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Chocolate Business in India: An Umbrella Approach

Sonal Pruthi

| Updated: Jan 14, 2021 | Category: FSSAI Food License

Chocolate Business in India

This article talks about the umbrella approach towards the growth of the food product chocolate business in India. It is said that good chocolate has the ability to take you to the places. It has the ability to lift your mood and make you feel in a certain way.

The chocolate business in India is the most popular and growing business across the globe. The Chocolate Business needs to get an FSSAI Registration to perform as a Food Business Operator (FBO) in India. It is expected that the growth of the chocolate business is expected to see double-digit growth over the next five years.

Statistics showing the growth of Chocolate Business

  • According to the reports released by the world’s leading market agency- Mintel Agency, it has been predicted that the total value of the chocolate market will reach at the estimated INR 172 Billion in 2019, and it is expected to skyrocket at the close of 10 % from the years 2019 to 2023.
  • One out of five Indians says that eat chocolate every day. This is close to 21 %who says one must eat chocolate every day, according to the Mintel Research.
  • The Mintel Research Report has estimated that the chocolate market value reached 156 Billion in 2018.

How to start Chocolate Business?

Before starting the chocolate business, one needs to take several steps to sustain the business:

  1. Research the business before starting

One needs to look at the demands of the business, know its customers. The chocolate is the most saleable food product in the market. It is most commonly used for the gifting to the friends, relative or family. It is that product for which the customer taste and preference will matter to the maximum, for the success of the chocolate business, started by you.

When thinking to get registered under FSSAI Registration. Before starting, try to create something unique and is altogether of a different.

Review the local market and know your competitors, and what is unique in their chocolates.

Unconventional creations are always appreciated.

  1. Create something special

It is important to note that the one who is doing a chocolate business, has to create or create chocolate which gives a different experience. Think about the new flavour or styles which can be added.

The new kinds of organic chocolates or Keto Chocolates or vegan chocolates have come up in the markets.

So the idea of doing a chocolate business means a food product which can become famous as per the local demand. Try to create something unique.

  1. Place of Setting up Chocolate Business

This could mean that while the business’s success can be achieved when setting up a business is at a location where the sales can be attracted.

  1. Types of Equipment

The type of types of equipment will make difference in the chocolate business. Try incorporating multiple designs in the chocolate. Such types of equipment will make difference in the quality of the chocolates.

The kinds of equipment required to start the chocolate business in India are as follows:

a. Cutters;
b. Hand Tools;
c. Chocolate Melters;
d. Panning;
e. Tempering;
f. Bean Bar Equipment;
g. Cheese Waxing Machines;
h. Chocolate Refrigeration;
i. Depositing;
j. Enrobing;
k. Moulding;
l. Refrigerator;
m. Spinning;
n. Weighing and Finishing; and
o. Packaging of the Chocolate;

5.Capital

To start any business, finance will make a difference. The minimum capital required is 5 to 10 lakhs.

Procedure for the Registration of Chocolate Business: FSSAI License

Procedural Requirements Under FSSAI for Chocolate Business

To proceed with the registration of Chocolate Business under FSSAI Registration, various requirements have to be met, and the permission and license to be obtained for doing Chocolate Business in India are as follows:

a. Company Registration

The Chocolate Business can be started in India, either with the establishment of Limited Liability Partnership – LLP or Sole Proprietorship or through the opening of the private limited company.

The compliances are more in the case of establishing the private limited company whereas there is no much compliance in case of LLP or Sole Proprietorship.

b. FSSAI License

The FSSAI License in India is governed under the statutory provision of FSS Regulation 2011[1] (Licensing and Registration of Food Business). This is mandatory for every Food Business Operator (FBO) to take a license or do FSSAI Registration of their required business.

c. Health Trade License

The products are such that, where the concerned health license is required. In this, the health license is issued by the concerned municipal department of the state. The concerned health department has the authority to issue health trade license.

d. Trademark Registration

It is essential for every food business operator to undergo the trademark license of their concerned product to be its design or tagline or logo. It gives the security to the product from the misuse by others. It provides protection to the brand name of the chocolate.

e. GST Registration

It is essential for the owner of the chocolate business to take GST Registration. The owner needs to open a current account with the bank in the name of the bank, to obtain GST Registration.

f. Import-Export Code /License

The owner needs to obtain the import-export code. Suppose the owner of the chocolate business wants to expand its horizon globally or make a global mark. It is a unique 10 digit code issued by DGFT- Directorate General of Foreign Trade. It for the owners who have who are doing import and export of the chocolates.

g. Labeling of Ingredients

It is important that every food product must include its ingredients. It is necessary to have the quantity of vegetable fat in the wrapper of the product.
This is a guideline under the FSSAI Registration.

FSSAI License under Authorities:

There are two authorities where the FSSAI Registration for chocolate business is required:

a. Central Authority
• Here the annual turnover required is more than 20 crores
b. State Authority
• Where the annual turnover required is between 20 lakhs to 20 crores.

Where the annual turnover is less than 20 lakhs, the necessary registration certificate is issued under FSSAI.

Essential Documents required are as follows under FSSAI Registration:

  1. Address proof- Authorized person
  2. Passport size photo of the directors/ owners
  3. Registered Business name and address of the place of business
  4. FSSAI declaration form
  5. A Description of the nature of business details

Documents Required for the FSSAI Central or State License

  1. Produce a Rental Agreement of the current Business Premises.
  2. ID Proof of the owners
  3. MOA –Memorandum of Association and AOA- Article in case of a private limited company
  4. A Partnership Deed / Pan card / GST / Shop & Establishment / Trade License
  5. Import and export Code
  6. Must have Authority letter from the company letterhead to the concerned person stating that he is authorized to file FSSAI application.
  7. List of food category desired to be manufacture

Conclusion

It can be concluded that the FSSAI Registration for the chocolate business, is essential to do Chocolate Business. It creates a record of the owner under the registered food operators in India.

Read our article:FSSAI Food License for Schools and College Canteen

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Sonal Pruthi

She is B.Com (H), LL.B LLM, Cs (Module 2) And Certification In Cyber Law From ILI Qualified. She has Been A Legal Teacher In The Previous Organization. My Strength Is My Expertise Knowledge In Civil Laws, Corporate Law And Tax Laws. I Have Been Legal Teacher And Legal Trainer In The Past Organization. Her Knowledge About The Subjects Have Expanded Due To Teaching Number Students From Various Universities All Over India.

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