§1What this business is
Casein is the main protein in milk. Skimmed milk is pasteurised, then curdled with rennet or with lactic or sulphuric acid; the curd is washed several times, dried in tray dryers, ground and sieved. The profile plans 300 tonnes a year in four grades: rennet casein, lactic acid casein, sulphuric acid casein and fat-free casein. Rennet casein goes to the food industry; acid casein goes to paints, paper coating, adhesives, leather, textile and pharmaceutical makers.
Capacity: 1 tonne a day; 300 tonnes a year (rennet 150, lactic acid 90, sulphuric acid 45, fat-free 15).
§2Is it right for you?
Who it is for
A dairy operator or milk-products company with a steady supply of skimmed milk.
Who it is not for
A first-time founder without a dairy tie-up or money for an effluent treatment plant.
Advantages
- India is the world's largest milk producer — raw material is close at hand
- Several grades for food and industrial buyers
- Dried casein keeps well and can be shipped far
- Export demand exists for casein
Drawbacks
- Needs 8,400 tonnes of skimmed milk a year — you must tie up with dairies
- The profile calls casein making a highly polluting activity (whey effluent)
- Large investment and working capital
- Milk price swings eat the margin
Skills you need
- Dairy processing and hygiene
- Quality testing of each casein grade
- Effluent treatment
- Selling to food and chemical industries
Why difficulty 5/5: Large plant, milk tie-ups, heavy working capital and strict effluent control.
§3Market
Who buys
- Food industries (rennet casein)
- Paint, paper-coating, adhesive and paper-cone makers
- Rubber-chemical, leather, textile-auxiliary and pharmaceutical makers
How it sells
- Direct supply contracts with industries
- Chemical and food-ingredient traders
- Export
Good to know
- The profile assumes an average selling price of ₹357 a kg.
- It cites a projection that the global casein market will pass US$ 1 billion by 2026.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Skimmed-milk storage tanks | 2 | — |
| Skimmed-milk pasteuriser | 1 | — |
| Casein-making vats | 2 | — |
| pH control | 1 | — |
| Washing tanks | 2 | — |
| Decanters | 2 | — |
| Casein collection tank | 1 | — |
| Tray dryers | 4 | — |
| Pulveriser | 1 | — |
| Vibro sifter | 1 | — |
| Steam boiler, effluent treatment plant, DG set and transformer, RO plant, laboratory and handling equipment | 1 lot each | — |
| All plant and machinery together | — | ₹103.98 lakh |
From: SIDBI Stand-Up Mitra project profile — Casein from Milk (2018) — private guide — confirm locally
- Skimmed milk8,400 tonnes a year; costed at ₹1 a litre in the profile's profit table
- Rennet3 tonnes a year
- Lactic acid and sulphuric acid1.8 and 0.9 tonnes a year
- Other additives1.3 tonnes a year
From: SIDBI Stand-Up Mitra project profile — Casein from Milk (2018) — private guide — confirm locally
In our raw material database
§5Licences & registration
- FSSAI licence
- Udyam registration
- GST registration
- State Pollution Control Board consent to establish and operate, with an effluent treatment plant
- Factory licence
- IEC for export
§6Schemes & subsidies
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
- CGTMSECentralActiveNo collateral, up to ₹10 crore
The profile itself counts a ₹50.00 L subsidy from the Ministry of Food Processing Industries. Stand-Up India fits SC/ST or women founders (loan up to ₹1 crore); CGTMSE covers a loan without collateral.
§7Money
How the investment is worked out: Land ₹10.00 L (1,000 sq m) + building ₹63.00 L (700 sq m) + plant & machinery ₹103.98 L = ₹176.98 L. Financed by promoter ₹44.25 L, term loan ₹82.74 L and an MoFPI subsidy of ₹50.00 L. Working capital is worked out separately (₹164.14 L, of which ₹76.50 L promoter share and ₹87.64 L bank).
Working capital: Very heavy: ₹164.14 L, mainly milk stock, finished stock and 15 days of receivables; promoter share ₹76.50 L, bank ₹87.64 L.
Prices from 2018 — machinery and running costs will be higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: CHEMEXCIL (Basic Chemicals, Cosmetics & Dyes Export Promotion Council)
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Milk supply or price shocks
- Pollution-board action over effluent
- Large working capital tied up
- Quality rejects from industrial buyers
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working casein from skimmed milk unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI licence, Udyam registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Casein from Skimmed Milk?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.