Custard Powder Making Business In India Cost, Profit, Business Plan, Requirements | SkillsAndTech

Custard Powder Making Business In India Cost, Profit, Business Plan, Requirements | SkillsAndTech

Custard powder is one of the widely recognized food items that fall into the category of dessert. The easy availability of all the raw materials needed to run this venture made this business lucrative as well as profitable. Are you planning to commence custard powder making business from scratch? Are you looking for an in-depth overview concerning this form of dessert business in India? If yes, then you must go for a thorough read of this write-up.


Custard is a kind of food item that has won the hearts of millions of dessert lovers all over the world. It’s consumption rate is phenomenal not only in India but also in foreign countries. Producing and preparing custard is not a big deal. One of the most significant components helpful in the production of custard is corn. That’s the substantial reason behind the carbohydrate-rich property of custard.

Custard is a popular stable food that you expect to see in most of the kitchens in several regions. As it is reasonably priced, rich as well as poor are consuming it. It acts as a tasty base for several savoury recipes. In grocery stores, commercial custard powder is made with riboflavin, cornflour, normal salt, as well as various flavours. Custard powder is a fantastic thickener for milk desserts like Kheer, Ice Creams, Phirni, Puddings, and Fruit Salads. In brief, the custard is a great dessert or snack for the entire family. The market for custard is not confined to a segment of the community.

How to Start Custard Powder Making Business in India?

If you are aiming to start a business linked with staple food production, then a custard powder making business will be a perfect option for you. You will readily get the raw materials as well as components (Milk, Corn, Preservatives, Eggs, etc.) required for producing custard powder. Young businesspersons can easily start this form of business with fewer hurdles. You can initiate custard powder making business in India from the comfort of your home by making the controlled investment. It’s not wrong to say that this business holds loads of potential for young and smart food entrepreneurs and food business enthusiasts of India.

Healthy Business Plan

  • After examining and earning sufficient knowledge with respect to market potential, you need to come up with a logic-based and reasonable business plan for your custard powder making business.
  • Commencing a young startup or small business comes with headaches.
  • One substantial step in the process of overcoming the challenges your rapidly flourishing business is likely to face is designing a dependable business plan.
  • Knitting a business plan will help you learn what steps you should follow to accomplish your business objectives and goals.
  • Converting an idea into a viable business is a completely different ballgame.
  • A business plan is a thorough guide that entails all the knowledge related to your business moves.
  • Formulating a business plan is similar to outlining an itinerary for a thrilling road trip.
  • You need a clear map that you will follow step by step while working on the development of your business.
  • Be it financial projections, technical aim, investment field, marketing tactics or any other aspect, you will be maintaining a sound business plan, and you will be covering everything under the roof of your business plan.
  • Your business plan must guide you throughout the entire startup process – it needs to serve as a resource for assistance against those problems that are likely to arise.

Registration, Permission, and License

If you are striving to initiate your custard powder making business in India, you must register your company and attain the requisite license before you can be permitted to run your business. It is because there are several companies that are following the proper guidelines which regulate the food industry to dodge the production of substandard foods that may be unfit for consumption.

Commencing your custard powder making business needs that you go for registering your company and examine from the body regulating foods as well as drugs in your province to acquire the mandatory license. You must integrate a catchy name to your startup company that is generic to the food sector.

Given below is the list of licenses needed before initiating custard powder making business in India- 

Registration of Firm:

You may start the small to medium Business either a Proprietorship or Partnership Firm.

If you are starting this Business as One Person Company, then you have to register your firm as a proprietorship.

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For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with
Registrar of Companies (ROC).

GST Registration:

it is mandatory to get the GST number to run the business; you need to apply for the GST registration.

Trade License:

obtain trade license from local authorities

MSME/SSI Registration:

this MSME/SSI Registration will help you to get schemes and facility for the business offers by the state government

BIS certification:

BIS has mentioned the specific quality standard for Business. ISI specification for the

Trade Mark:

you can secure your brand with trademark registration

IEC code: 

IEC code is essential for the export of the product

Safety and Standard Authority of India (FSSAI):

This business is categories under food processing business; therefore, you must have to take the FSSAI license.


state insurance which is an insurance scheme for workers.

ESI Registration:

Employees provident fund is compulsory for the business where more than 20 employees are working.

To comply with the above processes and registration, one might need any legal expert who would help in absolute legal compliance to meet industrial standards. 

Investment or Cost Required in this Business

  • If you are planning to initiate a small-scale custard powder making business, then you should pay for raw materials, primarily milk, as well as other things like packaging material and other things.
  • In case you are establishing a small-scale business venture, then the remuneration of the employees is crucial.
  • The capital needed for commencing custard powder making business is Rs. 2 lakhs.
  • The cost of raw material may be around Rs. 10,000.
  •  In addition to this, on a large scale basis, the equipment cost can be somewhere around Rs. 3.50 lakh.
  • Thus, the overall cost is estimated to stay in the range of 3-5 lakh rupees.
  • For starting the business, you would have to come up with a budget plan for the business.
  • You can charge around Rs. 250 to Rs. 350 per Kg in the market.

Area or Location

  • It’s important to observe the location where you are planning to set up your custard powder making business.
  • Before getting a license to operate, you must look for a location that fit the bill for your small-scale business.
  • Location is the place/area where a firm chooses to site its operations.
  • The decision concerning opting for the location can have a substantial impact on costs as well as revenues.
  • The business location you opt for will depend entirely on the type of business you operate.
  • Shopping malls, strip malls, business parks, professional buildings, as well as others are all constructed to meet the different needs of several businesses.
  • At the time of development of your business location strategy as well as looking at options, you can keep your brand in mind.
  • In an ideal manner, you are striving to secure a location for your business that’s not saturated by your competition.
  • You need to look for areas where your competition is relatively low or where product/ service are in high demand.

Role of ‘How to Videos’ in Custard Powder Making Business

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As you are going to commence your business venture, you need to learn the procedure related to custard powder making business. For this, you should search the “How to Videos” and also you can accumulate information about it by going through some magazines.

“How to Videos” will provide your different dimension with respect to custard powder making business, and you will be able to initiate your business with a clear vision.

Opting for Unusual and Unique Flavour is the USP! 

  • The unique selling point of your business relies heavily on the uniqueness associated with your product.
  • If you have gone through in-depth market research before commencing your custard powder making business, you would know that various flavours of custard powder are available in the market.
  • Thus, you must go for producing custard with a wide array of flavours to cater to all varieties for your target group.
  • The most common flavours of custard powder in demand and available in the market are milk flavour, vanilla flavour, banana flavour, etc.
  • In the end, we must say that you should figure out your unique flavour and establish your feet in the market.

Custard Powder Making Business: Attractive Packaging

  • Attractive packaging is something that all businesspersons must consider, as we all know that packaging can create a lasting impression on the mind of potential buyers.
  • Furthermore, the packaging is important for preserving its content from any damage that may happen at the time of transportation, handling and storage.
  • Packaging must entail crucial information about the product as well as its safety. 
  • For instance, for food productsthe date of packing, the best before date, along with a list of ingredients, should be properly visible on the packaging.
  • No harmful chemical, taste, or smell should transfer from materials utilized in the packaging to the food, whether it is generated from virgin material or recycled material. 
  • Most importantly, it should become clear from the packaging if it encompasses toxic substances. Distinctive and attractive packaging will take your business into a win-win situation.
  • The unique packaging of your custard powder will ensure that shoppers will come and purchase it with faith in their heart.
  • Packaging represents the quality that a business person is capable of maintaining for smooth functioning.


The profit margin in the small-scale custard powder production business is high due to the ever soaring demand. One can easily earn Rs. 2000 on a daily basis in this business. Wholesalers mint more profit through this form of business venture. If you give a thorough reading to the points explained in the blog, you will be able to reap well via custard powder making business.

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Marketing Tactics

The first and foremost move that you must take in order to promote your custard powder making business is to create a profile of your business on all social media platforms such as Facebook, Twitter, Instagram, LinkedIn, and other sharing platforms. These platforms are the way through which you can let your business reach maximum buyers and to-be buyers. Through door-to-door selling, you can also promote your custard business. Other places where you can showcase your business are newspaper, online news portal, magazines, events and other platforms of marketing. Furthermore, you can proceed ahead for road programs where the promotion will yield better results for this business. 


Custard powder making business is an excellent source of minting money for small-scale business owners. This business can be started on a controlled budget, and return on investment with respect to this business can be beyond your expectations. The demand for this business is beyond the geographical boundaries of India, and many young business enthusiasts have already initiated this business and have made their mark in the field of entrepreneurship. 

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