How to Start Cookies Making Business in India 2021? Investments, Profits, ROI

Table of Contents

How to Start Cookies Making Business in India? 

When we talk about Cookies and biscuits, what is the first item that comes to your mind while sipping tea? That’s right, it is a biscuit or a cookie to munch while enjoying a cup of tea. In India, many people have the habit of munching something complementary along with tea, to make the session crispier. That habit alone explains to us the demand Cookies and biscuits have in the market. 

   Overview 
 
The potential of the Cookies Making Business is wide, even on a global scale. According to a global report made by Mintel International, the Cookies market is valued at around 5.2 Billion Dollars. That is a huge enough number which clearly shows the scope and the growth of Cookies Making business, the Indian market for Cookies also has a higher value. 
 
If we consider talking about the age group and the various choices that each age group has when it comes to Cookies, then that again has some really fancy outcomes for the businesses. From the same report mentioned above, it is said that the age group of 18-44 are the major consumers of Cookies and that’s where most of the demand comes from.  
 
With so many types of Cookies that are available in the market, Businesses have a good number of choices and decisions to make, such as which types of Cookies do they plan on dealing with? Would it be for the age group of 7-14 or the age group of 18-44, and so on. Remember, varieties would always make space for opportunities.  
 
Already sounds like a demand generating business for you? This is just the beginning, let us understand about this business at a deeper level. 

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1. License Required for Cookies Making Business 
 

A. FBA License 
 
B. Firm Registration  
 
C. VAT Registration 
 
D. Bakery Permit 
 
E. Current Bank Account 
 
F. Trade Mark 
 
G. GST Registration 
 
H. Trade License 
 
I. Business Pan Card  

2. Investment required 

 Investment is the first aspect that needs your attention and gives you an exact figure of funds that you would require. The total investment that would be required for starting your Cookies Making Business in India is as follows.  
 

CONTENT  AMOUNT 
Small Scale   20000 to 1 lakh 
Medium Scale   1 to 3 lakhs 

3. Expected Profits that can be Made. 

The expected profits are one of the main aspects that a businessman looks for while opting for a business. It gives the businessman an idea about the expectation that he/she could keep with regard to the industry. An average amount of Profit that can be earned by individuals doing Cookies making business on a monthly basis would go around INR 25000 to 1 lakh per month.  
However, those are the numbers when it comes to new businesses, in a medium-sized Cookies Making business, you can even earn more than 1.4 lakhs per month, if your marketing strategies are good enough.  

 4. Target Consumers  

A. Local shops: What’s a better place to start than your local shops? Local shops would always be ready to join hands with you and aid you in your new business, giving you a small boost. 
 
B. Retailers: Retailers have a variety of products that they would display in their store. Cookies and biscuits are one of the fast-moving products for their store and hence with a good enough profit and price, they would be willing to have a tie up with you. 
 
C. Supermarkets: A store having a variety of products with a huge stock is what a supermarket looks like. It is hard to connect with them as your target audience, but once established it would get you orders in huge stock. 
 
D. Online Retail Stores: With so many E-commerce websites and Retail stores, you can always set up an account and get your products displayed on all the retail stores that are out there. 
 
F. Sweet shops: Aside from supermarkets, you can also target various sweet shops that are situated inside or outside your locality and sell your Cookies in huge stocks with such shops. 
 
G. Cafes and Decent Tea stalls: As we discussed above, cookies and biscuits are products that people use as a complementary item to have tea with. You can approach cafes and good tea stalls to sell your cookies as a complementary product along with their offerings.   

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 the Cookies Making business. 
 
A. Baking Powder 
B. Salt 
C. Sugar 
D. All-Purpose flour 
E. Butter 
F. Milk 
G. Vanilla Essence 
H. Choco Chips 
I. Coconut Powder  

6. Equipment Required 

 Along with raw materials, you would also require various equipment that would help you to process the Cookies further at each stage. The Equipment ranges from various start to end processes. 
 
A. Strainers 
B. Microwave  
C. Water Pots 
D. Milk Pots 
E. Weighing scale 
F. Spoon set 
G. Mixing Bowls 
H. Baking Trays  
I. Scooper 
J. Beater 
K. Cookie making Machines  
L. Multi-row Cookie Packing Machine  

7. Manpower Required 

 Whether it is about skilled workers or about unskilled workers, you would need some manpower to run your business. In most cases, the manufacturing unit would require the skills and the necessary knowledge that would decide the quality of your product 
 
A. For setting up a small scale-based Cookies making business, the necessary manpower that you should go for would be around; 2 to 4 skilled workers. 
 
B. And if we talk about a business that is on a medium-scale level, the required manpower would be; 5 to 8 workers at the most and around 8 to 10 workers in case you set up a factory and Cookie making machines.  

8. Profit Margin 

 In Cookies Making Business, if you stick around with one type of cookies and with less burnt and defective cookies with a good competitive market price, you can expect to keep a profit margin between 25% to 40%.   

9. Some Useful tips for starting your Business. 

 1. Competition: In the Cookie Making Business, there is a huge competition that is already out there in the market. And most of them are businesses that operate on a large-scale and have been established for many years. When dealing in such a competitive market, you need to make sure your quality is the best it could get and you can compete with them by offering various different kinds of cookies. 
 
2. Packaging: While packing your cookies, it is not just the exterior packaging that would matter but even the interior, cookies are fragile and can get easily damaged, hence it is important to ensure the proper packing of your products. In case you have a good production rate and demand for your cookies you should consider buying a vacuum sealing machine for packaging.  

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