§1What this business is
Milk is received, pasteurised, chilled and stored, then cooked in a stirred kettle (or an automatic peda machine) with sugar, ghee and dry fruit until it browns; a ribbon blender mixes in powdered sugar while it cools, and pedas are shaped by hand and packed. Pedas sell as sweets and as temple prasad; Mathura is the classic home of peda.
§2Is it right for you?
Who it is for
Someone near a dairy belt or temple town with sweet-shop contacts.
Who it is not for
Someone who cannot run strict dairy hygiene every day.
Advantages
- Milk sweets sell everywhere, all year
- Festivals and temple prasad boost demand
- UP and Bihar eat the most milk sweets
- Packed sweets are a growing segment
Drawbacks
- Short shelf life
- Milk price and quality swing
- Adulteration fears make buyers wary
- Cold chain and hygiene costs
Skills you need
- Milk testing and khoa cooking
- Dairy hygiene
- Sweet-shop and temple sales
- Daily stock planning
Why difficulty 3/5: Steady demand, but daily dairy hygiene and a perishable product take discipline.
§3Market
Who buys
- Sweet shops
- Temples and pilgrims (prasad)
- Households at festivals
How it sells
- Supply to sweet shops and temple stalls
- Own packed brand in retail
- Online and gift orders
Good to know
- The report says milk-sweet consumption is highest in Uttar Pradesh and Bihar.
- It puts the traditional sweets market at about ₹45,000 crore, of which packaged is about ₹3,500 crore.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Milk pasteuriser with boiler | 1 | ₹2,65,000 |
| Dairy freezer | 1 | ₹1,20,000 |
| Milk reception system (milk cooling and pump) | 1 | ₹2,92,500 |
| Milk storage tank | 1 | ₹50,000 |
| Milk chiller | 1 | ₹1,20,000 |
| Automatic peda making machine (or cooking kettle with stirrer) | 1 | ₹2,90,000 |
| Material handling and other equipment | 1 lot | ₹50,000 |
| GST on machinery | — | ₹2,13,750 |
From: PMEGP sample project report — Peda final (prepared by Udyami/Samadhan)
- Milk₹35–40 a litre
- Sugar₹25–30 a kg
- Dry fruits₹600–700 a kg
- Ghee₹250–300 a kg
From: PMEGP sample project report — Peda final (prepared by Udyami/Samadhan)
§5Licences & registration
- FSSAI registration or licence
- Udyam registration
- GST registration
- Legal Metrology packaged-commodity registration (for packed goods)
- Boiler registration under the Boilers Act, if your boiler falls under it
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- PMFMECentralUnclear35% subsidy, up to ₹10 lakh
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP (the report was made for it), PMFME for micro food processors, MUDRA for loans up to ₹20 lakh (term loan ₹13.06 lakh), CGTMSE, and Stand-Up India for SC/ST or women founders.
§7Money
How the investment is worked out: Sample report: plant & machinery ₹14.01 L + miscellaneous assets ₹0.25 L + furniture ₹0.25 L + working capital ₹6.81 L = ₹21.32 L. Premises rented. Own ₹2.13 L, term loan ₹13.06 L, working-capital loan ₹6.13 L.
Working capital: Working capital ₹6.81 lakh (bank ₹6.13 lakh); raw material about ₹140–170 per 1 kg packet of peda.
Year not printed on the sample report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: APEDA
- HS heading from the ITC(HS) 2022 schedule; confirm the 8-digit 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 in heat
- Milk shortage in lean season
- Food-safety raids at festival time
- Unsold stock
§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 peda making unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI registration or 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 Peda Making?
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.
