All You Need to Know About Starting a Successful Namkeen Factory in India

Reading Time: 3 minutes

share Now

The namkeen food business is growing considerably. The huge demand for snacks shows a lot of scope in this line of business. 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 has led to extensive growth in this sector.

However, this business is quite challenging as you could experience ups and downs due to the changing consumer tastes and a number of branded and unbranded products in the market today. There are around 1,000 different kinds of snack items that are sold in India with the bigger names trying to make a beeline for a good share in the market. But, proper evaluation of market trends could get you the profits you’re looking for.

Cause to Choose this Business

At The present time, there are various open doors that are available to an entrepreneur. you have various reasons to choose this snack business. Here are a few to make a business like this your own.

The food business is booming and growing at a faster rate.

  • Profit margins are high.
  • Demand increases during the festival season.
  • There are many national and international giants that are searching for people to become part of this business.
  • More and more food business opportunities are open to the ones who wish to be in this kind of business and anyone cashing on such a prospect always has a higher chance on being on the winning side.

Would it be a good idea for you to Buy or Start Your Own?

Basically, It is the purchased snacks food retail that shows improvement over the new businesses. Assuming you’re a business person who is focused on an exceptionally one-of-a-kind worth arrangement then you can go for the startup approach, however, an intensive overview of the equivalent should be done before you start off in order to know the intricate details of the business.

Here is a  portion of the things you would have to know before you start your production line.

Namkeen Commercial Production  

Namkeen products can be produced on a large scale as well as a small scale depending on your business format. There are a number of branded and fabricated equipment that is used in the production of nankeen snacks. However, in order to carry out uniformity in products, commercial batch-type machinery is essential.

A-List of Namkeen Equipment You Would Require

The namkeen you produce dictates the type of equipment you need. Some of the general ones that you would need are frying equipment, mixers, grinders, dough, and packaging equipment. If you’re planning a business on a larger scale, spray applicators for seasoning and batter applicators would be required. These applicators are used for accuracy and proper measurements, including consistency in the taste of the product.

Here is a list of the equipment needed:

  • Dough Kneader
  • Mixer
  • Food Processing Equipment
  • Batch fryer
  • Namkeen Extruder
  • Seasoning and Coating Applicators
  • Spray Machines
  • Product Handling
  • Packaging
  • Weighing
  • Inspection Equipment

Location 

An ideal location to start your factory would be close to the source of the raw material. The factory should have a large space for storage of items, equipment, and also proper and easy access to the road.

You could also set up the factory in close proximity to a marketplace so that your products could reach the consumers faster and easily without too much hassle.

Setup Cost 

The business startup cost for a namkeen business 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 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 of 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. 

Packaging 

Make your product stand out through its packaging, branding, and giving it an attractive name. Your product should be appealing in order to draw the attention of the consumers. Catchy taglines could also be another way to make your packaging attractive.

Marketing the Snack 

Sell your namkeen products to grocery stores, departmental stores, and restaurants. Hire sales representatives to apply direct marketing techniques. Advertise your brand in social media, newspapers, local publications, posters, billboards and print handbills.

Evaluating Competition

Evaluate the competition in your locality. You could use the internet to check out similar businesses in the area. Find out how other businesses have set themselves up. Learn, study, and gain adequate knowledge in order to get an idea of how things work so that you do not repeat mistakes that other businesses have already made.