§1What this business is

Milk and dry ingredients are mixed, pasteurised and homogenised, inoculated with 1% yogurt culture at about 32 °C, cooled and aged for up to four hours, flavoured and frozen with air whipped in, then packed and hardened at about −26 °C. The report notes the process is nearly the same as ice cream, with yogurt added.

§2Is it right for you?

Who it is for

Someone with dairy or ice-cream experience and access to freezer space in shops.

Who it is not for

Someone without cold storage or a dairy hygiene routine.

Advantages

  • A lighter alternative to ice cream for health-minded buyers
  • Milk is easy to buy locally
  • Can be sold in cups, cones and with toppings
  • Low break-even (27%)

Drawbacks

  • Thin net margin (about 4–5%)
  • Needs a frozen supply chain to the shop
  • Milk price changes hit cost directly
  • Strict dairy hygiene and testing

Skills you need

  • Pasteurising and culturing
  • Freezing and overrun control
  • Food safety testing
  • Retail and parlour sales

Why difficulty 4/5: Dairy hygiene, cold chain and a thin margin.

§3Market

Who buys

  • Health-minded dessert buyers
  • Families and young people
  • Restaurants and food-service outlets

How it sells

  • Retail outlets with freezers
  • Dessert and ice-cream parlours
  • Food-service buyers

Good to know

  • The report says delivery trucks should stay at about −26 °C, the same as factory storage.

§4Raw material & machinery

ItemQtyCost
Mixer1₹30,000
Pasteuriser1₹2,00,000
Homogenisation machine1₹1,50,000
Ageing and flavouring vat1₹1,00,000
Cooling system1₹1,50,000
Packaging machine1₹2,80,000

From: PMEGP sample project report — Frozen Yogurt (prepared by Udyami/Samadhan)

  • Milkskim milk is the base, the report says
  • Yogurt culture1% inoculation
  • Sugar and stabiliserswith flavours and colours
  • Packaging₹1.66 L in year 1

From: PMEGP sample project report — Frozen Yogurt (prepared by Udyami/Samadhan)

§5Licences & registration

  1. FSSAI licence or registration
  2. Udyam registration
  3. GST registration
  4. Fire NOC
  5. State Pollution Control Board consent (CTE/CTO)
  6. Trade licence from the local body
  7. Trademark for your brand (optional)

We can do this registration for you

§6Schemes & subsidies

Dairy processing fits PMFME and PMEGP; at ₹15.42 L it also fits MUDRA, CGTMSE and Stand-Up India.

§7Money

How the investment is worked out: Plant & machinery ₹9.10 L + other assets ₹1.50 L + working capital ₹4.82 L = ₹15.42 L; premises rented (₹20,000 a month assumed). Finance: own ₹1.54 L, term loan ₹9.54 L, working-capital loan ₹4.34 L.

Working capital: Working capital ₹4.82 L (bank ₹4.34 L); raw material ₹99.84 L against sales of ₹127.98 L in year 1.

Year not printed on the report — check current machinery prices.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

2105.00Ice cream and other edible ice

Export council / board: APEDA

  • 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

  • Contamination
  • Power cuts
  • Milk price rise
  • Seasonal summer 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 frozen yogurt 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 or registration, 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

Not verified yet

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 Frozen Yogurt?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Frozen Yogurt (prepared by Udyami/Samadhan)

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