How to Start a Bakery Business In India from Home

How to Start a Bakery Business In India from Home

A freshly baked hot cake a rich chocolate cake or just a tea-time cupcake or muffins can be a reason for a happy face for anyone. If you want to start your own bakery business in India, then this article can be a learning article for you.

In the last few years, all can witness a rapid increase in the demand for baked goods like cake, pastries and much more are offering affordability and customer convenience. This growth and demand for bakery items are going to lead to bakers based out of home and chefs entering the bakery industry.

As per the report, the bakery market in India is going to grow at a CAGR of 8.5%. That’s the reason people are interested in this lucrative, delicious industry. In this knowledge-based article, let’s get you into a wholesome ideology of starting a baking industry in India.

Let’s start then.

Tips For A Well-Established Bakery

You need to execute a foolproof business plan so you can grow your business with high-profit margins.

Here we are with our special bakery industry tips that can help you in starting your bakery business, in 2021. 

With the below-mentioned factors, you can grow your business easily. Let’s start.

Creating A Full-Fledged Business Plan For bakery

A business is always standing upon a super smart plan. A business plan works as a pillar of the business. So you have to spend more time on bakery business planning in India. 

You have to clear your knowledge on how to handle the business, budget distribution, future goals of the bakery and many more. 

Have a Plan: Firstly start with creating legal ownership of your bakery, a wholesome plan on how to bake and what to bake.

Execution: Secondly, you have to execute your overview i.e. how to deliver your products.

Analysis: Thirdly you must undergo a bakery business analysis. This business analysis can play a significant role as it would help to make out the competition in the location, analyze your target audience, and assist in selecting the perfect location for your bakery business in India.

You have to make a plan on order taking from customers, menu, staff management, service, raw material procurement, etc. You also have to work on marketing and promoting your business. You can go online as well as offline promoting.

Through sponsorship, you can create a promotion for your bakery.

You must go through a detailed study on the strengths, drawbacks, opportunities, and threats of your business. Try to start a financial analysis so that you can manage your recurring cost, cost per item, profits, and operational costs.

Choosing an easy to catch location

The most important step to starting your very own bakery business is to choose a location with high footfall. You can check for highly busy streets, the corporate office sector areas, Beside shopping malls, etc.

The front shop area can be the best place to stand out with your bakery. Keep in mind that you must have your bakery in a place where transport is just a minute away, the place is very much eye-catching.

You can plan your interior according to your place size. But we would love to tell you that if you can have a two-story bakery place, then try an upper-level kitchen or your baking place, and the ground floor is for a waiting lounge, sitting area, and cash counter. Though you can handle it as per your choice and the available space you have. 

Always look for a place that has a proper drainage facility and water supply. Always get proper legal documents for the place you are arranging.

A No Objection Certificate should be provided to you and by the owner of the property. Also, a NOC from the neighborhood should be handed over to you.

Choosing an easy to catch location for starting a bakery business

Licenses that are mandatory to start your bakery business in India

As a new entrepreneur in the bakery industry, you must have an idea of licenses that are a must-have for a business.

There are five most important Licenses that are: FSSAI license, Local Municipal Corporation Health License, GST Registration, the Fire License, and Police Eating House license

  • Apply for FSSAI Licenses through the online website also, you can apply through some agency that can take an extra charge as their commission. You can go for a long five-year License so that you have no need to renew every single year. The cost will be nearly 15000 INR.
  • You must have a GST registration as you are going to open your restaurant as a business.
  • You have to get a Health license from the local municipality health inspector. Around 3000 INR will be the cost of this License.
  • You have to arrange a fire license that can be arranged for INR 1000-2000. You will get this License after installing the fire extinguisher cylinders.

There are also other Licenses like Business Registrations, Eating House licenses from the Licensing Police Commissioner of the particular state, Trade licenses, Shop and Establishment licenses, Trademark registration to protect your brand, Certificate of Environmental Clearance (CEC) from the Ministry of Environment.

Creating a business team to run the bakery

A bakery needs an expert who can help you in baking. You have to arrange for the Head chef, snack special chef, and any other special food chef if you want. Here are some of the best baking courses which you can recommend to your team.

Also if you want to serve customers in house eating, then you also need service boys, and helpers. You also need a cashier to handle the daily transaction.

Also Read: How to Start a Food Truck Business in India

You can start hiring 10 to 15 trustworthy people to run your business smoothly. You have to mention your team’s salary as per their work, and experience.

Creating a business team to run the bakery

Equipment to start the bakery business in India

You have to purchase whole new equipment to start your bakery business in India.

Pieces of equipment that will be needed to start a bakery business in India are

  • Mixers
  • Deep fridge
  • Oven
  • Working table
  • Cooling system
  • Storage utensils
  • Reusable utensils
  • Gas stove
  • Plates and spoons for serving
  • Aquaguard
  • Cylinder
  • Sheet pan racks
  • Table- chair
  • Doughnuts cake fryer
  • Packaging material
  • Display case
  • Bread slicer

Displaying the previous orders

You can always display your bakery business in a very creative way. Your display should be designed well and made in a way that anyone and everyone will be attracted to easily. You have a display area that has a proper storage option too.

Installation of Billing software

When you are getting into a bakery business, you have to maintain a billing process because more and more people will come and you have to track your transaction on a daily basis. Try to get well-built software that helps to track a proper transaction throughout the day.

Billing software in your bakery

Branding And Marketing of your very own bakery business

If you want to bloom your business with rapid growth, you have to focus on marketing and brand promotion. You can create a proper brand name with a proper logo, depicting the theme on it.

This will assist in creating your brand which will be with the unique identity of your bakery. 

Get some big display boards to attract the attention of the people. You can start marketing and promoting through social media sites like Instagram, Facebook, and WhatsApp. You can also opt for buying options on social media.

Go for brand promotion by selecting your staff uniform

Most bakeries ignore this thing. But this can play an important role in brand promotion. You can choose a specific staff uniform that consists of your brand logo and name with a tagline.

This is the way to help the consumers identify your brand easily.

Partnership with online food delivery services

Nowadays, everyone is fond of online food ordering systems. This can be a way to grow your business with the partnership of food delivery apps. We want to recommend you get registered with the online food delivery apps. 

Partnership with online food delivery services

You can also go for your own website that will consist of your bakery products, order portal, table booking in your bakery shop, membership in your bakery shop, offers in special occasion seasons, and many more.

Also Read: How to Start a Real Estate Business in India


Maximize Your Online Business Potential for just ₹79/month on Lio. Annual plans start at just ₹799.

How Lio can be used in business?

Lio is a mobile-based business purpose software that can help you in tracking the details of your business.

You can track the details like how many orders you have received on a daily basis, how many orders have been delivered to the customers.

You can maintain a review column to understand your food quality based on the customer’s ratings and reviews.

You can also check the monthly data of your business, you can check the profit details, loss details if any. You can add baking items that can be sold on special days.

So, if you are finding an application that will help in business tracking, you can trust Lio easily, Lio has a strong security policy. So, don’t worry about data breaching, or any personal data losses.

Lio is definitely for the win and using it for your business is only going to make your journey smooth and easy to track.

Step 1: Select the Language you want to work on. Lio on Android

Choose from 10 Different Language offered by Lio

Step 2: Create your account using your Phone Number or Email Id.

Create Account using your Phone Number or Email Id in Lio

Verify the OTP and you are good to go.

Step 3: Select a template in which you want to add your data.

Choose from 60+ Templates offered by Lio And Start Adding Your Data

Add your Data with our Free Cloud Storage.

Step 4: All Done? Share and Collaborate with your contacts.

Share you files with friends and colleagues

How Lio Automation Can Help You Business Process

Automation surely does make a difference in running a business whether small or large. It can be tricky and overwhelming at first to switch all the business processes to automation but not with Lio. 

Business automation is used by not just big businesses but all entrepreneurs and start-ups. It is something that has really helped companies run a smoother process and learn from their mistakes. Companies who have adopted automation have really made a mark and have from 10X faster with the best possible results. 

Lio Automation gives you many amazing features that make your work super simple and effective. There are very many features that will help you and your business in various aspects. From connecting and staying in touch with your customers, to working together as a team, and everything in between, Lio Automation will truly make your business run smoothly and make it reach new heights of success.

If you are using Lio Automation for your business processes consider all your data safe and secure all the time. Not only is the data saved in the cloud, but it also offers a data versioning feature in which you can actually see the many changes the document or file has gone through and who has made those changes. You can save the version of the file as required by you. 

Since customers are a big part of any business and staying in touch with them is a crucial job, Lio automation gives you the ability to automate Whatsapp communications. Automating WhatsApp communication is another popular trend that businesses can benefit from. With the help of this, you would be able to save a lot of time, boost your customer retentions and renewals, save a lot of money, have lower operating costs and much more. 

Not just this, Team management and work allocation are made super easy with Lio Automation. You can also work with teams in real-time and see all the changes happening.

You can share invoices and receipts with your customers while also sharing the payment links with them to make the whole transaction process smoother and absolutely hassle-free for everyone. 

You can create dashboards for each file which would give you the clear details of your company’s operations, marketing campaigns, sales and other analytics. This is one useful feature that would truly make a difference to your business and help your see all the processes clearly so that you can make well-informed decisions.

There are several other amazing Lio automation features that are made so that you and your business can benefit from them. Excited to know more about it? Start with your Lio automation process for your brand and start your journey to success. 


So we have discussed the minute details of how to start a bakery business in India. Now it’s your turn to step into the delicious industry and make your footfall strong among all.

With passion and dedication towards your own bakery business, I can ensure you that you will take off with your bakery business easily.

Frequently Asked Questions(FAQs)

Is the bakery business profitable in India?

An average of 60,000 to 1.2 Lakhs per month can be earned through business in India. You can earn more if you can expand your menu and other effective factors for the bakery.

How can I start my own bakery business from home in India?

Yes, you can start your very own home-based bakery by following a few steps:

– Decide the menu and special baked items that you will supply
– Follow the chefs on  social media to get a piece of knowledge on high skills
– Join professional baking classes
– Start selling at your neighborhood first
– Get your recipes properly

How do I invest in a bakery?

You can invest a minimum of 5 to 10 lakhs if you want to run your bakery in a professional manner. Try to get some business loans. This can help you in setting up the business.

How much do home bakers earn in India?

As a home-based baker, you can earn nearly 10000 to 25000 as per your orders. You need to improve your quality on a regular basis.

How do I make my cake business successful?

There are several steps that you can follow to be successful. Such as:

– Register with your local council. 
– Go on a food hygiene training course.
– Practice more and more
– Develop a niche. 
– Research the industry and your market.
– Get some good recipes behind you.
– Be willing to put in the hour.
– Build a website.

Download Lio App


  • Where can I find cheap or second-hand equipment for my bakery business?

    • Hi Akash,
      thankyou for the question.
      You can surf online and find various sites where they sell second-hand/cheap bakery equipment. Research well and choose wisely according to your requirements.

  • What kind of records do I need to keep for my bakery business?

    • Hello Abhay,
      thankyou for the question.
      There are many records which you need to keep safely with you. Some of them are Baking business contract , Vat and trademark registration records ,baking business order forms, item rental contract, partnership contract and more.

  • While reading this story, I came across the phrase “police eating house licence.” Could you briefly explain the significance of the same?

    • Hello Gopika,

      An essential license for operating a company where any type of food or drink is provided for legal consumption is an eating house license. The Delhi Police Act is in charge of policing it. Along with other permissions, the license is necessary when a food business is established in India.

      First and foremost, one must comprehend what an eating house is in order to comprehend the prerequisites for obtaining an eating establishment license. The definition of an eating house is “Any place which offers various things relating to food or drink to the general public for consumption. This includes all stores, eateries, dhabas, food trucks, cafes, and other businesses that serve food and beverages.

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