How to Start a Departmental Kirana Store in India?

August 04, 2023 • 1848 views

Starting a departmental Kirana store in India can be a lucrative business venture, considering the country's thriving retail market. A well-planned and organized store can attract customers and contribute to the local community's daily needs. In this article, we will explore the necessary steps and considerations to successfully establish and run departmental stores in India.

Understanding the Indian Retail Market

Before diving into the specifics of starting a departmental Kirana store, it is essential to understand the dynamics of the Indian retail market. India's retail sector is diverse, with a mix of traditional and modern retail formats. It is driven by a large population, changing consumer preferences, and increasing purchasing power. You must familiarize yourself with the current trends, customer preferences, and competition in the retail market to position your Kirana store business plan effectively.

Thorough Research and Planning

Conducting thorough research and planning is crucial before starting any business, including a departmental Kirana store. Understand the target market, locality, and potential customer base. Analyse the demand for various products and identify the unique selling points that can differentiate your store. Develop a comprehensive business plan that includes financial projections, inventory management strategies, and marketing plans.

Licences and Permits Required to Start a Departmental Kirana Store

To legally operate a departmental Kirana store in India, certain licences and permits are required. These may include a Shop and Establishment Licence, GST Registration, FSSAI Licence (if selling food items), and local municipal permits. Research the specific licences and permits applicable to your location and ensure compliance with all legal requirements.

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Choosing the Right Store Format and Layout

The store format and layout play a crucial role in attracting customers and optimizing the shopping experience. Determine the store size and layout based on the available space and target customer preferences. Organize the store into different sections, such as groceries, household items, personal care products, and snacks. Pay attention to the placement of products, shelving, lighting, and signage to create an inviting and convenient shopping environment.

Determining the Required Workforce for a Kirana Store

Assess your workforce requirements based on the store size, product range, and expected footfall. Hire staff members with relevant experience and customer service skills. Roles may include store managers, cashiers, salespersons, and stock handlers. Provide adequate training to ensure efficient store operations, inventory management, and customer interactions.


Starting a departmental Kirana store requires careful planning, thorough research, and compliance with legal requirements. Poonawalla Fincorp understands the aspirations of entrepreneurs and offers Business Loan services to help you establish your dream store. By understanding the Indian retail market, conducting detailed research, obtaining the necessary licences, designing an appealing store layout, and hiring the right workforce, you can set a strong foundation for a successful departmental Kirana store business plan.

Frequently Asked Questions About Kirana Store Business Plan

  • How much does it cost to open a departmental store in India?

The cost of opening a departmental store in India can vary depending on factors such as location, store size, inventory, fixtures, and other operational expenses. Generally, the cost can range from a few lakhs to several lakhs or even crores of rupees. It is essential to conduct thorough research and create a detailed business plan to estimate the specific costs involved in setting up your departmental store.

  • How much money is required to open a Kirana store?

The amount of money required to open a Kirana store can vary depending on factors such as the size of the store, location, inventory, and store layout. On average, the initial investment can range from a few lakhs to several lakhs of rupees. It is recommended to prepare a comprehensive budget that includes costs for licences and permits, store setup, inventory, marketing, and working capital.

  • How do I register as a departmental store?

To register a departmental store in India, you will need to follow the necessary legal and regulatory procedures. The specific registration process may vary based on the state and local laws. Generally, you will need to obtain a Shop and Establishment Licence from the local municipal authority or relevant government department. It is advisable to consult with a legal professional or visit the official government websites to understand the registration requirements specific to your location.

  • What are the three advantages of a departmental store?

a. Wide Product Range
Departmental stores in India offer a diverse range of products under one roof, providing customers with convenience and saving them time and effort.

b. One-stop Shopping
Departmental stores cater to various needs, from groceries and household items to clothing, electronics, and more. Customers can fulfil multiple shopping requirements in a single visit.

c. Customer Experience
Departmental stores often focus on providing a pleasant shopping experience with well-designed layouts, organized sections, helpful staff, and additional facilities like parking, restrooms, and in-store services.


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Poonawalla Fincorp Team

Our team of expert writers and editors are passionate about providing authentic and valuable information on finance. Our aim is to simplify financial and finance-related concepts. We strive to help our readers become more aware and empowered to make informed financial decisions.

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