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. Variety and proportion of pulses and spices vary from region to region depending upon preferences of local people whereas certain varieties are popular on a larger scale.
Papad making business is often associated with the empowerment of women but in view of increasing demand and availability of machinery, it has now been developed in small-scale industry.
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.
Steps to Start a Papad Making Business
Do Some Market Research
Before starting papad making, it is extremely important to understand the taste and trend of local buyers. Talk to wholesalers, retailers, and if possible to consumers and conduct market research in creating a market feasibility report.
Legalities For Papad Making Business
To start a papad making business, first decide on the business structure, under which you are going run the business. In starting papad making business you will need to obtain required licenses and permits from the local appropriate authority.
Name Your Papad Making Business
If you serious to make your business a profitable one, it is extremely important to properly name your papad making business. Choose a catchy and relatable name which correctly emphasizes the product and the company to the potential customers. Read this article to know more about naming a business.
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.
Market Opportunity For Papad Making Business
There is a good demand of papads because it is a food product and commonly consumed commodity in all households and hotels throughout the year and especially during festive seasons. There are a couple of national brands and the market is predominantly controlled by the local brands.
The export potential of Papads is growing. The major importing countries are 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.
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Manufacturing Process For Papad Making Business
Papad can be manufactured from different varieties of pulses with a hand press machine developed by CFTRI. With 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 papad making business you will need to have a specific recipe to get varieties papad with different tastes. The packaging is important in papad making business. Moisture-proof good looking attractive packaging not only gives a marketing impact but also keep the food item safe.
Investment Required For Papad Making Business
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.