Starting a Fruit Juice Business

In India, the demand for the fresh fruit juice business has increased lately. A fruit juice business or shop is an excellent opportunity for entrepreneurs to start a new business with low investment. The growing demand for fresh fruit juices in India is due to a change in lifestyle and the need for clean and hygienic fruit juices in India.

Many people prefer freshly squeezed or bottled juice without added flavours, colours and preservatives, making the fruit juice business a great business opportunity. The fresh fruit juice industry is an unorganised and untapped sector in India. Hence, many new entrepreneurs have been able to create large businesses and fruit juice brands quickly like RAWpressery, B Natural, and PaperBoat.

The investment in raw materials or capital equipment for the fruit juice business could be high or low depending on the business scale. But, generally, the fruit juice business has low capital investment, owing to high-profit margins.

Fruit Juice Business Model

An entrepreneur can enter into the organised fresh fruit juice business in two ways, which are as follows:

Establishing Fresh Fruit Juice Shop

Minimum capital is required to establish a fresh fruit juice shop or a chain of juice shops. Typically a small juice shop can be established with a seating capacity of around 10-20 with an investment of about 10-15 lakhs. There are also several options available to open a franchise unit of an already established chain of juice shops. 

The entrepreneur can also provide snacks and food items along with fresh fruit juice in the shop to make the business more profitable and generate additional income. The scalability limits of a juice shop and its success largely depend on its location. The demand for a juice shop is high in areas like canteens, airports, fitness centres and malls. 

Establishing Pre-Packaged Juice Business

In India, pre-packaged or bottled fruit juices are replacing traditional unorganised juice shops. The development in cold chains, food processing technology and packing methodologies have created an environment where fresh fruit juice can be transported, manufactured, and distributed across India while maintaining its freshness. 

Also, the current trend of eating fresh and healthy is driving people towards a lifestyle change, and many are finding an alternative in fresh fruit juice to fizzy or bottled drinks. Since pre-packaged juice businesses offer better hygienic conditions and nutritional value, the trend of pre-packaged fruit juices is increasing, leading to the creation of several juice businesses that are highly scalable. 

However, establishing a successful pre-packed juice business requires high investment in raw material, equipment, branding, and distribution.

Process Involved in Starting Fruit Juice Business

The following process is involved in starting a fruit juice business in India:

Determine business model

The first step is to decide on the business model of the fruit juice business. The entrepreneur must choose whether to set up a fruit juice shop or a pre-packed juice business. The entrepreneur can look into the factors such as capital investment, location of the business, fruit juice recipes, the process of making the juice, etc., to decide on the business model. When the investment is low, it is better to start with a fresh fruit juice shop and then gradually expand the business to a pre-packed juice business.

Determine the niche

The entrepreneur must decide on the niche for his/her juice business. The niche is the specialised market the entrepreneur wants to target, such as selling energy juice, organic juices, bottled juices or juice smoothies. The entrepreneur needs to study the market, profitability, and competition before selecting the niche.

Prepare a business plan

An entrepreneur must prepare a business plan for the business. While preparing the business plan, the entrepreneur must keep in mind the niche of the business, expected earnings, operating expenses, marketing, public relations strategies and analysis of competing businesses. It helps entrepreneurs to find solutions when they confront a problem or difficulty. A good business plan will keep the entrepreneurs informed about the financial goals and business fluctuations. 

Select a location

The entrepreneur must select a location to open a fruit juice shop or establish a pre-packed fruit juice unit. While choosing the location, an entrepreneur must look into the availability of many essential features, such as water supply, road connectivity, electricity, and the existing workforce in that location. The entrepreneur must also decide whether to set up shop in a self-owned property or home or take the shop premises on rent.

Licence and registration for a fruit juice business 

An entrepreneur must obtain various licences and registration from the appropriate authorities to run a fruit juice business in India. The fruit juice business can be shut down when the entrepreneurs do not have the required licences or registrations.

The FSSAI licence and GST registration are compulsory to start a fruit juice business. An entrepreneur must obtain a licence from the municipal corporation of the area. The entrepreneur must also register the business for it to be legally recognised. All the licences and registrations applicable for a fruit juice business in India are explained in detail below.

Buy equipment and supplies

Various raw materials and equipment are required for running a fruit juice business. The entrepreneurs must buy commercial-grade juicers or juice extractors to make juice in huge quantities. A fruit juice business needs supplies like cups, utensils and napkins. Washing equipment, measuring instruments, packets, empty bottles, labels, fruits, sugar, etc., are some of the raw materials required for a fruit juice business. 

Market the business

Marketing is an essential aspect of any business. The entrepreneurs can market their fruit juice business through various marketing strategies such as sending news releases to local media outlets, launching a promotional website, sponsoring a fitness day or health fair, or opening social networking accounts.

Fruit Juice Business Registration in India

An entrepreneur needs to obtain different licences and registrations to start a fruit juice business in India. The required licences and registrations for establishing a fruit juice business in India are as follows:

Business registration

The first step to establishing a fruit juice business is to obtain registration for that business from the appropriate authority. A juice business should be set up as a recognised legal entity such as a Limited Liability Partnership (LLP), partnership firm, proprietorship firm or company.

An entrepreneur can register his/her fruit juice business as a One Person Company (OPC), private limited company or LLP by applying to the Registrar of Companies. It can be started as a partnership firm by applying for firm registration with the Registrar of Firms. It can also be established as a sole proprietorship. 

FSSAI licence

The FSSAI licence is mandatory to start a fruit juice business in India. Every juice business and juice shop must register with the Department of Food Safety and Standards Authority of India (FSSAI). The turnover and manufacturing capacity of the juice business determines whether the juice business is eligible to obtain an FSSAI registration or FSSAI licence.

In addition to the FSSAI registration or licence, testing bottled juices for various compliance and parameters with food labelling regulations are mandated by FSSAI to ensure that the food product is safe for consumption.

GST registration

After implementing the GST law in India, all businesses eligible to obtain GST registration under the GST law must apply for GST registration. Thus, if the juice business turnover is covered under the GST law or carrying out business through an e-commerce platform, it must mandatorily obtain GST registration.

Business licence

The juice business must mandatorily obtain a Non-Objection Certificate (NOC) from the local authority where the business is situated. The local authority may be the municipality or municipal council.

Registration under Shop and Establishment Act

A fruit juice business must obtain registration under the Shops and Establishment Act by applying to the respective state authority. The shop and establishment registration is issued by the labour department of the state where the business is located. The Act states that it is mandatory to obtain the shop and establishment registration for establishing a shop or a commercial establishment.

Trademark registration

The entrepreneurs of the fruit juice business can apply for trademark registration. Though trademark registration is not compulsory, it is better to obtain this registration as it protects the brand name and logo of the fruit juice business. It also ensures that the business logo and brand are not used by any other company or person and grants protection in such a case.

A new or an existing fresh fruit juice business with a unique name or brand should obtain a trademark registration. It ensures that the brand is original and the business is franchisable in the future.

MSME registration

The government provides various benefits to businesses having an MSME registration. A micro, small and medium enterprise can apply for MSME registration. Fruit juice businesses having an annual turnover of less than Rs.250 crores and investments of less than Rs.50 crore can apply for MSME registration.

Since fruit juice businesses are started with less investment and turnover, they will be eligible to obtain MSME registration. It is not mandatory registration, but it is advisable as the business benefits from various schemes introduced by the government for small industries, such as easy access to capital, tax benefits, low-interest rates on loans, etc.

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