Business Description

The snack manufacturing business in India is one of the fastest-growing segments of the food & beverage manufacturing industry. With changing lifestyles, rising disposable incomes, urbanization, and increasing demand for ready-to-eat and packaged snacks, this sector offers high-profit potential and sustainable growth.

From namkeen, chips, kurkure-style snacks, bhujia, sev, mixtures, roasted snacks, baked snacks, and traditional Indian snacks, the demand is continuously increasing across rural, semi-urban, and metro cities.

If you are planning to start a snack manufacturing unit in India, this detailed guide will help you understand investment, setup process, licenses, raw materials, machinery, profit margins, and marketing strategies.

Business Overview – Snack Manufacturing Business

What is Snack Manufacturing Business?

Snack manufacturing involves large-scale production of ready-to-eat snack food products using automated or semi-automated machinery. These snacks are packaged hygienically and distributed through wholesalers, retailers, distributors, supermarkets, online platforms, and institutional buyers.

Popular snack categories include:

• Namkeen & Mixtures

• Potato Chips & Banana Chips

• Kurkure-type Extruded Snacks

• Bhujia & Sev

• Murukku, Chakli, Mathri

• Roasted Peanuts, Chana & Makhana

• Baked & Healthy Snacks

Market Opportunity & Demand in India

India’s snack market is growing at 15–20% CAGR, driven by:

• Rising urban lifestyle

• Busy working population

• High demand for packaged convenience food

• Growth of e-commerce and quick commerce platforms

• Increased focus on hygiene & branded packaged foods

Key Demand Segments:

• Retail stores & kirana shops

• Supermarkets & malls

• Corporate offices

• Schools & colleges

• Online grocery platforms

• Railway & bus stations

Types of Snack Manufacturing Business Models

1. Traditional Namkeen Manufacturing

• Bhujia, Sev, Mixtures, Boondi, Chivda

• Very high demand in North & West India

2. Chips Manufacturing Unit

• Potato chips, banana chips, tapioca chips

• High consumption across India

3. Extruded Snack Manufacturing

• Kurkure-type snacks

• Requires extrusion machines

4. Healthy Snack Manufacturing

• Roasted makhana, chana, seeds mix

• Fast-growing premium segment

Investment Required to Start Snack Manufacturing Business

Machinery Required for Snack Manufacturing Unit

• Dough Mixer

• Namkeen Making Machine

• Extruder Machine (optional)

• Frying System / Continuous Fryer

• Oil Filter System

• Seasoning & Mixing Drum

• Cooling Conveyor

• Packaging Machine

• Weighing & Sealing Machine

Raw Materials Required

• Potatoes / Gram Flour (Besan)

• Rice Flour / Maida

• Edible Oil

• Spices & Seasoning

• Salt & Preservatives

• Packaging Material (Pouches, Boxes, Labels)

Snack Manufacturing Process Step-by-Step

1. Raw Material Selection

2. Cleaning & Washing

3. Dough Preparation

4. Shaping / Extrusion

5. Frying / Baking

6. Seasoning & Flavoring

7. Cooling

8. Packaging

9. Storage & Dispatch

Licenses & Legal Requirements in India

Mandatory Licenses:

• FSSAI License – Food Safety Certification

• GST Registration – For billing & taxation

• Factory License – From local authority

• Trade License – From municipal corporation

• MSME (Udyam) Registration – Optional but beneficial

• Pollution Control Certificate (if applicable)

Ideal Location for Snack Manufacturing Unit

• Industrial Area

• Food Processing Zone

• Semi-Industrial Zone

• Outskirts of Metro Cities

Location Requirements:

• Minimum 800 – 1500 sq ft area

• Water & electricity availability

• Proper drainage & ventilation

• Easy logistics connectivity

Profit Margin & Monthly Earnings

Average Profit Margin: 25% – 40%

Marketing & Sales Strategy for Snack Manufacturing Business

Offline Marketing:

• Distributor network

• Retail store tie-ups

• Wholesale supply

• Sampling campaigns

Online Marketing:

• Website + SEO

• Amazon, Flipkart, Jiomart listings

• Instagram & Facebook ads

• WhatsApp marketing

Branding Tips:

• Attractive packaging

• Unique flavors

• Affordable pricing

• Hygiene certifications

Challenges in Snack Manufacturing Business

• High competition

• Raw material price fluctuation

• Quality consistency

• Distribution management

• Shelf life control

Growth & Expansion Opportunities

• Launching own snack brand

• Franchise model

• Export market

• Private label manufacturing

• Institutional supply contracts

Why Start Snack Manufacturing Business in India?

• Evergreen demand

• Scalable business model

• High return on investment

• Growing packaged food culture

• Strong domestic consumption

Final Conclusion

The snack manufacturing business in India is a high-growth, high-profit manufacturing opportunity for entrepreneurs. With a moderate investment of ₹5–10 Lakhs, you can build a profitable snack brand with strong distribution and consistent quality.

With proper planning, hygiene standards, smart marketing, and efficient operations, this business can generate steady monthly income and long-term brand value.