How to Start Spices Business in India

From our traditional grandmother's delicious foods to modern cooking techniques, they all include a crucial mix of Indian spices to add significant texture and taste to make Indian foods more delicious. 

Hence, you can imagine how important Indian spices are for the delicious foods we eat daily. Starting out your spice business can be an idea if you also want to take your career further as an entrepreneur or business person. 

Currently, India is one of the leading spice producers and exporters. Considering a spice business can be a great idea even if you have a low business to start your startup business. To help you know the process further, we have compiled a list of steps you can follow to register and run your spice business successfully. 

How to Start a Spices Business in India?

#1. Business Registration

Your first step to opening your spice business startup is to get company incorporation. You will have to fill out some form to register your company with RoC and get a brand name along with the brand logo. 

#2. Getting GST Number

After incorporating your business, it's crucial to get a GST number. It will help your business to get recognized and help you deal easily with B2B and B2C clients. Moreover, buyers also feel comfortable buying spices from your store.

#3. Get Trade License

Obtaining a trade license is also a crucial step that you need to get from local authorities. Basically, they will provide you with a certificate-type thing to help you run your spice business successfully in the local area. 

#4. Complete MSME Registration

There are certain benefits provided by central and state governments in India. To avail of these facilities, you will have to complete your MSME or Udyam registration, which is a simple process and help you get a range of subsidies from the state or central government. 

#5. Register Trade Mark

A brand logo is essential as the buyer first sees your brand identity before knowing the brand name and nature. So, make sure to get trademarks for your spice business startup. 

#6. Complete FSSAI Registration

As you are selling pieces to B2B and B2C clients and the nature of business comes under food, it's essential to get FSSAI or food operation license. It's compulsory, and you can not miss it before executing your spice business activities. 

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#7. Get IEC and BIS certification.

These two are other important things you need to start your spice business in India. First, complete your IEC registration; it's only applicable if your business is going to be involved in the export and import of spices. Whereas a BIS certificate and ISI is a compulsory thing to have for your business. 

There are various ISI certificates you need for various spices. Create a list of spices you will sell and then get BIS registration for each. For example, you need ISI-1798-1961 for selling Blackhole and ground, ISI-2445-1963 for selling chili powder, and ISI-2444-1963 for selling coriander powder. 

#8. Complete ISO certification

Your next step is to get ISO 9001 certification to show that your products meet the customer experience. Moreover, getting an AGMARK certificate is also good, as it will help you run your spice business without any trouble. 

Once you are done with the registration mentioned above and the certification process. You are ready to follow the steps to set up your spice business in India. 

#9. Allocate Space for Business

You don't need many spacious business areas to run your spice business. Ideally, you need a 200 sq feet area to set up machinery and other office items. If you have a fund shortage, you can look for an affordable commercial area to get on rent and set up your office. 

#10. Bring Require Species

In this step, you must bring all the spices you will sell, either in processed or original form. You need to contact a reliable dealer and ensure you get the desired quantity of species on time.

#11. Set up Machinery

There is certain machinery required for processing raw spices. You need a heavy-duty grinding machine that can easily grind the required quantity of raw spices. Along with this, you also need a packaging machine, weight machine, compressor, and roaster. 

Now you have completed all the registration processes to start your spice business and set up your office and the manufacturing area, machinery, and raw materials. Now, you need to start processing all these spices and pack them properly to sell in the market. 

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#12. Start Processing Raw Spices

To process Indian spices like coriander, curry leaves, chili, and other spices, you must follow the following processes. 

Clean: Remove all the stones, dust, and dirt from the spices.

Dry: With this step, you will ensure the spices are dry.

Roast: It's another step that will ensure spices get ready to grind.

Grind: Now, you will be grinding spices to make them in powder form.

Grade: This crucial step allows you to grade the processed spices based on flavor, size, shape, and other factors.

Sieve: Here, you will make sure that spice powder is in uniform size.

Weight & Pack: This is the final step of the spice processing process, which asks you to weigh spice powder and pack them in various quantities.

Is the Spice Business Profitable in India?

India is highly recognized for exporting the highest number of Indian spices to the international market. If you start your spice business in a proper manner, it can be a profitable startup business.

For example, you can earn a 60%-70% profit margin in the manufacturing spice business. Whereas, if you opt for wholesale, you can earn a 40%-50% profit margin and a 20%-30% profit margin if you start it as a retailing business. 

So, if you start your spice manufacturing business to sell spice powder in the market. You would be investing around Rs 50,000 to Rs 1,50,000, assuming taking a rental business area. After setting up your business, you process raw spices and sell them in the market, where your everyday sales are 100kg. 

In that case, your monthly revenue can be as low as Rs 40,000 and as high as Rs 2,00,000. However, if you go online and sell on sites like Amazon and other eCommerce platforms, your profit margin can double even more. 

Remember, you must plan your business carefully, as you will have to pay salaries to employees, payment to distributors, and rent for commercial areas. After deducting all these expenses, you will have to generate enough profit. 

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How can I Start a Spice Company in India?

To start your spices business startup in India, you must complete all the required registration and certification process. After that, you will open your office and manufacturing unit, where you will place machinery, bring raw spices, and hire labor to process these raw spices in machinery. 

After processing the raw spices into powder, you will need to pack them into various packages, ensuring they are safe and have a long shelf life for spice products. Once these steps happen, you can start distributing in the market and selling your Indian spices to generate revenue and make a profit. 

What are the Top 7 Indian Spices?

India has many Indian spices that are important for various recipes. However, if we talk about the most common ones, these are cumin, coriander, cinnamon, clove, turmeric, cardamom, and fenugreek. 

Conclusion

In this article, we discussed how to start a spices business in India and other crucial processes. We hope you have a proper understanding of the same and have many insights to use. 

If you keep willing to learn something new about making money online and offline, you can stay active on our blog platform. We keep sharing insightful information with you and trying to help our readers make money and grow their careers.

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