Essentials of Starting a Small-Scale Flour Milling Business

Nabanita Kundu By: Nabanita Kundu
On: 5 Sep , 2016,
In: Small Business Ideas
flour milling business

Flour milling business is one of the most traditional businesses in India and is also widely populated all over the world. Flour is such a useful ingredient to make various types of processed foods like biscuits, bread, noodles, pasta and fast foods like pizza, burger, doughnuts etc. In India, we are very much dependent on flour to prepare roti, chappati and paratha. Earlier we were used to buy packaged flour produced by multinational companies but these days due to health benefits of chakki-fresh flour, we have shifted towards it and naturally the demand of flour mills has started growing. As more and more people are becoming health conscious, the flour milling business will be profitable and never show a downward trend.

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As India is the second largest producer of wheat in the world, the need of flour mill plant is also higher. Depending on the demand of local needs, you can also start a small-scale flour milling business as the need of flour mill plant is there in everywhere from making chapattis at home to the bakeries, everyone looks for fresh and hygienic flour that makes the flour milling business a best profitable business unit.

And the best reason for opting flour milling business is that it doesn’t requires a huge investment and you can work for your own profit. You don’t need to work for somebody else and can manage and run your own unit.

Market Potentiality

As mentioned earlier, we need the flour in our daily life and that is also in a huge quantity. There will be hardly a home in India which doesn’t use the floor on daily basis and over that all the small and large bakeries and confectionaries need flour on huge quantity as the raw material for the production of other finished goods.

The packed flour once took a big market of the flour milling business, but the people now have found the advantages of the unadulterated flours from the flour mill plant and prefer them more over the packaged ones.

Types of Flour Milling Business

There are basically two types of flour milling business; one is small scale where you can charge a certain amount for milling grains for the customers. In this type the profit margin is not much but the need of investment is very less as you don’t need to buy the raw materials and can be a profitable one if the charges are proper and have a good amount of customers. This works majorly in the rural areas.

In the case of medium or large scale flour mill plant, here you need to process the flour from the raw material, and then sell them to the retailers or other consumers after packaging.  This type of flour milling business needs a bigger amount of capital but can fetch a huge margin of profit.

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Why choose Floor Milling Business over others?

  1. Investment: The need of capital is not very much in compare to the margin of profit in running a flour mill plant. The equipment may cost you approximately 2 Lakhs and if the capital is low you can even take machinery on rent and later on get your own.
  2. Demand: Each and every junk food that we eat now days are made up of flour and you very well know the demand of fast food like pizzas, burger, cake etc in market. Over that chapatti is a common house hold food in India, so the need of flour will be always high.
  3. Easy Loan facility: Being the best business idea, you can get easy loans from banks and financial institutions for starting the flour mill or for expansion.

Business Plan for Starting a Flour Mill Plant

Small or big, every business idea needs a well directed plan for the success. Same for starting a Flour Mill Business, study a bit to prepare a business plan about the same for getting a good return from the business unit. Below mentioned steps will for a smoother running of the business: –

  1. Training in the area: It will be difficult if you don’t have any idea of running a flour mill plant unless you have worked in any other plant or have training about the same. You should have the training of running the equipment and about the use of ingredients to produce the finished product. A little knowledge about the repairing of the machines is also very helpful.
  2. Branding and Legal formalities: Registering your brand as a company will help you in future for the expansion of the business like a limited liability company and this also helps to patent any new product in your company’s name.
  3. Infrastructure: You cannot start a flour mill business from your home, for that you need a relatively bigger space for fitting your machineries, stocking your raw materials and finished products etc. If you don’t have your personal place, you can opt for renting or leasing a space. Before choosing the location, you also need to check the accessibility of the same with the transport system. It will be helpful for easy shipping of raw materials and finished products.
  4. Raw Materials: As mentioned earlier, India is the second largest producer of wheat, so for your flour mill plant it will not be difficult to get a raw material supplier. Farmers producing wheat are the best source to get the best raw materials in a relatively less price.
  5. Customers: Bakeries, confectioneries, pharmaceutical companies are the big customers of flour mill plants. Contact your local authorities about your business and send your proposal of supply of the finished products. Send quotation with the sample of your product. Promoting your product will also help to contact the customers like handbills or social media or billboards etc.

Flour Milling Business or whatever business you choose form, maintaining the quality is the key to success. So grab the opportunity of becoming your own boss and earning a huge margin with flour mill plant.

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Nabanita Kundu
Hey Friends, I’m Nabanita Kundu, 33 years old stay-at home mom who have finally set up her own world by becoming a full time blogger. I started my blogging journey with HomeBusinessIDeasCenter.com with a dream to help aspiring entrepreneurs who want to succeed in home based businesses.