§1What this business is
Mature but unripe bananas are washed, peeled after a short boil, sliced, dried in a hot-air dryer and ground in a pulveriser, then sieved and packed. Buyers use the powder in baby food, cakes, cookies, milkshakes and as a gluten-free flour.
Capacity: Rated output not printed; the report plans 55% use in year 1 rising to 75% in year 5 (year-1 sales ₹77.35 L).
§2Is it right for you?
Who it is for
Someone in a banana belt with food-processing experience and contacts with food makers.
Who it is not for
Someone who cannot keep a food unit clean and tested.
Advantages
- Turns surplus bananas into a product that keeps for months
- Demand from baby-food, bakery and health-food makers
- Gluten-free flour is a growing niche
- Machines are standard food-processing items
Drawbacks
- Fresh banana price swings with the season
- Drying needs careful control or the powder browns
- Needs FSSAI compliance and clean premises
- Many workers (14) for a small unit
Skills you need
- Drying and moisture control
- Food hygiene and FSSAI rules
- Buying bananas at the right maturity
- Selling to food manufacturers
Why difficulty 3/5: Standard food processing, but you need steady raw bananas and steady food buyers.
§3Market
Who buys
- Baby-food makers
- Bakeries and biscuit makers
- Beverage and health-food brands
How it sells
- Direct supply to food manufacturers
- Wholesale traders
- Retail packs through kirana and online
Good to know
- The report says the food industry is the biggest user: infant food, puffed food, seasonings, drinks, cakes and instant food.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Jacketed vessel | 1 | ₹2.15 lakh |
| Fruit washer | 1 | ₹2.50 lakh |
| Slicer machine | 1 | ₹1.55 lakh |
| Pulveriser | 1 | ₹2.50 lakh |
| Dryer | 1 | ₹3.00 lakh |
| Packaging machine | 1 | ₹2.50 lakh |
From: PMEGP sample project report — Banana Powder (prepared by Udyami/Samadhan)
- Raw bananasfully mature but slightly unripe; overripe fruit is rejected
- Packing materialairtight polythene bags or tin containers
From: PMEGP sample project report — Banana Powder (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- FSSAI licence
- Udyam
- GST
- Pollution control board consent
§6Schemes & subsidies
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMFME fits fruit processing; the report is a PMEGP sample; MUDRA and CGTMSE can cover the loan.
§7Money
How the investment is worked out: Samadhan sample report: machinery ₹14.20 L, other assets ₹1.00 L, working capital ₹5.98 L = ₹21.18 L. Premises rented (about ₹40,000 a month).
Working capital: Working capital ₹5.98 L, of which a bank loan of ₹5.38 L.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: APEDA
- Banana powder is a processed fruit product registered with APEDA for export.
§9Risks — where people fail
- Raw banana price and supply
- Quality rejection by buyers
- Moisture and pest damage in storage
- Competition from larger dryers
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working banana powder unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI licence, Udyam), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Banana Powder Unit?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.