§1What this business is

The parlour is a small dairy with a shop front. Raw milk comes from nearby dairy farmers each day. It is pasteurised and held in tanks; part is sold as milk, and the rest is turned into ghee, yoghurt, khoya, paneer and cheese with a cream separator, churn, presses and moulds. Local families buy daily from the counter, restaurants, cafés and bakeries take bulk supply, and orders can also be taken online for home delivery. Milk makes up most of the sales in the profile.

Capacity: 1,71,450 litres a year at 90% capacity use.

§2Is it right for you?

Who it is for

Someone from a dairy farming family or with dairy processing experience, in a busy residential area.

Who it is not for

Someone who cannot be at the shop early every morning, seven days a week.

Advantages

  • Milk and milk products sell every day
  • Cash sales at the counter
  • Leftover milk becomes ghee, khoya or paneer
  • Local farmers get a steady buyer

Drawbacks

  • Milk spoils within hours without chilling
  • Low margin on plain milk
  • Cooperative and private dairy brands compete on price

Skills you need

  • Milk testing for fat and adulteration
  • Pasteurising and making paneer, khoya, ghee and curd
  • Hygiene and cold storage
  • Daily stock and cash control

Why difficulty 3/5: Daily perishable stock and strict hygiene, but steady local demand.

§3Market

Who buys

  • Local households
  • Restaurants, cafés and bakeries
  • Sweet shops

How it sells

  • Own retail counter
  • Wholesale supply to food businesses
  • Online orders with home delivery

Good to know

  • Yearly sales in the profile: milk ₹131.4 lakh, cheese ₹8.775 lakh, yoghurt ₹4.5 lakh, paneer ₹2.97 lakh, khoya ₹2.43 lakh and ghee ₹1.755 lakh.

§4Raw material & machinery

ItemQtyCost
Milk pasteuriser1₹3.50 lakh
Holding tanks4₹0.04 lakh
Cream separator1₹0.01 lakh
Churning equipment1₹0.05 lakh
Heat-sealing machines2₹0.10 lakh
Presses1₹0.10 lakh
Moulds1₹0.06 lakh
Milk cans10₹0.50 lakh
Mixers and agitators2₹0.40 lakh
Shelves and storage units4₹0.80 lakh

From: Uttarakhand DUY project profile — Dairy Products Parlor

  • Fresh raw milkbought daily from local dairy farmers; raw material is ₹108.00 lakh a year
  • Cheesecloth and muslin, packing pouches and labelsfor paneer, cheese and packed products

From: Uttarakhand DUY project profile — Dairy Products Parlor

§5Licences & registration

  1. FSSAI registration or licence
  2. Shop and establishment registration
  3. Udyam registration
  4. GST registration
  5. Pollution control consent where the state board asks for it

We can do this registration for you

Start it in your state

Pick your state: today’s cost, central + state subsidy, raw material, land and help, on one page.

§6Schemes & subsidies

A ₹24.22 lakh unit that makes dairy products can apply under PMEGP (manufacturing ceiling ₹50 lakh) or PMFME for micro food units; a MUDRA loan can cover working capital.

§7Money

How the investment is worked out: Pre-operative expenses ₹0.24 lakh + machinery ₹5.47 lakh + equipment and furniture ₹4.24 lakh + working capital ₹14.27 lakh = ₹24.22 lakh. The shop is rented.

Working capital: Working capital ₹14.27 lakh is more than half the project cost, because milk is bought daily and paid for quickly.

Year not printed on the DUY profile — check current prices before you buy equipment.

How to prepare a loan file

§8Export potential

A local business; there is no goods export here.

§9Risks — where people fail

  • Spoilage on hot days or during power cuts
  • Adulterated milk from a supplier
  • Milk supply falling in summer
  • Food safety sample failing a test

§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 dairy products parlour 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 registration or licence, Shop and establishment 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.

Want to start Dairy Products Parlour?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. Uttarakhand DUY project profile — Dairy Products Parlor

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