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Guesstimate 3 – How many paan shops are there in India ?

Ans: We will use the method of Demand and Supply

Total population of India = 1.2bn or 1200 Mn

Male = 700 Mn & Female = 600 Mn ( 900 women per 1000 men )

The ratio of Female/Male for Pan consumption is very small.

Female in india those consume pan on regular basis = 2% = 600Mn*.01 -> 12Mn

Divide male on the basis of age groups :

0–15 ->  Neglect this section
16–22 -> 15% of 700Mn 
= 105Mn -> 5Mn ( This is the college age & as per my own college scenario 5 students consume pan out of the 100)
23–50 -> 35%of 700Mn
= 240 Mn -> 20% people consume -> .2*240 -> 48Mn
51–80 -> 20% of 700Mn
=140Mn -> older age, various problems like in teeth -> .05*140
-> 7Mn
Total demand of pan = 12+5+48+7 = 72 Mn

Using Supply :

Time taken to make 1 pan = 2min -> 30 in 1 hour

Lets pan shop opens for 10 hours -> 30*10 = 300 pan

Number of pan shops in India= 72 Mn/ 300 = 2,40,000 ~ 2.5 lakh

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