§1What this business is
Spices are fed from a hopper into a pre-chilled screw conveyor where liquid nitrogen (which boils at –196 °C) is sprayed on them, then ground in an impact mill. Because the spice stays cold, less of its volatile oil is lost and the colour stays brighter than in an ordinary grinder. The powders go to households, hotels, food processors, Ayurvedic and cosmetic makers, and export markets such as Japan, Sri Lanka, Iran and the UAE named in the profile.
Capacity: 3,000 MT a year as printed in the profile; year 1 at 60%.
§2Is it right for you?
Who it is for
A spice trader or processor with capital and buyers in food processing or export.
Who it is not for
A first-time founder looking for a small masala unit — start with ordinary grinding instead.
Advantages
- Better aroma and colour than ordinary grinding, so a higher price is possible
- India leads the world in chilli, cumin and turmeric
- Buyers range from households to food factories and exporters
- Cold grinding also suits oily and sticky spices
Drawbacks
- Large project — ₹169.13 L
- Needs a steady supply of liquid nitrogen
- Raw spices take about 77% of sales
- Crowded market of branded masala companies
Skills you need
- Spice buying, cleaning and grading
- Running a liquid-nitrogen grinding line safely
- Food-safety and quality testing
- Export and bulk-buyer sales
Why difficulty 4/5: Costly specialised line, nitrogen supply and a crowded spice market.
§3Market
Who buys
- Households
- Hotels, restaurants and eateries
- Food processing industry
- Ayurvedic and cosmetic makers
How it sells
- Branded retail packs through distributors
- Bulk supply to food processors
- Export
Good to know
- The profile names Japan, Sri Lanka, Iran and the UAE among export markets.
- The profile states India leads world production of cumin, chilli and turmeric.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Blower | 1 | ₹2.50 lakh |
| Rotary valve | 1 | ₹3.35 lakh |
| Screw cooler with liquid-nitrogen supply | 1 | ₹4.25 lakh |
| Impact mill | 1 | ₹3.70 lakh |
| Filter | 1 | ₹3.20 lakh |
| Temperature sensors | 1 | ₹4.00 lakh |
| Screw feeder | 1 | ₹3.80 lakh |
| Product storage tanks | 5 | ₹0.45 lakh each |
| Liquid-nitrogen storage tank with insulated piping and pumps | 1 | ₹1.30 lakh |
| Packing, filling and sealing machine | 1 | ₹2.00 lakh |
| Weighing scale | 3 | ₹0.25 lakh each |
| Material handling equipment and tools | lump sum | ₹1.65 lakh |
From: SIDBI Stand-Up Mitra project profile — Cryogenic Grinding of Spice (2018) — private guide — confirm locally
- Whole spices: red chilli, turmeric, cumin, coriander, pepper, bay leaf, curry leafbought from spice mandis and traders
- Liquid nitrogenthe cooling medium sprayed during grinding
- Food-grade packing material and cardboard boxesfor powders and bulk cartons
From: SIDBI Stand-Up Mitra project profile — Cryogenic Grinding of Spice (2018) — private guide — confirm locally
Suppliers in Building Business Bazaar
Spices Board Quality Evaluation Laboratory, Kochi · Kochi →Spices Board Quality Evaluation Laboratory, Mumbai · Navi Mumbai →Spices Board Quality Evaluation Laboratory, Guntur · Guntur →Spices Board Quality Evaluation Laboratory, Tuticorin · Thoothukudi →Spices Board Quality Evaluation Laboratory, Narela (Delhi) · Narela →Spices Board Quality Evaluation Laboratory, Chennai · Gummidipoondi →Spices Board Quality Evaluation Laboratory, Kandla · Gandhidham →Spices Board Quality Evaluation Laboratory, Kolkata · Baruipur →Spices Board Quality Evaluation Laboratory, Jodhpur · Jodhpur →
In our raw material database
Turmeric (haldi) →Red chilli (dry) →Cumin (jeera) →Coriander seed (dhania) →Black pepper →
§5Licences & registration
- FSSAI manufacturing licence
- Udyam registration
- GST registration
- State Pollution Control Board consent
- Spices Board registration (CRES) and IEC for exports
- Legal Metrology registration for retail packs
- Factory licence
§6Schemes & subsidies
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMFME gives a 35% credit-linked subsidy up to ₹10 L for a micro food unit; Stand-Up India (₹10 L–₹1 crore) for SC/ST and women founders; CGTMSE for a loan without collateral. The cost is above PMEGP's ₹50 L ceiling.
§7Money
How the investment is worked out: Land ₹25.00 L + building ₹38.00 L + plant and machinery ₹32.75 L + furniture ₹1.10 L + preliminary and pre-operative ₹3.28 L + margin for working capital ₹69.00 L = ₹169.13 L.
Working capital: Working capital ₹69.00 L (stocks ₹34.50 L, receivables ₹17.25 L, overheads ₹17.25 L); margin ₹30.19 L, bank ₹38.81 L. Finance: owner ₹42.28 L, bank ₹126.84 L.
SIDBI Stand-Up Mitra profile, uploaded in 2018 (no year printed on it) — prices will be higher now; check current costs.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Spices Board
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Price swings in raw spices
- Liquid nitrogen supply breaks or cost rises
- Pesticide-residue or aflatoxin rejections in export
- Cold burns and oxygen-shortage risk from nitrogen in closed rooms
§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 cryogenic spice grinding unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI manufacturing licence, Udyam registration), 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 Cryogenic Spice Grinding?
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.