Today, we are seeing that the food processing industry has become a very big sector and in it, the flour mill business is one of the profitable and in-demand business ideas.
It is a need of every household in India, in which wheat, maize, gram, rice and multigrain flour remain in high demand.
If you want to start a successful flour mill business, then read this blog carefully, we will cover the entire process step by step in one blog.
“I believe in innovation and that the way you get innovation is to fund research and learn the basic facts.” - Bill Gates
Market Research for Flour Mill Business?
Before starting a flour mill manufacturing business, it is very important to do market research to make the business successful and profitable.
Market research will help you know what type of flour is sold more in your area and what is the competition and which companies are currently supplying the flour in the market.
Market Demand Analysis
- Who are your target customers? (Households, bakers, restaurants, wholesalers, etc.)
- Which flour is in more demand? (Wheat flour, Maida, Besan, Multigrain, Rice flour)
- Who are the competitors in your area and what is their pricing strategy?
If you are doing business in a rural area, then there is more demand for wheat and maize flour. In urban areas, the demand for multigrain and organic flour is increasing.
How much investment is required to start Flour Mill Manufacturing Business?
The investment to start a flour mill depends on many factors such as machinery cost, raw materials, land, and licensing.
Investment Breakdown
1. Flour Mill from Home or Small Shop
Domestically, you might have seen small shops or home-run flour mills. They usually have 2-5 machines for different grains or materials.
Cost:-
You can start such an operation for 1 lakh or less and some monthly costs like rent, electricity, and help.
2. Small-Scale Flour Mill Plant
The second type is the small-scale or mini flour mill which can mill between 100kg and 1000kg daily. These mills are typically run by a single person with a few employees.
Cost:-
For a small-scale mill, the expected cost is about Rs. 5 – 10 lakhs.
3. Large-Scale Flour Milling Plant
The first type is the large-scale flour mill with an installed capacity of over 4 tonnes per day. These mills generally have a staff of around 100 and can produce up to 2,000 kgs of atta (flour) per hour.
Cost:-
For a large-scale mill, you can expect to spend upwards of Rs. 12-20 lakhs.
Location Of Your Flour Mill
Selecting a good location is very important for the success of the flour mill business. You should choose a place which is close to transportation, raw material supply and target market.
- Availability of raw material – Is there good quality wheat, rice or maize available near you?
- Market accessibility – Are your potential buyers (wholesalers, retailers, restaurants) nearby?
- Transportation Facilities – Is road connectivity and logistics services available in the area?
- Power & Water Supply – Is regular electricity and water supply available at the location?
- GOVERNMENT POLICIES & SUBSIDIZES – Can you get cheap land or subsidies in industrial areas or rural areas?
Target Market Identification
- Retail Customers – Direct home customers who prefer fresh atta
- Wholesale Buyers – Grocery stores, kirana shops that purchase in bulk
- Bakeries & Restaurants – Use Maida, Multigrain or Besan Flour
- Export Market – If you are producing organic or premium quality flour then you can also target the international market
Required Licenses & Registration for Flour Mill
Before starting your atta company, you will need to obtain the necessary license and registration from the authorities.
- GST registrations for tax-related works
- Trade license required for local authorities
- Atta Chakki Registration with the Registrar of Companies (ROC)
- Trademark registration
- MSME or SSI registration
- Food Safety and Standard Authority of India license (FSSAI)
- IEC code for import-export
- BIS and AGMARK certification
- State Pollution Control Board Certificate (only if required)
These are just some of the basic requirements you must comply with when starting a flour mill business in India. Therefore, it is essential to research all relevant regulations and licenses required for factories in India.
Flour Mill Machinery and Equipment
Different types of flour mill machines are available in the market. You have to select the machine according to your requirement and budget.
1. Sifters – These Machines Are Used To Sift The Flour To Remove Any Impurities.
If you are looking for a Vibro sifter to use in your flour mill, then Samtek Machinery is the perfect manufacturer for you.
We offer a wide range of Vibro sifters that are made from high-quality materials and are designed for durability and reliability.
- The best type of Vibro sifter from Samtek Machinery comes in different diameters (18 – 72 inches) and has a stainless steel & Mild Steel body.
- The capacity of this machine ranges from 0.5 HP to 5 HP and depends on the size of the sieve and the material density.
- The Production Capacity of this machine from 100 KG/HR – 600 KG/HR and depend on Plant & Machine Type.
2. Destoner – This machine is used to remove stones and other heavy materials from the grains.
The Destoner machine from Samtek Machinery removes stones and other heavy materials from the grains, making it easier to mill the flour.
The Machine is designed to efficiently remove dust, dirt, stones, husks, and other impurities from various grains, ensuring high-quality output for further processing.
We at Samtek Machinery offer 6 types of Destoners that vary based on –
- Power Capacity- 1.5 HP
- Production Capacity- 500 KG/HR – 2000 KG/HR
3. Atta Chakki - This machine is main for used to milling the grains.
At Samtek Machinery, we have an experience of about 40 years and have supplied our automatic and semi-automatic machines to clients all over the country and abroad. We are one of the leading wheat atta chakki manufacturers in India.
The four types of flour mills that we offer at Samtek Machinery are:
- Power Capacity- 5 HP – 15 HP
- Production Capacity- 50 KG/HR – 200 KG/HR
This is designed for precision grinding and processing of grains, and other materials into fine powder or flour. It ensures high efficiency, uniform output, and minimal wastage, making it an essential tool for food processing, agriculture, and industrial.
- Power Capacity- 5 HP – 20 HP
- Production Capacity- 50 KG/HR – 300 KG/HR
This Flour Mill is Perfact for Large Scale Plant that require a high production capacity. It is made from high-quality stainless steel or mild steel and has a heavy-duty design that makes it durable and reliable.
4. Centrifuegal Sepretor - for Seprate and Filter Grains
The Centrifuegal Sepretor from Samtek Machinery is designed to separate, grade, and filter grains. It ensures precise particle separation, high efficiency, and uniform quality, making it an essential tool for industries
Reduces manual effort and improves production efficiency. Eliminates impurities and enhances product purity.
This Machine is 2 different size and vareint.
- Size- 2×3, 2×6
- Power Capacity- 3 HP – 5 HP
- Production Capacity- 500 KG/HR – 1000 KG/HR
5. Storage Tank- for Store Flour in this tank
The Storage Tank from Samtek Machinery is perfect for businesses that want to Store their grains into coarse flour.
This Storage tank make with Mild Steel Material for grains & flour Store.
- Tank Storage Capacity- 5 Ton – 10 Ton as per Plant & Production.
6. Packaging materials –
You will need packaging materials such as bags or boxes to package the final flour you produce.
You can get these machines from local or international suppliers. Make sure to buy high-quality machinery that is durable.
You will also need to invest in other equipment such as sacks or bags for packaging the flour, weighing scales, and a vehicle for transporting the flour.
Getting Investment Options For Flour Milling Business
You can raise financial investment to start this business through debt or equity financing.
- Apply for loans under Mudra Yojana, PMEGP, or MSME Loans.
Check for subsidies under schemes like NABARD Food Processing Subsidy.
1. Debt financing: This involves taking out a loan from a financial institution to finance the cost of setting up the business. The loan will need to be repaid over time with interest.
2. Equity financing: This involves raising capital by selling the business shares to investors. The advantage of this option is that it does not require repayment, but it dilutes the ownership of the business.
The best option for raising investment will depend on the individual circumstances of the entrepreneur. However, you can use both options to finance money for your project.
Marketing Your Flour Mill Business
Once you have set up your flour mill, the next step is to start marketing your product. There are two ways of marketing your flour- through online channels and offline channels.
Online Channels
- The best way to market your flour mill business online is through social media.
- You can create a Facebook page or an Instagram account for your business and start promoting your products there.
- You can also create a website for your business and promote it through search engine optimization. and Run the Google Search Ad for more Reach.
- Ceate a Account on Online platforms (Amazon, Flipkart, BigBasket)
Offline Channels
- Another way of marketing your business is through offline channels such as posters and flyers.
- You can also distribute samples of your product in local grocery stores and supermarkets.
- Direct B2B sales to local bakeries & restaurants
- Partner with wholesalers & distributors
With the right marketing strategy, you will be able to attract customers and grow your atta business exponentially.
Setting Up Your Flour Milling Business In 8 Steps
Now that you know the important parameters of setting up a flour mill in India, let’s take a quick look at the process of setting up your Atta chakki business.
- Research the industry and understand the competition
- Develop a flour mill business plan
- Secure funding for the capital
- Establish a corporate entity and register with appropriate authorities
- Purchase or lease location for the milling operation
- Buying the milling equipment
- Test the equipment and ensure that it is operational
- Market the business
Following these steps will help increase the chances of success for a flour mill business in India.
It is important to remember that this type of business requires dedication and hard work. However, the rewards can be significant if the business is appropriately managed.
The Market For Flour In India – Is Flour Mill Business Profitable?
There is a considerable demand for flour in India. In fact, the country consumes about 103.5 million metric tons of wheat every year, making it the second-largest producer and consumer of grain in the world.
The majority of this wheat is used to make roti, chapati, and other flatbreads that staple foods in the country. With such a high demand for wheat products, it’s no wonder that the flour milling industry in India is one of the biggest enterprises.
There are already thousands of flour mills in operation across the country, but the majority of these are small-scale operations that only serve their local communities. There is still room for growth in the industry, however.
The Indian government has been investing heavily in the development of the wheat sector, and it is now possible to export wheat products to other countries.
This presents a great opportunity for entrepreneurs who want to start a flour milling business in India.
Different Options For Starting Flour Mill Business In India
Here are four ways to start a flour milling business, each with its own advantages and challenges:
Starting from Scratch
Building a flour milling business from the ground up requires investing in machinery, land, and infrastructure. While this approach demands significant capital and effort, it also offers the highest potential return on investment (ROI). You have complete control over operations, branding, and business growth.Buying an Existing Flour Mill
Purchasing an already established flour mill eliminates the hassle of setting up everything from scratch. You gain an existing customer base, supplier network, and operational framework. However, acquiring a running business usually comes at a premium price.Franchising a Flour Mill
Franchising allows you to start with a proven business model and brand recognition. You receive support in operations, marketing, and supply chain management. While this reduces the risk of failure, it requires a significant initial investment and ongoing franchise fees.Forming a Joint Venture
Partnering with an existing flour milling company lets you enter the industry without bearing all the risks and costs alone. A joint venture provides access to expertise, infrastructure, and a shared investment, making it a strategic way to start.
Is Flour Mill Business Profitable?
Starting an atta chakki business in India offers a great investment opportunity. With a solid business plan and proper execution, you can establish yourself as a leading player in this growing industry. The demand for high-quality flour continues to rise, giving you the potential to build a successful and profitable venture.
Would You Start A Flour Mill Factory In India?
The flour mill business offers a profitable opportunity for entrepreneurs looking to earn high profits on their investment.
In India, the demand for wheat flour continues to grow, making it an ideal time to start a flour mill and meet this rising need.
Starting a flour mill business is straight forward if you follow the right steps. By setting up the right infrastructure and planning effectively, you can establish a profitable venture.
We hope this guide has helped you understand how to start a flour mill business in India. If you have any questions or thoughts, share them in the comments below—we’d love to hear from you!
