Iodised salt is an essential ingredient in daily diets across the world. The addition of iodine to salt plays a vital role in preventing iodine deficiency disorders (IDD), a significant public health issue in many developing countries. Iodised salt manufacturing is not only a socially impactful venture but also a profitable one, especially in regions with growing awareness of nutritional needs. With low initial investment and strong domestic demand, starting an iodised salt manufacturing unit can be a sustainable business opportunity for aspiring entrepreneurs.

Market Overview and Scope for Iodised Salt Manufacturing

India is the third-largest salt-producing country in the world and one of the largest consumers of iodised salt. The government has made iodisation of salt mandatory for human consumption, increasing the demand for iodised salt in the market. This policy, along with growing awareness about health and nutrition, makes iodised salt manufacturing a strategic and future-ready business model.

The iodised salt market in India is growing at a steady pace due to rising health consciousness and the push by public health programs. According to industry reports, India consumes approximately 10 million tonnes of edible salt annually, out of which over 90% is iodised. This provides a lucrative entry point for new players who wish to cater to both domestic and export markets.

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Steps to Start an Iodised Salt Manufacturing Unit

Starting an iodised salt manufacturing unit involves a series of steps that require careful planning, regulatory compliance, and capital investment. Here is a breakdown of the essential steps:

1. Market Research and Feasibility Study

Begin with detailed market research to understand the demand-supply dynamics, competition, customer preferences, pricing strategies, and potential buyers (retailers, wholesalers, exporters). A feasibility study will help determine the financial viability and estimate the capital investment needed for setting up the plant.

2. Business Registration and Licenses

Register your business as a legal entity (such as an LLP, Pvt. Ltd., or proprietorship). Obtain necessary licenses such as:

• FSSAI (Food Safety and Standards Authority of India)

• Trade license from local municipal authority

• GST registration

• Factory license under the Factories Act

• Pollution control clearance from SPCB (State Pollution Control Board)

3. Location and Infrastructure

Choose a location with easy access to raw materials (crude salt), transportation, and utilities like water and electricity. The facility should have areas designated for salt washing, drying, iodisation, packaging, and storage.

4. Machinery and Equipment

For small to medium-scale iodised salt manufacturing units, semi-automatic or automatic plants are suitable. Basic machinery includes:

• Salt crushers and grinders

• Washing unit

• Dryers

• Iodisation unit (spraying system)

• Conveyors

• Sieving machines

• Packaging machine

• Quality control lab instruments

5. Raw Materials

The major raw materials required for iodised salt manufacturing are:

• Raw salt (sea salt or rock salt)

• Potassium iodate (KIO?) – used as the iodine source

• Packaging materials like LDPE pouches or HDPE bags

6. Manufacturing Process

The production process of iodised salt manufacturing involves several stages:

• Crushing and grinding: The raw salt is first crushed and ground to the desired size.

• Washing and drying: The ground salt is washed to remove impurities and then dried.

• Iodisation: Potassium iodate is sprayed onto the dried salt using a spraying machine and mixed thoroughly for uniform iodine distribution.

• Sieving and grading: The iodised salt is sieved to ensure uniform particle size.

• Packaging: The final product is packed in airtight bags to retain the iodine content and prevent moisture absorption.

7. Quality Control and Testing

Maintaining the iodine content within prescribed levels is essential. Regular lab tests must be conducted to ensure compliance with FSSAI standards. The iodine content should be between 15 to 30 ppm (parts per million) at the consumer level.

8. Branding and Packaging

In a competitive market, branding plays a significant role. Invest in attractive packaging, a catchy brand name, and marketing strategies to differentiate your product. Printed pouches with nutritional information, FSSAI license number, manufacturing and expiry dates are mandatory.

9. Marketing and Distribution

Develop strong distribution channels through wholesalers, retailers, supermarkets, kirana stores, and online platforms. Partner with institutional buyers like schools, hospitals, government food supply chains, and NGOs. Use social media, local advertising, and promotions to enhance brand visibility.

10. Financials and Profitability

Setting up a small-scale iodised salt manufacturing unit may require an investment of ?10 to ?25 lakhs, depending on production capacity and automation level. Operational costs include raw materials, salaries, utility bills, packaging, transportation, and maintenance.

Here’s a rough estimate for a unit producing 10 tons/day:

• Capital Investment: ?20 lakhs (includes land, building, and machinery)

• Raw Material Cost: ?1.5 per kg of raw salt

• Selling Price: ?4 to ?7 per kg

• Profit Margin: ?2 to ?3 per kg
  With full capacity utilization, the unit can generate monthly revenue of ?12 to ?15 lakhs, making the payback period as short as 1–2 years.

SWOT Analysis of Iodised Salt Manufacturing

Strengths

• Essential product with universal demand

• Government support and health programs

• Low production cost with high scalability

Weaknesses

• Sensitive to moisture and storage conditions

• Price competition from established brands

• Quality maintenance requires regular checks

Opportunities

• Export potential to countries with iodine deficiency

• Rising health awareness among consumers

• Product diversification (e.g., low-sodium salt, herbal salt)

Threats

• Raw material price volatility

• Regulatory changes in food safety laws

• Counterfeit and substandard products damaging brand trust

Sustainability and Environmental Considerations

Eco-conscious operations are gaining importance in all manufacturing sectors, including iodised salt manufacturing. Consider implementing sustainable practices such as:

• Recycling water used in the washing process

• Using solar dryers to reduce energy consumption

• Packaging with recyclable materials

• Proper waste management to minimize environmental impact

Additionally, adopting Good Manufacturing Practices (GMP) and maintaining hygienic production conditions can help gain customer trust and compliance with regulatory bodies.

Manpower Requirement

The manpower requirement depends on the scale of the unit. For a medium-sized iodised salt manufacturing unit, a typical staff setup might include:

• 1 Plant manager

• 2-3 Machine operators

• 1-2 Packaging staff

• 1 Quality control technician

• 2-3 laborers for handling raw materials and logistics
  Training staff to understand food safety, hygiene, and machinery operation is crucial for smooth and efficient functioning.

Risk Management and Challenges

Some of the common challenges faced in iodised salt manufacturing include:

• Maintaining consistent iodine levels in salt

• Preventing moisture absorption during packaging and storage

• Navigating strict food safety norms and audits
  To mitigate risks, invest in robust quality control systems, moisture-proof packaging, and reliable supply chain partners.

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Conclusion

Iodised salt manufacturing is a mission-driven business that meets public health needs while offering substantial financial returns. With growing market demand, government support, and low entry barriers, this sector presents a strong opportunity for entrepreneurs. Success in iodised salt manufacturing hinges on product quality, efficient processes, and strategic marketing. By adhering to best practices and embracing innovation, you can carve out a strong brand presence in this essential commodity sector.

Whether you plan to operate on a small-scale level or expand into a large, automated facility, the iodised salt manufacturing industry offers sustainable growth backed by continuous consumer demand and public health initiatives.

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