has immense potential to contribute to growth and employment opportunities of the country.
In the beginning, the food processing industry was limited to procedures of food preservation and packaging that involved drying, salting, and pickling. However, in the last few years, with advancement in technology, the scope of the sector has grown tremendously. The industry now also includes ready-to-eat food items, frozen fruit and vegetable products, and seafood and meat products. The storage, processing, preservation, and transportation of various food items have given rise to many irradiation facilities, cold storage facilities, and packaging centers.
Importance of Food Processing
All the raw food materials are processed to improve their palatability, nutritional value and shelf-life.
1) Preservation for later consumption or sale to fetch better price
2) Removal of inedible portions
3) Destruction or removal of harmful substances
4) Conversion to forms desired by the consumer and
5) Subdivision into food ingredients.
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Investment Opportunities
Fruits and vegetables: preserved, candied, glazed and crystallized fruits and vegetables, juices, jams, jellies, purees, soups, powders, dehydrated vegetables, flakes, shreds and ready-to-eat curries.
Food preservation by fermentation: wine, beer, vinegar, yeast preparation, alcoholic beverages. Beverages: fruit-based, cereal-based.
Dairy: liquid milk, curd, flavored yogurt, processed cheese, cottage cheese, Swiss cheese, blue cheese, ice cream, milk-based sweets.
Food additives and nutraceuticals.
Confectionery and bakery: cookies and crackers, biscuits, bread, cakes and frozen dough.
Meat and poultry: eggs, egg powder, cut meats, sausages and other value-added products. Fish, seafood and fish processing – processing and freezing units.
Grain processing – oil milling sector, rice, pulse milling and flour milling sectors.
Food preservation and packaging: metal cans, aseptic packs.
Food processing equipment: canning, dairy and food processing, specialty processing, packaging, frozen food/refrigeration and thermo-processing.
Consumer food: packaged food, aerated soft drinks and packaged drinking water. Spice pastes.
Supply chain infrastructure – this niche has investment potential in food processing infrastructure, the government’s focus is on supply chain related infrastructures like cold storage, abattoirs and food parks.
The establishment of food parks – a unique opportunity for entrepreneurs, including foreign investors to enter in the Food Processing industry in India.
Food processing involves any type of value addition to agricultural or horticultural produce and the products that there follow. The grading, processing and packaging of foods all fall under this umbrella. The Food Processing Industry sector in India is a global contender in terms of production, consumption, exports and growth prospects.
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Government has initiated the following measures for the development of the food processing sector:
Pradhan Mantri Kisan Sampada Yojana (PMKSY): It is an umbrella scheme that incorporates various ongoing schemes like Mega Food Parks, Integrated Cold Chain, Value Addition Infrastructure, Food Safety and Quality Assurance Infrastructure, Infrastructure for Agro-processing Clusters, Creation of Backward and Forward Linkages and Creation and Expansion of Food Processing and Preservation Capacities.
Mega Food Parks Scheme: It aims at providing a mechanism to link agricultural production to the market by bringing together farmers, processors and retailers to maximise value addition, minimising wastage, increasing farmers’ income and creating employment opportunities particularly in the rural sector. A Mega Food Park entails an area of a minimum of 50 acres and works in a cluster based approach based on a hub and spokes model.
Scheme of Cold Chain, Value Addition and Preservation Infrastructure: The objective of the scheme is to provide integrated cold chain and preservation infrastructure facilities, without any break, from the farm gate to the consumer. It covers pre-cooling facilities at production sites, reefer vans, mobile cooling units as well as value addition centres.
Modernisation of Abattoirs scheme: The main objective of the Scheme is a creation of processing and preservation capacities and modernisation and expansion of existing food processing units with a view to increasing the level of processing, value addition leading to reduction of wastage.
Make In India: As part of the Make In India campaign, food processing sector was identified as one of the 25 focus areas. Accordingly, the policy ecosystem has been revamped to attract financial, technological and human resources into the sector. Allowing 100% FDI through automatic route into this sector is also a significant step in this direction.
Food Processing Fund: A special fund in the NABARD worth Rs. 2,000 crore, designated as the Food Processing Fund, was set up in the FY 2014-15 for providing affordable credit to food processing units in Mega & Designated Food Parks.
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Licenses Required for Starting A Food Business In India:
Any business involved in any of the above-mentioned activities is a Food Business Operator and needs to obtain the following licenses to start a food business in India:
FSSAI License: FSSAI stands for Food Safety and Standards Authority of India. It is mandatory to obtain a license from the FSSAI to run a food business in India.
A food business that has an annual turnover of up to Rs. 12 lakhs, only a basic FSSAI registration is needed.
A food business that has an annual turnover of up to Rs. 20 crores and operates in only one state, a State FSSAI license is needed.
A food business that has an annual turnover of more than Rs. 20 crores and operates in multiple states, a Central FSSAI license is needed.
Registration under the Shops and Establishments Act
Health Trade License
Liquor License
NOC from the Chief Fire Officer
Eating House License
Environmental Clearance
Signage License
Here is the list of profitable business ideas and opportunities in food processing industry
1. Amla (Gooseberry) Powder
2. Apple Chips
3. Automatic Bread and Biscuits Plant
4. Baby Cereal Food
5. Bakery Products (Cake & Filled Croissants Puffs)
6. Banana, Onion, Orange and Tomato Powder
7. Besan Plant
8. Cheese Analogues
9. Chilli Oleoresin
10. Chocolate
11. Corn Flakes
12. Dal Mill (Pulse)
13. Dehydrated Onion
14. Dry Fruits Processing (For Snack, Almond, Pistachio and Cashew Nut)
15. Egg Powder
16. Frozen Layer Paratha
17. Fruit Juice in Aseptic Packaging
18. Instant Noodles
19. Iodised Salt
20. Macaroni, Spaghetti, Vermicelli and Noodles
21. Mango Pulp with Cold Storage
22. Namkeens (Dalmoth, Bhujia, Chana Chur and Khatta Meetha)
23. Peanut Butter
24. Piggery/Meat/Chicken Processing
25. Poha (Rice Flakes)
26. Potato Flakes
27. Potato Powder, Granules and Pellets
28. Puffed Rice (Muri)
29. Rice Flakes and Puffed Rice
30. Soyabean Products (Soya Milk, Soya Paneer & Soya Extract)
31. Spice Powder
32. Tomato Ketchup, Tomato Sauce and Tomato Soup
33. Tomato Puree and Fruit Concentrate with Hot Break Process
Frequently Asked Questions
What are the top business ideas for startups in the food processing industry?
Top business ideas include manufacturing Amla (Gooseberry) Powder, Apple Chips, Automatic Bread and Biscuits, and Baby Cereal Food, among other processed food products.
How does the food processing industry benefit the agriculture sector?
The food processing industry benefits agriculture by commercializing farming, increasing farmers' incomes, creating employment opportunities, and developing export markets for agricultural products.
What licenses are required to start a food processing business in India?
Required licenses include the FSSAI License, Registration under the Shops and Establishments Act, Health Trade License, Liquor License, NOC from the Chief Fire Officer, Eating House License, Environmental Clearance, and Signage License.
What government schemes support the food processing industry in India?
Government schemes include the Pradhan Mantri Kisan Sampada Yojana (PMKSY), Mega Food Parks Scheme, Scheme of Cold Chain, Value Addition and Preservation Infrastructure, Modernization of Abattoirs Scheme, and the Food Processing Fund.
What is the importance of food processing in the economy?
Food processing is crucial for improving the palatability, nutritional value, and shelf life of food products. It also aids in the preservation, removal of inedible portions, elimination of harmful substances, and conversion of food into desired forms.
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