How to start a food packaging business?
Startup

How to start a food packaging business?

You must be familiar with many food delivery platforms. But, are you familiar with the fact that packaging these foods is in itself an entire industry.

A practical roadmap and planning are essential to the success of any business. We discuss how to start a food packaging business in this write-up.

How do I start a Food Packaging Business?

  1. Planning

The market that one intends to target must be chosen during the planning stage. Packaging is a flexible industry. One must therefore concentrate on a particular market.  In your packaging business plan, do some research and review the data of what is setting and trending. For this, one needs to create a strong business plan that will enable the enterprise to succeed.

Second, one must consider the available resources and the capital requirements of the packaging industry. Understanding how much packaging the organisation needs is crucial for managing costs successfully. Saving for unpredictable circumstances is also a crucial at the same time. Last but not least, a successful balance between supply and demand is necessary to maintain the business.

Also, read What is the Electricity (Amendment) Bill 2022?

        2. Execution

The company is given a specific name at this point. The ideal business name is succinct, noticeable, and representative of what it provides. The business entity must register under the Food Safety and Standards Act of 2006 (FSSAI) at this step by selecting the proper company structure for its operations. LLPs, companies, sole proprietorships, and partnerships are some of the most popular business structures. This registration grants the company the necessary license to conduct business.

A packaging company should also think about going online through one of the many consumer-friendly e-commerce platforms available for it to succeed.

At this stage, the following things should be made available:

  • Trademark registration
  • Seller's Permit/Vendor's License
  • Non-disclosure Agreement
  • Employee Contracts and offer letters
  • Business Plan
  • Website Terms of Use Agreement

These documents should ideally be drafted by professionals equipped with the requisite skills.

  3. Promotion and Launch

A strong marketing plan is necessary to ensure that the company that sells food packaging reaches the target market. Ideally, promotion should be carried out both online and offline. At this phase, test marketing should be done frequently.

IS FOOD PACKAGING PROFITABLE ?

The food packaging market is expanding quickly. The rising globalisation of trade in goods & services and the emergence of new trade forms like organised retailing & e-commerce have all contributed to the Indian packaging industry's rapid expansion, even in the pre-Covid period.

The Indian packaging sector anticipated expansion at a CAGR of 18% from 2016 to 21. Covid-19 may have considerably hindered this growth, but other industries, such as packaged food and drinks, pharmaceuticals, functional foods, and hygiene products, were mainly unaffected. These industries have experienced optimal growth in demand and production, which has increased packaging demand. 

People are more prone to wanting quick fixes for anything, including food, especially those from urban regions. As a result, the demand for packaged food or so-called "ready-to-eat food." As a result, the food packaging business is now being pushed to speed up the process.

Also read Energy conservation amendment bill, All you need to know

FOOD PACKAGING BUSINESS REQUIREMENTS

The Food Safety and Standards Act, 2006[1] has laid down the following requirements

  1. Packaged foods must be put in utensils or containers, which is safe.
  2. For dairy products, the packaging/wrapping should be mechanically sealed, and it should not be reused. It should only be kept in the storage rooms that have been designated after proper packaging.
  3. For packaging edible oils and fats, tin plates used in tin containers should meet the requirements for prime grade quality outlined in the Bureau of Indian Standards (BIS).
  4. For fruits and vegetables: Any fruit product shall be packaged in a container that is so tightly sealed that it cannot be opened without erasing the manufacturer's specific identifying mark, which should be visible on the top or neck of the bottle following the standards set by BIS. 
  5. To prevent possible adulteration or contamination of the water, drinking water should be packaged in sterile glass bottles, food-grade polycarbonate, or clean, hygienic bottles/containers made of polyethene (PE) (conforming to IS:10146), polyvinyl chloride (PVC), polyalkylene terephthalate (PET and PBT), conforming to IS: 12252, polypropylene (conforming to IS: 10910).

WHAT ARE THE TYPES OF FOOD PACKAGING

Wrappers are used for individual goods; wrappers shield food from contamination from hands and the surroundings.

A tray is a flat, thick paperboard object with raised edges to hold the product firmly in place while minimising movement.

Boxes are the simplest type of packaging, allowing for simple transportation of the food item. Boxes are frequently built of wood, corrugated fiberboard, or metal, which increases their resistance and reduces their susceptibility to damage.

Pallets – Pallets are typically used when food is transported in bulk.

Bags – Plastic bags are typically used to transport food.

Cans  Steel/metal cans are also used to transport food. These help preserve the food better.

Flexible packaging is a type of non-rigid, flexible packaging that may conform to any shape, size, or structure, as the name implies. This kind of packaging, which resembles bags a lot, shields food products from environmental factors while significantly prolonging their shelf life.

Aseptic processing is used to pack sterile food products to ensure they retain their sterility. This packaging combines paper, polyethylene, and metal and has a thick polyethylene layer.

Boxes and cartons can frequently be used interchangeably. Cartons are built from corrugated cardboard, just like boxes, and might have paraffin or plastic coating to make them more durable against moisture and other coercive agents. 

Egg cartons are moulds that are patterned like eggs and are used to transport eggs securely.

Gable-top cartons are a common choice for milk and juice since they have gables at the top that may be opened by pinching and pulling.

Folding cartons are created as flat cardboard components that the food producer can put together.

Aseptic cartons are used for processed foods that must be kept fresh for a long time.

 

Conclusion: 

"In conclusion, setting up a food packaging business in India involves a series of well-defined steps, ranging from market research and business planning to obtaining necessary licenses and ensuring quality control. This guide has aimed to simplify this intricate process by offering a step-by-step roadmap for aspiring entrepreneurs. By adhering to the outlined procedures and legal requirements, you can build a sustainable and successful food packaging enterprise in one of the world's most dynamic markets. Remember, the key to longevity in this industry lies not just in compliance and quality, but also in continuous innovation and customer satisfaction."

 

 

 


[1] The Food Safety and Standards Act, 2006.

How to register with Food Safety and Standard Authority of India
Registration & Licenses

How to register with Food Safety and Standard Authority of India

Food is one of the most essential substances for the survival of an individual, and considering its importance the government of India has set-up an authority to ensure healthy and safe food for all.

FSSAI (The Food Safety and Standard Authority of India) is an autonomous body constituted under the arms of the Ministry of Health and Welfare. This body is constituted under Section 31(1) and 31(2) of the Food Safety and Standards Act, 2006. Since the passing of this act every individual/company involved in manufacturing, packaging, distribution or selling of food is bound to get itself registered with the FSSAI. Thus, this act obliges every person engaged in the food industry to get themselves certified with the FSSAI.

The registration with FSSAI brings a lot of benefits with itself: it creates a sense of credibility in the mind of people, FSSAI sign brings a sense of goodwill, it ensures hygiene and cleanliness, etc.

WHO ARE REQUIRED TO BE REGISTERED WITH FSSAI

May you be a hawker or a giant manufacturer, every person involved in the food industry is bound to register itself with the FSSAI. Based upon the size of business there are three types of registration (discussed below). So, if any person is engaged is engaged in procurement, manufacturing, distribution, packaging, storage, and selling he is bound to take the FSSAI certificate.

Also, read How to start a food packaging business?

TYPES OF LICENSES

FSSAI provides for 3 types licenses:

  1. Basic License (Petty Business): It is the most primary kind of license issued to small business having turn-over of below 12 Lakhs. It must be noted that catering business, irrespective of their turnover, have to apply for state license. For registration we need to fill ‘Form A’.
  2. State License (Medium Business): Companies having profit above 12 lakh rupees are supposed to apply for state license. For registration we need to fill ‘Form B’.
  3. Central License (Large Business): Companies having turn-over of over 20 crore rupees have to apply for central license. All the firms supplying food to central government body needs to have a central license, further all online sellers, franchising businesses etc. are also supposed to get the central license. For registration we need to fill ‘Form B’.

DOCUMENTS REQUIRED FOR REGISTRATION

  • Duly filled and signed application form
  • Passport-sized photographs
  • Identity proof of Applicant (Food Business Operator)
  • Proof of property ownership
  • Address Proof
  • Business Address Proof
  • Rent Agreement
  • Food safety management system plan
  • List of food items to be used
  • Certificate of incorporation

Further for manufacturing units the following documents are also to be given:

  • The blueprint of warehouse, plant, etc.
  • A list of all machinery
  • Report of a water test
  • List of all food categories

PROCESS OF REGISTRATION

Online Process

For online registration one needs to go to FSSAI website and fill the FORM A or FORM B (Form A for petty businesses, and Form B for center and state license). All the forms needs to be duly attached with all the relevant documents. Once the form is filled and submitted online the Department will scrutinize the application and will either approve or reject the application. Before accepting the department may also conduct inspection of the site. The decisions as to approval or dis-approval is to be taken within 7 working days of application. Once the application is approved the department shall issue a registration certificate with a unique registration number and photo of the applicant on the certificate. Such certificate is send on their registered e-mail address.

Steps for offline registration:

    1. The food business operator (FBO) needs to visit the registration authority’s office and needs to collect the desired form from the authority i.e Form A {for petty business} or Form B (for large or medium sized business}
    2. After collecting the form he needs to fill the same and submit it to the registering authority to get himself registered. A minimal payment of Rs. 100 is to be made in lieu of the fees.
    3. After submitting the application, his form will be scrutinized, he shall be given a 14 digit unique application reference number
    4. Once the form is submitted for scrutiny, the applicant shall receive the status of acceptance or rejection of his application.
    5. If the application is accepted, he shall be issued a registration certificate
    6. On receipt of acceptance, the FBO is entitled to begin his business
    7. It must be noted that, if required, at any time, the registering authority may issue notice for inspection of the place of business
    8. Inspection is to be completed within a period of 30 days, and post that the FBO is entitled to start his business.

FSSAI REGISTRATION STATUS

Once the application is submitted, the FSSAI provides with the facility of checking the status of our application on their websites’ ‘Track Application Status’ tab. When the status shows as ‘Application Reverted’, it means that our application has been rejected and reverted back for necessary changes or for clarifying certain facts. If the application is reverted, the applicant needs to submit his response/clarification within 30 days of such reverting. If the status shows as ‘Certificate Issued’ it would mean that the registration is successful and you will be issued with a registration certificate, such a certificate can be downloaded from the official website of FoSCoS. Once you receive the certificate, you are free to begin your business.

Also read: What is the Food Adulteration Act?

FSSAI LICENSE FEES

  • Validity of 5 years: Rs. 5000
  • Validity of 4 years: Rs. 4200
  • Validity of 3 years: Rs. 3400
  • Validity of 2 years: Rs. 2700
  • Validity of 1 year: Rs. 2000

The certificates are valid for a maximum period of 5 years, after 5 years the certificate needs to be renewed.

For detailed list of fees click here.

PENALTY FOR NON-REGISTRATION

The provisions of Food Safety and Standards Act, 2006 provides for penal provisions in case of non-registration. If a food business operator fails to get itself registered with FSSAI he may face imprisonment of fine upto 5 Lakh Rupees.

Offence

Public Entities Covered

Fine

OFFENSE

PUBLIC ENTITY COVERED

FINE

Quality issue with the products

Seller

Rs. 2 lakh

Misbranded food products

Rs. 3 lakh

Misleading information or advertisement

Publisher or people involved in publishing

Rs. 10 lakh

Sub-standard Food

Manufacturer, Importer, Seller and Distributor

Rs. 5 lakh

Not complying with FSO

FBO or importer

Rs. 2 lakh

Unsanitary or unhygienic processing or manufacturing

Processor or Manufacturer

Rs. 1 lakh

Food Containing inessential items

Manufacturer, Importer, Seller and Distributor

Rs. 1 lakh

 

 

What You Should Know Before Starting A Restaurant Business
Registration & Licenses

What You Should Know Before Starting A Restaurant Business

In 2023 the food business in India is growing quickly. Millennials eat out because it's cheap and has become a part of their culture. Because of this, a lot of people have gone into the food restaurant business. In fact, many small cafes that are run out of homes have opened up in places like Bangalore and Hyderabad. But opening a restaurant is not an easy thing to do. There are a number of rules and regulations to follow. Before you decide to open a restaurant, we'll tell you what you need to know.

Regulatory Requirements of a Restaurant Business: FOOD SAFETY AND STANDARD AUTHORITY OF INDIA

FSSAI (Food Safety and Standard Authority of India) License

This license is also known as the Food License. It is issued by the Food Safety and Standard Authority of India and is a guarantee of the fact that the food served by the respective restaurant is safe to eat. A 14-digit number is given at the time of registration. A restaurant certified by FSSAI is an assurance to the customers that the food provided is according to the safety standards set by FSSAI. A list of documents such as ID Proof, Kitchen Layout Plan, NOC of the owner and many others must be submitted in addition to filling an online form on the FSSAI website. Thereafter one must submit the required documents and the application form and then make a payment of INR 2000 to the Regional/State Authority. 

 

Liquor License 

The restaurants who wish to serve liquor as well in their restaurant must mandatorily obtain a Liquor license from the Local Excise Commissioner. A list of documents is required to obtain a liquor license of which the most important is obtaining a NOC from the State Fire Service department.  However, getting a liquor license is not that easy, after the verification of the documents, a fee of INR 5,000 must be paid.  An additional INR 50,000 must be paid for each additional brand like whiskey, rum, gin, brandy, vodka, etc. 

 

Signage License 

Marketing is essential for any business. Good marketing skills help a person to give fame to his business, but in order to market your restaurant, one must obtain a license. Yes, even for marketing your restaurant you must receive a license. This is known as the Signage License.  In order to market your restaurant through person, logos, symbols or posters one must obtain a legal permit. 

 

Certificate of Environment Clearance 

The restaurant is obliged to take care of the environment as well. It must take adequate measures to ensure that it does not harm the environment in any form. In order to ensure that the restaurant is environmentally compliant, it must obtain a Certificate of Environmental Clearance. In order to obtain this license, one must submit certain documents with the application form to the concerned authorities. 

 

Location and Infrastructure:

You need to have a suitable location for your food business, with adequate space for storage, preparation, and cooking. You also need to ensure that your business meets the health and safety requirements, including ventilation, lighting, and sanitation facilities.

 

Staff and Training:

You need to hire trained staff for your food business and provide them with regular training on food safety, hygiene, and customer service.

 

Menu Planning and Food Quality:

You need to plan your menu and ensure that the food you serve is of high quality, nutritious, and safe for consumption. You should also comply with the FSSAI guidelines on food labeling and packaging.

 

Music License 

In order to play music in a restaurant, a specific license is required. As per the Copyright Act, 1957, those who play pre-recorded music in any non-private, commercial or non- commercial establishments must have a Music license as issued by the Phonographic Performance Limited (PPL).

 

Fire Safety License 

The safety of customers must be the top priority of the restaurant. The restaurant should be designed in such a manner so as to protect the customers from hazards such as fire. Thus, a restaurant must necessarily be fire safety compliant and must obtain a NOC from the fire department. Unlike other licenses, this license must be obtained before the construction of a restaurant starts.   

 

Shop and Establishment License 

This license is required to open a fine dining restaurant or a food truck. As per the Shop and Establishment Act, any person who commences this business must apply for this license within 30 days of starting it. The cost incurred on obtaining this license depends on various factors such as number of employees, location of the restaurant and many more. 

 

Conclusion

Starting a restaurant involves some tricky rules, but getting a lawyer to help can make things much easier. A lawyer can help you get all the licenses you need and make sure everything's in order. This can make running your business smoother because you won't have to worry about legal problems. In more detail, when you're setting up a restaurant, there are quite a few licenses and permits you need. These can include things like a FSSAI license, a liquor license if you're planning to serve alcohol, and possibly others depending on where you are and what kind of food you're serving. This can get a bit complicated, but a lawyer who is an expert of food laws can guide you through the process. Once your restaurant is up and running, a lawyer can also help you stay on top of any changes in the law that might affect your business. They can help you understand what the regulation mean for your restaurant and what you need to do to follow them. This way, you can focus on running your restaurant instead of worrying about legal issues. In conclusion, while starting a restaurant involves dealing with some complex laws and regulations, getting legal help can make this process much simpler and let you focus on making your restaurant a success.

last updated on May 14, 2023