How To Start Flour Milling Business In 2020 - All About Business


Sunday, October 4, 2020

How To Start Flour Milling Business In 2020

 How To Start Flour Milling Business In 2020

How To Start Flour Milling Business In 2020, Flour milling is the business who's customers are all, because everybody needs flour to make chapati.

How To Start Flour Milling Business In 2020
How To Start Flour Milling Business In 2020

If you want to start flour milling business in 2020 so you're at the right place.

In this article i'll shared all details how you can start flour milling business in large scale and and small scale. 

How To Start Flour Milling Business In Large Scale 

  1. Decide Brand Name
  2. Decide Location
  3. Required space ( Min 2000 sq. feet to maximum 3500 sq. feet) 
  4.  Buy milling machine
  5. Staff hiring
  6. Business marketing
  7. Legal documentation requirements
  8. Loan ( If you require )

  • Deciding Brand name 
Before to start any business as you know you have give it a name.

As in flour milling business brand name like, Ashirvaad flour, Patanjali Flour etc. you have to give a name to your flour same s it.

  • Deciding location

Location is very important factor in this business, because it decides your business reach to the market.

While deeding your location, you have to see that there is a big wholesale market near your location, Because the instant must reach the floor market.

Also raw material from that market is also available to you immediately.

Considering all these things you have to decide your location.

  • Space Requirement 

In starting year when you have less customers you need only 2000 square feet area. 

  • Buy machines 
Flour Mill Machine - 1 lac rupees.
Weighing machine 10,000 rupees.
Grand Total 1,10,000.
Price of flour milling machine depends on the capacity of machine. 

  • Staff hiring

For staff here are workers - per worker 10,000 rupees and for 2 workers 20,000 rupees.

  • Business marketing
For marketing of this business Hoardings are the best option. 
  1. Hoardings
  2. Posters near wholesale market area
  3. banners at major locations : Railway station, Sabji market, Local Bazaar etc.
  4. Social media marketing, like Facebook, Instagram.
  5. Local newspapers, T.V., Radio Station advertisements. 
  6. Tie-Up with hotels and restaurants 

  • Legal documentation requirements
  1. Registration of firm/company/LLP (Pvt Ltd is best or limited liability Partnership)
  2. GST (for taxation) 
  3. Licence; Fssai ( For product manufacturing ) 

  • Loan ( If you require )
  1. Initial funding 
Initial Funding is of your savings and borrow from your friends or family.

  2. Loan 

 PMEGP ( Prime minister Employment Generation Program)
Criteria To Take PMEGP Loan
  1. Initial investment upto RS - 50,000 rupees.
  2. Central government provides loans upto 90% of the total project cost.
  3. Subsidy - 25% for Rural areas
                    - 15% For urban areas
                    - 25% to 35% for reservations ( OBC/SC/ST)

Raw Material For Flour Milling

  • Wheat
Only the one thing is required for the flour milling business.

Packaging Of Flour

Packaging is very important for the flour, For flour packaging you required plastic bags.

Here doesn't mean that plastic which is banned by government. 

Use plastic which is not banned, the plastic bags are not printed with you company brand name, because it gives professional look to your product.

Investment For Flour Milling Business

  • Company shed rent ( 15,000 - 20,000 rupees ) For 2000 Sq. Feet
  • Deposit For company - Min 1 lakh
  • Machinery cost - 1,15,000 rupees
  • Furniture ( counter and branding ) - 10 -15,000
  • Electricity - As per use
  • Room of Storage - 20,000 - 22,000 rupees
  • Miscellaneous - 20,000 - 22,000 rupees
  • Capital of work - 1 lakh (3 months) 
Total Cost Of business is 3,75,000 to 4,00,000 rupees.

Operational Cost ( Monthly )

Operational cost is depends on how you are operating your business.

If you're taking a wheat from direct truck and milling it, it's cost is low compared to wholesale.

If you're taking wheat from wholesalers and launching your own brand it is a costly process, here you're for launching you're own brand so let's see,

  • Raw material ( 20,500 to 22,000 rs per tonne ) - 10 tonne (2,05,000)
  • Worker - per worker 10,000 rupees and for 2 workers 20,000 rupees
  • daily wagers - 500 rupees wager
  • marketing expense - 5000 rupees 
  • transportation - 10,000 rupees
  • water - 500 rupees
  • packaging - 10 rupees/bag
  • Electricity - 8000 rupees 
  • Rent - 15,000 rupees
  • Miscellaneous - 10,000 rupees
Total cost - 2,50,000 to 2,75,000 rupee/month. 

Target Your Market

To make money daily from it, Best target to sell it.
  • Hotels
  • Restaurants and canteen 
  • Event Planners and caterers 
  • Households
  • Students
  • Everybody in your market location


There is hardly any house in India where flour is not used, It is need of each and every house.

To start this business you need proper strategy and techniques to capture your market.

How To Start Flour Milling Business In 2020, I've shared all details about this business.

If you have any question about it, then comment below. 

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