§1What this business is
Raw salt is fed into a hopper, crushed to 2–3 mm in a roll crusher and carried on a conveyor. A weak (0.1%) potassium iodate solution is sprayed over a thin bed of salt, which is then mixed so the iodine spreads evenly, and the salt is bagged or packed in 1 kg packets. Buyers are wholesalers, kirana shops and institutions; salt sold for eating in India must be iodised.
Capacity: 20 tonnes a day; raw-material plan for 6,000 tonnes of iodised salt a year.
§2Is it right for you?
Who it is for
A trader with access to raw salt from the pans (Gujarat, Rajasthan, Tamil Nadu) and a wholesale network.
Who it is not for
Someone far from salt sources and without bulk distribution.
Advantages
- Salt is bought by every household, every month
- Food rules require eating salt to be iodised, so demand is built in
- A simple process: crush, spray, mix and pack
- Low break-even in the profile (23.13%)
Drawbacks
- Low price per kg — profit comes only from volume
- Big brands dominate packet salt
- Freight is a large cost because salt is heavy and cheap
- Iodine content must be tested in every lot
Skills you need
- Buying raw salt in bulk
- Iodine dosing and lab testing
- Packing and freight planning
- Wholesale distribution
Why difficulty 3/5: The process is simple, but it is a high-volume, thin-price trade that needs bulk raw salt and wide distribution.
§3Market
Who buys
- Households (packet salt)
- Kirana shops and wholesalers
- Hotels, canteens and institutions
How it sells
- Wholesalers and distributors
- Direct supply in bags to institutions
Good to know
- The profile puts current demand for iodised salt at 281,514 tonnes a year and quotes a Ministry of Health survey figure of more than 60 lakh tonnes a year.
- Full-capacity sales in the profile are ₹180.00 L a year.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Roll crusher (450 mm wide, 6.8 m long) | 1 | ₹15.00 lakh |
| Stainless-steel spray chamber for potassium iodate | 1 | ₹8.00 lakh |
| Belt conveyor | 1 | ₹3.50 lakh |
| Testing and packing machine | 1 lot | ₹4.00 lakh |
| Utility equipment (mixing screw conveyor, 100-litre SS iodate tank, 26 cfm air compressor) | 1 lot | ₹1.25 lakh |
| Installation, taxes and transport | — | ₹3.25 lakh |
From: SIDBI Stand-Up Mitra project profile — Iodised Salt (2018) — private guide — confirm locally
- Raw salt6,000 tonnes a year for 6,000 tonnes of iodised salt
- Potassium iodate3,000 kg a year, sprayed as a 0.1% solution
- 1 kg poly packs and bagsfor direct retail sale or bulk bagging
From: SIDBI Stand-Up Mitra project profile — Iodised Salt (2018) — private guide — confirm locally
In our raw material database
§5Licences & registration
- FSSAI licence
- Udyam registration
- GST registration
- FSSAI packaging and labelling rules
- State Pollution Control Board consent where applicable
- Legal Metrology registration for packed goods
§6Schemes & subsidies
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
- CGTMSECentralActiveNo collateral, up to ₹10 crore
The ₹88.60 L project is above the PMEGP and MUDRA limits; Stand-Up India (₹10 L–₹1 crore loans) fits SC/ST or women founders, and CGTMSE covers a loan without collateral.
§7Money
How the investment is worked out: Land ₹5.00 L + building ₹5.00 L + plant & machinery ₹36.00 L + furniture and equipment ₹3.00 L + preliminary/pre-operative ₹3.60 L + working-capital margin ₹36.00 L = ₹88.60 L. Bank finance ₹66.45 L, promoter ₹22.15 L.
Working capital: The working-capital table totals ₹36.00 L (stock ₹18.00 L, receivables ₹9.00 L, overheads ₹9.00 L), with ₹20.25 L from the bank. The profile's text line says ₹10.80 L — the table is used here.
Prices from 2018 — machinery and running costs will be higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: FIEO (Federation of Indian Export Organisations)
- 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
- Under- or over-iodised lots failing food tests
- Moisture spoiling stock
- Freight cost rises
- Price pressure from large brands
§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 iodised salt plant 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 Iodised Salt Plant?
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.