How to Setup Home-Based Bakery Business in India?


Many wishes to take their love for baking a cake for friends and family, one step forward and make it a source of earnings. The baked goods and bakery business in India have noticed massive growth over the last few years upheld by the strong demand for processed foods. In addition to increasing in the number of stores of their own bakeries and established bakery chains, this business has been taken up as a home-based business by many women entrepreneurs.

They might have all the required equipment and baking skills, but lack knowledge of registrations and other procedures associated with the business which are essential to be followed to avoid any legal hassles in the future. The growth of home-based business has been high due to several factors. Creating a bakery business requires very minimal capital investment and workforce, making it very easy for homemakers and students. In this article, know the procedure and how to start/operate a home-based bakery business in India.

Business Registration.

One of the important decisions while starting a business is to choose a legal structure. Usually, the small or home bakeries register their business as a proprietorship, partnership, LLP or Pvt Ltd company registration in India. A home bakery can also apply for a trademark registration. It shall identify and predict the unique name of the bakery and shall be beneficial in the long run.

Necessary License.

Another mandatory registration needed for a food-based business is the FSSAI license/registration. For several types of a food business, Food Safety and Security Authority of India has directed three kinds Basic, State, and Central License. In the first stage of business, the preferred one is the Basic FSSAI registration. You may consult an expert who shall guide you in the procedure of obtaining FSSAI License. The bakery business also needs other permits such as Police Eating House License, Local Municipal Corporation Health License, GST Registration.

Create a Plan.

The main reason for the downfall of any business is not having a suitable plan which can lead for long. Therefore, it is necessary to make a complete plan before starting a business. The thing which should be outlined is what will be your business about. Equipment, staff, marketing, and each and everything which will be added in the business create your plan for bakery business as it would help you in streamlining the operations, deciding the budget and planning the future growth of your bakery business. Mostly, things you can include in your plan is a Business overview, Operations and Marketing plan, Industry, Financial and SWOT Analysis.

Necessary Equipment.

The kitchen equipment is expensive for a bakery business since each material is made up of stainless steel which is long-lasting and strong. The main equipment required in the bakery is Planetary Mixers, Oven, Deep Fridge, Cooling Fridge, Working table, Gas stove, Cylinders, storage utensils, Ovens, several plates and boxes, and other equipment. Unlike Food truck or QSR, the bakery requires new equipment for better efficiency. Even you can add on many more things as per your creativity and requirements. The necessary things which are used while baking can be cream, cake base, frosting, sugar, etc., as well as other things, will cost you around 10000 – 15000 rupees, you should initiate the business with basic requirements rather than using on any luxury item.

Other requirements.

Since it is a bakery business, it is mandatory to have a landline and mobile phones. As online or ordering on the phone has become a rage these days, it is also essential to have online tie-ups. It is gradually recommended that you have your own bakery’s website. A good site would not cost you more than Ten thousand. Moreover, remember to add an ‘Order Online’ widget on your website to attract customers.

Products Packaging and Pricing.

Packaging can include the boxes, spoons, tissues as well as other extra items. This all will be enough at the primary stage, looking after the profits which will be made you can renew and innovate your business.

As you are a cake baker, you will know that there are several types in cakes, so you need to select what all varieties will be available and what you can decorate. Having a wide variety of offerings can make you an appealing choice for a broad range of people desiring different things, but specializing in particular areas makes you an expert and lets you charge more for your services. Pricing made by you for the product should include the prices of the ingredients which you use, workforce required, make sure that you are not making any loss or selling the product at very less price.

Business Location.

One of the primary steps of starting a bakery in India is to select a good location. For a bakery business, the ideal location will be a high-end shopping street or a reputed market. Ideally, your store should be easily visible and accessible. Though, this is biased to the space available, optional and of your own choice. However, you can also start a bakery business from home.

Marketing and Branding.

Marketing and branding are necessary for any business to grow, and a bakery is no guest to this. Get a well-designed logo and display board from a known designer. This will help you to create your unique identity and also aid in your branding.  Get yourself a well-designed menu. For the first few months, distributing pamphlets will be good enough to market your bakery. Apart from pamphlets, invest some money in an excellent display board to attract customers.

Courtesy – is one of the leading websites for Company Registration, GST Registration, Trademark Registration Annual Compliances. FSSAI License/Registration, IEC Registrations and Modifications. Our mission is to save the time of our clients by taking care of above-related services so that our consumers can concentrate more on their business.