How to Start a Cashew Business in India?

Before you jump into the how-to, it’s essential to understand the different ways you can enter the cashew market.

• Raw Cashew Nut Trading: This is a low-investment model where you buy raw cashews directly from farmers and sell them to large processing units. It requires strong networking skills but bypasses the complexities of processing.
• Small-Scale Cashew Processing Unit: This is a popular model where you set up a small unit to process raw nuts into edible kernels. You can then sell these to wholesalers or retailers. This model offers higher profit margins but requires a moderate investment.

• Retail & Branding: In this model, you process and package cashews under your own brand name and sell them directly to consumers through supermarkets, online platforms, or your own retail stores. This requires a strong marketing and branding strategy.
• Value-Added Products: Beyond just plain cashews, you can diversify your business by making value-added products like flavored cashews, cashew butter, cashew milk, or confectionery. This model offers the highest profit margins but also requires specialized machinery and expertise.

This comprehensive guide will show you how to start a cashew business from scratch.

Step 1: Do Your Market Research

Start by understanding the cashew market:

• Target Market: Are you selling to wholesalers, retail consumers, or export markets?
• Demand Trends: Look into rising demand for flavored, roasted, organic or gift-pack cashews .
• Competitor Analysis: Study top players like Go Nuts, Nutraj, Happilo and local suppliers. Analyze their pricing, packaging, and distribution strategies.
• Pricing Benchmark: Compare wholesale rates for raw and processed kernels (e.g., W-320 costs ~Rs. 800–Rs. 1,000/kg).
• Product Positioning: Are you offering low-cost cashews or premium grades?

Output: Identify a USP (Unique Selling Proposition) and target customers (local, luxury, health-conscious, vegan, etc.)

Step 2: Create Your Business Plan

A well-structured business plan is the backbone of your cashew business. It should include:

• Executive Summary: A brief overview of your business idea.
• Business Model : Your chosen model (e.g., small-scale processing, retail).
• Market Analysis: Findings from your market research.
• Financial Plan: A detailed breakdown of startup costs, working capital, and projected revenue.
• Marketing Strategy: Your plan for reaching customers.
• Team & Management: Who will run the business?

Step 3: Choose Location & Source Raw Nuts

Pick a place near cashew-growing areas like Kerala, Karnataka, Maharashtra, Odisha, and Goa.

• This reduces transport costs for raw nuts.
• Make deals with local farmers or traders to get a steady supply of raw cashew nuts.

Step 4: Set Up Facility & Machinery

The heart of your cashew business is your processing unit. You will need to procure the right machinery, which includes:

• Cashew Nut Boiler: To steam the raw nuts.
• Cutting Machine: To cut the hard outer shell.
• Cashew Kernel Roasting Machine: To roast the kernels.
• Peeling Machine: To remove the inner skin (testa).
• Grading Machine: To sort the kernels by size and quality.

Cost: Rs. 10–Rs. 25 lakhs for a small unit (can be less if you buy semi-automatic machines)

Step 5: Cashew Processing Unit: Equipment & Process

Setting up an efficient cashew processing unit is crucial for a successful cashew business. Here’s a closer look at the equipment and the process:

• Boiling/Steaming: A steam boiler is used to steam the raw nuts. This process makes the shells soft and easy to crack, and it also separates the kernel from the shell.
• Shelling/Cutting: After boiling, the nuts are fed into a cutting machine that cuts the shell without damaging the kernel inside.
• Drying : The shelled kernels are then dried in an oven to reduce their moisture content.
• Peeling: A peeling machine uses air pressure to remove the thin, brown skin (testa) from the kernel.
• Grading: The final step involves a grading machine that sorts the kernels by size, color, and quality. Common grades include W-180 (King of Cashew), W-240, W-320, etc.

After this, the nuts are ready for packing and selling.

Step 6: Focus on Good Packaging & Branding

Good packaging keeps cashews fresh and builds brand trust.

Packaging Tips:

• Use vacuum or zip-lock pouches
• Print expiry date, weight, batch no., FSSAI license, and storage info
• Try premium or eco-friendly packs for gifting or exports

Branding Tips:

• Choose a simple, memorable brand name and logo
• Highlight features like “W-320 Premium Cashew” or “No Preservatives”
• Add QR codes linking to your website or Instagram

Step 7: Start Selling – Offline and Online

You now have your product ready—now it's time to sell.

a. Offline Sales Channels:

• Wholesale Buyers – Distributors, APMC markets
• Retail Shops – Dry fruit stores, general provision shops, supermarkets
• Bakeries and Sweet Shops – Many use cashews in their products
• Hotels and Caterers – Supply in bulk for wedding season, festivals
• Corporate Gifting Agencies – Supply festive gift boxes during Diwali, Holi, New Year

How to Get in:

• Offer free samples to shop owners and restaurant kitchens
• Give discounts for first bulk orders
• Use attractive display trays or boxes for retail counters

b. Online Sales Channels:

• Marketplaces:
  • Amazon, Flipkart, BigBasket, JioMart (register as a seller)
  • Create product listings with high-quality photos and customer reviews
• Social Media:
  • Use Instagram, Facebook, and WhatsApp Business
  • Share behind-the-scenes videos, customer feedback, packaging shots
  • Run festive offers and limited-time deals
• Your Website:
  • Build a basic e-commerce website with product pages, secure payment options, and shipping integrations
  • Add a blog or recipe section to improve SEO and customer engagement

Below are the essential licenses and legal setup required to start a cashew business in India:

Effectively promoting your cashew products can help increase sales, build brand recognition, and establish loyal customers. Here are some practical and unique strategies:

1. Festive Gift Packs – Design attractive gift packs for festivals like Diwali, Rakhi, Eid, and Christmas. Use premium packaging, include personalized notes, or offer limited-edition flavors to make them more appealing for gifting purposes.
2. Combo Offers – Bundle cashews with other nuts or snacks, such as almonds, pistachios, or dried fruits. You can also create themed combos like “Healthy Snack Pack” or “Office Snack Kit” to cater to specific customer needs.
3. Leverage Customer Reviews – Encourage satisfied customers to leave detailed Google or social media reviews. Share these testimonials on Instagram, Facebook, and your website to build trust and credibility among potential buyers.
4. Influencer Collaborations – Partner with local food bloggers, chefs, or micro-influencers who specialize in healthy eating or snacks. They can create recipe videos, unboxing content, or taste tests that showcase your cashews to their followers.
5. Participate in Events – Set up stalls at food fairs, farmers’ markets, and trade expos to interact with potential customers. Offer free tastings, branded samples, or small giveaways to attract attention and generate leads.
6. Recipe Integration – Share simple recipes that incorporate your cashews, such as desserts, granola bars, smoothies, or savory dishes. Post these on social media, YouTube, or your website to inspire buyers and show the versatility of your product.
7. Loyalty Programs – Implement loyalty programs like “Buy 4 packs, get 1 free” or exclusive discounts for repeat customers. You can also create a referral program where customers earn rewards for bringing in new buyers.
8. Online Presence & E-commerce – Build a strong online presence through platforms like Instagram, Facebook, and IndiaMART. Offer home delivery, seasonal promotions, and easy online ordering to reach a broader audience.
9. Custom Branding & Packaging – Invest in eye-catching, eco-friendly packaging with your brand logo. Highlight product benefits such as “premium quality,” “freshly roasted,” or “no preservatives” to attract health-conscious customers.

• B2B Sales: Target B2B clients like hotels, restaurants, and catering services. Cashews are a staple in the food industry, and these clients can provide stable, large-volume orders.

Yes, a cashew business is generally very profitable in India.

Note: Cashew business can be profitable with smart sourcing, efficient processing, and targeted marketing.

Starting a cashew business in India comes with its own set of challenges, but with careful planning, you can overcome them.

• Raw Material Sourcing: The price and availability of raw cashews can fluctuate. Overcome this by building strong relationships with a network of reliable farmers or suppliers and considering long-term contracts.
• Capital Investment: The initial cost of setting up a processing unit is high. You can mitigate this by seeking financial assistance from government schemes or bank loans specifically designed for MSMEs in the food processing sector.
• Competition: The market is competitive with both large players and small local businesses. You can stand out by focusing on a niche, offering superior quality, or creating a unique brand story.
• Quality Control: Maintaining consistent quality is paramount. Implement a strict quality control system at every stage of processing to ensure your products meet consumer expectations and food safety standards.

Preparing Your Cashew Business for Success

Success in the cashew business hinges on preparation and a commitment to quality.

• Build direct relationships with local farmers or cooperatives, sign long-term procurement contracts, and explore imports during shortages to stabilize supply and cost.
• Utilize schemes like PMFME (Pradhan Mantri Formalisation of Micro Food Enterprises) under the Ministry of Food Processing Industries (MoFPI) for financial aid, training, and marketing support, and apply for MSME loans through banks or SIDBI to fund machinery, working capital, and expansion at lower costs, reducing financial burden and boosting business growth.
• Differentiate your business by targeting premium segments, focusing on quality packaging, storytelling, organic
  atural branding, or flavored/value-added cashew products.
• Implement HACCP and FSSAI-compliant quality checks, train staff, and invest in standard processing equipment to ensure uniform quality and food safety.