Papad making business is very profitable in the food industry considering the investment of low start-up capital. Papad is often served as an appetizer; it is consumed in most countries in Asia, predominantly in India.
It’s a thin wafer-like product. The variety and proportion of pulses and spices vary from region to region depending upon the preferences of local people whereas certain varieties are popular on a larger scale.
Papad-making manufacturing business is often associated with the empowerment of women but in view of the increasing demand and availability of machinery, it has now been developed in small-scale industry.
Is Papad Making Business Profitable?
There is a good demand for Papads because it is a food product and commonly consumed commodity in all households and hotels throughout the year and especially during festive seasons. The market is predominantly controlled by the local brands and thus makes the competition less compared to other food products.
The export potential of Papads is growing. The major importing countries are the UK, USA, UAE, Singapore, Nigeria, Oman, Malaysia, Kuwait, Canada, Bahrain, and Australia. It is important to concentrate on brand development. Establishing a strong dealer network will definitely help you in getting success.
An entrepreneur having knowledge about FMCG marketing can start this business with moderate capital investment. It can be initiated on a small scale from the home location also.
10 Steps to Start Papad Manufacturing Business
1. Do Some Market Research
Before starting papad making, it is extremely important to understand the taste and trends of local buyers. Talk to wholesalers, retailers, and if possible consumers and conduct market research in creating a market feasibility report.
2. Select the type of Papad You Want to Make
In papad, the major component is pulse flour. So you can produce different types of papad by using different dals. So of the most popular are Moong papad, Arhar papad, Udad papad, Chana papad, mix papad, masala papad etc.
Additionally, taste-wise you can also prepare different types of papad. These are Pudina papad, Garlic Papad, Kothimbir Papad, Green Chilli Papad, Palak Papad, Jeera Papad, and Red Chilli Papad.
3. Legalities For Papad Making Business
To start a papad-making business, first decide on the business structure, under which you are going to run the business. In starting papad making business you will need to obtain required licenses and permits from the local appropriate authority.
For example, if you are from India, you will need to obtain an FSSAI license to run a Papad manufacturing business.
4. Name Your Papad Making Business
If you are serious about making your business a profitable one, it is extremely important to properly name your papad-making business. Choose a catchy and relatable name that correctly emphasizes the product and the company to potential customers. Read this article to know more about naming a business.
5. Write a Business Plan
Before initiating a papad making business, go for some research about area demographics, other products available in the market, and the marketing strategy of other papad-making companies.
Craft a proper business plan. It is advisable to have a customized project report in hand before initiating the business.
Calculate your fixed capital investment with machinery and building cost. Working capital includes raw material, manpower, electricity, transport, marketing expenses, and other miscellaneous expenses. A detailed business plan will not only help you in arranging the startup capital.
6. Machinery Required for Papad Manufacturing
One can make Papad in three ways. They are manual, semi-automatic, and fully automatic machines. The manual process requires a handmade Papad press machine. However, the dough needs to be prepared on your own in this process.
If you are looking for production output, a semi-automatic machine is a better choice. The machinery required for semi-automatic Papad making production are Electric Grinding Machine, Mixing Machine, Electric Papad Press Machine, Drying Trolley machine, Tank for Storing Water, Weighing Scale, and a Pouch Sealing Machine.
For larger commercial production, the best choice is a fully automated machine. The machines are fully integrated and require less manpower and the production output per hour is much higher.
7. Learn the Manufacturing Process For Papad Making Business
Papad can be manufactured from different varieties of pulses with a hand press machine developed by CFTRI. With the automatic papad-making machine, you can make up to 40 kg papad per hour. You need a dryer machine also. You will need to have a weighing machine. To make papads of various tastes you need flour, powdered pulse, Beuli dal, pea, oil, salt, various spices, etc. as ingredients.
In the papad-making business, you will need to have a specific recipe to get varieties of papad with different tastes. Packaging is important in the papad-making business. Moisture-proof good looking attractive packaging not only gives a marketing impact but also keeps the food item safe.
7. Cost & Area Required For Papad Making Business
An automated papad-making machine will cost you in the range of $5000 to $20000. The minimum period needed to achieve break-even in this business is six months and the expected gross profit is 25 to 30 percent. If you are looking forward to starting with a manual machine, the cost will be much less. In addition, an area of a minimum of 500 sq. ft will be needed to make papads commercially.
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