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How to Setup Fruit Juice Industry in India?

calendar30 Sep, 2021
timeReading Time: 5 Minutes
Fruit Juice Industry

The factors like escalating health consciousness primarily propel the Indian fruit juice market. As a result, the end-users now prefer more organic beverages in place of carbonated drinks. The children-centric fruit juice market is one of the high calibre markets, which hardly experience any positive push from the producer of fruit juices. As a prominent market for fruit beverages, the kid’s fruit market primarily consists of protein & milk beverages. Some reliable sources have predicted that the fruit juice market will grow at a CAGR[1] of 17.1% over the projected timeline, backed by the considerable adoption of health beverages of young customers in India. The fruit juice and beverage business is on the rise and expected to escalate even further in the near future. If you intend to start your business journey in the food sector, this could be the right time to establish a fruit juice industry in India. This write-up entails the scope, legalities, and benefits related to the business model in detail. 

Indian Fruit Juice Industry Growth Elements and Restraints

  • As per the report, a primary driver in the Indian fruit juice market is the ever-increasing disposal income of Indian customers & changing eating habits. In recent years, there has been a considerable spike in the number of nuclear families, paired with a rise in the number of working couples, which has lead to improved disposal incomes. This has garnered the affordability of package fruit beverage pan India, which are promptly replacing fresh homemade juices & becoming indispensable items on breakfast tables.  
  • Moreover, the report states that one hurdle in India’s fruit juice industry continues to encounter challenges in securing their margin growth between ever-rising competition and increasing transportation expenses. The general instrument to strengthen margin growth is escalating product price, which is risky to apply, as customers in the market are price conscious and thus not willing to pay higher prices for standard items.
  • Geographically, Tier-I cities are credited for the highest revenue share in the Indian fruit juice market, with almost 55 per cent of the market share. Tier-II and Tier-III cities serve a potential market due to escalating demand for fruit beverages in tier-II cities and increasing consumption of fruit beverages in Tier-III cities. 

The following section will shed some light on standard machinery used in India’s fruit juice industry.

Common Equipment that Propels Fruit Juice Industry in General

A complete juice processing line employs a fruit sorter, washer, crusher, pulping machine, juice extractor, sterilizer, concentrator, filler, etc. The production processes may vary in accordance with the type of fruits you are dealing with. The following are the different types and functions. 

Fruit elevator

 This machine transmits fruits from lower to higher positions and connects two adjacent procedures. Fruit elevator is generally mounted between fruit sorter and washer. 

Fruit washer

Classified into brush spray washing machine & fruit surfing washing machine

Fruit crusher

Classified into squirrel-cage crusher & hammer crusher and used for primary crusher of vegetable & fruits. 

Preheat machine

Used to mitigate enzyme, soften raw material, & safeguard colour. 

Fruit pulping machine

Used to pulp kernel fruits & extract juice or puree such as apricot, mango, kiwi, strawberry, and raspberry. 

Juice extractor

Entails belt juice extractor & spiral juice extractor. Applies to kernel fruits like mango, pear, & apple, with a high juice yield rate. 

Vacuum concentrator

Include falling film and climbing film concentrating pan, external circulating fruit concentration machinery.

Tube-in-tube pipe sterilizer

Use steam, cold & hot water as heat transfer agents, apply to raw material with moderate to low viscosity. 

Aseptic filling machine

 Incorporated with an asepsis room. Complete the process of canning, opening cover, metering & sealing. 

Legal requirements for Establishing a Fruit Juice Industry in India

The following section pens down general registration and government permits that one needs to avail for commencing a fruit juice industry in India.

Firm incorporation 

You may set up a small to medium fruit juice industry, either a private limited company, OPC, LLP, or a partnership-based entity. These business forms serve different purposes and come under different Acts, namely, the company Act, 2013, LLP Act, 2008, Partnership Act, 1932, etc. 

FSSAI food license

FSSAI food license is granted by the FSSAI, a premier government institution that aims to foster the environment of food safety and hygiene among the masses. Every food business operator, including fruit juice maker, are obligated to function as per the bylaws mentioned in FSS Act, 2006. The eligibility criteria for the grant of the FSSAI license revolves around two key parameters, i.e. scope of operation and annual turnover. 

Apart from that, in some cases, the authority also takes monthly production capacity into account for granting the food license to the applicant. Presently, the FSSAI food license is available under three fundamental heads

  • Basic Food license 
  • State food license 
  • Central food license 

Factory license 

Factory license is granted in line with the provisions of the Factory Act, 1948. It is a legal compulsion for every establishment that leverages certain types of machinery and employs a workforce to get the job done. The factory license holders need to care of the following parameters as soon as registered under the said Act. 

  • Working hours of the employees
  • Hygiene and safety of the employees
  • Operational timing of the plant 
  • Prevention of child labour 
  • Work timing of women
  • Lunch timing

The Labour department of the respective states has been vested with rights to grant factory licenses to entities in India. 

EPF registration  

The EPF (Employee Provident Fund) serves as a retirement saving scheme facilitated by the Indian government for all salaried individuals, on which fixed interest is paid uninterruptedly. The EPF is a prerequisite facilitated by the employer to their workers over & above their basic remuneration. 

PF registration is a legal compulsion for all registered entities that have 20 or more employees. Such entities are mandated to contribute a set amount towards EPF out of employee salary & wages. 

If a business owner fails to avail of this registration or manifests some misleading information to avoid PF payment, he shall be accountable for a penalty up to Rs 5000. 

While applying for PF registration, the employer is mandated to facilitate the following documents before the authority

EPF registration Documents

MSME Registration

MSME is an abbreviated term of word Micro, Small and Medium Enterprises. It is a government-backed scheme that primarily facilitates benefits to financially oppressed entities. Entities registered under MSME have access to the various government-driven scheme as well as financial aid. 

Trademark registration 

Though Trademark registration is not mandatory, it is an absolute necessity for businesses who wish to ensure comprehensive legal fencing for their IPR assets. The logo, design, slogan, etc., can be covered under the trademark registration. Unlike previous days, the applicant seeking trademark protection can apply on an electronic portal, viz IP India online. Since Trademark registration is a comprehensive process, the applicant may have to wait for months or even a year for the certification grant.       

Conclusion 

Starting a fruit juice industry attracts various legal requisites, as mentioned above. It is needless to note that any negligence in this regard could compel the owner to face severe penalties. For detailed purview on penalties provisions and regulations, make sure to avail professional help from CorpBiz’s associates. 

Read our article:How to Setup Third Party Pharma Manufacturing Unit in India?

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