We will explore the detailed business plan for starting a sweet wafer manufacturing business in India. We will discuss the product and service this business provides, the market size and opportunities, the required investment and resources, licenses and government schemes, marketing and sales strategies, workforce requirements, and much more.
If you are interested in entering the bakery and confectionery industry and want to establish a profitable sweet wafer manufacturing business, this video will guide you through the entire process.
What is this business about? What product and service does it provide?
The sweet wafer manufacturing business involves producing wafer biscuits from a fluid batter baked between hot plates.
These wafer biscuits come in various flavors, including vanilla and chocolate, and can be coated or cream-filled. The business provides ready-to-eat sweet snacks that offer a unique crispiness and textural eating experience, often consumed alongside chocolates. The main distribution channels for these products are supermarkets/hypermarkets, online retailers, and convenience stores.
How does this business work in India?
The sweet wafer manufacturing business in India operates by sourcing the required ingredients, such as wheat, flour, sugar, salt, and preservatives, and mixing them to create a batter.
The batter is then poured into preheated molds and baked to form wafer sheets. Cream is prepared separately using sugar, colors, and vanaspati, and spread over the wafer sheets to create a sandwich-like structure. The wafer biscuits are then cut and packed for distribution through various channels.
What problem is this solving? What pain point is it solving?
This business addresses the growing demand for convenient and healthy snack options among the busy urban population.
Sweet wafer biscuits offer a quick and easy-to-have snack option that appeals to the taste buds while providing some essential nutrients.
The availability of different flavors and the inclusion of creams attract consumers looking for variety in their snacks. By providing these wafer biscuits, the business solves the pain point of finding suitable on-the-go snacks that are both tasty and nutritious.
What is required to start this business?
To start a sweet wafer manufacturing business, you will need the following:
Hardware or tools required and where to get them:
- Mixing equipment
- Molds for wafer sheets
- Packaging materials
These tools can be sourced from local suppliers or online marketplaces.
Approximate investment required to start this business:
The investment required will depend on the scale of the operation. A small-scale sweet wafer manufacturing business can be started with an investment of around INR 10-15 lakhs.
How much space is required:
You will need a production area of around 500-1,000 square feet to accommodate the mixing equipment, baking molds, and packaging area.
How much raw material is required:
The raw materials required include wheat, flour, sugar, salt, soda, and preservatives. The quantity of raw materials will depend on the production volume and can be calculated based on the desired output.
Who is your customer – who is the user? Who is the buyer? Are they the same?
The customer and user of sweet wafer biscuits are generally the same individuals. These individuals are consumers who enjoy snacking on ready-to-eat sweet treats.
The buyer of the wafer biscuits can vary depending on the distribution channel. For supermarkets/hypermarkets and convenience stores, the buyers are the store owners or managers. In the case of online retailers, the buyers are the customers who place orders through the online platforms.
What is the market size in India? Is it scalable?
The market size for sweet wafer biscuits in India is significant and has the potential for further growth.
The global wafer biscuits market is projected to grow at a CAGR of 5.12% in the coming years. In India, the increasing population, rising urbanization, and the preference for convenient breakfast options contribute to the growth of the wafer biscuits market.
The market is also scalable as manufacturers continue to introduce new flavors and coated wafer variants, attracting more consumers and expanding the customer base.
Who can start this business? Gender, qualifications & age.
- This business can be started by individuals of any gender with a passion for the bakery and confectionery industry.
- While formal qualifications in food processing or related fields can be beneficial, they are not mandatory. Practical knowledge and experience in baking or food production processes are advantageous.
- The age of the entrepreneur can vary, but it is recommended to have a good understanding of the market, consumer preferences, and business management principles.
Where are your customers? Online customers, offline customers, export customers.
- The customers for sweet wafer biscuits can be found in both online and offline channels. Online customers purchase through e-commerce platforms and food delivery apps.
- Offline customers buy from supermarkets, hypermarkets, convenience stores, and local retailers.
- Export customers can be targeted once the business has established a strong presence and gained recognition in the domestic market. Exporting requires compliance with international regulations and building partnerships with overseas distributors.
Where are your customers located? Urban, semi-urban, or rural areas?
The target customers for sweet wafer biscuits are primarily located in urban and semi-urban areas.
These areas have a higher concentration of supermarkets, hypermarkets, convenience stores, and online shoppers. While there may be some demand in rural areas as well, the focus should initially be on urban and semi-urban regions where the population density and purchasing power are higher.
What licenses are required to start this business?
To start a sweet wafer manufacturing business in India, you will need the following licenses:
- Trade License: Obtain a trade license from the local municipal corporation or local governing body.
- Food License: Obtain a Food Safety and Standards Authority of India (FSSAI) license to ensure compliance with food safety regulations.
- GST Registration: Register your business under the Goods and Services Tax (GST) scheme if the annual turnover exceeds the prescribed threshold.
- Any special licenses like fire safety, sound pollution, water pollution license: Depending on the location and nature of the production facility, additional licenses related to fire safety, sound pollution, and water pollution may be required. Check with local authorities to determine the specific requirements.
Are GST and other government schemes required?
GST registration is mandatory if the annual turnover of the business exceeds the prescribed threshold. However, it is recommended to register for GST voluntarily even if the turnover is below the threshold to avail the benefits of input tax credits and streamline tax compliance.
Government schemes such as PMEGP (Prime Minister’s Employment Generation Programme), Stand Up India, and Udyam can provide financial assistance and support for starting and expanding the business. Research and evaluate the eligibility criteria and benefits of these schemes to determine if they align with your business goals.
How much capital is required to start the business?
The capital required to start a sweet wafer manufacturing business can vary depending on the scale of the operation.
For a small-scale setup, an investment of around INR 10-15 lakhs is typically required.
This capital includes the cost of equipment, raw materials, packaging materials, initial marketing expenses, and working capital to cover operational costs.
What is the business model of the business? B2B, B2C, B2B2C, C2C?
The business model of the sweet wafer manufacturing business can be primarily classified as B2B (business-to-business) and B2C (business-to-consumer).
The B2B aspect involves selling the wafer biscuits to supermarkets, hypermarkets, convenience stores, and online retailers who act as intermediaries and sell the products to end consumers.
The B2C aspect involves directly reaching consumers through online platforms and local retailers. The business can also adopt a B2B2C approach by partnering with distributors and retailers to expand the reach and visibility of the products.
Which are the existing businesses in India in this field?
There are several existing businesses in India’s sweet wafer manufacturing industry. Some prominent players include Hershey Food Corp, Bahlsen, Antonelli, Artisan Biscuits Ltd., Nestle SA, Mars Incorporated, and Bauducco Foods. These businesses offer a wide range of wafer biscuits with different flavors and variations. It is essential to study and analyze their business models, product portfolios, pricing strategies, and marketing approaches to identify potential areas for differentiation and competitive advantage.
Are these businesses franchisable? What is their business model?
Some sweet wafer manufacturing businesses in India may offer franchise opportunities. However, the availability of franchises may vary among different companies.
To determine if a specific business is franchisable, research the company’s official website or contact their franchise department for detailed information.
The business model of existing sweet wafer manufacturing businesses typically involves producing wafer biscuits in bulk, establishing distribution networks with retailers and supermarkets, and promoting the products through various marketing channels.
These businesses focus on maintaining consistent quality, offering a diverse range of flavors, and building brand recognition.
How to price your product? How much is the product price in the market?
- Pricing your sweet wafer biscuits will depend on several factors, including production costs, desired profit margins, market demand, and competition. It is essential to conduct a thorough cost analysis, considering raw material costs, labor expenses, packaging costs, overhead costs, and marketing expenses.
- Research the market to understand the price range at which similar products are being sold. Position your products based on quality, uniqueness, and value proposition to justify your pricing strategy.
- Pricing can be adjusted over time based on market feedback and customer response.
What is your overhead cost at the start?
- The overhead costs at the start of a sweet wafer manufacturing business include expenses such as property rental, electricity, internet, equipment maintenance, packaging materials, marketing and advertising, salaries or wages, and administrative costs.
- These costs will vary depending on the size of the operation, location, and production volume. It is advisable to create a detailed financial plan that accounts for all these overhead costs to ensure proper budgeting and financial management.
How to do a market survey for the business?
- Conducting a market survey is crucial to gain insights into consumer preferences, market trends, and competition in the sweet wafer manufacturing industry. Here’s how you can conduct a market survey:
- Define your research objectives: Determine the specific information you want to gather, such as consumer preferences, pricing analysis, competitor analysis, and market trends.
- Target audience selection: Identify your target audience, which can include consumers, retailers, distributors, and industry experts. Determine the sample size and demographics of the respondents.
- Research methodology: Choose the appropriate research methodology, such as surveys, interviews, focus groups, or a combination of methods. Online surveys and interviews can be conducted using tools like Google Forms or SurveyMonkey.
- Data collection: Collect data through surveys, interviews, or other selected methods. Ensure the data collected is accurate and reliable.
- Data analysis: Analyze the collected data using statistical tools or software. Look for patterns, trends, and insights that can guide your business decisions.
- Interpretation and action: Interpret the findings of the market survey and use them to make informed business decisions. Identify opportunities for differentiation, areas for improvement, and potential marketing strategies.
How much time is required to launch the business?
The time required to launch a sweet wafer manufacturing business will depend on various factors such as the setup process, sourcing equipment, obtaining licenses, and establishing the supply chain.
Generally, it can take approximately 2-4 months to set up the infrastructure, procure necessary equipment and raw materials, complete legal formalities, and start production. However, the timeline may vary based on the complexity of the setup and regulatory requirements.
How many risks are involved? Risk analysis.
- Starting any business involves risks, and the sweet wafer manufacturing business is no exception. Here are some potential risks to consider:
- Market competition: The presence of established players and intense competition in the industry may pose challenges in gaining market share and customer loyalty.
- Quality control: Maintaining consistent quality standards is crucial to meet customer expectations and build a strong reputation. Failure to deliver high-quality products may result in negative reviews and loss of customers.
- Supply chain disruptions: Any disruptions in the supply of raw materials, packaging materials, or equipment can affect production schedules and lead to delays or increased costs.
- Changing consumer preferences: Consumer preferences and trends can evolve rapidly. Adapting to changing tastes and preferences and introducing innovative flavors and variations is essential to stay relevant in the market.
- Regulatory compliance: Non-compliance with food safety regulations, licensing requirements, and other legal obligations can lead to penalties, reputational damage, or business closure. It is crucial to stay updated with the relevant regulations and maintain compliance.
- Conduct a comprehensive risk analysis and develop strategies to mitigate these risks effectively. Implement quality control measures, diversify suppliers, stay informed about market trends, and ensure compliance with regulations to minimize potential risks.
How many employees are required?
The number of employees required will depend on the scale of the business and the production volume. In the initial stages, a small-scale sweet wafer manufacturing business may require around 5-10 employees, including production workers, packaging staff, and administrative personnel.
As the business expands, the employee count may increase accordingly. It is important to hire skilled and reliable individuals who can contribute to the production process and maintain consistent quality standards.
How to get your first customer?
Acquiring the first customer for your sweet wafer manufacturing business can be achieved through various strategies:
- Networking: Attend industry events, trade shows, and food exhibitions to connect with potential customers, distributors, and retailers. Build relationships and showcase your products to generate interest.
- Local partnerships: Collaborate with local retailers, cafes, and snack shops to offer your sweet wafer biscuits as part of their menu or product offerings. Establish mutually beneficial partnerships to gain visibility and access to their customer base.
- Online presence: Create a professional website and social media profiles to showcase your products and reach a wider audience. Utilize digital marketing strategies, such as search engine optimization (SEO) and social media advertising, to attract potential customers.
- Product sampling: Offer free samples of your sweet wafer biscuits to potential customers, retailers, and influencers. Encourage them to provide feedback and testimonials, which can be used to build trust and credibility.
- Referrals and word-of-mouth: Encourage satisfied customers to refer your products to their friends, family, and colleagues. Positive word-of-mouth can significantly contribute to acquiring new customers.
Who do you need to hire first and from where?
When starting a sweet wafer manufacturing business, it is essential to hire individuals with relevant skills and experience. The key roles to consider initially include:
- Production Supervisor: This person should have expertise in food processing and manufacturing techniques. They will oversee the production process, ensure quality control, and manage the production team.
- Pastry Chef or Baker: A skilled pastry chef or baker will be responsible for creating the wafer batter, preparing the cream fillings, and ensuring the consistency and taste of the final product.
- Packaging Specialist: This individual will be responsible for packaging the wafer biscuits efficiently and attractively. They should have knowledge of packaging materials and design.
- Sales and Marketing Executive: Hiring a sales and marketing executive will help promote the products, establish distribution channels, and acquire customers. Look for someone with experience in the food industry and strong communication skills.
You can hire these individuals from culinary institutes, relevant industry associations, job portals, or through personal referrals. Conduct thorough interviews and assess their skills, experience, and passion for the bakery and confectionery industry.
How to do marketing and sales?
Marketing and sales strategies play a crucial role in the success of a sweet wafer manufacturing business. Here are some effective strategies:
- Develop a brand identity: Create a unique brand identity and logo that reflects the essence of your sweet wafer biscuits. Ensure consistency in branding across all marketing materials.
- Online presence: Build a professional website with engaging product descriptions, high-quality images, and an easy-to-use interface. Utilize social media platforms to showcase your products, engage with customers, and run targeted advertising campaigns.
- Packaging and labeling: Invest in attractive packaging designs that stand out on the shelves and convey the quality of your products. Ensure that the labels comply with regulatory requirements and provide accurate information.
- Local marketing: Partner with local retailers and cafes to showcase and sell your sweet wafer biscuits. Offer promotional deals, discounts, or bundle options to attract customers.
- Online marketing: Leverage online platforms such as social media, food blogs, and influencers to reach a wider audience. Collaborate with popular food bloggers or YouTubers for product reviews and recommendations.
- Sampling and demonstrations: Offer product samples at supermarkets, hypermarkets, and food festivals to allow customers to taste and experience your sweet wafer biscuits. Conduct product demonstrations and engage with potential customers to create brand awareness.
- Customer loyalty programs: Implement customer loyalty programs or subscription packages to incentivize repeat purchases and build long-term relationships with customers.
- Referral and affiliate programs: Encourage satisfied customers to refer your products to their friends and family by offering referral discounts or rewards. Collaborate with relevant affiliates, such as food subscription boxes or online snack retailers, to expand your reach.
- Online reviews and testimonials: Encourage customers to leave reviews and testimonials on your website or social media platforms. Positive reviews and ratings can enhance your brand reputation and attract new customers.
Type of workforce required for the business – Semi-skilled, highly skilled, low skilled.
The type of workforce required for a sweet wafer manufacturing business includes both semi-skilled and low-skilled workers. Semi-skilled workers can be trained on the job to handle specific tasks such as mixing ingredients, operating equipment, and monitoring the baking process.
Low-skilled workers can be employed for packaging, labeling, and general labor tasks. It is essential to provide proper training and guidance to ensure consistency and quality in the production process.
How can you win in this business?
Price, brand value, marketing & sales, location, customer service, quality, visibility, subscription packages, using better material, offer choices, referral system, commission system.
To succeed in the sweet wafer manufacturing business, it is important to focus on multiple factors that contribute to customer satisfaction and business growth. Here are key areas to prioritize:
- Quality: Maintain consistent quality standards in your products to build a reputation for excellence. Use high-quality ingredients and follow stringent quality control processes.
- Brand value: Build a strong brand identity that resonates with your target customers. Focus on branding, packaging, and product differentiation to create a unique value proposition.
- Marketing and sales: Develop effective marketing and sales strategies to reach your target audience. Utilize both online and offline channels to create brand visibility and attract customers.
- Customer service: Provide excellent customer service by promptly addressing inquiries, feedback, and complaints. Offer personalized experiences and ensure customer satisfaction.
- Pricing: Set competitive prices that reflect the value and quality of your sweet wafer biscuits. Consider market trends, production costs, and customer preferences when determining pricing strategies.
- Visibility: Enhance your brand visibility through online platforms, social media, collaborations with influencers, and participation in relevant events and exhibitions.
- Subscription packages: Introduce subscription packages or loyalty programs to encourage repeat purchases and foster customer loyalty.
- Choice of flavors and variations: Offer a wide range of flavors, coatings, and cream fillings to cater to diverse consumer preferences and provide choices for different tastes.
- Referral system: Implement a referral system where satisfied customers are incentivized to refer your products to their friends and family, expanding your customer base.
- Commission system: Collaborate with retailers or distributors by offering them attractive commission structures, motivating them to promote and sell your products effectively.
By excelling in these areas, you can differentiate your sweet wafer manufacturing business, attract loyal customers, and achieve long-term success in the industry.