§1What this business is

Medicated ghee (ghrita) is an Ayurvedic medicine made by cooking ghee with ground herbs and liquids as per a classical formula. The report focuses on Vachadi Ghrita (cow ghee with vacha, guduchi, shankhapushpi, haritaki and other herbs). It is made under a state Ayurveda drug licence and sold through vaidyas, Ayurvedic pharmacies and retail.

Capacity: Report prints installed capacity as 35,000 one-kg bottles a year in one place and 3,500 bottles in another — the figures do not agree.

§2Is it right for you?

Who it is for

An Ayurveda graduate or diploma holder (BAMS or similar) with experience in an Ayurvedic pharmacy.

Who it is not for

Someone without Ayurveda training — the licence needs qualified technical staff.

Advantages

  • Classical Ayurvedic product with steady demand
  • Low machinery cost (₹4.00 lakh)
  • Ghee and herbs are available across India
  • Can grow into a wider Ayurvedic range

Drawbacks

  • Needs a state Ayurveda drug licence and GMP
  • The report's figures are rough and partly inconsistent
  • Promoter should hold an Ayurveda qualification
  • Cow ghee is costly and prices move

Skills you need

  • Classical Ayurvedic formulation
  • Herb identification and quality testing
  • GMP record keeping
  • Selling to vaidyas and pharmacies

Why difficulty 3/5: Small investment, but licensing and the need for qualified staff raise the bar.

§3Market

Who buys

  • Vaidyas and Ayurvedic clinics
  • Ayurvedic pharmacies and chemists
  • Health-conscious households

How it sells

  • OEM supply to Ayurvedic brands
  • Own retail network

Good to know

  • The report bases sales on an OEM and retail network built from the promoter's prior experience.
  • It quotes ASSOCHAM on fast growth of the Indian herbal products market.

§4Raw material & machinery

ItemQtyCost
Heavy-bottomed pan2₹1.20 lakh
Volumetric filling machine2₹0.80 lakh
Bottle washing machine1₹0.30 lakh
Bottle drying machine1₹0.20 lakh
Strainers / sieves2₹0.50 lakh
Other miscellaneous equipment—₹0.30 lakh
QC and testing equipment—₹0.70 lakh

From: PMEGP sample project report — Medicated Ghee (prepared by Udyami/Samadhan)

  • Cow ghee / cow milkthe report costs 35 tonnes of cow milk at ₹40,000 a tonne
  • Herbs: vacha, guduchi, shankhapushpi, haritaki, shati, vidang, shunthi, apamargVachadi Ghrita formula; one formulation has 8 to 10 active ingredients
  • Glass bottles, labels and boxespackaging ₹50,000 in the report

From: PMEGP sample project report — Medicated Ghee (prepared by Udyami/Samadhan)

§5Licences & registration

  1. Ayurvedic drug manufacturing licence from the State Drug Controller / Ayurveda Director
  2. GMP as per Schedule T
  3. Udyam registration
  4. GST registration
  5. Trademark for your brand

We can do this registration for you

§6Schemes & subsidies

PMEGP (the report is a PMEGP sample), MUDRA (cost is under ₹20 lakh) and CGTMSE.

§7Money

How the investment is worked out: Report: plant & machinery ₹4.00 lakh, furniture ₹0.20 lakh, contingencies ₹0.40 lakh, pre-operative ₹0.20 lakh, working capital ₹6.10 lakh = ₹10.90 lakh. Building rented.

Working capital: Working capital ₹6.10 lakh; cow milk 35 tonnes at ₹40,000 a tonne (₹14.00 lakh) plus packaging ₹0.50 lakh.

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

3004.90Other medicaments in measured doses (includes Ayurvedic medicines)

Export council / board: Pharmexcil

  • 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

  • Licence or GMP lapses
  • Adulterated or poor-quality herbs
  • Ghee price rise
  • Slow sales without a known brand

§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 medicated ghee (ayurvedic ghrita) 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 (Ayurvedic drug manufacturing licence from the State Drug Controller / Ayurveda Director, GMP as per Schedule T), 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 Medicated Ghee (Ayurvedic Ghrita) Unit?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Medicated Ghee (prepared by Udyami/Samadhan)

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