Noodle is an exceptionally well-liked food among the Asian staple dishes. Noodles are a common inexpensive dish that is very affordable and has a large global market. The top of the list is China, followed by nations such as India, the US, Indonesia, Korea, the KSA, and so forth. 

Noodles are in high demand throughout the world because of their easy preparation. Noodle making is undoubtedly a profitable industry to enter. Before starting a noodle business, there are some factors that you must consider.    

How is the Noodle Making Business Profitable in India? 

Noodle making is a profitable industry at present time in India due to its adaptability, composition, affordability, and easy preparation for the consumer. You can also manufacture instant noodles, macaroni, spaghetti, pasta, etc., based on local demand. This gives the business a variety of expansion prospects.   

In India, noodles are the most popular dishes and are always in demand. Because of their inherent blandness, they are excellent for a variety of edible products such as sauces, toppings, flavourings, and so on. This makes vermicelli, noodles, and pasta to be used as the basis of various cuisines with unlimited variants. Almost every household consumes noodles on a daily basis as a snack. Aside from that, restaurants, cafes, food chains, canteens, street food stalls, and so on regularly buy noodles and prepare them in various ways. Furthermore, the product has enormous export potential in the Asia-Pacific region.          

Though consumption is low in India, output has surged in recent years. During the forecast period, the Indian instant noodle market is expected to develop at a CAGR of 5.6%. Cup/bowl noodles are also gaining popularity among consumers due to their convenience of use and ready-to-eat nature.

A Guide to Start a Noodles-Making Business

Some steps mentioned below can help you start your noodle business in India smoothly and without any legal issues. Continue reading for detailed information. 

Step 1. Examine the Local Demand and Market Opportunities

Starting a small-scale food business requires analysing the local market. First and foremost, look into the most widely available and popular noodle brands in your area. Examine their packaging, quantity, quality, and price. Learn about their product advertising plan, distribution network, retail sales commission, and so on. All of these will assist you in your decision-making process.

Step 2. Prepare Noodle-making Project Report

You will need to prepare a project report while starting a noodle business. It is recommended that you seek assistance from an industry specialist. You will need to provide general inputs such as machinery costs, raw material costs, and so on to whoever is preparing the project report. The financial portion of project reports is primarily reliant on technical considerations.

You can see here an example of approximate cost calculation for a proposed noodles manufacturing project. 

Fixed Cost

Land & Building Construction = Rs 9,00,000- Rs 9,85,000

Machinery & Equipment = Rs 3,90,000- Rs 4,74,000

Pre-operative Expenses = Rs 30,000- Rs 35,000

Then, approximate cost = Rs 13,20,000- Rs 14,94,000

Working Cost

Staff Salary = Rs 30,500- Rs 35,000

Raw Materials = Rs 1,90,000- Rs 2,00,000

Utilities = Rs 11,000- Rs 12,000

Other Contingent Expenses = Rs 29,000- Rs 30,000

Therefore, Approximate Working Cost (per month) = Rs 2,60,500- Rs 2,77,000

You can minimise the cost if you start the unit in your own or rented space. The price may vary depending on the unit size.

Step 3. Arrange the Project Cost 

After completing the project report, you must arrange for funding. There are various government subsidy programmes available for small-scale industries. So you should check that. If you do not have enough capital, you can apply for a project loan or a specific loan, such as machinery hypothecation or an overdraft facility.

Step 4. Obtain Business Registration and Licence 

First and foremost, register your noodle business. Aside from the proprietorship choice, you must first check the availability of the name. Check the domain availability at the same time.

• Fill out the GST Registration Form.
• Apply to the local Municipal Authority for a Trade License. They will request a fee deposit of a specified amount.
• Online application for MSME Udyog Aadhaar. It is not required. However, it aids in obtaining government subsidies and loans.
• It is necessary to obtain FSSAI registration for the packaged food processing industry. 
• You can also seek BIS certification if you wish to sell your goods across the country. IS: 1485:1976 is the BIS specification for Noodles.
• Obtain trademark registration for your brand name.
• An IEC number is required for international sales.

Step 5. Find the Location and Set up the Unit 

A commercial cover space will be required depending on the size of the unit. In general, an 800 Sq Ft space is sufficient to start a small-scale noodle business. You will require electricity and water. Check the availability of transportation around the location as well.

If you do not have your own location, starting your firm in a rented area is preferable. It lowers the overall project cost, allowing you to invest the savings in business expansion and sales growth.

Step 6. Acquire Noodles Manufacturing Machinery

After finding the location, you must obtain the noodle-making machine. Throughout the country, there are numerous machinery suppliers. So, carefully check the cost of the machine. 

The specific machinery required and the machine cost are determined by the mode of operation (semi-automatic or fully automatic) and unit size. We've included a basic list of machinery requirements here.

• Vertical powder mixer with entire motor
• Noodles manufacturing power working machine with dough mixer blades of various sizes
• 1000 trays made of wood
• Buckets made of plastic with a cap
• Water tape pipeline fittings made of aluminium and galvanised iron
• Water boiler fuel heated
• Weighing machine
• Packaging machine

Step 7. Arrange Raw Materials

Wheat flour, maida, and starch are the primary raw material. You will also need sugar, ordinary salt, spices, garlic, ginger, Sodium Bicarbonate, and other ingredients for the taste and flavour of the noodles.

Pack the noodles in a moisture-proof container. You must also offer a sturdy outer carton box for bulk delivery. As a result, arrange the supplies accordingly.

Step 8. Market Your Product

After packaging, sell the noodles packages to wholesalers, retailers or local grocery stores. Use various social media platforms for promoting your product and use the logo on the noodles packages so that people know about your brand and products.  

Conclusion 

Without a doubt, the noodle-making business is a lucrative one that generates a lot of money. In India, a small-scale noodle production business is a worthwhile endeavour. You can make a variety of items based on local demand, such as egg noodles, macaroni, pasta, vermicelli, and spaghetti. 

If you need any kind of licence and registration for your noodle business, contact Online Legal India and get the necessary documents prepared by our professional to obtain the licence easily.