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If you're looking for a profitable business that operates year-round and guarantees high earnings, then we have a solid business idea for you.
Most people dream of starting a business that runs in every season and has consistent demand. One such high-demand business is tomato sauce and ketchup manufacturing. Tomatoes are an essential part of almost every household and restaurant. From chutneys, sauces, and ketchups to pizzas, burgers, and fast food, tomato-based products are used everywhere.
Let's dive into how you can start this lucrative business and make huge profits.
Why Start a Tomato Sauce Business?
Evergreen Demand – Tomato sauce is used in homes, restaurants, hotels, and fast-food chains all year round.
Low Initial Investment – You can start the business with government support through the Mudra Loan Scheme.
High Profit Margins – The demand for processed tomato products is increasing due to the growth of the fast-food industry.
Easy Manufacturing Process – With the right equipment and raw materials, you can quickly set up a production unit.
Investment Required to Start a Tomato Sauce Business
The Indian government supports small businesses like tomato sauce manufacturing under the Pradhan Mantri Mudra Yojana (PMMY).
Total Investment Required: ₹7.82 lakh
Your Own Investment: ₹1.95 lakh
Loan Amount from Mudra Scheme: ₹5.87 lakh
Breakdown of Investment:
| Expense | Cost (₹ in Lakhs) | |
|---|---|---|
| Machinery & Equipment | ₹2.00 lakh | |
| Raw Materials, Ingredients, Labor, Rent, etc. | ₹5.82 lakh | |
| Term Loan | ₹1.50 lakh | |
| Working Capital Loan | ₹4.36 lakh |
This loan is easily available through banks under the Mudra Loan Scheme.
Growing Demand for Tomato Sauce in India
Tomatoes are a staple ingredient in Indian kitchens, and their demand remains high throughout the year.
Used in multiple food items: Sauces, chutneys, curries, pizzas, burgers, fast food, and packaged meals.
Demand across all regions: From villages to metro cities, tomato-based products are widely used.
Seasonal Price Variation: While tomato prices drop during peak season, they rise significantly during the off-season. This creates a profitable opportunity for tomato processing businesses.
As the fast-food industry grows, the demand for tomato ketchup and sauce will continue to rise!
How Much Can You Earn from Tomato Sauce Business?
Earnings Projection (As per Mudra Loan Report):
Annual Revenue: ₹28.80 lakh
Annual Expenses: ₹24.22 lakh
Annual Net Profit: ₹4.58 lakh
Monthly Profit: ₹40,000
This means you can earn up to ₹40,000 per month after deducting expenses.
As the business grows, profits can increase significantly.
How is Tomato Sauce Made?
Setting up a tomato sauce manufacturing unit does not require a large space. The process is simple and requires basic machinery and ingredients.
Step-by-Step Tomato Sauce Making Process:
Selection & Cleaning: Fresh, ripe tomatoes are washed and sorted.
Chopping & Boiling: Tomatoes are cut into small pieces and boiled in a steam kettle.
Pulp Extraction: The boiled tomatoes are mashed, and seeds & fibers are separated.
Adding Ingredients: Spices like ginger, garlic, cloves, black pepper, salt, sugar, and vinegar are mixed.
Preservation: Preservatives are added to increase shelf life.
Packaging & Distribution: The sauce is bottled, sealed, labeled, and sent for sale.
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