Factors for deciding location of plant:

01. Availability of manpower
02. Access to raw material
03. Access to market

Here are few ideas for food manufacturing plants which would require investment of 25 to 50 Lakhs:

Idea 1: Flour Mill

  • India is the 2nd largest producer of food grains globally.
  • Flour is used on daily basis in Indian households to make flat breads such as roti, parantha or naan.
  • Flour is also used as a major ingredient in manufacturing various food products such as biscuits, cakes, pan bread, muffins, buns, golgappas (also known as panipuri), etc.

A food business operator can start this business in both rural and urban areas. The business can be started in a rented building. To set up a small processing unit, one may require at least 3000 sq. mtrland.


A food processor can start a small scale manufacturing plant by installing very basic machinery. The total machinery cost range from 14, 00,000 INR to 35, 00,000 INR.

Idea 2: Tomato Sauce Manufacturing Plant


The main reason for tomato sauce becoming a popular product is its extensive use as a condiment. It is commonly eaten along with sandwiches, pizza, burger, pasta, noodles, etc.


Tomato based units should be located, surrounded by available tomato growing areas and skilled manpower. For a small unit, at least 500 sqmtr of land is required.


Total cost of machinery installation can range from 3.5 lakhs to 10 lakhs, depending upon the size of the manufacturing unit.

“Food is the most required product since human kind came into existence. Modern era looks for quality food products. Therefore demand for food in the market is perennial.”

Idea 3: Roasted Rice Flakes

Roasted Rice Flakes


This product has tremendous scope. It can be used as a snack or light food. This can easily attract both small children and elders. A good quality product in attractive pack will give a boost in marketing the product.


It is estimated that a land of 250sqm is required with 125sqm with buildup area.


A small manufacturing unit will require basic machinery. The total cost for machinery can range from 4 lakhs to 7 lakhs.

Idea 4: Desiccated Coconut Powder


Being a mass consumption item, desiccated coconut has a good market. In Kerala coconut is the major ingredient used in the preparation of breakfast, lunch and dinner. Desiccated coconut may find good market in areas where coconuts are not produced particularly in Northern India.


Coconut based units should be located, surrounded by available coconut growing areas and skilled manpower.


The total cost of machinery for a small scale manufacturing plant can range from 10 lakhs to 15 lakhs.

Idea 5 : Papad Manufacturing


In India, Papad has a vital place in every meal. It is highly served or accompanied either as a snack, chaat or with main course recipes. It will find good market in all over India.


The plant should be located in region where raw material and manpower is easily available.


The total cost of machinery for a small scale manufacturing plant can range from 6.5 lakhs to 10 lakhs.

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