What investment is required to open a mini supermarket in India?

Assuming it's got a population of 10 k and the customer base on central line in vashi has a predominantly migrant population with mixed tastes and culture. A moderate 10 to 15 lakh budget is sufficient to start a mini super market in this locality. A buy and save model would work well in this area.

1. 700 to 900 sqft shop should suffice the need to cater this market as the rentals are pretty high.

2. As most shops operate on MRP , a buy and save model would work wonders for you to gain volumes and establish market share faster.

3. The more they buy the more they save. Assuming a customer bought 1 ltr aquafina at 20 INR  that's the MRP. In case if he opts to buy 3 of the same product  sell it at 19 or 18. This would drive your volume sales.

4. Advertise on local cable channels in the area you operate to gain visibility.5. Flyers with all the buy and save offers can communicate well to your

customer base. Put the flyers in daily newspapers taking help from a local newspaper agent in your locality.

6. Keep your rentals low as it's a matter of sustainability and also do not overstock products initially. Understand the needs of the customer in your area, guage their buying pattern and accordingly buy stocks.

7. Buy your stocks from large scale wholesalers like Carrefour, Metro cash and carry, reliance market as they give you better offers and discounts.

8. Register your shop under shops and establishments act and also get a vat number.and prevailing licences applicable in your locality.

9. Tie up with online delivery apps like ola store, grocers kirana... Etc. Negotiate well on the commission bit if you fell they are charging high then since you are a starter stay away.if they give you a sweet deal then accept it will add to your sales.but the have a different pricing for online customers consider your delivery cost + the commission and arrive at a decent price.

The various verticals are:

1. If you're planning to buy or rent the place?2. How big a place are you looking for? For any kind of a supermarket, you

will need atleast 3200 sq ft of space, check rent/purchasing cost accordingly.

3. What are the local administrative charges?

4. How much will it cost to get the necessary interior, like shelves and furniture, lighting and air conditioning etc?

5. How much will you be paying for keeping the refrigerators on 24/7?6. Security measures like security guard and CCTV surveillance?7. Cost of getting the electronic payment system to speed up the check out

process?8. Cost of advertising in the area?9. How many people will you hire and what are you going to pay them?10. How much will logistics cost you?11. Keeping up with online stores like GROFERS, how much can you

invest on home delivery supply chain?12. Finally, cost of Inventory purchasing, storage and maintenance.

Hope this will help you better estimate your investment. Yes initial ground research will also be included in the cost. You can not expect to get the real amount without putting in some ground work. 

The steps followed in the setting up of a Supermarket:Location to be selected:The selection of location for starting a supermarket is very essential because there has to be the right source through which the deliverables are to be executed. Usually the building that is accessible to the town or city would be a good choice as there would be crowd associated with it. The second important aspect would be to conduct a survey to know regarding the water facilities and other activities such as the disposal of waste etc. These form the daily routine task execution. This will also help you to keep the locality clean and tidy.The customers would not visit the place of business if it is not appealing. Once the building is certified as a healthy environment, it’s a head start for the business! It is an indication towards the building to conduct safe business.

To acquire the license for the business:The next step would be to attain the license from the prescribed authority. The details could be collected from the government web site or by visiting the office of the license authority. Both the ways the amount deposited for the license or for the purpose of meeting the requirements of the legal fee etc. should be kept ready in the initial stage of starting the business. It would come handy when it is required. Acquiring the license is nothing but, gaining authority to start up with business, without the fear of being

questioned on legality of the business. This will include the store’s registration cost, contract with the building owner etc. These are required to prove that you have either rented or leased the building. If it is your own building, then you could show the property ownership document.

To know the aspect from the financial institutions:

If you want to get yourself funded for the supermarket, then the choice would be to reach out to the government based institutions to avoid overcharging of interest on capital. Surveying of the goods that needs to be stocked could be done by visiting some of the nearest supermarkets. You could also contact a financial advisor to be on the safer side so that you do not lose out money during the course of starting of business! Doing a market analysis is very important before the commencement of the business, as this is apt to know the market for different products. This will help in unstocking unwanted products.

Choosing the suppliers with accessibility or with option of delivery at store and appointment of staff:

It would be a waste of time for you to go to the suppliers and get the goods from them for sale. It is better to find them at a reachable place or request them to visit the store and deliver the order. Staff appointment also comes into picture while starting the supermarket. They have to be aware of the stocks and report daily sales accordingly. There has to be one person responsible for stocking the goods, the other should be appointed to take care of the arrangement of the stock display. The coordination between the staff in assisting the customers should be apt so that the customers do not feel let down with the service. Security cameras have to be installed in order to avoid theft or to avoid suspicion of such an event. These kind of proactive measures have to be taken in order to run the business on a smooth basis. The supermarket has to be set up as per the plan that is drawn before the starting of the business. Hence, the plan has to be effective enough considering the fact of being cost effective. They should be trained in the sector of having the pattern to substantiate the process intact.

Advertise the existence of the supermarket:

The supermarket is started, but does anyone know about it? Yes! Now, it is the awareness that needs to be created within the people. Distribute pamphlets; put the pop-up banners with discounts offered for the first two weeks or the decided period in order to get sales. These are some of the activities that would be noticed by people. As a result of this customers would visit your supermarket to at least have a look at it.

Another way to let the customers know about the existence is by inviting all of them for the grand inauguration, which can be headed by a celebrity. If that is too expensive, then avail contests for the customers, where they could win themselves a prize! This way the business store will be noticed and also you would get the customers to buy products from here.