{"id":31724,"date":"2021-06-12T12:46:34","date_gmt":"2021-06-12T07:16:34","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=31724"},"modified":"2021-06-12T12:46:38","modified_gmt":"2021-06-12T07:16:38","slug":"set-up-food-processing-unit-in-india","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/set-up-food-processing-unit-in-india\/","title":{"rendered":"A Beginner\u2019s Guide to Set-up Food Processing Unit in India"},"content":{"rendered":"\n<p class=\"has-drop-cap\">India is a\nnation that reaps most of its revenue via its agrarian economy. Our country is\nthe 6<sup>th<\/sup> largest nation in the food &amp; grocery market and the 5<sup>th<\/sup>\nlarge in terms of the retail marketplace globally. Food processing is a\npromising sector that adheres to limitless growth opportunities. In this\nwrite-up, we will walk you through an effective setup procedure for a food\nprocessing unit and recites some important aspects for the same. <\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/set-up-food-processing-unit-in-india\/#What_you_do_mean_by_a_food_processing_unit\" >What you do\nmean by a food processing unit?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/set-up-food-processing-unit-in-india\/#An_Overview_on_Indias_Food_Processing_Sector\" >An Overview on India\u2019s Food\nProcessing Sector<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/set-up-food-processing-unit-in-india\/#What_is_the_Importance_of_Food_Processing_Business\" >What is the Importance of Food Processing Business?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/set-up-food-processing-unit-in-india\/#A_Viable_Approach_to_Setup_Food_Processing_Unit_in_India\" >A Viable Approach to Setup Food Processing Unit in India<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/set-up-food-processing-unit-in-india\/#Conclusion\" >Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_you_do_mean_by_a_food_processing_unit\"><\/span>What you do\nmean by a food processing unit?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Food processing unit converts raw material into a consumable product via different techniques and methods. Such units are an important part of practices such as horticulture, agriculture, animal husbandry, plantation, and fisheries. It also entails other companies that leverage agricultural inputs for preparing eligible items. This food manufacturing industry is one the most stable businesses which could generate proliferating profit overtimes if managed well. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/register-food-business-online-with-fssai\/\">How to Register Food Business Online with FSSAI? <\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"An_Overview_on_Indias_Food_Processing_Sector\"><\/span>An Overview on India\u2019s Food\nProcessing Sector <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The food processing unit has a pivotal role to play in connecting Indian agriculturists to customers in the local and global markets. The Ministry of Food Processing Industries (MoFPI) is striving hard to increase the volume of investment across the value chain. The industry employs more than 1.93&nbsp;million people, spanning over 39,748&nbsp;registered units with fixed capital of $32.75&nbsp;bn. The primary industries constituting this industry are sugar, grains, beverages, edible oils, &amp; dairy products. <\/p>\n\n\n\n<p>Last year <strong><em>Indian Government<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/Government_of_India\"><strong><em>[1]<\/em><\/strong><\/a><\/sup> sanctioned&nbsp;more than 130 food processing projects across different states. The key sub-segments of such industries include Fisheries, Dairy, Poultry &amp; Meat processing, Fruits &amp; Vegetables,&nbsp; Food retail, etc.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Importance_of_Food_Processing_Business\"><\/span>What is the Importance of Food Processing Business? <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Food processing is a critical process that ensures consistent availability of food for the general public regardless of its perishable variety and its seasonal nature. Following pictorial representation reflects the pros of having a food processing sector in India <\/p>\n\n\n\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img decoding=\"async\" src=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/06\/image-3.png\" alt=\" Importance of Food Processing Business\" class=\"wp-image-31725\" width=\"557\" height=\"491\" srcset=\"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/06\/image-3.png 605w, https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2021\/06\/image-3-300x265.png 300w\" sizes=\"(max-width: 557px) 100vw, 557px\" \/><\/figure><\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"A_Viable_Approach_to_Setup_Food_Processing_Unit_in_India\"><\/span>A Viable Approach to Setup Food Processing Unit in India <span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The\ngovernment of India had underpinned various schemes as well as policies to help\nestablish food processing units. GOI also facilitates ample funding to this\nsector for modernizing the industries. <\/p>\n\n\n\n<p>To commence a food business in India, an <a href=\"https:\/\/corpbiz.io\/fssai-license\"><strong>FSSAI license<\/strong><\/a> is mandatory. FSSAI is the body that administers food safety laws and issues Food licenses to eligible entities. At present, <\/p>\n\n\n\n<p>FSSAI license\nis available under a 3-tier system i.e. Basic, State, and Central depending on the\nannual turnover of the applicants. Nonetheless, there are certain guidelines\nthat one has to follow to legally protect the company. These guidelines are as\nfollow<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Business\nResearch &amp; Market Analysis<\/strong><\/h3>\n\n\n\n<p>Comprehending\nthe market and opting for the product to be manufactured are the priorities for\nany new business. While selecting the product, the investor must take its\nmarket viability into account. It is also imperative to have the best\nprediction regarding the economic and industrial outcomes of the prevailing\nindustries, which lets you identify the market size, rivals, and trends. <\/p>\n\n\n\n<p>Once this is\ndone, the business must be structured accordingly as per the needs to make it\nlegally viable. There are options such as partnership firm, LLP, Private\nlimited company, Public Ltd company, etc with their benefits and downsides.\nThese structures can be selected based onthe scope of operation, annual revenue\n&amp; other compulsory criteria. It is advisable to hire an expert who can\nsuggest the best fit structure. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Location of\nthe Food Processing Unit <\/strong><\/h3>\n\n\n\n<p>Identification\nof market size is critical to determine an apt location for the factory. It\u2019s a\ngood idea to check a location that has viable &amp; seamless accessible\nresources such as labor, electricity, raw materials, transportation, etc.\nAnother imperative parameter that seeks due consideration is the\ngovernment-based tax policies and subsidies. An optimal location can be\nidentified by considering aforesaid parameters along with the accessibility to\nraw material in a certain location. The perishable nature of edible items and\ntimeline also seeks due consideration for ensuring consistent availability of\ngood produce throughout the year. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Business\nStrategies&amp; Plan<\/strong><\/h3>\n\n\n\n<p>All the\nresearch &amp; analysis made at the initial phase should then be synced\naccording to the needs of the processing units. New strategies &amp; policies\nmust be computed to generate a blueprint of how the firm ought to perform\nactivities and the upcoming plans must be outlined properly. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Funding<\/strong><\/h3>\n\n\n\n<p>Every\nbusiness seeks ample capital for the raw material\u2019s procurement and seamlessmanagement\nof value chains as the industry grows. The funds also tend to vary as per the\nscope of operation and nature of the industry. Thus, it is imperative to have\nshareholders and to identify a viable source of funding for the company. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Statutory\nObligations&nbsp; <\/strong><\/h3>\n\n\n\n<p>Once the unit\nis established, it must be registered with respective authorities before\ncommencing the operation. As per the Companies Act 2013, the companies should\nseek mandatory registration by furnishing required documents and fees. Apart\nfrom that, registering under various taxes such as PAN, service tax, sales tax\nis also important for the company. The protection of IP assets may sound\nirrelevant at an early stage of business, yet it must be done to avoid future disputes\nand costly litigation. Moreover, adherence to the Act like Standard and Weight\nMeasure Act &amp; Food Safety and Standards Act, 2006&nbsp; is highly important. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Implementation<\/strong><\/h3>\n\n\n\n<p>Implementation\nis inherently the trickiest part of any business formation. This is the phase\nwhere the likelihood of making mistakes is significantly higher. The business\nowners, in such cases, must seek Subject Matter Experts (SMEs) to ensure\nseamless deployment of pre-established plans. The proper segmentation of the department\nand recruitment of the right candidates are also a part of the implementation\nstage, which indeed requires a certain level of expertise. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This write-up has clearly indicated that the formation of a new food processing unit in India seeks an extensive and clear approach. Therefore, business owners are required to have a proper understanding of legal implications to ensure the seamless foundation of a production unit.  One has to encounter tons of paperwork and legal implication before setting up a new business. With CorpBiz\u2019s services at your disposal, you can expect seamless commencement of your business journey. The CorpBiz\u2019s expert can give you much-needed patronage that is required to comply with existing bylaws. <\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important;\"><a href=\"https:\/\/corpbiz.io\/learning\/fssai-registration-for-event-management\/\">FSSAI Registration for Event Management: Things you must know <\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India is a nation that reaps most of its revenue via its agrarian economy. Our country is the 6th largest nation in the food &amp; grocery market and the 5th large in terms of the retail marketplace globally. Food processing is a promising sector that adheres to limitless growth opportunities. In this write-up, we will [&hellip;]<\/p>\n","protected":false},"author":22,"featured_media":31787,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[150],"tags":[1807],"acf":{"service_id":"318"},"authorName":"Pankaj Tyagi","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2022\/01\/MicrosoftTeams-image-42.jpg","authorDescription":"Pankaj has a diverse experience of writing research papers, blog, and articles during his college time. Earlier, he was working as a tax consultant in a financial firm, but his interest in writing drives him to pursue a career in the writing field.","postViews":9070,"readingTime":4,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/31724"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=31724"}],"version-history":[{"count":8,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/31724\/revisions"}],"predecessor-version":[{"id":31788,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/31724\/revisions\/31788"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/31787"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=31724"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=31724"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=31724"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}