Papad is a thin wafer-like very tasty and popular food product. Any individual can initiate a papad manufacturing business on a small-scale, home-based basis or on a large scale. It sometimes described as a cracker or flatbread. The other popular names are Papadum and Papar.
Papad is a traditional food. Also, it is a good appetizer, carminative and digestive. Basically, papad comes with different tastes and flavors. People consume papad either as roasted or as fried. Apart from household consumption, hotels, restaurants are the bulk consumers of this product.
Papad can be cooked by deep-frying, roasting over an open flame, toasting, or microwaving, depending on the desired texture. Papad making is considered a very lucrative and profitable food manufacturing opportunity, considering the low-cost capital investment.
Is Papad Manufacturing Business Profitable?
Demand for different varieties of papad is increasing steadily. The demand is steady throughout the year and it generally hikes 10-155% during the festive season.
In the Indian context, there is some national brand, but the market is predominantly controlled by local manufacturers. In initiating papad making business, it is advisable to make prior market research about the preferred tastes of local consumers.
7 Steps to Start Papad Making Manufacturing Business
Here are the basic steps to start a papad manufacturing company:
1. Decide the Type of Papad to Manufacture
In papad, the major component is pulse flour. So you can produce different types of papad by using different dals. So of the most popular are Moong papad, Arhar papad, Udad papad, Chana papad, mix papad, masala papad etc.
Additionally, taste-wise you can also prepare different types of papad. These are Pudina papad, Garlic Papad, Kothimbir Papad, Green Chilli Papad, Palak Papad, Jeera Papad and Red Chilli Papad.
2. Register your Business
Register your business with ROC according to your firm’s ownership pattern. For a small-scale unit, it is advisable to register as a proprietorship or partnership company. You may also register your unit as SSI.
3. Apply for Licenses
Papad is a processed food item. It also comes under the FMCG segment. Therefore, you must obtain the necessary registrations and licenses for this business. And it mostly depends on the location where you are establishing the unit.
In India, you will need to obtain an FSSAI license. You must comply with the PFA Act. Also, you will need to follow the BIS standard. You can register your business under Udyog Aadhaar. Additionally, check the tax liabilities for this business.
GST Registration is a must to start a manufacturing business at present. Compliance with PFA Act is mandatory for papad making. Quality standards as specified by BIS are available to vide IS 2639:1984
4. Cost of Starting Papad Making Business
The cost of starting a papad manufacturing business will depend on the scale of operation and production output. However, one can launch a papad company on small scale with an investment of Rs 10 Lacs with a semi-automatic machine.
5. Arrange Funds
Alike any manufacturing business two types of funding are required in starting papad making business. The fixed capital can be procured as a term loan. In addition, working capital can be raised via cash credit or an overdraft facility.
Apply for a business credit card for short-term low funds requirement.
With a detailed project report with financial calculation, you can apply to a bank or to any financial institutions like microfinance or cooperatives. You can also approach any angel investor to arrange the startup capital.
6. Machinery & Raw Materials For Papad Making
Papad-making manufacturing units can be established in three ways, such as manual, semi-automatic, and automatic. CFTRI, Mysore, has successfully developed the papad press.
Various different types of pedal-operated papad press machines are available. To get a small quantity of output you can use this type of machine.
Semi-Automatic Papad Making Unit
You can establish a semi-automatic papad-making unit also to get more production output than a manual system. In this case, you will need to have an electric grinding machine, mixing machine, electric papad press machine, drying machine with trolley, water storage tank, weighing scale, pouch sealing machine, and some laboratory equipment.
Fully Automatic Papad Making Unit
To get large-scale production output, you can establish a fully automatic papad-making machine. Generally, these machines are useful for large industries.
These machines are effective for churning out large volumes of papad at one go. This type of machine looks upon the entire process from the mixing of ingredients to the collection of ready-to-deliver Papad. These machines being durable, sturdy, and high performing.
The major raw materials are pulses and rice flour. Additionally, you will need to procure salt and peanut oils. These are essential items for dough making. In addition, you have to procure different spices for flavoring purposes.
The list includes chili, cumin, garlic, or black pepper. Also, you can use baking soda and preservatives sometimes. According to the desired taste, you can use several different ingredients like moong dal, urad dal, etc. The shelf life of papad is generally three months. A moisture-proof packaging is important.
Some popular variety of papad is masala papad, Punjabi masala papad, Bikaner masala papad, Aam papad, moong special papad, shrimp papad, etc. According to the desired taste and quality, you will need to select the right recipe.
7. Papad Making Manufacturing Process
First of all, you can produce papad from different varieties of pulses. Additionally, you can also go for a combination of pulses as well.
Firstly, you will need to add an adequate quantity of water with flour of pulses. Then, mix common salt, spices, and sodium bicarbonate homogeneously to obtain a dough. After about 30 minutes, prepare small balls weighing around 7-8 grams of dough.
Then place these balls in papad making machine or papad press. Here you can produce circular papads as per the size of the mold. The next step is drying. You can go for sun drying. However, the drying machine is the best option for commercial papad-making projects.
Finally, you have to pack the papads. You can pack a lot of 25 or 50 papads in polyethylene bags. In an automatic papad-making machine, as we discussed earlier, you can perform the entire process with a single machine with minimum labor inputs.
Footnote: The other two crucial factors to build a successful papad company are the recipe and marketing. Generally, the recipe is the first most important aspect. You must produce delicious and tasty papad as per the taste of your target demographics. Additionally, proper distribution and sales promotion are a must for a small-scale papad manufacturing unit.
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Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.