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Business ideaFood processing

Masala (Spice Powder) Making Business

मसाला बनाने का व्यवसाय · मसाला उद्योग

Clean, grind and pack turmeric, chilli, coriander and blended masala with a pulverizer, and sell to kirana shops, hotels and caterers.

₹5–10 lakhPrices not yet confirmed with suppliers

Investment

₹7.7 lakh

Profit a month*

₹54,000

Space
600 sq ft
Staff
4 + you

*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.

A masala unit buys whole spices from a mandi or wholesaler, cleans and dries them, grinds them in a pulverizer, sieves the powder and packs it in pouches. Most small units sell three basics (turmeric, red chilli, coriander) plus a few blends such as garam masala. Every kitchen buys these, so demand is steady, but the margin per kilo is thin because the raw spice is most of the cost. Money is made on volume, on buying well in season, and on repeat orders from shops, hotels and caterers. The hard parts are raw-material price swings, the cash tied up in stock and shop credit, and competing with trusted brands on purity.

Skills needed: No formal qualification. You need to judge spice quality when buying, keep the grinding room clean and dry, and sell to shops. Short courses are run by state food-processing institutes and KVKs.

Profit calculator

Change the numbers to match your town

83 kg/day: Ground spices, packed (turmeric, chilli, coriander mix)

Add-ons

Total investment

₹7.68 lakh

Your own money

₹76,768

Subsidy

—

Bank loan

₹6.91 lakh

Mudra Tarun

A typical month in year 2

Sales₹5,15,625
Raw material & packing−₹3,84,656
Electricity−₹8,220
Salaries−₹46,200
Rent−₹10,500
Other running costs−₹11,550
Operating profit₹54,499
Loan instalment (EMI)−₹16,109
You keep each month₹38,389

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.

Break-even at 35% capacityDSCR 4.44 (banks like ≥1.5)Payback ≈ 1.7 years

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Investment breakdown

Machinery & equipmentPrice
Masala pulverizer5 HP, blower type, about 40–80 kg/hr depending on the spice₹55,000₹40,000–₹75,000
Second pulverizer for chilli (keeps colours separate)3 HP₹35,000₹18,000–₹50,000
Spice roasterGas fired, for blends and for drying damp spices₹40,000
Ribbon mixer for blends50–100 kg batch₹45,000₹21,500–₹85,000
Vibro sieve₹25,000
Band sealer₹18,000₹12,000–₹30,000
Weighing scales (platform + table)₹9,000₹6,000–₹15,000
Stainless-steel work tables × 2₹20,000₹7,000–₹15,000
Storage bins, pallets and racks₹20,000
Automatic pouch packing (FFS) machineadd-onFor 50 g–500 g pouches; add once daily volume justifies it₹1,80,000
Machinery & equipment (without add-ons)₹2,67,000
FSSAI, Udyam and other registrations₹5,000
Label and pouch design, printing cylinders₹20,000
Three-phase connection and wiring₹25,000
Trial production and samples₹10,000
Working capital 15 days of raw material, 15 days of credit to buyers, 1 month of expenses₹4,40,677
Total project cost₹7,67,677

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

Ground spices, packed (turmeric, chilli, coriander mix) (per kg)₹
Whole spices (1.05 kg at a blended ₹170/kg, incl. cleaning and grinding loss)178.50
Printed pouches and cartons8.00
Material cost186.50
Selling price250.00
Margin before running costs63.50 (25%)

Price is a blended wholesale rate to shops and distributors across the three basic powders. Chilli and turmeric prices move a lot through the year; enter your own mandi rates in the calculator.

Space, power and staff

600 sq ft

Rented shed · rent ≈ ₹10,000/month

Small-town or city-outskirts rent. Keep grinding, packing and raw-material storage in separate, dry areas.

9 kW, three-phase

Bill ≈ ₹12,000/month at full capacity

4 staff + you

  • 1 × Machine operator: ₹12,000
  • 2 × Cleaning and packing helpers: ₹10,000
  • 1 × Sales and delivery: ₹12,000

Licences and registrations

FSSAI registration / licence

mandatory

When: 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

recommended

When: Before applying for a loan · Cost: Free

Apply only on udyamregistration.gov.in.

GST registration

if applicable

When: When turnover crosses the registration limit, or a buyer insists · Cost: Free

Packed and labelled spice powders are generally taxed at 5%. Confirm the rate for your HSN code (chapter 09) and the registration limit with a CA.

Legal Metrology packer registration

if applicable

When: Before selling pre-packed pouches with MRP · Cost: Varies by state

Labels must show net weight, MRP, manufacturer address, date and FSSAI number.

AGMARK grading

recommended

When: When supplying institutions or building a brand · Cost: Varies

Voluntary for most sales; some government and institutional buyers ask for it.

Shop and Establishment registration

if applicable

When: When you rent a shed or hire staff · Cost: Small fee; varies by state

How it works

  1. Buy whole spices; check moisture, colour and stalks or stones.
  2. Clean and sun-dry or roast to bring moisture down.
  3. Grind in the pulverizer, one spice at a time.
  4. Sieve, and mix blends in the ribbon mixer by a written recipe.
  5. Cool the powder, then weigh, pack, seal and label.
  6. Store in a dry room and dispatch oldest stock first.

Loan route

Mudra loan (Tarun)

Own money ₹76,768 · Loan ₹6.91 lakh · EMI ≈ ₹16,109

No collateral, no subsidy.

How Mudra works

PMEGP (new units)

Subsidy ₹1.15 lakh (general, urban) to ₹2.69 lakh (special category, rural). EMI ≈ ₹13,424–₹10,740.

Own money 5–10%. Subsidy is held as a 3-year deposit, then adjusted against the loan.

How PMEGP works

Assumes 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 and general stores
  • Hotels, dhabas and caterers
  • Wholesalers in the local mandi
  • Housing societies and direct customers
  • Online marketplaces

Ways to sell

  • Shop-to-shop sales with small trial packs
  • Loose bulk supply to hotels and caterers
  • A local distributor on margin
  • WhatsApp orders and weekly bazaars

Season: Sales are steady, with a rise before festivals and the wedding season. Buying is seasonal: chilli and turmeric are cheapest soon after harvest (roughly February to May).

Competition: National brands dominate small packs. Local units win with bulk packs for hotels, regional blends, fresher grinding and credit to shops.

Risks and how to handle them

Chilli or turmeric prices jump after you have fixed prices with shops

Buy part of the year's need in season, and revise price lists monthly rather than yearly.

A failed FSSAI sample (added colour, high moisture, pesticide residue)

Buy from known traders, never add colour, keep purchase bills and test a sample at an NABL lab once or twice a year.

Powder absorbs moisture and cakes or grows fungus in the monsoon

Dry properly before grinding, cool before packing and use good laminated pouches.

Money stuck in shop credit and stock

Keep fixed credit days, start with cash-paying hotels and caterers, and avoid over-stocking slow blends.

Tips from the trade

  • Start with three basics and one or two local blends; add more only when shops ask.
  • Bulk 1 kg and 5 kg packs for hotels move faster than small retail pouches for a new brand.
  • Grind chilli on a separate machine or clean thoroughly; colour carry-over spoils turmeric and coriander.

Real examples

MDH (Mahashian Di Hatti)

Began as a small spice shop and grew into one of India's largest packed-spice companies.

Source

Questions people ask

Can I do only job-work grinding instead of selling my own brand?+

Yes. Many small units grind customers' spices for a per-kilo charge. It needs far less working capital because you do not buy the spices, but income depends on walk-in customers in your area.

Which spices should a new unit start with?+

Turmeric, red chilli and coriander powder sell in every shop. Add garam masala or a regional blend once you have regular buyers.

How much investment is needed to start a masala (spice powder) making business?+

About ₹7.68 lakh for a small unit: ₹2.67 lakh for machinery and equipment, ₹60,000 for set-up costs and ₹4.41 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.

How much profit can a masala (spice powder) making business make per month?+

At 55% of capacity, sales are about ₹5.16 lakh a month and operating profit about ₹54,499 before the loan instalment. After an EMI of about ₹16,109, the owner keeps about ₹38,389 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.

Which machines are needed for masala (spice powder) making?+

Masala pulverizer (₹40,000–₹75,000); Second pulverizer for chilli (keeps colours separate) (₹18,000–₹50,000); Spice roaster (about ₹40,000); Ribbon mixer for blends (₹21,500–₹85,000); Vibro sieve (about ₹25,000); Band sealer (₹12,000–₹30,000).

Can I get a Mudra loan or PMEGP subsidy for masala (spice powder) making?+

With a project cost of about ₹7.68 lakh, the bank loan of about ₹6.91 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 ₹2.69 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 masala (spice powder) making?+

Mandatory: FSSAI registration / licence. Depending on your set-up you may also need: Udyam registration, GST registration, Legal Metrology packer registration, AGMARK grading, Shop and Establishment registration.

Similar businesses

Sources

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.