written by Khatabook | September 9, 2021

How To Start a Papad Business in India?

Papad is one of India's most popular delicacies. It is manufactured and consumed in practically every part of the country. Indians enjoy eating it as a side dish with their meals. Because of its cost-effectiveness and profitability, the papad business has steadily grown in popularity. This classic dish serves as an appetiser and digestive aid and is often produced using various flours. In general, papad comes in a variety of flavours and shapes and helps in enhancing the flavour of any meal. 

How to start papad making business?

Before learning how to start a papad making business in India, let’s learn a bit about its significance:

Papads have a special place in the hearts of several communities. No Rajasthani, Maharashtrian and Gujarati thali is complete without a crunchy papad along with it! People eat papad in two ways: roasted or fried. Apart from residential use, hotels and restaurants are the primary buyers of this product.

According to reports, when money and goods were gathered in 1915 to support Indian soldiers fighting in the Great War, “tins of papads” were among the offerings. Also, when the very first air services from India began in 1935, shipments included mangoes, nuts, and papads. As you can see, papad has always been a significant part of the Indian community.

One of the most popular success stories in this sector is of Lijjat papad which was started in 1959 by seven women in South Mumbai with a capital of Rs 80. With only a profit of 50 paise at first, these women were able to turn this business into a multi-million dollar venture. With its roots dipped into women empowerment, this establishment made papads and also lent out a helping hand to any woman in need of work. 

Papad has long been a part of the Indian culture, and many people have opened papad business due to its increasing popularity. After all, the papad-manufacturing firm costs less capital and yields higher profits, making it a viable venture.

So, let's take a look at the papad making business plan, papad making process,  papad industry and everything else related to the papad business.

Guide to Papad making business 

  • Starting a papad making business is not that difficult. However, you do have to follow certain steps to reach your goal.
  • Your work would require everything from selecting the type of papad to purchasing a small-scale papad making machine and preparing a visionary business plan. 
  • Deciding the business financing, obtaining required ingredients, choosing a business/brand name, and marketing the product are important steps in setting up this business. 
  • Every business should have a market research strategy in place. Having a thorough understanding of the product and the papad industry is essential for the success of your business, irrespective of how large or small your investment is.

To start any business, you must first get to know your customers because, ultimately, your customers will determine your company's success. So, to establish a papad making business, we've outlined all of the necessary steps to make your business lucrative in no time.

Also Read: 10 Tips for Successful Money Management for A Profitable Business

What are the different types of Papad

Let's start by learning about the various types of papads available in the Indian market. This will help you pick which one is the most suitable for you. In general, papad is prepared with a variety of pulses and ingredients such as Rice papad, Moong papad, Urad Papad, Garlic Papad, Sabudana Papad, Masala Papad, Palak Papad, Methi Papad, Aloo Papad, Moong Papad, Pudina Papad etc.

You can either follow the papad making process at home and prepare them yourself, or you can hire a papad-making specialist. This is entirely dependent on the amount of money you are willing to invest.

Papad Making Business Plan

Before launching any business, you must first frame a business strategy. All of your discoveries, resources, funds required, machinery, suppliers, objectives, and goals must be included in a business plan. When creating a business strategy for papads, it is critical to evaluate the market opportunity, potential consumers, the papad type in demand, and understanding the trends in the papad industry. 

As an entrepreneur, you must consider the amount of fixed capital required, the original investment amount, future business costs, profit margin, as well as competitive pricing strategies. A business plan provides a clear vision of your company's future so that you can avoid discrepancies that may affect your business. Therefore, with a papad making business plan or papad making business project report, you're one step ahead in starting your papad making business

Financing papad making business

Prepare a preliminary estimate of the costs associated with entering the papad making business in India. While certain costs are constant, others will vary depending on company conditions. Planning your funds ahead of time will be beneficial in starting your business. You can use your savings or take a loan from a financial institution, either a term loan or a working capital loan. Having a solid business plan can help you get investors for your papad-making venture.

List of Licenses Required for Papad Business

Papad is classified as a fast-moving consumer good. As a result, you must secure essential business registrations and permits. The papad-making unit's licence requirements may differ from state to state, so make sure you check the state government's business regulations. The Government of India has authorised several licences for the papad sector. Because papad is a processed food item, failing to register can cause serious consequences for your business. 

Let's take a look at some of the permits you'll need to run a papad making business:

  • Registration of business: You can start a small to medium papad making business as a sole proprietorship or a partnership. If you're launching a business as a one-person operation, you'll need to register as a sole proprietorship. You can also register as a limited liability partnership or a private limited company with the Registrar of Companies to operate the business legally.
  • Goods and Service Tax (GST) Registration: With the implementation of GST, all businesses, no matter how small or large, are required to obtain a GST number. It is also necessary to obtain a tax identification number (TIN) and an insurance certificate.
  • Food Safety and Standard Authority of India (FSSAI):  The papad making sector falls within the food processing industry; thus, you'll need to get an FSSAI licence without fail before starting the papad business.
  • Micro, Small and Medium Enterprise (MSME)/Small scale industries (SSI) Registration: MSME/SSI Registration makes you eligible for government programmes and services. Therefore, if you want to take advantage of government subsidies or programmes for your firm, you must first apply for MSME/SSI Registration.
  • Employee State Insurance  (ESI) Registration: To establish a papad making business, you'll need to get employee state insurance, which is a type of worker's insurance.
  • Trade License: You're required to obtain a Trade License from local authorities to carry out ethical business operations. 
  • Employees Provident Fund (EPF) Registration:  If your small scale papad business has 20 or more employees, you must enrol in the Employees Provident Fund, which is required for businesses with more than 20 employees.
  • Trademark: By registering your brand name as a trademark, you can ensure that no one else may claim your company as their own.
  • Prevention of Food Adulteration Act (PFA): For papad production, adherence to the PFA Act is required. Quality standards defined by the Bureau of Indian Standards (BIS) can be found in IS 2639:1984. You must also adhere to the BIS standard.
  • Importer-Exporter Code (IEC) code: If you want to export the papad to other nations, you'll need an IEC code required for any business that exports products.

Papad Making Unit

While the location is vital when establishing a business, you can start a Papad making business from your house or a Papad manufacturing unit. When choosing a location for the papad making unit, look for amenities such as water and power. Ensure that the location is easily accessible to the target market and raw material source.

Setup for Making Papads At Home

You may start a papad making business from home with a low investment. However, you must follow some government standards for food production to start a Papad business at home. One of the most important rules to follow is to construct a separate kitchen for food preparation and maintain its hygiene at all times. You can begin a papad making business with as little as 1000 square feet of covered space. Once you've decided on an area, you'll need to comply or register for government licencing or authorisation.

Papad Making Machinery

Choosing machinery is a critical stage in the papad business; it acts as a game-changer. The machinery needed to make papad is mainly determined by the size of your business and the level of automation you want. There are three main types of machinery in the market for manual, semi-automatic, and fully automatic operations. You will receive a higher manufacturing output with a semi-automatic papad making machine unit than a manual method. You can set up a completely automatic papad making machine to produce big quantities of papads. Fully Automatic Papad machines are long-lasting, reliable, and high-performing. Learn about the different papad making machine cost and evaluate the machines before proceeding with your purchase. 

Papad making process

Papad making isn't a difficult task to master if you know the fundamentals of cooking. Or you can simply learn it. To begin with, many types of pulses can be used to make papads. You can also prepare papad with a blend of pulses.

  • Choose your desired pulses, add seasonings like salt, spices, and sodium bicarbonate.
  • Then begin creating the dough by incorporating a suitable amount of water into the pulses and flour ingredients. To make the dough, mix everything thoroughly.
  • Make little balls of dough weighing roughly 7-8 grams after around 30 minutes.
  • Then, using a papad manufacturing machine or a papad press, place these balls in the machine. These balls are pressed, and circular papads are formed according to the mould's size.
  • The papads must then be dried. Sun drying is one option. On the other hand, machine-dried papad has a more appealing appearance.
  • Finally, the papads must be packed. Polyethene or paper bags can be used to pack a large quantity of 25 or 50 papads.

Choosing a business name

Your company's name should reflect the nature of your business and its identity. It should be distinct and memorable since the customers' first impression of your company is largely based on its name. Half of the branding is done with good and simple names that are easy to remember. A good business name might also help you stand out to potential investors. As a result, picking the correct business name for your papad business is critical.

Marketing and selling papad

Marketing for your papad business is critical because they are directly related to product sales. You can sell papad both online and offline. You can sell papad to the local retailer or sell papad in bulk quantities to the wholesale market. Register your business on sites like Amazon, Flipkart, and Big basket if you want to sell papad online. It's also possible to sell it on social media. Your company can reach new heights if you invest money and time in marketing it.

Also Read: 15 Best Online Business Ideas to Start with Less Money 2021

Conclusion

A successful papad business relies on two key elements: the recipe and marketing. To achieve significant heights, a small-scale papad business must have efficient distribution and sales promotion. Learn about the intricacies of papad making before entering this industry so that you can be well prepared to launch your business. You can download the Khatabook app to get a step ahead in making your business more feasible. This app aids small business owners in payments, generating business reports, creating entries and more. Therefore, with proper planning, you can start your papad making business in a few steps. 

We hope that this article has sparked your interest in starting your own papad making business

Download the Khatabook app today for more business related information, accounting tips and GST updates. 

FAQs

1. Is papad making business profitable?

Papad is a must-have culinary item in India. Its taste and nutritional benefits have earned it recognition in other countries as well. As a result, demand is consistent throughout the year, peaking during the festival season. In India, the papad making business is quite profitable, but you must conduct an extensive study before getting started. Go through this article to know more about how to establish a papad making business in India.

2. What is papad making business project report?

A papad making business project report includes all the relevant details of the business such as financial planning, marketing, type of machinery used in business, resources, licensing. It also consists of information on papad making units, papad making process, choosing a business name etc.

3. How to start papad making business?

Depending on your preferences, anyone can start a papad making business. Small-scale, large-scale, or home-based. We've outlined the steps and requirements for starting a papad-making business in India. We recommend you read this article for a thorough understanding.

4. How much does papad making machine cost?

The cost of a papad plant is not expensive; however, it depends on your production capacity. The cost of papad making machine for small business ranges from Rs 10,000 to Rs 10 lakhs.

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