It is the dream of many people to start a bakery business in India. Many chefs and ladies love to bake. Moreover, it is their hobby but they can’t find a way to turn it into a business. Taking a leap of faith and efforts to start a bakery business in India can be profitable in the long run.
As per the studies, the bakery business in India will grow tremendously and an initial investment at this stage is a good time. Therefore, In this article, we will discuss all the things that you must know to start a bakery business in India.
What is a Bakery Business?
A bakery business is simply a business where you eat baked food items. For example, a bakery may generally contain food items such as cake, cupcakes, pastries, doughnuts, frozen desserts, etc.
Bakery Businesses can and work on both retail and wholesale levels. Furthermore, one can also start a franchise business of bakeries. However, the bakery business is also special for entrepreneurs having less capital.
You can even start a Bakery Business in India at home through modern social media or other means of marketing.
Is the bakery business profitable in India?
Yes, Bakery Business in India is profitable. The reason is there is a huge market and demand for bakery products. As per the studies, The typical monthly earnings from a small-scale baking business might be between 60,000 and 1.2 lakhs. The profit earned is determined by the number of baked products you sell; if you sell a variety of products, you may make more than 2 lakhs every month.
Similarly, The habits and lifestyles of people are changing. Most of us are shifting to healthy food alternatives. Nowadays, people are shifting towards eating healthy bakery items. Consumers are looking for hygienic and healthy bakery items. Therefore, they are also ready to pay the premium price for quality products and services.
However, the profit of the bakery business in India is dependent on entrepreneurial skills and a number of other factors.
Stepwise Guide on How to start a bakery business in India
To start a bakery business in India, you must know some essential things in mind. These important points are:
Registrations required to start a bakery business
To start a bakery business in India, you need to apply for some mandatory and beneficial licenses and registrations. If you don’t get these, the authorities can also take legal action against you.
Furthermore, business competitors can take advantages that may harm your business in the long run. The basic licenses and registrations for a bakery business in India are as follows.
- Company Incorporation – The first step to start any business including a bakery business in India is Company Incorporation. It allows you to get your business registration with the legal authorities. As per your eligibility and requirement, you can have:
- GST Registration – GST(Goods and Service Tax) is an indirect taxation system in India. Every business has an annual turnover of more than Rs. 20 Lakhs per annum or Rs. 10 Lakhs per annum in special states must have GST Registration and do GST Return Filing. Furthermore, businesses that want to work on eCommerce platforms or want to sell their product through their online eCommerce platform have to mandatorily obtain GST Registration in India.
- FSSAI Registration– FSSAI stands for (Food Safety and Standards Authority of India). It is the department that oversees the hygiene and quality of all the food items in India. Every food business operator(FBO) no matter how much the turnover needs to register with FSSAI. So, to start a bakery business in India, you must get FSSAI Registration on time.
- Eating House License– This one is for the food industry and must be acquired from the Commissioner of Police, the City or State Police, or both.
- Health License– A payment is paid to get a Health License from the Municipal Health Inspector. It’s confirmation that your company follows all of the Health Department’s health-related regulations.
- Fire License– Before you can receive a fire license, you must install fire extinguishers throughout the structure and follow safety guidelines. The Fire Department will issue you a Fire NOC after everything is in place. There is a charge for this as well.
- Trademark Registration– Bakery Business is highly competitive. If you don’t save your brand image, the chances are your business competitors might misuse your branding. Thus, to protect your special bakery products or unique business branding, you must get trademark Registration.
- MSME Registration – MSME Registration is the best government scheme for micro, small and medium bakeries. Under MSME Registration or Udyam Registration, you can avail of collateral-free loans instantaneously.
Choose a Location best suitable to start a bakery business in India
Choosing a decent site is among the first stages in learning how to establish a bakery company in India. A reputable market or high-end retail areas with substantial visitor numbers are good locations for a bakery.
The bakery company works best in front-area establishments on the ground level that is easily accessible and available.
It’s best to split a 500-square-foot business into two levels, with a working kitchen solely on a single level and a display and service space on the other. However, this is dependent on the amount of room available and your own preference.
Decide the Type of Bakery Business
- Storefront Bakeries: In all Indian cities, this is the most frequent type of bakery. It requires a little more space than a standard grocery shop where consumers may pick up baked items. These may be started by anybody with a small team and basic baking skills.
- Home Bakeries: For those searching for a low-cost way to establish a bakery, this is the way to go. These bakeries need relatively little capital, and the few things available for purchase are prepared at home. With enough revenues over time, the menu may be increased, and the bakery can be relocated from the house to a store.
- Specialty Bakeries: Specialty bakeries are often owned by people who have prior baking expertise and specialize in a certain product area. They don’t have a large selection of items, but they do take prior orders for special parties or regular customers. Their items are of greater texture and flavor, although they are significantly more expensive.
- Online Bakeries: Taking advantage of technology and catering services, many people are starting online bakeries where customers make orders using applications and the bakeries deliver straight to their homes. These are cost-effective since you won’t have to pay lots of money to acquire real estate or hire a lot of people. You can also get your own website from our Website Development team.
If you require any kind of guidance related to How to Start a Bakery Business in India, please feel free to contact our business advisors at 8881-069-069.
Download E-Startup Mobile App and Never miss the latest updates reciting to your business.