Is Ginger Garlic Paste Processing Profitable?

• The cooking-paste market is estimated at Rs 55-70 crore and is growing at 30 percent. The reason behind it, the cooking paste segment is now catering to working professionals who are pressed for time and not just housewives.
• Basically, you can produce the ginger-garlic paste on a small-scale basis. Generally, the packing comes as 50 gms and 100 gms packets. The market is widespread, especially in rural areas. Generally, all households consume this item widely. In urban areas, the demand for ginger garlic paste is very good and can be supplied on a commercial scale in bulk.
  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 at your locality. Additionally, check the packaging and price of the established brands.
• The major positive side of this business is that you can add ancillary products along the ginger garlic paste production unit. You can produce a lot of other products from the same unit. First of all, you can produce onion paste. This product has great demand in the metro cities. Also, you can produce tomato puree that is another ready-to-cook item. So, you can expand the product line to enhance the overall business revenue

Eight steps to follow to start a profitable Ginger Garlic Paste Processing business

1. Create a Business Plan and Arrange Finance

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.

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.

As with any manufacturing industry, finance is a crucial factor here also. Preparing a project report is a must if you want to apply to a bank or financial institution for finance. 20%to 25% owner’s contribution is a must in case of a project loan. Apart from that, you can apply for fixed capital and working capital loans from banks.

2. Name your Ginger Garlic Paste Processing Business

Select a name that people can relate to your Ginger Garlic Paste processing company. Do not forget to check the availability of a similar domain name to the company name. This helps you in creating a website similar to the company name.

3. Make the Business Legally Compliant

In starting ginger garlic paste manufacturing, you will need to obtain different types of licenses and permission from Government Authorities.

a) Trade license from local Municipal authority.
b) Company Registration with ROC
c) Consent to Establish’ and ‘Consent to Operate’ from Pollution Control Board.
d) FSSAI license from Food Safety and Standards Authority of India.
e) GST Registration

Generally, you must obtain these registrations and licenses in starting ginger garlic paste production. However, you must check with the state government authority for any other compliance if needed.

4. Ginger Garlic Paste Making Plant Set Up & Machinery

As you are initiating a food processing industry selecting the right location and building a proper space for production activity is important. You will get a specific idea about the area required for the entire activity from the project report. In the floor plan layout mention the specific space for raw material storage, production activity, packaging activity, finished goods storage, and administrative work.

In initiating the business, you will need to secure a minimum space first. Additionally, check the availability of electricity and water supply. You can start a small-scale operation from 600 Sq. Ft space.

You can establish a ginger garlic paste unit in two ways. One is the semi-automatic basis and another is the fully automatic basis. The fully automatic unit will definitely give you uniform production with desired output and with minimum labor involvement. According to the market demand and marketing policy, you must determine whether you will go for a fully automatic option or for a semi-automatic option.

Basically, a fully-automatic setup is perfect for large-scale commercial production. However, for a small-scale unit, we will advise you to go for a semi-automatic plant. The requirement of machinery depends on the desired production output and business size.

The major list of machinery which are commonly used in ginger garlic production are as follows:

1) Water Jet Washer

2) Skin Peeling Machine

3) Fruit Mill / Crusher

4) Pulping Machine

5) Stainless Steel Tank

6) Packing Machine

7) Pouch Sealing Machine

8) Weighing Machine

9) Carton Packing Machine

5. Cost of Starting Ginger Garlic Paste Processing Business

An approximate investment of Rs 3 lakhs to Rs 4 lakhs per unit is required. This includes cost of equipment, machineries, packaging material and ingredients.

6.  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, you will need to procure food preservatives. Furthermore, you will need to have packaging consumables.

Actually, ginger garlic paste is a semi-solid product. Therefore, you have to arrange leak-proof packaging. Basically, you have to procure poly-pouch packaging and outer cartons for bulk packaging.

Generally, small quantity comes in pouches and the large quantity (500 gm or 1 Kg) comes in containers.

7.  Ginger Garlic Paste Manufacturing Process

The ginger-garlic paste manufacturing process is very simple. These are the steps involved:
(i) Cleaning: Hygiene is very core to this business. You should therefore make sure that raw ingredients are cleaned properly.
(ii) Peeling: The second step would be to peel ginger and garlic. This makes a  smooth paste that tastes good.
(iii) Crushing: Ginger and garlic are crushed before being ground.
(iv) Pulping: The final step is to pulp the ingredients. Other materials like water and preservatives can also be added after pulping.

First of all, procure fresh ginger and garlic from the farm. Wash the items with a water jet pressure to clean up any dirty material. Then remove the skin of ginger and garlic by skin peeling machine.
Then put the materials in the mill/crusher. The output of the mill is put to pulper to further making a fine paste. Finally, take the output in the stainless steel container for mixing the preservatives. The same is transferred to the pouch packing machine for packing in the custom denomination.

Process Flowchart: Sourcing → Cleaning → De-Skinning → Crushing → Pulping → Adding Preservative → Packing

8. Promote your Products (Marketing)

Product promotion is important in this business. Basically, you have to identify the sales channel. You can establish a local distribution network. 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.

Additionally, you can sell the product from online marketplaces. It is advisable to create your own website.

You can also sell the product from your own niche eCommerce store. Additionally. you must tap the institutional market for your ginger-garlic paste-making business.