Do you intend to launch your own company? Have you become weary of boring 9-to-5 jobs and wanted to generate a passive income stream? If given a chance, would you launch a Corn Flakes business to kickstart your entrepreneurial journey?
If your response was “yes,” you should continue reading this article and discover more about a Corn Flakes Business Opportunity, which can help you build an enormous wealth.
In this post, we’ll cover a detailed article on the Corn Flakes Business plan with its capital required, cost, profit, and step-by-step guidelines to start this business – and answer some common questions about the same.
- Idea: Corn Flakes
- Segment: Grocery
- Growth rate: 6-7%
- Channels: Online & Offline
- Total Investment: ₹10 lacs to 15 lacs
- Area Required: 2000-2500 sq ft
- Profit margin: 30-35%
- Flexibility: Yes
- Platforms: Amazon & Flipkart
Table of Contents
Overview of Corn Flakes Business
Without a doubt, Corn flakes are one of the most popular breakfast cereal or snacks that is mostly consumed in morning or evening. As the name suggests, Corn flakes are made from processing corn. In India or other part of the world, it is often consumed with milk and sugar and certainly a convenient breakfast options.
With the rise in quick food demand, several companies has brought their flakes in the market, including Kellogg’s, Nestle, and many more that undoubtedly increased the competition in the local market. However, considering its growing demand, there is a still room for small players to enter the market with proper strategy, put it on test in local market and slowly & steadily upscale it.
If you are from India you might have seen several local shops selling loose Corn flakes selling at much cheaper rate than the packed one. What if you initially offer your improved Corn Flakes to your neighbourhood market? We can assure you that even if you quote a greater price, there will still be a demand.
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Current and Future growth prospects for Corn Flakes Business
There are several varieties of cereal available in the market and each of them has separate fan base. However, According to the Future Market Insights, The global demand for Cereal/ Corn Flakes market is expected to grow at a compounded annual growth rate(CAGR) of 6-8% during a period of 2022-2032.
What is the Corn Flakes Business Plan?
There are several steps involved in setting up a Corn Flakes trade;
- Perform extensive market research:
- Irrefutably, Indian food market is insanely competitive, but it also rewards great products with premium pricing. So, before finalizing your core or operational area, you must perform rigorous market study and growth opportunity.
- Figure out your Target Market/Audience:
- The above mentioned steps will help you figure out your target market. Nonetheless, Corn flakes in India is primarily consumed by health-conscious urban or semi-urban consumers, including working professionals, students, and families with young children.
- Products and Services:
- Corn Flakes are typically sold in a various sizes, from small individual packets to large family-sized packages. By offering other varieties of flavored flakes, you’ll be able to garner a wider audience.
- Later as a brand, you can market other breakfast options, such as oats, muesli, and many more.
- Proper Marketing and Sales Channels:
- As a brand, you may need to market your end-products using several marketing and advertising platforms, including Social media advertisements, in-store promotions, and print and TV ads.
- Best way – If you have cash ready, partner with grocery stores or supermarkets to put up products onto store shelves.
- Financial Planning and Projection
- One of the most important and typical task for any business. The startup cost for a corn flakes manufacturing can vary depending on the size and scale of the operation.
- While there is no limit for investment in a business, but one may need to investment at least ₹ 10 lakhs to bring their product in market.
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How Much Does A Corn Flakes Business Cost?
The initial cost or setup cost for a Corn Flakes may depend on several factors, including the scale of the operation, size, varieties of products, and many more. Nonetheless, To Start a Corn Flakes at a small scale will cost around ₹10 lakhs to ₹15 lakhs ($50,000 to $80,000) with a floor area of 700-1000 sq feet, while at large scale it may cost more than ₹50 lakhs ($200,000) with a storage area of over 2000-2500 sq feet.
Additionally, The above-mentioned initial investment for Corn flakes startup does cover the expenses or fee such as Equipment & machinery cost, raw material costs, Marketing Fees, and other necessary fees.
How much is the Corn Flakes Business profit margin?
The profitability of any business like Corn flakes depends on several factors, such as capital invested, coverage area, business’s geographical location, and many more.
Moreover, considering the rapid rise in several quick-food options, healthy and affordability, regular availability, and flexible setup cost may help new-age entrepreneurs to anticipate a relatively better profit margin(~ 40-45%) than established brand like Kellogg’s and more.
Additionally, with better market survey, proper marketing strategy, premium quality range one can significantly improve their margin on every sale. It will also help you in penetrating undiscovered market at your location.
On general, Manufacturing cost for a 1Kg of Corn flakes lands around ~ ₹35-40, which sells for over ~ ₹100, making a gross profit margin of 65-70%.
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What are the requirements to setup a Corn Flakes Business?
Before setting up a business one should complete its pre-requisites, and some of them are listed down for your reference;
- Interested business prospect should have at least initial capital of ₹ 10 lakhs to ₹15 lakhs.
- But before investing, one should be ready with proper business planning, including procurement of raw materials, market research, and equipment and machinery.
- One should have an ample storage space with over 2000-2500 sq feet to stock up your flakes.
- He/she should be involved and dedicate themselves to their business and follow the industry standards to maintain its legacy.
- If possible, do check out some regional or international corn flakes manufacturers and understand about its standards.
How to Start a Corn Flakes Business?
The above mentioned detailed article will definitely provide a great outline on starting a full-fledged business on Corn flakes. However, one can startup with these steps;
- Perform extensive market research
- Layout your business plan
- Raw material and equipment procurement
- Hire staff and train them accordingly
- Involve yourself at every steps at early stage
- Marketing and branding of products
- Take it the the outer world
Final Takeaway – Summary
Starting up a Corn Flakes business may prove to be a lucrative opportunity for any of us, if executed perfectly. The Corn Flakes market is indeed growing at a rapid pace and with the growing demand for convenient and healthy breakfast options, it may offer a great potential for new players to enter the market and compete with establish brands.
It can be started with an initial investment of ₹10 lakhs to ₹15 lakhs that may return an impressive net profit margin of 30-35% or more than 1 lakhs per month. However, it totally depends on your locality, market demand, and branding. To increase sale, one may consider choosing a online platform such as Amazon or Flipkart and earn money online.
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Is Corn Flakes Business Profitable?
Ans: Certainly yes. Considering the enormous rise in quick food options, busy schedule, healthy breakfast opportunity, relatively low startup cost, less manufacturing wastage may help new business owner to earn a healthy profit margin from this business.
What are the platforms available to sell corn flakes?
Ans: There are several channels available to sell corn flakes, one can either opt for Online or Offline mode. So, in offline mode, one can target their local market and distributors or shopping malls. In Online system, you can list your products at Amazon or Flipkart.