How To Start Jam Manufacturing Plant In India?

Table of Contents:

1. Jam Manufacturing Plant Business Plan

2. Is Jam Manufacturing Plant A Profitable Business?

3. How To Start A Jam Manufacturing Plant In India?

Final Takeaway

1. Jam Manufacturing Plant Business Plan

Jam making is counted among the most lucrative businesses in India. The best thing about this business is that it requires low investment comparatively. Additionally, you can consider the subsidies and allowances offered by the government for the food processing sector. More so, the growing customer demands have opened multiple opportunities for both private and foreign players.

With India being the 2nd largest global producer of fruits and vegetables, people have the advantage of starting a jam business for almost every variety of vegetables and fruits. All it takes is the right strategy and expert planning to get started with fruit jam manufacturing. Read on to learn more about it.

2. Is Jam Manufacturing Plant A Profitable Business?

The prime consumers of jams include eateries, restaurants, and households. The net production of vegetables and fruits in India is over 14 lakh tons approximately. Out of which, processed fruit pulp covers around 25 per cent, while jams account for 10 per cent.

Going by the statistics, it would be safe to say that the demand for processed vegetable and fruit products is sure to grow in the coming years. Hence, you can expect good returns from the jam-making business. Another primary reason is the changed food habits of people. Today, more and more individuals have started to consume easy snack items like bread, leading to increased consumption of spreads like jam.

3. How To Start A Jam Manufacturing Plant In India?

If you are interested in starting a manufacturing plant, you should first gather all the necessary details about raw materials, cost, machinery, etc. Here is all you need to know about fruit jam production.

1- Market Analysis

Jam is one of the few food products that have an ever-growing market. The food item covers a large part of the food market, and the percentage continues to grow. Its matchless palatability has made it highly popular among restaurants and households alike. Even most eateries and clubs have started to facilitate their customers with smart use of jams in their creations. You'll find that all major departmental and grocery stores sell jams because of its growing popularity in the Indian market. Before you start jam production, it is essential to conduct extensive market analysis for the specific area you intend to start your business.

Starting from jam variety to jam price gather all the necessary details related to jam production. It will give a better idea of the current market scenario and potential customers. Use this information to build efficient strategies and plans for the business.

2- Calculate the Cost of Raw Materials and Machinery

It is the next vital factor to consider when starting a jam business. Know that the cost of the ingredients is not the same in all regions. Also, the cost of fruits varies according to their quality. Season and supply are also crucial aspects that affect fruit's price. For example, the cost of apples is usually low during colder months comparatively. Similarly, Guava is cheaply available, particularly in summers, which means it is costlier during the winters.

The cost of fruits ultimately affects the jammed price. Hence, it would be best to calculate the total production cost, including the investment amount needed for buying tools and machines. People that have space for setting up a jam factory can start the business within INR 40,000. However, if you don't have adequate money to set up the manufacturing unit, you may need to reach financial institutions for credit.

3- Create a Distribution Plan

A proper marketing plan is mandatory for the project's success. You may need to consider advertisements, special discounts, referrals, and other similar forms of marketing campaigns to popularise your product(s) among the prospective audience. Smart-packaging can also be added to the marketing plan for enticing the customers.

Make sure to build an effective distribution for your product so that you can cover more areas for supply. High area coverage means high sales of jam. Understand the different modes of distributions used by the existing market players. It will help you plan your distribution system expertly. Go for tried and tested distribution channels initially (become a risk-taker once your business is established). One of the proven ways of gaining market share is keeping a reasonable jam price (lower than the competitor's product) and enhancing distributor/retailer margins. Leverage social media platforms to spread the word about your product. Additionally, introduce your products through newspapers and other media.

4- Register Your Business and Acquire the License

You'll require the registration number and license of your small-scale jam business to start the manufacturing process. The organisation can be registered as a sole proprietorship, Private limited, Limited Liability Partnership, or Limited company. Additionally, you'll need to check with the officials for jam business permissions. Get the Trade License (as required according to the location).

Individuals may place their registration request online as well. Additionally, you'll require FSSAI registration to start your fruit jam business in India. Presently, GSTIN is another essential concern to be considered for establishing a business in the country. Plus, get a "No Objection Certificate" from the Pollution Control Board of your state.

5- Find Suitable Location to Set-up the Jam Producing Unit

Selection of the right location is one of the crucial aspects of establishing fruit jam manufacturing units. Plus, individuals have to take the utilities (such as electricity, water supply, etc.) to run the company. Consider the production volume and unit size when deciding the location for the project. If you want to start small, then a 1000 sq. ft. area would be sufficient. Look for a site that is within your budget.

6- Tie-up with Jam Manufacturing Machinery and Raw Materials Suppliers

Jam production requires a Pulper Machine, Juice Extractor, Slicing Machine, Baby Boiler, Grinder, Bottle Filling Machine, Bottle Washing Machine, Cap Sealing Equipment, Weighing Scales, Stirrers, Hand Gloves, SS Utensils, Burner, Testing Equipment, and other equipment/tools. Reach out to a reliable supplier to source these machinery.

To get started with the jam's commercial manufacturing individuals will require raw materials such as food colours, fruits, pectin, sugar, preservatives, additives, etc. You may either source these materials from a single seller or procure the items from different sellers. Additionally, arrange the packaging items, including cardboard boxes, jars, labels, pouches, adhesive tapes, etc. Get prices of all the things from different suppliers and compare before placing your order.

7- Marketing Your Fruit Jam Product

Don’t be over-excited when marketing your product. It’s not wise to concentrate on a large area (especially if it's a small business); chances are you may fail to handle large bulk orders. Launch your product in the local market. Deal with the local shop owners to test the response of the public. If your jam is good, it is evident that you'll get good orders from the consumers. Besides, build an online platform to sell the product. Take well-planned steps for expansion to minimise the risk.

After establishing your brand in the local market, you may extend your market reach and target many potential audiences. Once your fruit jam starts getting success at the state level, you may eye on national and international markets. Also, add restaurants and cafes to your target audience list.

Final Takeaway

India's diversified soil type, agro-climate, and adequate rainfall give it a considerable advantage in horticulture. It is one of the primary reasons for the country's high-value fruits production. Hence, jam producers have the benefit of choosing from a wide range of fruits for their business. Jam production is indeed one of the easiest and high-revenue generating businesses in the food industry. You may operate it part seasonally, all-year-round, or part-time. The best part is that business owners will have the advantage of running other businesses such as sauce and pickles production using their jam making machinery. Be sure to never compromise on the quality of your products for the continuous growth of your business.

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4) What are the Differences Between Wholesale, Retail, & Manufacturing Businesses?