How to start a flour & spice mill business? [Cost & Steps]

The flour mill is one of the most common businesses in India. It is because of the demand and daily consumption of an individual. Flour is used for several purposes, like making bread, biscuits, cake, and other bakery-related items. So, to keep up with the increasing demand, the production businesses and start-ups have also increased. In the past decade, many people have started the flour mill business as it is considered a profitable business. You can also mill the spices in the same machines and sell them separately to earn more profits.

In this article, you will find a step-by-step guide to help you establish a flour mill business. If you are looking to start this business, then follow these essential steps.

How to start a flour mill business / How to start a flour mill factory?

Starting a flour mill business requires a proper flour mill business plan. It is not an easy task to start an aata chakki business. The steps of establishing the business are as follows:

1. Establish the location

The most important step in starting the business is to establish the location of the enterprise. As many people consume it in large quantities daily, you need to have a proper central location. You need to research the market and areas. Make a list of the most targeted places where people often shop and buy stuff. Narrow down your list and find the most suitable place to start the business. It will help you target the right places and people. A proper aata chakki business plan is essential for stable growth. You can earn huge profits if you start your flour mill business at a suitable place.

2. Size of the business

The next step in starting aata chakki business is to decide the size of the business. There are two types of businesses that you can begin, a large flour mill or a small flour mill. It will depend on the production of the flour. A small flour mill business doesn’t require a huge investment. You can start it with a small amount; however, the profits will be small as well. Once you establish the business and gain consistent customers, you will start making a profitable income. You can also mill the spices in the same machine and sell them separately to earn more profits. It is an alternate method for small-scale mill businesses to earn more income. On the other hand, a large-scale flour mill is more profitable and requires large investments. You can process the flour using raw materials in a large-scale business instead of purchasing the milling grains. So, deciding the type and size of the business is essential to start a flour mill business.

Also read: Spices Manufacturers in India

3. Money and Investment

Every enterprise and business requires initial capital to establish it. There are several legal steps that you have to take before starting a flow mill. It requires proper legal documentation, licensing, and machines. It is essential that you make a list of all the expenses and roughly estimate the capital required for the business. An investment plan will help you overcome the difficulties and also in the decision-making process. You can purchase an aata chakki for a business price of Rs. 3-4 lakhs. Once you make the estimates and know what you need for your business, you can go ahead and plan your finances and capital. You might have to take loans from banks or relatives to raise the amount needed for business.

Also Read: Best Atta Brands In India

4. Machinery

The next step is to decide the machinery you might need for your business. There are different types of machines that are used in the flour mill business. Do your market research, list some of the best machine options, narrow down your list and select the most affordable and effective machinery for your flour mill business. You can opt for Reindeer machinery as it is the most effective and affordable flour milling option in the country. It is durable for large-scale businesses. Many wholesalers suppliers sell this type of machinery at a lower rate.

5. Legal Permits

Legal permits are essential for starting a flour mill business. You cannot run a business without having a legal permit from the government. It is illegal to run a business without licenses and a legal permit. You have to comply with the government rules and regulations. You can check the documents required online to start an aata chakki business. Once you have all the documents, get your business licensed. You need so many different types of licenses for the business, such as Company Registration, GST registration, SSI registration, AGMARK, BIS, MSME, Trademark, etc. After licensing the business from an official government body, you are all set to open your flour mill business.

Thus, to conclude, we can say that the flour mill business is a profitable business to start in the country. It is a good investment business that you can start in your hometown. The demand for flour increases every day, so it is a good opportunity to start a business that will never go low in demand. You can use your flour mill for several purposes, like milling the different raw spices, maize, etc. It will help you earn extra income from the same business. To increase your sales, you can advertise your business using social media and other promotion platforms.

Also Read:

1) How to start a kitchen supplies wholesale business?
2) How to Start Your Own Clothing Line Business in India?
3) How to Start a Jewellery Making Business: The Ultimate Guide
4) Best Rice Brands In India
5) Best Salt Brands in India
6) OkCredit: All you need to know about OkCredit & how it works.

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FAQs

Q. How much does it cost to start a flour mill factory?

Ans. The cost of the flour mill factory depends on several factors. The main factor is the size of the business. If you plan to start a small size flour mill, it requires around INR 7-9 lakhs.  The cost of a large-scale flour mill factory ranges between INR 10 to 20 lakhs. It also depends on the type of machinery and other equipment required for the business. The cost changes as you acquire different types of machinery.

Q. What types of licenses do I need for the flour mill business?

Ans. Flour mill business is considered a food production business. So, it requires a large number of licenses to run the business smoothly. The licenses include Company Registration, GST registration, Trade License, Trademark Registration, BIS certification, State Pollution Control Board Certificate (if required), Food Safety and Standard Authority of India License, MSME registration, SSI registration, AGMARK, IEC code, etc. All these certifications are necessary to start the business.

Q. Is the flour mill business profitable?

Ans. The flour mill business is profitable. It is because of the demand and daily consumption of an individual. Flour is used for several purposes, like making bread, biscuits, cake, and other bakery-related items. You can also mill the spices in the same machines and sell them separately to earn more profits. However, several factors determine the profits, like proper machinery, location, size of the business, etc.