§1What this business is
Good milk is boiled, cooled and the cream separated; ghee is made from one part and curd, butter, paneer, cheese, buttermilk and toned milk from the rest, with sugar added for milk sweets. The KVIC profile costs a 2,500 sq ft workshed and equipment such as a cream separator, pasteuriser, deep freezer, boiler, milk fat tester and pouch sealer. Buyers are households, sweet shops, hotels and grocery stores.
Capacity: Products worth ₹63.83 lakh a year at full capacity (cost of production).
§2Is it right for you?
Who it is for
Someone with dairy or sweet-shop experience and a steady milk supply.
Who it is not for
Someone who cannot maintain strict hygiene every day.
Advantages
- Milk products sell daily in every town
- Mix of products spreads risk
- Festivals and weddings push demand for ghee and sweets
- Equipment is simple and widely available
Drawbacks
- Net surplus is about 7% of sales in the profile
- Milk price changes squeeze margins
- Perishable products need cold storage
- Sweet shops and big dairies compete hard
Skills you need
- Milk testing
- Ghee, paneer and sweet making
- Cold storage and hygiene
- Local selling and credit control
Why difficulty 2/5: Familiar products, but daily perishability and thin margins need tight control.
§3Market
Who buys
- Households
- Sweet shops, hotels and caterers
- Grocery and dairy shops
How it sells
- Own counter or shop
- Supply to local retailers
Good to know
- KVIC describes curd, butter, ghee, paneer, cheese, buttermilk and milk sweets as items used in daily life.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Equipment set: SS/aluminium-top work tables (2), cream separator, deep freezer, baby boiler with accessories, electric dryer, laboratory items, milk fat tester, pasteuriser, pouch sealing machine, weighing balances | set | ₹10,00,000 |
From: KVIC Project Profile — Milk Based Products (PMEGP)
- Milkraw material ₹50.00 lakh a year at full capacity
- Sugar (for milk sweets)added for sweets as per the profile
- Labels and packing material₹5.00 lakh a year
From: KVIC Project Profile — Milk Based Products (PMEGP)
In our raw material database
§5Licences & registration
- FSSAI licence
- Udyam registration
- GST registration
- Trade licence from the local body
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (KVIC profile), PMFME for small food processors, MUDRA (cost ₹20 lakh) and CGTMSE.
§7Money
How the investment is worked out: KVIC profile: workshed 2,500 sq ft ₹5,00,000 + equipment ₹10,00,000 = capital ₹15,00,000; working capital ₹5,00,000; total ₹20,00,000. Land own.
Working capital: Working capital ₹5,00,000; raw material ₹50.00 lakh and labels/packing ₹5.00 lakh a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: APEDA
- 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
- Spoilage
- Adulteration complaints
- Milk shortage in summer
- Low-price competition
§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 milk-based products unit (ghee, butter, paneer, sweets) 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 registration), 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 Milk-Based Products Unit (Ghee, Butter, Paneer, Sweets)?
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.