How to start a paan shop in Andhra Pradesh (2026): investment, profit and licences
A paan shop in Andhra Pradesh needs about ₹69,000–₹7.4 lakh to set up, depending on the format. Run well in a city like Vijayawada, it typically nets ₹26,500–₹95,000 a month. The numbers below are India-wide research rescaled to Andhra Pradesh's own wages, shop rents, power tariffs and street prices.
How much investment do you need in Andhra Pradesh?
- Cheapest start
Roadside gumti / cart
Tin box or pushcart with paan tools and glass jars. Cheapest start, few drinks, eviction risk.
Setup cost₹69,000Suggested budget (with working capital): ₹83,500 Small paan shop (40–80 sq ft)
Rented counter with a paan slab, shelves and a cooler. Owner plus one helper.
Setup cost₹2.5 lakhSuggested budget (with working capital): ₹2.7 lakh
Paan parlour
100–200 sq ft with a display chiller and seating. Premium paans, bigger bills, 2–3 staff.
Setup cost₹5.9 lakhSuggested budget (with working capital): ₹6.3 lakh
Tobacco-free paan franchise kiosk
Brand kiosk with a set menu and brand pull, plus royalty. Highest setup.
Setup cost₹7.4 lakhSuggested budget (with working capital): ₹7.8 lakh
How much profit can you make in Andhra Pradesh?
A well-run paan shop in Andhra Pradesh typically nets ₹26,500–₹95,000 a month in a mid-size city: about ₹67,500–₹2.2 lakh in the metro and ₹10,500–₹46,500 in a small town. A casually run one can make far less or lose money.
| City | Net profit per week | Net profit per month |
|---|---|---|
| Visakhapatnam | ₹15,534–₹51,780 | ₹67,500–₹2.2 lakh |
| Vijayawada | ₹6,081–₹21,890 | ₹26,500–₹95,000 |
| Narasaraopet | ₹2,386–₹10,738 | ₹10,500–₹46,500 |
Ranges are for a well-run business of the typical format in each city size, from public sources and estimates. Your results depend on location and how you run it.
What changes in Andhra Pradesh
The researched local factors that move this business’s numbers.
| Here | India | vs India | |
|---|---|---|---|
| Minimum wage, monthly | ₹12,647 | ₹12,500 | +1% |
| Unskilled day wage | ₹600Estimate | ₹500 | +20% |
| Shop rent, metro (per sq ft/month) | ₹90Estimate | ₹150 | −40% |
| Shop rent, mid-size city | ₹50Estimate | ₹60 | −17% |
| Shop rent, small town | ₹18Estimate | ₹25 | −28% |
| Commercial power, per kWh | ₹9Estimate | ₹9.5 | −5% |
| Commercial LPG cylinder | ₹3,070Estimate | ₹2,810 | +9% |
| Petrol, per litre | ₹118 | ₹102 | +15% |
| Cup of tea / coffee | ₹12Estimate | ₹12 | ≈ |
| Simple meal | ₹90Estimate | ₹80 | +13% |
| Men's haircut | ₹100Estimate | ₹100 | ≈ |
| Milk, 1 litre | ₹58Estimate | ₹60 | −3% |
| Bread loaf | ₹45 | ₹45 | ≈ |
| Factor | Typical value in India | Source |
|---|---|---|
| Minimum wage, unskilled shops (peon/helper), Zone I | ₹12,647/month (basic ₹3,700 + VDA ₹8,947), 1 Apr – 30 Sep 2026 | dcpsol.com |
| Minimum wage, unskilled, Zone II | ₹12,317/month | dcpsol.com |
| Minimum wage, skilled (salesman/electrician), Zone I | ₹13,467/month; manager ₹14,504 | dcpsol.com |
| VDA revision cadence | Every 1 Apr and 1 Oct (Oct 2026 revision expected; not retrieved) | ascent-hr.com |
| Typical informal helper pay | Vizag ₹11k–15k; Vijayawada ₹9k–13k; towns ₹7k–10kEstimate | Est.: national presets |
| Casual unskilled day wage, T2 | ₹600/dayEstimate | Est.: legal floor ≈ ₹486/day (₹12,647/… |
| Shop rent T1 Visakhapatnam | ₹90/sq ft/monthEstimate | Est.: below Hyderabad/Chennai; no repo… |
| Shop rent T2 Vijayawada | ₹50/sq ft/month (Besant Road/MG Road higher)Estimate | Est.: national T2 band; capital-region… |
| Shop rent T3 Narasaraopet | ₹18/sq ft/monthEstimate | Est.: national T3 band |
| Commercial electricity (LT-II), effective | ≈₹9.0/kWh averageEstimate | mercomindia.com |
| Commercial LPG 19 kg | ≈₹3,070Estimate | goodreturns.in |
| S&E registration | Within 30 days via integrated Form-A; Form C certificate displayed; auto-renewal by self-certification | greythr.com |
| S&E fee | ≈₹125 (no staff) / ₹200 (1–5) / ₹300 (6–10)Estimate | Est.: unverified guide figures summari… |
| Municipal trade licence | Est. ₹500–5,000/yrEstimate | Est.: no schedule retrieved |
Festivals and demand
- Deepavali (about 8 Nov 2026) · Sweets, crackers, clothes up 2–3 weeks
- Karthika Masam (about Nov 2026) · Many Hindus go vegetarian for the month; non-veg eateries −20–40%; temple and river-bath trade up
- Christmas (25 Dec 2026) · Bakeries up; sizeable Christian community in coastal districts
- Sankranti (Bhogi, Sankranti, Kanuma) (13–16 Jan 2027) · Biggest festival: clothes, sweets, cockfight-fair crowds in Godavari districts; cities empty for 3–5 days as people go home
- Eid al-Fitr (about 10 Mar 2027) · Haleem and evening food demand in Muslim areas (Kurnool, Guntur)
- Ugadi (about 8 Apr 2027) · Ugadi pachadi ingredients, clothes; new-year purchases
Licences and rules
Rules vary by state and city: confirm with your municipal office.
- FSSAI basic registration (₹100/year) for paan and food items
- Shop & Establishment registration for a rented shop
- Municipal trade licence (₹500–5,000/year)
- Street vending certificate for a gumti or cart (Street Vendors Act 2014)
- MRP rules: no selling packaged drinks above MRP, no 'cooling charge'
- Shop & Establishment registration (AP Shops & Establishments Act 1988), Form-A via MeeSeva/Labour portal · Fixed by headcount (approx. ₹125 none, ₹200 for 1–5, ₹300 for 6–10, unverified); renewal by self-certification + online fee · Labour Department
- Municipal trade licence (Vijayawada/GVMC etc.) · By trade and area (est. ₹500–5,000/yr for small shops) · Municipal corporation
Simulate a week before you invest
Run a paan shop for a week in about 5 minutes. Choose your city, budget and location, set prices, order stock and handle real events. Then see how you compare with a skilled owner. The free simulator currently runs on India-wide numbers; a state preset is coming.
Play the simulator freeFrequently asked questions
How much does it cost to start a paan shop in Andhra Pradesh?
About ₹69,000–₹7.4 lakh, depending on the format. That is the India-wide setup cost rescaled to Andhra Pradesh's rents and prices.
How much profit does a paan shop make in Andhra Pradesh?
A well-run one typically nets ₹26,500–₹95,000 a month in a city like Vijayawada. Casual owners earn far less.
What licences does a paan shop need in Andhra Pradesh?
FSSAI basic registration (₹100/year) for paan and food items, Shop & Establishment registration for a rented shop, Municipal trade licence (₹500–5,000/year), Street vending certificate for a gumti or cart (Street Vendors Act 2014), MRP rules: no selling packaged drinks above MRP, no 'cooling charge', Shop & Establishment registration (AP Shops & Establishments Act 1988), Form-A via MeeSeva/Labour portal, Municipal trade licence (Vijayawada/GVMC etc.)
Which city in Andhra Pradesh is best for a paan shop?
Bigger cities bring more customers and higher bills but also higher rent and wages. The chart above compares metro, mid-size city and small town.