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Margesh Rai
| Updated: 12 Jul, 2020 | Category: FSSAI License

Bakery Business in India is the Next Big Thing

Bakery Business in India
Reading Time: 8 minutes

The profit potential associated with a bakery business in India has motivated the new entrepreneurs to commence their bakery business. This business is a promising one as there will never be a lack of demand for muffins, pastries, cupcakes, cakes, etc. anytime in the future. Also, the trend is on the rise due to the increasing purchasing power of Indian consumers.

In recent years, the startup wave has encompassed a majority of young people and converted them into entrepreneurs. Nowadays, food enthusiasts are fueling their craving for food and commence any form of the food business. With the growth of many small-sized and mid-sized bakery businesses, young and willing entrepreneurs are taking an interest in starting their bakery business in India.

Are you a home-baker waiting for the opportunity to showcase your superlative baking qualities? Are you a pastry chef looking for establishing your own venture? Or, a baking aficionado, yearning to try his luck in the field of the bakery?

Now, it’s the perfect time to encash on the endless scope of bakery business in India. The craze for sweetened macaroons, chocolate ganache, Indo-Western fusion desserts, pastries, candies, muffins, and brownies have captivated the attention of home bakers, pastry chefs, and baking enthusiasts.

Commencing a bakery shop business holds a lot of advantages. That’s why modern food business enthusiasts are analyzing the business structure of bakery and planning to enter into this segment due to its never-ending demand, especially among youngsters. Before starting a bakery business in India, you need to take care of various mandatory points along with legal requisites that would assist you in successfully initiating your bakery business without any involvement of legal constraints in the future course of time. I hope this write-up is of much help to young entrepreneurs.

Forms of Bakery business in India

Forms of Bakery business in India

An individual can start a bakery business in India in three forms-

Home-Based Bakery

A home-based bakery is a perfect choice for those individuals who want to go for a hit and try method before involving themselves in a fully developed bakery business. Initially, they can proceed with a small menu and then eventually switch from home-based to a shop.

Few popular home bakers are-

  • Chocotarian, Kolkata
  • Mad Batter, Delhi
  • Sugar Brush, Chennai

Bakery Cafe

There is a significant rise of bakery-cafes in India, but only a few of them have passed the test of time by continuously delivering quality bakery stuffs. A bakery-cafe benefits food lovers by providing a community space, sitting arrangements, and an ambience where people enjoy taking selfies and updating them on social media. It’s a highly investing venture as you have to add captivating charm to your cafe and set the cafe in an easily accessible area. Bakery-cafes can boost sales as it can offer a wide range of bakery items and drinks.

Few popular bakery-cafes are-

  • LandourBakehouse, Landour
  • Le15 Cafe, Mumbai
  • Ahdoo’s, Srinagar

Cloud Kitchen/Delivery Kitchen

The stratospheric growth of cloud kitchen business in India is due to its less investment of capital, minimum space requirements along with maximum returns. All you need to start this type of bakery business is a kitchen for baking activities, and hardly there will be any interaction with clients.

 Few popular cloud kitchen businesses are-

  • Love Is Cakes, Gurgaon
  • Feel Mighty, New Delhi
  • Bakingo, Noida

Bakery Business Plan

Before drafting a bakery business plan, you should properly analyze the market conditions. In your market analysis part, you need to cover the strategies that your competitors are adopting, the challenges they’re encountering in their day-to-day operations and other more significant challenges, their chief offerings, information about your potential customers, how much your potential customers are capable of paying, their buying habits and so on.

Your business plan should incorporate the manufacturing of bakery stuff. A perfect bakery business plan should define the overview of the business. Most importantly, it should include a well-researched marketing plan that would aid support to you in targeting the bakery product lovers.

 An ideal business plan looks incomplete without mention of the financial plan in it as financial plans help in deciding the budget at an initial point along with the cost-benefit interpretation of the business. Bakery business plan will assist you in streamlining the operations and planning the future course of action for your bakery business.

Opt for the Perfect Location before Starting a Bakery Business in India

Deciding an ideal location for any form of business is extremely vital as when it comes to making or breaking a business, location plays the central character. A perfect location can either be a reputed market where chances of gatherings are likely high compared to a not-so-well-known market or premium shopping places. Setting up a bakery shop or bakery business at an easily accessible location along with winsome surroundings near the bakery-cafe would attract a considerable population of bakery food cravers.

The basic idea behind deciding the bakery location is to comprehend the footfall related to the bakery business. In addition to determining the location, you should ensure that the place has a proper sanitation facility and a regular supply of water without any interruption. Before giving your nod to a spot, you should conduct a demographic survey, if possible, to get familiar with the likely consumer base as well as the eating habits of those consumers who may visit your bakery store or cafe in the upcoming days.

Haven’t you seen people moving to those cafes or restaurants first that are on the front location? Here, the visibility factor would be a plus point for your business. Since the successful outcomes of a bakery cafe depend on the site where the business exists, you must make wise decisions at the time of selecting the location.

Essential Permits and Licenses for Starting a Bakery Business in India

All types of businesses demand food business owners to acquire several licenses and permissions for smooth operations of their respective businesses without any fear of legal complexities[1] that may arise in the future.

The permits and licenses that you need to acquire for starting a bakery business in India are-

Bakery Business in India

GST Registration

Don’t you think that getting GST registration on a priority basis would be better by looking at the strict government policies and norms? If yes, then go for the GST registration concerning your bakery business.  After GST advent, all indirect taxes got eliminated for enterprises. Bakery business owners must get familiar with the implications of GST and its applicability to food businesses. Apply for GST registration and get it sanctioned easily with the help of GST professionals.

Eating House License

You can apply for Eating House License under the Headquarters of the City or State Police and the Commissioner of Police. The Licensing Police Commissioner of the concerned city is liable to grant the Eating House License so that you can establish your outlet in the city. To operate food businesses like restaurants, hotels, bakery-cafes, and other eatable places, Eating House License is the requisite along with other permits.

Health Trade License 

Health Trade License ensures that your bakery business abides by all the health-related guidelines of the Health Department. Besides this, Health Trade License ensures that nobody would get affected by the practices adopted by the bakery business. The process of acquiring this license is different in all the states. You can apply on the Website of State Municipal Corporation. The Senior Inspector active in the Licensing Department of a Municipal Corporation is the approving authority for issuance of Health Trade License. This license got issued within 60 days from the submission date of the application form.

Fire License

The local Fire Department would charge a fee after the fire extinguisher cylinders get installed based on the bakery’s scale of operations. Acquiring Fire Department NOC is crucial.

Trademark Registration and Copyrights for Bakery Business in India

  • Trademark of a name, symbol, or logo is crucial for the marketing as well as effective branding of the bakery products.
  • Trademark registration disallows others from utilizing the same symbol or logo as their own. It helps the bakeries in setting their unique identity.
  • Also, there is an option of Copyright recipes that one can pick. It helps in preserving the punch and the impact of special products on consumers’ minds despite the chef getting replaced by a new chef. Controller General of Patents, Designs, and Trademarks is responsible for governing the application process for Trademark registration.
  • One can use the Trademark(TM) after giving the application, and after getting registered, one gets permission to use symbol R. Copyright Office supervises the application of Copyright registration.

FSSAI License for Bakery Business in India

All the manufacturers, bakery owners, and traders need to acquire FSSAI License for conducting their respective businesses in India. FSSAI License, known as Food License, is a unique 14-digit registration number. In the case of the bakery business, FSSAI License for food products ensures that all the bakery products are conforming to the food safety and standards & guidelines prescribed by the apex food regulatory body known as FSSAI.

FSSAI is the responsible supervisory authority that examines the quality of food products. After the process of inspection comes to an end, the Food Safety Commissioner will take the lead and provide a 14-digit FSSAI number after getting satisfied with the quality of bakery products.

Types of FSSAI Licenses and Registration

  1. FSSAI Basic Registration-Businesses with an annual turnover of up to 12 lakhs
  2. FSSAI State License Businesses with an annual Turnover crossing 12 lakhs and stay within the 20 crore limit
  3.  FSSAI Central License Businesses with an annual turnover of more than 20 crore

Read our article:Who needs FSSAI Registration? Is FSSAI Registration Mandatory?

Manpower Requirement in Bakery Business

Keep in mind that the skilled human resources can escalate the growth of any business. The requirement of an expert workforce is due to the fact that in the case of bakery products, not only the taste of food matters, but the presentation is also of utmost concern. If you want to deliver top-notch bakery food items to your consumers for retaining them in the long run, you must hire a team of experienced staff members. They must always be eager to learn new methods for preparing bakery products.

Customers always prefer a variety in terms of food items. Serving the same thing again and again without including any new additions into the menu may lead to the loss of customers. The trained workforce would enhance your bakery business in all the way.

Usually, the high-end bakery businesses maintain a great team, which includes a Head Chef, Commi level Chef, Chef De Parties along with Cashier, Service Boys, and Helpers.  In the end, we would wish to ensure that you must emphasize on hiring the best workforce in the town.

Equipment Required for Commencing a Bakery Business in India

The types of equipment that you must have if you wish to commence your bakery business in India are-

  • Cutlery and Utensils
  • Display cases
  • Packaging items like boxes, bags, and more
  • Ovens and Whiskers
  • Mixers and other equipment of the same group
  • Baking dishes, pans, and tins
  • Refrigerators and Cooling racks

Business without Marketing, No Way!

The success of your business lies on the pillars of your marketing activities, and if here, you will apply the right strategies, there will be no stopping for your business. Your marketing plan should revolve around seeking customers’ attention. You can initiate with launching your bakery business on a grand scale. You can utilize your social media profile in driving some of the giveaways. In the era of digital promotions, who’s better than influencers?

Invite influencers in your party and upload the pictures on social media platforms. In the case of a cloud kitchen, you can go live on Facebook and Instagram and interact with your customers and build a new set of customers as well. If marketing and newly trending digital marketing tactics go right, your bakery business will shine amid the existing competition.

Briefing Up

If you are projecting to commence your bakery business in India, and have gone through this write-up, you’ve initiated your journey of starting the bakery business. This write-up encompasses the licenses and permits along with other essentials for starting a bakery business in India. If you are looking to acquire FSSAI License and other permits, our Corpbiz experts have simplified solutions to match pace with your need.

Read our article:Cupcake Business in India: Complete Overview

Margesh Rai

Being a poetry lover, and an avid reader, Margesh is fanatical about legal content writing. After completing graduation in B.Com(H), he decided to follow his passion. Writing impeccable in-depth content about legal and finance-related topics is his biggest forte.

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