Company Registration

Let’s Understand the Process of Registering Flour Manufacturing Company in India!

calendar16 Dec, 2020
timeReading Time: 5 Minutes
Flour Manufacturing Company

Flour Manufacturing Company is one of the most essential and basic industries particularly in a country like India where Rotis & chapattis are part of daily staple diet. Furthermore, flour is also utilized to make fast food products such as pizza base, pasta, donuts, buns for burgers, biscuits, bread, noodles, etc.

It is well-known that flour is always required as an item for consumption whether it is for household purpose or restaurant purpose for fast food, so Flour Manufacturing Company is a very profitable business and it is an evergreen business.

Types of Flour Manufacturing Company

Flour Manufacturing Company can be initiated in two ways; both categories have need of different investment and different terrain such as-

Basic Mill

In this type of milling facilities the customers will bring their own wheat and you will provide them with grinding of the wheat. In Basic Mill there is neither investment nor land requirement for starting the flour Manufacturing Business. This type of business can be started within short span and less manpower requirements.

Flour Mill

This type of business category is different and you require a good investment capacity. Inside such business, grains are purchased and cleaned and then grinded by big machines. Later the acquired flour is sent for packaging. The manufactured goods are put up for sale under the name of the brand. Nowadays there are many flour manufacturing companies within the marketplace such as Ashirwad, Patanjali, etc.

Investment for Flour Manufacturing Company

If you have a discussion regarding investment for Flour Manufacturing Company then speculation depends upon the category of business. If the land is already owned then a lot of capital can be saved. The costs for different category of Flour Manufacturing Business are as follows-

Basic Mill Set Up Cost

  1. Land Cost: – INR 2 Lakhs to INR 3 Lakhs (This money will be saved if the land is already owned)
  2. Machine Cost: – INR 30,000 to INR 50,000 (It has different price as per the manual machine, Semi Automatic, Fully Automatic)
  3. Other Cost: – INR 30,000 to INR 40,000
  4. Total Investment: – Around INR 50,000 to INR 1 Lakh (if the land is own)

Flour Mill Set Up Cost

  1. Land Cost: – INR 10 Lakhs to INR 15 Lakhs (If the land is own, then this money will not be saved).
  2. Machine Cost: – INR 5 Lakhs to INR 10 Lakhs (It has different price according to manual machine, Semi Automatic, Fully Automatic)
  3. Registration & License Cost: – INR 10,000 To INR 30,000
  4. Staff: – INR 30,000 to INR 60,000
  5. Other Cost: – INR 50,000 to INR 1 Lakh

How much Space is Required to Establish Flour Manufacturing Company?

If you have good area at home, then you can start a Basic Mill at home. You just need to buy small machines and install them in your home. Customers will carry their grains and you only have to charge for mashing their grains. It is enough if you have 200 Sq. ft. to 300 Sq. ft. free area at home.

Flour mill businesses: These businesses need a lot of land because in flour mill businesses lot of machines are installed and after that you will need space for storing grain stock and for daily auditing an office is also required. As these businesses are hefty and you need more Space: 200 Sq. ft. to 300 Sq. ft. area.

License Required for Atta Chakki Business

Usually, for a small Atta Chakki Business you do not require a license. However, if you operate a floor mill in the name of a company, then you have to acquire license from the concerned department. Below you can find the compulsory licenses which you need to acquire.

License Required for Atta Chakki Business

Business Entity

Every business has to register to begin as a brand because if there is no Business Entity then it is not easy to do business.

FSSAI Registration

Flour mill business or Atta Chakki Business is a food business and it is necessary for all food businesses to obtain FSSAI registration and acquire its certificate.

Udyog Aadhaar Registration

You need to obtain Udyog Aadhaar Registration, for starting you flour mill in India.

GST Registration

Before starting your Mill, you need to get your GST Registration done.

Shop Act or Trade License

You need to obtain Shop and Establishment License in case of basic mill. And if you are setting up Flour Mill then you need to obtain Trade License.

Things Required for Flour Mill Business

Various Equipment and other essentials are required for an Atta Chakki or Floor Mill Business. According to the type of business you need to make sure the following equipment and facilities:-

  • Transportation facility
  • Electricity
  • Water
  • Semi-skilled manpower
  • Rotary separator with aspiration channel
  • Scourer machine with aspiration channel
  • Intensive dampener
  • Rota meter
  • De-stoner
  • Indent cylinder
  • Screw conveyor
  • Drainage facility
  • A minimum area of ​​3000 sq ft
  • Magnate
  • Silo gate
  • Roller Mill body
  • Roll Grooving & spindle cutting
  • Purifier
  • Bucket elevator
  • Reel machine (3 segments)
  • V-Groove, Pulleys, Couplings, V-Belts etc.
  • Weighing scale
  • Dust cyclone
  • L.P fan for cleaning
  • Super cyclone

Process to Start Flour Mill Business

If you want to start Flour Mill or Atta Chakki, then you need to carry out lot of activities such as area analysis, land selection, project plan, registration, financial arrangement, etc.

Area analysis

It is crucial to analyze the area where you want to establish your business. Research is done within the location where you are planning to setup your business. While areas researching you have to check many quesries, such as – how many floor mills are present in that particular area? What sort of products they are manufacturing? How much is the price of their manufactured product?

Land Selection

After conducting the area analysis, next step is selecting the location. The location must have good facilities such as good electricity amenities and water amenities. Along with that make sure it has a good ground as if you have such a location with good area and amenities, then it is completely right.

Project Plan (Business Plan)

When you have selected the location, then draft your business plan and put all the things that you are required to do in the business. For instance how much investment you have to invest in the business, machine and other details? All such things must be prepared in the project, and they must be put in the business plan.

Financial Arrangement

Once you have prepared business plan, you have to focus on financial aspect because nothing can begin without investment.

License & Registration

When you have made the investment, then you have to apply for the license because license and registration from concerned departments are very important for Flour Mills and Atta Chakki, without proper licenses and registrations you cannot commence a business.

Machinery Purchasing

After you have obtained the necessary licenses and registrations for the business, you have to buy machines.

Machinery Installation and Electricity Fitting

After taking the required machinery, you have to make sure that the electricity fitting is completed for them and then installation of the machine should be done. Now you can start your manufacturing[1] business comfortably with 2 to 5 workers.

Will there be any Profits in Flour Manufacturing Company?

The profit of flour manufacturing business depends upon the category of business you have chosen to start your own flour mill because if you have selected a basic mill then you will earn 2 to 2.5 rupees for each milling.

Flour Mill Company will earn more profit as they crush in a very large quantity and also sell it with a brand name. Still exact profit cannot be derived because there are many areas such as purchasing grains, clean-up, grinding it and packaging. After completing all the operating expense, the product will be sold.

Advantages of Flour Mill Business in India

Flour mill business generates a good profit in the country like India where consumption of flour is more. There are many advantages of flour mill business such as:

High Demand

Indian family uses flour in their everyday meals thus a single-family desires a considerable amount of flour. It is known as high demand business and not a Season based business.

Low Investment

Flour mill is the type of business which does not require a heavy monetary investment.

Easy starting

This type of business can be started effortlessly and you can start the flour mill business from your home itself.

Conclusion

Flour is always a necessary item for consumption whether it is for domestic purpose or eating place for fast food, so Flour Manufacturing Company is a very profitable business. Please contact CorpBiz to establish your Flour Manufacturing Company in India along with all the required licenses and compliances needed.

Read our article: FSSAI Restrain Licensing Authorities from Demanding Immaterial Documents from FBOs

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