Barley Malting and Malt Extract Plant

§1What this business is

Barley is cleaned and graded, soaked (steeping), sprouted under control (germination) and dried in a kiln, then crushed, aged and blended. Malt extract is made by milling, mashing, separating and boiling the malt into a sweet syrup or powder. Buyers are breweries, whisky distilleries, malted-milk food makers, bakeries, biscuit, confectionery and chocolate-powder makers, baby-food and tonic makers. This is a big project: 30,000 tonnes a year with imported steeping, germination and kilning plants.

Capacity: 30,000 tonnes a year.

§2Is it right for you?

Skills you need

• Malting technology and quality control
• Barley procurement and grading
• Large-plant management
• Long-term supply contracts with breweries and food makers

Why difficulty 5/5: Crore-scale investment, imported plant and early-year losses.

§3Market

§4Raw material & machinery

From: SIDBI Stand-Up Mitra project profile — Malt Extract from Barley (2018) — private guide — confirm locally

• Barleyfrom Rajasthan and UP; the report says 5–10% of barley goes to human food, 4–5% is kept as seed and the rest to animal feed
• Water and fuel for steeping and kilningenergy costed at ₹7 a kWh

From: SIDBI Stand-Up Mitra project profile — Malt Extract from Barley (2018) — private guide — confirm locally

§5Licences & registration

1. FSSAI licence (central licence at this scale)
2. Udyam registration
3. GST
4. State Pollution Control Board consent to establish and operate
5. Factory licence
6. Fire NOC
7. Boiler registration if steam boilers are used
8. IEC code for imported plant and exports

We can do this registration for you

§6Schemes & subsidies

At ₹38.66 crore with a ₹27.86 crore bank loan, this is beyond PMEGP, MUDRA, Stand-Up India and CGTMSE limits; it needs regular bank or institutional project finance.

§7Money

How the investment is worked out: Land ₹100 L, building ₹1,200 L, plant and machinery ₹2,000 L as totalled in the report (its itemised list — imported steeping, germination, kilning and conveying plants with freight and duties, plus Indian cleaning, electricals, structurals and erection — adds up to ₹2,380 L), furniture ₹12 L, preliminary and pre-operative expenses ₹200 L, working capital margin ₹354 L = ₹3,866 L (₹38.66 crore).

Working capital: Working capital ₹810 L; margin ₹354.38 L, bank ₹455.63 L.

Prices from 2018 — machinery and building costs will be higher now.

How to prepare a loan file

§8Export potential

§9Risks — where people fail

• Poor barley quality
• Heavy loan repayment during early losses
• Dependence on a few big buyers
• Excise and alcohol-policy changes affecting brewery demand

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

1. Days 1–30: Visit a working barley malting and malt extract plant unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
2. Days 31–60: Udyam and the licences you need (FSSAI licence (central licence at this scale), Udyam registration), a project report (DPR), and the scheme or loan file.
3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

§12Watch

There is no episode on this business yet. Shows are coming soon on the Podcast page.

¶Sources

1. SIDBI Stand-Up Mitra project profile — Malt Extract from Barley (2018)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.