The rise of the frozen food business in India has made it an appealing venture. From frozen vegetables to seafood, alluring fruits and meat as well as poultry, this segment have an innumerable variety of food items in store to offer. Due to the maintenance of high quality as well as taste by the frozen food business owners, frozen food items have reserved their seats in the hearts of food cravers.
As frozen food products have become the apple of customer’s eyes, many young entrepreneurs of India are devising strategies to start their frozen food ventures and make moolahs from this segment. The scope of the frozen food business in India has begun widening in recent years, and the pathway looks more promising ahead. By looking at the continuous development and germination of the entire country on all the grounds, especially in terms of change in the way of living, we can say that India is all set to become a well-developed urban and join the grand league.
Due to the westernization influence, shooting up of consumers’ disposable income, and craving of Indian palate buds for western food, the frozen food business in India is likely to accomplish big in the food industry.
Frozen Food Business in India- Recent Updates
- “Anticipations are high that the frozen food business in India would witness 17% annual escalation during 2020-2024,” as per the analyzed report of IMARC (A global market research company).
- As per the panel discussion organized by the US Soyabean Export Council, the frozen food industry will be observing an accelerated rise due to an increase in health consciousness among people.
- As COVID- 19 outbreak has raised the consciousness level of people, they will be opting for healthy eating options and thus, opening the door of opportunities for frozen food business in India.
- On the 12th of May, 2020, FSSAI has lifted the restriction on transportation of frozen food products.
Notable Steps to Follow for Starting a Frozen Food Business in India
Given below are the notable steps that must get followed for starting a frozen food business in India-
Begin with the Extensive Research
- Before you think of initiating any business, you must do far-reaching research to analyze the market requirements, what kind of products customers are expecting in their specific regions, and gathering knowledge about the competitors. Thorough market research would help you in utilizing your hard-earned money in the right direction.
- Furthermore, there is a requirement for research concerning the expenses. You must know your product very well, and then only, you will be able to acquire the equipment needed for your business and serving products high in terms of quality.
A Good Location to Succeed
- Excelling in the frozen food business requires a perfect location. The location of the frozen food business should be at a place of the massive gathering of visitors. Establishing this business in a market where people gather for purchasing food items would be a great idea.
- It must get located at a convenient location. Proper space should be there to hold the freezer as well as other types of equipment. In the end, we would like to say, “Go with the best location.”
Read our article:A Full Guide on How to set up a Food Business in India
Legal Requirements for Starting a Frozen Food Business in India
In order to conduct business in a legal manner, all frozen food businesses should obtain government licenses and approvals. The legal requirements for starting a frozen food business in India are-
Registration of the Business
All the businesses should get incorporated under sole proprietorship, in case if the responsibility of managing and carrying out the operations is by a single person, and that person is also the owner of the business. There is no need for partnership firms to submit an audited annual return in the office of the Ministry of Corporate Affairs.
GST Registration
GST registration is mandatory for all the frozen food business owners. If the annual turnover of your store is above Rs 40 lakhs (Rs 10 lakh in the case of hilly states and NE), you should follow the GST registration process as a priority. The following are the essential documents required to pass the GST registration process-
- Bank Account Number
- Active Mobile Number
- Valid Email Address
- Professional Tax License
- Bank IFSC
- The Trademark for the Purpose of Brand Name Protection
- Current Bank Account Details
- GSTIN Password Issued by the State Government
FSSAI Registration for Running a Frozen Food Business in India
FSSAI license is mandatory for all the frozen food business operators to run a frozen food business anywhere in India. Food Businesses having their turnover between Rs 12 lakh to Rs 20 crore can apply for the state license. Frozen food business operators having turnover more than Rs 20 crore can apply for a central license.
Food business operators whose annual turnover is below Rs 12 lakh need to get registration under the Food Safety and Standards Act, 2006[1].
Initial Investment
- Cost of renting a shop
- Buying weighing scale, generators, freezers, trays, and Knives
- Hiring the best workforce
- Procuring frozen food supplies
- Inventory Maintenance Cost
- Managing equipment
Marketing
After setting up a frozen food unit, obtaining all the licenses and permits, buying equipment, and hiring the best ones from the market, the last but not the least part is remaining for giving pace to any business, i.e., marketing. It helps in establishing a bond between customers and businesses. Taking the help of social media promotions, advertisements, circulating pamphlets along with website creation, and making your website rank high, all these mediums would do the job for your frozen food business in India.
Take Away
The current trend suggests that the frozen food business is on the rise, and is enjoying its golden phase in India. Therefore, most of the entrepreneurs are entering into this segment in the country. After figuring out your plan for starting a frozen food business in India, proceed ahead and make your frozen food business legal. We, at Corpbiz, would be more than happy to guide you in the process of getting GST registration and FSSAI License for empowering you to kick start a frozen food business in India.
Read our article:How to Obtain an FSSAI License in India: Full Guide
