Tomato sauce making business – Investment, Profit | StartupYo
From dipping your favourite French fries into it, to squeezing it right on the top of that triangular cheesy pizza slice, or even replacing your boring curries with it. This tangy and spicy combination of Tomato ketchup has made us want it with almost every meal possible.
Tomato ketchup is required and demanded in its form across the globe that its market value was worth $15990 million in 2020. Infact india accounted for 11% of the total global production of tomato sauce, of which the Indian consumer market for the it stands at $ 2248 million, not so shocking now is it?
The widespread use of tomato ketchup as a condiment, ingredient, table sauce has been the reason behind its expanding market share and growth.
Even so if not by this you can definitely make business out this tomato sachets people hoard without realising why. So let’s see how tangy is this business opportunity for you.
Market potential and uses
The market for the tomato ketchup is a vast one because of its applications across various cuisines which has made it an inseparable demand. Its use is longing across the households to restaurants, canteens, fast food joints etc
Moreover because of the size and quantity availability of this ketchup in sachets, pocket bottles, glass bottles, fibre bottles, squeezers etc has increased whatsoever potential it has had.
Infact with the increasing working class, busy work schedule, health conscious consumers in this country and demand for easy-to-make food like rolls, sandwiches and salads etc has increased the demand for tomato ketchup as an easy dressing.
The market potential for tomato ketchup can further be elaborated by defining it on the following basis.
On the basis of types of tomato ketchup
- Tomato ketchup
- No garlic no onion tomato ketchup
- Sweet and spicy tomato sauce
- Chilli tomato sauce
- Organic tomato sauce
On the basis of its uses
- It can be used as a condiment for fritters, chicken etc
- As an ingredient in preparing savoury dishes
- As a table sauce for sandwiches, fries etc
- As a salad dressing
- As a sweetener for spicy dishes
- With the fast food and Chinese takeouts
- Used for street food preparations
The license required to run this tomato ketchup making business is
- Certificate under FSSAI regulations
- IS : 3882 certificate
- MSME registration
- BSI certificate
- NOC by state pollution control board
- GST registration
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The investment required to set up this business is as a minimal as ₹ 2 lakhs
The profits made from this tomato mech making business is ₹40000-50000 per month
The target consumers for your tomato ketchup making business would be as follows:
Households: Households of all ages and working class make use of tomato ketchup as a table sauce for the routine food cooked like with fritters, sandwiches, chapati rolls crackers, evening snacks etc
Fast food chains: The fast food chains make the most use of the tangy tomato ketchup which is more of an essential requirement with burgers and pizzas without which the consumers sometimes lose the delight in their taste
Take out food chains: The take out food chains specifically the Chinese, and burger and pizza joints, street foods etc require supplying tomato ketchup sachets along with the food to meet all the possible requirements of the consumers
Cafés: For the consumers aiming at healthy eating, diet consciousnesses etc the cafés make use of the organic tomato ketchup along with salads as dressing.
Bakeries: The bakeries make use of the tomato ketchup as an side dip with curry puffs, samosas, puffs, croissants etc
Street food stalls:The street food stalls like those of bhelpuri, Maggie etc also require tomato ketchup to meet the requirements of all the target consumers with different tastes
Retail stores and supermarkets: The retails and supermarkets stock up on the tomato ketchup bottles for the purpose of meeting the household requirement of consumers like kids, adults, teenagers older people etc
Canteens: The canteens of various spaces like schools, colleges, commercial offices etc require ketchup to serves along side with dishes as an optional condiments
Restaurants: The make use of tomato ketchup for the purpose of an optional condiments along with other sauces like chilli sauce, Vinegar, mayonnaise etc to meet the different taste buds of the consumers.
The area required to set up this business is 500 sq ft
Raw materials required
The raw materials required to run this business is
- Came or beet sugar
- Glucose syrup
The machinery required to set up a tomato ketchup making business
- Tomato Pulping machine
- Space grinding machine
- Bottle washing machine
- Crown corking machine
- Exhaust and processing machine
The manpower required to set up a tomato ketchup business is
- skilled worker
- unskilled worker
Moreover these workers must also be provided with ample trading in terms of the following:
- Machinery usage
- Equipment handling
- Safety and precautions measures
- Business model and growth
The business model of a tomato ketchup making business can be defined using these 4 variants:
Value proposition: The value which a tomato ketchup making business is likely to provide to you is:
Being an essential option in condiments and various quantity options at affordable prices you can expect massive sales
Large availability of raw materials and low cost production process the investment is minimal and the business can be expanded.
The target consumers for a tomato ketchup making business are:
- Fast food chains
- Retail outlets
Competitor review: The competition in this business is quite aggressive with the already dominating brands how ever it is easy to capture a local niche and cater to them. The competition to your tomato ketchup making business is
Nestle Marketing strategy:
The marketing strategy that can be implemented by your tomato ketchup making business could be:
Advertising: Through TV commercials, digital billboards, celebrity endorsements, brand endorsements.
Listings: on grocery and online shopping stores like amazon, big basket, grofers etc
Sales promotion: Buy one get one etc
The tomato ketchup making business has witnessed and has the potential for following growth prospects.
The Indian tomato ketchup market has been expected to grow at a CAGR of 6.9% untill 2020 and the global tomato ketchup up market at a CAGR OF 5.4%
Infact the per capita consumption of tomato ketchup in India stands at 1.3 kg in 2020 thereby increasing its production and distribution prospects
The profits which a tomato ketchup making business is likely to yield is 25%.
Why don’t you get yourself some of that tomato ketchup dip and fries while we help you make a decision whether or not to take up this business opportunity
Firstly, because of the increasing working class and ready-to-eat food the demand for tomato ketchup is increasing as an essential dressing on rolls, sandwiches and and as a salad dressing for health conscious consumers
Secondly, the affordability, variance in quantity and flavours of tomato ketchup has increased the target consumers you’ll be catering to
Lastly, because of widely available raw material and at cost cutting prices this business is a low investment opportunity
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