§1What this business is
Animal manures, farm waste, bone and fish meal, coir pith, biogas slurry and rock phosphate are decomposed into a 'mother manure' using microbial cultures, then sieved, granulated in a rotary drum, tested and bagged. Organic fertiliser builds soil health and is sold to farmers through dealers, FPOs and nurseries.
Capacity: Not printed in tonnes; year 1 at 45% of capacity with sales of ₹123.12 L, rising to 65% in year 5.
§2Is it right for you?
Who it is for
An agri graduate, input dealer or FPO with access to manure and a farmer network.
Who it is not for
Someone who cannot run a quality lab or wait for seasonal payments.
Advantages
- Raw materials are farm and animal wastes
- Demand rising with natural and organic farming
- Granules are easy for farmers to spread
- Fits government pushes for organic inputs
Drawbacks
- Product must meet Fertiliser Control Order standards and be registered
- Selling to farmers needs a dealer network and credit
- Sales are seasonal around sowing
- Lab and fermenter equipment needs trained staff
Skills you need
- Composting and microbial culture
- Quality testing to FCO norms
- Dealer and FPO sales
- Seasonal stock planning
Why difficulty 3/5: Regulated product with seasonal, credit-based selling.
§3Market
Who buys
- Farmers
- FPOs and co-operatives
- Nurseries, orchards and kitchen gardeners
How it sells
- Fertiliser and seed dealers
- FPO bulk orders
- Online and retail packs for gardeners
Good to know
- Year-1 sales in the report: ₹123.12 L at 45% capacity.
- Machinery costs are not itemised in the report — get supplier quotes.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Bio reactor | — | — |
| Bio fermenter | — | — |
| Autoclave | — | — |
| Boiler | — | — |
| RO plant | — | — |
| Compost sieving machine | — | — |
| Rotary drum fertiliser granulator | — | — |
| Pulveriser | — | — |
| Compressor | — | — |
| Laminar flow hood | — | — |
| Culture media tanks | — | — |
| Freezers | — | — |
| Conveyors | — | — |
| QC lab set-up | — | — |
| Others (weighing machine, bag stitching machine, pumps, gear motors) | — | — |
From: UP MSME 1-Connect project profile — Organic Fertilizer Manufacturing Unit (2024)
- Sheep manure, poultry manure, cow dung
- Agricultural waste, coir pith, biogas waste
- Fish meal, bone meal, rock phosphate
- Packing materials
From: UP MSME 1-Connect project profile — Organic Fertilizer Manufacturing Unit (2024)
Suppliers in Building Business Bazaar
POLUCHEM LABORATORIES PVT. LTD. · Ernakulam →THE ANDHRA SUGARS LIMITED - SSP QC LABORATORY · Kovvur →CHANDIGARH POLLUTION TESTING LABORATORY · Mohali →K N LABORATORY, A DIVISION OF K.N. BIOSCIENCES (INDIA) PRIVATE LIMITED · Hyderabad →ENVIROCHECK · 24 Parganas (N) →
In our raw material database
§5Licences & registration
- Udyam
- GST
- Registration / authorisation under the Fertiliser (Control) Order, 1985 from the state agriculture department
- Fertiliser dealer licence for selling
- Pollution Control Board consent
- Trade licence
§6Schemes & subsidies
- AIFCentralUnclear3% interest subvention, up to ₹2 crore
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
₹47.49 L fits PMEGP (manufacturing up to ₹50 L) and CGTMSE; AIF lists organic-input production among eligible projects; Stand-Up India for SC/ST and women founders.
§7Money
How the investment is worked out: Report cost of project ₹47.49 L: plant & machinery ₹35.00 L, furniture ₹1.50 L, miscellaneous assets ₹1.00 L, working capital ₹9.99 L; premises rented. Finance: own ₹4.75 L, term loan ₹33.75 L, bank working capital ₹8.99 L.
Working capital: Working capital ₹9.99 L, of which bank finance ₹8.99 L.
Report 2024.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- Check the importing country's rules on manure-based products before shipping.
§9Risks — where people fail
- Failing FCO quality samples
- Uneven manure quality
- Credit sales to dealers
- Competition from subsidised chemical fertilisers
§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 organic fertiliser (granulated) unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), 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 Organic Fertiliser (Granulated) Unit?
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.