Project report for custard powder

Market Landscape and Business Feasibility of Custard Powder

• Increased Preference for Easy-to-Make Desserts: People today want quick desserts, and custard powder fits perfectly. India’s dessert market grows at 10% yearly, hitting ₹20,000 crore, as busy families pick instant mixes over long recipes.
• Demand from Bakery and Confectionery Sectors: Bakeries and sweet shops use custard powder for cakes and pastries. Reports say 60% of India’s 2 lakh bakeries rely on it, boosting steady demand.
• Seasonal Sales Boost During Festivals and Celebrations: Sales jump 20-30% during Diwali and Christmas when folks make sweets at home or cater big events, giving you a clear sales spike.
• Growing Health Trends: Companies now add vitamins or natural flavors to custard powder. Health food sales rose 15% in 2024, showing people want tasty yet good-for-you options.

• B2C (Housewives, Students, Working Professionals): Housewives whip up quick treats, students enjoy easy snacks, and workers need fast meals. India’s 50 crore urbanites form your core buyers.
• B2B (Hotels, Bakeries, Cafes, Caterers): Hotels and cafes use custard for desserts, while caterers stock it for parties. Over 1 lakh food businesses in India buy bulk.
• Export Possibilities: Middle East and African nations buy Indian food worth ₹5,000 crore yearly. You can tap this with quality custard powder.
• Potential in Online Retail and Supermarket Chains: Online food sales hit ₹1 lakh crore in 2024, and chains like Big Bazaar stock custard, making it easy to reach buyers.

• Raw Materials Availability: You can source cornflour, flavors, and colors cheaply in India, with corn production at 35 million tonnes yearly.
• Machinery & Space Requirements: You can set up with mixers and packers for ₹5-10 lakh, needing just 500-1,000 sq. ft. of space.
• Regulatory Requirements: You can meet FSSAI rules for food safety and aim for ISO of exporting, ensuring trust and quality.
• SWOT Analysis: Strengths include low costs and high demand; threats cover price wars; opportunities lie in exports and health variants.

Financial Insights and Business Advantages of Custard Powder

• Land/Building (Owned/Rented), Machinery & Equipment: You can rent a small place, about 500-1,000 sq. ft., for ₹20,000-₹50,000 a month. You can get mixers, dryers, and packing machines for ₹5-10 lakh, based on how much you want to make.
• Cost of Raw Materials: You can buy cornflour, flavors like vanilla, colors, and packing stuff for ₹50-60 per kg. If you make 1,000 kg a month, it costs ₹50,000-₹60,000.
• Licensing and Certification Costs: You can pay ₹7,500 a year for an FSSAI license to sell food safely. MSME registration costs nothing, and an optional ISO certificate costs ₹20,000 to look more professional.
• Total Capital Investment Estimate: You can start with ₹10-15 lakh for a small setup. This covers machines (₹7 lakh), setup (₹5 lakh), and extra money to run it (₹2 lakh)—a table can show this clearly.

• Low Manufacturing Cost and Long Shelf Life: You can make custard powder for ₹60-70 per kg, and it stays good for 12-18 months. This keeps your costs low and stops waste.
• High Profit Margin Due to Value Addition: You can sell it for ₹120-150 per kg, keeping ₹50-60 profit per kg. If you sell 1,000 kg a month, you earn ₹60,000-₹80,000 after costs.
• Business Scalability: You can add things like jelly mixes or pudding powders to grow bigger. Many small businesses double their products in 2-3 years.
• Break-even Point Analysis and Estimated Profit: You can get your ₹10-15 lakh back in 18-24 months by selling 1,000-1,500 kg a month. Yearly profit can reach ₹7-10 lakh.
• Additional Income Streams: You can make more money by putting store names on your packs, selling to schools or hotels, or sending it to places like the Middle East, where people buy 5% more each year.

Start Your Custard Powder Brand with the Best Project Report for Custard Powder Manufacturing Business