[2023] How to Start Homemade Spice Business In India

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All of us use spices in our food. The spices enrich our food and make it delicious. Without spices, no body can think of a tasty meal in India and elsewhere.

Spices not only improve the taste of food but also are a good source of vitamins B and C, iron, calcium, and other antioxidants. Spices are used for production of perfumes, medicines and cosmetic items.

Apart from all this, spices also play an important role in preserving the food and imparting pungency to the cooked meals.

India has been a spice bowl since ancient times and spices constituted an important component of its trade with the foreign countries. India enjoys a variety of climates, and it results in the spices diversity.

This spices diversity is what makes preparation of Masala a tea cup of only few and not of all. This is where you can jump in and turn Masala Making into a business venture.

Given below is a detailed guide about how you can start Homemade Spice Business In India.

Home made Spice Business Idea, Why?

If you are still asking why I should start homemade spice business in 2023, then following points are enough to motivate you.

  1. Not even a single household exists, where spices are not used for cooking meals.
  2. Spices have a variety of uses. They are used as enrichers, antioxidants, preservatives, thickening agents etc. So they are always high in demand.
  3. Spices industry is a billion dollar industry. It will accommodate you very easily.
  4. The demand for home made spices is on an increasing trend, as people have become health conscious.
  5. It is a very profitable business and can be started with very small investment.

Raw Materials for Homemade Spice Business

You will have to figure out the types of spices and spice related products that you will deal with. Once you do so, you will buy the raw materials accordingly.

Some of the common spices that are always in demand are cloves, chili, saffron, pepper, cardamom, turmeric, garlic, ginger, curry masala, biryani masala, meat masala, coriander etc.

The raw materials that you are required for spice business are:

  1. Unground spices.
  2. Small packets for packaging small consumables.
  3. Corrugated cartons for bulk packaging.

Machinery For Homemade Spices Making Business

In order to successfully run your masala making business, you will require some machines. These machines will help you a lot in maintaining the quality of your spices and also in cutting the costs of production.

The machines are:

Pebble Cleanerit helps in removing pebbles from the raw spices.
Spice grinderThis machine helps in grinding raw spices to turn them into powder.
DryerIt is used for drying the processed spices
Pouch sealing machineIt is used to seal small spice pouches.
Packaging machineThis helps in packaging the big cartons of spices.
Weighing machineIt is used to weigh the processed and packed spices.
RoasterIt is used to roast spices.

Machinery Cost

The cost of various machines used in spice business is around 4 lakh rupees to 5 lakh rupees.

If you are trying to start at a small scale, then a small “all in one” machine will be sufficient for you. It will cost you around 30000 Rupees in India.

Total Investment In Homemade Spice Business

The total investment in homemade spice business can be divided into two parts:

  1. Fixed capital cost: it involves investment for purchasing machines, for registrations and getting space. It will be around 50000 Rs for homemade spices business.
  2. Working capital cost: it involves investment in buying raw materials. It will be around 20000 Rs for home made spices business.

So, in total, homemade spices business can be started with an initial investment of Rs 70000.

If you don’t have this money with yourself, you can approach any bank for the loan. You will be able to repay the loan very easily, as this business is very profitable in nature.

Profit Margin in Homemade Spice Business

The profit margin in homemade spices business is around 40%.

Suppose you buy a particular raw material at Rs 100 per kg and then sell 10 kg of it in a day. You will get a profit of around 400 rupees in a day.

So, if you are good at selling, you can make a profit of around 50000 Rs very easily in a month.

Space Required

In order to execute spice making business idea, you will require a space of around 120 square feet at your home.

If you don’t have enough spare space at your home, you can take some space on rent.

Make sure that the space for your masala business is free from rodents, easily accessible and has basic amenities like electricity available through out the day.

Packaging of spices

While packaging your spices, you should take care of the following things:

  1. The packaging material should display your name.
  2. Pack your spices in all sizes to meet all kinds of needs.
  3. Make your packaging beautiful, air tight and durable.
  4. The packing should be as per the need. Use jars for packing spice pastes and polypropylene packets for packing bay leaves.

Marketing Of Your Homemade Masala Business

There are already very big players in the spices business, so it won’t be very easy for you to get yourself going. Spices are a food item, and this business runs on the basis of trust.

In order to carve out some space for your business, you will have to do marketing. You can do so by following the steps given below;

  1. Get a good and catchy brand name and logo.
  2. Run a targeted ad campaign on social media platforms.
  3. Give ads in local news papers and tv channels.
  4. Sponsor any local food influencer.
  5. Give some free goods along with your products in the initial days.
  6. Rope in the big wholesalers of your area.

Last, but not the least point is that you should maintain the quality of your spices. No amount of money can guarantee you success unless you don’t maintain the quality.

Registrations & Licenses Required

In order to start homemade masala business successfully, you will require some necessary licenses and registration. They are;

1, FSSAI license: you cannot start your spices business unless you get a business establishment license from Food Safety and Standards Authority of India (FSSAI).

2, GST registration: this is to make you tax compliant.

3, No Pollution Certificate: you will also require a clearance certificate from the pollution control board.

4, Trademark and brand name registration: this will ensure that your business is not copied.

5, Permission from your local municipal body.

Risks involved in home made spices business

There are a lot of risks involved in this business. If you don’t take care of them, this business will lead you to losses. The risks involved are;

  1. some spices have a very less shelf life. you should manufacture them in only such quantities that you can sell easily.
  2. there are high chances that you may see adulterated spices getting sold in your name.
  3. raw materials may be spurious in nature. So, get them from trusted suppliers only.
    If you manage to overcome these risks, you will reap good profits from this business.

So, this was all about how you can start homemade spices business. We are sure that you loved reading this article. If you did, share it with your friends.

Also Read: How to start a Swiggy franchise in India

FAQs On Homemade Masala Business

Is spices business profitable?

Yes, spices business is very profitable in nature. Since spices are always in high demand, and most raw materials are available at lower costs, therefore spices business reaps good profits.

What is the profit margin in spice business?

Spice business is very profitable in nature, and the margin of profits depends upon where you exist in the business chain. If you are a manufacturer, you can have a profit margin of up to 40%, and if you are a wholesaler, you can enjoy a profit margin of up to 20%. If you are a retailer, your profit margin will be up to 10%.

Which spices are always in high demand?

The spices that remain in high demand depend upon where you live. In general, spices like pepper, chili, dried onion, coriander, dried onion, saffron, cardamom, cloves and cinnamon always remain in high demand.

Hello, I am Mansoor Mir. I am a part time blogger and a full time teacher. I have an experience of more than 4 years in the Blogging field, and I love writing about Business, Cryptocurrencies, NFTs, Technology and Academics.

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