Do you ever thought of banana business ideas while eating banana, You probably don’t know that a simple yellow fruit can change your luck! In India most people just eat bananas, but some are building businesses worth crores from the same bananas.
All you need is, just to change the perspective instead of just eating it. India is the largest banana producing country in the world and it has many hidden business opportunities and even if you are from a village or are less educated, you do not need to panic.
In this blog, you will know how you can start a full fledged business with an initial investment of Rs 500 to Rs 5 lakh and earn Rs 25,000 to Rs 1 lakh every month. Moreover, you can sell your goods abroad also.
Why Banana Is So Special
In India, banana is grown in large quantities in states like Maharashtra, Andhra Pradesh, Tamil Nadu and Karnataka. In our country, banana is not just a fruit, it is a cultural and economic base.
Every year we grow about 36.7 million tonnes of bananas which is more than 1/4 of the total production of the world, which is enough bananas to feed the entire country for a year. But the sad thing is that we are able to export less than 2% of it. This means that India is missing out on a huge forex opportunity.
Business Opportunities from Banana
Here are some opportunities which can make you a millionaire with banana and unique business ideas can be derived from banana fruit, peel and even its stem.
Banana Chips
So the first business idea is banana chips. You must have eaten banana chips sold in outside shops or on trains. Just imagine how much demand there is for them. You can start the banana chips making business on a small scale with an investment of ₹5000 to ₹1.5 lakh or on a large scale with an investment of ₹5 lakh to ₹10 lakh.
So the process of making chips is also very easy.
- First of all, raw bananas are selected. Especially the Nedaran variety which is best for chips. Then they are cleaned and peeled.
- After that they are sliced into thin slices in a slicing machine. These slices are washed in water and dried.
- Now they are put in a vacuum fryer machine and fried. This gives the chips less oil and a better taste. After frying, salt and spices are added to them and then they are packed properly.
To start this business, you need good quality raw bananas which you can buy directly from the farmers or through FPO so that the supply remains consistent and you need a slicing machine and a vacuum fryer. FSSCI license, enterprise registration, GST registration and permission from local municipal corporation are required. Initially two-three people can be employed. You also need a reliable electricity connection and access to clean water.
Banana Powder
Nowadays people are moving towards healthy eating. The demand for gluten-free and nutritious food is increasing. Banana powder or raw banana powder falls in this category. It is widely used in children’s nutrition diets, bakery products and even fast food. The global banana floor market size is expected to grow at a CAGR of 4.2% by 2028 and its market value could reach US$ 700 million. You can start this business for Rs 2 lakh to Rs 5 lakh.
What is the process of making it?
- So raw bananas are taken.
- They are cleaned thoroughly and peeled.
- They are then cut into small pieces and given pre-treatment like parboiling to prevent them from changing colour.
- After this these pieces are dried. Solar dryer or mechanical dryer is used for drying.
- After drying, these dried pieces are ground in a grinder to make a fine powder.
- And then it is packed in an air tight packet.
Remember, raw banana contains 70 to 75% water. Therefore the output of powder making is low. But the value is very high.
To start this business
- You need raw bananas, dryer and pulver i.e. grinder. FSSCI license, enterprise registration, GST registration, permission from local municipality and NOC from Pollution Control Board will be required. Initially two to four people can work.
- Arrangements for electricity and clean water will also be required. While making it, special attention should be paid to cleanliness and moisture control so that the product does not get spoiled.
Banana Fiber Products
Do you know that strong and beautiful fibres are extracted from banana stem. These fibres can be used to make clothes, bags, mats and even paper. This is an eco-friendly and sustainable business. Where you turn agricultural waste into a source of earning money. You can start this business with an investment of ₹1.5 lakh to ₹4 lakh.
What is the process?
- So the stem that remains after cutting the banana is called pseudostem. In this way, fibers are extracted with the help of a machine.
- These fibres are then cleaned and put through a degumming process which makes them soft and flexible.
- After this, these fibres are converted into rope or thread and then clothes are made from them or different handicrafts are made like bags etc.
To start this business
- You need banana stems i.e. raw material, fiber extraction machine and degumming unit. It is necessary to obtain enterprise registration, GST registration and local permissions. This will require skilled artisans and some unskilled workers.
Additional Unique Business Ideas
There are some more unique and high value business ideas that will give you a distinct identity in the market.
Wine or Vinegar.
Wine or vinegar can also be made from bananas, especially overripe ones. There are some tribal startups in Kerala and Maharashtra that are working on this and it is a premium segment. For this you need overripe bananas, fermentation tanks and boiling unit. Along with this, it is necessary to obtain FSSAI license, State Excise License, Enterprise, GST Registration, NOC from Pollution Control Board.
Banana based baby food or snacks.
Banana Puree, Banana Puffed Snacks for Toddlers. This is a very fast growing market in urban India. Brands like Tata Soulful and Slur Farm are bringing the best healthy snacks. You can also get into it. For this you will need ripe or raw bananas, puree, puff snack making machine and special packaging. FSSAI license and quality control certificates are also required.
Banana stem.
Which is often thrown away is rich in nutrients. Juice, pickle or Ayurvedic powder is also being made from it. Its vegetable and juice are very famous in states like Kerala. For this you would need banana stem, juice extraction or cutting machine and preserving equipment. FSSAI license, enterprise registration, GST number will be required.
Banana leaf products.
Banana leaves are also being used in disposable plates and packaging. Which is a good and biodegradable alternative to plastic. Manufacturing in this is also simple. For this you need banana leaves, cutting and processing machine, enterprise registration, GST registration and environment friendly product certification.
Bioplastic.
Philippines and African-based startups are making plastic alternative films from banana peels. This could be the next startup boom for India – materials like plastic from waste.
Stem paper.
This is already happening in Tamil Nadu and Sri Lanka. Banana stems are used to make eco-friendly paper which is very useful for packaging and stationery.
So these are some unique business ideas which are not running on a very big level right now but their market can boom in the future and the scope is good. You can explore these as well.
Government Schemes and Subsidies
The Indian Government fully supports those who start such businesses.
- One of the famous schemes, is PMKSY Pradhan Mantri Kisan Sampada Yojana. In this, capital subsidy and infrastructural support is provided for setting up food processing units. You have to prepare your detailed project report and apply on the online portal of Ministry of Food Processing Industries.
- Next is PMFME Scheme Pradhan Mantri Formalisation of Micro Food Processing Enterprises. If you are setting up a small scale unit then this scheme is best for you. In this, capital subsidy of up to 35% is available. Subsidy up to Rs 10 lakh. Apart from this, loan is also easily available from the bank and training is also given. You will have to prepare a detailed project report and get the loan sanctioned from the bank and then apply online on the PMFME portal.
- Then the next scheme is Mission for Integrated Development of Horticulture MIDH. This is for the development of horticulture i.e. fruits and vegetables. In which subsidy is also available for post harvest management and processing units. You can apply for this through the National Horticulture Board. By taking advantage of these schemes, you can significantly reduce your investment and also avail benefits in training and loans. Even tax benefits are also available.
And these schemes are for this business, but whatever business you do, there are many good government schemes in which you get tax benefits, help in loans, training and subsidies up to 35%.
Marketing Strategies
The most important question that comes to people’s mind is that we can make the product but how to sell it?
So just making the product is not enough. It is also very important to know how to sell it. For this, doing market research is the first step. For this,
- You will have to talk to people in your area. We have to know their preferences and see which banana product will be more popular in that area. Do people in your area prefer chips or is there more demand for powder? This will help you in making the right product.
- Then comes the second step, branding. Give your product a good and memorable name. A name that people can remember quickly. Make its packaging very attractive. When people see the packet, they feel that this product is clean and good. For example, Bikaji Snacks has created a distinct identity with its high quality vacuum fried chips and strong branding.
- Then the next step is online presence. Everything is online these days. Create your website and list your product on platforms like Amazon, Flipkart, Big Basket and start selling there. Also share videos and photos of your products on social media like Instagram and Facebook.
- Then the next step is the local market. Initially, start supplying your goods to shops, supermarkets and organic stores in your city. Also go to exhibitions and fairs and set up stalls.
- After that you can also explore B2B options. For example, you can sell banana flour or powder directly to bakery companies or baby food manufacturers. Banana fibre can be supplied directly to textile industries or handicraft retailers. For this you can take help of online platforms like Indian mart.
Now one thing to keep in mind is that quality and hygiene are most important in food products. Follow FSSAI rules very strictly. The purer and tastier your product is, the more its demand will increase. Special care must be taken to ensure that the quality of each batch is the same.
So this will also ensure that your sales increase and your demand increases in the market and it will provide you with organic world of mouth marketing for free.
Export Opportunities
India is the biggest producer of banana but the export is very low and this is the real opportunity. So first you should know what needs to be done to export, what will be the process.
- So first of all you will have to get registered with Agricultural and Processed Food Products Export Development Authority i.e. APEED. Then international standards such as HACCP and ISO 22000 are very important. You will have to get quality certification from them. Especially for processed food products. This makes your product trustworthy to international buyers. Organic certifications and fair trade certifications will also give you a competitive edge.
- Then, special packaging is required for export which can withstand long distances and different weather conditions. Cold chain infrastructure, i.e., cold storage and transport facilities, are crucial, especially for fresh and processed food. The government is also supporting this. But you also need to find the right logistics partner.
- Talking about documentation, for export, you will have to keep ready documents like invoice, packing list, certificate of origin, phytosanitary certificate for fresh banana, bill of lading if you are sending by shipping and specific import permits of the destination country.
- Then comes the next and big step of finding a buyer. You can find foreign buyers through international trade fairs, online B2B portals such as Alibaba and Indamar, and export promotion councils.
Conclusion
Hope you got enough banana business ideas from this blog, see there are very few people who are doing well in this particular field so it can lesser competitive compare to other similar businesses. But remember it requires effort, investment with proper strategy and time.
So tell us in the comment below that which banana product do you think has more potential? Or which business would you like to do?