Masala Factory Project Cost | The Estimation Guide

Before setting up a business, it is crucial to determine the investments required for it. So, if you want to know how to start spices business in India and the masala factory project cost, here are your answers.

 

Components of Masala Factory Project Cost 

 

• Masala Factory Project Cost: Rs. 50 Lacs - Rs. 70 Lacs (Investment)
• Area Required: 2000 square ft. (minimum)
• Profit Margin: 60% -70%
• Payback Period: 1 - 2 Years

 

 

This is only an estimate, the amount differs on the basis of your requirements and the scale of business.

 

List of Investment to Set up a Masala Factory

 

Firstly, why are we saying it as an investment?

 

Because all you spend in the business gives you profit at some point, and that is why we call it an investment.

 

Business Registration

 

The first and foremost is business registration. You can register it as any of the following depending on your requirements.

 

• Private Limited Company Registration  - Rs.6890/-
• Partnership Registration - Rs.2599/-
• One Person Company Registration - Rs.5890/-

 

Acquiring Licenses

 

Licenses provide you with all the legal safety for your business. 

 

Therefore, here is a list of licenses you need to start a masala factory in India.

 

• GST Certificate - Including with Company Registration
• MSME Registration - Includes with Company Registration
• Trade License - Different for every state (Get in touch with an expert for exact costs)
• NOC from State Pollution Control Board - Provided by Municipality (Advisable to visit one physically)
• FSSAI

 

There are three types of FSSAI licenses. So, it will depend on your scale of operations.

 

1. Basic FSSAI License (Operating in City) - Rs.1,377/-
2. State FSSAI License (Operating within State) - Rs.5,377/-
3. Central FSSAI License (Operating around the Country) - Rs.10,000/-

 

Rent/Lease of the Masala Factory Land

 

Now, how much does the masala manufacturing plant cost if you rent or lease it?

 

It is one of the crucial investments to decide. 

 

The monthly rent could start from Rs. 15,000 approx. 

 

But, it totally depends on the area where you are renting. So, it is advisable to check out a few potential buildings and get a quote from the owner directly. 

 

So, you can either rent the land to set up your factory or buy it. 

 

The decision depends on the scale of your business and the time you want to run the business.

 

Construction 

 

If you get a pre-constructed building, it is well and good. 

 

Besides, it may cost around a fortune for constructing the building from the core and will also take a lot of time.

 

Also, it will add more to your Masala Factory Project Cost.

 

Renovation

 

The renovation is necessary to light up the factory and design it according to your requirements. 

 

Renovating the area would require a minimum of Rs.10,00,000/-. 

 

But, that depends on how much you want to renew the masala factory.

 

Logistics

 

• Transportation
• Storage

 

The Investment in logistics differs from the type of your business.

 

Although, you may need to invest a minimum of Rs.2 lacs - Rs.4 lacs.

 

Machinery

 

• Disintegrator  Rs.75,000/-
• Packaging Machine  Rs.5,00,000/-
• Grinding Machine  Rs.40,000/-
• Sealing Machine - Starts from Rs.30,000/-
• Printing Machine - Starts from Rs.80,000/-
• Weighing Machine - Starts from Rs.300/- 
• Spice Filling Machine - Starts from Rs.3,00,000/-
• Pulverizer - Starts from Rs.35,000/-
• Cleaning Machine - Rs.1,80,000/-
• Sieving Machine - Starts from Rs.1,00,000/-

 

Raw Materials

 

• Whole Spices 
• Edible Chemicals
• Edible Food Colours
• Preservatives (if needed)

 

These are the most important investments for your Masala Factory Project Cost.

 

Also, it is very crucial to get it right because the reputation of the company depends on the quality of your products.

 

Packaging Supplies

 

Resealable Packets - Rs.3 per pouch

 

Employee Salary and Labour Wages

 

The salary and wages depend on the people you hire. 

 

Check out Glassdoor to know what are the current market salaries for each position you hire.

 

Also, you will have to negotiate with them and hire a good team.

 

List of people you need to hire:

• Manager
• Accountant
• HR
• Nutritionist
• Security Guards
• Labour
• Sales Person
• Driver
• IT Professionals
• Engineers

 

Utility Bills

 

• Electricity Bill
• Water Bill
• Internet Bill
• Gas Bill

 

The utility bill expenses in a masala manufacturing plant cost calculation will differ on the usage of each.

 

Therefore, it is not possible to calculate it beforehand.

 

Hidden Expenses in Masala Factory Project Cost

 

After calculating all these investments in the masala factory project cost, there can also be some hidden expenses. These are the expenses that cannot be pre-determined. 

 

So, it is always advisable to keep some extra in-hand funding for unexpected events.

 

If you have any queries, fill the form on the right and consult an expert.