Tomato Sauce Making Business In India Cost, Investment, Profit, Requirements | SkillsAndTech

Tomato Sauce Making Business In India Cost, Investment, Profit, Requirements | SkillsAndTech

Tomato sauce making business is identified as the most cost-effective business venture. Intending to set up the tomato sauce making business successfully, all you need to have is the right planning and implementation. Being one of the largest producers of tomatoes, India provides a great market for the tomato sauce making business.

Tomato is identified as the edible berry of the plant Solanum Lycopersicum, usually known as a tomato plant. Though the tomato is considered a vegetable worldwide, it is also traded for making tomato sauce. Tomato sauce is a product made out of tomatoes that has a massive reach of people who love it. The constantly growing reach of tomato sauce is the major reason that small-scale entrepreneurs look for investing in the Tomato sauce making business.  


Tomatoes are extensively grown worldwide, and the highest yield per hectare is 245 tonnes/hectare in the Netherlands. As per various reports, it is stated that the average yield of tomatoes is 23 tonnes per hectare. However, in India, the average yield of tomatoes is 9.6 tonnes per hectare.

Products made out of tomatoes, such as- tomato sauce, ketchup, tomato puree, juice, etc., are mostly seen in every household of India. The tomato sauce is also majorly found in every cafe, restaurant, Dhaba, etc. Hence, choosing to start the Tomato sauce, doing a business can be an excellent decision for people struggling to set up a business. 

Used as the alternative to fresh tomatoes, the tomato puree is used in the tomato sauce making. Tomato sauce is a sweet and salty sauce prepared by using a diluted version of puree.

An Overview to Tomato Sauce Making Business

Tomato sauce is a product that has maintained its demand since its existence. Tomatoes taste both sweet and sour, and the tomato sauce also tastes the same primarily. The tomato sauce is consumed with food, wafers, snacks, rolls, etc. From eating our favorite French fries to dipping our snacks in it, or even making our boring recipes a lot tastier, the tomato sauce is loved by everyone.

The tasty combination of sweet, salty, spicy, and tangy tomato sauce always makes us eat it with every meal and all the snacks. Tomato sauce is a product that has maintained its demand since its existence, and hence the tomato sauce making business can be stated as a great profit-earning business.

Benefits of Consuming Tomato Sauce

With the rapidly changing time and lifestyle of the people, health and healthy consumables are being given good priority. This is the reason that these days, there is a huge demand for homemade tomato sauce. 

Therefore, tomato sauce is considered as one of the best condiment and also has the following benefits:-

The key ingredient to dishes

  • Tomato sauce is very much present in the regular dishes we consume. 
  • It can be found in BBQ chicken sliders, sweet chicken, shrimp cocktails, etc. The tomato sauce can add flavor to any recipe making it more delicious. 
  • Though the tomato sauce might not be added to every cooked meal, it can still be consumed with every snack by dipping it in the tomato sauce.

Tomato sauce is low in Fat and Calories

  • One tablespoon of Heinz standard ketchup contains 20 calories only. It is way less than 1% of the daily recommended calorie intake.
  • In addition to this, the tomato sauce contains no fat (less than 1%) in each tablespoon served. 
  • So, whenever you sit to eat your favorite snacks, fries, wafers, or burgers, grab the tomato sauce and make your food more delectable.

The Flexibility

Being the most popular condiment, tomato sauce has its place across the globe. Found in all the cuisines, pasta dishes, American meatloaf, Mexican enchilada sauce and, Indian curries, the tomato sauce is considered as the quick and tasty appetizer. 

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Cost and Accessibility

  • Along with good nutrition, the tomato sauce offers you adequate economic value. In comparison to the meat-based sauce or cream-based sauce, the flavorsome tomato sauce generally costs less. 
  • The all-time favorite and loved kitchen staple tomato sauce holds a vast market reach with big market potential. The Tomato sauce making business can never fail and can always easily gain a good amount of customers. 

Why is the Tomato Sauce Making Business Profitable?

  • The biggest reason behind the extensive profit earned in the tomato sauce making business is its increasing demand in the market.
  • Presently, the annual growth of tomatoes seems to be increasing with a growth of 20% per annum. With a great market for tomato sauce in India, this demand will increase in the future.
  • Tomato sauce is consumed with snacks and is also used to colour the snacks as well as the wafers for garnishing the dishes in the restaurants, cafes, etc.
  • The Food culture of Indians has undeniably given rise to the extensive demand for tomato sauce as it is being used as a flexible consumable in every household for ages.

The Increasing Demand

  • As stated afore, tomato sauce is in great demand in the market but with tough competition along. As in today’s time, people have become quite health-conscious; they focus deeply while choosing their meals or snacks. 
  • Quality has been given preference over quantity. Now, this is the reason why homemade products like- tomato sauce, ketchup, etc., are in high demand.
  • If you choose to establish the tomato sauce making business, you can make a huge profit out of it. 

Market Potential of Tomato Sauce Making Business

Here are a few points on the market potential for this business:-

  • The industry of Tomato sauce making business is enormous, and its market in India has constantly been growing at around 20% on a yearly basis. 
  • Additionally, there is a big market for the processed products of tomatoes.
  • The market has also revealed a positive indication for the tomato sauce in both the local as well as the international market. 
  • Speedy urbanization has also contributed to the increased use of tomato processed products.
  • The target market for the tomato sauce making business can be the working sectors of our society.
  • With the growing population, the sale of tomato sauce can be increased substantially.
  • Products made out of tomatoes such as tomato sauce or ketchup are considered the most important ingredients in fast-food or ready-to-eat products. 
  • Therefore, the tomato sauce increases its usage as a flavor enhancer in the dishes.
  • Another important reason for the growing popularity of the tomato sauce is its packaging in different forms like- Brick packing, Multi-layer- Flexible plastic packaging, and Tetra pack.
  • Packaging of the tomato sauce in this way has made it easier to distribute products to the sellers in distant, vast, and remote areas.
  • The packaging of tomato sauce and tomato processed products in this way has made it possible for the consumers to store these at room temperature for more than four months.

Licenses and Permits

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Entrepreneurs who are running their business on a small, medium or large scale must go for the registration. Thus, if you are willing to commence Tomato Sauce business in India, you need to meet the registration requirements and pass the registration process. The registration will render umbrella insurance coverage to your business. Besides this, you must follow all the legitimate steps and acquire the mandatory licenses and permits to run your business without any worry.

Given below are the licenses and permits required for initiating paneer making business anywhere 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.

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. 

Raw Materials Used

Let us now know about the raw materials used in the tomato sauce making business.

The sweeteners used in tomato sauce making are generally either beet sugar or granulated cane. The other sweeteners used are- liquid sugar (used in the form of glucose syrup or corn) and dextrose. The white vinegar is used to shield the tomato sauce, and it is usually 100-grain distilled.

The main ingredients used in tomato sauce making are:-

  • Paprika
  • Cinnamon
  • Allspice
  • Mustard
  • Cassia
  • Pepper
  • Cayenne
  • Ginger
  • Cloves
  • Tomato
  • Spices
  • Flavorings
  • Salt
  • Onion
  • Garlic
  • Sweeteners

In comparison to the spice oils or ground spices, these various spices give a milder flavour to the tomato sauce. To cook a good quality tomato sauce, it is advisable to use expensive and good quality spices. Moreover, several brands of tomato sauce have marginally different formulas. These formulas essentially differ in the amounts of flavourings or spices. 

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While preparing a thicker consistency of the tomato sauce, it is essential to keep the number of relative spices and sugar more.

Machinery and Equipment 

Given below is a list consisting of the machinery and equipment used:- 

  • A Steam boiler
  • Laboratory Equipment
  • Processing tank and Exhaust
  • Vacuum filling machine
  • Bottle washing machine
  • Washing machine (collection tank, rotary rod, washer equipped with spray arrangement, etc.)
  • Crown cork machine
  • Pasteurized tank
  • Working Tables
  • Weighing balance
  • Pulper cap
  • Weighing Scales platform
  • Water storage tank cap (HDPE)
  • Misc. equipment like peeling knives, buckets, cutting board, etc
  • Pollution Control Equipment
  • S.S. tilting type steam jacketed kettle of cap
  • S.S. tilting type steam jacketed Vacuum kettle of cap

Tomato Sauce Making Process

  • Firstly, the tomatoes are washed thoroughly.
  • Then these tomatoes are chopped and are half-cooked.
  • The tomatoes are then put in the pulping machine. Here, the stem, skin, and seeds are separated from the pulp.
  • The pulp is then filtered through screens and is processed into the tomato sauce.
  • The pulp is pumped into the kettles and is heated to boiling, and a precise amount of flavourings, sweeteners, spices, vinegar, salt, etc., is added to the tomato pulp.
  • Once the tomato pulp is cooked with the spices, the mixture is passed through a finishing machine.
  • The tomato sauce is then passed on to the holding tank.
  • The tomato sauce is then kept to cool down. Now, once the sauce has turned cool, itis filled in the containers.
  • Finally, the containers (bottles, sachets, etc.) are filled, packed, and labelled. The tomato sauce making process takes nearly 3 hours.


Tomato sauce is a condiment that has successfully maintained its huge demand since its existence. With the rapidly changing lifestyle of people, the demand for tomato sauce has been growing at a rate of 20% annually. Visualizing the rising demand and need for tomato sauce, it can be easily stated that establishing the tomato sauce making business will result in immense success. 

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