§1What this business is
You clean, dry and grind spices such as dried red chilli and coriander and fill them into packets. Sales are through kirana shops, hotels and dhabas, caterers and online. Purity (no adulteration) and aroma build the brand.
Capacity: Chilli powder 1,14,000 kg a year; coriander powder 2,28,000 kg a year.
§2Is it right for you?
Who it is for
Someone who will not compromise on quality and wants to build a brand from local to online.
Who it is not for
Someone thinking of making cheap goods by adulterating — you will lose both an FSSAI case and your name.
Advantages
- Every kitchen needs them; demand all year
- Simple machines and process
- Pure spices fetch a premium
- Easy to widen the product line (garam masala, turmeric, spice mixes)
Drawbacks
- Buyers suspect adulteration — you must earn trust with FSSAI tests
- Fight for shelf space with brands like MDH and Everest
- Raw material prices depend on the harvest
- Moisture brings a risk of fungus/aflatoxin
Skills you need
- Grading raw spices
- Grinding/cleaning hygiene
- Packaging & branding
- Retail + online selling
Why difficulty 2/5: Easy technology; building quality and brand trust takes time.
§3Market
Who buys
- Households
- Hotels, restaurants and caterers
- Spice processing companies (about half of coriander powder demand)
- Food manufacturers
How it sells
- Kirana shops and wholesalers
- Supermarkets
- Bulk supply to spice brands and food processors
Good to know
- India has the largest domestic market for spices in the world.
- Coriander powder demand peaks from April to June, when the new crop also arrives; Delhi is a major domestic buyer.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Chilli unit: impact pulveriser without sieve | 1 | ₹3 lakh |
| Chilli unit: packaging machine | 1 | ₹1.80 lakh |
| Chilli unit: bins, trolley, weighing machine, kitchen tools | — | ₹2.40 lakh |
| Coriander unit: de-stoner | 1 | ₹1.75 lakh |
| Coriander unit: vibro separator, 100 kg/hour | 1 | ₹80,000 |
| Coriander unit: seed roasting machine, 75–300 kg/hour | 1 | ₹1.40 lakh |
| Coriander unit: pulveriser, 50–300 kg/hour | 1 | ₹1.90 lakh |
| Coriander unit: powder grinding machine, 100–150 kg/hour | 1 | ₹90,000 |
| Coriander unit: drum sieve | 1 | ₹35,000 |
| Coriander unit: automatic pouch filling and packing machine | 1 | ₹1.50 lakh |
| Coriander unit: bins, trolley, conveyor, silos | — | ₹3.50 lakh |
From: NIFTEM-K (MoFPI) PMFME Detailed Project Report – Red Chilli Powder Unit (2021) · NIFTEM-K (MoFPI) PMFME Detailed Project Report – Coriander Powder Unit (2021)
- Dried red chilli₹60 per kg in year 1 of the NIFTEM chilli DPR
- Coriander seeds₹45 per kg in year 1 of the NIFTEM coriander DPR; Madhya Pradesh and Rajasthan grow over two-thirds of India's crop
- Food-grade pouches and cardboard cartonspowder is packed at once to keep aroma
From: NIFTEM-K (MoFPI) PMFME Detailed Project Report – Red Chilli Powder Unit (2021) · NIFTEM-K (MoFPI) PMFME Detailed Project Report – Coriander Powder Unit (2021)
Suppliers in Building Business Bazaar
Chayani Barduar Spices Cluster, Kamrup, Assam · Kamrup →Food And Spice Processing Cluster · Kakching →Indigenous Farmers Organic Spice Cluster · Churachandpur →Lamka Spices And Oleoresin Cluster · Churachandpur →Phirangipuram Spice Cluster · Guntur →Seed Spice Processing And Value Addition Cluster · Pali →Sirsi Pepper And Cardamom Spices Cluster · Uttar Kannad →Spice Processing, Aurangabad · Aurangabad →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 →
§5Licences & registration
- FSSAI licence/registration
- Udyam
- GST
- Legal Metrology
- AGMARK (optional, builds trust)
§6Schemes & subsidies
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- CM YUVAUPActiveUp to ₹5 lakh, interest-free
The DPRs were made for PMFME — 35% subsidy (max ₹10 L). PMEGP/MUDRA/CGTMSE also fit. A small home-level setup fits CM-YUVA.
§7Money
How the investment is worked out: NIFTEM PMFME DPRs: Red chilli powder unit ₹14.71 L (machinery ₹7.20 L, misc ₹2.80 L, WC ₹4.71 L); Coriander powder unit ₹18.38 L (machinery ₹12.10 L, misc ₹1.50 L, WC ₹4.78 L). Premises rented in both.
Working capital: Raw spices are bought and stocked in season — WC ₹4.7–4.8 L, bank CC ₹4.2–4.3 L.
DPRs 2021.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Spices Board India
- The Spices Board registers spice exporters and provides quality control and certification.
- India exported 1.13 billion kg of spices worth US$3.32 billion in 2018-19 (NIFTEM chilli DPR).
- Buyers abroad test for moisture, volatile oil, colour and size.
§9Risks — where people fail
- Raw spice price swings
- Adulteration/food-safety failure
- Brand competition
- Moisture/pest
§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 masala / spice grinding 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/registration, Udyam), 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 Masala / Spice Grinding Unit?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
- NIFTEM-K (MoFPI) PMFME Detailed Project Report – Red Chilli Powder Unit (2021)
- NIFTEM-K (MoFPI) PMFME Detailed Project Report – Coriander Powder Unit (2021)
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.