§1What this business is

Gram dal is cleaned on a pulse cleaner, roasted in an electric roaster, ground to a fine mesh, sieved and packed. Sattu is eaten as a summer drink and used in litti and many snacks; it is a mass-consumption item in Bihar and Jharkhand and is spreading to other states. The KVIC profile suggests Bhojpur or Hazaribagh, near dal mills.

Capacity: Samadhan: 500 kg a day, 1,50,000 kg a year (8 hours, 300 days). KVIC: grinder 25 kg an hour, roaster 20 kg an hour; cost of production ₹23.19 L a year.

§2Is it right for you?

Who it is for

Someone in Bihar, Jharkhand or eastern UP with links to dal mills and kirana distributors.

Who it is not for

Someone in a region where sattu is not part of the diet, unless they can create demand.

Advantages

  • Traditional food with fixed demand in Bihar and Jharkhand
  • Simple process: clean, roast, grind
  • Can start small (KVIC ₹8.65 L)
  • Growing interest as a healthy protein drink

Drawbacks

  • Gram prices move with the pulse market
  • Many loose, unbranded sellers
  • Demand peaks in summer
  • Thin profit in year 1 (₹2.42 L)

Skills you need

  • Roasting to a consistent taste
  • Buying gram at the right time
  • Food safety and packing
  • Retail distribution

Why difficulty 2/5: Simple process; profit depends on gram buying and local brand building.

§3Market

Who buys

  • Households in urban, semi-urban and rural areas
  • Restaurants, eateries and litti sellers

How it sells

  • Kirana shops and wholesalers
  • Own brand in packets

Good to know

  • The KVIC profile calls Bihar and Jharkhand the preferred locations and says there are very few sattu plants.

§4Raw material & machinery

ItemQtyCost
KVIC set: dal cleaning machine, grinder 25 kg/hour, electric roaster 20 kg/hour, 3 screen-type sieves, weighing scales, bag sealing machine1 set₹2.90 lakh (whole set)
Samadhan plant and machinery (items not listed separately)1 set₹18.00 lakh

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

  • Gram (chana) dalSamadhan: 1,50,000 kg a year at ₹44 a kg (₹66.00 lakh at full capacity); KVIC: ₹15.20 lakh a year
  • Labels and packing material₹20,000 a year (KVIC)

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

§5Licences & registration

  1. FSSAI licence or registration
  2. Udyam registration and GST
  3. Legal Metrology registration for packets
  4. State Pollution Control Board consent where needed (dust from grinding)

We can do this registration for you

§6Schemes & subsidies

PMFME and PMEGP fit; MUDRA suits the smaller KVIC-size unit; CGTMSE for a collateral-free loan.

§7Money

How the investment is worked out: KVIC profile ₹8.65 L = workshed 80 sq m ₹2.00 L, equipment ₹2.90 L, working capital ₹3.75 L. Samadhan report ₹24.55 L = plant and machinery ₹18.00 L, furniture ₹1.00 L, working capital ₹5.55 L; 1,500 sq ft shed own or rented.

Working capital: KVIC WC ₹3.75 L; Samadhan WC ₹5.55 L (bank ₹5.00 L).

Year not printed on either report — check current machinery and raw-material prices.

How to prepare a loan file

§8Export potential

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

1106.10Flour and meal of dried leguminous vegetables (gram flour)

Export council / board: APEDA

  • Sattu sells to the Indian diaspora; APEDA registration and an IEC are needed for export.

§9Risks — where people fail

  • Gram price spikes
  • Moisture and insects in stock
  • Adulterated cheap sattu in the market
  • Seasonal demand dips in winter

§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 sattu manufacturing 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 licence or registration, Udyam registration and GST), 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 Sattu Manufacturing?

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

Get a DPR / loan file made

Sources

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

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