Start a corn flakes making business | Business Plan and Project report

Corn flakes are the daily breakfast of many people in the world. They prefer to eat corn flakes in the morning because it is easily available, rich in nutrients and simple to make. Due to its huge demand, many people are considering starting their own corn flakes manufacturing unit and planning to earn a lot of money.

Corn flakes cup

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So, in this article, we will discuss the corn flakes business plan in detail, which includes everything from raw materials, machinery, workers, land to fund required and its allocation.

Business Plan to start corn flakes making business

You need various resources like raw materials, machinery, workers, land, and building to start corn flakes manufacturing business. So let us now discuss all of them in detail:

#1 Machinery required to produce corn flakes

Machinery is an important resource that is needed to manufacture corn flakes. The machine performs a germ separator, boiler, oven, conveyor, shifter and many more. I am not discussing all functions because there is a lot of chance you may not understand them properly and might change your decision to start a corn flakes manufacturing business after reading a long list. You do not need to worry; in today’s time, you can easily buy corn flakes manufacturing machine set that will perform all the functions and costs you about Rs 50,00,000 in India or $85,000 in the United States. That machine can produce about 300 kgs of corn flakes per hour, which is too much, and if you are planning to do the business on a small scale, you can buy a small machine set that will cost you about much less than it.

#2 Raw materials needed to produce corn flakes

Corn flakes have maize as the main ingredient and salt, sugar, water and added flavor as subsidiary ingredients. Corn flakes are made up of maize, so you can easily produce it in the flavor of your choice.

Despite the production, you need packaging materials to transport and store corn flakes.

#3 Land and Building

If you are doing the corn flakes manufacturing business on a small scale, you need a room approximately of dimension (20×20) feet square to install machines and store raw materials.

But on a large scale, if you are planning to build a proper corn flakes manufacturing plant, you need a proper space and building to set up your plant. Land and building size generally varies from 7,000 square feet – 1,00,000 square feet, depending on the size of the plant.

#4.Workers required for corn flakes making business

Depending on the type of work, you need both skilled and unskilled workers. Unskilled workers for doing non-technical work like grain cleaning, transportation etc and skilled workers to operate machines.

You can do all the work yourself on a small scale, but in corn flakes manufacturing plants, you need to hire workers.

#5 Other

It includes all other things you need to run the business like electricity, water, transportation etc.

Process of making corn flakes

Process of making corn flakes can be divided into two parts: Manual and machine. So let us discuss them.

#1 Manual work

Manual work includes all the steps done by a human itself. It involves the process of separating and cleaning the grain.

First, you have to separate maize grains from corn. On a small scale, you can do it yourself and employ unskilled workers for it on a large scale. After separating grains, clean them properly to ensure that no other substance like small rocks, dust etc., is mixed with grains.

#2 Machine work

This part includes all tasks done by machine only. Rest all the steps will be performed by machine. You just need to add all the flavors, salt, sugar, etc., as per the recipe. The machine will mill the grains to separate germ and do all the tasks; at last, you will get your corn flakes in the flakes section.

After that, dry them properly in sunlight to remove all the moisture, and now your flakes are ready to pack. 

Don’t worry, the company from which you buy the machine will guide you properly on using it. So you do not need to take any tension related to the manufacturing process of corn flakes.

How to get raw material at a low price?

Maize is the main raw material used for making corn flakes. On a small scale, you should buy it directly from a farmer to get it at the minimum price. But on a large scale, you prefer to lease land and produce maize on it by yourself to take advantage of large-scale production.

Money required to start a corn flakes business

On a small scale, you need a machine that can produce about 30 kg of corn flakes per hour. It will cost you about $5,000 in the U.S or Rs 2,00,000 in India. After that, you have to buy raw materials and may have to rent a place. So your total investment may vary from $10,000-$18,000 per year in the United States or Rs 4,00,000-Rs7,00,000 in India.

On a large scale, you need to take land on lease, good machinery that can produce about 300 kg of corn flakes per hour, need to employ some workers and some other expenses. Also, if you create your personal brand, you have to make expenses on the advertisement. So in this case your total investment maybe $7,00,000-$1 Million per year in the United States or Rs 4,00,00,000-Rs 5,00,000,00 in India.

How to allocate funds for the Corn Flakes business?

On a small scale, you can use your personal savings or help from various government schemes to start the business. But on a large scale, your personal savings are not going to be sufficient, so you have to take help from an investor or need to take a bank loan to arrange funds.

Profitability of corn flakes business

Cornflakes come under the category of breakfast foods, and many people consume them daily. So you can easily make a profit of $4-$6 on one kg pack of corn flakes in the U.S.A or Rs 60-70 on one kg pack of corn flakes in India.

Summary

A person needs machinery, land, raw material and workers to start the corn flakes-making business. You need workers to do manual work like separating and cleaning and machines for the rest of the work relating to producing corn flakes. You can use your personal savings or take money from investors or take help from government schemes or take a bank loan to arrange funds for the business. Corn flakes-making business is profitable, and you can make a lot of money from it.

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Frequently Asked Questions

How much area is required to start small-scale corn flakes making business?

Minimum a room of 400 square feet is required to start a corn flakes manufacturing plant.

How much money is required to start a small-scale corn flakes manufacturing business?

On a small scale, you need a machine that can produce about 30 kg of corn flakes per hour. It will cost you about $5,000 in the U.S. or Rs 2,00,000 in India. After that, you have to buy raw materials and may have to rent a place. So your total investment may vary from $10,000-$18,000 per year in the United States or Rs 4,00,000-Rs7,00,000 in India.

How much money is required to start large-scale corn flakes manufacturing plant or business?

On a large scale, you need to take land on lease, good machinery that can produce about 300 kg of corn flakes per hour, need to employ some workers and some other expenses. Also, if you create your personal brand, you have to make expenses on the advertisement. So in this case your total investment maybe $7,00,000-$1 Million per year in the United States or Rs 4,00,00,000-Rs 5,00,000,00 in India.

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