Starting a Cashew Nut Processing Business in India: A Step-by-Step Guide
When considering the introduction of a cashew nut processing business, you may wonder how to begin with limited resources such as Rs. 5000 at your disposal. This guide will provide you with all the necessary information to establish a successful cashew nut processing business, tailored specifically for the Indian market.
Overview of the Indian Cashew Industry
The cashew nut industry in India is thriving, with a growing demand for cashews and their derivatives. India is a leading producer and processor of raw cashews, and the processed cashew market is expanding with the introduction of innovative products in snack foods, bakery items, and sweets.
Raw Cashew Production and International Impact
Based on data from the Indian Chamber of Commerce (INC), the estimated raw cashew production for India in 2020-21 was 6,91,000 tonnes, a decrease compared to the previous year. However, the global raw cashew production in 2020-21 stands at 3,722,000 tonnes, indicating a steady demand for natural and organic cashews.
Use of Cashew Nut in Indian Cuisine and Traditions
Cashew nuts, with their rich nutritional content and versatile uses, are favored in Indian cuisine. They are consumed raw, used in confectionaries, dairy products, snacks, bakery items, cereals, beverages, and desserts. Cashews are also consumed as prasad (holy food) as part of religious rituals and traditions.
Scope and Potential of the Cashew Nut Processing Business
The cashew nut processing business, largely unorganized and labor-intensive, offers promising opportunities for budding entrepreneurs. The primary focus is on providing employment and promoting gender empowerment through maximum women participation. The demand for cashew nuts is stable and growing, contributing to the overall growth of the dry fruit processing industry in India.
Market Trends and Future Prospects
According to Indian industry reports, the cashew nut market has shifted towards organic products, which has impacted traditional cropping patterns. The market for cashews is poised for growth, considering the health benefits they offer and their cultural and traditional importance in Indian society.
Business Report and Preparations
To start a cashew nut processing business, it is crucial to have a detailed business report that provides insights into all the administrative areas. Such reports help in decision-making and addressing any potential issues. A business report for a cashew nut processing business should include financials, sales, operations, manufacturing, marketing, and inventory control.
Location and Allocation of Funds
The location for your cashew nut processing unit should be chosen strategically to ensure a ready market and cheap labor. Water availability, accessible transportation, and a heavy cashew selling area should be considered. The safety of workers, especially women workers, is paramount. Once the location is finalized, the cost estimation for the project ranges from Rs. 158.50 lakhs, which includes fixed capital.
Statutory Requirements and Approvals
As a budding entrepreneur, you may choose to start your business as an individual, a partnership, or a joint-stock company. However, you must obtain licenses and approvals such as FSSAI, GST registration, IEC code, shop and establishment clearance, fire and safety requirements, and electrical registration.
Raw Materials and Machinery
Raw materials include cashew nuts, cashew nuts apple, and tasteless salt. Machinery required includes a cashew drier, cashew shelling machine, cutter mounting table, grading table, peeling table, filling machine, packing machine, and a vibratory sieve. The detailed process involves drying, boiling, peeling, and grading the cashews to get the end product ready for marketing.
Marketing and Sales Strategies
Marketing is crucial for the success of a cashew nut processing business. Entrepreneurs can sell their products through local distributors or utilize digital platforms like BigBasket, Amazon, and JioMart for online sales. Social media marketing is also a viable option without incurring significant costs. Additionally, larger companies can order from these business units to further promote their products.
Conclusion
With the right business plan and strategic implementation, a cashew nut processing business can thrive in India. Leveraging government schemes and support programs, such as the MUDRA Scheme and Aatmnirbhar Bharat Scheme, can provide the necessary financial aid and boost entrepreneurial morale. The Aatmnirbhar Sena can offer continuous support in implementing these schemes and providing capital assistance, thereby fostering a robust cashew nut processing industry.