Setting Up a Small Biscuit Manufacturing Factory in India: Cost Breakdown

The demand for biscuits is consistently high, irrespective of the region or the age group of the consumers. This enduring popularity has made biscuits a perfect choice for edible producers looking to start a small manufacturing venture. However, the cost involved in setting up a biscuit manufacturing factory in India can be substantial. In this article, we will delve into the estimated costs and factors that contribute to the total investment required.

Overview of Costs

Setting up a biscuit manufacturing plant in India can cost approximately INR 450,000 to INR 500,000. These costs primarily include the following components:

Land and Property Costs: The cost of land or property on which the factory will be established is a significant factor. This can range from a modest amount in rural areas to a considerably higher amount in urban regions. Planning and Architecture: The cost of obtaining plans and specifications, as well as paying architects for their fees, is another major expense. Additionally, tenders related to construction and project management costs are also part of this cost. Construction Costs: The tenderers' price of construction and any potential cost overruns form a substantial part of the total expenditure. Ingredients: The cost of ingredients significantly varies based on the type of biscuits to be manufactured. For instance, the cost of milk, sugar, flour, and other additives can fluctuate.

Investment Based on Production Volume

The investment required also depends on the type of biscuits you plan to produce. For example, if you are manufacturing 50 kg of biscuits per hour, the investment needed can be around INR 26-28 lakh. However, this cost varies based on the complexity and the variety of biscuits.

Industrian Production

For a large scale operation producing 50 kg of biscuits per hour, the detailed cost breakdown could be as follows:

Land and Property Costs: INR 15-20 lakh (depending on the location and size) Planning and Architecture Costs: INR 2-3 lakh Construction Costs: INR 10-12 lakh Ingredients and Production Equipment: INR 8-10 lakh

Total estimated cost for large scale manufacturing: INR 35-45 lakh

Small-Scale Production

For a small-scale operation producing around 200-300 biscuits per day, the cost can be significantly lower. Here is an estimated cost breakdown:

Land and Property Costs: INR 5-10 lakh (depending on location and size) Planning and Architecture Costs: INR 1-2 lakh Construction Costs: INR 5-7 lakh Ingredients and Production Equipment: INR 3-5 lakh

Total estimated cost for small-scale manufacturing: INR 15-25 lakh

Conclusion

The actual cost of setting up a biscuit manufacturing factory in India can vary widely based on the scale of production, the type of biscuits, and regional differences. However, with careful planning and an understanding of the cost factors, you can successfully establish a small biscuit manufacturing plant and meet the growing demand in the market.

For those looking to start a small biscuits factory, the investment required might be as low as a few hundred dollars if you are setting up a small-scale operation. This can include basic equipment and a limited amount of raw materials to get started.