§1What this business is

Sugar is dissolved into syrup in a steam-jacketed tank, filtered, then blended with RO water, fruit, flavour essence, food colour, citric acid and preservative. The finished sharbat is filled into PP bottles, capped, labelled and packed in cartons. Households buy it for guests and festivals; hotels, restaurants, clubs, airlines and railways also serve it. The SIDBI profile plans 450–500 kilolitres a year.

Capacity: 450–500 kilolitres of syrup a year; year 1 at 60%.

§2Is it right for you?

Who it is for

Someone with FMCG distribution experience and access to large working capital.

Who it is not for

Someone without a distribution network — the product is easy to make but hard to place on shelves.

Advantages

  • Cheap machinery — ₹5.10 L for the whole line
  • Long Indian summers keep demand high
  • Simple mixing and bottling process
  • Sells to homes and to hotels, railways and airlines

Drawbacks

  • Very large working capital — ₹93.75 L of ₹110.31 L
  • Sales are seasonal, peaking in summer and festivals
  • Strong old brands dominate the shelf
  • Health worries about high sugar may slow demand

Skills you need

  • Recipe and flavour consistency
  • Food safety and preservative limits
  • Distributor and retailer network
  • Stock planning for the summer peak

Why difficulty 3/5: Easy to make, but needs heavy working capital and a strong distribution network.

§3Market

Who buys

  • Households
  • Hotels, restaurants and clubs
  • Airlines and railways

How it sells

  • Distributors and kirana shops
  • Supermarkets
  • Institutional supply

Good to know

  • The profile notes growing exports of processed foods including squashes and syrups.
  • Demand peaks in summer and during festivals.

§4Raw material & machinery

ItemQtyCost
Sugar syrup preparation tank1₹0.53 lakh
Filter press for sugar filtration1₹0.68 lakh
Blending tank1₹0.47 lakh
Sugar syrup storage tank1₹0.35 lakh
RO water plant1₹0.75 lakh
Rinsing, filling, sealing and capping machine1₹0.63 lakh
Boiler for the syrup tank1₹0.35 lakh
Wrapping and labelling machine1₹0.32 lakh
Material handling equipment and toolslump sum₹1.02 lakh

From: SIDBI Stand-Up Mitra project profile — Sherbets (2018) — private guide — confirm locally

  • Sugarthe main ingredient
  • Assorted fruitsfor flavour and nutrition
  • Citric acid, food colour, essence and preservativeswithin FSSAI limits
  • PP bottles, caps and cardboard boxespacking

From: SIDBI Stand-Up Mitra project profile — Sherbets (2018) — private guide — confirm locally

§5Licences & registration

  1. FSSAI manufacturing licence
  2. Udyam registration
  3. GST registration
  4. State Pollution Control Board consent
  5. Legal Metrology registration for packaged goods
  6. Factory licence if your worker count crosses the Factories Act limit

We can do this registration for you

§6Schemes & subsidies

PMFME gives a 35% credit-linked subsidy up to ₹10 L for a micro food unit; Stand-Up India (₹10 L–₹1 crore) for SC/ST and women founders; CGTMSE for a loan without collateral. The cost is above PMEGP's ₹50 L ceiling.

§7Money

How the investment is worked out: Land ₹5.60 L + building ₹4.50 L + plant and machinery ₹5.10 L + furniture ₹0.85 L + preliminary and pre-operative ₹0.51 L + margin for working capital ₹93.75 L = ₹110.31 L.

Working capital: Working capital ₹93.75 L (stocks ₹46.88 L, receivables ₹23.44 L, overheads ₹23.44 L); margin ₹41.02 L, bank ₹52.73 L. Finance: owner ₹27.58 L, bank ₹82.73 L.

SIDBI Stand-Up Mitra profile, uploaded in 2018 (no year printed on it) — prices will be higher now; check current costs.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

2106.90Food preparations not elsewhere specified — includes flavoured or coloured sugar syrups

Export council / board: APEDA

  • Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Sugar price rises
  • Unsold stock after a short or wet summer
  • Fermentation or spoilage from poor hygiene
  • Price war with big brands

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working sharbat (flavoured syrup) unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (FSSAI manufacturing licence, Udyam registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

Associations, clusters and training institutes — the directory is being built. Connect

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

Want to start Sharbat (Flavoured Syrup) Unit?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. SIDBI Stand-Up Mitra project profile — Sherbets (2018)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.