§1What this business is

Organic waste is sorted, mixed with 10–15% leaves or grass, and fed into a compost machine with a built-in shredder, steel tank and heater; manure comes out the next day. The report notes that under Swachh Bharat rules large waste generators (15 kg or more a day) must compost on site, which creates demand from hotels, campuses and housing societies.

Capacity: 60 kg of manure a day, 21,600 kg a year; the plan starts at 80% (17,280 kg).

§2Is it right for you?

Who it is for

Someone who can sign service contracts with hotels, campuses or housing societies.

Who it is not for

Someone expecting a full-time income from manure sales alone.

Advantages

  • Small investment and space
  • Waste rules push bulk generators to compost
  • One person can run it
  • Manure has buyers among gardeners and farmers

Drawbacks

  • Very small income from one machine
  • Selling manure alone barely repays the loan
  • Needs a steady, sorted waste supply
  • Odour and pests if run badly

Skills you need

  • Waste sorting
  • Machine upkeep
  • Selling to institutions
  • Compost quality checks

Why difficulty 2/5: Easy to run; the challenge is enough waste and enough income.

§3Market

Who buys

  • Gardeners and nurseries
  • Farmers
  • Bulk waste generators who pay for on-site composting

How it sells

  • Service contracts with hotels, campuses and societies
  • Local sale of packed manure

Good to know

  • The report cites the Swachh Bharat rule that generators of 15 kg or more waste a day must compost it.

§4Raw material & machinery

ItemQtyCost
Bio-mechanical compost machine (in-built shredder, SS composting tank, oil tank, heater, water tank, two exhausts)1₹3,45,000 + GST ₹62,100

From: PMEGP sample project report — Organic Waste Compost (prepared by Udyami/Samadhan)

  • Organic waste: food, horticulture and farm wasteabout ₹1–2 a kg; the report costs it at ₹2 a kg in year 1
  • Leaves or grass10–15% mixed into the waste

From: PMEGP sample project report — Organic Waste Compost (prepared by Udyami/Samadhan)

§5Licences & registration

  1. Udyam registration
  2. GST registration
  3. State Pollution Control Board consent, if your state requires it for this activity
  4. Fertiliser Control Order registration if you sell the compost as fertiliser

We can do this registration for you

§6Schemes & subsidies

PMEGP (the report shows the 25% KVIC margin money), MUDRA Shishu or Kishor, and CM-YUVA in UP as the project is under ₹5 lakh.

§7Money

How the investment is worked out: Sample report: compost machine ₹3,45,000 + GST 18% ₹62,100 = ₹4,07,100 (transport extra). No building or working capital in the cost; premises rented.

Working capital: No working capital in the report; waste is bought at about ₹1–2 a kg.

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

How to prepare a loan file

§8Export potential

Export council / board: FIEO (Federation of Indian Export Organisations)

  • Compost from a unit this size sells locally; export is not practical.

§9Risks — where people fail

  • Mixed plastic in waste
  • Machine breakdown
  • Low manure price
  • Losing the waste-supply contract

§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 organic waste composting (machine) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST 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 Organic Waste Composting (Machine)?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Organic Waste Compost (prepared by Udyami/Samadhan)

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