Wheat flour is a food item that is used by every Indian household on a daily basis and has a constant and never-ending demand. In particular, wheat flour in India is used in large quantities to make chapatis, rotis, sweets, biscuits, cakes and bakery products. Due to this, the wheat flour industry is growing rapidly today, yes, in the last three years, the market for packaged wheat flour in India has grown by about 19%. Also, although domestic brands have a large market share, the branded sector is still expanding rapidly due to hygiene and convenience factors. Therefore, starting this wheat flour manufacturing business would be beneficial to meet this increasing demand. In this situation, if you are thinking of starting a business from home with low investment, then, in this article, we will guide you a complete wheat flour mill business plan from home.
Table of Contents
Types of Flours and Market Scope
The market scope of wheat flour manufacturing business in India is very large and lucrative. Yes, the consumption of packaged flour is increasing in India due to increasing urbanization and hectic lifestyle. According to a study, this packaged atta market reached INR 84 billion in 2024 and is expected to reach INR 256 billion by 2033. Also, when it comes to flour, you are not limited to the usual wheat flour. There is a wide range of products that you can manufacture depending on the market requirements.
For example, there are high-margin health-based products like refined flour or “maida”, sooji or rava and multigrain flour. And this industry has been allocated by the government under the Small Scale Industries category. Additionally, the growing popularity of multigrain flour is creating new opportunities for small manufacturers. Therefore, you can use this diversity to target different customer segments and increase your overall profit margin.
Space Requirement
Now we need to discuss the space requirements of this small wheat flour mill business plan from home. Typically, a small unit with a flour machine, cleaning equipment, and a few storage bins will require approximately 200 to 500 square feet of space. But when it comes to a medium-sized unit, you may need an additional 500 to 800 square feet of space for packing and loading/unloading. However, it should be pointed out that this is just an estimate and may change depending on your specific needs. Also, in this business, the biggest investment is buying land, so you can save money if you have your own land. So, start with a small unit and scale up as your customer base grows.
Raw Material
The main raw material for the wheat flour production business is of course whole wheat. Also, for the production of pure flour you will need good quality wheat grains, which you can get directly from your nearby or local farmers or from the wholesale market. In addition, you will also need packaging materials such as plastic bags or cloth bags to pack the flour. Importantly, the quality of the wheat is very important, so always make sure to check the right grain quality and buy one that has low moisture content.
Machinery & Equipments
A home-based wheat flour manufacturing business requires a few basic machines and equipment. Moreover, the price of these machines varies depending on the capacity, size, consistency, features, and more. First, a grain cleaner is required to clean the wheat, which removes stones, dust, and other impurities. Next, a pulverizer or grinder is required to grind the wheat. These are available in different capacities as automatic and semi-automatic. Next, a sieve or sieving machine is also important to sift and separate the milled flour. Finally, a packaging machine is required to pack the prepared flour and a weighing machine to weigh it. All these machines can be purchased from local machinery manufacturers or through online platforms like Indiamart, Alibaba, and TradeIndia.
Investment for Wheat Flour Mill Business
The specialty of this business is that it can be started on a small scale with a low and medium capital. Yes, there are many ways to start the business depending on your budget. Starting a small scale wheat flour business with a basic milling unit will cost around Rs. 30,000 to Rs. 50,000. Or a medium scale unit with a better production and semi-automation may require ₹3 to ₹7 lakhs to start. Also, if you have a bigger budget, you can opt for a fully automated plant priced at ₹15 lakhs or more. However, these estimates may vary depending on different geographical locations and suppliers, so it is important to prepare a detailed business plan with your own market research.
Licenses & Registration
Next, let’s look at the licenses and registrations required to start a small wheat flour manufacturing business. First, the most important of these is the FSSAI license, which is mandatory for any food-related business. Then, you will need a GST registration to sell your product in the market and claim input tax credits. Apart from that, MSME/Udyam registration is useful for government schemes and subsidies. Also, if your wheat flour manufacturing unit is to be started on a large scale, you may also need a factory license from your local municipal authority. Importantly, a small-scale home-based business will require a trade license. But, don’t worry, you can apply for all these licenses either offline or online.
Wheat Flour Production Process
The process of converting wheat into flour with a small scale setup is very simple, for this, first, good quality wheat needs to be purchased from the market, then it needs to be cleaned using a separator machine to remove the impurities from the wheat. Next, the cleaned wheat is ground into flour using a small pulverizer or roller mill. After grinding, the flour undergoes a sieving process to remove the remaining husk or particles. Finally, the prepared flour is packaged in different sizes and sent for sale in airtight bags with details like weight, nutritional information, expiry date and your brand name clearly mentioned. Importantly, since this is a food item, hygiene is non-negotiable. Therefore, use food grade steel as much as possible, maintain cleanliness and follow basic safety standards in your unit.
How to Sell Your Product
There are many ways to sell your small wheat from home. First, approach local hotels, restaurants, bakeries and sweet shops in your area and start selling in bulk. Then target small grocery stores and large stores and offer samples of freshly milled flour and get orders. Then you can list your product on online grocery platforms like BigBasket or JioMart. Also, use social media platforms like Facebook and WhatsApp to post pictures of your products with prices. Finally, it is also beneficial to provide great customer service to bulk buyers or food service establishments.
Profit in Wheat Flour Mill business
Now let’s look at the profit margin in this wheat flour mill business plan. Generally, the profit margin mainly depends on the purchase price of wheat, power consumption, packaging costs and the quality of the flour you sell. However, you can expect a profit margin of 10% to 30% for a wheat flour business. For example, it costs you ₹18 to ₹20 to produce 1 kg of flour, and if you sell it for ₹25 to ₹30, you will get a profit of ₹7 to ₹10 per kg. That may seem small, but if your unit produces 500 kg per day, you can earn a net profit of ₹3 to ₹5 lakh per month. Yes, with low raw material costs and high daily demand, starting a small-scale wheat flour manufacturing business from home can be very profitable.
Conclusion
We hope this wheat flour mill business plan can be a very rewarding venture for you. However, success in this business depends on strategic planning, effective use of machinery, sourcing high-quality wheat, maintaining hygiene standards, and building strong distribution networks. Whether you’re starting small from home or planning a large-scale commercial setup, having a clear business plan that covers your investment, operational process, marketing strategy, and financial projections is essential.
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