Do you want to start a dal milling business? Are you searching for a dal mill business plan sample? Find here a detailed dal mill business plan for your ready reference.
Dal milling is one of the most profitable business opportunities in the agro-processing industry. In addition, you can start a dal milling business in two ways. One is a large-scale dal milling and another is a mini dal mill. If you are starting with your own limited finance, then it is better to establish a mini dal mill. However, as your business grows, you can increase production at any moment in time.
If you are living in dense pulses growing area then only you can consider starting this business. Because you will need to source the pulses at your factory on a regular basis. Apart from the domestic market, the products have good export potential also. Some of the major pulses growing countries are India, Canada, Brazil, China, Myanmar, the USA, and Mexico. Some of the majorly growing pulses varieties are Chana, Mung, Masur, Urad, and Tuvar dal.
10 Steps to Start a Dal Mill Business
1. Business Compliance
First of all, you will need to identify the required business compliances. Register your business first. The registration process hugely depends on the location where you are starting the business. In addition, apply for the necessary certifications and licensing. As you are dealing with food items, it demands different licenses. Furthermore, talk to a local tax consultant. Identify the tax regulations and yearly compliance liabilities.
2. Create a Dal Mill Business Plan
This is one of the most important aspects of starting a dal mill business. You have to craft a dal milling business plan according to your investment capacity. First of all, determine the business size. This type of business demands a regular working capital investment.
It is better to conduct market research prior. Identify what main crops grow in your locality. If there is already a dal mill then find out the capacity of the factory. In addition, try to identify the quantity of the yearly pulses production. These all will help you in crafting a prudent business plan.
3. Select a Name for Dal Mill Business
It is extremely important to choose a business name for your dal milling business. A properly chosen name will not help your customers to identify your business activities but also enhance brand growth. Check our stepwise guide on how to name a business to learn more.
4. Cost & Investment
Generally, the dal milling business demands two different types of investment. One is fixed capital and another is working capital cost. Fixed capital includes the cost of land (if you purchase it), building, machinery, business registration, etc.
On the other hand, working capital cost includes the cost of raw materials, staffing, utility bills, transportation, and regular administrative expenditure.
5. Choose the Proper Location of a Dal Mill Plant
For establishing the factory, you will need to have a location. And you must secure the location in an industrial zone. A dal milling unit should be located in an urban/semi-urban area that has access to raw materials, skilled manpower, and a market. Check whether the transportation and labor facilities are available or not.
Read: Best Milling Business Ideas
If you are starting a mini dal mill, then you can start the business from a rental location. We will recommend not investing your money in purchasing land and building. However, if you want to establish a multi-functional dal mill, then you must establish the business on purchased land. If you are starting a mini dal milling business, then the 1200 Sq Ft area is perfect for starting.
However, for a large-scale unit, this space is not sufficient. And if you want to start a large-scale dal milling business, then you must have the space for various sub-components. These are
- Raw material store
- Finished goods store
- Processing area
- Office space
- Machinery Spare Store
- Gunny Bags Store
- Panel Board Room
- Toilet space
- Miscellaneous space (Drying Platform)
6. Machine, Equipment, & Tools for Dal Milling Plant
The production quantity of a dal mill hugely depends on the quality of the milling machinery. You must procure upgraded machines for getting effective results. Actually, a dal milling factory is an amalgamation of a series of machinery. And you can establish the factory in both ways – semi-automatic or fully automatic. In addition, you will need to have several pieces of testing equipment for quality control. Some of the most important machines are
- Roller machine
- Cylinder concave dehuller
- Under runner disc (URD) Sheller
- Dust Collector with pipe
- Dryer Machine with Complete set
- Packaging Unit
7. Raw Material
Contact the local pulse growers to get the raw pulses according to your demand. Pulses are seasonal products. And during the harvesting time, you will need to store the raw materials. And in the dal milling operation, the only required raw materials are different types of pulses. However, you will need to arrange the packaging items too.
Staffing is a very important consideration in this business. It is better to appoint a food technologist for quality control. In addition, you will need to appoint staff for different purposes. here we put a detailed list of manpower requirements.
- Factory Manager
- Quality Analyst
- Machine Operator
- Semi-skilled Labor
- Logistic in-Charge
9. Dal Milling Manufacturing Process
The manufacturing process is simple. However, you must procure the manufacturing technology from a reputed organization. Generally, Govt, research institutes provide manufacturing technology in exchange for fees.
10. Have a Marketing Plan
Channel marketing is the best process. However, you can also go for wholesale distribution. Another great option is exporting your finished products. However, if you are starting a large-scale dal mill business, then you must establish your own company brand.
About the Author: 99businessideas.com led by Rupak Chakrabarty is committed to helping beginners, entrepreneurs, and small business owners in starting, managing, and growing their business. Our aim is to educate the entrepreneur on the various stages of entrepreneurship.