§1What this business is

Urad flour is kneaded with salt, papad khar, hing and black pepper, rested, rolled or sheeted to 2–2.5 mm, cut round and dried, then packed. The KVIC profile is a hand-rolling unit with marble tables and rolling pins; the sample report is a machine line of 500 kg a day. The work suits women's groups.

Capacity: Hand unit: 272 quintals a year. Machine unit: 500 kg a day, 1,50,000 kg a year, starting at 45%.

§2Is it right for you?

Who it is for

Women's self-help groups for the hand unit; a food entrepreneur with distribution for the machine unit.

Who it is not for

Someone who cannot keep taste and hygiene the same in every batch.

Advantages

  • Papad is eaten across India
  • Can start by hand with ₹2 lakh
  • Good work for women's groups
  • Long shelf life when dried well

Drawbacks

  • Strong brands in retail
  • Urad prices swing
  • Hand drying depends on sunny weather
  • Machine line needs big working capital

Skills you need

  • Dough and spice recipe
  • Rolling or machine sheeting
  • Drying and moisture control
  • Retail and distributor sales

Why difficulty 2/5: Hand unit is easy; the machine unit needs capital and a distribution network.

§3Market

Who buys

  • Households
  • Kirana shops and supermarkets
  • Hotels and caterers

How it sells

  • Distributors and wholesalers
  • Own brand in retail packs of about 100 papads
  • Khadi outlets and fairs

Good to know

  • Both reports say papad has good demand in India and abroad.
  • The sample report links rising demand to urbanisation and better living standards.

§4Raw material & machinery

ItemQtyCost
Sieve, marble-top tables, rolling pins, utensils and balance (hand unit)1 set₹40,000
Flour kneading machine1 set₹70,000
Extruder machine1 set₹85,000
Dough sheeter machine1 set₹2,50,000
Papad cutter machine1 set₹2,05,000
Papad drier machine1 set₹4,00,000
Hot air generator1 set₹1,50,000
Control panel box1 set₹95,000
Counting, stacking and packing machine1 set₹2,50,000
Other machines, kitchen tools and equipment1 lot₹45,000

From: KVIC Project Profile — Papad Manufacturing (PMEGP) · PMEGP sample project report — Papad (prepared by Udyami/Samadhan)

  • Urad flour1,50,000 kg a year at ₹90 a kg in the machine unit
  • Hing (asafoetida)150 kg a year at ₹8,500 a kg
  • Black pepper3,000 kg a year at ₹800 a kg
  • Salt and sodium bicarbonate (papad khar)6,000 kg salt at ₹15; 4,500 kg papad khar at ₹40 a kg
  • Oil, water and packing materialoil and water ₹2.00 lakh; packing ₹4.50 lakh a year

From: PMEGP sample project report — Papad (prepared by Udyami/Samadhan)

Suppliers in Building Business Bazaar

Pappad Cluster, Thiruvananthapuram · Thiruvananthapuram →A.M.I. Engineering · Patna →Master Mechanical Works Pvt. Ltd · Delhi →T. Ali Mohammad and Co · Mumbai →

In our raw material database

Moong (green gram) →Urad (black gram) →

§5Licences & registration

  1. FSSAI registration or licence
  2. Udyam registration
  3. GST registration
  4. Legal Metrology packaged-commodity registration (for packed goods)

We can do this registration for you

§6Schemes & subsidies

PMEGP for both sizes, PMFME for micro food processors, MUDRA, CM-YUVA in UP for the ₹2 lakh hand unit, CGTMSE and Stand-Up India for the ₹24.50 lakh machine unit.

§7Money

How the investment is worked out: KVIC hand unit ₹2.00 L: shed 300 sq ft ₹0.60 L + equipment ₹0.40 L + working capital ₹1.00 L. Sample report machine unit ₹24.50 L: shed 800 sq ft ₹3.00 L + plant & machinery ₹15.50 L + furniture ₹1.00 L + working capital ₹5.00 L.

Working capital: Hand unit ₹1.00 lakh; machine unit ₹5.00 lakh (bank ₹4.50 lakh). Urad flour is the biggest cost.

KVIC profile has no year; the sample report has no year either — check current prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

1905.90Bread, pastry, cakes, biscuits and other bakers' wares: other (papad is classified here in the Indian tariff)

Export council / board: APEDA

  • HS heading from the ITC(HS) 2022 schedule; confirm the 8-digit line with DGFT or your customs broker.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Urad dal price spikes
  • Fungus from poor drying
  • Brand competition
  • Food-safety complaints

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working papad making unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (FSSAI registration or licence, Udyam registration), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

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 Papad Making?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. KVIC Project Profile — Papad Manufacturing (PMEGP)
  2. PMEGP sample project report — Papad (prepared by Udyami/Samadhan)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.