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How to Commence a Pickle Business in India?

calendar06 Sep, 2021
timeReading Time: 5 Minutes
How to Commence a Pickle Business in India

Food in itself is so diverse & versatile, catering to a range of palettes. Being such an essential part of existence & an evergreen venture, food is an ideal sector to consider plunging into while intending to commence your own business. Pickle is one of those food items that never get out of trend. In fact, it is one of the most consumed food items in India. Pickles are produced extensively across India and in a number of varieties. Apart from ever-rising local consumption, the Indian-made pickle is also witnessing surging demand in the international market. This could be the best time for start-ups to capitalize on this situation and build a profitable pickle business in India. This article will give you a legitimate blueprint for setting up a legally viable pickle business in India. 

The pickles are usually produced by preserving fruits & vegetables in brine or vinegar and other ingredients. The subtle composition of ingredients & the perfect timing for the processing is necessary for producing mouth-watering pickle. A small quantity of pickles allows people to get rid of the entire meal. This is the one big reason why pickle consumption is surging every passing day. 

Advantages of Starting a Pickle Business in India

Here are some possible advantages of starting a pickle business in India

Wide range of Varieties

Pickle in India is produced in countless variations, which include lemon pickle, mango pickle, carrot pickle, beans pickle, garlic pickles, and brinjal pickle. Each region in India has a distinctive pickle belonging to that area, prepared with locally grown ingredients, such as Kair (pepper) ka achar from Rajasthan, lingri ka achar from Himachal, Kolhapurithecha from Maharashtra, Bhoot Jolokia achar from Assam, so on and so forth. This extensive variety makes the pickle business a perfect venture for new entrepreneurs. 

Ever-rising Demand

Pickle is an inseparable part of Indian meals and is consumed on a daily basis thus creating a massive demand in the local market. 

Ease Of Preparation

Pickle preparation isn’t a tedious affair as it is prepared through the fermentation process after adding different ingredients. 

Fewer Equipment

the pickle preparation seeks minimal equipment, limited only to the vessels utilized to mix the ingredients & preserve the pickle & jars to store it in. The unit dealing with the mass production of pickle only utilize a few pieces of machinery such as cutting machine, pickling machine or pickle mixing. 

Minimal Space

The pickle business does not secure a large area to produce high-quality pickles in good volume. Startups with a tight budget can lease a small area to kick start a pickle production. 

Minimal Investment- One need not invest a large corpus of the fund to establish a legally viable pickle business in India. The prominent expenses in this business domain include purchasing of equipment, raw material, and marketing the business. The other expenditure includes the obtainment of business registration and licenses to operate a business. 

Ideal for aspiring women

Initiating a low-cost and profit-churning business is the zeal of every aspiring woman in India. Unfortunately, not all of them have the required financial backing to chase their dream. Pickle business is an ideal choice for such women who wish to set up a sustainable business without investing a fortune. 

Read our article:How to Overcome Unnecessary Delays in getting FSSAI license?

How to establish a legally viable Pickle Business in India? 

The pickle business adheres to a lot of potentials and is an ideal business opportunity for new businesses man and entrepreneurs. But, the most fundamental question that startups encounter is how to commence a pickle business, what are the legal prerequisites for starting the venture & which licenses are compulsory to kick start a business. The pickle business does not seek a rigorous pre-establishment preparation, however, the few prerequisites for commencing the pickle business include- 

Legal Formalities for Setting up Pickle Business 

Before you ask yourself how to start a pickle business, you need to understand the prerequisites. Permits, licenses, & registrations are often compulsory to commence a business. They help facilitate the business set up with a legal identity & a viable structure and stipulate guidelines with which to run the business. 

The licenses and registrations required to commence a full-fledged pickle business include- 

Company registration 

The first step to establish a legal entity in India is to incorporate it under the given bylaws. The Company Act, 2013, Partnership Act, 1932, LLP Act, 2008 are the widely recognized Acts that enable unregistered entities to avail a legal status under the following business structures: 

  • Private limited company 
  • Public Limited company 
  • LLP
  • OPC 
  • Partnership firm 

Factory License 

Entities working in the industrial sector are bound to obtain a factory license. The Chief Inspector of the Labour Commissioner Organisation is entrusted with the responsibility of the grant of the license. The grant of the factory license is done on a state-wise basis and application for the same can be made on the official portal of the labor department of the respective state. 

FSSAI Food license 

FSSAI or Food Safety and Standards Authority of India is the government-driven body that operates under the aegis of the Ministry of Health and Family Welfare[1], GOI. It is entitled to safeguarding & incentivizing public health via the regulation and probing of food items and governs the food quality of the products available to the masses.  

FSSAI registration is a mandate for every food business operator in India. Entities operating in the food sector are obligated to follow FSSAI’s norms that regulate the entire aspects of the supply chain of food, be it production, packaging, or marketing. Presently, no packaged foods can find their way to the store’s shelves without an FSSAI number and logo. The grant of the FSSAI license is done through an online application. The interested applicant can approach FSSAI’s online portal called FOSCOS and fill a relevant e-form. FSSAI usually considers the scope of business, annual turnover, and production capacity as the key criteria for the grant of food licenses in India. 

Eligibility criteria set out by the FSSAI against different licenses 
Basic FSSAI registration

Basic FSSAI registration can be secured by those FBOs who own a small business and generate an annual turnover of less than Rs 12 lakhs. 

State FSSAI License

To apply for a State FSSAI license the entity must have an annual turnover of Rs 12 lacs -20 crore. Other criteria include manufacturing facilities having a capacity of 2 Metric tons per day, dairy units having production capacity up to 5000 liters per day.

Central FSSAI license 

Central FSSAI license is a legal compulsion for all FBOs engaged in the manufacturing, processing, storage, distribution, or selling of food items. The annual turnover criteria for central FSSAI license have been capped at more than Rs 20 crores. 

The FSSAI registration underpins the extensive guidelines for manufacturing & packaging of food items following a hygienic procedure, therefore ensuring that the business delivers quality products. An FSSAI registration, apart from adhering to quality & safety standards, helps businesses instill trust among the masses and strengthen their position. FSSAI registration is a boon for pickle business owners who have issues garnering a healthy customer base in the target market. 

Conclusion 

Pickle business is easy to establish & run owing to the relaxed legal prerequisites and low cost. The overall infrastructure needed to build a full-fledged Pickle business in India is incredibly low as compared to other food businesses. This implies that there will be various identical businesses in the market & to succeed, it is vital to examine the competition inside out. Similarly, businesses can tweak ways to beat the competition by considering two key criteria- pricing and quality. The pickle business owners must ensure the standardization of quality norms across the supply chain of pickles, right from production and marketing.  

Read our article:FSSAI Food License: Everything You Need to Know

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