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Essential Strategies Of A Paan Shop

by Tandava Krishna


India is a country of many traditions and we have a lot of them still being followed. Chewing paan after food is one of them. In many Hindu rituals, it is considered auspicious. The beetle leaves are offered as gifts for their good fortune symbol, in many places, it is eaten with sweeteners in festivals like Durga Pooja and Diwali. It is also offered to god while performing religious rites. Medical science says that consuming paan in small amounts is good for digestive health and helps to digest food easily. Once the paan was a symbol of royalty but it is the Bollywood that made it popular. We all have heard the legendary song by the legendary actor from the legendary movie Don, ‘Khaike Paan Banaras Wala’. The popularity of Banarasi paan shot up after this song and it’s up until now. There are many varieties of paans such as Maghai Paan, Saada Paan, Meetha Paan, Banarasi Paan, Silver Paan, Gold Paan, Rasmalai Paan, Chocolate Paan, Bangla Paan, Tambaku Paan, Misti Paan, Jagannath Paan, Kalkatti Paan, etc. Most of these are conventional while many have been adopted with time. The domestic paan and paan masala industry is annually growing at around 9% according to data by the International Market Analysis Research and Consulting Group. The government has its struggle with managing the paan shops and to permit licenses to open it, but once you are registered you are free to sell government-sanctioned products that are high in demand by the public.

Let’s have a look at how you can set up a paan shop in India:

Generate funds

This is amongst the first things to do. You are setting up a paan shop. It will require a principal investment. Get yourself sponsors who are willing to support a local business and have your back in tough times.

Find a suitable location

Having a paan shop near a posh colony is unlikely to bring you any profit. The best place to set up a paan shop business is near a restaurant or family dining, office, in the market, near a construction place, or in a public space where footfall is high. These are the places where people need a break from their work or routine and are more likely to visit your stall. You are also more likely to have regular customers in these settings.

License and Permit

To set up any shop in India you need to take certain permits such as a Business License, Resale Certificate, Business Name Registration or DBA Certificate, Certificate of Occupancy, Federal Tax ID, etc. To set up a paan shop of any scale, a license is a must. Make sure you have done your homework and have finished all the paperwork beforehand and have kept them handy and be ready to take rounds to government offices before setting up.


The paan shop business does not demand any high-end infrastructure. It is a business with low funding and low demands. All you need to have is a kiosk, a counter, few shelves and that’s it. You can set up your paan shop on the roadside or you can have a small space around the corner and arrange a big umbrella. You can also add a few small stools or chairs and extend your shed to these. This setting usually is good to go with.


If you are starting a paan shop business your main investment is the types of equipment. You need to have a few jars to keep snacks, foils, etc. You can also add a small refrigeration unit to keep these products intact for the whole day. These are all low-cost investments that can be used at other places too

Arrange Raw material

The paan shop business does not need a lot of spending in this sector too. The products that are used to make the paan is really cheap and easily available in the market. Have a set of people from whom you can buy your raw material daily and are reliable. You should not miss out on your profit just because you were careless while arranging your resources. You can always look for more affordable products in the market but do not compromise on the quality of the end product. Make sure your products have not crossed the expiry date and maintain the hygiene of your paan shop and area around it.

Go for variety

Along with the basic paan, you can experiment with paan flavors and types. There are very many types of paans such as sweet paan, fire paan, mint paan, . People are used to these beverages and will most likely buy it from you. These are easy to make and include cheap ingredients so there is also not time hassle and extra cost required. 

Have Accompaniments 

Although the paan itself is sufficient but with time the way it is consumed has changed and paan shops have a new meaning. It does not only sell paan. It sells cigarettes, paan masala, and a few chips and snacks are also available in these shops. Having biscuits, other local bakery items like puffs or cream rolls, chips are very common. Cigarettes are demanded by most of the people and have become synonymous with paan shops, so you can keep them as well.

Paan shop Business is a highlight in the unorganized business sector in India. People tend to leave their jobs to live a life of dignity and make money for themselves by setting up paan shops. There was a time when this business was looked down on but those days are gone. With our government asking the youth to be self-dependent, this desperate time has called for desperate measures, and the paan shop business is here to save us, again. To start any business, be it small or big, there is always a risk of losing out money or not making enough profit. But don’t let this fear come in your way of success. Many people have made their paan shop businesses to big establishments. You can look up to our Prime Minister for encouragement for this, enjoy the process. All the best!


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