How To Start Spice (Masala) Business In India
A spice may be available in several different forms, whole dried, or pre-grounded dried. Generally spices are dried. Spices may be grounded into a powder for convenience. A whole dried spice has the longest shelf life, so it can be purchased and stored in larger amounts.
India contributes to 75% of global spice production. The Spice trade developed throughout the Indian subcontinent by at earliest 2000 BCE with cinnamon and black pepper.
As we all knows that we Indian loves to eat specially the spicy and chatpatta food and in this spices or masala play a huge role in our daily life and in our festivities and festivals too.
India is recognized as the ‘ House Of Spices’ because of the aroma, texture, flavor and medicinal benefits of its spices. India is a major Producer and exporter of spices, thus starting a spices( masala ) business in India is a very profitable business option.
Indian spice market is growing with more than Rs. 45 Thousand Crores as per year. So if you are interested to start this business, it will be a good option for you. Spice or Masala Business is a good type of business that ensures the owner with good profits with low investment. And one more important thing is, you can also start this business from your home.
What Is The Scope Of Spice Business In India
If we talk about the scope of spices business in India, you can check some statistics about this. The Indian Spice sector has registered the rise by 26 Percent in terms of dollar value. The total area under spices in India is 2.3 million hectares and the production of spices in India Is around 27 lakh tones annually, valued approximately at Rs. 13000 crore.
So, the Scope is quite wide of Spices business in India. All types of spice powder is a must in every Indian cuisines. In Indian food you will find one or more spices as an important ingredient in every recipe. These spices help bring flavor, color, aroma and good taste to the food. Common Spices used in Indian cuisine are Turmeric powder, Red chili powder, Coriander powder, Cumin powder, Garam masala etc… and if talk about the whole spices used in Indian food are Bay leaf, Cardamom, Black and white pepper, Cumin, Cinnamon and many more spices.
So the scope is quite wide and it is definitely a successful and profitable business idea for those who are thinking to start this business.
Registration Process and Licenses Requirement To Start Spices Business In India
To start the Spice Business In India, you must first obtain Company Incorporation or establish a company according to the method with a good appealing name and logo. Regardless of the fact your business is small-scale or large scale, you need to get these registration and licenses, which are given below:
- Business Registration – Firm registration should be done according to the size of the business, whether it is a Pvt. Ltd., One- Person Corporation or a Partnership Corporation.
- Factory License – Factory License is a legal mandate for entitles involved with the processing and manufacturing of commodities in India. However, it is required by those establishments whose total man power or work force is greater than 10. Spice business that leverages different equipment and machinery to aid production is mandate to get this license. Factory License is issued under the ambit of Factory Act, 1948 and its issuance is done by labor department of the respective state.
- FSSAI License – FSSAI License is mandatory for food business operator in India, including the spice business. Spice manufacturers are too required to obtain this license before initiating their business operation.
3 Types of FSSAI License
Basic FSSAI License- This license is mandatory for small business owners who are earning less than Rs. 12 lakh per year.
State FSSAI License- This is mandatory for those business, who has Rs. 12 lakh- Rs. 20 crores turnover every year.
Central FSSAI License- This license encompasses FBOs with a larger footprint and which are reaping more than 20 crores of annual turnover.
- GST Registration – For GST registration you need some documents, which are : PAN Card, ADHAR Card, Bank Details, Address proof, Partnership Deed (if you have partnership firm), MOA/AOA/COI ( In case for Private Ltd. Company). Before you start the sales and purchase in your company, get the GST certificate first. GST Certificate will help you in tax benefits for your business.
- Udyog Aadhaar / MSME Registration – Udyog Aadhaar is a unique 12-digit government identification number provided by the Ministry of MSME for small and medium businesses. And also, by getting this masala business (spices business), you can get all the benefits and facilities provided by the government.
- AGMARK – The AGMARK Certification was introduced for the Grading and Marketing og Agricultural produce by DMI ( Directorate of Marketing and Inspection). So It is must for agricultural products to get AGMARK and spices are agricultural product, that’s why for spices business you need to get AGMARK. AGMARK validates the quality and standards of your products.
- ISO Certification – ISO is a non-governmental organization that sets standards in terms of quality, safety and potency of products and services provided by businesses. The time duration of the ISO certification process varies from organization to organization. The time for getting ISO certification also varies, depending on the authorities.
Process To Start Spice(Masala) Business
- Investment – Rs. 1 lakh to 5 lakh ( Approximately)
- Space Required – 500 Sq. ft.(minimum)
- Man Power or Human Resource – 10 -12 employees
- Profit Margin For This Business – 30 – 40 percent Approximately
- Sales For A Day – 100- 150 kg ( expected)
- Earning – 50,000 – Rs. 1,50,000 every month
Raw Material For Masala Business
The essential and basic material for incorporating your spice industry are raw material, ungrounded spice. You can start by the following spices :
- Fennel seeds
- Fenugreek leaves ( methi leaves)
- Permitted food colors and preservatives
- permitted or Food – grade Packing materials
Required Machines For Spice Business
To start the Spice Business you would need to have the proper machines and other important equipment to be able to process the raw spices and transform them into powdered form. List of some of the equipment you would need for this business :
- A Grinding Machine
- A Weighing scale
- A Packaging Machine
- A Compressor
- A Roaster
Where You Can Sell Your Products
For selling spices you can choose some good options i.e. –
- Online portal
- Export of spices
- Wholesale business of spices
- Retail business
So now you have the whole process and details , how you start the Spice Business In India. As we all know the fact, that the spice itself a significant industry in India. Our country is the major producer of many spices including ginger, chilly, cumin and turmeric. And by this business our nation gains a good exportation income. If our country is gaining a good revenue by the spice business then you can also run a profitable spice Business at your space.
A small scale spice business is very simple for a beginning. And as per your investment amount you can plan the size of your Spice business. So with this business you can ensure a good income and revenue.
So if you are interested and want to start The Spice Business, now you have all the related details and process in this article.
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