Bakery Business: Bakery business in India has been growing rapidly since last decade. Bakery business is no longer limited to only bread, cakes and pastries, but according to the present times, many types of sweets, snacks and food items are also sold by the bakers of the bakery by making them on the demand of the customers.
The possibilities of bakery business are increasing rapidly in India, if you are looking for a business to earn better profits at low cost, then starting a bakery business can prove to be a great profitable option for your future. We providing information that you understand the importance of bakery business and how to adopt the bakery business plan properly.
Along with this, if you are interested in making food items then bakery business is one of the perfect ventures to hone your talent and make you the best. So if you have reached this article then it is certain that you are willing to convert your hidden talent into business and also want to make profits.
So let us tell you what factors you need to keep in mind to start a bakery business (bakery shop or modern bakery)-
Desired location for Bakery Business-
To start a bakery business, an aspiring entrepreneur requires at least 500 to 1500 sqft areas. Along with this, to start the Bakery Business, a famous and bustling market place and a desired place which is accessible to everyone are selected.
Generally, you have to choose such a place where your desired customers can easily come to your store and they do not face any problem in carrying the product.
To setup bakery business at the selected location, you will have to setup the selected location in 02 different parts. For example-
- Kitchen part- where you will manufacture bakery products.
- Showroom/Outlet part – where you will display and sell the manufactured product.
- For the good decoration of bakery products, 70% of the bakery products can be reserved for display and sale and 30% for the kitchen area by dividing them in the ratio of 70:30 in the selected place.
- In present times the display area is always seen more than the size of the kitchen because the more the quantity displayed, the more the customer is attracted and the chances of selling the product increase.
Registration of Bakery Business-
To start Bakery Business, it is mandatory for you to register your business with the registration prescribed by the government.
- GST No.
- Shop Registration
Necessary machinery and equipment in Bakery Business-
Since food items are manufactured on a large scale in a business like bakery, therefore, to start a successful bakery business, you need to buy much equipment related to the bakery.
In fact, with the help of these equipment, different bakery products are manufactured at a fast pace. Besides, many such products are also manufactured in the bakery, which face many problems in preparing them manually. The machines and equipment mainly used in a bakery are-
- Bakery Oven
- Bakery Dropping Machine
- Mixer Machine
- Packaging Machine
- Cooling Fridge/Deep Freezer
- Working table
- Gas/Induction stove
- Gas Cylinder
- Bakery related kitchen utensils and crafting equipment/tools etc.
All the above equipment and machines come in different sizes and prices depending on the size, type and functionality of the business. Before buying any salmon, you must inspect your bakery business plan carefully.
Raw Material in Bakery Business-
Generally, in most of the present day bakery stores, flour is used in large quantities, because most of the bakery products are made from flour only. But from the health point of view, the demand for products made from wheat flour has also started increasing.
To make bakery products under Bakery business plan, the following raw materials are required-
- Wheat Flour, Peanut Flour, Sweet Potato Flour,
- Sugar, Salt, Jiggery, Chocolate
- Edible oil, butter, ghee,
- lactic acid , yeast
- honey, sesame seeds and eggs
- Milk and milk powder,
- Glycerin, vitamins, water and starch etc.
Generally, all edible ingredients, which are used in making bakery items or products.
How big is the business of bakery business?
You know that our country India comes in the category of a developing country and is also moving towards development at a fast pace. Today people have become more conscious about their eating habits than before.
The standard of living in rural areas is also continuously changing towards modernity. Due to which the effect of bakery products can be seen directly and indirectly in their eating habits.
The bakery industry in India reached a value of US$ 7.22 billion in 2018, which is estimated to exceed US$ 12 billion by the end of 2024.
In such a situation, the possibilities of bakery business are continuously being created. According to a survey, the bakery business in India is growing at a growth rate of 10 to 13% per year. Which is a positive fact for the foundation of a successful business?
According to the website of Expert Market Research, the bakery products industry is expected to grow at a CAGR of 2.5% between 2021 and 2026.
India is the third largest consumer of bakery products after America and China. In such a situation, Bakery Business has proved to be a never-ending and highly profitable business, which can show the way to success in your coming future.
Which food items are manufactured under Bakery Business?
Almost every type of food items can be manufactured under Bakery business, but from the point of view of business, in addition to some selected products (bakery products list in hindi) in the bakery shop, the products are made according to customer demands are manufactured and sold.
- Different types of bakery biscuits/cookies
- Different types of bakery namkeens
- Bread, toast, rusks, pasties
- Different types of chocolates, cakes, pastries
- Different types of drinks, tea and Coffee
- Various juices
- Chips of various flavors
- Chewing gum, toffee/candy of various flavors
Bakery product packaging-
Packing of any product works to create and enhance its brand value. Packing is the most important task in the bakery business; most of the mind-calming colors are used in making commercial packing. This is because colors have their own unique attraction which is able to attract any consumer or customer towards itself.
Most of the bakery products are kept like show-pieces or decorations because of their special packaging, beautiful to look at and tasty to eat, so that they come in the eyes of the customer as soon as possible and the customer buys them as soon as they see them.
To make attractive and addictive packing, first of all contact your local printers, if printing and designing work is not done in your area, then you can take help of websites present on the internet to make packing.
- To make an attractive packing design, take the help of a knowledgeable graphics designer. Also, the components used in making the product must be mentioned on the packaging of the product.
- To increase the brand value, you must print the logo and route map on the packing. This step also provides free marketing of your bakery business.
Marketing of Bakery Business-
The bakery industry is indirectly a marketing based business, the better marketing in this business, the better the profit is as a result.
If you are starting a bakery business on a small scale, the best way to start a small scale is to assess the market around you first, how much and to what extent your product is being consumed. Create a comprehensive marketing strategy for it.
For small scale advertisement/publicity, you can get posters, banners, flakes and stickers etc pasted at various places in your local area, as well as publicize by putting pamphlets in the newspaper.
At the same time, if you have started a bakery business on a large scale, then there is a need to pay attention to large-scale advertisements. One can take the help of big advertisements like newspaper pages, magazine pages and TV advertisements and Digital Marketing etc.
Apart from this, if you are not able to give time to marketing yourself, then you can get your product marketed from a renowned marketing agency or organization.
Yes, it is true that it costs a lot to get marketing done by a marketing agency or organization, but the brand value of your product also starts increasing, people start knowing and recognizing your product well.
The big famous brands which are ruling the market today have marketed their products very well. So now the choice is yours as to how you want to promote or market your product.
Identify Your Competitor-
When you launch your product in the market, you will already find competitors for your product in the market. Maybe this may discourage you sometimes but there is nothing to worry about, you have to choose your competitor and make your product the best.
When you choose or identify your competitor, you get an objective and you start working with full concentration to fulfill your objective. This is the characteristic of a successful businessman that he is dedicated to his purpose and his goal.
According to psychology, it is completely proved that “When we start competing with someone, our mind starts working at a faster pace than normal, and always starts generating new ideas. Due to which our work capacity (productivity) increases.”
Pricing of bakery products (Price Stability)-
Price plays the most important role in selling any new product in the market. And this is a universal truth because today, especially after the Corona period, inflation has increased in almost many countries, which has affected our country India to some extent.
Therefore, considering the market, you should keep the price of your product a little lower than other products in the market but do not compromise on the quality of the product, due to its excellent quality, your product will gradually become famous in the market and due to which you You can expand your business from small to big level. You should start selling products at low prices from your local market only.
Loan for Bakery Business-
To promote small scale industries, the Government of India has launched Make in India, you can easily get loan through Prime Minister’s Employment Scheme (PMRY), Skill Development Scheme and Prime Minister’s Employment Generation Program (PMEGP) etc. For this, you will have to apply under government schemes through the registration number of your company or firm.
To take loan for small scale industries under government schemes, you can get the necessary information from your regional/local government bank branch.
Cost of Bakery Business (Bakery Business Investment)-
To start a bakery business on a large scale, you may have to invest at least Rs 8-10 lakh in the beginning because it is necessary to purchase business-related machines, without which it is difficult to operate a bakery business.
Along with this, apart from employee salary (including cook-chef and skilled labor etc.), raw materials and registration, initial level marketing is also necessary. You will have to spend an additional cost of about 02 to 04 lakh rupees on all these.
Note- If you are able to manufacture bakery products yourself then there is no need to hire a chef. But still you will definitely have to keep 01 to 02 skilled labors.
On the other hand, if you want to start the bakery business on a small scale with some selected products, then for this you will have to invest at least 50 thousand to 02 lakh rupees, in which some low capacity essential machines like fridge, freezer, Oven etc. will be required. Along with this, the manufacturing of bakery products will also be done by you yourself.
Note- The cost mentioned for small scale bakery business does not include the cost of the selected location. Also, change in actual situation is also possible.
How to start bakery business?
What problems can arise in bakery business in India (Problems in Bakery Business)?
Bakers in India are generally seen struggling with two main challenges. For example-
1. Government regulations
2. Demand-supply chain
Apart from this, some local factors may also be responsible.
Business Risks of Bakery Business-
There is only one specific risk in the bakery business industry and that is, bakery products get spoiled with the passage of time, if you start a small scale bakery business then make sure that there is a market for your product or items. You should prepare your goods according to how much is being consumed.
Profits in Bakery Business-
The word profit or gain is fundamentally a word which gives a new inspiration to everyone. There is no limit to profit in bakery business; all profit completely depends on product consumption and your marketing.
Generally, if you start with a cost of Rs. 2 lakh, you can earn Rs. 8 to 15 thousand per month and this profit keeps increasing gradually. If we talk about profit on a large scale, then Rs. 30,000 to Rs 70,000 or even more can be earned every month. (This potential amount has been told by a bakery businessman)
At the end-
Due to being considered as delicious food option, affordable, tasty and easily available, the demand and popularity of bakery products is increasing and this demand is likely to increase to a large extent in the near future.
Note – Before starting any business, it is mandatory to do market research and consumption assessment. By doing this, you will be able to face the risks and problems in the business and you will also be able to manufacture your products well according to the demand in the market.
Hope you must have got important information about bakery business, enterprise and business from this article “How to setup bakery business”, as well as… If anything is missing or want to ask something, please write in the comment box. Till then stay connected-