Spices are used in every house to make sabzi & are also known as masala all over India.
The demand for spices in India is very high especially in North India & due to this demand masala business has become very profitable these days.
In today’s post, I will show you that how I am earning 20,000 per month, profit margin, expenses, required machines, & everything about masala making business.
Make sure to check bonus tip in the ending.
How to Start Masala Business
First, you need to select the appropriate place where you want to start, there are two places which are suitable for this business:
1. Home: As per me this is the best place to start masala making business, you will need two rooms, one to store raw material & other to store machines.
2. Farm: If you have less space in your house then you can also start this business at your farmhouse, make sure that your farmhouse has wide and clean roofs & rooms.
Buy Machines
This is the most important starting point where you need to be cautious because if you do a mistake in buying the right machines then you will regret it all the year.
Here are the machines which you need to purchase to start masala making business:
1. Blower Hammer Pulverizer: The Pulverizer which is shown in the below image is used to only grind chillies. This pulverizer costs 13,000 to 15,000 rupees depending upon the size, I chose the biggest size which can grind 30 kg to 40 chillies per hour.
Along with this, you need to purchase a separate 3 horsepower copper winded sheet body motor to run this pulverizer because we don’t get a motor with a pulverizer & it’s better to use a good motor with this.
I have purchased motor of Singla company for 10,000 and this motor is working fine from the last 3 years.
2. Stone Chakki: I have tried to grind turmeric and coriander with a pulverizer but I was unsuccessful to grind properly so I purchased two separate stone chakki one for turmeric & one for coriander.
These stone chakki will cost you around 13,000 to 15,000 thousand each along with good motors.
Probably you are thinking that can I grind turmeric & coriander in one stone chakki?
Yes, you can but there is a problem let’s say first you grind turmeric and then you start to grind coriander now the coriander will be very yellow in color rather than green & the same will happen when you grind it turmeric again after coriander.
So it’s better to have to stone chakki’s.
3. Sealing Machine: Sealing machine is required to seal spice packaging to make it look beautiful.
The sealing machine which you can see in the above image cost me around 2,500 rupees. Make sure to buy wide machines so that wide polythene can be easily sealed.
You can also purchase a machine at a higher price but for starting it’s okay & to enhance the beauty of sealing you can double seal polythene =.👍
4. Weighing machine: Weighing machine is required to weigh different spice in 250grams, 500grams, & 1kilogram.
This can cost you around 2,000 rupees which can weigh 20 kg.
I have purchased two weighing machines one with a capacity of 25 kg and one with 100 kg.
Now, you are thinking that why I have purchased a 100 kg weighing machine? The reason is I directly order spices from Jaipur Mandi, so when my order arrives, I manually weigh the spice bags because I don’t believe in their weighing scales.
One kg spice up or down during weighing can decrease or increase our profit.🤠
Raw Material
There are mainly three raw material which is required for masala business:
1. Whole Red Chillies
Trust me or not but the success of your masala making business totally depends upon red Chillies.
If your chilli powder is not able to make the sabzi red in texture then your business can be totally ruin.
See the above chillies, never try to buy small chillies because these are too hot nobody will purchase, always try to purchase long chillies which are medium in taste.
People love to purchase chillies which are medium in taste.
2. Whole Turmeric
Like chillies, you also need to purchase good quality whole Turmeric from the Mandi.
For grinding purposes, you need to purchase the whole turmeric which is smaller in size like a little finger.
By mistake, I took a close image of this turmeric that’s why these are looking big but in actual these are small in size.
3. Whole Coriander
Whole Coriander is the third product which you need to purchase in this business.
It’s very important to buy green color coriander, avoid purchasing brown coriander.
The more green, the more the new coriander. The Brown or black color of coriander shows that it’s old around 1 – 2 or more years.
So you need to purchase green and fresh coriander.
These above-mentioned spices are the main product in the spice business.
But there are other spices which are sold whole like black pepper, sabzi masala, garam masala, cardamom, & cloves.
Packaging Material
Attracting packaging helps your products to grab people’s attention. Mostly powdered spices are packed in stuff which is made of plastic:
1. Plastic bags: These are transparent bags made from processing plastic and are widely used for the packaging of food.
You need to purchase a size of 250grams, 500grams & 1 kill gram.
2. Plastic Containers: Plastic containers are cylinder-like transparent structures made from plastic.
Using plastic boxes for packaging powdered spice can attract people to buy products.
No doubt plastic boxes are costlier than plastic bags and can cut down profit.
3. Carry Bags: Carry bags are given to consumers who buy spices more than 3 kg, these carry Bags should be steady and waterproof.
This will also help you to grab more attention in your business, make sure to tell the printing owner to properly print your business name with address & products.
4. Big Drums & Bowls: As shown in the below image these are the big Drums each with a capacity of 15 – 20 kg powdered spices.
I use these drums to store grinded spices like chilli, turmeric, & coriander for normal or emergency use.
These drums maintain the quality & freshness of the spices if we are storing spices for 20 – 30 days.
When I started my total investment was one lakh rupees including, machines cost, raw material cost & packaging cost.
Places to Buy Spices
There are two places from where you can buy spices:
1. Farmers: This is the first way through which you can directly purchase spices from farmers but it’s a little bit tough for a normal person to go to farmers and ask for spices.
2. Mandi: Mandis are the places where many traders deal in a variety of agricultural products like spices, food grains, wheat, pearl millet, etc.
To buy spices you need to visit big mandis which are mainly found in a state’s capital.
As I am from Rajasthan so I purchased spices for my masala business from Jaipur (state capital) mandi.
First, you need to visit these mandis and check the latest prices, then you need to find a broker which is available in all the mandis available in India.
A broker is a person which acts as a middle man between you and Mandi shop owners.
The brokers will help you to find the right shop, products, and quality.
After selecting and purchasing the spices, take and save the phone number of the brokers on your mobile.
Tell the brokers about your starting and the type of products which you want. Now you can easily place an order through the brokers and make an online payment, & you will receive your spices at your doorstep through transport service.
I also order my masala like this, this process is an easy, convenient, and less complex process. 👍
How much masala to buy in starting?
When I started this business the first time I bought 40 kg of whole chillies, 40 kg of whole turmeric & 50 kg while coriander.
Starting with less is good, today also I maintain this quantity when I place an order because I can easily sell this quantity in 15 days.
Storage of Spices
Storage of both the raw spices and the powdered spices is very important to maintain the purity & freshness of your product.
The place where you are storing spices should be clean, dry, cement floored, free from insects, rats free, away from direct sunlight, moisture-free, & hygienic.
The whole spices should be stored in a separate & away from the final product.
Profit Margin in Masala business
The profit margin can vary from 30% to 100% depending upon the quality of raw material you are purchasing.
For example, I am using very good quality raw material for making masala and the profit margin is 25% to 30% in chillies, 100% in turmeric & 50% in coriander for me.
On average, we can get a 50% – 60% profit margin in the masala business but it can decrease if you are selling wholesale to shopkeepers.
Where to sell Masala
Probably you doubt that I have done everything right now where to sell my end product i.e grinded masala?
I understand your concern, I was thinking the same when I started this business, here are the ways and people, whom you can sell your spices:
1. Your Relatives & Friends: Every person has at least 10 friends & 10 relatives. You can show your masala to these people, & request them to use your masala in their house & I know they will not say no to you.
If we assume that each family is consuming 2 kg of masala every month then 20 families ( 10 friends + 10 relatives ) will need 40 kg of masala every month.
Good News! Your 40 kg of masala is booked for every month.👍
2. Shopkeepers: These are the people who will boost up your masala making business.
You need to contact shopkeepers especially in villages and request them to sell your masala.
If the quality of your spices is very good & your price is okay for them they will easily sell your masala.
3. Sweet makers and marriage homes: During every marriage, the owner of the house has to call a sweet maker to make sweets and sabzi for marriage.
You can make contact with these sweet makers and tell them I will give your this much profit margin, if everything goes right including the quality of your masala then they will use your product.
4. Renting a shop: I will not advise anyone to rent a shop in starting, first give masala to relatives, friends, shopkeepers, & sweet makers then only think about renting a shop in the city.
Because in most of the Indian cities rent of a shop starts from 10,000 rupees which I don’t think anyone will be able to pay in starting.
Marketing of Masala Business
When it comes to the marketing of Masala business no one tells the right way because everyone is copying each other.
Here are some of the golden ways through which you can do marketing of your spices in the right way:
1. Give Samples: You can make samples of your masala especially chilli powder in small pouches.
You need to freely distribute these pouches to shopkeepers in your area, people who go in front of your shop, your friends, etc.
People will make sabzi of your sample & once they found that the quality of your prices is better than other & cheap as well, then they will automatically come to your shop to buy masala.
2. Print name on poly bags: For better marketing, you need to print your masala business name on poly bags and carry bags.
By doing this your reach will increase because in India most people bring carry bags with them when they visit markets.
If they are carrying your bag then in any way people will see this carry bag & indirectly your business name.
3. Giving ads in newspapers: You can also give your ads in newspapers in your area, this will help people to know that your business exists.
Along with this, you can also list your masala making business on Amazon, eBay, Flipkart & other e-commerce sites.
Things to Remember
Here the things which I have experienced in this business, these will help you to success your business:
1. Never compromise with quality: Quality is the king, if you are compromising with the quality of your masala then one day your business will shut down!!
2. Sieving: Always try to do sieving of coriander and turmeric to remove any kind of big particle.
You do not need to sieve chilli powder because it’s automatically get sieved in a pulverizer.
3. Avoid ordering big quantities: Many people don’t know that red chillies start to fade off their red color after two months, this can impact the color of the chillies.
So always try to order spices in limit which you can easily sell in one month.
4. Remove impurities: Many impurities come with turmeric & chillies especially pebbles, so make sure to remove these pebbles before grinding.
This will be beneficial for both your consumers and pulverizer.
5. Always keep backup: Always you need to reserve some powdered spices in stock especially in the rainy season because in the rainy season, the percentage of moisture increases in the rainy season.
And if the rain continues for five days you will not be able to dry chillies on the roof due to rain.
That’s why always keep stock of at least 10 kg in your store room.
Name ideas & tagline for masala business
Here are some names & tagline for masala business:
- Pavitaram masale.
- Pure Spices.
- Nisha Masale.
You can use other names like your own name, any Sanskrit name, your city name, etc. but make sure to check that the name which you are using is not registered or trademark of any company in India.
Tagline for masala business:
- Our Purity, Your Pride.
- Pure than you think.
- Enhanced by Nature.
- From the house of nature.
- We believe in Purity.
- We make food tastier.
👉 Now, main question how I am earning 20,000 per month with this business?
I have my own shop in the city where I can sell 8 – 10 kilograms of masala on daily basis & through this I am easily making 20,000 per month.
👉 Which are the license required to start masala business?
The main license which you will require to sell masala is fssai license.
👉 Is masala business profitable?
Yes, it’s profitable but it depends upon your product quality and hard work.
Bonus Tip
Tip 1: Grinding chillies is very hard and causes discomfort, so to avoid any kind of discomfort during grinding of chillies you can grind these in the early morning.
This will not cause sneezing and itching anywhere on the skin.
Tip 2: Sometime many intelligent traders put 50kg of chillies in one bag by spray water and pressurising for more profit, make sure to upfront tell the traders that you one chilli bag should not weigh more than 30 kg. 👍
I have tried my best to explain & hope you will like and share with your friends.
Thanks 👍
Disclaimer: All the information provided in this post is for educational purposes only. This site or I will not be responsible for any profit or loss in any business. Please do your own research before starting any business.