Segment A
First-time entrepreneurs
People exploring a food manufacturing business who have an appropriate budget, a suitable facility and a business plan.
Potential business model
A small production unit making one or two shapes (for example macaroni and vermicelli) under its own brand or for local traders.
Target customers
- Local grocery and kirana stores
- Wholesalers and distributors
- Canteens and caterers
Possible sales channels
- Direct supply to shops
- Distributors
- Online marketplaces once the brand is established
Key start-up requirements
- Premises suitable for food production
- Power connection for the machine load
- Working capital for raw material, packaging and credit to buyers
- Basic quality-control routine
Important risks
- Building a brand and distribution takes time
- Price competition from established brands
- Working capital locked in stock and receivables
- Under-used capacity if sales are slow
Research before buying a machine
- FSSAI registration or licence requirements for your scale (check the current rules on the FoSCoS portal)
- Verified machinery quotations, including installation, power load and floor space
- Local prices of competing products and what retailers expect as margin
- Who will sell and deliver your product