Business Ideas: If you want to start your business with less money by living in a village or small town, then ‘Papad Manufacturing Unit’ is a golden opportunity for you. This can be the most wonderful job for women. This can earn good income every month.
Papad Manufacturing Business: Making papad is not a new thing in our villages. This is a traditional art that has been going on for generations. Now it has become an organized village industry. The demand for papad as a crunchy, tasty and light snack is increasing not only in India but also in America, Canada, UK and Gulf countries. Khadi and Village Industries Commission (KVIC) has prepared papad manufacturing project profile under ‘Gramodyog Rojgar Yojana’, through which women and rural entrepreneurs can start their business with less money.
How much will the papad unit start?
Name of the project- Papad (PAPAD)
Total project cost- ₹2,00,000
1. Capital Expenditure:
land- Own
Building Shed (300 sq ft)- ₹60,000
Equipment (strainer, marble table, rolling pin, utensils etc.)- ₹40,000
Total expenses- ₹1 lakh
2. Working Capital
Working Capital- ₹1 lakh
Total project cost- ₹2 lakh
Annual production and sales estimates
As per the annual production and sales estimates, the total production capacity of the papad manufacturing unit is estimated to be around 272 quintals. If the average market price of papad is considered to be ₹ 4,000 per quintal, then total sales of about ₹ 10.87 lakh can be done in a year. That means overall annual sales from this business can be estimated to be around ₹ 13.5 lakh.
Complete details of expenses incurred in making papad
Raw material- ₹4 lakh
Packing and Label- ₹50,000
Wages (skilled and unskilled)- ₹ 4
Salary (Supervisor etc.)- ₹1.44 lakh
Administrative expenses- ₹20,000
overheads- ₹21,000
Other expenses- ₹25,000
Process of decreasing asset value- ₹7,000
Insurance- ₹1,000
Interest (loan and others)- ₹26,000
Working capital requirement and profit analysis
Fixed cost- ₹2,03,000
Variable cost- ₹8,84,000
Cycle on working capital- 1,08,700
estimated cost analysis
| capacity utilization (%) | 60% | 70% | 80% | 100% |
|---|---|---|---|---|
| fixed cost | 121.8 | 142.1 | 162.4 | 203 |
| variable cost | 530.4 | 618.8 | 707.2 | 884 |
| production cost | 652.2 | 760.9 | 869.6 | 1087 |
| estimated sales | 815.25 | 951.13 | 1087 | 1358.75 |
| gross profit | 163.05 | 190.23 | 217.4 | 271.75 |
| net profit | 156.00 | 183.00 | 210 | 265 |
Golden opportunity for women
This project has been specially designed for rural women. There is neither huge cost of machines nor the need for large space. Just good flour, right taste and attention to cleanliness and you can easily create a local brand.
Make in India and Vocal for Local will get a boost
The papad manufacturing unit is not only a step towards self-reliance, but also strengthens government campaigns like ‘Make in India’ and ‘Vocal for Local’. Today, brands like Lijjat Papad have proved that it is completely possible to reach the global market with domestic skills.
Must things before starting papad business
- Figures are approximate and may vary by region.
- Renting a building will reduce project costs.
- Loan facility is available from KVIC at low interest rates.
- You can increase sales by increasing the flavors of papad (urad, moong, rice, masala).
- Women can run the unit by forming SHG (Self Help Group).
Disclaimer: This article is for informational and educational purposes only. The information and details given here have been taken from kviconline.gov.in. Before doing business, do your own research and take advice from your financial advisor or concerned department before taking any investment decision.
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