Bakery Business Plan in India – Cost, Profits, Licenses Required

Bakery Business Plan: Are you a pastry chef wanting to do something on your own? Or maybe you just consider yourself a baking enthusiast and think it’d be interesting to see what it’s like to try out the professional side of things. Regardless of who you are or what led you here, we’re passionate about encouraging others to start their big dreams in the bakery business.

The bakery business is one of the best businesses in India. The baking business has taken on a life of its own in recent years. There are many new food businesses that are springing up each day with innovative desserts, macarons, and fusion desserts. The scope is limitless when it comes to the bakery business in India. And to help you start the bakery business here is a detailed page that talks everything about how to get started with the bakery business. Read further to find out more.

Is Baking a Profitable Business in India?

Before understanding the bakery business plan details, it is extremely important for one to know if starting a baking business in India can fetch them a profit or not.

So, according to sources, the survey, which took place in 2018, says that the bakery business in India has generated 720+ crores in revenue. Also, sources suggest that if the bakery business is executed properly, then by the year 2024 it can generate a revenue of 1,200 cores.

With the above insights, we are pretty sure you are further motivated to start a bakery business in India. So why wait? Let’s understand the small bakery business plan in India and get started with the same.

How Much Does It Cost to Start a Bakery in India?

If you are willing to start the business, we are pretty sure that you will have the question “How much does it cost to set up a bakery?” And to help you understand the bakery business costs in India, here is a detailed table that outlines everything about the bakery business plan.

Bakery Business Cost-Breaking Structure in Detail

Since the bakery business can be started on a small scale or a large scale, one must also be aware of the detailed cost structure. The detailed break-up cost of the bakery business plan is tabulated below:

Bakery Business Plan in India

Preparing a bakery business plan is no cakewalk. One will have to consider multiple aspects before getting started, and a detailed step-by-step guide for starting a bakery in India is outlined below:

Step 1: Select the Bakery Business Type

Before drafting your business plan, choose what type of business you will be starting. There are three types of bakery businesses in India, and they are:

1. Store Bakery: This type of bakery can be found in almost every city in India. Bakery is similar to the grocery shops that sell only baked food and other snacks. Individuals with good baking skills can set up a store bakery.
2. Cloud Kitchen Bakery: This type of bakery is popular with takeaway customers. Usually, a person with good baking skills can set up a cloud kitchen or bakery and start delivering the customer’s needs without dine-in options.
3. Home Bakery: A home bakery is for those who want to test out their baking skills, bakery business, and others. Home bakers can start the business with low investment and sell the limited bakery items and test out how well the business performs in the market.

From the above three options, choose the best option that goes with your investment and risk analysis. Once you have chosen the business type, move to Step 2.

Step 2: Select a Location for Your Bakery Business

Once you have chosen the bakery business type, choose the location where you want to start the bakery. Some of the factors to consider when selecting a bakery business location are as follows:

• Make sure you are setting up your bakery in public places such as markets, bus stops, colleges, etc.,
• Choose a place that has all the facilities, right from water to electricity.
• Always choose the store on the ground floor for easy access for the customers.
• Setting up a bakery in a high-street shopping area will help you acquire more customers.
• Most importantly, choose a place that fits your budget.

Step 3: Obtain the Required Licenses for Bakery Business

Once you have chosen the location, you will have to obtain all the licenses that are required to start the bakery business. The list of licenses that one requires to start the bakery business in India is as follows:

• A Fire Licence: After the installation of fire extinguisher cylinders, you will receive a fire license.
• FSSAI Licenses: This can be obtained either online through the FSSAI website or through an agency that will charge you a processing fee.
• GST registration: with the help of your Chartered Accountant, this may be completed.
• The Health License of the Local Municipal Corporation: This can be obtained with the assistance of a local municipal health inspector.

Step 4: Purchasing Equipment for a Bakery Business

Once the required licenses are obtained, one must also purchase the required equipment to start the baking work. Based on the bakery products you sell, you can purchase the required equipment. The list of equipment that one will need to run the bakery business is as follows:

1. Baking Trays
2. Deep Freeze
3. Gas Cylinders
4. Microwave
5. Milk Pots
6. mixing bowls
7. Ovens
8. Planetary Mixers
9. Utensils
10. Weighing Scale
11. Working Table
12. Raw ingredients for baking, such as baking powder, salt, sugar, and other ingredients,

Step 5: Recruiting Employees for Bakery Business

Manpower is another important aspect of your business. You will need to hire staff that has some experience in the bakery industry. The amount of manpower required would vary for small, medium-scale, and large-scale businesses. You should decide how many resources need to be utilized at a specific time so that there aren’t too many people doing things at once, overloading the business.

Thus, it is important for you to reach out to several different bakeries in your area and ask how they manage their workforce. However, any bakery would need the following owners to start a bakery business.

1. Cashier
2. Chef
3. Cleaners
4. Commi-level chefs
5. Head chef
6. Waiters/helpers

Step 6: Promote Your Bakery Business

Finally, but not least, it is extremely important to promote your bakery. And the solution to both is marketing. Marketing is one of the most important steps in selling your products. This is an essential step for sales. You can expand your bakery business by running promotional offers, distributing pamphlets, and asking a friend to refer your bakery.

By doing so, your product will not only be marketed but also sold.

To wrap it up, starting a bakery is definitely a good idea, if you are really passionate about the baking business. A bakery business never fails to fetch you profits if it’s done in the right way. All it takes is a bit of hard work and the necessary skills, and in a few days, you will see yourself as a happy bakery business person.

If you found this article to be helpful, then do let us know how this page helped in the comment box below 🙂