§1What this business is

Bold peanuts are graded, roasted at about 160 °C, cooled and blanched, then ground in two stages with honey, jaggery or salt, de-aerated, cooled and filled into PET jars. The report plans 240 kg a day. It notes peanut butter is still small in India, led by Delhi and Punjab, and suggests also targeting exports.

Capacity: Grinder rated 30–80 kg an hour; the report takes 30 kg an hour, 240 kg a day, 72,000 kg a year, starting at 40%.

§2Is it right for you?

Who it is for

A food entrepreneur with branding skill or export links.

Who it is not for

Someone without a plan to build a brand or find bulk buyers.

Advantages

  • Fitness and protein trend is growing
  • India grows peanuts all year (two crops)
  • Bakeries and confectioners also buy
  • Export market exists

Drawbacks

  • Domestic market is still small, the report admits
  • Gross margin only 10–12%
  • Aflatoxin and quality testing is strict
  • Big brands dominate shelves

Skills you need

  • Roasting and grinding control
  • Food safety and lab testing
  • Brand building and online sales
  • Peanut sourcing and grading

Why difficulty 3/5: Simple machines, but food testing and a small home market make selling the hard part.

§3Market

Who buys

  • Gyms and fitness buyers
  • Households in big cities
  • Bakeries and confectioners

How it sells

  • Supermarkets and modern retail
  • Online marketplaces
  • Exporters and bulk drum supply

Good to know

  • The report names Delhi as the top market, followed by Punjab, then Mumbai, Bengaluru and Pune.
  • It says India exports mostly raw peanuts and very little peanut butter.

§4Raw material & machinery

ItemQtyCost
Roasting machine1₹80,000
Granulator1₹20,000
Grinder (30–80 kg output)1₹1,25,000
Peanut butter mixer1₹2,50,000
Filling machine, single head1₹1,55,000
GST on main machines—₹1,13,400
Storage tanks2₹30,000 (₹15,000 each)
Collection tanks2₹20,000 (₹10,000 each)
Induction sealer1₹12,000
Labelling machine1₹12,000

From: PMEGP sample project report — Peanut butter final (prepared by Udyami/Samadhan)

  • Peanuts (bold, graded)about ₹80–85 a kg; available all year from two crops
  • Honey₹250–280 a kg
  • Jaggery₹50 a kg
  • PET jars and packingpackaging charges ₹2.12 lakh in year 1

From: PMEGP sample project report — Peanut butter final (prepared by Udyami/Samadhan)

Suppliers in Building Business Bazaar

Larsen and Tubro Ltd · Mumbai →Unitech Engg. (P) Ltd · Saharanpur →

In our raw material database

Groundnut (peanut) →

§5Licences & registration

  1. FSSAI registration or licence
  2. Udyam registration
  3. GST registration
  4. Legal Metrology packaged-commodity registration (for packed goods)
  5. Trademark for your brand name (optional)

We can do this registration for you

§6Schemes & subsidies

PMEGP (the report was made for it), PMFME for micro food processors, MUDRA for loans up to ₹20 lakh (term loan ₹8.08 lakh), CGTMSE, and Stand-Up India for SC/ST or women founders.

§7Money

How the investment is worked out: Sample report: plant & machinery ₹8.17 L + miscellaneous assets ₹0.80 L + working capital ₹5.56 L = ₹14.53 L. Premises rented. Own ₹1.45 L, term loan ₹8.08 L, working-capital limit ₹5.00 L.

Working capital: Working capital ₹5.56 lakh (bank ₹5.00 lakh); raw material costs about ₹300–320 per kg of peanut butter.

Year not printed on the sample report — check current machinery prices.

How to prepare a loan file

§8Export potential

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

2008.11Ground-nuts, otherwise prepared or preserved (including peanut butter)

Export council / board: APEDA

  • The report advises targeting the export market.
  • 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

  • Aflatoxin in poor peanuts
  • Peanut price swings
  • Oil separation and rancidity
  • Slow brand growth

§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 peanut butter 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 Peanut Butter Making?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Peanut butter final (prepared by Udyami/Samadhan)

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