§1What this business is
Chicory roots are cleaned, washed, sliced, graded, dried and roasted, then extracted with hot water, evaporated and spray-dried into powder and packed. Roasted chicory is blended with coffee for flavour; the report notes its inulin content and use in cosmetics and medicines too. Buyers are coffee roasters and blenders, food companies and retail shops.
Capacity: 600 kg of powder a day on a 10-hour shift; year 1 at 30%.
§2Is it right for you?
Who it is for
Someone in the coffee trade or near chicory-growing areas.
Who it is not for
Someone without access to chicory roots or coffee buyers.
Advantages
- South Indian filter coffee uses chicory blends
- Only one raw material — chicory roots
- Gross margin about 24–28%
- Can supply coffee brands in bulk
Drawbacks
- Wages are as large as raw material — 18 people
- Chicory roots are grown in only a few areas
- Spray dryer and evaporator need skill to run
- A few large processors dominate supply
Skills you need
- Roasting control
- Evaporation and spray drying
- Quality testing
- Selling to coffee roasters
Why difficulty 3/5: Several processing steps and a narrow buyer base.
§3Market
Who buys
- Coffee roasters and blenders
- Food, cosmetic and pharmaceutical companies (named in the report)
- Households
How it sells
- Bulk supply to coffee brands
- Grocery shops, supermarkets and speciality stores
Good to know
- The report says chicory root contains up to 40% inulin and suits diabetic diets.
- It links rising chicory use to more ready-to-mix and ready-to-drink coffee.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Vibrating separator | 1 | ₹75,000 |
| Washing unit | 1 | ₹65,000 |
| Chicory grinding machine | 1 | ₹2,74,000 |
| Tray dryer | 1 | ₹2,46,000 |
| Roasting machine | 1 | ₹1,40,000 |
| Single-effect evaporator | 1 | ₹1,50,000 |
| Spray dryer | 1 | ₹3,70,000 |
| Packaging machine | 1 | ₹1,80,000 |
| Material handling and other equipment | — | ₹1,50,000 |
From: PMEGP sample project report — Chicory Powder (prepared by Udyami/Samadhan)
- Chicory rootsthe only raw material; ₹21.60 lakh in year 1
- Packing pouches and cartons
From: PMEGP sample project report — Chicory Powder (prepared by Udyami/Samadhan)
§5Licences & registration
- FSSAI licence
- Udyam
- GST
- Pollution control board consent
- Trade licence
- Trademark for the brand
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP sample project; PMFME fits a micro food-processing unit; CGTMSE covers the collateral-free loan.
§7Money
How the investment is worked out: Samadhan report: plant & machinery ₹16.50 L + furniture ₹1.00 L + working capital ₹5.32 L = ₹22.82 L. Premises own or rented. Finance: term loan ₹15.75 L, WC loan ₹4.79 L, own ₹2.28 L. (The PMEGP list also shows ₹23.50 L against the same file.)
Working capital: Working capital ₹5.32 lakh, bank finance ₹4.79 lakh — 15 days of stock, 14 days' credit to buyers, 15 days from suppliers.
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
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Root supply and price
- Roasting or drying faults spoiling batches
- Dependence on a few coffee buyers
- Moisture pick-up in powder
§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 chicory powder 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 Chicory Powder?
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.