How to Start Chocolate Making Business in India in 2021
The word ‘Chocolate’ instantly makes anyone’s mouth watery with excitement and want. It is after all one of the sweetest items that anyone can experience. The Chocolate business has been emerging with many new start-ups dedicated to this particular field. Let us understand the growth, profit, uses, and overview of the Chocolate Making business in India.
In the annual report of 2016, it was stated that more than 226 thousand tonnes of Chocolate were being consumed by the majority of people. This particular figure is enough to understand the potential of the Chocolate Making Business, especially in India.
India is a country that has its calendar full of festivals in each and every month. For Indians, celebrations mean one thing, and that is sweets and chocolates. Be it Diwali, or Raksha Bandhan, People have a tendency to gift chocolates to each other, this further explains the scope of Chocolate making business.
With so many different types of Chocolate varieties being created and accepted widely in many states, there is a high chance of profit and growth in this industry, irrespective of the business being well-established or a Start-up.
Already sounds enticing for you? This is just the beginning, let us understand about this business at a deeper level.
1. License Required for Chocolate Business
A. GST Registration
B. Firm Registration
C. Trade License
D. Food Safety and Standard Authority of India (FSSAI)
E. IEC Code
F. Trade Mark
2. Investment required
The total investment that would be required for starting your Chocolate Making Business in India is as follows.
|Small Scale (outlet based)||3 to 6 lakhs|
|Large Scale (Wholesale based)||20 to 40 lakhs|
3. Expected Profits that can be Made.
An average amount of Profit that can be earned by individuals doing chocolate business on a monthly basis would go around INR 30000 to 1 lakh per month.
4. Target Consumers
A. Supermarkets: Supermarkets are an ideal place where you can supply your chocolates and earn profits.
B. Specialist Retailers: Some Retailers focus on only a few lines of product, however, most of them focus on Chocolate more. You can approach them.
C. Hypermarkets: Just an upgradation of Supermarkets is Hypermarkets. They have a wide range of products, different types of chocolates being one of the categories.
D. Online Retail Stores: Many Online stores deal into a wide range of products, you can offer your different forms of chocolates and target them for business.
E: Convenience store: A few of the smaller shops, that would stock different forms of chocolate items, they can be on your target list as well.
5. Raw Materials required
Just like any other business, you’d require some raw materials, that would act as a base for your product quality. The following are the various types of raw materials that are required for Chocolate Making business.
A. Dairy Products
B. Permitted Artificial Flavors
D. Food Ingredients
6. Equipment Required
Along with raw materials, you would also require various equipment that would help you to process the chocolates further at each stage. The Equipment ranges from various start to end processes.
B. Chocolate Melter’s
E. Bean Bar Equipment
F. Cheese Waxing Machines
G. Chocolate Refrigeration
7. Manpower Required
It is not possible for a single person to handle all the processes of the Chocolate Making Business by himself or herself. You would require manpower, and perhaps such people who have some knowledge or experience with the same.
A. The manpower required to set up a retail or outlets-based Chocolate making business would be around; 2 skilled workers and 1 non-skilled worker.
B. The manpower required for a wholesale based dry fruit business would be; 5 to 6 workers at the most.
8. Growth of Chocolate Making Business
So far, after understanding the roots of the Chocolate Making business, or rather the foundations that are necessary to run a successful Chocolate Making business is clear, let us talk about the growth that this industry is achieving over the years.
By having various reports at hand from different organizations the growth of this industry is promising and upwards,
According to the report by a well-known company called, Techsci Research, the Indian Chocolate Market is expected to grow at CAGR (Compound Annual Growth Rate) over 16% to cross $ 3.3 billion by the year 2023.
Another notable example would be a report published by the Business Wire, the Indian Chocolate Market is expected to cross $1833.28 million by the end of 2024.
Last but not the least, we also have one more report to help us understand the gravity of the growth this industry can offer, it is a report by 6Wresearch, the Indian Chocolate Market is expected to grow at CAGR over 19% from 2017 to 2023.
9. Profit Margin
In Chocolate Making Business, with efficient product quality and market price, you can expect to keep a profit margin between 7% to 14%.
10. Some Useful tips for starting your Business.
A. Always be sure of the product line that you wish to deal in. As we have many types of chocolates available, such as Dark chocolate, milk chocolate, unsweetened chocolate, and white chocolate. As a beginner, you must not rush right away and select all the product lines together.
B. In the initial stages, the best way to market and develop some users for your chocolate brand would be to off0er free samples to your known people or potential customers. In that manner, you would receive good and bad feedbacks about your product, and you can make changes accordingly while going all out.
C. Another important suggestion for marketing would be to distribute as many free samples as possible at targeted places, such as schools, where you would have various kids itching to taste your chocolates. You can also use social media for your aid where you can offer good discounts for chocolates distributed through the festive seasons, and so on.