Why should you start a Vending Machine Business in India?
Updated: Jun 28
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COVID-19 has badly affected many businesses. The RBI has stated that India is going through a technical recession. As such, it is important to see this as an opportunity rather than a threat. The vending machine business is growing exponentially currently. Investing in a field when it is in its nascent stage is extremely useful.
SWOT Analysis of IoT vending machines
With social distancing and contactless buying becoming a norm, Vending Machines play an important role in achieving these objectives. With the Internet of things and digital payments, smart vending machines are providing more interactive, easy-to-use, and fast shopping experiences.
Rapid urbanization, growth of digital and cashless payment systems, and awareness of safe buying options have led to a substantial increase in demand for IoT-enabled vending machines in India.
Strengths: Micro-transactional platform for unmanned kiosks with contactless experience, digital payments, cloud kitchens, D2C brands, and tiffin services can sell their products in the most efficient, and convenient with instant fulfillment even for under ₹99 items.
Weakness: Vending Machines are designed for small units/ single & standard pack-size products. Though with periodic innovation around form-factor and packaging, brands are working to overcome this.
Opportunities: COVID has moved us towards adopting a healthier and hygiene-driven lifestyle. Unmanned Retail or Vending machines are a great technology to make it possible.
Threat: Food restaurants and tuck shop owners have been affected badly by COVID19. They may be a threat to unmanned options or they may embrace it to start investing in IoT-enabled vending machines in their cities.
Benefits of starting a vending machine business
The vending machine business provides a great return on Investment. You will need to make an initial investment of Rs.2,00,000.
There is a strong chance that you will recoup this investment in less than 24 months with some profits to show for it. This business has low operational costs and very little risk.
It is estimated that close to 70% of working professionals don’t get fresh home-cooked meals. Many people order from apps like Zomato, Swiggy, etc. due to the lack of easy availability of healthy meals.
Even people who want to order from tiffin services, cloud kitchens, etc. are discouraged due to long delivery time and delivery costs. Vending machines dispensing meals hope to fill this gap and provide affordable healthy home-cooked meals easily to office goers.
People are adjusting to the world after the onslaught of Coronavirus. Many offices have opened and with the vaccine just a few months away, almost all offices will open again.
There will be millions of potential customers looking for healthy meals. With little initial investment, low operational costs, low risk, and futuristic technology, investing in a vending machine business is a no-brainer.
Daalchini is the best option to start your Vending Machine business.
A company that is making great progress in this line of business is Daalchini. It recognized the need for easily available fresh home-cooked meals for urban individuals.
It endeavours to bring comfort Indian food to corporate offices, apartments, colleges through self-operated kiosks called Daalchini Hut.
These huts provide a delicious and healthy breakfast and peppy evening snacks as well as ready-to-eat Indian bread like rotis, chapatis, etc. anytime and anywhere.
Daalchini huts not only provide meals but also have a large assortment of snacks, fresh bakery items and beverages that have huge margins.
Daalchini has a robust supply chain. This ensures that the food in the kiosk is always fresh and never stale. It ensures that customers are always assured of the quality of the items in the kiosk.
There is one more benefit for businesses looking to open vending machine kiosks with Daalchini; new FMCG brands that are looking to acquire new urban customers will pay to have their products in the kiosk.
As the world opens up post covid, Daalchini stands the chance to become the safest unmanned canteen in the offices, colleges, hospitals, hostels, apartment complexes serving 6-meals-a-day options to its customers.
With state of the art technology, Daalchini can increase your ROI substantially. The technology, in addition to the robust supply chain, lowers the operational cost by at least 30%. A low operating cost will increase profits substantially.
It would also mean that you will need a minuscule amount of capital after the initial investment. This will help businesses regain the initial investment in no time.
Benefits for Home-Chefs with Daalchini:
Most tiffin centres, cloud kitchens, and small restaurants do not have the requisite licenses to operate. Daalchini helps them get the requisite licenses. It revamps their kitchen to be FSSAI compliant.
Once an operator is on-boarded, its volume of operations will increase significantly. The sales volume can increase by more than 50%.
Operators will get the benefit of economies of scale as they scale up their business. More sales with an incredible supply chain will help their businesses reach new and amazing heights.
We are a customer first company:
Daalchini also provides a healthy ecosystem for customers with around the clock customer support and engagement. Customers love to engage with a brand like Daalchini.
With impressive tie-ups with other brands, the potential for advertising income increases. The technology and supply chain also enables the introduction of introducing fresh and bakery items.
The vending machine industry is in its nascent stage now. It is growing exponentially month-on-month. An early mover advantage into a potentially multi-billion-dollar industry will not go unrewarded. Associating with Daalchini will be highly lucrative for everyone from food operators to businesses looking to invest their money.
To know more about us, visit our website: www.daalchini.co.in