How to Start Business of Pan Masala Business

It can be initiated from anywhere across the mainland of India. Possibly the greatest advantage that this business can boast of is that a considerable percentage of Indian customers would Consume pan masala regardless of their probable disadvantages. It is reported that some 80% of Indians have a taste for it, making it one of the highest-selling products in the market.

Scour any street corner, and it will definitely not have to look for a pan-masala selling shop. Its importance is further proved as one cannot even come by a food shop across every three corners without one being available. The increasing number of tobacco and pan masala business shops almost reaches a million now.

Market analysis and planning are indispensable to both understand market dynamics and generate reports, analytical data, and insights capable of competing with such players as Rajnigandha to establish a pan masala business. Starting any pan masala requires the raw materials, machinery, as well as licenses. At NPCS, we provide all necessary information to ensure a smooth and successful launch of your pan masala business.

Visit this Page for More Information: Start a Business in Tobacco and Pan Masala Industry

Market Evaluation for the Pan Masala Business

In 2021, the Indian pan masala market reached a value of INR 41,821 Crore and is projected to grow at a CAGR of 3.88% from 2022 to 2027, reaching INR 53,081.5 Crore by 2027. The market has been buoyant to all challenges, inclusive of COVID-19. All the reports deal with the direct and indirect impact of the pandemic, crucially for those entrepreneurs who plan to enter the pan masala. 

Raw Materials Required for the Business of Pan Masala 

The manufacturing business of pan masalas consists of manufactures categorized under two heads: 

• Normal Pan Masala 
• Sweet Pan Masala 

If you are planning on making sweet pan masala, you will have to get a different set of ingredients. However, the core raw materials required to start any pan masala are: 

• Black cutch (Katha) 
• Cardamom 
• Betel nut 
• Flavoring substances 
• Natural aromatic substances 

With increasing demand, additional ingredients are added to the range of finished pan masala . These are chocolate, sugar-coated fennel, saffron, and gulkand. This increases the value of the products in the market and is a good strategy to attract more customers. 

Related Business Plan: Pan Masala

Machinery Required for the Pan Masala Business

However, investment is essential in this business. But, for small-scale entrepreneurs, they could either go for the manual machines for packaging to cut down initial expenses. 

Types of Machines for a Pan Masala Business 

1. Manual Packaging Machine – Most suitable for small pan masala setups. 
2. Semi-Automatic Machine – This machine can produce more of the product within limited manpower. 
3. Fully Automatic Machine – For large-scale pan masala manufacturing establishments. 

A small setup also needs a packaging machine. You can buy this machine for as low as a few lakh rupees, making it the most important investment in pan masala.

Related Feasibility Study Reports: Pan Masala, Tobacco, Zarda & Kimam

Licenses and Registrations Required for the Pan Masala Business

Starting the pan masala requires obtaining various registrations and approvals.

• • Excise Duty Registration – Registration with the Central Excise Authority is mandatory.
  • Monthly Excise Duty Payment – Excise duty must be paid in advance based on the manufacturing capacity.

• Licenses for Pan Masala Business: 

• • 2008 Rules for Packaging and Labelling of Tobacco Products.
  • Food Adulteration Prevention Act. 
  • Food Safety and Standards (Packaging & Labelling) Regulations, 2011. 

For your pan masala, it is essential to comply with all licensing requirements to avoid legal complications.

Read Similar Articles: TOBACCO AND PAN MASALA

Land and Location for the Pan Masala 

The space requirement depends on the scale of the pan masala.

• Small-Scale Business – Minimal space (a few hundred square feet) required.
• Large-Scale Business – Manufacturing and storage require 1000 to 2000 square feet. 

An ideal location would facilitate the smooth running and better reach of your pan masala into the market.

Related Book: Manufacture of Pan Masala, Tobacco and Tobacco Products. 2nd Revised Edition

Challenges in the Pan Masala Business

Though the market is nonetheless growing, pan masala is hit with many challenges:

• Health Awareness – Awareness of the ill effects of pan masala is making a dent in demand marginally.
• Product Innovation – Productions of pan masala are experimenting with the introduction of unique flavors and attractive packaging in sustaining market growth.
• Government Regulations – Enormous hindrances in their regulatory protocols against operations and advertisement of the pan masala business. 
• Competitive Market – Global leaders such as Rajnigandha and Vimal own the Pan Masala industry, making it almost impossible to enter it.

New entrants must focus on innovative marketing, quality products, and compliance with regulations to survive.

Youtube Link: Pan Masala Sada | Meetha & Zarda | Mrket Survey | cum Detailed Techno Economic Feasibility Report

Conclusion

Starting a pan masala business takes substantial planning, market research, and licensing. The entrepreneur faces numerous challenges related to health issues, chances of adulteration, and legal barriers. Any lack of concern regarding product quality could lead to the cancellation of the license or closure of the concern.

NPCS provides detailed reports on all sectors, including the pan masala one. Our expert team compiled thorough industry insights for an entrepreneur to land on a good decision. If you have any doubts regarding the pan masala plan, feel free to get in touch with us for expert help.