India is the biggest producer of spices in the world. It is the largest exporter and consumer of spices as well. The production of spices, which was 10.88 million tonnes in 2021-22, is testimony to this fact. There’s no doubt that it is one of the most profitable ventures.
The scale of a business depends on the investment capacity of an individual. Let’s take a deep dive into it:
Investment: Rs. 1,00,000 – Rs. 5,00,000 (assumed)
Area Required: 700 Sq Ft. (minimum)
Human Resource: 10 – 12 employees
Masala Business Profit Margin: Approx 30% – 40%
Expected Sales Per Day: 100 kg
Earning: Rs. 60,000 – Rs. 1,40,000 per month
Irrespective of the scale on which you start the business, these are the necessary registrations and licenses which need to be procured by investors.
Registration of Firm:
The first step in the direction of establishing a spice venture is establishing a company. An attractive name and logo are the two most vital elements which will help in communicating the company’s vision.
GST Registration:
GST Registration will help in getting recognition for the business and opens new avenues as well.
Other licenses which should definitely be procured are Trade License, Udyam registration/ MSME Registration, Trademark Registration, FSSAI Registration etc.
Apart from these aforementioned things, some challenges should also be kept in mind when starting a spice venture.
Working labour problem:
This problem is faced most of the time in spice-producing ventures because no one wants to get exposed to the pungent smell of spices. Due to the odour, there is a sharp sensation which is harmful to health if extended for a long period of time.
Market Credit problem
There is a lot of credit market risk with distributors in the spice industry. Credit Market means the market through which companies and governments issue debt to investors.
Difficulty in expansion and intense competition are some of the other problems faced by spice-producing ventures.
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