The health drinks business in India has attained momentum in recent years as people have become prudent about their fitness and health more than ever. A significant section of the population has increased the intake of various types of healthy drinks for the fulfillment of nutritional deficiencies. The craze for health drinks and energy drinks in India has fascinated the health drinks business aficionados.
The Indian market has evolved as the mounting consumer market, especially for those products whose demand is from the end of young and young adult groups. The health drink business is capturing the market at a rapid pace compared to soft drinks segments due to the elevated urbanization, changes in consumption patterns, and increasing wakefulness towards the health and fitness among the Indian consumers.
Points to Consider Before Commencing Health Drinks Business in India
Before starting health drinks business in India, you need to take care of the points specified below-
Arrangement of Capital
Arrangement of finances or capital is one of the crucial factors that must get considered by the person interested in healthy drinks business or energy drink business. An individual or applicant needs to opt for a decision concerning the finance arrangement either by getting a loan from banks or seeking the best investment opportunities.
Deep Understanding of Customers and Market Needs
The applicant should go for the proper market analysis as it would help him in recognizing the niche for his product segment. Also, he should be familiar with the customers’ needs regarding healthy drinks. By gathering information about the market and customers, an applicant will be able to devise a plan to meet the market expectations.
Determination of Expenses and Selling Price
An applicant should know the overall expenses that would get incurred in the preparation of the healthy drinks. Furthermore, he needs to analyze the prevailing selling price in the target market region, and then only he will be able to fix selling prices for healthy drinks items that would ensure profitability for the business.
Certification of Production Site
It is mandatory for the applicant to obtain the certification of the production site, ensuring that the healthy drinks are safe for the end-user consumption and is legally ok to reach the hand of big retailers.
Strong Brand Positioning
The applicant must analyze the market conditions before selling its brand. He should create mighty brand positioning as brand positioning is the heart of any brand’s competitive strategy through which it can dominate the other players in the market.
Appealing Packaging Strategy
Packaging healthy drinks should take place in such a manner that it must conform to the safety standards, and it should be appealing to your consumers and justify the worth of your brand. If the packaging strategy is well-crafted, it will bring positive outcomes for your business.
Can you imagine the existence of any business without a business plan? The one and only answer must be No. A business plan holds the map for every business. If you want investors and lenders to take a keen interest in your business project, you need to be ready with a simplistic as well as an adequate business plan.
To taste success in food or healthy drinks business, one needs to draft a sound marketing plan that focuses on brand building activities, developing cordial relationships with the potential customers, retaining the existing ones, and utilizing the social media platform for the marketing activities.
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Permissions and Licenses Needed for Commencing a Health Drinks Business in India
Initiating a health drinks business in India is an easy-peasy task after obtaining the mandatory permits and licenses.
The permissions and licenses that would let you start the highly in-demand health drinks business in India are-
To start the health drinks manufacturing business, business registration or company registration is the initial step in the journey. Setting up of healthy drinks business takes place under the cover of artificial legal entities such as a limited liability partnership or a company.
All the manufacturing business establishments having more than 20 employees in the unit or the company should acquire EPF Registration. This form of registration saves a small portion of employees’ salaries for meeting future requirements.
It is mandatory for all the healthy drinks businesses involved in the taxable supply of goods or services, with turnover crossing the threshold limit to go for the GST registration and acquire GST number.
All the food business operators hooked in India’s health drinks business must follow the safety standards for healthy drinks. Following FSSAI guidelines and obtaining an FSSAI license for driving a health drinks business in India is of extreme importance. You must follow the legal requirements for acquiring an FSSAI license to conduct your health drinks business anywhere in the country.
- FSSAI Registration– All the food business operators involved in healthy drinks business with an annual turnover not exceeding Rs. 12 lakh should look for FSSAI registration.
- FSSAI State License– In order to obtain the FSSAI state license, FBO’s annual turnover must be between the range of 12 lakh-20 crores.
- FSSAI Central License– The food business operator can apply for an FSSAI central license only if his business’s turnover exceeds Rs. 20 crore.
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No Objection Certificate from Pollution Control Board
All the healthy drinks establishments must acquire the NOC from the State Pollution Control Board before performing its business operations.
To acquire Employee’s State Insurance, i.e., ESI registration, all the healthy drink businesses should employ at least ten or even more than ten employees.
Drug and Pharmaceutical License
In case the drinks include caffeine, then it becomes mandatory for the food business operators to acquire permission from the Food and Drug Department concerning the limit of caffeine used in the drinks.
FSSAI Standards Concerning Health Drinks Business in India
FSSAI has set specific standards for conducting a health drinks business in India.
- It is mandatory for the manufacturer to inscribe a safety warning on the drink’s label to make customers aware of what they are consuming.
- The label should indicate the consumption limit within a day.
- The label should reveal if the healthy drinks are unsuitable for getting consumed by pregnant women or children, along with people who are sensitive to caffeine.
Guidelines Prior to Applying for FSSAI License for Health Drinks
- The authority should conduct a hazard test to ensure that all the ingredients used by the FBOs in the healthy drinks must be safe for getting consumed by humans.
- Employees should receive excessive training to get a clear idea about the FSSAI guidelines and put efforts into it in an effortless manner.
- It’s crucial to acknowledge the customers by making them believe that they are getting the drinks fit for consumption.
- Distributors should check the quality of healthy drinks.
- All the food business operators must differentiate between the drinks perfect for consumption and adulterated drinks by adopting the right measures.
All the food business operators must acquire all the above-mentioned permissions and licenses for commencing a health drinks business in India. The purpose behind obtaining the FSSAI license concerning this business is for safety objectives. As our Corpbiz professionals have achieved expertise level in rendering legal services concerning the health drinks business in India, you may feel free to consult us.
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