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Is Bakery a Good & Profitable Business? Know Investment & Profit Details

If you want to earn some extra income then you must think of starting a small business. At present, there are many business ideas that can be started with very low investment. Today we will tell you about a growing business that gives good profit and needs less investment.

Abha Toppo
bakery items
Bakery Shop (Pic Credit - Thinkstock)

If you want to earn some extra income besides your regular occupation then you must think of starting a small business. At present, there are many businesses that can be started with low investments.  Today we will tell you about a growing business that gives good profit and does not very huge investment.

We are talking about Bakery Business. Yes, biscuits or cookies are something that is always in demand. Even during the Covid lockdown, when almost all the businesses were closed, the sale of bakery items especially biscuits was very high. Hence you can earn huge profits by setting up a bakery.

The best thing about this business is that people from both villages and cities can start and earn profit from it.

Get Government Support to start bakery business

If you want to start a bakery business, then the Central government will help you. You can take the help of Pradhan Mantri Mudra Yojana to start a bakery business. All you need to do is visit your nearest bank and tell them about your business plan. Accordingly, they will tell you how much loan they can provide you under Mudra yojana.

You can easily get Rs. 50000 from the State Bank of India under SBI e-Mudra Yojana

Cost and Profit Details

Investment required

The investment in the bakery business will depend on various equipment, raw materials, labour and location. The cost or investment will also depend on the scale of business you are planning.




Small Scale 

Rs.80000 to 3 lakhs

Medium or Large Scale 

Rs. 5 to Rs. 15 lakhs

How much money can a bakery business make?

Considering all factors, the average profit that you can earn from a bakery business on a small-scale will be around Rs. 60,000 to 1.2 Lakhs per month. It must be noted that the profit earned will depend on the number of bakery items that you prepare. For instance, if you are dealing with multiple products, then you can earn more than Rs. 2 lakhs per month. 

How much space is required?

The space required for this business is about 500 square feet. If there is no space, you can take the space on rent and show it in the project file.

What Licenses are Required for Bakery Business

You may need five licenses - FSSAI license, GST Registration, Local Municipal Corporation Health License, Police Eating House license & Fire License.

Basic Equipment

To start this business you will need - Planetary Mixers, Oven, Deep Fridge, Cooling Fridge, Working table, Gas stove, Cylinders, storage utensils etc.

How profitable is a bakery business?

No doubt, bakery or baking is a lucrative business. Bakery products like bread, biscuits, and cakes are always in demand hence a person who starts this business will never be at loss. Moreover you profit will be more if you provide (bake) more products in your bakery. 

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