§1What this business is
Green chillies are de-stemmed, washed and boiled, made into paste, pulped and mixed with spices, starch and preservatives, cooked in steam-jacketed kettles, homogenised, then filled in pouches or bottles. The sauce is used in Indo-Chinese dishes, noodles, fried rice and as a dip.
Capacity: 1,000 kg a day (12-hour working); 3,00,000 kg a year at full capacity; 40% in year 1.
§2Is it right for you?
Who it is for
Someone who can sell in bulk to restaurants, caterers and street-food vendors, or build a local brand.
Who it is not for
Someone hoping to beat national brands on supermarket shelves from day one.
Advantages
- Fast-food and Indo-Chinese demand is growing
- Green chillies are grown everywhere
- Long shelf life with proper processing
- Can add red chilli, schezwan and other sauces
Drawbacks
- Raw material is about 84% of production cost in year 1
- Big brands dominate retail shelves
- Chilli prices jump in some seasons
- Needs strict hygiene and preservative limits
Skills you need
- Recipe and consistency control
- Food safety and preservative limits
- Buying chillies in season
- Selling to HoReCa and distributors
Why difficulty 3/5: Easy process, hard market against big brands.
§3Market
Who buys
- Fast-food outlets and Indo-Chinese restaurants
- Hotels and caterers
- Households
- Street-food vendors
How it sells
- Food-service distributors
- Grocery retailers
- Direct bulk supply in pouches
Good to know
- The report expects the Indian Chinese, hot and barbeque sauce market to grow at more than 15% a year (2017-18 to 2022-23 estimate).
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Steam-jacketed kettle, tilting type | 1 | ₹2,50,000 |
| Pulveriser | 1 | ₹2,25,000 |
| Pulper | 1 | ₹2,25,000 |
| Steam-jacketed kettle, fixed type | 1 | ₹3,50,000 |
| Homogeniser | 1 | ₹3,75,000 |
| Filling tank | 1 | ₹80,000 |
| Transfer pump | 1 | ₹80,000 |
| Pouch filling machine | 1 | ₹2,60,000 |
| Crown capping machine | 1 | ₹55,000 |
From: PMEGP sample project report — Green Chilli Sauce (prepared by Udyami/Samadhan)
- Green chilli₹46–50 per kg (report)
- RO water
- Spices and condiments (onion, garlic and ginger powder)
- Emulsifier/stabiliser (corn starch, modified starch)
- Preservatives (salt, acid, sodium benzoate)average raw material cost ₹70–75 per kg of sauce (report)
From: PMEGP sample project report — Green Chilli Sauce (prepared by Udyami/Samadhan)
§5Licences & registration
- FSSAI licence
- Udyam registration
- GST registration
- NOC from the State Pollution Control Board (named in the report)
- Legal Metrology registration
- Trademark (optional, per report)
§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 and PMFME fit; MUDRA and CGTMSE for credit.
§7Money
How the investment is worked out: Samadhan report: plant & machinery ₹19.00 L, furniture ₹1.00 L, working capital ₹5.00 L = ₹25.00 L. Land (2,000–2,500 sq ft) own or rented.
Working capital: Working capital ₹5.00 L (bank ₹4.50 L); 15 days' raw material and 10 days' finished stock.
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
- HS codes are from the WCO HS 2022 list; 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
- Chilli price spikes
- Spoilage or fermentation in packs
- FSSAI quality failures
- Low brand recall
§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 green chilli sauce 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 Green Chilli Sauce?
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.
