Spice Powder Project Report, Business Plan

Spice Powder Project Report and Business Plan in India

Hello friends we are here today with a new topic of “Spice Powder Project Report, Business Plan”.


This article comprises a detailed home-based spice business plan, estimated profit with required machinery, cost, manufacturing procedure, and necessary raw materials. Also, it comprises important info about opening a small-scale spice processing business with less capital.

The spice itself a significant industry in India. Our nation is the major producer of numerous spices including turmeric, ginger, chili, and cumin. Hence, the country gains a good exportation income from the spice industry.

The spice powder-making business will be classified under the FMCG segment. It is an important cooking item. Apart from preparing delicious food, spice is a necessary ingredient used for medicines and processed food segments. It aids in improving the taste and flavor in producing pickles, ketchup, sauce, chips, wafers, and in the bakery.

A small-scale spice business is very simple for a beginning. And you can plan for any size based on your investment capacity and required business size. Even, you can plan about opening using a single product. However, a medium-scale unit with multiple goods ensures better income and revenue.

A step-by-step guide to starting a Spice Powder making business, Spice Powder Project Report

Spice Powder Making Project Report
Spice Powder Making Project Report (Image credit: pixabay)

STEP 1: Understand the spices powder product requirement

Commonly, you can make three kinds of products in this business. They are spice powder, whole spice, and spices for the specific recipe. Every product has its requirement in the market. Some consumers like using the spices in both ways either as a whole or as a paste. On the other hand, some desire spice powder only.

Some of the prevalent and widely used spices are Chilli, Turmeric, Black Pepper, Cumin, Coriander, Cardamom, Cloves. However, there is another market for the particular blend of spices for a specific food. The list includes chicken masala, meat masala, Sabji masala, chana masala, garam masala,, Kasuri Methi, chat masala, Pav bhaji masala, biryani masala etc. Additionally, the demand for organic spices is also growing presently. However, you must start the business as per the taste of your target market.

STEP 2: Design the business plan for Spice Powder making project report

Preparing a business plan or project report is a significant aspect of this business. Generally, a project report will include important series of information associated with the business. Additionally, it aids to get funding from investors or banks.

Apart from the investment estimate, you must have a proper marketing idea. You have to get a clear analysis of the marketing, distribution, and sales promotion techniques. Here we have summarised the essential stages for starting this business.

STEP 3: Registration, licensing and permissions required for Spice Powder making business

Spice is a food item. And food item processing needs various licenses and permissions from the Govt. organizations. However, it majorly depends on the legal rules region where you are planning to set up the business.

In India, you must take FSSAI permission for the spice start-up business. It is prudent to talk with a small business consultant about the particular licenses and permissions for your new venture.

  • Business Entity: The first registration for any business is to register it as a business entity by knowing about the form of the organization. It could be as a sole proprietorship or a partnership or a limited liability partnership or a one-person company. This will help in availing a few benefits to the business and must, therefore, be selected carefully before registering the business at the Registrar’s office.
  • FSSAI registration: As Spice Powder Making is classified as the processing of food or food products and thus as per the definition requires an FSSAI registration. Food Safety and Standards Authority of India (FSSAI) is meant for protecting and promoting public health by regulation and supervision of food safety hence FSSAI is a mandatory registration/license for the business. The FSSAI registration process is entirely online and quite easy to follow, once the documents are ready.
  • Shop Act or Trade License: As the Spice Powder Making business for example in Maharashtra, India requires applying for a Shop Act License from the local municipal authority to run the business. This license helps manage the working conditions along with working hours, leaves, wages, holidays, etc. of the employees and supports the business to run smoothly.
  • Udyog Aadhaar Registration: As Spice Powder Making is categorized as a small business and hence it must be registered under Udyog Aadhaar which is a registration and recognition for MSMEs- micro, small, and medium enterprises.
  • GST Registration: Every business, including the Spice Powder Making, should associate with taxes at some point and for monitoring a single uniform taxation structure, the business should get a common GST number which stands for Goods and Service Tax.
  • BIS certification: Apart from these registrations the business should get BIS certification as well as tax liabilities.
  • No Objection Certificate from State Pollution Control Board: Spice Powder Making doesn’t cause any pollution so no clearance is needed, however, it is recommended to check it with the State Pollution Control Board of the locality where the business is established.

STEP 4: Machinery for Spice Powder making business

According to the goods you want to produce, you will need to get the appropriate machinery. Some of the common machines are mentioned here.

  • Disintegrator
  • Packaging machine
  • Spice grinder
  • Pouch sealing machine
  • Weighing scale etc.

STEP 5: Raw materials required for Spice Powder making business

The necessary raw materials are several types of unground spices. The list contains turmeric, coriander, cumin, black pepper red chilies, etc. Also, you will obtain a proper pouch as the key packaging materials. Next, you have to obtain corrugated cartons used for bulk packaging.

STEP 6: Manufacturing process of Spice Powder making business

The process of manufacture comprises cleaning, pulverizing, drying, sieving, and packaging of spices for instance chili, turmeric, pepper, coriander, etc. either individually or in combination with various spices. The manufacturing method is very well established and is not difficult concerning technical operations.

In the first step is necessary to clean the unground spices that are done by staff to separate impurities like dirt and stones. Later wash with water. After drying under sunlight, they are graded and ground with a grinding machine to get a powder texture.

If you wish to produce a particular mix of spices, then it is necessary to create the blend. And the final thing is the packaging. The storage and proper circulation are vital aspects in getting long-term success in the spice powder-making venture.

Calculate the investment for Spice Powder making business

According to your business, you have to calculate the total venture investment of your business. Generally, for a small-scale operation, two different kinds of investment are seen- fixed capital and working capital. Some of the major attentions in fixed capital are the unit, building construction, machinery, registrations, and expenses for licensing, etc.

On the other hand, working capital must be used for procurement of raw materials, salary for staff, distribution, marketing, and tax obligations. If you don’t have your land, it is sensible to start the business on rental or lease area. Moreover, it’s also important to verify if there is any scheme or grant possibility from the Govt.

Spice Powder Project ReportInvestment required

Processing shed 2500 sq ft@250/sq ft6,25,000
Store 1000 sq ft @ 600 /sq/ft6,00,000
Office cum laboratory 400 sq ft @400 /sq.ft2,40,000
Water boring and distribution50,000
Compound wall, watchman shed and road development12,00,000
Machinery and EquipmentTotal value in Rs.
Micro pulveriser with 10 HP1,60,000
Disintegrater 12” with 7.5 HP60000
Hot air drier cabinet type elect.30000
Platform weighing balance8000
Counter scale balances10000
Sieving m/c. locally fabricated one5000
Automatic form fill and seal m/c1,80,000
Automatic form, fill & seal machine5,00,000
Testing equipment40000
Office furniture, comp printer40000
Erection, electrification charges1,03,300

Spice Powder Project ReportOperative Expenses

Pre-operative expenses

ItemsValue in Rs.
Advance for packaging material (Pouch, cartoon, etc )1,50,000
Sales tax regn.5,000
Other misc. exp.5,000

Fixed capital Investment = 27,15,000 + 11,36,300 + 1,78,300 = Rs. 40,29,600/-

Spice Powder Project ReportWorking capital

Capital investment required for salaries and man power = Rs. 28,500

Capital investment required for raw materials required = Rs. 7,14,000

Charges for utilities = Rs. 10,200

Other miscellaneous charges = Rs. 40,000

Total working capital per month = Rs. 7,92,700

Total investment required = Rs. 64,07,700

Cost of production per annum = Rs. 1,04,56,874

ItemQty. (in kg)RateValue in Rs.
Chilli ground35601204,27,200
Turmeric ground34801304,52,400
Pepper ground2050010,000
Coriander ground10014014,000
Coriander whole40903,600
Cumin whole13225033,000
Postak whole12070084,000
Methi whole36903,240
Mustard whole18014025,200
Formulated curry powder29020058,000
Total Value in Rs.11,10,640

Turnover per annum = Rs.11,10,640 X 12 = Rs.1,33,27,680

Profit = Turn Over – Cost of Production = 1,33,27,680 – 1,04,56,874 = Rs. 28,70,806

Net Profit Ratio = Profit x 100/ Turnover = 21.5%

Rate of return = Profit x 100/Total investment = 44.8 %

Break-even point = Fixed cost X 100/FC + profit = 31%.

Marketing strategies to promote your Spice Powder in the market

In case if you miss this: Essential Oil Extraction Business in India.

Marketing strategies to promote your Spice Powder
Marketing strategies to promote your Spice Powder (image source: pixabay)

You could try selling your Spice Powder in local markets or you may sell online. You can also register in some of the popular B2B websites and B2C websites and use online markets to advertise your Spice Powder. You can also sell your products in small stores, supermarkets, shopping malls, school canteens, etc. Promotion of your product through social media is very necessary to have a huge number of clients in this way you can grow and promote your business.


  1. Wants to setup complete plant, area 2500 sqft govt plot (8500 sqft) gida / Gorakhpur, registration under process

    Pl give complete details with your charges

  2. I need complete project report to set up spice power making and marketing and budget requirment for the whole project.


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