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Blogs - Starting a Noodle Making Business in India – In Trend

Starting a Noodle Making Business in India – In Trend

Avatar for Aatmnirbhar Sena
Aatmnirbhar Sena
Nov 13, 2020
Business
Starting a Noodle Making Business in India – In Trend

Noodle making business in India has the right market throughout the country. Small-scale industries play an essential role in the country’s economic development as it increases the employment rate and improves the country’s growth. Small-scale industries help the Government in growing infrastructures, reducing poverty, setting up manufacturing industries, and several other developments.

About 60-70% of innovation in India comes from the small scale industries and cottage industries. Many of the big businesses today started small and then fostered into big companies. These industries facilitate women’s growth, bring balanced regional development, mobilize local resources, promote exports, complement large scale industries, meet consumer demands, and develop a class of entrepreneurship in the society. This industry is a sector in which the production of goods is the component of society. 

Noodle Making Business in India

A small-scale noodle making business in India is the profitable venture of the era because of its versatility, composition, low cost, and ease of preparing it at the consumer’s end. Depending on the local interest, you can also manufacture instant noodles, macaroni, spaghetti, pasta, etc. This way, the business has diversified opportunities in the expansion.

Noodles are the most popular and always in demand kind of item in India. The inherent blandness makes them suitable for different types of edible items such as sauces, topping, flavorings, etc. enabling vermicelli, noodles, pasta to be used as the basis of different dishes with infinite variations. Almost every household use noodles in their day to day life for regular snacking. Apart from this, restaurants, cafes, food chains, canteens, street food stalls, etc. are frequently buying noodles and preparing them in different forms. Also, the product has an immeasurable export potential in the Asia-pacific region.

Though its consumption in India is low, its production has increased in the recent past years. India’s instant noodle market is forecasted to grow at a CAGR of 5.6% during the forecast period. Cup/Bowl noodles are also gaining high popularity among the consumers due to its ease of handling and ready-to-eat factor. 

Factors to Consider for Noodle Making Business in India

Before starting with noodle making business in India, several important factors need to be considered on a priority basis that shall include:

  • Preparation of the Project report– Before starting any business, the project report’s development is the need of the hour. It is advisable to consult the industry expert who would further guide in preparing the project report. The project report consists of various jobs/exercises such as procurement of technical know-how, selection of site, registration, purchase of machinery and equipment, recruiting of the staff, etc. To implement the project in less time, the slack period is curtailed to the minimum possible. Here, you can find a sample cost calculation of noodle manufacturing plant:

FIXED COST

  1. Land & building construction- Rs. 10,000 monthly
  2. Machinery equipment- 14,60,000
  3. Pre-operative expenses- 35,000

Total Fixed cost is 15, 05,000 

WORKING COST

  1. Staff and labor- 68,500 monthly
  2. Raw materials- 4,11,000 monthly
  3. Utilities-14,000 monthly
  4. Other expenditures-36,000 monthly

Total recurring expenditure is 5, 29,500
Total working capital for three months is 15, 88,500
Therefore, total project costs come down to 30, 93,500            

You can reduce the cost by buying goods in bulk or using your own space for the manufacturing process instead of a rented one. The price may differ depending upon the unit size.

  • Arranging for project cost–After preparing the project, one needs to arrange for the finance. There are several Govt. subsidy schemes available for the small scale industries. In case you don’t have sufficient capital in hand, you can apply either for a project loan or a specific loan like machinery hypothecation or overdraft facility, etc.

Government Schemes for Small Scale Industries

Several Government schemes supporting small scale industries include:

  • Aatmnirbhar Bharat Scheme– Under this scheme, free collateral loan is provided to MSMEs and other small scale industries, which is up to 3 crore rupees.
  • MSME business loans in 59 minutes- The loans under this scheme are given for financial assistance and boosting MSME growth. Both new and existing businesses can employ the program for financial assistance/aid up to 1crore.
  • MUDRA loans– Under this scheme, GOI provides business finance to small/micro business units.
  • CGMSE Scheme-This was launched in the year 2000 as a monetary support scheme for small enterprises. It offers collateral-free credit for new and existing business units that satisfy its eligibility criteria. The program provides working capital loans to needy enterprises up to 10 lakhs without any collateral.
  • Credit linked capital subsidy scheme: This scheme allows small/micro businesses to enhance their process by financing technological upgradation. Technological upgradation is be related to numerous processes within the organization, such as manufacturing, marketing, supply chain, exports, etc. Like this, there are various other schemes through which Government is continuously supporting the MSMEs.

Business Registration and Licensing

Under this, the organization is registered after payment of specific fees. Specific license and registrations required to carry on noodle making business in India:

  • GST Registration
  • Trade License from Local Municipal Authority.
  • Application to MSME Udyog Adhaar online to avail govt. subsidies and loan benefits
  • BIS certification
  • Trademark Registration
  • FSSAI license 
  • IEC no. to sell the products in foreign countries.

To comply with the above processes and registration, one might need any legal expert who would help in absolute legal compliance to meet industrial standards. 

  • Securing the location & setting up of unit- To start a noodle making business in India, one needs a commercial cover space, either owned or rented. However, if you are beginning afresh, taking rented space is much beneficial and cost-effective.
  • Procuring Noodles manufacturing machinery and raw materials- Next important step is purchasing machinery, equipment, and raw materials to start with the manufacturing process. However, the machinery and equipment should be bought from a reliable supplier, only considering the market price. Similarly, raw materials should be procured, keeping in mind the need and the demand for it. 

Noodle Making Business in India: Manufacturing Business

Noodle Manufacturing Business

The primary manufacturing process of noodle making business in India depends on the presence or absence of gluten. However, you can add a small number of nutrients. First of all, add the water in the extrusion step. And remove it after drying. However, you can sell the wet noodles as a fresh product to the local restaurant owners or food stall owners. The instant noodles are steamed and fried in vegetable oil & have a fat content of about 20%, and added salt and edible gum and shelf life of 6-8 months. Instant noodles are fast cooking, needing 2-3 minutes of boiling or rehydration. You can produce noodles in different sizes. The instant noodle’s flavor and taste are created duringthe rehydration in boiling water by adding a tastemaker of the various characters. 

Take Away

If you are not sure of jumping into noodle making business in India on commercial-scale but want to contribute to the economy, you can try to make noodles from home and understand the immediate market in a better way. Presently, some companies are providing good quality noodles making machine online.

Noodle making business in India does not require sophisticated machinery or processes; hence, it is unnecessary to import the equipment from abroad; thus, it reduces the pressure on the country’s balance of payment. Noodle making business in India can earn good foreign exchange through export processes. The market potential of noodles is increasing day by day. If appropriately planned with proper dedication, you can earn a lot of money from noodle making business in India. Embrace Aatmnirbhar Sena and get assistance regarding initiating the noodle making business in India.

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