Business Idea: How to start dry fruit business in India
If you are planning to start small business, then it is important to have complete information about new business and it’s opportunities, investment, distributions, profits, packaging, row materials, and challenges first.
Here, we are giving you complete guide about this business, by starting which you can earn 45000 to 55000 rupees per month.
India is the third largest producer of dry fruits in the world. Dry fruit production in India has grown by more than four times during the last two decades and is expected to grow further at a CAGR of 16% during next five years.
This guide highlights some of the key drivers, challenges and opportunities for investment in this market, as well as provides detailed analysis on growth prospects across different segments such as type, product form and packaging, distribution channel and region.
What is a Dry Fruit Business?
Dry fruits are helpful to maintain proper digestive system and heart system because they provide essential vitamins, minerals, fats etc.
It is also helps in maintaining healthy teeth, skin and bones because of their nutritional content.
Dry fruits are a good source of a variety of nutrients and energy. They contain important vitamins, minerals and other bioactive compounds that offer health benefits.
The demand for dry fruits in India is increasing day by day because they can be used in snacks, meals and desserts. A dry fruit business may involve any or all the following activities:
- Production of Dry Fruits
- Processing and manufacturing of dry fruit products like raisins, dates, etc.
How to start dry fruit business in India?
Are you looking for the most profitable business idea in India with high profit and low investment? You are at the right place.
Starting a dry fruit business is one of the most profitable business idea for any entrepreneurs or startups. Dry fruits are available in Indian markets but usually they are not fresh.
A dry fruit vendor would look for good quality produce from other parts of the country or even outside India to make profits.
So, if you want to start selling dry fruits, it is important to find out suppliers. You can do a detailed study of the market and choose a supplier accordingly. To start a dry fruit business, you will need to:
- Choose the products you want to produce or sell
- Register your business with the government
- Get a license to produce dry fruits
- Source raw materials and machinery
- Set up a production facility
- Market your products
- Dry Fruit Business Business plan
Dry fruits are a good source of many nutrients and have several health benefits. India is the world’s largest producer, consumer, and exporter of dry fruit.
The products that you can start selling in Indian markets are walnuts, almonds, cashew nuts, raisins, dates, figs etc.
There are many types of businesses you can start in the dry fruit industry. So if you want to earn money by selling dry fruits, start a business in this line.
The process of starting a Dry fruit Business
Step 1: Naming your Business
You should come up with a name for your business which should be short and unique so that it can easily attract the attention of the people passing by. Examples include ‘Suvasa Dryfruit Mart’.
Once decided, it is always better to get your business name registered, so that no one else can use the same for their business.
Step 2: Registering your Business with the Government
After you decide on what type of dry fruit business you want to start and how much money you are ready to invest, the next step is to register your business. You will need the following documents to register your business: Apply for the name availability on the Ministry of Corporate Affairs (MCA) official website at www.mca.gov.in.
- Certificate of incorporation (which you receive after incorporating)
- Memorandum & Articles of Association (which you receive after incorporating)
- NOC from an existing company which you are taking permission under section 35 of The Companies Act, 2013
- PAN (Permanent Account Number) card copy
Step 3. How to get started?
After you complete formalities and get all the necessary documents, you need to decide how much money you want to invest and what will be the brand or name of your product. You should think of a catchy catchphrase for your brand so that it can attract customers.
Also, before actually setting up shop, it is advisable to do some market research and find out how much the market is willing to pay for a certain type of dry fruit. This will help you decide on what types of dry fruits to produce or sell.
Types of Dry Fruit Businesses
Once you have chosen what products you want to produce, it is time to set up your place.
You can either start producing these products in house or buy them from other vendors in bulk and then sell them to your customers.
You can also start a ready-to-sell dry fruit business where you source good quality dry fruits like dates, almonds etc., clean, package and pack it.
It is advisable to go for branded packaging so that the customer pays more for the product.
If you want to sell unbranded products in bulk, then go for the food grade packaging in which your name and address need to be printed on the product.
Importing Dry Fruits
If you do not find suitable conditions or raw materials available in India, there is still another option – import them from other countries like China, Turkey etc.
Do a market survey before importing them from other countries to find out the demand for those products because it is important not to have large quantities of imported dry fruits lying around if there is no sufficient demand for them in the Indian markets.
Challenges of running a dry fruit business in India
There are several challenges while running a dry fruit business in India. Some of these include:
High Government Duty and Fluctuating Market Price
The government imposes high duties on imported dry fruits which can be anywhere between 10% to 25%.
On the other hand, there is no such duty on locally produced dry fruits which make imported dry fruits more expensive. This is one of the major reasons why there is a huge demand for locally produced dry fruits.
Since people in India prefer to spend less on their daily purchases, they go for cheaper imitations which also have a good market share in this line of business.
Keeping up with Competition
Since there are several other dry fruit businesses in the market already, you have to keep an eye on what they are doing and learn from them.
For example, if your competition is using social media sites like facebook and twitter then you should also start using it for promoting your business.
Distribution of Product
Since India is a big country, it becomes difficult to keep your stock ready at all times because the demand might fluctuate from region to region.
This challenge can be easily dealt with by selectively choosing a few places where you want to set up your shop and getting in touch with distributors there who will buy your products at wholesale rates and sell it at retail rates.
Packaging and Product Reputation
If you are selling unbranded products, then it is advisable to use food grade containers for packing so that the customer is not at all worried about buying them even if they are spending less money on it.
However, if you are selling branded products then you will have to take special care of the package so that they are not damaged at any point.
Also, if your product is branded then you have to ensure that it has a high reputation in the market because once customers stop buying your products, it will be very difficult to bring them back.
Keeping your dry fruits fresh is an important aspect of running this business. This can be done by storing them in special containers which will maintain their quality even if they are stored at subzero temperatures for months together.
Marketing Your Products
Once you have produced your product, it is time to market it properly so that people know about it and start buying it on a regular basis.
You can promote your product through social media sites, promotional events and advertisements to make your customers aware of the existence of your brand.
Selling Your Products for Maximum Profit
Since customers are not willing to shell out a lot of money on dry fruits other than a few special occasions, it is important for you to sell them at a high price because this will ensure maximum profit for you.
You can also make custom packages of dry fruits to sell them at a higher price per kg.
Tips for success and profitability
If you want to make a success and profitable dry fruit business in India then it is important that you spend some time learning about the Indian markets.
For example, if you go to a market where others are already running their dry fruit business then make sure that you have a clear idea about what they are doing and how you can make your business stand out.
Also, know the right price to charge for your products so that they are affordable for most of your customers.
Dry fruit business can be quite profitable because there is huge demand for them during festivals and marriages.
However, it is important that you keep your customers satisfied because once they stop buying your products, it will be very difficult to bring them back to the market.
If you are still thinking about starting this line of business then make sure that you are prepared to work long hours because you will have to manage all aspects of the business yourself.
Conclusion: Starting a dry fruit business in India can be very profitable if you do it properly. Make sure that you are prepared to invest both time and money in this business because you cannot make a quick profit from it.
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