NAMKEEN MANUFACTURING

Namkeen is also used as a generic term to describe savory snack foods. Both black and regular white salt are used in Indian cooking, which gives it the salty flavor many people like. Other namkeen snacks common in Indian cuisine include khaara, farsan, chivda, sav, chips and bhujiya. Namkeen of Indore and Ratlam are two snacks that are very well known for their tastes.

Dalmoth, Chanachur & Bhujia are the important names of salted snacks. These are very tasty and flavoring. These are used during tea and drink hours. Dalmoth is a traditional namkeen, dry snack, it is one of popular snack in North India made from fried lentils, nuts, spices and sev. Dal moth is a mixture of fried lentils, nuts, Indian spices with some tangy and spicy flavors. In Gujarat, during the Diwali festival, people made it at home and celebrate the festival of joy. www.entrepreneurindia.co Bhujia is made all over India and eaten as a snack in almost all parts of the country. Bikaneri bhujia, often simply called bhujia, is a popular crispy snack prepared by using moth beans and besan (gram flour) and spices, originating from, Bikaner, a town in the western state of Rajasthan in India. Light yellow in colour it is famously known to have been first prepared in Bikaner, and over the years has not just become a characteristic product of Bikaner, but also a generic name. Each variety prepared by large scale manufacturers also go through a rigorous testing procedure. www.entrepreneurindia.co Chana Chur is essentially a mixture of two or more components, it is a similar product to Bombay Mix. Khatta Meetha is a savoury sweet and tangy snack made of fried or shallow fried puffed or flattened rice (Murmura, Poha), sev and Gathia. It is the best option to snack on between meals or during your afternoon or evening tea.

Namkeen business is a very business to crack in the whole of the food domain business, but also do remember if it is easy to crack means very lean margins. This business is the most running and very easy to find potential customers.

Low margins and keeping up the quality is a tough thing to do. I am also planning to get into and have couple of my friends who own sweet shops and supermarkets. So I am just looking at very small area to start off with. Firstly I am planning to start with 3-4 products and distribute free samples in the sweet shops and supermarkets on weekends. my family members are ready to help me out in their free time in the afternoon to make and pack them.

 After this if it takes off then I am planning to add a few more. Do remember I am pricing it in a such a way that I have a 20% replacement stock every week where 20% will go totally waste. On the whole namkeen business is a fast moving, quality oriented, taste oriented business but it will pave your way to get into big margins businesses in the food domain.

In this article I have dicussed many points which should be considered while setting up a namkeen factory.

BUSINESS MARKET SIZE

As foods category is growing in India, several food companies are capturing salty snacks market. Around 1,000 snack items are sold in India spanning various tastes, forms, textures, aromas, bases, sizes, shapes and fillings. Some 300 types of savories are sold in this country and overall snack product market (inclusive of sweetmeats) is estimated at Rs.25, 000 crore. The branded segment is increasing at the rate of 25 per cent/annum whereas the entire market is growing at the rate of 7 per cent. Namkeen is a product which is essentially known for three important things a) Taste b) Quality c) Variation. www.entrepreneurindia.co The Indian Food Industry is one of the fastest growing segments in Indian economy. Within the food sector itself, the RTE including Namkeen & Mithia holds the biggest share.

The market for such snacks has undergone significant change over the past two decades with the entry of various multi-national and regional players along with their distinctive brands and flavors. The Indian snacks market has witnessed a steady growth with the shift in consumption pattern.

Namkeen is the dominant segment, followed by the Extruded Snacks. The market is also segmented into organized and unorganized sector of which unorganized is the dominant market. The India Snacks Market will be more than INR 1 Billion by the end of 2024. www.entrepreneurindia.co The future of India Snacks Market can be judged from the fact that this industry is expected to grow with double digit CAGR for the time frame of 2018 to 2024. India snacks market is dived between organized players and unorganized market. At present Unorganized market is dominating the India snacks market. But this scenario is expected to change during the forecast period of 2018-2024.

CONSUMPTION

Namkeen is well known to each and every part of our geography. South and North East part of India has good demand of Namkeen because of mix culture. Due to employment and business opportunities, north and west side people spread over the whole country, settled along with food habits and culture. Now people are more inclined towards Namkeen and potato chips. Even North East region is also having different requirement of Indian snacks, namkeens and pasta.” www.entrepreneurindia.co Namkeen consumption is high in Western and Northern states of India and even Southern states have picked up on consumption rate. Also the trend has shifted to using modern technologies from traditional methods. Products like bhujia, chana-chur, and dal month are well known in India and overseas as well. Disposable income mixed with a fast-paced lifestyle have led to an extensive growth in this sector. From tea time to fulfilling the small hunger, snacks and namkeens are the best choices and in India, it has the most demand.

Snacking is considered as the routine habit in India between meals or in place of a meal. Snack food generally comprises ready-to-eat mixes, chips, namkeen and other light processed foods.

SET UP COST

The business startup cost for a namkeen business like Haldiram would require a minimum of Rs. 10 lakhs. This would include the cost of land, building, machinery, and other miscellaneous assets and expenses. Though you can apply for funds, a minimum of at least 17.5% is to be paid by you. Setting up a factory with a small space in an industrial area would cost you about Rs. 60,000 to Rs. 70,000 in terms of rent.

These are just estimates which could differ according to your business plan, machinery, and other costs.

REGISTRATION

You would have to register your business in Business.Gov.In (//archive.india.gov.in/business/starting_business/procedures.php) as a limited liability company or a sole proprietorship company. Your company needs to conform to health and safety rules. A food handler’s card would be needed, which confirms that you have an understanding about food safety, health, and sanitation practices.Your product should get a food and drug number and pass the standard organization certification as well. Another good option would be to have a licensed kitchen, since this would imply that you meet a commercial grade kitchen standard.

LICENSE

The Food Standards and Safety Authority of India (FSSAI) is the supreme authority which is responsible for regulating and supervising the food safety. So it is mandatory to take FSSAI Basic Registration as per the law. Here we discuss about basic registration, Small businesses or startups having annual turnover below Rs.12 lakhs can apply for basic FSSAI Food safety registration. As operations scale up and turnover reaches Rs. 12 lakh bar, the basic registration will need to be upgraded to state license. As the name said it is very basic registration so it won’t be enough for large business firm.

FSSAI Food safety Registration is mandatory for anyone who intends to do food business. This not only involves preparing food but everyone who handles food at various stages before it ultimately reaches the customer like raw materials, Manufacturing, processing, Mess, Canteen packing and the distribution as well as the agencies who have authority to sell them.

SUCCESSFUL EXAMPLE(GOPAL NAMKEEN)

Bipinbhai Hadvani, a resident of Bhadra village in Jakhandaurana taluka of the original, ran a garment shop in the village along with his father and his brothers in 1984. The customer has to wait for the customer to wait. The idea of developing the business came in a packet of Chavanu in Rupees 1 and started selling in 52 villages and selling 1200 packets per day. Then in 1990, Rajkot started a business with ‘Ganesh’ brand in partnership with an investor of Rs. 8500 with such a cousin and started selling Soy, Ganthia, Daldmuth, Chana dal and peas packets.

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