§1What this business is
Rice or corn grits are mixed, puffed in an extruder (70 kg an hour in the profile), roasted, flavoured and packed on a vertical form-fill-seal machine with nitrogen. They sell as low-cost, ready-to-eat namkeen to homes, parties and shops.
Capacity: 200 tonnes a year; projected sales ₹145.00 lakh at full capacity.
§2Is it right for you?
Who it is for
Someone with a distributor network in snacks or FMCG.
Who it is not for
Someone who has no plan to reach shops week after week.
Advantages
- Snacks sell in every kirana and paan shop
- Cheap cereal raw material
- Many shapes and flavours from one extruder
- Good surplus at full capacity (₹11.14 lakh)
Drawbacks
- Big brands (the profile names Pepsi Foods and Haldiram) lead
- Distribution and shelf space cost money
- Raw material is about 77% of sales
- Short shelf life without good packing
Skills you need
- Extruder operation
- Flavour development
- Packing and shelf-life control
- Distribution
Why difficulty 3/5: Making is easy; selling against national brands is hard.
§3Market
Who buys
- Households
- Restaurants and party caterers
- Schools and canteens
How it sells
- Kirana, paan and general stores via distributors
- Wholesale markets
Good to know
- The profile puts annual demand at over 2,40,000 tonnes of extruded snacks worth over ₹2,400 crore (undated figure).
- It says there is room for a few more units making local-taste products.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Extruder with 20 HP motor and feeder hopper, 70 kg an hour | 1 | — |
| Raw material mixer with 1 HP motor | 1 | — |
| Roaster and flavouring system | 1 set | — |
| Vertical form-fill-seal collar-type machine, 50–60 pouches a minute | 1 | — |
| Compressor (300 lb) and nitrogen cylinder | 1 set | — |
| Moisture tester, work tables, plastic trays, tubs, weighing balance and other items | 1 lot | ₹14,95,000 (all equipment together) |
From: KVIC Project Profile — Extruded Snacks (PMEGP)
- Rice and corn gritsraw material ₹111.00 lakh a year
- Edible oil or fat and flavourings
- Laminated pouches and nitrogenlabels and packing ₹75,000 a year
From: KVIC Project Profile — Extruded Snacks (PMEGP)
Suppliers in Building Business Bazaar
B. Sen Barry and Co · Delhi →Canon Engg · Bhubaneswar →Chemical Equipt & Linings · Chennai →Chemplast · Mumbai →Fun Snacks Pvt.Ltd · Delhi →Gardeners Corporation · Delhi →Guru Nanak Engg. Corporation · Hyderabad →H and P Industries · Thrissur →Jyothi Industries · Bengaluru →Kanoi Engg.& Industries Ltd · Kolkata →Kilco Perfect Machine Traders · Thrissur →Larsen & Toubro Ltd · Mumbai →
§5Licences & registration
- FSSAI licence
- Udyam registration
- GST registration
- Legal Metrology registration for pre-packed goods
- Trademark for your brand name (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP fits (the report was made for it); PMFME gives a 35% subsidy for food processing; MUDRA up to ₹20 lakh; CGTMSE for a collateral-free loan.
§7Money
How the investment is worked out: Equipment ₹14.95 lakh, working capital ₹9.50 lakh = ₹24.45 lakh. Shed rented.
Working capital: Working capital ₹9.50 lakh; raw material ₹111.00 lakh a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
The project report gives no HS code — find the right 8-digit ITC(HS) code on the DGFT website before you export.
§9Risks — where people fail
- Brand competition
- Oil and grain price rises
- Food safety failures
- Unsold stock going stale
§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 extruded snacks 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 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 Extruded Snacks 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.