How To Start A Flour Mill Business In India From Scratch?

Starting a flour mill business in India is a lucrative proposition. Not only is the demand for flour high, but the market is also relatively untapped, making it a ripe opportunity for entrepreneurs.

However, there are a few things you need to take into account before starting such a business, including the land, money, raw materials, etc., required for setting up and running the mill.

It is essential to have a basic understanding of the market dynamics and what flour milling is. It is also vital to research the regulatory landscape and understand the licensing and approval requirements.

In this article, we will discuss all of these factors in more detail so that you can decide whether or not starting a flour mill is right for you. Finally, we will look at the process of setting up your own Chakki and making a profit.

Types Of Flour Mill Business In India

How Much Does It Cost To Set Up A Flour Mill?

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 – 9 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. 12-15 lakhs.

Location Of Your Flour Mill

When choosing a location for your flour milling business, you should consider two things- the availability of raw material and the proximity to your target market.

• If you are planning a small-scale venture, you can buy/rent land or a shop in a local market or start a home-based flour milling business.
• In the case of a large-scale venture or a factory-like setup, you need to ensure that the land is enough in size (sq ft) to house the machinery and staff.

The location should also be close to a transportation hub so that you can easily transport the raw materials to the mill and distribute your product.

Target Market

Another important consideration is who your target market will be. For example, do you intend to sell your flour to large-scale bakeries or other commercial enterprises?

Or will you be targeting individual consumers? Depending on your answer, you will need to choose an appropriate production capacity for your mill.

For example, a compact chakki mill would suffice if you are only selling to individual customers, but a wheat flour machine for commercial use would be necessary if you want to supply large quantities of flour to bakeries or other businesses.

Availability Of Raw Materials

The most important raw material is wheat, as wheat flour is widely used in India. There are two types of wheat: whole wheat and refined wheat.

Wheat grain is available from agricultural suppliers, wholesalers, and distributors. You will need to source them from a reliable supplier who can provide you with a consistent supply at a competitive price.

Required Permits And License 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.

Getting The Necessary Machinery

Now is the time to procure the necessary machinery for your atta chakki business.

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 Mill Power Pvt. Ltd. is the perfect supplier 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 Mill Power Pvt. Ltd. comes in different diameters (24, 30, 36, 48, 60, 72 inches) and has a stainless 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.

2. Destoner – This machine is used to remove stones and other heavy materials from the grains.

The Destoner machine from Mill Power Pvt. Ltd. removes stones and other heavy materials from the grains, making it easier to mill the flour.

The machine is made from high-quality materials designed for durability and dependability.

We at Mill Power Pvt. Ltd. offer 6 types of Destoners that vary based on –

• Capacity: 1.5 HP to 3 HP
• Production: 400 to 2000 kg/hr.

3. Commercial Flour Mill – This is the main machine used for milling grains.

At Mill Power Pvt. Ltd., 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 commercial atta chakki manufacturers in India.

The four types of flour mills that we offer at Mill Power Pvt. Ltd. are:

1. Stainless Steel Compact –

At Mill Power Pvt. Ltd., 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 flour mill manufacturers in India.

The four types of flour mills that we offer at Mill Power Pvt. Ltd. are:

1. Stainless Steel Compact –

• Capacity: 1 HP – 3 HP
• Production: ~10-25 kgs/hr

This is the most basic type of flour mill and is perfect for small-scale businesses. It is made from high-quality stainless steel and has a compact design that makes it easy to use and store.

• 2. Stainless Steel Heavy/ Mild Steel Heavy –

• Capacity: 2 HP – 5 HP
• Production: ~22-50 kgs/hr

This flour mill is perfect for small or medium-scale businesses 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.

3. Stainless Steel with Dual Chamber –

• Capacity: 7.5 HP – 10 HP
• Production: ~80-100 kgs/hr

This flour mill is perfect for medium or large businesses that want to mill both wheat and rice. It has two chambers – one for coarse grinding and the other for fine grinding.

4. Mild Steel with Dual Chamber and Blower –

• Capacity: 7.5 HP – 20 HP
• Production: ~80-150 kgs/hr

Double stage pulverizer is perfect for businesses that want both coarse and fine grinding AND blow the flour out through a pipe. This type of flour mill is the most efficient and can handle large quantities of wheat and rice.

If you are looking for a Hammer Mechanism or a machine with coarse grinding, we have got you covered too.

5. Hammer Mill –

• Capacity: 2 HP – 5 HP
• Production: ~18-50 kgs/hr

The Hammer Mill from Mill Power Pvt. Ltd. is perfect for businesses that want to grind their grains into coarse flour.

The capacity of our automatic industrial flour mill machines ranges from 1 HP to 20 HP, and we offer a variety of customization options to ensure that our machines meet your specific needs.

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.

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.

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 bakeries and supermarkets.

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.

1. Research the industry and understand the competition
2. Develop a flour mill business plan
3. Secure funding for the capital
4. Establish a corporate entity and register with appropriate authorities
5. Purchase or lease location for the milling operation
6. Buying the milling equipment
7. Test the equipment and ensure that it is operational
8. 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 we have listed some of the most common and popular options available to start this business:

1. Starting a flour milling business from scratch:

This is obviously the most challenging option as it requires investing in machinery, land, building, and other necessary infrastructure. However, it also offers the highest potential return on investment (ROI).

2. Buying an existing flour business:

This option eliminates the need to set up everything from scratch. It also comes with an already established customer base and supplier network. The downside is that you will have to pay a premium for the purchase price.

3. Franchising a flour mill business:

Franchising is another popular option for starting a business. It has the advantage of providing you with a ready-made business model and brand recognition. However, it also requires a significant initial investment.

4. Setting up a joint venture:

This option involves partnering with another flour company that is already in the milling business. This can be an excellent way to start without shouldering all the risks and costs yourself.

Is Flour Mill Business Profitable?

Yes, starting an atta chakki business in India can be a very good investment. You can quickly become a leading player in this ever-growing industry with the right flour mill business plan and execution.

Would You Start A Flour Mill Factory In India?

The flour mill business is an excellent opportunity for entrepreneurs who want to make hefty profits on their capital investment.

In India, the demand for wheat flour is increasing day by day. And starting a flour mill business is one of the best options to fulfill this high demand.

The process of starting a flour mill business is not very complicated. You just need to follow the simple steps mentioned here.

We hope you found this article helpful in understanding how to start a flour mill business in India. If you have any questions or comments, please feel free to leave them below. We would love to hear from you!