When we look at the Nepal chocolate market, almost 98% of chocolate is imported which worth more than 2.1 billion Rupees with a 6% growing rate each annum. And only 2% of the total demand is fulfilled by Nepali production. This creates a huge opportunity for those who are looking for start-up plans- it’s chocolate business.
Here is the complete description for those who are thinking of starting a chocolate business.
You have to follow the following procedures for registration of the chocolate business in Nepal. According to Section 3 of the Private Firm Registration Act, 2014, first, you need to register at the department of industry.
Any people who intend to register for a private firm have to submit the application in a prescribed legal format with a prescribed legal fee. The application should contain the following information
- The name of the Private Firm
- The address of the Firm
- The objectives, functions, and the particulars of goods or commodities to be transacted by the private firm.
- The name and address of the owner, and the name of his/her father, mother, and grandfather, grandmother.
- Certified citizenship Certificate
Based on your capital registration fee varies.
|S.N.||Capital (in NPR)||Fee (NPR)|
|1.||1,00,000 or less||600|
|2.||More than 1,00,000 and less than 3,00,000||2,000|
|3.||More than 3,00,000 and less than 5,00,000||4,000|
|4.||More than 5,00,000 and less than 10,00,000||7,500|
|5.||More than 10,00,000 and less than 50,00,000||10,000|
|6.||More than 50,00,000||15,000|
Making chocolate is not so hard as compared to other industrial goods- a few months of courses will be sufficient. You have to be good at making different flavored soft centers, producing molded chocolates, and creative decorating and packaging skills.
Resources required for the chocolate business include investment, manpower, machinery, raw material.
It is the most important aspect. But one advantage of the chocolate business is you can start with domestic production with a small investment. One of the most popular domestic brands of chocolate ‘Swiffles’ has started with only Rs.40, 000. Don’t worry about investment. you can start with a small amount.
It is the most determining factor for the success and failure of any business and for the quality. As for chocolate, this is the main factor due to which domestic production is not sustaining.
Ingredients required for chocolate production are
Chocolate Business in Nepal
It is the basic ingredient without it you can’t make chocolate. A variety of coca used will impact the flavor and processing process also. The most popular variety used for chocolate production is Forastero, Criollo, and Trinitario. Cocoa trees are grown in mainly Central and South America, the west coast of Africa, and South Asia. About 40% of world supply comes from the Ivory Coast. So, you have to import raw material.
It is the key ingredient without which chocolate tastes bitter. A roasted cocoa bean doesn’t have a naturally sweet taste. The amount of sugar varies in the type of chocolate you are making. Different types of sugar may require – Refined Sugar, Unrefined Sugar, Brown Sugar, Cane Sugar, Raw Sugar, Coconut Sugar, etc.
Mainly dark and milk bars contain cocoa butter which adds a delicious flavor and creamy texture. It is also extracted from cocoa beans but has lighter cocoa as it is natural fat.
Mainly cow’s milk is used for chocolate production and the main component in milk and white chocolate.
Some people are lactose intolerance or allergies and also a vegan who avoids any kind of animal product. It is important to consider these targets while producing chocolate. That’s why milk alternatives are required. It may be coconut milk, Almond milk, Rice milk, Soya milk, Oat milk, Cashew milk, etc.
An emulsifier can be used to withstand heat and avoid blooming. Most common emulsifiers are-Soy Lecithin, Organic Soy Lecithin, Sunflower Lecithin, Rapeseed Lecithin, Vegetable Lecithin, etc.
Packaging also plays a key role in the chocolate business. Make your packaging eye-catchy and also give some message stating why to consume your product. As there are varieties of clients so produce chocolate in different sizes and packets. Also, you can do a different occasion and festival based packaging.
Marketing and selling strategy
In the chocolate business taste is everything. So, you will need a sample of your product for interested clients or buyers. Here are the things you can do to promote your business
Stand out from the crowd
Be unique and creative as you are in the market where there are already lots of competitors. Give the reason, why customers buy your chocolate. You can go for an emotional reason by making chocolate for a special occasion such as for mother’s day.
Free Sample testing for attracting customers
There are already many competitors in the market. If you think your product is different from others, there will be costumers to purchase your product. So, distribute your sample freely.
The target for big holidays
Rather than opening in a normal day target for opening your shop in holidays such as valentine days, Christmas day.
Establish your web presence
In today’s market, digital marketing is the best marketing strategy. You can give detailed information about your product online.