Have you ever wondered? It is your consumption patterns and change in the taste, preferences of a product that is likely to decide the market share of a particular product/service industry. This is what has contributions to the growth and expansion of the squash industry in India. Squash is a dilute which is non-fermented and non-alcoholic concentrated syrup used for making beverages. It comes in two variants :
Traditional squashes : These squashes contain the traditional elements which enhances its tastes I.e ginger and elderflower extract.
Flavoured squashes : The flavoured squashes are produced with ingredients using fruits, vegetables, herbs spices etc along with the traditional elements.
Fruit squashes : Made of fruits and healthy preservatives with high nutritional value, fibre etc like lemon, blueberry, strawberries etc.
Vegetable squashes : Made of the goodness of vegetables bound to increase the skin benefits, eye sight anomalies, boost the immune system etc.
The Indian squash industry has been seen competing against the market leaders of the beverage industry like Coca-Cola, Pepsi etc because it has been able modify the benefits and tastes of its drink according to a small yet the most influencing niche of the consumer market. So here’s why it is important for you to get your hands on this expanding niche of the beverage industry.
Market potential and uses
The potential of squash making business in India has been “fruitful” mainly because of the following reasons :
- It is not recently that consumers have shifted their consumption from aerated and carbonated drinks to healthy and low sugary drinks.
- Moreover the variety offered in squashes on the basis of its ingredients like fruits, vegetables, herbs and spices has made it cater to the different needs of different consumers unlike the soft drinks industry.
- Also, because of the splurging demand ready to serve drinks and the squash drinks being more affordable, healthy and available it is seen to be attracting a majority of the consumer market.
The use of squash crushes and syrups has among the consumers has been in the the following ways
- As a welcome drink by many households
- Used as a cooler offered to customers at resorts and hotels
- Used along with hard drinks/liquor to provide an added flavour by bars, pubs, restaurants etc
- Seasonally used in summer as a coolant and as a substitute to water, soft drinks, alcohol
- Used at parties, festival occasions etc
The license required to start a squash making business would be :
- Certificate under FPO 1955
- Registration under FMCG act
- GST registration
- Factory licence
- Rental/lease agreement
- PAN / Aadhar card
1) Fixed capital investment – ₹3,50,000
2) Working capital investment – ₹ 6,00,000
1. Net profit – ₹ 4,51,416
2. Return on investment – 48%
The use of squash has been widespread among various niches and industries of the Indian consumer market. So, the target consumers for your squash making business would be :
Households : They make use of squash as a welcome drink for their guests, as a coolant for kids and elders instead oh harmful carbonated drinks.
Restaurants and bars : They use squash as an intermediary product by serving it along with the alcoholic beverages to kick in a flavours or as a product of end consumption for consumers who are health conscious or underage. Also used by fast food chains and street food stalls.
Hotels and resorts : They use squashes for the same reasons like the restaurants and bars do but also serve them as complimentary drinks for tier customers providing a sense of hospitality.
Nutritionists/dietician: They are also used by the nutritionists and dietician who recommend squashes as a part of diets to their customers because of the health benefits of vitamins or as a replacement for their alcohol consumption.
Events/ caterers : Used by many catering companies who provide squashes as a part of their drink menu for events, parties etc.
Airports and canteens : Many airline companies also make use of squash as a part of meals they offer to their customers on board. It is also used for consumption in school, college and office canteens.
The raw material required for manufacturing squash is as follows :
- Assorted fruits
- Chemicals ( essence, citric acid)
- Card board boxes
The machine required to get started with your squash making business :
- Juice extractor
- Pulping machine
- Fruit washing machine
- Stainless steel mixing tank with stirrer
- Vacuum bottle filling machine
- Weighing scale
- PP cap sealer
The manpower required for you to run this squash making business is as follows :
- 1 food technologist
- 1 accountant
- 1 supervisor
- 1 mechanic
- 2 skilled workers
- 8 unskilled workers
Moreover ample training to these employees and workers in terms of equipment handling, machine using procedure, safety and precautions measures must be provided.
The area required to manufacture the squash would be approximately 200 sq meters.
Business model and growth
The business model of a squash making business would be defined by these four variants :
Value proposition : The unique selling point and the value which this squash making business would provide you with is as follows:
- It’s affordability and availability is not limited to age or income, can be and is consumed by everyone
- Secondly, it promotes a healthy lifestyle which is usually an offset for other beverage companies and drinks like : coke and Pepsi who are more prone to face repercussions.
Target consumers : As discussed above the target consumers of your squash making business are the major contributors to the F&B industry
- Restaurants and bars
- Hotels and resorts
- School/college/office canteens
- Parties, events
- Nutritionists and dieticians
- Fast food and street food chains
Competitor review : This industry invites competitions from the key players of beverage industry which deal in :
- Aerated and carbonated drinks like Coca-Cola, Pepsi. Alcoholic drinks like : Bacardi breezer etc.
- Healthy drinks/ non carbonated drink companies like : Tropicana, Amul, Real, kisaan etc.
Marketing strategy : The marketing strategy of your squash making business can be decided according to the niche you are catering :
Restaurants/hotels/bars : You can market your squash drinks by emphasising on sales promotion measures like discount of bulk buying, trade discount, free deliveries etc.
Households : Advertisements highlighting the affordability, clinical certification and taste of the squashes offered by your company.
There are many factors contributing to and showing the potential and existing growth of the squash making business which are as follows :
- The non-carbonated beverage sector is booming with a CAGR more than 20% annually that in turn is likely to increase the demand for squash oriented products.
- Many carbonated drink companies like Coca-Cola are shifting their production to health-oriented drinks which would give you the benefit of economies of scale, consumer loyalty and supply chain management because of your experience in its production.
- The rise in non carbonated drinks have made the volume of the aerated drinks drop by 3.1%.
- Moreover the still developing uses of squash like squash flavoured popsicles, desserts, squash art etc also contributes to its growth.
The squash making business comes with a profit margin for you around 10.46%.
Why don’t you sit back and make your self a squash drink while we help you make a decision or whether or not to get into this business by giving you some fact checks :
- Firstly, squash making business comes with easy distributional channel, low investment, reasonable shelf life and suffice profits.
- Secondly, there’ll always be a demand for a supplementary drink for alcohol and carbonated drinks by the consumers and too squash comes in flavoured variety making sure there’s something for everyone. So you’ll never run out of customers, that’s for sure.
- Lastly, squash making business also opens opportunity to trade in the global market because of the fruits and vegetable which are regionally grown and known for its taste in your country, inviting foreign demand.
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