FSSAI License

Essentials for Starting a Fruit Juice Business in India

calendar03 Jun, 2020
timeReading Time: 4 Minutes
Starting a Fruit Juice Business in India

As starting a fruit juice business in India requires a low investment of capital, many small entrepreneurs are considering it as a golden opportunity. A large section of people prefer to have fruit juice squeezed in a hygienic environment, and juice bottles free from preservatives added colors and varieties of flavors.

Starting a fruit juice business in India is all about making easy money with minimum complications involved. In recent years, the demand for a fresh fruit juice business has picked up the pace in the swiftly progressing country, India. Most of the people are adopting healthy lifestyles, and thus, they feel the need to include fresh fruit juice in their periodic diet regime. Despite all the accomplishments, the potential of fresh fruit juice business is yet untapped in India. Brands like PaperBoat, B Natural, and Rawpressery have made their mark in the fresh fruit juice industry. They have shown the path to new entrepreneurs to involve themselves in this evolving sector.

Starting a Fruit Juice Business in India- Business Models

There are two paths in the process of starting a fruit juice business in India.

Fruit Juice Business Model

Establishing Juice Shops

An applicant can start his fruit juice business in India by setting a fruit juice shop or a juice shop chain. It requires minimum capital investment, and thus, we can say that it’s a ‘low investment, good returns’ kind of business. The applicant can consolidate its fresh fruit juice shop with food items as well as snacks to make the business more profitable. Most importantly, the success of a fruit juice shop depends on the juice shop location. The demand for juice shop is mostly in areas like airport, canteens, malls as well as fitness centres.

Example-Estimation for Small Juice Shop:-

  1. Seating Capacity- 10-20
  2. Investment- 10-15 lakhs

Establishing a Pre-Packaged Juice Business in India

  • The bottled or pre-packaged juice business has come a long way in India by becoming a better alternative to the traditional unorganized fruit juice shop.
  • Since pre-packaged juice businesses offer nutritional value and better hygienic conditions, the trend of pre-packaged fruit juices is becoming livelier.
  • Furthermore, the advancement in food processing technology, improvement in packing approaches, and development in the cold chain has created a perfect atmosphere favoring the fresh fruit juice to get manufactured, transported as well as distributed across wide-ranging geography while maintaining the freshness.
  • It has helped in the formation of several businesses that are high in terms of expandability. 

Fruit Juice Market in India: Latest Updates

  • Statistica report suggests that in India, revenue in the segment of juice amounts to US$2136m in the year 2020. The anticipation is that the market will grow yearly by 7.6 %( CAGR 2020-2023)
  • As per the Goldstein Research forecast, the Indian fruit juice market would reach US$ 4.9 billion at a CAGR of 17.1%.
  • Augmenting the disposable income of consumers in India and the changes in their eating practices has driven the fruit juice market in India.
  • Tier-1 cities hold the record for the highest revenue share of near about 55% market share in the fruit juice market of India. Tier-2 and Tier-3 cities would probably be the most opportunistic regions owing to the increase in fruit juice demand in tier-2 cities and significantly increased fruit drink consumption in Tier-3 cities of India.

Read our article: A Brief Take on FSSAI Standards for Alcoholic Beverages

Steps Involved: Starting a Fruit Juice Business in India

  • The first step initiates with making a rational decision whether the applicant is interested in setting its own fruit juice shop or is looking for a shop to hire on the basis of rent.
  • The initial requirement of setting up this fruit juice business is at least three persons. After a considerable period of time, as per the business demand, these numbers can go on increasing.
  • There must be a requirement of raw materials such as vegetables, fresh fruits, strawberries along with dry fruits.
  • The applicant should take the decision concerning the utensils and equipment purchase.
  • In the case of packaged juice, the application must pay the FSSAI registration fees.

Be Ready with a Business Plan for Juice Shop

By having a proper business plan for the juice shop, the entrepreneurs will be equipping themselves with the solutions to confront the problematic circumstances and difficulties coming their way. A business plan would let entrepreneurs know about business fluctuations. Through a sound business plan, entrepreneurs would get informed about their economic goals.

Licenses and Registration Required for Starting a Fruit Juice Business in India

Fruit Juice Business license registration

For starting a fruit juice business in India, it is vital for all the entrepreneurs to obtain different types of licenses as well as registration. Tax registration and FSSAI license both are equally mandatory to conduct fruit juice business in the limits of India. The required licenses and registration in establishing fruit juice business in India are-

FSSAI License

All types of juice businesses and juice shops must license or register with the Department of Food Safety and Standards Authority of India[1]. The demand between FSSAI License and FSSAI Registration varies on the basis of the fruit juice business scale as well as type. The testing of bottled juice takes place for safety purposes and different parameters.

GST Registration

After GST implementation, all businesses carrying out a taxable supply of goods along with services and whose turnover is more than the threshold limit must get GST registration as well as acquire GST number.

Business License

Another requirement for the applicant is to get the Non-objection certificate from the local authority.

Trademark Registration

Applicants must get the trademark registration in order to ensure protection against the conflict of copying the logo as well as the brand name.

Registration under Shop and Establishment Act

In the unorganized sector, shops should get registered under the Shops and Establishment Act, performed by all the states to monitor the work condition and to grant for employees rights as well as employers’ regulations.

Key Take Away

As every decision counts, take your decisions wisely at the time of starting a fruit juice business in India. With low capital investment and high-profit margins, this is a viable business for modern entrepreneurs. Acquiring all the licenses and registration is necessary for entrepreneurs interested in starting a fruit juice business. Our well-knowledgeable experts at Corpbiz would help you in the process of obtaining an FSSAI license and would guide in the further process as well.

Read our article:FoSCoS for FSSAI License in India: A Replacement of Food Licensing and Registration System

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