How to Start a Papad Making Business, License, Cost

Introduction to how to start a Papad making business

If you desire in starting a profitable papad making business with low capital? See here a comprehensive papad manufacturing business plan with raw materials, machine cost, and production process. Papad is an appetizer and is famous across the globe.Now, let’s get into the details of establishing a Papad making unit which can give you a insight of how to start a Papad making business in india and licensing requirement.

A guide to how to start a Papad making business, license in India

Usually, people take papad as taste enricher along with main course or as a snack item. It is healthful and adds to taste. Usually, one can consume papad as roasted or fried. The shelf life of papad ranges from 2½ to 3 months.

Actually, papad is an FMCG product. Any person can initiate a papad making business as small, medium and large-scale category depending on the savings or capital available. Even, one can develop this business at their home.

Papad making business market potential

Before starting this business, you should conduct a market survey. Nowadays, papad is available in numerous different flavours and tastes. Thus, you must analyse the specific demand. The overall papad market is progressively growing which is particularly more in winter season.

The two main deciding factors are price and quality. Along with the flourished brands, small manufacturers also operate the papad market primarily. Apart from the retail distribution, the product has major demand in institutional market as well. Basically, the hotels, student hostels, restaurants, resorts are the recurrent purchasers of papad. Hence, papad making is a profitable small-scale prospect for the new entrepreneurs.

Different types of Papad

Almost, you could list several types of papad available in the market. Commonly, papad is prepared with diverse pulse types. Some of the most famous papads are

  • Uradpapad
  • Rice papad
  • Palakpapad
  • Moongpapad
  • Methipapad
  • Pudinapapad
  • Garlic papad
  • Pohapapad
  • Butter milk pohapapad
  • Shrimp papad
  • Aloopapad
  • Sabudanapapad etc.

Steps to start Papad making business

Craft a Papad making project report or business plan

Before starting the business, you must prepare a business plan. Roughly, a project report or business plan comprises of two parts. One is the technical segment. This section contains the market opportunity, raw material requirement, machinery requirement and production technology.

The second section which is the crucial part is the financial part. The financial part depicts the financial assets and returns of the business. Here, you must include the aspects like break even, the ROI and payback timeline. These all will assist you not only in beginning the business but also in attainment of finance from the financial organizations like banks.

Set up Papad making unit

For starting the manufacturing unit, the primary step is obtaining the space. If you wish to begin the business as home-based small scale it’s not any issue, and absolutely fine to operate at low investment. Or else, you must choose a space for the unit. Apart from that, you must have the provision for surplus water supply and electricity. In case, the unit is functional manually, then also the electricity is required for general purpose.

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Papad Making Unit Setup.
Papad Making Unit Setup.

After finalizing the space, you must register your business as an entity. Moreover, you must verify the particular licensing or permission matters from the government authority. As the business is dealt with a food industry, you carefully take care of the licensing factors that widely vary from state to state.

Papad making machinery

Choosing the machinery is one of the significant step in any new papad making unit. Basically, there are two varieties of machinery available that is determined by mode of operation i.e., manual and automatic operation. However, the machinery selection is done on the basis of the desired quality and quantity output.

One can use the machine with a manual papad press machine for your unit. The dough making can be done manually or you can employ a separate machine. However, an automatic machine operation has facility dough preparation, papad making along with dryer. There is also the requirement of a weighing scale and must have a sealing device for packaging.

Licenses required for Papad business

While starting papad making Business you must acquire some licenses and documentation regarding papad business, some of which we have informed below.

The licenses needed for the papad making unit may differ from state to state so better to refer the state government guidelines for business.

  • Registration of Firm: You may begin the small to medium papad making business as a Proprietorship or like Partnership Firm. If you are beginning this business as One Person Company, then you must register your company as a proprietorship firm. For Partnership operation, you must register as a limited liability partnership (LLP) or Pvt. Ltd. Company with Registrar of Companies (ROC).
  • GST Registration: Get GST number (mandatory for all business after GST policies), insurance certificate and tax identification number.
  • Trade License: Get the Trade License from local bodies.
  • MSME/SSI Registration: MSME/SSI Registration will qualify you for government schemes and provisions, so if you are willing to get the government schemes or subsidies regarding your business then you should apply for MSME/SSI Registration.EPF Registration: Employees state insurance that is an insurance scheme for staff.
  • ESI Registration: Employees provident fund is mandatory for the business where greater than 20 employees are working.
  • Trade Mark: One must register your brand name with trademark so that it will protect your brand.
  • Food Safety and Standard Authority of India (FSSAI): The papad making industry is assigned under food processing industry; thus, you should obtain the FSSAI license.
  • IEC code: If you are in preparation to export the papad to other places then you must take IEC code which is mandatory for export of product in any kind of business.
  • PFA Act: Compliance with the PFA Act is essential for papad making business. Quality standards as per the rules by by BIS are available to vide IS 2639:1984; It is also important to abide with the BIS standard.
Raw materials for Papad making business

The main material needed for any papad is pulse flour. But, specific pulse flour you require depends on the specific type of papad you wish to make. So according to the flavour and taste, you should obtain the pulse flour in the needed quantity. Apart from that, you should have edible oil, spices, and packaging consumables.

Papad making machine cost in India

Well, the machine cost of Papad making depends on the type of machine such as manual or automated or semi-automated and capacity of the machine. You may find small papad making machnes from Rs. 25,000 to big automated papad making machines up to Rs. 10,00,000 and more.

Papad making process

Basically, you can make a different kinds of papad with the combination of different pulses. Add the specific quantity of water in the flour of common salt, pulses, spices and sodium bicarbonate. Mix all the things homogenously for getting the dough.

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After around 30 minutes, descent small balls of 7-8 grams weight dough are made. Then keep these balls in papad preparing machines. Here these balls are pressed in circular shape and are prepared as per the size of the mold. Then, you will must dry these papads. You may even plan for sun drying. Though a machine dried papad has a good finishing with look. At last, pack the 25 or 50 prepared papads in polythene bags.

Where to sell the Papad

You should have a perfect marketing policy. Firstly, you can reach out the local retail market that leads spreading the new materials. Next you can reach out supermarkets, the shopping malls and departmental stores. Apart from these stores the online selling method from online marketplaces like Amazon. Papad making is moderately a feasible business to initiate the food processing industry. You can initiate the business with low capital and effort.

Papad business branding and uniqueness

If your product is of noble quality then you need not care about the sales segment of your product. We have included few aspects that you should carefully consider before creating and implementing the marketing plan.

While selling your papad product to local distributor or retailer inform them to promote your product by just spreading the brand to people for buying your papad; try to inflate your clients by utilizing your present customers. If they feel interested in your product then they will aid in promotion of your papad product.

Conclusion of starting a Papad making business in India

If you want to make good money in commercial papad making, you should know how to start a Papad making business in India and registartion/license requirements to set up a Papad making unit. You may also like the How to Make Money with Gardening.


  1. Dear Sir,

    I want to start Grue Udyod Papad Kolhapur but I stuck because of registration & Licence policy.
    Please cooperate.

  2. Hello Mr. P. Bhosale,
    Thank you for reading our article to start Papad business in Kolhapur. As mentioned in the article, it is better to get all the licenses and permissions such as Registration of Firm, GST Registration, Trade License, MSME/SSI Registration, ESI Registration, Trade Mark, FSSAI, IEC code, PFA Act. These are very important to start a business. You can get the links for each registration online. For example, you have to type ‘FSSAI registration for papad business, Kolhapur’ in the Google Search box.
    Kalpamanu Krishna Swathi


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