Regardless of the season or circumstance, dried fruits have always occupied a special place in every family. They were usually brought in or rather gifted at Diwali or other holidays in the past. On the other hand, dry fruits have become a household staple in recent years. As the health advantages of dry fruits have become more widely recognised, every home now keeps dry fruits on hand, particularly for youngsters. Dry fruits were only available periodically in exclusive shops from select suppliers and retailers until recently. These dry fruits have become a basic food item in every family due to rising health awareness and their use in baking, confectionery, and dairy products.
Extreme drying processes are used to minimise the water content in fruits, resulting in dry fruits. Some of the most famous dry fruits that may be stored without refrigeration include cashews, raisins, walnuts, almonds, and dried figs. This article will offer you information on establishing a dry fruits business in India and how much profit you can expect from this venture.
Did you know? Dried fruits were first mentioned in 1500 BC on Mesopotamian tablets as part of recipes.
Is it profitable to run dry fruits business in India?
- People are becoming increasingly aware of their health, switching to dry fruits as snacks instead of junk food. This has led to the increasing popularity of the dry fruits business during the last several years.
- According to current market data, the trade-in of dried fruits is significant both in India and globally, and it appears to be progressing.
- The market for dried fruits such as cashew nuts, walnuts, almonds, raisins, dates etc., imported from other countries is fast expanding. With this in mind, beginning a dry fruits business can be lucrative.
- Profitability for the dried fruits business in India is as high as 5-10% annually, with a small investment in resources as stated below. Profit margins vary based on the channel chosen, such as online or retail. The margins might be relatively large with an investment of ₹2-3 lakhs.
- If you want to increase profit margin further, focus on the packaging and branding of dried fruits. People assume packaged dried fruits to be of better quality.
- Due to improved living standards, people are now more drawn to healthy eating habits, especially during special events and holiday seasons. As a result, you may expect the profit margin to expand even higher during festival seasons.
How to start a dry fruit business?
.Before starting a dry fruits business, there are a few things you need to know -
1. Get a licence, permit, and registration
To start a dry fruits business in India, you'll need to obtain the necessary licences, permissions, and registrations.
- First and foremost, you must identify your organisation's management design and then begin your business.
- The company falls underneath the food industry sector and must obtain permission from India's Food Safety and Standards Authority (FSSAI), which may also be done online.
- First, fill out an application for MSME Udyog Aadhaar, which may be done online.
- Next, find out about the necessary trade licence issued by the local municipality.
- It is now a legal requirement to register for GST.
- You'll also need to apply for a PAN card for your firm.
- Attempt to open a current account with one of the neighbouring banks.
- After that, you must apply for Bureau of Indian Standards (BIS) certification.
- It is also necessary to examine the tax responsibilities for this firm.
2. Keep a watch on your rivals
Examine all of your rivals in the area where you intend to open your business. You may learn a lot about the dry fruits business by evaluating your competitors. Consider carefully and decide on a comfortable mindset on building your business to make it excellent and distinct from your rivals.
3. Before starting a business, talk to established entrepreneurs
Before starting any business, especially one that deals with dried fruits, it's a good idea to speak with someone experienced in the dry fruits business. Their suggestions may even help you manage a profitable business.
4. Know the cost of establishing a dry fruits business
You'll need to invest between ₹3 lakhs and ₹5 lakhs to get started to start a small dried fruit business. You can start small, build a brand, and then expand to a larger scale.
You can also start a large-scale company if you have higher capital.
5. Find out where to source goods from for a dry fruit business in India
- You may have difficulty with brand awareness in the early stages of your firm. Customers will be unfamiliar with a new brand; therefore, effective marketing is required.
- It is recommended that branded items be used to attract customers and advertise offline or online marketing methods. You can opt for both.
- You can obtain dry fruit at a reduced price from various wholesalers at a lower cost from Khari Bambari Market, Delhi Near – Chandni Chowk, Lalkila (Khari Babri market, new Delhi Near – Chandani choke, alkali).
- There are no restrictions on transporting items in large quantities; you may also carry resources related to your dry fruits business from the location of the wholesalers to your shop.
What Factors Should you Consider While Choosing a Dried Fruit Franchise?
Before establishing your own dry fruits business, make sure you have a clear idea about the business process of a franchise. The franchise business is highly lucrative since you can expand your business on a massive scale and start multiple locations. This can bring in significant revenue for your business. The profit margin in the dry fruit business in India can be expanded by considering the points given below -.
- Be aware that throughout the winter, the market for dry fruit expands substantially, and as a result, the rate of dry fruit frequently rises. As a result, you should store up on dried fruits before the winter sets in.If you do that, you'll be able to sell it for less money in the winter. This method will provide you with 40 to 50% profitability in the dried fruit business.
- If you package it yourself and sell it, it will be much more advantageous if you promote it correctly, and you will be able to sell it for 30 to 35 months with ease.
- Furthermore, dry fruits businesses do not sell under-seasoned goods that are only good for a few days.
- Because of the improvement in living standards, people are increasingly more drawn to healthy eating habits, especially throughout special events and holiday seasons.
- As a result, you can assume the profit margin to expand even higher during festival seasons, leading to an annual 5-10% profit.
How to Market Your dry fruits business?
- By enrolling on B2B and B2C platforms, you can market your dry fruits business. You may also use social media to spread the word.
- Use internet marketing stores for advertising it. Supermarkets, mega bazaars, Dmart, and other wholesale marketplaces are good to distribute samples.
- You can also provide your fruits to be sold from snack shops by forming a network. Before that, determine which shops will accept your snacks. Alternatively, keep a store near farmers' markets and flea markets.
- Be aware of the numerous rules governing internet food sales and ensure that you follow all state and municipal regulations if you choose this route.
Due to increased health consciousness, there is a growing demand for dried fruits worldwide. Dry fruits and nuts offer several health advantages, and they are quickly becoming household staples. The dry fruits business may succeed with steady earnings if you have a compelling idea and use the correct marketing strategies. You can reap the rewards of selling these super foods while simultaneously contributing to a good cause.
By providing high-quality dried fruits, you can experience a profitable business. Dry fruits are great for health, and therefore have a significant consumer base. As a result, they provide lucrative scope for business. However, they should not be kept in the refrigerator; it is advised that you store dried fruits of excellent quality. If your dry fruits business is successful, you may be able to make money by selling your dried fruit boxes on the internet. Follow a suitable marketing strategy and relevant rules and regulations for your business to succeed.
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