Skip to content

How to Start Chilly Powder Manufacturing Business

Do you want to start a chilly powder manufacturing business? Find here a stepwise guide on the steps to be taken to run a small-scale chilly processing unit.

Chilly processing projects can be initiated on a small-scale basis with a setup of some simple machinery. Chilies are the dried ripe fruits of genus capsicum. These spices are also called red peppers of capsicums and constitute an important, well-known commercial crop used both as a condiment / culinary supplement and as a vegetable.

There is no doubt that India has immense potential to grow chilies. The world demand for Indian chilies is also going up, India exports chilies to the USA, UK, Saudi Arabia, Singapore, Sri Lanka, and other Asian countries.

Read: How To Start A Spice Manufacturing Business

Chilly is grown in almost all-state in India. Andhra Pradesh has the highest area under crop cultivation and produces the maximum followed by Karnataka, Maharashtra, Punjab, Rajasthan, West Bengal, and a few other states. There is a good scope for a chili powder unit. Any new entrepreneur can well venture into this field.

Is Chilly Processing Unit Profitable?

The domestic market for chilly processing is growing at a fast rate. A major quantity of production of chilly powder originates either in the home scale or cottage level units and is distributed all over the country. It is estimated that there are about 1500 such units in the country.

Read: How to Start a Chilli Farming Business

According to available information, there are about 20-25 large companies producing packed spices that are also engaged in exports. There are very few companies that have attained a national market for their products. In the majority of the units, 50% of the product mix is contributed by coriander, turmeric, and chilly powder.

Chilly Powder Processing Process

The processing of chilly powder is simple. Find below a basic process guide:

1. The material enters the crushing room from a hopper and is cut into powder by the high-speed blades.
2. Standard-size spice powder passes through the screener and goes to cyclone separator by air blower and pipe.
3. At the cyclone separator, the dust is collected and spice powder is discharged.

Chilly Powder Processing Flow Chart

The chilly powder processing flowchart is mentioned below:

Receiving raw material → Removing stone → Dry Washing → Seed separation → Drying → Crushing → Hold-up through vessel → Grinding → Screening & Classification → Removing iron → packaging

Chilly Powder Processing Project Cost:

Plant capacity: 550 Kgs/DayPlant & machinery: Rupees 2 Lakhs
Working capital: Rs. 27 LakhsT.C.I: Rupees 43 Lakhs
Return: 34.89%Break-even: 56.74%

This is a sample estimated project report cost. However, the actual cost of a chilly powder manufacturing project may deviate from a change of any of the assumptions.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.