Business Opportunity: Candy Manufacturing

Candy is a confectionery made with sugar or chocolate and flavored with fruits and nuts. Candies are popular with adults and children alike and constitute a large market of around Rs. 6,000 crore[1] which is growing at a CAGR of 14 per cent.   The market is broadly divided into two segments: Hard boiled segment (Mango bite) and soft toffee (Éclair). Hard boiled segment accounts for nearly 30 per cent of the market and is growing at 24 per cent.

While the market has a large number of national players (such as Nestle, Parle etc), smaller/local companies have also been able to grow as they are able to offer differentiated product and sell locally. Some of the Hyderabad based players are as under.

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Candy is manufactured by dissolving sugar in the water or milk to make syrup, the syrup is boiled until it reaches desired concentration. The syrup is then cooled and molded into different shapes. The hard boiled candy is boiled for longer time vis a vis soft candy.

Production Process
Picture: 1 – Stages Involved in Candy Production Line

Candy production line

Picture: 2 – Candy Making Unit

Toffee-Depositing-Machine

Budget

Machinery with capacity 2 Ton per day around Rs. 20 Lakhs and the total cost including Land, Labor and machinery cost will not exceed Rs. 40 Lakhs. The minimum land required to put this plant is about 3000 sqft and the area requirement will increase with increase in machinery capacity.

How can we help you?
  • We can help you start a candy manufacturing business through a number of services including business viability assessment, market landscaping and expert consultation.
  • We also offer support in executing your ideas by connecting you with sector experts and professionals.
Reach Us

Write to us: bchhatre@finetrain.com, admin@finetrain.com

Call us: 800 888 4932 /9032398367

Visit us: www.finetrain.com

[1] Source: http://brandequity.economictimes.indiatimes.com/news/business-of-brands/ds-groups-pulse-candy-the-sweet-that-has-set-the-candy-markets-pulse-racing/51888159

 

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T- PRIDE: Promoting Entrepreneurship among Scheduled Caste and Scheduled Tribes

The Telangana State Program for Rapid Incubation of Dalit Entrepreneurs (T-PRIDE) aims to develop entrepreneurship among Scheduled Caste and Scheduled Tribes. The scheme, which covers both manufacturing and service sector establishments offers a number of incentives to start a new enterprise or expand an existing business. This blog discusses key features of the scheme and its contribution to Dalit entrepreneurship.

Picture 1: Key incentives for Micro and Small enterprises under T- PRIDE

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What type of enterprises are eligible?

In order to claim incentives under T-PRIDE, an enterprise

  • Should be 100 percent owned by SC or ST entrepreneur or both together in case of a joint venture.
  • Should commence operation on or after 1st January 2015 and before 31st March 2019.
  • Can be manufacturing or a service sector unit. For manufacturing units, certain sectors are considered ineligible (list included). For service sector, the government has specified a list of industries that are eligible (list attached).
  • Can be set up anywhere in the state, manufacturing enterprises if set up under GHMC limit, should be set up in the existing industrial estates[1], service enterprises can be set up anywhere
  • Can be a new or an existing enterprises that is expanding or diversifying its business, as shown in the table below.
Picture 2:  Eligibility parameters for existing and new enterprises

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When are these incentives given?

Generally, these incentives are given as reimbursements within 6 months of starting commercial production.  However in some cases, investment subsidy can be claimed before start of commercial production, provided the bank loan has been sanctioned.

How do I arrange finance for my project?

The finance for these projects can be obtained under Stand up India scheme, a scheme that aims to increase capital availability to SC/ST enterprises. In order to read more about Stand up India, please click here.

How many units have benefited thus far?

Based on our analysis of proposals sanctioned by SLC (State level investment committee of Commissioner of Industries, Telangana) during last two years, around 1100 enterprises have obtained approvals for incentives under T-PRIDE.  As can be seen in the picture below, transport and construction sector together account for around 60 per cent of incentive claims. Others, include hospitality, hospitals, mining, and engineering. In terms of geography, Warrangal accounts for highest number of claims, followed by Nalgonda and Karimnagar.

As such, there is a need to promote formation of new enterprises in manufacturing, agri related sectors as these boost employment and lead to development of district economy.

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How can we help you?

FineTrain is an advisory firm for small businesses; we assist our clients in starting or expanding their businesses.  We offer

  1. Advisory to help you to choose suitable business opportunity and DPR preparation
  2. Technical consultation
  3. Project implementation support
Reach us:

Write to us: bchhatre@finetrain.comadmin@finetrain.com

Call us: 800 888 4932

[1] The manufacturing units established in Sanathnagar, Azamabad, Chandulal Baradari and Kattedan Industrial Estates of Hyderabad and Ranga Reddy Districts are not eligible for any incentives/concessions.

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