Why Tomato Sauce Manufacturing Can Be A Profitable Business

Manufacturing tomato sauce is a profitable business venture if started with proper planning and presentation. India, being one of the largest producers of tomatoes provides a great market for the tomato sauce manufacturing as homemade tomato sauces are gaining great demand from the market. Their unmatched taste and quality are helping them stand apart.

With an annual growth of over 20% per annum, the demand for tomato sauce is getting huge in India which is expected to rise more in times to come. It can be used along with snacks to coloring and seasoning in restaurants.  The eating culture of Indian people has certainly given rise to the use of tomato sauce extensively.

The demand for Quantity and Quality

Tomato sauces being made in-house, without the use of preservatives are gaining huge popularity because of their quality and greater taste. It provides an opportunity for the industry people to sell their products at a higher rate, making profits. But due to less use of chemicals and preservatives, the homemade sauces don’t come with longer expiry dates.

It is obvious that quantity and quality can’t stand together. The quantity products come with a lesser quality in comparison to the homemade products. These products also carry a great demand in the market as they are used by most people. It is cheap in nature thereby sufficing the need.

Business Niche

Choosing quality or quantity in the tomato sauce manufacturing business is the initial key decision. It gives an idea about the target customers to the manufacturers. The cost of manufacturing quality products will be a bit high as compared to the number of products. Thus, quality is sacrificed over quantity. The items are sold at a much cheaper price, but due to the higher volume, it balances the equilibrium.

Machines Required

Tomato sauce manufacturing procedure requires different machines which play an integral role in the manufacturing process. The list of machines is:

• A pulping machine costing around Rs 30,000.
• Exhaust and Process tank with motor costing around Rs 90,000.
• Semi-automatic bottle washing machine around Rs 20,000
• Spice grinding machine which comes around Rs 30,000.
• Crown corking machine about Rs 8,000.
• Hand operated label gumming machine of approximately Rs 10,000.
• Assorted aluminum worth of Rs 6,000
• Testing equipment costing around Rs 12,000.

Business Plan

A business plan is the key to success for any business. The required capital for starting the business is a bit high as machineries are themselves expensive. A well-crafted business plan is required to speak of the operational process of the business in a profitable manner. Legal guidelines will be strict and strong which has to be followed according to the law.

Revenue in the Tomato Ketchup segment amounts to US$685m in 2018. The market is expected to grow annually at a CAGR 11.6%.