Spices - One of the Best Selling Products Worldwide

India is one of the preferred destinations when it comes to buying a variety of spices, leading to a huge amount of producers and exporters. Different states of India offering a huge platform to raise a variety of spices has made it a great opening to the entrepreneurs worldwide to take advantage of this opportunity. NPCS suggests that spices such as black pepper, cardamom, ginger, turmeric, chillies, garlic, onion etc is surely promising when it comes to establishing a business especially in India where no dish is complete without usage of varied spices. Even different occasions come with a ritual of various food making involving a variety of spices. Though spices are helpful in many ways, some of them may cause allergies depending on climate condition and sensitivity in different people, thus, thorough knowledge with the help of research is required. Because of being the only country to produce huge no. of spices, demands of Indian spices keep on increasing worldwide.

How To Initiate A Spice Business?

There are certain things to be considered while initiating the business of spice, such as money, registration, process of making and packaging. Though profitable, certain norms are to be followed. Here are some of the steps to take a look at:

1. Cost Consideration

India, being one of the biggest spice producing countries, has more than 60 types of spices with a consistent future. Where the basic investment includes 60, 000 to 1 Lakh, the total area needed will be 250 Sq yard. The expected percentage of profit is to be 50 to 70 percent.

Related Books:- Spices And Condiments Cultivation

2. Other requirements

Considering the type of business, registration of firms should be made along with GST registration which is vital for any firm to be made. Also, AGMARK is suggested to be obtained as a certification. Equipment such as a grinding machine, packing machine, compressor, and roaster are must.

3. Manufacturing process

After removing the impurities manually, the spices are washed thoroughly and then dried in sunlight in order to avoid bacteria then they are roasted to get an aroma and be completely dried. Later they are given a powder form by the process of grinding and to a final step, it is either packaged in a zip lock pouch or sealed in boxes.

4. Branding and Marketing

Once you are ready with a precise name of a brand and a punch line along with it, now is the time to use certain social media platforms for its advertisements. According to NPCS, many entrepreneurs are being known with their businesses majorly with the help of proper marketing. If it's taken care of, then there is no stoppage to a rising company. Platforms, for instance Instagram, Twitter, Facebook, YouTube, LinkedIn are always displaying some advertisements which subconsciously engage people’s head with its purchase. It is an indirect method of selling and very effective in the modern lifestyle as almost every individual including all the ages are somewhere tempted towards shopping as per their views online.

What Profit It Makes As A Business?

India, also known as the land of spices, is always known by its usage in various dishes. People from around the world tend to taste the flavour of indian spices, making it a highly profitable place to invest in. It's one of the reasons for our capital growth. As per the research by NPCS, around 4135 crores were made on export of indian spices such as chilli and garlic to China and America. Hence, its never ending business when it comes to spices.

Conclusion

To deduce, if commenced with spice business, entrepreneurs have about nothing to lose but to gain a lot of never decreasing profit due to investing in a necessary product which is a must in any cuisine. For more details to invest in a spice business, kindly reach out to our book, Handbook on Spices. It will help the new startups to grow and the previous one to expand.

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Our Market Survey cum Detailed Techno Economic Feasibility Report Contains following information:

Introduction

Project Introduction
Project Objective and Strategy
Concise History of the Product
Properties
BIS (Bureau of Indian Standards) Provision & Specification
Uses & Applications

Market Study and Assessment

Current Indian Market Scenario
Present Market Demand and Supply
Estimated Future Market Demand and Forecast
Statistics of Import & Export
Names & Addresses of Existing Units (Present Players)
Market Opportunity

Raw Material

List of Raw Materials
Properties of Raw Materials
Prescribed Quality of Raw Materials
List of Suppliers and Manufacturers

Personnel (Manpower) Requirements

Requirement of Staff & Labor (Skilled and Unskilled) Managerial, Technical, Office Staff and Marketing Personnel

Plant and Machinery

List of Plant & Machinery
Miscellaneous Items
Appliances & Equipments
Laboratory Equipments & Accessories
Electrification
Electric Load & Water
Maintenance Cost
Sources of Plant & Machinery (Suppliers and Manufacturers)

Manufacturing Process and Formulations

Detailed Process of Manufacture with Formulation
Packaging Required
Process Flow Sheet Diagram

Infrastructure and Utilities

Project Location
Requirement of Land Area
Rates of the Land
Built Up Area
Construction Schedule
Plant Layout and Requirement of Utilities

Project at a Glance

Assumptions for Profitability workings	Plant Economics
Production Schedule
Land & Building Factory Land & Building Site Development Expenses
Plant & Machinery Indigenous Machineries Other Machineries (Miscellaneous, Laboratory etc.)
Other Fixed Assets Furniture & Fixtures Pre-operative and Preliminary Expenses Technical Knowhow Provision of Contingencies
Working Capital Requirement Per Month Raw Material Packing Material Lab & ETP Chemical Cost Consumable Store
Overheads Required Per Month And Per Annum Utilities & Overheads (Power, Water and Fuel Expenses etc.) Royalty and Other Charges Selling and Distribution Expenses
Salary and Wages	Turnover Per Annum
Share Capital Equity Capital Preference Share Capital
Annexure 1:: Cost of Project and Means of Finance
Annexure 2:: Profitability and Net Cash Accruals Revenue/Income/Realisation Expenses/Cost of Products/Services/Items Gross Profit Financial Charges Total Cost of Sales Net Profit After Taxes Net Cash Accruals
Annexure 3 :: Assessment of Working Capital requirements Current Assets Gross Working. Capital Current Liabilities Net Working Capital Working Note for Calculation of Work-in-process
Annexure 4 :: Sources and Disposition of Funds
Annexure 5 :: Projected Balance Sheets ROI (Average of Fixed Assets) RONW (Average of Share Capital) ROI (Average of Total Assets)
Annexure 6 :: Profitability ratios D.S.C.R Earnings Per Share (EPS) Debt Equity Ratio
Annexure 7 :: Break-Even Analysis Variable Cost & Expenses Semi-Var./Semi-Fixed Exp. Profit Volume Ratio (PVR) Fixed Expenses / Cost B.E.P
Annexure 8 to 11:: Sensitivity Analysis-Price/Volume Resultant N.P.B.T Resultant D.S.C.R Resultant PV Ratio Resultant DER Resultant ROI Resultant BEP
Annexure 12 :: Shareholding Pattern and Stake Status Equity Capital Preference Share Capital
Annexure 13 :: Quantitative Details-Output/Sales/Stocks Determined Capacity P.A of Products/Services Achievable Efficiency/Yield % of Products/Services/Items Net Usable Load/Capacity of Products/Services/Items Expected Sales/ Revenue/ Income of Products/ Services/ Items
Annexure 14 :: Product wise domestic Sales Realisation	Annexure 15 :: Total Raw Material Cost
Annexure 16 :: Raw Material Cost per unit	Annexure 17 :: Total Lab & ETP Chemical Cost
Annexure 18 :: Consumables, Store etc.,	Annexure 19 :: Packing Material Cost
Annexure 20 :: Packing Material Cost Per Unit	Annexure 21 :: Employees Expenses
Annexure 22 :: Fuel Expenses	Annexure 23 :: Power/Electricity Expenses
Annexure 24 :: Royalty & Other Charges	Annexure 25 :: Repairs & Maintenance Exp.
Annexure 26 :: Other Mfg. Expenses	Annexure 27 :: Administration Expenses
Annexure 28 :: Selling Expenses	Annexure 29 :: Depreciation Charges – as per Books (Total)
Annexure 30 :: Depreciation Charges – as per Books (P & M)	Annexure 31 :: Depreciation Charges - As per IT Act WDV (Total)
Annexure 32 :: Depreciation Charges - As per IT Act WDV (P & M)	Annexure 33 :: Interest and Repayment - Term Loans
Annexure 34 :: Tax on Profits	Annexure 35 ::Projected Pay-Back Period And IRR