§1What this business is
Flour, milk, oil, sugar, salt and baking powder are mixed into a batter in a planetary mixer. An automatic depositor fills muffin pans two-thirds full, the pans go into a rotary rack oven, and the baked muffins are packed in small pouches. Sold through bakeries, kirana and grocery shops, cafés, canteens and supermarkets.
Capacity: 200 kg of muffins a day; the report starts at 45% capacity in year 1.
§2Is it right for you?
Who it is for
A baker or food entrepreneur with a delivery network to shops and cafés in a town or city.
Who it is not for
Someone far from urban buyers or without cold, clean storage.
Advantages
- Popular snack and breakfast item
- Automatic depositor keeps size and weight even
- Low break-even in the report (23%)
- Can add cupcakes and cakes on the same line
Drawbacks
- Short shelf life means daily distribution
- Competition from local bakeries and big brands
- Flour, sugar and oil prices move
- Returns of unsold stock from shops
Skills you need
- Baking and recipe control
- Food hygiene
- Route-based distribution
- Packaging and shelf-life management
Why difficulty 3/5: Baking is simple; daily distribution and freshness are the hard part.
§3Market
Who buys
- Households and students
- Cafés, canteens and offices
- Travellers
How it sells
- Kirana, bakery and grocery shops
- Supermarkets
- Direct supply to cafés and canteens
Good to know
- The report describes muffins as a growing alternative to doughnuts and Danish pastries at breakfast and as a snack.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Planetary mixer (50 kg) | 1 | ₹80,000 |
| Automatic depositor machine (30 strokes a minute) | 1 | ₹5,50,000 |
| Rotary rack oven (50 kg an hour) | 1 | ₹4,00,000 |
| Semi-automatic packaging machine | 1 | ₹2,60,000 |
| Aluminium muffin pans and dies | 1 lot | ₹18,000 |
From: PMEGP sample project report — Muffins (prepared by Udyami/Samadhan)
- Flourmain ingredient
- Milk, vegetable oil, sugar, saltbatter ingredients
- Baking powderleavening agent
- Butter paperfor pans and packing
From: PMEGP sample project report — Muffins (prepared by Udyami/Samadhan)
§5Licences & registration
- FSSAI licence
- Udyam
- GST
- Trademark for your brand
- Legal Metrology registration for packaged goods
- Fire NOC (oven)
§6Schemes & subsidies
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMFME (micro food processing), PMEGP (this is a PMEGP sample report) and CGTMSE fit. Bank finance ₹20.62 L is just above the MUDRA ₹20 L limit.
§7Money
How the investment is worked out: PMEGP sample report: total ₹22.91 L = building/shed (1,000 sq ft) ₹5.00 L + plant & machinery ₹13.08 L + furniture ₹1.50 L + working capital ₹3.33 L.
Working capital: Working capital ₹3.33 L (bank ₹3.00 L) — muffins have a short shelf life, so stock is kept low.
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
- Short shelf life makes export practical only for long-life packed products.
§9Risks — where people fail
- Stale returns
- Food-safety lapses
- Ingredient price rises
- Price pressure from 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 muffin bakery 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), 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 Muffin Bakery 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.