How To Start A Bakery Business In India? Best Business In India In 2022

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Last Updated on January 26, 2022 by Kshitij

bakery business in India
Bakery business in India

Bakery Business Idea in India in 2022

Ever wanted a business of your own, then you are at the correct place.

India is a country of youth, experience, and ideas. India has such a great number of youth who are entrepreneurs and in the process of becoming one. Every young mind has some of the other ideas once in a while to start a business. Indians depend much on business rather than jobs. This has passed on from generation to generation. And many such businesses are so successful and famous in the world. From those businesses, one such business is Bakery Business in India!

Bakery business is one of the most popular businesses in India. Along with being popular, it’s a profitable business in India in 2022. Every street in a crowded colony or at every intersection there is a small bakery shop. Every foodie has a special corner left for cakes, cupcakes, biscuits, cookies, pastries, patties, and many things, the list will never end. There are many bakery business ideas in India, and it has been seen that it has a great demand in the market, and is very profitable also because people are always crazy about bakery products.

Come on pal, Let’s read about how you can start with this business idea in India in detail. 

Scale on which you can start a bakery business in India

Bakeries in India are very popular but there are different levels on which you can start with this business according to the budget, location, accessibility, and convenience. Let’s understand them one by one.

Wholesale or Bakery Factory

A wholesale or a factory for bakery business provides items, such as bread, biscuits, chocolates, anything required to other retailers and bakery stores, it is not necessary to produce all the things at once, you can start with one item only, like bread only by this it would be budget-friendly also initially and then if you get profit on a large scale you can start producing all. It has the machinery to produce, the raw material to process, and sells it to a particular bakery or to different stores at the wholesale price.

Bakery Stores

These are the stores which you will find in every locality. These are the shops from where you usually purchase your daily bakery products. No matter how old or new the store is, people will always come. Now, these stores either have their own small factory for producing the items or they give orders to other factories for their products and items.

Bakery from Home

Home is the first place where everything starts from. A woman with responsibilities, and a man with limited capital, starts business from their home and with hard work and sales, shifts on the store. One can start a bakery business in 2022 from home, and check whether it’s the right business for you or not, if you find it suitable to you and it’s successful then with time and sales shift it on a large scale, say open a store. Successfully, you can start a baking business from home.

How to start a cafe.

Cafe culture in India is very promisingly booming. Youth is the customer and they are only the business owners of cafes. A cafe is a place where bakery products are the most popular. Whether for a cup of coffee or after a movie, people usually go to cafes. And from a business point of view, In this field, business grows and sales are good accordingly with right strategies and marketing.

Online Bakery Business in India

The world is evolving with its speed, so is the internet. Online business is the trend that takes a business to its height by advertisements, strategies, and results in increased sales. One can start an online business of bakery products and sell them online. They can start their business from an Instagram page and slowly with time can move to different platforms. Online reaches people and increases sales.

bakery products
Bakery products

Some of the popular items which are ever demanding and Indian people can never say no to them are;

  • Baked Samosa/ Puffs
  • Cakes and Pastries
  • Bread and Buns
  • Baked Cookies and Biscuits
  • Baked Chocolates
  • Ice Cream Raw Material
  • Fruit Cakes
  • Snakes
  • Muffins and Cupcakes
  • Rusk Toasts
  • Candies and Toffees

There can be many items you can sell, you can always try and make new recipes for your store, which can become your unique selling product on which you can promote your store also.

The Demand of Starting A Bakery Business In India in 2022

Demand sets the business flag up in the air by the wind of supply. Demand is made by consumers who are willing to pay the price of items that they want to consume. 

As the lockdown came without an invitation, people grounded their taste for homemade food. And YouTube was the new best friend of people. People were Cooks, Chefs, and Master of baked items. But who can’t cook and make such delicious items, craved it? That’s where the demand arises. Many small bakery businesses from home were started. With time demand increased because of quality products and love for the food.  

To date, those businesses are in demand and more new bakeries are set up because of demand. A bakery produces items to the preference of customers. Whether it’s about cakes or other items, everything is customized which gives another reason for increased demand.

Benefits Of Starting A Bakery Business In India 

The benefits of opening a bakery business in India are very practical. The cost requires to open a Bakery Store is nearly 10-15 Lakhs(excluding the land cost), and if one starts at home the cost will be 10000- 100000 Rs. The first is its demand. Bakery products such as bread, buns, toasts are comfort food and are required every other day to consume. One of the most famous bakery products is Cake. Every happy occasion requires cakes and pastries. Whether it’s birthdays or anniversaries, the cake business is never going out of style. 

Other than demand, one of the amazing benefits of the bakery business is that you can start it from home on a very small scale. Some people have limited capital to invest and some want to try whether this business is right for them or not. So it requires less for starting this business from home. 

This industry has many more things to offer as it’s one of the biggest industries in India. The Indian market stood at a value of nearly USD 7.60 billion in 2020. And the market is estimated to grow at a CAGR of 8.5% between 2021 to 2026. This is going to evolve much more with time.

Competition In Starting A Bakery Business In India

As the demand for bakery products increases, the businessmen are trying to meet the demand to its supply with expectations of their profit. Because of this, many businesses have taken place in the following sectors. So the competitors are many with different strategies. Let’s find out the various reason for competition;

Local business brands

In every locality in cities and colonies, there are a number of bakery shops situated. Someone provides items at less price, whereas someone’s quality is good with high prices. But with an increase in demand, there is going to be an increase in supply too. 

An increasing number of homemade businesses

With an increased number of bakeries in the locality, there are people who are commencing businesses from home and providing different items to the customers. 

Competition’s main weapon is advertisement and strategies. For example, Giving a muffin free with a purchase of a cake. It’s a strategy to attract customers and people who will purchase the same will to mouth publicity of business which is a part of the advertisement. 

Quality and Variety

With high prices, businesses are able to attract customers through their quality and variety. No one wants to eat the same items for weeks and months. Businesses provide variety with quality which increases sales.

Raw Material Required To Start A Bakery Business In India

Raw materials are a very important requirement for starting a bakery business in India. There are many things that differ in the raw material of this business because of their scale. One can calculate the requirement accordingly. The raw material is;

  1. Wheat
  2. Flour
  3. Sugar
  4. Eggs
  5. Ghee
  6. Milk powder
  7. Yeast
  8. Salt
  9. Assorted fruits
  10. Baking powder
  11. Caramel color
  12. Vanilla powder
  13. Butter
  14. Cream
  15. Water
  16. Calcium propionate
  17. Coconut powder
  18. Custard powder
  19. Pepper powder
  20. Icing sugar

These are the raw materials required for making bakery products. There can be many more according to different items but these are the basics one should have for starting a bakery business in India.

Equipment And Machinery Required For Starting A Bakery Business In India

Equipment and machinery in starting a bakery business can be a little costly. Because of some specific machine requirements, it can be a little high on the business. Equipment and machines required are;

  1. Planetary mixers
  2. Oven
  3. Deep fridge
  4. Cooling fridge
  5. Working table
  6. Gas stove
  7. Cylinders
  8. Storage utensils
  9. Cake tins
  10. Dredger and Shaker
  11. Cooling racks
  12. Icing smoother
  13. Food mixers
  14. Baking parchment
  15. Measuring spoons
  16. Measuring jugs
  17. Mixing bowls
  18. Palette knife
  19. Scales
  20. Zester

Planning And Initial Cost Required To Start A Bakery Business In India

The planning will take place in the requirements which are the main factors or say pillars of the business. And those pillars are;

Land (Area)

The land is the main factor and monetarily high factor of business. First, the expense of land is written in the expense book then other expenses start. If you are going to start a business either you have land or purchase one, or the other thing you can do is rent one. The area should be sufficient according to the scale of your business where your machines and other stuff can perfectly fit.

If you are starting a retail bakery business in your locality, make sure you should have enough space for every activity. Like if you are exporting bakery products from outside then you should have a great interior for customers to sit and eat. Or if you are making items by yourself and selling them from your bakery then you should have separate space for both at one place, bakery and the place where all the baking process will take place. 

Electricity

Electricity is another costlier factor. All the machinery, big refrigerators, mixers will run through high power of electricity. According to the setup and power supply should be there.

Manpower

Manpower in the bakeries requires 1 head chef, 1 Chef De Partie, 2-3 Helpers, 2 Service boys. These will be your staff. Without them, you can’t stand a bakery business. 

Packaging and Advertising

Packing is one of the ‘P’ of marketing out of four. Packaging of the bakery product should have your name label tag on it, it is the best source of advertising the business. And packaging should be in such a creative way that people can remember your place.

Final Cost to start a bakery

If you are starting your business on a small scale the cost will be around 4-5 Lakhs and if you are starting it on a large scale the cost will be around 14-15 lakhs including staff salaries, land rent, electricity, etc.

If you are starting a bakery business from home;

  1. The area will be your home to commence all the activity.
  2. Electricity will be a little high and will be added to your monthly electricity bill.
  3. Manpower is totally dependent on you. If you feel like keeping a helper you can keep that according to your requirement.
  4. It will be great if you invest a little in packaging and advertising to grow your business fast.
  5. The final cost of starting a bakery business from home is dependent on the owner. 

The legal document required for starting a bakery business in India are;

  • FSSAI license
  • GST Registration
  • Local municipal corporation health license
  • Fire license
  • Police eating house license

Things To Remember While Starting A Bakery Business In India

  1. Land should be in a locality where customers can easily come in their leisure time. The area should be big enough for the crowd to manage on its own. 
  1. Bakery items are expected to be fresh and of good quality. Always check on your products. Do not compromise on quality. And the store should be filled with a variety of products every time.
  1. One should keep an eye on the market and competitors. What kind of items they are selling, strategies used by them, and service they are providing, etc. This is very important to survive in the market. 
  1. Advertisement and packing are the basis of business like a bakery in India. Spread the word on social media. Make a website. Creative posts and memes are the best methods for engagement on your website.
  1. Before starting, Do a SWOT analysis, Industry analysis, Financial analysis to understand what kind of business you are getting in. And then make decisions accordingly.  

Risk In Starting a Bakery Business In India

Local Competitors

As bakeries are so common in cities, there is huge competition. To win this competition you have to plan strategies, work on advertisement and packaging, on the staff and taste. 

Locality

Locality causes a lot to a business if it’s not in a good place. A customer purchases from the store which is in his reach. Businesses earn 30% extra if it’s in the main location of a particular city. 

Dynamic Quality

If you change the quality of your product again and again due to any reason, the customer will get detached. So Keep a particularly high-quality product with the owner’s margin. 

Expiration

Bakery items are expected to expire at a very fast stage. Do not store much, make items fresh each day. If you store it, it will not be fresh and can expire fastly. 

Profit In Starting A Bakery Business In India in 2022

The bakery business in India is booming, especially among the youth. If one starts this business one can earn 60,000 to 1.2 lakhs in a month after charging all the expenses. 

The bakery Business in India is profitable because of the eating habits of Indians. The most popular bakery items are biscuits and bread. And India consumes around 1.5kg to 1.7kg of bread per capita in various zones of the country whereas the consumption of biscuits per capita is 2.1 kg.

With great consumption and affordability, this business will increase with time and result in increased sales. 

For more ideas about promoting your food businesses in India please visit here. If you like this post then do share. And if you want to get updated then don’t forget to subscribe.

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