HowIndiaEarns

Business ideaFood processing

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.

₹5–10 lakhPrices not yet confirmed with suppliers

Investment

₹7.8 lakh

Profit a month*

₹42,000

Space
800 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 namkeen unit makes fried snacks such as sev, gathiya, bhujia, chivda and mixture. Besan dough is pressed through an extruder into hot oil, fried, drained, seasoned and packed. A small unit runs with one experienced karigar and a few helpers. People buy namkeen every week, and local taste matters, so a small maker with a good recipe can hold its own area. Money is made on daily volume sold fresh to shops, sweet marts and caterers. The hard parts are edible-oil and besan price swings, keeping the taste the same every batch, and short shelf life: stale or rancid stock comes back from shops.

Skills needed: A good karigar (snack maker) matters more than the machines. You need hygiene discipline, control over frying oil, and the ability to sell to shops.

Profit calculator

Change the numbers to match your town

110 kg/day: Mixed namkeen, packed (sev, gathiya, mixture)

Add-ons

Total investment

₹7.75 lakh

Your own money

₹77,516

Subsidy

—

Bank loan

₹6.98 lakh

Mudra Tarun

A typical month in year 2

Sales₹4,67,500
Raw material & packing−₹3,27,250
Electricity−₹4,795
Salaries−₹63,000
Rent−₹15,750
Other running costs−₹14,700
Operating profit₹42,005
Loan instalment (EMI)−₹16,266
You keep each month₹25,739

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 42% capacityDSCR 3.58 (banks like ≥1.5)Payback ≈ 2.2 years

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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.

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Investment breakdown

Machinery & equipmentPrice
Sev / gathiya extruderSemi-automatic, about 40–100 kg/hr₹65,000₹19,000–₹1.5 lakh
Frying kadai with burner (bhatti) × 2Manual batch frying; a circular batch fryer costs ₹4 lakh and up₹60,000
Dough kneader10–20 kg batch₹45,000₹30,000–₹70,000
Oil extractor (hydro dryer)Spins excess oil out; improves shelf life₹40,000
Masala coating / mixing drum₹21,500₹19,000–₹40,000
Band sealer₹18,000₹12,000–₹30,000
Weighing scales (platform + table)₹9,000₹6,000–₹15,000
Stainless-steel tables, trays and crates₹40,000
Exhaust fans and chimney₹25,000
Nitrogen-flush pouch packing machineadd-onLonger shelf life for wider distribution₹2,50,000
Machinery & equipment (without add-ons)₹3,23,500
FSSAI, Udyam and other registrations₹5,000
Pouch design and printing cylinders₹20,000
Gas line, electricity connection and wiring₹20,000
Trial batches and samples₹15,000
Working capital 12 days of raw material, 15 days of credit to buyers, 1 month of expenses₹3,91,655
Total project cost₹7,75,155

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

Mixed namkeen, packed (sev, gathiya, mixture) (per kg)₹
Besan, dals, poha and peanuts (0.62 kg at about ₹90/kg)56.00
Frying oil absorbed and discarded (0.30 litre at ₹130)39.00
Salt, spices and seasoning8.00
Pouches and cartons10.00
LPG or diesel for frying6.00
Material cost119.00
Selling price170.00
Margin before running costs51.00 (30%)

Price is the wholesale rate to shops for local-brand namkeen in 200 g–1 kg packs. Loose sales from your own counter fetch more.

Space, power and staff

800 sq ft

Rented shed · rent ≈ ₹15,000/month

Small-town or city-outskirts rent. Frying needs good ventilation; keep packing in a separate cool, dry room.

5 kW, single-phase

Bill ≈ ₹7,000/month at full capacity

5 staff + you

  • 1 × Karigar (snack maker): ₹18,000
  • 3 × Frying 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

GST on packed namkeen was changed in the 2025 rate revision. Confirm the current rate for HSN 2106 90 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

Local body trade licence and fire safety

if applicable

When: Before starting frying operations · Cost: Varies by municipality

Commercial LPG use and frying may need a fire NOC. Ask your municipal office.

How it works

  1. Sieve besan and mix with salt, spices, oil and water into dough.
  2. Press the dough through the extruder die directly into hot oil.
  3. Fry to the right colour, lift out and drain; spin in the oil extractor.
  4. Season in the mixing drum; blend with fried peanuts, dal or poha for mixtures.
  5. Cool fully, then weigh, pack and seal.
  6. Deliver fresh stock to shops and take back old packs.

Loan route

Mudra loan (Tarun)

Own money ₹77,516 · Loan ₹6.98 lakh · EMI ≈ ₹16,266

No collateral, no subsidy.

How Mudra works

PMEGP (new units)

Subsidy ₹1.16 lakh (general, urban) to ₹2.71 lakh (special category, rural). EMI ≈ ₹13,555–₹10,844.

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 shops and tea stalls
  • Sweet marts and bakeries
  • Caterers and canteens
  • Your own retail counter
  • Wholesalers in nearby towns

Ways to sell

  • Daily or weekly van or two-wheeler delivery to shops
  • A retail counter at the unit
  • Bulk loose supply to caterers
  • Festival gift packs

Season: Sells all year. Peaks at Diwali and other festivals and in the monsoon; a little slower in peak summer.

Competition: Large brands in ₹5 and ₹10 packs, and many local farsan shops. Small units compete on freshness, local taste and bigger pack sizes.

Risks and how to handle them

Edible oil or besan prices rise sharply

Review prices with shops every month, and keep pack weights flexible rather than fixing them for a year.

Namkeen turns rancid or soft before it sells

Do not over-reuse frying oil, remove excess oil, pack only when cool, and supply shops in small, frequent lots.

The karigar leaves and the taste changes

Write every recipe down by weight and train a second person on each product.

Burns or fire from hot oil and LPG

Keep extinguishers and a fire blanket, fix gas lines properly and never leave hot oil unattended.

Tips from the trade

  • Three or four fast sellers done well beat twenty varieties.
  • A small retail counter at the unit gives cash sales at a better price than wholesale.
  • Print the packing date clearly; shops trust a brand that takes back old stock.

Real examples

Haldiram's

Started as a small bhujia shop in Bikaner in 1937 and became India's largest namkeen brand.

Source

Questions people ask

How long does packed namkeen stay fresh?+

Usually one to three months in ordinary pouches, depending on the oil, how well it was drained and the pouch quality. Nitrogen-flushed packs last longer. Test your own product before printing a best-before date.

Is a fully automatic fryer needed to start?+

No. Most small units start with kadai frying and one extruder. A batch or continuous fryer saves oil and labour but costs several lakh, so add it when daily volume is steady.

How much investment is needed to start a namkeen (farsan) making business?+

About ₹7.75 lakh for a small unit: ₹3.23 lakh for machinery and equipment, ₹60,000 for set-up costs and ₹3.92 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.

How much profit can a namkeen (farsan) making business make per month?+

At 55% of capacity, sales are about ₹4.67 lakh a month and operating profit about ₹42,005 before the loan instalment. After an EMI of about ₹16,266, the owner keeps about ₹25,739 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.

Which machines are needed for namkeen (farsan) making?+

Sev / gathiya extruder (₹19,000–₹1.5 lakh); Frying kadai with burner (bhatti) (about ₹30,000); Dough kneader (₹30,000–₹70,000); Oil extractor (hydro dryer) (about ₹40,000); Masala coating / mixing drum (₹19,000–₹40,000); Band sealer (₹12,000–₹30,000).

Can I get a Mudra loan or PMEGP subsidy for namkeen (farsan) making?+

With a project cost of about ₹7.75 lakh, the bank loan of about ₹6.98 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 ₹2.71 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 namkeen (farsan) making?+

Mandatory: FSSAI registration / licence. Depending on your set-up you may also need: Udyam registration, GST registration, Legal Metrology packer registration, Local body trade licence and fire safety.

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.