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8 Steps to Start Beverage Companies in India | The Guide

While observing the trend of Beverage Companies in India, are you looking for how to start a beverage company or how to start a soft drink business?

Here is a step by step process to set up beverage companies in India, but let us first have a brief about it.

What is a beverage company?

The beverage is a drinkable liquid, for example, tea, coffee, juice, alcohol etc. A company that manufactures and sells beverages is known as a beverage company.

Types of Beverages

Commonly beverages are divided into two categories: alcoholic and non-alcoholic.

  • ALCOHOLIC BEVERAGE-These is portable liquids that contain 1% to 75% of alcohol. A kind of beverage produced by fermentation or distillation of grapes, grains, barley, fruits, sugarcane, and rice. For example Wine, Spirits, Champagne, Beer, Whiskey, Brandy, Aperitif, and Cocktails.
  • NON-ALCOHOLIC BEVERAGE- Also known as temperance drinks because it does not contain any percentage of alcohol. Such as Soft drinks, tea and coffee, milkshakes, fruit juice, mineral water, and hot chocolate.

HOW TO START THE BEVERAGE BUSINESS?

The beverage companies in India is a rapidly growing business in India. It has been bisected into four different branches: Hot beverages that include tea and coffee; healthy drinks and fruit and vegetable juices; carbonate drinks; and last alcoholic drinks like rum, beer, whiskey.

8 steps to start a Beverage Company

1. Recipe analysis

Test recipes of other brands and try to make them at your home. Try different types of beverages to learn about taste. Host tasting parties with your friends and family for feedback. Collabs with local grocery stores or small cafes to get more and more feedback. Gather more and more information about beverages and analysis them. It will help you to develop your drink.

2. Company registration

When you look for how to start a beverage company, the first thing to look for is how to register it.

Business registration or online company registration is the primary step to starting a beverage business.

  • GST/ Goods and Service Tax Registration – It is compulsory for all the businesses involved in the taxable supply of goods or services to go for the GST registration and acquire the GST number.
  • EPF/Employees Provident Fund Registration -All manufacturing businesses having more than 20 employees in the company should get an EPF Registration. This scheme provides retirement benefits to the employee.
  • ESI/ Employee State Insurance Registration- It is mandatory in India for all Businesses having ten or more employees to obtain Employee State Insurance ESI Registration.

3. License and certificates

  • FSSAI/ FOOD SAFETY AND STANDARDS AUTHORITY OF INDIA License- All beverage companies in India have to follow the safety standards for healthy drinks.
  • Trademark Registration for your Brand: Get your company name and logo trademarked by going for trademark registration online. It will help you protect your brand identity and build a brand name. Also, check for food product trademark class while looking for available trademarks to avoid conflicts.
  • No Objection Certificate from Pollution Control Board- All businesses in India must acquire the NOC from the State Pollution Control Board before executing their business services. Also, it is a most important thing to keep in mind when you look for how to start a soft drink business.
  • Drug and Pharmaceutical License- If you are manufacturing a beverage that includes caffeine, it becomes necessary for the business administrator to get permission or license from the Food and Drug Department regarding the limit of caffeine used in the beverage. And you can also apply for private limited company registration in Mumbai if you are likely try your luck in the city.

4. Infrastructure and location

The correct choice of location is a must to set up a factory. Usually, the factories are located in the outskirts of the cities to prevent environmental risks. Establish your factory near to an area which provides you transportation and good electricity and water facilities. Also, keep it connected to the city so in case of emergency you can call for help. It is also one of the most important aspects to look for in setting up beverage companies in India.

5. Equipment and raw material

Beverage making requires a lot of raw materials and machines regulated by the type of drink you are producing. Always get a location where you can meet your requirements like electricity and water. In a manufacturing business, it has been observed that owners usually buy cheap machinery to facilitate cost-cutting.

While buying machines, you must ensure that the quality of machinery should be high and modern. Equipment like mixers, refrigerators, compressors, blending systems, and carbo coolers, is commonly used in factories.

6. Processing and Packaging

Packing decides the quality and appearance of the drink. It is said that good packaging protects your product and great packaging saves your brand. Packaging should be made by keeping two things in mind first is it should be handy and attractive to gain buyers’ attention, and second it should not affect the formula and taste of the beverage. Other factors involved in the processing are the weight of the drink, expiry date, hygiene, taste variation.

7. Marketing and Branding

Marketing and branding play a vital role in converting beverage companies in India into successful brands. The first thing audience looks at beverage brands is its packing, how premier it feels, and appears.

Your branding concepts can make or break your chance of success. Examine the logo and tagline of all the brands in the market you know.

Finalize a logo and a tagline while keeping your target audience and beverage type in mind.

Basic Bradings Ways :

  • Logo designing- Your logo should express the essence and nature of your product. Appoint a professional logo designer to create your logo because this will be the identity of your company. It should be original and unique. Also, do not change again and again because it confuses the audience.
  • Bottles Design – All the popular beverage products are famous for their bottle design. While choosing the type of bottle, think like a consumer that why should he buy this? Is it handy or healthy or attractive or unique? Also, think like a manufacturer that Is it budget-friendly or cheap but looks good? Other than this, you should check the effect of bottle material on your beverage material.
  • Website/Social Media – Whether you plan to sell your products online or not, having a presence online is important these days. Make sure the website is professional and easy to navigate. Include your logo, products, company history, and contact information. Do the same for your social media pages and have a strategy in place to ensure these pages updates frequently and are good for marketing and positive interaction with your target market. People rely on their Google searches when they want immediate information. Without a web presence, consumers may be less apt to trust your product and brand.

8. Merchandising

At last, an effective sales strategy is important in any beverage business. So when you look for how to start a beverage company, you should also consider some sales strategies.

Depending on the nature of your business and the kind of drinks, you must be clear that you need to land your business to the right kind of deals with wholesalers, direct sales, or on e-commerce platforms.

Pricing is another key element that is of utmost importance and should be selected carefully. While putting the price on the product remember to calculate margins in manufacturing and selling costs as the marketing and overhead costs are high.

To conclude, this was everything one needs to know about to start a beverage company in India. If you have any queries regarding steps in incorporation of a company then you can always consult an expert for the purpose.

 

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