§1What this business is
Ginger and garlic from farms are washed with water jets, peeled in a skin-peeling machine, crushed in a mill, pulped into a fine paste, mixed with preservative and filled into pouches or containers, then cartoned. Ready paste saves time in home kitchens, restaurants, hotels and caterers, and goes into sauces, gravies, pickles and curries made by food processors. The SIDBI profile plans 300 tonnes a year.
Capacity: 300 tonnes of paste a year; year 1 at 60%.
§2Is it right for you?
Who it is for
Someone near ginger or garlic growing areas with food-processing knowledge and a route to hotels, caterers and retail.
Who it is not for
Someone unable to carry stock through price swings or a weak first year.
Advantages
- Ready paste saves time in homes, hotels and caterers
- Ginger and garlic grow in many states, so supply is wide
- Food processors use it in sauces, gravies and pickles
- Simple wash-peel-crush-pack process
Drawbacks
- Ginger and garlic prices swing sharply year to year
- Year-1 profit is almost nil (₹0.82 L)
- Shelf life depends on preservative and hygiene — spoilage risk
- Big spice and food brands already sell paste
Skills you need
- Buying ginger and garlic at harvest prices
- Hygiene and preservative control
- Packing and shelf-life testing
- Selling to HoReCa, caterers and retail
Why difficulty 3/5: Simple process, but volatile raw-material prices and shelf-life control.
§3Market
Who buys
- Households
- Hotels, restaurants and caterers
- Food processors making sauces, gravies, pickles and curries
How it sells
- Distributors and kirana shops
- Supermarkets
- Bulk supply to HoReCa and food processors
Good to know
- The profile notes ginger is used in sauces, ketchup, salad dressings, sausages, gravies, pickles and curries.
- Garlic is also used in medicinal preparations, per the profile.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Water-jet washer and skin peeling machine (pulp division) | 1 | ₹12.00 lakh |
| Fruit mill / crusher with mixer, grinder and slicer | 1 | ₹4.00 lakh |
| Pulping machine | 1 | ₹5.00 lakh |
| Testing and packing equipment (mixing tank, filling, sealing, weighing, carton packing) | lump sum | ₹3.00 lakh |
| Utility equipment | lump sum | ₹2.00 lakh |
| Installation, taxes and transport | lump sum | ₹4.00 lakh |
From: SIDBI Stand-Up Mitra project profile — Ginger, Garlic & Onion Pastes (2018) — private guide — confirm locally
- Ginger and garlicbought from farms; grown in Gujarat, Odisha, Maharashtra, Himachal Pradesh, Kerala, Haryana, MP and UP, per the profile
- Preservativemixed into the paste
- Pouches, containers and outer cartonstwo pack types: pouch and container
From: SIDBI Stand-Up Mitra project profile — Ginger, Garlic & Onion Pastes (2018) — private guide — confirm locally
In our raw material database
§5Licences & registration
- FSSAI manufacturing licence
- Udyam registration
- GST registration
- State Pollution Control Board consent (wash water)
- 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 ₹13.00 L + building ₹35.00 L + plant and machinery ₹30.00 L + furniture and other equipment ₹3.50 L + preliminary and pre-operative ₹3.00 L + margin for working capital ₹51.00 L = ₹135.50 L.
Working capital: Working capital ₹51.00 L (stocks ₹25.50 L, receivables ₹12.75 L, overheads ₹12.75 L); margin ₹22.31 L, bank ₹28.69 L. Finance: owner ₹33.88 L, bank ₹101.63 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: APEDA
- 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
- Raw material price spikes
- Fermentation or discolouration from poor hygiene
- Price war with branded pastes
- Food-safety action for preservative limits
§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 ginger-garlic paste 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 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 Ginger-Garlic Paste 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.