How to Start a Namkeen and Snacks Manufacturing: Introduction & Market Overview

How to Start a Namkeen and Snacks Manufacturing starts with understanding the tremendous growth potential of India’s snack industry. The namkeen and packaged snacks segment has emerged as one of the fastest-growing categories in the Indian food sector. With rising disposable incomes, busy lifestyles, rapid urbanisation, and shifting food preferences, both traditional namkeens and modern snacks have become everyday household essentials.

Across small towns and major cities, consumers are increasingly choosing hygienic, branded, and flavourful snack options. In recent years, the Indian snack market has expanded rapidly due to:

  • A major shift from loose, unbranded namkeen to packaged branded products

  • Growing demand for convenient, ready-to-eat snack foods

  • Expansion of modern retail chains, supermarkets, and online delivery platforms

  • Increasing popularity of authentic regional and local flavours

These rising trends make namkeen and snacks manufacturing one of the most promising and profitable small-to-medium-scale business opportunities in India.

1. Step-by-Step Guide to Start a Namkeen & Snacks Manufacturing Business

1. Conduct Market Research

Before starting, understand:

  • Which snacks sell most in your region
  • Competitors (local brands, small manufacturers)
  • Customer taste preferences
  • Market gaps — such as hygienic, well-packed, affordable snacks

Identify whether you want to focus on:

  • Traditional namkeens (sev, bhujia, chivda, mixtures)
  • Chips (potato, banana)
  • Roasted/ baked healthy snacks
  • Premium or regional specialities

2. Choose Your Product Line

Start with a few products and expand gradually. Popular options:

  • Sev & Bhujia
  • Mixture Namkeen
  • Moong Dal & Chana Dal
  • Peanuts (fried/roasted)
  • Potato & Banana Chips
  • Baked makhana & roasted snacks

Keep taste testing and get feedback to finalize recipes.

3. Prepare a Business Plan

A good business plan should include:

  • Estimated investment
  • Machinery & production capacity
  • Raw material sourcing
  • Packaging design
  • Market strategy
  • Distribution plan
  • Break-even analysis

This helps in cost planning and loan applications if needed.

To start a namkeen/snacks manufacturing business in India, you must complete the following:

1. FSSAI Registration or License

Mandatory for all food manufacturing businesses.

2. GST Registration

GST registration is required if your business turnover exceeds the GST threshold or if you plan to supply products to retailers and wholesalers.

3. Udyam (MSME) Registration

Useful to get government subsidies, benefits, and priority sector loans.

4. Business Registration

Register as Proprietorship, Partnership, LLP, or Private Limited Company.

5. Trade License

Issued by local authorities for operating a food manufacturing unit.

Protects your brand name and logo.

7. Pollution Control Board Approval (if required)

For units using fryers, exhaust systems, and large-scale heating equipment.

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3. Estimated Investment, Infrastructure & Machinery

1. Estimated Capital Requirement

Small-scale setup: ₹12–25 lakh
 Medium-scale setup: ₹30 lakh – ₹1 crore (depending on automation)

2. Infrastructure Requirements

  • 500–2000 sq ft of production space
  • Segregated areas for preparation, frying, cooling, and packaging
  • Ventilation, exhaust, and fire safety systems
  • Clean water supply and drainage
  • Storage area for raw and finished goods

3. Machinery & Equipment Needed

  • Dough Kneader / Mixer
  • Fryer (Batch/Continuous)
  • Slicer for chips
  • Cooling trays or conveyor
  • Oil filtration unit
  • Seasoning mixer
  • Weighing machine
  • Pouch packaging machine
  • Sealing machine
  • Storage racks & bins

Invest based on production capacity and automation level.

4. Business Model & Revenue Streams

You can earn through multiple channels:

1. Direct Sales to Retailers

Local kirana shops, supermarkets, and grocery stores.

2. Distributor Network

Sell in bulk to distributors covering multiple areas.

3. Online Sales

Sell through e-commerce, your website, and social media.

4. Corporate Orders

Supply snacks to offices, hotels, schools, and event organizers.

5. Private Labelling

Manufacture snacks for other brands under their label.

6. Seasonal Gift Packs

Festive special packs offering higher margins.

Marketing Strategies for Growth

1. Local SEO Optimization

Create:

  • Google My Business listing
  • Website or landing page

Use keywords like:

  • “namkeen manufacturer in India”
  • “snacks manufacturing business”
  • “best namkeen supplier”

Local SEO helps customers discover your brand easily.

2. Digital Marketing

  • Use Instagram, Facebook reels, and YouTube videos showing production quality.
  • Run paid ads targeting your local market.
  • Collaborate with food bloggers and local influencers.
  • Highlight hygiene, quality, and fresh ingredients.

3. Offline Marketing

  • Free samples to retailers
  • Attractive product displays
  • Discounts for first-time buyers
  • Tie-up with tea stalls, cafés, and general stores

Challenges in the Namkeen & Snacks Industry

  • High competition from local unorganized manufacturers
  • Rising costs of oil, spices, and packaging
  • Maintaining consistent taste & quality
  • Managing distribution and logistics
  • Need for strong branding to stand out

Growth Opportunities

  • Increasing demand for hygienic & branded Indian snacks
  • Rapid expansion of online food delivery
  • Growing appetite for healthy & baked snacks
  • Opportunities in Tier-2 and Tier-3 cities
  • Export potential in international Indian communities
  • Growth of modern retail and supermarket chains

Future Potential & Government Support

The Indian snack food industry is expected to grow steadily due to:

  • Changing eating habits
  • Lifestyle changes
  • Expansion of food delivery apps
  • Higher demand for ready-to-eat products

Government initiatives such as MSME schemes, food processing subsidies, and low-interest loans through banks make it easier for small manufacturers to expand.

Conclusion

Starting a namkeen and snacks manufacturing business in India is a great opportunity for entrepreneurs due to high demand and scalability. With the right planning, quality control, branding, and marketing, you can grow from a small local unit to a regional or even national brand.

By following this guide—covering investment, registration, machinery, marketing, and revenue models—you can lay a strong foundation for a successful snack manufacturing business.

ures, potato chips, banana chips, peanuts, and moong dal are the most in-demand products.

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