§1What this business is
Grains, bran, oil cakes, pulse chunni and minerals are tested, mixed in set proportions, ground to 1 mm, mixed with 10–12% molasses, steamed at 70–80 °C and pressed into 8 mm pellets, then packed. Balanced compound feed gives dairy animals the energy, protein and minerals that crop residue alone does not.
Capacity: 1,200 kg a day in an 8-hour shift; year 1 at 70% capacity.
§2Is it right for you?
Who it is for
Someone in a dairy belt with links to milk collection centres or dairy farmers.
Who it is not for
Someone who cannot test raw material for toxins and quality.
Advantages
- Dairy farmers need feed all year
- Raw materials (grain, bran, oil cake) are local
- Simple, proven machinery
- Can supply dairy co-operatives and milk collection centres
Drawbacks
- Break-even at 50% is high — volume is needed
- Grain and oil-cake prices swing
- Feed quality must stay steady or farmers switch
- Large dairies and co-operatives run their own feed plants
Skills you need
- Feed formulation
- Raw-material buying and testing
- Running the pellet mill
- Selling to dairy farmers
Why difficulty 3/5: Simple machines, but a high break-even and price-sensitive buyers.
§3Market
Who buys
- Dairy farmers
- Milk collection centres and dairy co-operatives
- Cattle traders and gaushalas
How it sells
- Village feed and fertiliser shops
- Direct supply through milk collection centres
- Distributors in dairy districts
Good to know
- The report says commercial cattle feed demand is rising as dairying becomes more organised.
- India has the largest cattle population in the world (report).
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Cattle feed batch mixer | 1 | ₹95,000 |
| Cattle feed grinder | 1 | ₹1,20,000 |
| Screw conveyor | 1 | ₹1,40,000 |
| Pellet making machine | 1 | ₹4,00,000 |
| Packing machine | 1 | ₹3,80,000 |
| Material handling equipment (trolleys, bins) | 1 lot | ₹40,000 |
From: PMEGP sample project report — Animal Feed (prepared by Udyami/Samadhan)
- Grains: wheat, maize, oats, sorghum, rice, barley, millets, ragienergy part of the ration
- Brans: rice polish, de-oiled rice bran, wheat bran, maize bran
- Oil cakes and meals: mustard, soybean, cottonseed, groundnut, coconut, sesame, linseed, sunflower, guarprotein part of the ration
- Pulse chunni, molasses, tamarind seed powder and other agro by-productsmolasses is added at 10–12%
- Mineral mixture, calcite powder, salt, di-calcium phosphate, vitamins A, D and E
From: PMEGP sample project report — Animal Feed (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
SGS INDIA PRIVATE LIMITED · Ahmedabad →RASAYAN LABORATORIES (OPC) PRIVATE LIMITED · Anand →TUV INDIA PRIVATE LIMITED (LABORATORY DIVISION) · Bengaluru →CU INSPECTIONS & CERTIFICATIONS INDIA PRIVATE LIMITED (LABORATORY) · Visakhapatnam →SUGEN LIFE SCIENCES PRIVATE LIMITED · Tirupati →FOOD TESTING LABORATORY, ACROPOLIS INSTITUTE OF PHARMACEUTICAL EDUCATION AND RESEARCH · Indore →BEE PHARMO LABS PVT. LTD. · Thane →QUALITEK LABS LIMITED · Bhubaneswar →VARENYA LABORATORIES LLP · Mohali →GLOBAL LAB AND CONSULTANCY SERVICES LLP · Salem →CHEMTEX LABS INDIA PRIVATE LIMITED · Hyderabad →MULTANI PHARMACEUTICALS LIMITED (ANALYTICAL DIVISION) · Roorkee →
§5Licences & registration
- Udyam
- GST
- Pollution consent from the State Pollution Control Board (dust)
- Trade licence from the local body
- BIS licence if you sell under the IS mark
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- AIFCentralUnclear3% interest subvention, up to ₹2 crore
Made for PMEGP. AIF covers some post-harvest and processing assets; check eligibility with the bank.
§7Money
How the investment is worked out: Samadhan report: plant & machinery ₹13.87 L (₹11.75 L + 18% GST), other assets ₹0.50 L, furniture ₹0.50 L, working capital ₹8.48 L = ₹23.35 L; land own or rented.
Working capital: ₹8.48 L — 15 days of raw material and finished feed plus 25–30 days' credit to buyers; bank limit ₹7.63 L.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Aflatoxin or poor raw material
- Grain and oil-cake price rises
- Credit sales to farmers
- Competition from co-operative feed plants
§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 cattle feed (pellet) unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), 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 Cattle Feed (Pellet) Unit?
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.