§1What this business is

Collected milk is pasteurised, chilled to 4 °C and then boiled with constant stirring in steam-jacketed khoya machines until it thickens and leaves the sides of the pan; it is cooled and vacuum-packed. Per the DPR, a batch uses 100 litres of cow milk (4.5% fat) or 80 litres of buffalo milk (5.5% fat), and a 20 kg batch takes 20–25 minutes. Khoya (mawa) is the base of most North Indian sweets, so sweet shops, halwais and caterers are the main buyers.

Capacity: 50 kg of khoya an hour, one 8-hour shift, 300 days = 1,08,000 kg a year after 10% wastage; the DPR starts at 40% (43,200 kg) and reaches 60% in year 5.

§2Is it right for you?

Who it is for

A dairy farmer, milk collector or sweet-shop owner with a steady daily milk supply.

Who it is not for

Someone without an assured milk supply or cold storage.

Advantages

  • Khoya is the base of most North Indian sweets — steady demand from sweet shops
  • Steam-jacketed machines give even heating with no smoke
  • Short process: boil, stir, cool and pack
  • Festival seasons bring big orders

Drawbacks

  • Highly perishable — needs chilling and quick sale
  • Adulteration scares around festivals hit the whole trade
  • Milk prices and supply change with the season
  • Thin first-year profit (₹1.83 L on ₹101.95 L of sales)

Skills you need

  • Milk testing (fat, SNF, adulteration)
  • Running a boiler and khoya machines
  • Food hygiene and FSSAI rules
  • Selling to sweet shops and caterers

Why difficulty 3/5: Simple process, but milk quality, hygiene and a perishable product need daily care.

§3Market

Who buys

  • Sweet shops and halwais
  • Caterers and wedding cooks
  • Bakeries and dessert makers
  • Households before festivals

How it sells

  • Direct supply to sweet shops
  • Local dairy outlets
  • Wholesale khoya mandis

Good to know

  • The DPR prices khoya at ₹240 a kg in year 1, rising about 5% a year.
  • Khoya is also used for payasam and many kinds of halwa, per the DPR.

§4Raw material & machinery

ItemQtyCost
Milk reception system (1,000 litres)1₹1,60,000
Bulk milk chiller (1,000 litres)1₹2,50,000
Milk pasteuriser1₹2,75,000
Khoya making machine (250 litres)2₹2,70,000
Vacuum packaging machine1₹1,31,000
Boiler (500–1,000 litres)1₹1,80,000
Milk analyser1₹40,000
Industrial milk pump2₹25,000
Water pumps, trolleys, trays, bins, lactometer, weighing machine—₹3,50,000

From: NIFTEM-K project profile — Khoya Making Unit (PMFME model DPR) (2022)

  • Buffalo milkthe DPR's raw material; cow milk (4.5% fat) can also be used — 2 days' stock
  • Vacuum packs1 kg packets

From: NIFTEM-K project profile — Khoya Making Unit (PMFME model DPR) (2022)

Suppliers in Building Business Bazaar

National Dairy Development Board, Anand · Anand →

In our raw material database

Milk (raw) →

§5Licences & registration

  1. FSSAI licence
  2. Udyam
  3. GST
  4. Boiler registration and inspection (state Boiler Inspectorate)
  5. State Pollution Control Board consent
  6. Trade licence from the local body

We can do this registration for you

§6Schemes & subsidies

PMFME (the DPR is a PMFME model with a 35% subsidy up to ₹10 L), PMEGP and CGTMSE fit. Bank finance in the DPR is ₹17.60 L (term loan ₹11.17 L + working capital ₹6.43 L), within the MUDRA ₹20 L limit.

§7Money

How the investment is worked out: NIFTEM-K PMFME model DPR: total ₹27.45 L = plant & machinery ₹16.81 L + miscellaneous assets ₹3.50 L + working capital ₹7.14 L. Premises rented (rent ₹3.60 L in year 1).

Working capital: Working capital ₹7.14 L (bank limit ₹6.43 L): only 2 days of milk and 5 days of khoya in stock, but 20 days' credit to buyers. Khoya sells at ₹240 a kg in year 1.

Year not printed in the DPR; NIFTEM-K published it in July 2022 — check current machinery prices.

How to prepare a loan file

§8Export potential

Export council / board: APEDA

  • Khoya is perishable and mostly sold fresh near the unit; check ITC(HS) and APEDA rules before any export.

§9Risks — where people fail

  • Spoilage if unsold for a few days
  • Food-safety raids and adulteration complaints
  • Milk shortage in the lean season
  • Boiler safety

§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 khoya (mawa) making unit 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, Udyam), 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 Khoya (Mawa) Making Unit?

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

Get a DPR / loan file made

Sources

  1. NIFTEM-K project profile — Khoya Making Unit (PMFME model DPR) (2022)

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