How to start a Dry fruit business in 2024?
Dry fruits are very close to my heart. I work out 5 days a week and always try to eat healthy food. One of the most healthiest vegan food on this earth are dry fruits, so I always make sure that I will have a bunch of them everyday. Due to this health factor, there is a huge demand and scope for dry fruit business in India. India is the 3rd largest producer of dry fruits in the world, there has been a consistent increase in the production of different types of dry fruits. Furthermore, people use dry fruits in different cuisines such as sweets, cakes, milkshakes and pastries. They even gift a box of dry fruits on different occasions and festivals and even as a gift at weddings. So, I think the demand for dry fruits in only going to increase in future. So lets see how to start dry fruit business in 2024.
Pros & Cons to start a Dry fruit business
| Pros | Cons |
|---|---|
| Huge health-conscious market | High competition |
| Long shelf life | Storage and handling challenges |
| Diverse product range | Price sensitive market |
| Versatility in usage | Dependency on suppliers |
| Global market potential | Quality control |
Investment required / Profit margin
You don’t need a too much space to start this business. You can very well start this business from home. The investment required to start this business in INR 200,000. The profit margin is also very handsome in the business which is around 30%.
| Expense Category | Estimated Cost |
|---|---|
| Business Registration and Licensing | 10,000 |
| Rental Space (3 months) | 30,000 |
| Stock of Dry Fruits | 100,000 |
| Packaging Materials | 20,000 |
| Marketing and Branding | 40,000 |
| Total Investment required | 200,000 |
Steps to follow to start a dry fruit trading business
1. Research, planning and decide the location:
This is one of the most important step before starting a dry fruit business in India. You need to undertake an extensive research about the location, competitors, type of dry fruits, etc. Location is crucial if you are starting a dry fruit store, needless to say, you need to find a location where there is less competition and high demand. To start with, a space of 250 sq ft is also sufficient.
2. Create a brand name and a website:
Develop a brand identity, including a logo, color scheme, and brand name. Brand name should be catchy & simple. Then you should also create your logo and tagline. You can easily create a logo for free using various websites for example, www.canva.com. Further, you should also create an impressive website for better branding.
3. Obtain required licenses:
Next, you need to register your business and obtain any necessary licenses or permits as below
- FSSAI (Food Safety and Standards Authority of India) https://www.fssai.gov.in/
- Udyam registration http://udyamregistration.gov.in/
- GST (Goods and Service Tax) registration https://reg.gst.gov.in/registration/
- Company registration like private limited company, partnership or proprietorship firm. I would recommend starting with a proprietorship firm first, then when your business grows you may get into a private limited company.
- PAN card (if it’s a private limited company or partnership, not required if you are starting as a proprietor).
Also open a separate current bank account if it’s a private limited company or partnership, not required if you are starting as a proprietor
You can obtain these licenses directly if you have required knowledge. However, I would recommend taking help from a CA or lawyer.
4. Interior set up and buy required stock:
Next step would be to set up your store by installing required furniture and fixtures. More importantly, you need to place your first purchase order for your store. You need to make sure that your stock matches the public demand. Although it would be a trail and error process but you may do a little research before ordering.
5. Hire skilled manpower:
If you have some prior experience then you may not need a manpower initially. You may then consider of hiring a suitable person who can assist you.
6. Marketing & promotion:
Lastly, you need to spend on marketing and promotion of your store before and after starting the store. You may try the traditional ways like print and distribute pamphlets, hoardings, etc. and also the new ways of promoting on social media. This would be even more important if you are starting this business from your home, otherwise it would be very difficult to find customers.
Conclusion
Summing up, this is all you need to start dry fruit business. It is a growing business and here to stay for long period of time. Further, it is also one of the most profitable business with minimum risk and investment. However, I would still say it is not going to be easy and you need to work very hard at least in the initial phase.
I hope you enjoyed this post and have learnt something out of it that would help you in starting this business in India. If you think I missed out any point and you have any confusion, feel free to share your comments.
