Complete Details about Dry Fruit Business Plan: Requirements, Cost, Profit Margins:

Dry fruits have a unique status in each family in any festival or function. In earlier times, they were purchased or gifted exclusively during Diwali or other celebration.  Nowadays people are knowing the health benefits of dry fruits, so they stocks dry fruits particularly for children.

With the growing interest and its use in baking, restaurant menus, confectionery, dairy items, dry fruits have turned into an important food item in such business and in every family. Presently in this digital era its benefits are known by everyone. So, to fulfill its high demand in Indian market many people want to enter this segment and planning to start dry fruit business in India. In this blog we are explaining how to start a dry fruit business in India. Here you will know about dry fruit business details, cost of dry fruit business, profit margins of dry fruit business, documents and license required for the dry fruit business, risk factors and FAQ. Let’s read more about this business.

Business Overview:

The demand of dry fruits and nuts in the Indian market is never out. We Indians always give a special value for dry fruits, especially during festivals and functions. Dry fruits have come to symbolize prosperity, goodness and happiness. People enter this business and earn good profit. Business owners sell their products through various mediums. One of the latest and strong medium is E-Commerce Sites.

According to a report, the market value of dry fruits in India stands at 30,000 crore rupees in 2021. And, this value has become triple till 2023. So there is a lot of scope for any person who is willing to do online dry fruits business in India along with the traditional way.

Read More: Complete details of Papad Making Business.

How to Start Dry Fruit Business ?

Dry fruit business is now in a great position in India due to its high consumption. If are willing to make your career in dry fruit business then you must know how to start this. Here through few steps we are trying to guide you.

• Step 1- Make a business plan

It is the primary step of your business. If your business plan is strong and practical then it will be easy to proceed. In a good business plan everything regarding your business will be mentioned like- investment, marketing, location, target customer, employees etc.

• Step 2- Register your company

It is the starting process of your dry fruit business where you have to do company registration. You have to decide the type of dry fruit business so you can get benefits. According to your business type the tax and how you will run the business will be decided.

• Step 3- Get all licenses

There are many guidelines and regulations to run a business. When you are planning to start a dry fruit business then all required license you have to get. There are some changes in rule of wholesale and retail business. The list of licenses is mentioned in this blog.

• Step 4- Investment in the business

You have to decide which type of business you want to start wholesale, retail or supplier. The initial investment you have to decide where so many expenses are included. To avoid the market risk you can start your business with a small scale.

• Step 5- Create supply chain

You need to make few supply chain network for work flow. Who will give you raw materials then how you will sell them these should be easy and hassle-free. Always compare the price and choose the best one. Select fresh and best dry fruits and nuts.

• Step 6- Select the packaging

Dry fruits require standard packaging which will protect the freshness and taste of the dry fruits for months. The packaging should be airtight and chemical free. You must careful with the packaging materials before introducing in the market.

• Step 7- Sell the product

You can reach to your target customer through many ways. You can talk to the local markets, restaurants, dairy business persons, local retailers, bakeries etc. for your product. You can apply various sales marketing techniques to reach your customers.

Types of Dry Fruit Business in India:

In India there is a great business opportunity due to its high demand in food industries and in household. You must go through a market survey before starting the business so that you will get customer’s viewpoint. In India the dry fruit industry is attractive and profitable. This is due to a business network and a vast Indian dispersion network. You can start your business in many ways. There are various types of dry fruits business types present and each has its own investment structure and profit margin. The types of dry fruit business you can go with any of these:-

• Online store for dried fruits
• Retailing of dehydrated goods
• Wholesale of dry goods
• Business of packaging dry fruit

Conduct Market Research for Dry Fruit Business:

Nowadays people are very conscious for their health. They gradually understand without good health people cannot maintain such busy life and unable to be fit. So there is a growing demand for dry fruits in India. Dry fruits and nuts have huge nutritious value and have several health advantages. They have become important household staples. The consumption of dry fruits is highest in food service, hotel industries.

The global dry fruit market has registered a CAGR value of 4% during a period from 2017 to 2021. The dry fruits business succeeds with steady earnings and good profit margin. It is assumed that the global dry fruit market will be a steady growth at a CAGR value of 5.5%. The dry fruits manufacturers are always searching the shortest path to reach the customers. They are finding new sales channel to increase their client base. If you want to make your position in the market then use the correct marketing strategies.

Location and Space Required for the Dry Fruit Business:

Location of any business is very important factor. If you are planning to start your business with a small scale then you need 200-300 square feet area. If you want to set up your business in a large scale then you need 1000-1500 square feet. This space can be divided into processing and packaging areas. It is better to own a commercial space. You also need a dry, safe and proper storage space where the quality of dry fruits should be maintained.

Read More: Complete Details about the Spice Business in India.

Raw Materials for the Dry Fruit business:

Here are some delicious and nutritious dry fruits name:

• Cashew
• Raisins
• Almond
• Walnut
• Dates
• Apricots
• Cranberries
• Pecans
• Hazelnuts
• Fig
• Prunes
• Pistachio
• Dried Apricot
• Brazil nuts
• Pine nuts
• Macadamia nuts
• Packaging materials
• Labels

Where to buy the dry fruits in India ?

There are many ways to source the dry fruits in India some of the ways are listed below:

• Wholesale Markets: Local wholesale markets are the go-to places for purchasing dry fruits in bulk. These markets are usually located in major cities and towns across India. Some well-known wholesale markets include Khari Baoli in Delhi, Crawford Market in Mumbai, APMC Market in Pune, and Jodhpur Market in Jaipur. These markets offer a wide variety of dry fruits at wholesale prices.
• Directly from Farmers: Another option is to establish direct relationships with dry fruit farmers and producers. This approach allows you to bypass intermediaries and procure dry fruits directly from the source. Farmers’ markets, agricultural cooperatives, and rural areas where dry fruits are grown are potential places to connect with farmers. This method often ensures freshness and may offer cost advantages.
• Dry Fruit Mandis: Certain regions in India have dedicated dry fruit mandis or wholesale markets where you can directly purchase dry fruits from farmers, wholesalers, and traders. For example, in Jammu and Kashmir, the Aloo Bazaar in Srinagar is a renowned dry fruit market. Similarly, Pathankot Mandi in Punjab is known for wholesale dry fruit trading. Exploring local mandis can provide direct access to bulk quantities at competitive rates.
• Online Wholesale Platforms: Online marketplaces can also be utilized for wholesale purchases of dry fruits in India. Platforms like IndiaMART, TradeIndia, and Alibaba offer opportunities to connect with verified wholesale suppliers. These platforms provide a wide range of dry fruits, enabling you to compare prices, quality, and place bulk orders conveniently.
• Networking and Trade Fairs: Networking with industry professionals, attending trade fairs, and participating in business conferences related to dry fruits can help you establish connections with wholesale suppliers. These events provide a platform for interacting with manufacturers, distributors, and wholesalers, facilitating bulk purchases and building relationships.

When starting a Dry Fruit Business, it is important to ensure the quality, authenticity, and freshness of the products. So, before purchasing the dry fruits must checking their certifications and licenses, and conduct sample tests can help in selecting reliable sources for your business.

Machines, Equipment and its price:

If you are enter the dry fruits business then you need following basic machines. Here is the price of machines also given below-

• Packaging machine- Rs. 3 lakh- Rs.4 lakh (Approx.)
• Sorting Machine- Rs. 60,000- Rs.90,000 (Approx.)

Read More: Complete Guide on starting a Bakery Business.

Documents & License Required for Dry Fruit Business:

You required the following licenses to start a dry fruits business:-

• GST registration
• MSME registration
• Trade license
• FSSAI registration and certificate
• IEC registration

Staffs Required for Dry Fruit Business:

The staffs required for retail or outlets based dry fruit business would be 1 skilled and 2 unskilled workers. If you want to start wholesale business of dry fruits then 3 skilled workers and 5 unskilled workers required.

Investment Required to Start Dry Fruit Business:

Dry fruits are rich source of vitamins, minerals, unsaturated fats, magnesium and iron. It has a great health benefits. Dry fruits business is profitable in India and abroad, but the costs of dry fruits are high. There are many varieties of dry fruits available in India. There are many challenges with dry fruit business, so it is advisable to start from a small scale to avoid risk. The investment required to start a dry fruit business can vary depending on the scale and nature of the business. But initially you need to invest 3 lakh – 5 lakh to start the business. If you will be able to run the business successfully then you can expand your business.

Profit Margin of the Dry Fruit Business:

Dry fruits business is very profitable and attractive. It is not like seasonal products business where you have time period boundaries or risk. Dry fruits business is throughout year business. If you are capable enough to run the business then you can earn a good profit every year.

And the profit margin of a dry fruit business can vary depending on various factors, including the cost of procurement, operational expenses, pricing strategy, market demand, and competition. While it is difficult to provide an exact profit margin figure as it can differ from business to business. But minimum a person can earn 50,000- 1 lakh rupees per month from a dry fruit business. The approximate profit margin is 20%-30%. It will increase in festive season.

Marketing Activities for Your Dry Fruit Business:

After completing all your necessary work regarding the business you are ready to start your business you must go for a strong marketing activities. Without a strong marketing you will not be able to beat your competitors. There are huge suppliers, wholesalers are present in your target location, only your product quality, service and sales marketing strategies can help to survive in this competitive market. You have to do traditional marketing as well as digital marketing for your business.

You can enlist your business in Google my business page and other directories to reach local customers. Make an effective website and promote the site through Google Ads, Social Media Marketing, SEO etc. Make leaflets and distribute in your local area. You can give advertisements in TV and newspapers. Talk to your local retailers, dairy business persons, hotels and give offers and discounts to make a client base. Remember if you are consistently seen on the internet then you will definitely win the race.

Read More: Complete Details on Starting Food Catering Business

Risk Factors of Dry Fruit Business:

While starting the dry fruit business you have to face many challenges and risks. Here are few major challenges faced by the business owner are given below-

• High Govt. duty and market fluctuation

Govt. apply high duties on import of dry fruits about 10%-25%. These duties are not valid on locally produced dry fruits. In local market the price of the dry fruits fluctuate and it is a big challenge faced by all local sellers.

• High competition

There are several dry fruits merchants, sellers are established and run their business for many years. It is really a big challenge for the new business person to maintain their business in this high competitive market.

• Product quality and packaging

It is one of the major risks to maintain the product quality all time with standard packaging. If you are selling local non-branded products then you can choose any good package materials but if you are selling branded dry fruits then you have to maintain all standards, otherwise the buyers won’t buy your products.

• Storage facility

Dry fruits are very costly products so storage facility of the dry fruits should be up to the mark. The taste, freshness and smell are the main things of dry fruits. If you want to run you business successfully then you must look for standard and high facilitate storage area which keeps your products fresh for months.

Conclusion:

In India you can experience a profitable business like dry fruits supply by providing good quality dry fruits and nuts. Dry fruits are nutritious and beneficial for health, and have a great consumer base. As a result, they provide vast scope for business in India. Dry fruits should be kept in a proper suitable storage which can maintain the taste and freshness of the nuts and dry fruits. You should follow a suitable marketing strategy and relevant rules and regulations for your business to succeed.

If your planning and sales strategies are good then you may be able to make money by selling your products on the internet. In this article we have tried to provide you all relevant information about dry fruits business in India. Be patient and after some time this business will give you great result.

FAQ(Frequently Asked Question):

Q. What are the key steps to start a dry fruit business in India ?

Ans: The key steps to start a dry fruit business in India include conducting market research, creating a business plan, procuring necessary licenses and permits, sourcing suppliers, setting up a distribution network, and implementing effective marketing strategies.

Q. Where can I source dry fruits for my business ?

Ans: Dry fruits can be sourced from local wholesale markets, direct suppliers, dry fruit mandis, online marketplaces, and specialty dry fruit stores. Building relationships with reliable suppliers is essential for procuring quality products at competitive prices.

Q. How much cost required for a small and large scale business?

Ans- You need 3 lakh – 5 lakh to start a small scale business. When you are willing to start with in large scale then you need 15 lakhs-30 lakhs rupees.

Q. How can I ensure the quality of the dry fruits I sell ?

Ans: To ensure the quality, consider sourcing from reputable suppliers who follow quality control measures. Request samples, check for certifications like FSSAI, and conduct regular quality checks. Building trust and maintaining good relationships with suppliers can help ensure consistent quality.

Q. How should I price my dry fruits ?

Ans: Pricing should consider factors such as procurement costs, operational expenses, market demand, and competition. Analyze market trends, study competitor pricing, and determine a pricing strategy that allows for a reasonable profit margin while remaining competitive.

Q. What is the profit margin of a dry fruit business?

Ans- The profit margin of a dry fruit business is 20-30%. It can increase in festivals and the profit margin rises every year.

Q. What are the target customers of dry fruit business?

Ans- The target customers of a dry fruit business are- sweet shop, ice cream shop, bakery, dairy and confectionary, supermarkets, retail shop, catering service, restaurant, online grocery portals.

Q. What are the basic required quality parameters of a dry fruit business?

Ans- The basic quality parameters of a dry fruit business are- taste, expiry date, hardness of dry fruits, bad odour, discoloration.

Q. What marketing strategies can I use to promote my dry fruit business ?

Ans: Marketing strategies can include creating an online presence through a website or social media platforms, implementing digital marketing techniques like SEO and social media advertising, participating in local events and trade fairs, offering promotions and discounts, and emphasizing the quality and health benefits of dry fruits.

Q. Which countries are the biggest importers of dry fruits in India?

Ans- China, Germany and Italy are the biggest importers of fry fruits in India.

We hope that you would have liked reading this blog post on How to start Dry Fruit Business in India. For more such informative articles, keep visiting YMW Solution.

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