Complete Guide To Start Spice Business in India 2020

4/15/2020 Complete Guide to Start Spice Business in India 2020
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Complete Guide to Start Spice Business in India

2020
Posted on January 4, 2020 by DesignerPeople
We Indians are crazy when it comes to food, our every festival, events and even day to day lifestyle is highly influenced by spices.
We divide by states, but one thing which keeps us connected is “Spices”. India is known as “home of spices”, an Indian spice is
sought after globally due to its texture, aroma, taste and medicinal properties. India is the world’s largest consumer, producer and
exporter of spices. We produce around 75 of the 109 varieties listed by the International Organization for Standardization and
accounts for almost half of the global trading in spices.
Table of Contents
SPICE HISTORY AND STATISTICS
HOW TO START SPICE BUSINESS IN INDIA
1.COSTING INVOLVED IN STARTING UP A SPICE BUSINESS?
2.LICENSING REQUIREMENTS
3.SPACE REQUIRED
4.RAW MATERIALS REQUIRED
5.MACHINERY USAGE
6.SPICE MANUFACTURING PROCESS
Also Read : Indian Masala Packaging Design
CHALLENGES FACED BY SPICE MANUFACTURING COMPANIES IN INDIA:
SPICE BRANDING
https://www.designerpeople.com/blog/guide-start-spice-business-india/ 1/19
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SPICE HISTORY AND STATISTICS AGENCY

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From various ages, spices have always been a crucial component of India’s external trade with foreign countries unlike Arabia,
Sumeria, Mesopotamia, China, Egypt and, along with textiles and perfumes.
The giant history of spices includes in its place in each holy book. The Ramayana also in the writings dating back to the Roman
Empire in the first century AD. The caravans of camels moved regularly from Calicut, Goa and the Orient. They even transport
these spices to distant destinations such as Carthage, Alexandria, and Rome. source
Today, Indian spices are available everywhere, but there was a time when people have to risk their existence to gain access to
Indian spices. From the Indian point of view, it brought in traders and invaders alike – a century after century.
In the fiscal year 2019, the export value of spices from India amounted to over 231 billion rupees. Top 10 importers of spices in
India between Apr-Oct 2018 were the US, Vietnam, China, Hong Kong, Thailand, UK, UAE, Malaysia, Bangladesh and Sri Lanka. The
top 10 exported spices and spice products in terms of value were Mint products, Chilli, Spice Oils & Oleoresins, Turmeric, Cumin,
Pepper, Curry powders/paste, Cardamom seeds, other spices (Tamarind, Asafoetida, and Cassia) and Garlic. The total export of
various spices in 2017-18 stood at US$ 3.11 billion.
Consumption of spices in an Indian household is massive; hence the market is growing with the 40000 crores annually. When one
can see so much potential in spice business which ensures good returns with low investment, then any individual can start a
business even home-based spice making business is turn out profitable.
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Indian spices exports have been able to record strident gains in value as well as volume wise. During 2018-19, Are of 11,00,250
a total
tons of spices and spice products valued Rs.19505.81 crore (US$2805.50 Million) have been exported fromHOW WE WORK
the Country as against
10,28,060 tons valued Rs.17980. in 2017-18, registering an increase of 7% in volume and 8% in rupee termsCareers
and 6% in dollar terms
of value. Source packaging design
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14HOW TO START SPICE BUSINESS IN Logo Design

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1.COSTING INVOLVED IN STARTING UP A SPICE

BUSINESS?
The Indian spices market is projected to reach approximately USD 18 billion by 2020, with growth in the sector expects to be led
by branded spices and spice mixes. India being the largest spice producing country producing 50 different types of spices people
are looking for ready-made food, and spice powder makes their cooking more accessible. Hence the usage of the spice powder is
increasing consistently and futuristic.
Powdered spices are convenient to use, and it saves time and physical efforts for preparing different delicious cuisine.
Every commercial food industry like hotels, restaurants, catering business and many more are using powder spices on a daily
basis.
Spice powder makes it an easy and profitable business to start, and one can start this business with small-scale investment.
Basic Investment : 50000 INR to 100000 INR
Area Required: 250 Sq yard
ProfitPercentage : 50% to 70%
Earning: Average Sale 100Kg /Day, 50000 to 150000 Per Month

Other additional expenses will include equipment maintenance, employee salaries and marketing costs.
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2.LICENSING REQUIREMENTS Careers
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As spice powder is part of the food category hence, it has to satisfy a lot of regulations from state government such as follows,
BRANDING
1.Registration of firmshould be done depending upon the scale of business if its Pvt. Ltd. or partnership or BRAND
singleIDENTITY
person company,
the firm is registered accordingly.
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14GST registration is also essential to gain GST number, which is a must. Website
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If it is SME, then companies can register themselves and get facilities and subsidies from the state government.
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MARKETING
2. Obtain trade license, FSSAI and apply for Trademark, BIS certification and IEC. It is advisable to obtain AGMARK certification.
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3.SPACE REQUIRED Product Design

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No massive space is required when it comes to starting a business with spices, around 250 sq yard can Contact
be used for processing of
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pieces and other 250 sqyard is needed for the packaging of the spices. Check commercial space where basic amenities are
available such as water, electricity, etc. +91-9871204940
The state government have restriction to start the food business from home hence ensure that the location is obeying the law of
the government decided.
Make sure the location is transportation friendly and easily accessible to the target market.
4.RAW MATERIALS REQUIRED

The essential ingredients required in spice powder are ungrounded spices, and along with raw materials, you will need packaging
materials which will act as protection of spice powder.
5.MACHINERY USAGE
Grinding machine is necessary machinery required in spice business depending upon the scale of industries the equipment is
used. Large scale industries use Impact Pulverizer machine while small scale industries use Double stage Pulverizer.
Other machinery such as spice grinder, weighing scale, packaging machine, compressor, roster are also required.
6.SPICE MANUFACTURING PROCESS
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1.CLEANING
It is a very initial process for spice making in which the ungrounded spices are clean manually by removing impurities like stone,
dust, and dirt.
2.DRYING
After cleaning and washing process display them in sunlight so that they dry, the quality of the spice powder will depend on
the well-dried spice. If proper cleaning and washing do not take place, it will lead to the growth of bacteria, which will poison food.
3.ROASTING
Once spices are dried, they are going through the roasting process, the roasting of the spices is essential because it will help to
give the aroma, colour and good taste to spice powder.
4.GRINDING
Grinding machine is used for pulverizing to convert the spices into powder form.
5.GRADING
The grading is a process which is the basis of the inclusion and proportion of spices mix with their raw material used, also
depends on the type of spices (flavour), size, shape, density, and colour.
6.SIEVING
Make sure that spice powder has a uniform mesh size
7.PACKAGING OF SPICE
Seasoning and spices add massive flavour to your favourite dishes, but to work their magic, they must be fresh; hence correct
packaging is mandatory. AGENCY
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Protect and preserve your spices and seasonings with stand up pouches with zip locks and such packaging bags will give you the
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flexibility to choose the best size, style, and features for your spices. Choose from options like gas release valves, tear notches,
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heavy-duty zipper tops, hang holes, pour spouts, and, as well as different styles that give you plenty of room to bring your brand
packaging design
to life.
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Once spice is converted into powder form, then the spice powder weighted as per quantity that needs toBRAND IDENTITY
pack. The spices are
116
then wrapped in a polythene bag and sealed with the help of the sealing machine. Brand Consultation
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14Stand up; pouches will protect your spices from issues such as moisture, puncture, odour, and more. YouWebsite
are hence guaranteeing
that your seasonings and spices make it safely from the warehouse to your customers’ taste buds. Catalogue
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Also Read : Indian Masala Packaging Design Social Media Marketing
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CHALLENGES FACED BY SPICE

Product Design
Case Studies
Contact
MANUFACTURING COMPANIES IN BLOG

+91-9871204940
INDIA:
1.WORKING LABOUR ISSUE
The pungent odor of spices which gives sharp sensation is not suitable for health if exposed for a more extended period. Hence
there is always a significant issue of discovering working labour in the Indian spice industry.
2.MARKET CREDIT
The credit market risk with distributers or mediators in the spice industry is always at high, and hence this leads as a significant
challenge.
3.PACKAGING LEAKAGE
There are many small scale industries in India where still hand-made packaging is done due to budget constraint, which results in
packaging leakage. If they plan to opt hi-tech types of machinery, then costing is increased; hence this has always been the point
of concern.
4.EXPANSION IS DIFFICULT BECAUSE OF HI-TECH MACHINERIES

Each day innovation is introduced, to keep updated and in trend, companies have to adapt to each change. For SME’s, it is
challenging to expand themselves due to the introduction of new technology and this act as a challenge for brands.
5.A LOT OF COMPETITION

The spice industry faces intense competition since the concentration of suppliers is more Its competition is often at the regional
level. There are also many small local companies often operating in a specific location, and as the demand for authentic organic
spices increased the demand for maintaining the quality of the product raised.
SPICE BRANDING
Branding helps to develop a memorable impression on consumers and allow customers to know what to expect from your brand.
It is a way of distinguishing yourself from the competitors and clarifying what it is you offer that makes you the better choice.
DesignerPeople have listed below elements of branding:
1.Brand Identity
In spice industry brand identity is the way audience recognize the brand which can be through brand logo, punch-lines, stationary
identities such as business cards, envelop, letterheads and other associated visuals.
Everest punchline- Taste Mein Best Mummy aur Everest AGENCY

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The process of creating the idea of brand in the minds of customers as it also dictates what they expectCareers
from the brand. We all
packaging design
know its universal that saffron is premium spice hence it cannot be presented with budget environement.
BRANDING
3.Brand positioning BRAND IDENTITY
Spice brands carry their own brand story along with value added elements such as home-made, no preservatives, on basis of
Logo Design
taste or flavours and many more. It is very important to create competitive advantage and occupy the space in the minds of
14 Website
customers and branding does this effectively.
Catalogue
4.Brand personality Wayfinding Signage
MARKETING
Brand personality is just like the personality of human beings. It is certain emotional or personal qualities that we associate with
advertising
a particular brand.
5.Packaging Design Search Engine Optimization
PPC Services
It takes 7 second for customers to make purchasing decision and hence spice packaging design plays very crucial role in deciding.
Product Design
The colour, font style, text placement, content, tagline, and illustrations all together reflect the brand story. Packaging design
Case Studies
agency are experts who ensure your packaging design acts as marketing tool.
Contact
6.Marketing collaterals BLOG
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Posters, brochures, websites, banners every collection of media used to support the sales of service or product is considered in
marketing collaterals.
DIGITAL MARKETING
The digital media platforms such as Facebook, Twitter, Instagram and LinkedIn are in trends for spice campaigning . In spice
industry, the brand has become a pioneer in involving digital media and leveraging various activities, events and various festivals
which are ongoing in our country to gain traction and keep users engaged with brand across all platforms.
One of the campaigns run by the brand, #BadshahKeSaath, has seen an impression of over 10 million individuals and has an
engagement of over 1 million people. Hence this simply means that the right kind of investments at the right place can result in a
fair growth for the brand.

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HOME » COMPLETE GUIDE TO START SPICE BUSINESS IN INDIA 2020

Complete Guide to Start Spice Business in India

SPICE HISTORY AND STATISTICS AGENCY

14HOW TO START SPICE BUSINESS IN Logo Design

1.COSTING INVOLVED IN STARTING UP A SPICE

Basic Investment : 50000 INR to 100000 INR

Area Required: 250 Sq yard

ProfitPercentage : 50% to 70%

Earning: Average Sale 100Kg /Day, 50000 to 150000 Per Month

3.SPACE REQUIRED Product Design

4.RAW MATERIALS REQUIRED

6.SPICE MANUFACTURING PROCESS

CHALLENGES FACED BY SPICE

MANUFACTURING COMPANIES IN BLOG

4.EXPANSION IS DIFFICULT BECAUSE OF HI-TECH MACHINERIES

5.A LOT OF COMPETITION

DesignerPeople have listed below elements of branding:

Everest punchline- Taste Mein Best Mummy aur Everest AGENCY

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Creative Social Media Campaigns for Food Products

Complete Guide to Start Dairy Business in India 2020

Packaged Snacks Food Business in India

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