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 a month*
₹25,000
- 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 papad unit turns urad dal flour, salt, papad khar and spices into dried, packed papad. Small units run from a home or a 500–700 sq ft shed with a dough kneader, a semi-automatic sheeting and cutting machine, drying trays and a pouch sealer. The work is simple to learn, it suits women's groups and family businesses, and demand never stops because papad is eaten across India in every season. Profit per kilo is modest, so the business is won on steady sales to shops, wholesalers and caterers, consistent taste and good drying. The hard parts are drying in the monsoon and getting shelf space against big brands.
Skills needed: No formal qualification. You need a consistent recipe, basic hygiene and the ability to sell to shops and wholesalers. Training is available at KVIC and state food-processing institutes.
Profit calculator
Change the numbers to match your town60 kg/day: Urad dal papad (packed)
Total investment
₹6.1 lakh
Your own money
₹60,950
Subsidy
—
Bank loan
₹5.49 lakh
Mudra Tarun
A typical month in year 2
| Sales | ₹3,00,000 |
| Raw material & packing | −₹2,06,250 |
| Electricity | −₹4,320 |
| Salaries | −₹44,100 |
| Rent | −₹10,500 |
| Other running costs | −₹9,450 |
| Operating profit | ₹25,380 |
| Loan instalment (EMI) | −₹12,790 |
| You keep each month | ₹12,590 |
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 |
|---|---|
| Semi-automatic papad sheeting & cutting machine8–12 kg/hr, 1–2 HP, single phase | ₹1,20,000₹65,000–₹2 lakh |
| Dough kneader (atta mixer)10–20 kg batch, 1–2 HP | ₹45,000₹30,000–₹70,000 |
| Drying trays, racks and nets | ₹25,000₹15,000–₹40,000 |
| Band sealer (continuous pouch sealing) | ₹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, utensils, racks | ₹15,000 |
| Electric tray dryer (for monsoon)add-on24–48 tray, 6–9 kW | ₹1,50,000₹90,000–₹2.5 lakh |
| Machinery & equipment (without add-ons) | ₹2,52,000 |
| FSSAI, Udyam and other registrations | ₹3,000 |
| Label and pouch design, printing plates | ₹15,000 |
| Electricity connection and wiring | ₹12,000 |
| Trial production and samples | ₹10,000 |
| Working capital 15 days of raw material, 20 days of credit to buyers, 1 month of expenses | ₹3,17,504 |
| Total project cost | ₹6,09,504 |
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
| Urad dal papad (packed) (per kg) | ₹ |
|---|---|
| Urad dal flour (0.85 kg at ₹130/kg) | 110.50 |
| Salt, papad khar, black pepper, jeera, hing | 12.00 |
| Oil for rolling | 5.00 |
| Pouches, labels and cartons | 10.00 |
| Material cost | 137.50 |
| Selling price | 200.00 |
| Margin before running costs | 62.50 (31%) |
Price is the wholesale rate to distributors and shops for unbranded or local-brand papad; retail is usually 40–70% higher.
Space, power and staff
600 sq ft
Rented shed · rent ≈ ₹10,000/month
About 200 sq ft for production and 400 sq ft (or a terrace) for drying. A home unit can start in 300 sq ft plus terrace.
4 kW, single-phase
Bill ≈ ₹6,000/month at full capacity
4 staff + you
- 3 × Production helpers (rolling, drying, packing): ₹10,000
- 1 × Sales and delivery: ₹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
Needed for Mudra/PMEGP benefits and MSME schemes. Apply only on udyamregistration.gov.in.
GST registration
if applicableWhen: If you also sell taxable products or a buyer insists · Cost: Free
Papad is nil-rated under GST, so a unit selling only papad usually doesn't need to register. Check with a CA if you add other snacks.
Shop and Establishment registration (Gumasta)
if applicableWhen: When you rent a shed or shop · Cost: Small fee; varies by state
In Maharashtra, small units file an intimation online.
Legal Metrology packer registration
if applicableWhen: Before selling pre-packed papad with MRP · Cost: Varies by state
Labels must show net weight, MRP, manufacturer address, date and FSSAI number.
How it works
- Mix urad dal flour with salt, papad khar and spices.
- Knead into a stiff dough in the kneader (10–15 minutes per batch).
- Press the dough into thin sheets and cut rounds on the papad machine.
- Dry on trays in sun or a dryer until moisture is low (otherwise papad gets fungus).
- Sort, weigh and pack in pouches; seal, label and pack into cartons.
Loan route
Mudra loan (Tarun)
Own money ₹60,950 · Loan ₹5.49 lakh · EMI ≈ ₹12,790
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹91,426 (general, urban) to ₹2.13 lakh (special category, rural). EMI ≈ ₹10,658–₹8,527.
Own money 5–10%. 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 and general stores
- Wholesalers and distributors
- Caterers, hotels and dhabas
- Supermarkets (after you have a brand)
- Online buyers via marketplaces
Ways to sell
- Visit shops directly with samples
- Appoint a local distributor on margin
- WhatsApp catalogue for repeat orders
- Exhibitions and mahila bachat gat fairs
Season: Steady all year. Demand rises during weddings and festivals. Production is hardest in the monsoon because drying slows down.
Competition: Strong national brands in supermarkets, and many small local makers. Small units win on taste, freshness, local flavours and credit to shops.
Risks and how to handle them
Drying fails in monsoon and papad gets fungus
Keep a dryer or a covered drying room; stock up before June.
Urad dal price rises sharply
Buy flour in bulk when prices dip; revise wholesale prices with shops every quarter.
Shops delay payment
Give fixed credit days, collect on the next delivery, and favour cash-paying wholesalers.
Inconsistent taste and thickness
Write the recipe down by weight and check sample papad every batch.
Tips from the trade
- Start with 2–3 flavours that sell locally (plain, black pepper, garlic or jeera) before adding more.
- A good label with FSSAI number and MRP makes shops trust a new brand.
- Women's self-help groups often get faster loans and training support for papad units.
Real examples
Shri Mahila Griha Udyog Lijjat Papad
Started in 1959 in Mumbai by seven women with a borrowed ₹80, it grew into a large cooperative making papad across India.
SourceQuestions people ask
Can I start a papad business from home?+
Yes. Many papad units start at home with a small kneader and a hand or semi-automatic machine, drying on the terrace. You still need FSSAI registration before selling, and a proper drying set-up helps keep quality steady.
Do I need GST registration for papad?+
Papad is nil-rated under GST, so a unit selling only papad usually doesn't need to register. If you also sell other snacks that are taxed, check with a CA.
How much investment is needed to start a papad making business?+
About ₹6.1 lakh for a small unit: ₹2.52 lakh for machinery and equipment, ₹40,000 for set-up costs and ₹3.18 lakh as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a papad making business make per month?+
At 60% of capacity, sales are about ₹3 lakh a month and operating profit about ₹25,380 before the loan instalment. After an EMI of about ₹12,790, the owner keeps about ₹12,590 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Which machines are needed for papad making?+
Semi-automatic papad sheeting & cutting machine (₹65,000–₹2 lakh); Dough kneader (atta mixer) (₹30,000–₹70,000); Band sealer (continuous pouch sealing) (₹12,000–₹30,000).
Can I get a Mudra loan or PMEGP subsidy for papad making?+
With a project cost of about ₹6.1 lakh, the bank loan of about ₹5.49 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 ₹2.13 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 papad making?+
Mandatory: FSSAI registration / licence. Depending on your set-up you may also need: Udyam registration, GST registration, Shop and Establishment registration (Gumasta), Legal Metrology packer registration.
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Sources
- IndiaMART: automatic papad making machine prices
- 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.