Humans all over the world require food to survive & flour is one of the main ingredients to make chapati which is used as food by most Indians.
In North India where I live, almost all the people including me eat wheat & bajra chapatis.
Very few people have their own farmlands so they can’t grow enough food for their family and in this condition, they need to either outsource whole wheat or purchase wheat from other farmers.
Expanding our business ideas series, today we will discuss about flour mill business, its benefits, profit margin, precautions, and many more.
I have also written about another business related to the wheat flour mill at the end of the post so make sure to check that.
Types of Flour Milk Business
There are four types of Flour Mill Business which are as follows:
1. Small scale: In a small-scale flour mill business, the equipment available are less and production capacity is below 1000 KG per day.
2. Large Scale: In this, very high-end equipments are used with a production capacity above 1000 KG.
The cost of a large-scale flour mill is very high compared to a small scale.
The investment cost in large scale can go upto 2 crore.
3. Home-based: In a Home-based flour mill everything is done from home from grinding to packaging, the investment cost in this is below 2 lakhs.
4. Shop Based: Shop based flour mill is started in cities to grab more eyes on the shop because the crowd is always more there.
The investment is also less but that person needs to pay the monthly rent to the owner of the shop.
Starting a Flour Mill Business
To start this business we need to do bring things & to take steps wisely:
1. Decide the right place: First of all, we need to decide the right place where we want to start this business.
To solve this you need to check that where you can get maximum customers, if you think that you can face good demand in city them start in a city otherwise you can also start from your house.
🌟 If anyone has his own shop in a city then he can start selling his packed attain that shop.
2. Apply for an electricity connection: As per my knowledge our household electricity connection can only operate machines of 3 horsepower, if we want to run powerful grinders then we will need a three-phase connection or a commercial connection.
3. A Big Shed: To store pulverizer, packaging machine & material, whole wheat, etc. we will need a big room.
A person can also use three separate rooms to store these things isolated.
The floor of the rooms should be cemented and free from rats, ants, cockroaches, and other insects to ensure hygiene.
4. Bring Raw Material: Many people who have made videos on this business said that bring wheat as raw material which is not true.
The reason is the raw material varies from area to area, for example, In Rajasthan, every person eats wheat chapati so here the demand for wheat and its flour is very high.
But if we move to southern India this can change as rice is mostly used there.
So to choose the right raw material for grinding you need to check that which grain is popular in your locality.
5. Bring a Stone chakki: Buying the right stone chakki can create concern in the mind of the owner as there many brands available.
In starting I prefer to purchase a chakki with an hourly output of 100 g which can cost around 30k to 40k.
Probably you are thinking that why there is a need for stone chakki?🤔
The reason is simple with stone chakki we can get very fine wheat flour which we can’t get with a pulverizer.
One thing we can do is that we can also purchase a pulverizer along with stone chakki, first, we will put the whole wheat in a pulverizer machine which will break wheat into small pieces, and then we will put that ground wheat in stone chakki to make fine & powdered wheat flour.
This process takes less time and also saves electricity.
6. Packaging Material: People always prefer to choose quality products when purchasing food-related products.
An eye-catching and good-looking packaging of wheat flour will look like a legit product and people can easily believe in your product.
We need to purchase packaging polythenes of 1 kg, 5kg, and 10 kg as these are the common sizes which customers mostly prefer to purchase.
Along with this we also need to bring a weighing machine and good quality sealing machine, which both collectively can cost up to 25k rupees.
The best way to purchase grains or commodities is from your nearby villages.
Let’s say I have decided to start a wheat flour mill business then I will try to purchase all the wheat from my nearby farmers available in my locality.
Pricing and Payment
On an average, we can get good quality whole wheat at the rate of 2000 rupees per 100 kg ( this price can vary from area to area and season to season ).
We can pay farmers at the time of purchase or if farmers know us then we can also take some time to pay.
🤠 If a person has good agricultural land, then that person can easily do wheat farming on that land and can use the yield for his own wheat flour mill business. This will decrease the burden of money required in this business for the first starting year.
As the flour mill business is related to human food so one needs to take an FSSAI license and if turnover increases then that person needs to pay GST.
Grinding and Packaging
Now after setting up all the things, we need to start grinding and packaging wheat.
By stone grinder, we can only make wheat flour but if we also want to sell Dalia i.e coarse grinded wheat then we need to purchase another machine.
After doing the packaging of wheat flour & Dalia, we need to store these packaging very safely.
Where to sell?
The biggest question that arises here is that where to sell a final packed product?
A person will not get customers from day one, in my masala-making business I also got very few customers in starting but now, after one year my business is growing continuously.
Here are the first customers which a person can contact to give his wheat flour packaging:
- Nearby houses and society.
- Online e-commerce sites like amazon.
These are the ways which can help a person to sell something is starting.
Now if you don’t know there is a lot of consumption of wheat flour in marriages, so we can contact these persons who have marriage in their house to use our product in their program.
We need to explain to everybody that how we prepare products, from where we purchase, quality of our products.
Here are the ways through which a person can grow his flour mill business:
1. Time: Every business requires time to grow, so everyone has to give time.
2. Advertisement: Advertisement can really increase customer engagement. The best advertising way is to give newspaper ads that I sell wheat flour both wholesale and retail.
The investment cost depends upon the equipments purchased if we have purchased big machinery then the cost will be very very high!!
But if starting is small ( which is less risky ) then the investment cost is under 2 lakhs rupees.
The profit margin in the flour mill business depends upon the gap between the price at which we buy wheat and the price at which we sell the wheat flour.
Usually, a person can get 5 rupees per kg as profit.
If we can sell 300 kg per day, then we can easily make 45k to 50k rupees per month.
The profit margin in Dalia is more than in wheat flour.
If there are pre-established flour mills in our nearby area and are providing wheat flour at a very competitive price then it’s better to DON’T START THIS BUSINESS.
For example, if farmers are selling whole wheat at the rate of 20 rupees per kg in our area and these flour mill companies are providing wheat flour at the rate of 22 or 25 rupees per kg to the customers, then it’s better to not start this business. 👈
Here are the precautions which a person need to take care of these things:
1. Order in limit: Some newcomers without knowing start to purchase wheat in large quantities but in the end, they are not able to see that much, directly they face loss due to the ruin of quality of the wheat.
2. Bugs controlling: Bug management is very important because when bugs start to grow in wheat bags, then they decrease the quality & taste of the wheat, & sometimes unpleasant smells as well.
To avoid the formation of these bugs you can buy some preventative medicines or products from nearby seed seller shops.
3. Use mind: Using your own mind is very compulsory before starting any business. To start this we need to check that is there this business can help people, will people show any interest, etc.
This will help us to get inner satisfaction.
Start or not?
Personally I don’t like this flour mill business because the profit margin is less & the competition is very high.
A normal person can withstand against big businessman’s who are in this profession from many years.
Well, as per my experience I can very clearly say that the flour mill business is very expensive to start especially when people have less money to spend.
I don’t know about other states but in Rajasthan, most people don’t buy packed wheat flour, instead of this, they prefer to buy whole wheat from farmers at the time of harvesting.
And most of these people don’t have their own pulverizer or grinding machine so a new business arrived, where a single person keeps electric stone chakki in his house or shop, these people take their wheat from time to time to this people, he then grinds the wheat into flour, for which he charges money per kg.
For wheat, he approximately charges 2 rupees per kg for grinding and the cost of electricity comes per kg is .50 paise so the total profit from one kg wheat is 1.5 rupees.
On one average a person brings at least 10kg wheat with him for grinding, so if we assume that every day this person gets 20 customers like this then he can earn:
= Number of customers × wheat each customer brings
= 20 × 10 = 200kg ( total wheat )
Profit = total wheat × profit per kg wheat
= 200 × 1.5
= 9000 per month. ( I personally like this wheat grinding business a lot.)
That’s it, I hope you have understood this topic very clearly, do check my other posts about health and business.
Disclaimer: All the information provided in this post is for educational purposes only. This site or I will not be responsible for any profit or loss in any business.