Starting Paan Shop Business – Profit In India

Starting Paan Shop Business in India


India is a country of many cultures and we are still practicing the tradition as a legacy. Chewing paan after food is also amongst them. In many Hindu rituals, it is considered even auspicious and guests anticipate after lunch or dinner. The beetle leaves are offered as gifts for their good fortune symbol, in many regions, it is eaten in combination with sweeteners in festivals like Durga Pooja and Diwali. It is also offered to god while religious rituals. Medical science says that consuming paan in small amounts is even better for digestive health and supports to digest food easily. Once the paan was a symbol of royalty the movies influenced it. It is Bollywood that made it popular. We all have heard the popular song by the renowned actor from the Don movie, ‘Khaike Paan Banaras Wala’.

Types of Paan

The popularity of Banarasi paan shot up after this movie is still there. There are several kinds of Paans available in various parts of the country and famous as well. Some of them are Maghai Paan, Meetha Paan, Saada Paan, Banarasi Paan, Silver Paan, Gold Paan, Kalkatti Paan, Jagannath Paan, Rasmalai Paan, Bangla Paan, Chocolate Paan, Tambaku Paan, Misti Paan, etc. Most of these have been famous in that cities and even tourists relish that while visiting those regions.

A step-by-step guide to starting Paan Shop business in India

Guide to starting Paan Shop business in India
Guide to starting Paan Shop business in India

Market potential of Paan Shop business

The domestic Paan sector is annually growing by about 9% according to a report submitted by the International Market Analysis Research and Consulting Group. The government is even facing a struggle with managing the paan shops and providing licenses to open them, but once you get registered you are legally permitted to sell government-sanctioned items that are high in demand by the crowd.

Paan Shop business plan

Let’s have a look at how you can arrange a Paan Shop business in India:

Arrange funds for starting Paan Shop business

This is amongst the most primary and significant step for any business. You are planning a paan shop. It will need principal investment. Try to arrange some sponsors who are planning to support a local business and be secured in tough times.

Location or area required to start Paan Shop business

Having a paan shop near a posh society is not perfect for your business and it will not offer much profit. The best place to set up a paan shop business is close to a restaurant or family dining, office, in the market, near a building place, or in a public area where footfall is high. These are the places where people plan a break from their work and are more likely to visit your store. This will ensure regular customers for your stall.

License, permission, and registrations required for starting Paan Shop business in India

To arrange any shop in India you should acquire certain permits such as a Business License, Business Name Registration or DBA Certificate, Resale Certificate, Certificate of Occupancy, Tax ID, etc. To set up a paan shop of any scale, license obligatory. Make sure you have kept all the necessary paperwork beforehand and have kept them handy and be ready to go to respective government offices for business set up.

Infrastructure for starting Paan Shop business

The paan shop business can be planned without any high-end infrastructure. It is a business with low investment and low manual labor. All you need to have is a small counter, few shelves, and some essential ingredients. You can set up your paan shop on the roadside or you can have a small area around the corner and keep under a big umbrella. You can even accommodate a few small seating areas with chairs and extend your place in the long run to the present shop. This setting usually is appropriate for a paan shop.

Equipment required for starting Paan Shop business

If you are beginning a paan shop business your main expense will be for equipment. You need to have a few containers to keep snacks, foils, etc. You can also keep a refrigeration unit to keep these items intact for the entire day. These are all very less expensive that can be used in other areas too.

In case if you miss this: Real Ways To Make Money From Home.

Raw materials required for starting Paan Shop business

The paan shop business does not require much spending in this segment as well. The products that are used to make the paan are even reasonable and easily acquired in the market. Have a set of suppliers from whom you can buy your material every day or weekly as per your convenience who are reliable. You should not ignore your profit and become careless while planning your resources. You can even check out more affordable items in the market but do not ignore the quality of the ingredients. Make sure your products are within the expiry date and maintain the cleanliness of your paan shop and the area surrounding it.

Go for variety of Paan Shop business plan

Along with the basic plan, you can do some innovation with paan flavors and types. There are several types of paans such as sweet paan, mint paan, fire paan, etc. People are used to these products and will try any new type from you. These are easy to prepare and include cheap components so there is also no time problem nor extra expenses will incur.

Other accompaniments along with Paan Shop business

Although the paan itself is sufficient with time the way it is consumed has changed and paan shops have few more allied things as well. It is not limited to selling paan. It sells magazines, newspapers, and a few candies and snacks are even available in these stores. Having biscuits, other local bakery items such as puffs or cream rolls, chips are also seen somewhere. Biscuits and local bakery items are mainly required by most of the people and have become synonymous with paan shops, so it has become an integral part of any paan shop them as well.

Investment required for starting Paan Shop business in India

To know how much you have to spend, you must first know the expenses. The investment will be very less but the earnings will be more. You need to invest Rs. 1 lakh to Rs. 2 Lakhs to start the business.

You may also check this: Betel Leaves Cultivation.

Profit in Paan Shop business in India

You can tie-up with the few restaurants and hotels as they provide Paan as gratitude after having meals or dinner. So, it will improve your business and gets more profits easily. Because of the high demand, the profit margin in the Paan shop business is high. One can gain up to 2000 rupees every day. The profit margin in the Paan shop business is much more for wholesale dealers. If you carefully follow the above-mentioned steps you can earn income through the Paan shop business though you have spent less capital.­­


Paan shop Business is the best part of the unorganized business segment in India. People are inclined to leave their jobs to live a life of self-respect and earn money for themselves by arranging up paan shops. There was a time when this business was looked low but that was passed. With our government asking the youth to be self-dependent, this anxious time has called for desperate ideas, and the paan shop idea is here to support us, again. To start any business, be it small or large, there is always a risk of dropping out money or not gaining enough profit. But don’t let this fear overcome the path of success. Many people have planned for their paan shop businesses to big ventures. You can for instance take the encouragement and icon as our Prime Minister for encouragement for this as he was a normal tea selling person and now you can see as he is heading the entire nation and, enjoying the fruits. All the best!


  1. Hello
    My bro wants to start a paan shop, but he didn’t know how to make paan. Will, you please guide us about any course of making paan in India.

    Thank you

  2. Hy
    I want to start a paan shop. I have little idea about this business. And also I want to include cigerette selling.
    Can you please guide me?


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