Dairy Product consumption in India has been record-breaking over the years. The excessive demand in the market has contributed to making the business of dairy or milk product store a profitable idea. With an entrepreneurial perspective, the business plan of starting a Milk product store in India is great for small scale business ideas and for getting the maximum profit.
Milk Bar is basically a business that features a variety of dairy products like milk, cheese, yogurt, chocolate, milk powder, etc. The business of the milk product deals with selling these products to the customers directly.
There are a number of things that need to be considered before starting your own dairy bar. The first thing will be getting some insights into the procedure of the dairy bar distribution process. This will help you in determining whether this business choice is right for you or not.
In this article, we have discussed various aspects related to the business of milk products. The detailed discussion will help you get a basic understanding of how to start your own milk product store in India.
- 1 Market Research
- 2 Basic Requirements
- 3 Milk Product Distribution Process
- 4 Milk Bar Products
- 5 Franchise In Dairy Business
- 6 Margin in Dairy Business
- 7 Required License And Permits
- 8 Conclusion
Researching remains an integral part of any business plan. It provides us all the insights that are needed for the beginning, execution and running of an idea. Market research on dairy products involves doing a detailed study of each and every product that you are going to sell at your milk product.
Search about all the aspects related to the successful planning of a milk product business. This includes finding out all the relevant knowledge about the raw materials that are required for the manufacturing of dairy products, finding out the ideal location, getting insights about profit margins, license, and permits required for setting up a milk bar in India, etc.
An important part of the research involves investigating the competition. If you are starting a small scale milk product business then your competition will be all the small scale milk products or dairy products in India. In the competitive analysis, you need to research about their execution methods, marketing strategies, an investment source, customer base, etc.
Doing the research on competition will not only help you in getting ahead of them but will also improve your own personal growth.
In order to start your own dairy product store in India, there are some basic requirements that you need to fulfill in order to execute your plan. The business essential for your milk product store is as follows:
1. Commercial Unit
The commercial unit is the basic requirement of any product-based industry. To set up a commercial unit you are going to need land. The area of your land depends on the scale of your business. It could range anywhere from 50 feet to 1000 feet depending if it is large or small scale business.
Running your own milk bar requires you to do a lot of tasks that you can not perform solely, and that is why you have to hire people on the basis of their skills to handle your store.
For the milk bar, you will need a manager who will look after everything, an accountant who will keep account of every rupee spend and profit generated, salespeople, cleaner, employees for other basic tasks like loading and unloading, etc.
3. Investment Source
Like any other business idea, running a milk product store also requires you to have some significant amount of money that is needed for your business. For investment sources, you can take business loans from private or government banks.
But for that to happen, you need to take your whole strategy to the bank and present your plan in an impressive manner. If the bank is convinced that your business idea is sensible then they will grant you 70% of the required amount for the business.
4. Raw Material For Dairy Products
The raw material will depend upon the kind of products that you will be having at your milk bar. For example, for chocolates, you will need cocoa, sugar, butter, and milk. However, one ingredient will remain the same in all these products and that is milk.
The raw materials should be collected from the dealer that deals with the processing and distribution of milk.
Milk Product Distribution Process
Sourcing of milk is done from the distributors of milk with wholesale business. Find the distributor with a milk processing plant or distributor who provides milk in wholesale quantities. You can also take help from dairy farms.
Milk Bar actually leave you with two options when it comes to the availability of other products in your business. You could either make the other products at home or have it available directly from the manufacturing and processing units.
After making the milk available, now it is time to store the milk. This step should be done carefully because if not stored in the right place, the milk can go bad. The storage should be stored in a cold and dry place in a refrigerator that will prevent the milk from expiring.
3. Customer Base
To create a customer base you will need to develop varies strategies. The marketing of your products should be done from a customer’s perspective. You can also add several varieties of items in your milk bar and focus on each age group and their likes.
Giving discounts, coupons, buy one get one offer, will also help in attracting the customers. You should also distribute the leaflets about your business to the neighborhood area in order to spread the word about your business. Take help from social media, google, a website to attract customers from online platforms.
4. Quality Control
Quality has played a great role in any business type whether it is service-based or product-based. Quality will help you in engaging the customer base and will somehow help in attracting the new ones.
In order to take care of the quality of your products, you need to ensure that you are using fresh products and good quality products. There should be hygiene at your workplace and all the containers should be cleaned. Even the area of your milk bar should regularly be cleaned and maintained.
Milk Bar Products
There are a variety of products that you could keep at your milk bar by focusing on various age groups. One of the most famous products belonging to the milk bar are:
1. Milk Bar Chocolates
Chocolates are undoubtedly one of the favorite things among people. Chocolates are of various types depending upon the ingredients, color, shape, size, etc. You could keep a variety of chocolates at your milk bar like dark chocolate, marble chocolate, orange-flavored, milk chocolate, nutty chocolate, caramel chocolate, chocolate chips, etc.
2. Ice Cream
Ice cream, the melting heaven in the mouth can not be left behind when talking about milk bar. Ice creams, too come in a variety of flavors, like vanilla, strawberry, chocolate, oreo, butterscotch, black current, etc.
Cakes are other people’s favorite food items to be listed here. Cakes come in different flavors and styles such as ice cream cakes, truffle cakes, dry cakes, muffins, cupcakes, chocolate cakes, etc.
Make your milk bar cheese lover’s paradise by the availability of different kinds of cheese. For example, processed cheese, mozzarella cheese, Parmesan, cheddar, etc. For sourcing of milk, you could contact various dealers that deal with this area. Also, you could visit the processing units.
5. Flavored Milk
Flavored milk, as the name suggests, is milk with various flavors in it. Flavored milk comes in different varieties, such as strawberry, chocolate, vanilla, butterscotch, etc. You could make the flavored milk at your milk bar or have it sourced from someplace.
So these were some of the most favorite products for a dairy business. The availability of these will contribute to making your idea successful. You could also keep various other products like butter, cottage cheese, buttermilk, yogurt, cookies, etc.
Franchise In Dairy Business
Franchise in dairy business is a great option because it gives you the initial push that is required for starting your own business. Franchise works by paying some kind of amount to the franchise provider, they will help you in setting up the business as per their own standards. Then they will also provide you with their products that you can keep in your milk bar.
The dairy business is known for providing franchises at low rates as compared to a franchise in other sectors. Some of the famous brand franchise are:
Amul is a big name in the dairy business in India. It has been serving the nation for years with its products. For taking Amul’s franchisee you will have to invest somewhere between Rs. 1.5 lakhs to Rs. 6 lakhs.
2. Mother Dairy
Another successful dairy business in India is Mother Dairy. Mother dairy also provides a significant investment figure to start your milk bar. This franchise will need you to invest from 5 to 10 lakhs in the business.
Apart from these famous franchisees, you could also look up to others such as Lassi Wala, Gianis foods Pvt ltd, creamy foods limited for setting up your milk bar.
Margin in Dairy Business
The dairy business is undoubtedly a profitable business idea in India. In terms of profit margin, the dairy business has become very popular in India be it a rural area or urban area. Whether you take a franchise or not, your dairy business is more likely to succeed if you have applied the correct strategies.
It provides a significant amount of profit margin to make it a lucrative business plan. Statistically, you earn up to Rs. 6 to 30 lakhs yearly in your milk bar. This depends on various factors such as scale of your business, availability of products, quality, etc.
The margin of your dairy business is estimated by removing the cost of your investment. You need to look after several factors such as business loan interest, rent, costing of products, employee salary, electricity bill, GST, license and approval registration cost, etc. And after you take all this investment out from the earnings, you are left with your profit.
Required License And Permits
License, permits, and approval are legal needs for setting up a business in India. There are various standards set by the country that you will have to abide by in order to start your own business in India. Following are the licenses in permits that are mandatory for the legal acceptance of your business:
- GST Registration – Tax registration is not only a compulsion but it is also your duty as a responsible entrepreneur. For registering for GST, you need to visit the official website.
- Food and Safety License- In India, you need to acquire food and safety license from FSSAI in order to start any food-product based business. Click here for registration.
- Registering Your Business- For registration of your company, you will have to visit the official website of the Ministry of Corporate Affairs. Click here for registration.
- Fire Department License- Fire and Safety licenses should be acquired from the concerned department of the local authority. You will need to visit the fire department of your state. You can search for your state license department here.
The dairy business in India has been expanding rapidly due to its increased demand. Dairy is consumed by people of all classes and sectors and its demand is more likely to grow significantly in the coming years. With people being more interested in taking nutrition from dairy, the idea of dairy-based business has only proved to be profitable.
It has been reported that the need for dairy products is more than its supply in the nation that opens a wide scope of success in milk bars. The milk bar is not only a dairy product based restaurant but it also features various products that are made from the use of dairy products. The above article store all the relevant information needed for starting your own milk bar.
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