Vermicelli (Seviyan) Unit

§1What this business is

Wheat flour, with a little soya, groundnut or tapioca flour, is kneaded into dough, pressed through an extruder into thin strands, cut, roasted and packed. The report quotes DFRL Mysore know-how and the BIS standard IS 1485:1976.

Capacity: 0.5 tonne a day, 150 tonnes a year at full capacity (60% in year 1, 10% wastage allowed). The report's text also mentions a rated capacity of 80 tonnes a year.

§2Is it right for you?

Skills you need

• Dough consistency and extrusion
• Roasting and moisture control
• Food hygiene
• Distribution before festivals

Why difficulty 2/5: Simple process and local raw material; selling in season is the main work.

§3Market

§4Raw material & machinery

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

• Wheat flour150 tonnes a year at ₹30,000 a tonne (full capacity)
• Soya bean, tapioca or groundnut flour15 tonnes a year at ₹50,000 a tonne

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

§5Licences & registration

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

We can do this registration for you

§6Schemes & subsidies

• PMFMECentralUnclear35% subsidy, up to ₹10 lakh
• PMEGPCentralActive15–35% subsidy
• MudraCentralActiveLoan up to ₹20 lakh, no collateral
• CGTMSECentralActiveNo collateral, up to ₹10 crore

PMFME gives a 35% subsidy (up to ₹10 L) for micro food units like this; PMEGP and MUDRA both fit ₹16 L; CGTMSE for collateral-free credit.

§7Money

How the investment is worked out: Building and civil work (2,000 sq ft) ₹1.50 L + plant & machinery ₹8.30 L + furniture ₹0.74 L + pre-operative ₹0.50 L + working capital ₹4.96 L = ₹16.00 L. Finance: term loan ₹9.94 L, working-capital finance ₹4.47 L, own ₹1.60 L.

Working capital: Working capital ₹4.96 L (bank ₹4.47 L) — 15 days of flour plus finished stock.

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

How to prepare a loan file

§8Export potential

§9Risks — where people fail

• Wheat price rise
• Unsold stock after a festival
• Insect or moisture damage
• 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 vermicelli (seviyan) unit 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), 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

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

¶Sources

1. PMEGP sample project report — Vermicelli (prepared by Udyami/Samadhan)

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