Kirana Store Business
किराना दुकान व्यवसाय · किराणा दुकान व्यवसाय
Run a neighbourhood grocery shop selling staples, packaged food, dairy and household goods. Steady daily sales, thin margins, long hours.
Investment
₹5.4 lakh
Profit a month*
₹25,000
- Space
- 250 sq ft
- Staff
- Just you
*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.
A kirana store buys groceries, packaged foods, snacks, dairy, soaps and household items from wholesalers and distributors and sells them to families nearby. It needs a shop in or near a residential area, racks, a counter, a fridge and opening stock. It suits a family that can keep the shop open from early morning to late evening, since the owner's own time at the counter is what keeps costs down. The numbers here assume the family runs the shop with no paid helper. People buy groceries every day, so sales are steady, but the gross margin is small: roughly 5–8% on staples and 10–20% on packaged and personal-care goods. The hard parts are thin margins, credit (udhaar) to customers, expiry and pilferage, and competition from supermarkets and quick-delivery apps.
Skills needed: Buying at the right price, stock rotation, simple accounts, and knowing your customers by name.
Profit calculator
Change the numbers to match your town130 ₹100 of sales/day: Shop sales (per ₹100 sold)
Total investment
₹5.45 lakh
Your own money
₹54,454
Subsidy
—
Bank loan
₹4.9 lakh
Mudra Kishore
A typical month in year 2
| Sales | ₹3,90,000 |
| Raw material & packing | −₹3,47,100 |
| Electricity | −₹3,020 |
| Salaries | ₹0 |
| Rent | −₹10,500 |
| Other running costs | −₹4,200 |
| Operating profit | ₹25,180 |
| Loan instalment (EMI) | −₹11,427 |
| You keep each month | ₹13,753 |
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 |
|---|---|
| Racks, counter and storage bins | ₹90,000 |
| Refrigerator / visi coolerCold-drink companies sometimes provide coolers against a sales commitment | ₹35,000 |
| Deep freezer | ₹25,000₹15,000–₹25,000 |
| Electronic weighing scales × 2 | ₹9,000 |
| Billing computer or POS with printer and scanner | ₹35,000 |
| Signboard, lighting and shutter work | ₹30,000 |
| Inverter and battery | ₹20,000 |
| Used two-wheeler for home deliveryadd-on | ₹45,000 |
| Machinery & equipment (without add-ons) | ₹2,44,000 |
| Rent deposit | ₹30,000 |
| FSSAI, Shop Act and other registrations | ₹4,000 |
| Electrical work and opening expenses | ₹10,000 |
| Working capital 20 days of raw material, 4 days of credit to buyers, 1 month of expenses | ₹2,56,540 |
| Total project cost | ₹5,44,540 |
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
| Shop sales (per ₹100 sold) (per ₹100 of sales) | ₹ |
|---|---|
| Purchase cost of goods (blended gross margin about 12%) | 88.00 |
| Carry bags, wastage and expiry | 1.00 |
| Material cost | 89.00 |
| Selling price | 100.00 |
| Margin before running costs | 11.00 (11%) |
Capacity is ₹20,000 of sales a day when the shop is established. Your margin depends on the mix: more staples means lower, more packaged, loose and personal-care items means higher.
Space, power and staff
250 sq ft
Rented shop · rent ≈ ₹10,000/month
Small-town rent in a residential market. A shop in your own house saves the rent; set it to zero in the calculator.
2 kW, single-phase
Bill ≈ ₹4,000/month at full capacity
You alone
Licences and registrations
FSSAI registration / licence
mandatoryWhen: Before you sell food items · Cost: ₹100/yr for basic registration; state licence ₹2,000–5,000/yr above the turnover limit
Retailers of food need it too. Check the current turnover limit for basic registration on foscos.fssai.gov.in.
Shop and Establishment registration
mandatoryWhen: Within the period your state sets after opening · Cost: Small fee; varies by state
GST registration
if applicableWhen: When turnover crosses the registration limit for goods · Cost: Free
A shop at the sales level assumed here may cross the limit. Ask a CA about the limit and the composition scheme for small traders.
Legal Metrology stamping of weighing scales
mandatoryWhen: Before use and at each re-verification · Cost: Small fee; varies by state
Udyam registration
recommendedWhen: Before applying for a loan · Cost: Free
Retail and wholesale traders can register. Apply only on udyamregistration.gov.in.
Separate licences for restricted items
if applicableWhen: Before selling tobacco, medicines or similar regulated goods · Cost: Varies
Medicines need a drug licence; do not stock them without one.
How it works
- Buy from wholesalers, distributors and the mandi; compare rates.
- Check MRP, expiry and weight; arrange fast-moving goods within reach.
- Sell, bill and record credit sales the same day.
- Reorder by what actually sells; clear near-expiry stock early.
- Tally cash and stock regularly.
Loan route
Mudra loan (Kishore)
Own money ₹54,454 · Loan ₹4.9 lakh · EMI ≈ ₹11,427
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹81,681 (general, urban) to ₹1.91 lakh (special category, rural). EMI ≈ ₹9,522–₹7,618.
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
- Households within walking distance
- Tea stalls, small eateries and tiffin makers
- Monthly-ration customers
- Offices and small institutions nearby
Ways to sell
- Walk-in sales
- Phone and WhatsApp orders with home delivery
- Monthly grocery lists
- ONDC-linked seller apps and wholesale apps for buying
Season: Steady, with clear peaks before festivals and at the start of the month after salaries.
Competition: Other kirana shops, supermarkets, and quick-commerce apps in cities. Small shops hold customers with nearness, credit, loose quantities and home delivery.
Risks and how to handle them
Credit to customers is not repaid
Limit credit to known families, set a ceiling for each and collect at month start.
Stock expires, is damaged or is stolen
Buy small and often, rotate stock, and count high-value items weekly.
Margins squeezed by supermarkets and apps
Add higher-margin lines (loose staples, snacks, dairy, stationery, personal care) and services such as delivery and bill payment.
Too much money locked in slow stock
Start with a narrow range that sells daily and add items only when customers ask twice.
Tips from the trade
- The location and the number of homes within 300 metres decide the sales ceiling.
- Distributor schemes and cash discounts are a real part of a kirana's profit; track them.
- A simple billing app shows which items make money and which only fill shelves.
Questions people ask
What margin does a kirana store earn?+
Published guides put the blended gross margin at roughly 8–15% of sales: about 5–8% on staples and 10–20% on packaged, beverage and personal-care items. Rent, staff, wastage and unpaid credit come out of that.
Is a kirana store still viable with supermarkets and delivery apps?+
In small towns and residential lanes, yes, if the shop is close to homes and the family runs it. In big-city areas served by quick-delivery apps it is harder, and the shop needs delivery, credit and a wider range to compete.
How much investment is needed to start a kirana store business?+
About ₹5.45 lakh for a small unit: ₹2.44 lakh for machinery and equipment, ₹44,000 for set-up costs and ₹2.57 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a kirana store business make per month?+
At 65% of capacity, sales are about ₹3.9 lakh a month and operating profit about ₹25,180 before the loan instalment. After an EMI of about ₹11,427, the owner keeps about ₹13,753 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Can I get a Mudra loan or PMEGP subsidy for kirana store?+
With a project cost of about ₹5.45 lakh, the bank loan of about ₹4.9 lakh falls under Mudra Kishore. 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 ₹1.91 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 kirana store?+
Mandatory: FSSAI registration / licence, Shop and Establishment registration, Legal Metrology stamping of weighing scales. Depending on your set-up you may also need: GST registration, Udyam registration, Separate licences for restricted items.
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Sources
- IIFL: kirana store business plan (setup, cost, registration)
- Accountune: kirana store profit margin in India, category-wise (2026)
- FSSAI FoSCoS (registration and licensing)
- Udyam Registration
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.