We provide the all details about how to start papad making business . Nowadays, “Papad” manufacturing business has great market potential and scope. On an average, more than 1.5 crore pieces of ‘papads’ are selling in everyday in a small region like Kerala. By establishing a ‘papad’ manufacturing unit, a family can easily achieve a sound financial position. And security by ensuring a high standard of living through papad selling business.
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Most important thing is that very low capital investment will be enough to establish a ‘papad making business’. By using available machines in the market. The best business strategy for this unit is that it is better to establish a small scale production unit. With minimum business capacity at initial level. Then expand to large scale production in future in accordance with the increase in demand in the market.
By following this strategy, we can secure a big success in ‘papad’ manufacturing business. In this article, we have explained all the procedures for start up. Like level of investment, machinery and equipment, license clearance, marketing strategy and possibility of profit and loss to establish and run a ‘papad’ manufacturing unit in detail. We can establish this unit as a cottage industry and it is necessary to take food safety certificate from the government authority as it is a food processing unit.
Papad making machinery
When you start your business with Papad making machinery will help to bulk production. If we are planning built a ‘papad’ manufacturing unit based on machinery, three kinds of papad making machinery are necessary to establish it.
Basically, we should have a “Mixer machine for papad making business”. This machine using for mixing the ingredient proper way. In the mixer machine have a different capacity .It starts from the machinery with the capacity of 20 Kg quantity intakes up to the capacity of 100 Kg quantity intakes in a single mix.There are many types of Mixer Machines on the basis of its capacity to take quantity of production.The decision to choose the type of machinery should be based on our project and planned size of unit.
Secondly we need a “Roller Machine for papad making business ”. and a “Making Machine” for making process. The most suitable roller machine is the machine which designed and created with wood. Obviously, the capacity of Roller Machine and Automatic Machine should be in accordance with the capacity of Mixer machine. By using wood roller we can mix and prepare urad dal powder(uzhunnu) well and it can be converted in to sheets easily. After that we can use that sheet to make ‘papad’ . We can determine the size of wood rollar in accordance with our production capacity.
The Fully automatic papad making machine Most important machine in the production process. Its production capacity can be measured in terms of layers. Like two layers, three layers and four layers. Tow layer machine is supported with 1 hp motor which has the capacity to produce 100 kg quantity of production in a day.
If you are using three layer machines with 2 hp capacity motor, you can produce 25 kg to 30 kg quantity of product in an hour. Four layer machines have huge production capacity and we can produce 50 kg to 60 kg quantity of output in an hour.
There are many companies who are providing making machines. Most importantly, we have two companies who are providing good quality making machines. Details of investment for Papad making business with machine companies have given in the following section.
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Investment for Papad making business
When we establishing a ‘papad’ manufacturing unit by using machine intensive production technique. we will have four kinds of investment for Papad making business with machine.
Firstly, there will be an investment that building investment for papad making business. Its like all other types units or businesses. We need a building or a room with 5 meter width and 10 meter length. This for the establish a minimum size ‘papad’ manufacturing unit.
Approximately it will have the area of 600 square feet. If you are constructing the building or shed with GI sheet, the expense will be RS 250 for one square feet. So, you need about 1.5 lakh rupees investment to construct a building for this unit with above mentioned size.
If you are using two layer making machine . So you can set up a small warehouse, office room and stock raw material and final product within this area. If you are constructing building in your own land, at least, you should keep a distance of 10 meters from the land of anybody else. It is mandatory to keep such a distance in accordance with the Law of industrial purpose.
The second and most important investment is Machinery investment for papad making business. In the case of expenditure for machinery, approximately it will cost RS 2.25 lakh to set a two layer machine including Roller, Mixer and Making machine. The machinery investment will be on the bases of your requirement or project. For more details about machine pleas contact manufacturer.
Another important item of expense to establish a unit is expenditure on electricity connection and its work. Approximately, it costs RS 75000 for electric work for three phases. If you are using single phase connection, the costs for electric work will be about 50000 to 60000 rupees.
The costs for electricity connection depends on the area which we selected to built our plant. If connection line and power allocation is available at near to our building. We can access electricity connection with low cost starts from RS 10000. If the connection line is not available in our selected area. We will have an additional charge to access electric connection.
Besides these investments, we will have expenditure for paper clearance and transportation. The paper clearance expenditure for ‘papad’ manufacturing unit will be very low. Because it need only license from Panchayat or other local body as it is comes under FSSAI.
Profit making from papad making business
how to get the profit from papad making business will be show below. The profit will be earn on the bases of your production capacity. If you make 200 kg papad from a day will be achieve the profit of 6000 to 8000 indian rupee per day. It will be calculate on the bases of your marketing strategy.
The marketing strategy included method of selling, packing, and distribution. If you are mix 50 kg raw material the final product will get 65 Kg papad. Because 15 kg water also mix the raw material for mixing process. It should me make the additional profit from papad making business.
24 working days in month, So we calculate monthly profit on the bases of your production capacity. 200 kg per day multiply in to 24 is get in to 4800 kg papad from a month. So the profit from a month is equal to 144000 indian rupee or 192000 on the bases of marketing strategy.
Raw material for papad making business
The most important raw material for papad making business used to make ‘papad’ is urad dal powder (“uzhunnu”). All other ingredients for its making process are salt, baking soda to make ‘papad’ and oil. When mixing it, you have to add water too. Urad dal powder (Uzhunnu) is available in the market with the price of 60 to 90 rupees.
The quality of raw material will vary with its variation in price. When you starting a business, it necessary to keep the quality of raw material and product without any compromise. This quality assurance may create some difficulties for you at initial stage. It will be beneficial for the success of your business and stability in the market in long run.
The availability of raw material for ‘papad’ production is plenty in all over the world especially in India and Kerala too. It is available in all grocery stores in all most all towns. The baking soda to make ‘papad’ is mainly comes from Bombay and Gujarat and its distributors are available in all states in India.
Marketing tips for papad making business with machine
The main marketing tips for papad making business with machine are related with its branding and packaging. Firstly, at the time of packaging, it is very essential to select an attractive pack with printed name and emblem on the cover. Potential and scope of banding in business is very high and it will help to keep the quality. Popularity of the product and thereby it will enhance a smooth marketing procedure in future.
Another important area in marketing is the process of distribution. When we adopt direct marketing in distribution, we can increase our volume sales and quantity of production even though its profitability is low. By increasing quantity of production at larger scale we can increase the turnover of the company.
The market potential for ‘papad’ is very high. Because in all most all families, especially in Kerala, people are using ‘papad’ as side dish in every days. ‘Papad’ is a one of the important side dishes in the food culture of Kerala. And in South India also including in religious rituals of Hindu and all other people consuming papad. From the background of other religion also consuming it with their food. And it is very significantly using with dish at festivals and special occasions, Like marriage function and other parties. So, the market for ‘papad’ is very high and it will be perpetual and everlasting as it is a food product.