Bakery Business (Bread, Toast and Khari)
बेकरी व्यवसाय · बेकरी व्यवसाय
Bake bread, pav, toast and khari in a small rack oven and supply shops, tea stalls and hotels every morning. Daily cash sales, early hours.
Investment
₹10.2 lakh
Profit a month*
₹45,000
- Space
- 1,000 sq ft
- Staff
- 5 + you
*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.
A small wholesale bakery mixes maida dough, proofs it, bakes bread and pav in a rack oven and delivers before breakfast. Dry items such as toast (rusk), khari and butter biscuits fill the oven for the rest of the day and keep longer. It suits someone who can manage early-morning production and daily delivery, with a trained baker on staff. Bread sells every day and is mostly paid for quickly, so cash comes back fast. The margin per loaf is small, so the business depends on a tight delivery route and low returns. The hard parts are the 4 a.m. start, unsold bread coming back, and rising maida, fat and fuel prices.
Skills needed: You need a trained baker (or bakery training yourself), strict hygiene and a reliable delivery routine. Short bakery courses are offered by institutes of hotel management and state food-craft institutes.
Profit calculator
Change the numbers to match your town275 loaf/day: Bread loaf, 400 g (and pav of the same dough weight) · 44 kg/day: Toast, khari and butter biscuits
Total investment
₹10.2 lakh
Your own money
₹1.02 lakh
Subsidy
—
Bank loan
₹9.22 lakh
Mudra Tarun
A typical month in year 2
| Sales | ₹4,12,720 |
| Raw material & packing | −₹2,56,256 |
| Electricity | −₹9,590 |
| Salaries | −₹68,250 |
| Rent | −₹18,900 |
| Other running costs | −₹14,700 |
| Operating profit | ₹45,024 |
| Loan instalment (EMI) | −₹21,494 |
| You keep each month | ₹23,530 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
Need this for a bank loan?
Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Rotary rack ovenSmall 12–18 tray, diesel, gas or electric | ₹2,75,000₹1.9 lakh–₹4.25 lakh |
| Spiral dough mixerAbout 30 kg flour batch | ₹1,05,000₹76,000–₹2.15 lakh |
| Planetary mixer40 litre, for biscuit and cake batters | ₹72,000₹65,000–₹80,000 |
| Bread slicerSemi-automatic, bread and rusk | ₹55,000 |
| Proofing cabinet | ₹45,000 |
| Bread moulds, trays and rack trolleys | ₹60,000 |
| Stainless-steel work tables × 3 | ₹30,000₹7,000–₹15,000 |
| Band sealer and weighing scales | ₹27,000₹18,000–₹45,000 |
| Storage racks and crates | ₹25,000 |
| Used three-wheeler or small van for deliveryadd-on | ₹2,00,000 |
| Machinery & equipment (without add-ons) | ₹6,94,000 |
| FSSAI, Udyam and other registrations | ₹6,000 |
| Wrapper design and printing cylinders | ₹20,000 |
| Three-phase connection, wiring and gas or diesel line | ₹35,000 |
| Trial baking and samples | ₹15,000 |
| Working capital 10 days of raw material, 7 days of credit to buyers, 1 month of expenses | ₹2,54,290 |
| Total project cost | ₹10,24,290 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Bread loaf, 400 g (and pav of the same dough weight) (per loaf) | ₹ |
|---|---|
| Maida (0.26 kg at ₹34/kg) | 8.80 |
| Yeast, sugar, fat, salt and improver | 4.50 |
| Printed wrapper | 1.20 |
| Oven fuel (diesel or LPG) | 1.50 |
| Material cost | 16.00 |
| Selling price | 28.00 |
| Margin before running costs | 12.00 (43%) |
Price is the wholesale rate to shops; the MRP is typically ₹35–45.
| Toast, khari and butter biscuits (per kg) | ₹ |
|---|---|
| Maida, fat, sugar and flavourings | 95.00 |
| Pouches and boxes | 8.00 |
| Oven fuel | 5.00 |
| Material cost | 108.00 |
| Selling price | 160.00 |
| Margin before running costs | 52.00 (33%) |
Blended wholesale rate. Khari uses more fat and sells for more than toast.
Space, power and staff
1,000 sq ft
Rented shed · rent ≈ ₹18,000/month
Small-town or city-outskirts rent. Needs washable floors and walls, good ventilation and a separate store for flour.
10 kW, three-phase
Bill ≈ ₹14,000/month at full capacity
5 staff + you
- 1 × Head baker: ₹20,000
- 3 × Bakery helpers: ₹11,000
- 1 × Delivery and sales: ₹12,000
Licences and registrations
FSSAI registration / licence
mandatoryWhen: Before you sell · Cost: ₹100/yr for basic registration; state licence ₹2,000–5,000/yr above the turnover limit
The turnover limit for basic registration was reported to be raised in 2026. Check the current limit on foscos.fssai.gov.in.
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Apply only on udyamregistration.gov.in.
GST registration
if applicableWhen: When turnover crosses the registration limit · Cost: Free
Plain bread has long been exempt, while toast, khari, biscuits and cakes are taxed. Rates were revised in 2025, so confirm each product's rate with a CA.
Local body trade / health licence
if applicableWhen: Before opening · Cost: Varies by municipality
Fire safety NOC
if applicableWhen: For ovens using diesel or LPG, as your local rules require · Cost: Varies
Legal Metrology packer registration
if applicableWhen: Before selling pre-packed items with MRP · Cost: Varies by state
How it works
- Sieve the flour and mix dough in the spiral mixer.
- Divide, shape and place in moulds or on trays.
- Proof until the dough has risen.
- Bake in the rack oven; cool on racks.
- Slice and wrap bread; for toast, slice and bake a second time.
- Load crates and deliver to shops early in the morning; collect returns.
Loan route
Mudra loan (Tarun)
Own money ₹1.02 lakh · Loan ₹9.22 lakh · EMI ≈ ₹21,494
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹1.54 lakh (general, urban) to ₹3.59 lakh (special category, rural). EMI ≈ ₹17,912–₹14,330.
Own money 5–10%. Applicant must be at least 8th pass for this project size. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Kirana shops and dairies
- Tea stalls, vada pav and pav bhaji stalls
- Hotels, canteens and hostels
- Your own counter
- Bakery retail shops without their own oven
Ways to sell
- A fixed early-morning delivery route
- A retail counter at the bakery
- Standing orders from stalls and canteens
Season: Steady all year. Bread sales dip slightly in peak summer and rise in the monsoon and winter; cakes peak in December.
Competition: Regional bread brands with wide distribution, and old neighbourhood bakeries. Small bakeries win on freshness, pav and local items that big brands do not deliver daily.
Risks and how to handle them
Unsold bread is returned after two or three days
Bake to confirmed orders, track returns shop by shop and turn day-old bread into toast or crumbs.
Maida, fat or fuel prices rise
Keep a product mix with better-margin dry items, and revise wholesale rates along with the larger brands.
Oven breakdown stops all production
Buy from a maker with local service, keep burner spares and service the oven on schedule.
The head baker leaves
Document recipes and timings and train a helper as second baker.
Tips from the trade
- Pav for stalls is often a steadier order than sliced bread for shops.
- Dry items use the oven in the idle afternoon hours and do not come back unsold.
- Start with a small route you can serve on time every day, then add shops.
Questions people ask
Is a bakery retail shop the same as this business?+
No. This profile is a production bakery that supplies shops. A retail cake shop needs less machinery but a costly high-street location, display counters and a different kind of selling.
Which oven should a small bakery buy?+
A small rotary rack oven suits bread and toast in volume. Deck ovens cost less and suit small batches and cakes. Choose after deciding your daily bread quantity, and check the fuel available at your site.
How much investment is needed to start a bakery business (bread, toast and khari) business?+
About ₹10.2 lakh for a small unit: ₹6.94 lakh for machinery and equipment, ₹76,000 for set-up costs and ₹2.54 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a bakery business (bread, toast and khari) business make per month?+
At 55% of capacity, sales are about ₹4.13 lakh a month and operating profit about ₹45,024 before the loan instalment. After an EMI of about ₹21,494, the owner keeps about ₹23,530 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Which machines are needed for bakery business (bread, toast and khari)?+
Rotary rack oven (₹1.9 lakh–₹4.25 lakh); Spiral dough mixer (₹76,000–₹2.15 lakh); Planetary mixer (₹65,000–₹80,000); Bread slicer (about ₹55,000).
Can I get a Mudra loan or PMEGP subsidy for bakery business (bread, toast and khari)?+
With a project cost of about ₹10.2 lakh, the bank loan of about ₹9.22 lakh falls under Mudra Tarun. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹3.59 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
What licences are required for bakery business (bread, toast and khari)?+
Mandatory: FSSAI registration / licence. Depending on your set-up you may also need: Udyam registration, GST registration, Local body trade / health licence, Fire safety NOC, Legal Metrology packer registration.
Similar businesses
Namkeen (Farsan) Making Business
नमकीन बनाने का व्यवसाय · फरसाण उद्योग
Fry and pack sev, gathiya, chivda and mixture with an extruder and a fryer, and sell to shops, tea stalls and caterers in your area.
Investment
₹7.8 lakh
Profit*
₹42,000/mo
Space
800 sq ft
Papad Making Business
पापड़ बनाने का व्यवसाय · पापड उद्योग
Make urad dal papad with a small machine and a few workers, and sell to kirana shops and wholesalers. Low investment, steady year-round demand.
Investment
₹6.1 lakh
Profit*
₹25,000/mo
Space
600 sq ft
Cloud Kitchen Business
क्लाउड किचन व्यवसाय · क्लाउड किचन व्यवसाय
Run a delivery-only kitchen with no dining area, taking orders through food apps and direct WhatsApp orders. Low rent, high app commission.
Investment
₹5.9 lakh
Profit*
₹32,000/mo
Space
300 sq ft
Sources
- Aajjo: small rotary rack oven listing
- TradeIndia: rotary rack oven listings
- TradeIndia: spiral mixer listings
- IndiaMART: bread slicer listings
- FSSAI FoSCoS (registration and licensing)
Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.