Do you want to start a small-scale ginger garlic paste-making business at home? Find here a detailed business plan checklist with machinery, raw materials, and manufacturing process.
Basically, ginger garlic paste is ready to cook the item. It comes under the FMCG segment. The shelf is higher when stored in the refrigerator. Actually, ginger and garlic are two important spices for cooking many foods including non-veg items. Nowadays, the product has huge popularity throughout the globe.
Any individual can start a ginger garlic paste-making business with a small capital investment. And even, if you have space at home, you can start this business as home-based also. Basically, it is a great opportunity for women entrepreneurs, housewives, and students also.
Ginger Garlic Paste Market Potential
The cooking-paste market is growing at 35% every year. The reason behind it, the cooking paste segment is now catering to working women professionals who are pressed for time and not just housewives. Basically, this type of paste helps to save time for cooking foods on a regular basis. Apart from domestic use, hotels, restaurants, and different eatery centers use this paste on a continuous basis.
Basically, value-added items ensure better revenue. Hence, starting a ginger garlic paste-making business is a profitable opportunity for the young startup community. However, it is important to conduct thorough market research for understanding the local market demand in your locality. Additionally, check the packaging and price of the established brands.
7 Steps to Start Ginger Garlic Paste Business
1. Prepare Business Plan
Preparing a business plan is a must for starting this business. Depending on your investment capacity and business size, you must craft a business plan. In the business plan, mention your business objective and management pattern. Additionally, you must include a detailed financial analysis.
Your financial detail must consist of the unit establishment cost, machinery price, raw material consumption, and other operational expenses. Also, you need to include the expected sales turnover and ROI with break-even.
2. Arrange Finance
Generally, the ginger garlic paste-making business demands financial investment towards the unit setup, procuring machinery, raw materials, and other administrative expenses.
So, you will need to arrange finance according to your business plan. For this type of small project, it is always better to start with your capital. And when your business expands, you can apply for the working capital to the banks.
However, if you don’t have the financial strength, you can apply for a bank loan for the entire project. However, the bank may ask for collateral security and prepare for that.
3. Setup the Unit
If you want to start the business as home-based, then determine a specific space for it. Even, for a small-scale unit, you will need to have a 500 Sq Ft covered area.
If you want to secure a space for running the unit, then ensure the availability of the electricity and water supply. Additionally, check the transport facility too. Clearly, determining the space for raw material storage, manufacturing operation, and finished goods storage.
4. Procure Machinery
Basically, you can establish the ginger garlic paste-making unit in two ways. One is semi-automatic and another is fully automatic. For a small-scale operation, it is advisable to start as a semi-automatic plant. In the semi-automatic operation, you will need the following machinery.
- Water Jet Washer
- Skin Peeling Machine
- Fruit Mill / Crusher
- Pulping Machine
- Stainless Steel Tank
- Packing Machine
- Sealing Machine
- Weighing Machine
- Pouch Sealing Machine
- Carton Packing Machine
5. Procure Raw Materials
In a ginger garlic paste-making unit, the major raw materials are fresh ginger and garlic. Actually, the quality of the finished goods highly depends on raw material quality. Therefore, you must procure good quality fresh ginger and garlic.
In addition to that, you will need to procure Class 2 preservatives. Additionally, you must procure the packaging consumables. Generally, small quantity comes in pouches and large quantity (500 gm or 1 Kg) comes in containers.
6. Production Process with Flow Chart
First of all, procure the ginger and garlic from the farm. Then, wash them with water jet pressure to clean up any foreign material. And, remove the skin of the ginger and garlic with a skin-peeling machine.
Then put the product in the fruit mill/crusher machine. Put the output of the fruit mill machine into the pulper machine to further get the fine paste. Finally, put the output in the stainless steel tank for mixing the preservative. Then, you have to transfer the product to the pouch packing machine for packing in a customized denomination.
Sourcing → Cleaning → De-Skinning → Crushing → Pulping → Adding Preservative → Packing
7. Ginger Garlic Paste Distribution & Marketing
First of all, tap the local market. Generally, distribution is the most proven method for selling FMCG items in high-population-density areas. You can recruit the distributors or else distribute the materials to the retailers directly.
Read: Low-Budget Marketing Ideas for Small Business
The product has good potential in the institutional market too. Contact the hotels and restaurants in your area. Check their requirements. Additionally, you can sell the items from the marketplaces like Amazon. Also, consider producing other similar products like onion paste from the same unit.
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.