§1What this business is
Fresh cow and buffalo milk is standardised for fat, heated and filtered, stabilised and homogenised; brewed coffee and sugar syrup are mixed in, and the drink is bottled, crown-capped and sterilised at 85 °C for 30 minutes. It sells at railway and bus stations, airports, college canteens, restaurants and picnic spots. This is a large, round-the-clock plant.
Capacity: 4,65,000 crates a year of 24 bottles × 200 ml, worth ₹418.5 L; based on 75% efficiency, 24 hours a day, 300 days.
§2Is it right for you?
Who it is for
A dairy co-operative or an experienced dairy entrepreneur with a milk-collection network.
Who it is not for
A first-time entrepreneur without dairy experience or large funding.
Advantages
- Ready-to-drink coffee milk sells well at travel points and canteens
- Uses local milk
- Returnable glass bottles in crates
Drawbacks
- Very large investment — above PMEGP's ₹50 L ceiling
- Needs 1,87,500 litres of milk a month
- Prices in the report are very old
Skills you need
- Milk procurement and testing
- Dairy plant operation (boiler, homogeniser, bottling)
- Cold chain and distribution
- Food safety and lab testing
Why difficulty 4/5: A large, round-the-clock dairy plant with old cost figures and big milk needs.
§3Market
Who buys
- Travellers at railway stations, bus stops and airports
- College students and canteens
- Restaurants and hotels
- Visitors at picnic spots
How it sells
- Station and canteen stalls
- Retail outlets with chillers
- Institutional supply
Good to know
- The report says ready-to-serve coffee milk has so far been sold mainly by a few co-operative milk societies.
- It says the drink is liked by all age groups and market access should not be a big challenge.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Water treatment unit | 1 | ₹50,000 |
| Boiler | 1 | ₹1.25 lakh |
| SS tank, 1,000 litres | 3 | ₹60,000 (₹20,000 each) |
| Plate heat exchanger | 1 set | ₹50,000 |
| Homogeniser, 2,000 litres an hour | 1 set | ₹1.50 lakh |
| Bottling plant, 100 bottles a minute (washer, filler, crown corker, steriliser) | 1 set | ₹12.00 lakh |
| Testing equipment | 1 lot | ₹50,000 |
| Weighing balance | 1 | ₹5,000 |
| Erection and electrification (10%) | 1 lot | ₹1.69 lakh |
| Glass bottles in wooden crates | 8,000 crates | ₹7.20 lakh |
From: PMEGP sample project report — Coffee Flavoured Milk (prepared by Udyami/Samadhan)
- Milk1,87,500 litres a month at ₹13 a litre
- Sugar10,500 kg a month at ₹14 a kg
- Instant coffee1,425 kg a month at ₹110 a kg
- Stabiliser (trisodium citrate)₹10,000 a month
- Crown caps62 cartons a month at ₹1,200 each
From: PMEGP sample project report — Coffee Flavoured Milk (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
B. Sen Barry and Co · Delhi →Larsen & Toubro Ltd · Mumbai →Mildon and Co · Mumbai →Mistri Sant Singh and Sons · Delhi →Pioneer Mechanical Works · Ambala →Rita Agencies · Chennai →
In our raw material database
§5Licences & registration
- FSSAI licence
- Udyam
- GST
- Pollution consent from the state board (dairy effluent)
- Boiler registration
- Factory licence
- Legal metrology registration for packed products
§6Schemes & subsidies
At ₹98.53 L the full plant is above PMEGP's ₹50 L limit for manufacturing, so a smaller plan would be needed for PMEGP; PMFME (dairy processing) and CGTMSE can still fit.
§7Money
How the investment is worked out: Fixed capital ₹39,84,000 (land and building ₹13,45,000 + machinery, bottles, crates and office equipment ₹26,09,000 + pre-operative ₹30,000) + working capital for 2 months ₹58,68,700 = total capital investment ₹98,52,700. (The catalogue's ₹22.96 L is the report's annual fixed-cost line, not the project cost.)
Working capital: Working capital for 2 months ₹58.69 L — milk alone is ₹24.38 L a month (1,87,500 litres at ₹13).
Year not printed, and the figures are clearly old (milk at ₹13 a litre, salaries of ₹1,000–6,000 a month, quality 'as per PFA' rules that FSSAI has replaced) — redo every number at today's prices.
§8Export potential
Export council / board: APEDA
- The report gives no HS code; flavoured milk drinks need the exact ITC(HS) line from DGFT or a customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Milk price and supply swings
- Spoilage and recalls
- Bottle breakage and crate losses
§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 coffee flavoured milk (bottled) plant 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), 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 Coffee Flavoured Milk (Bottled) Plant?
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.