§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

ItemQtyCost
Milk pasteuriser with boiler1₹2,65,000
Dairy freezer1₹1,20,000
Milk reception system (milk cooling and pump)1₹2,92,500
Milk storage tank1₹50,000
Milk chiller1₹1,20,000
Automatic peda making machine (or cooking kettle with stirrer)1₹2,90,000
Material handling and other equipment1 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

  1. FSSAI registration or licence
  2. Udyam registration
  3. GST registration
  4. Legal Metrology packaged-commodity registration (for packed goods)
  5. Boiler registration under the Boilers Act, if your boiler falls under it

We can do this registration for you

§6Schemes & subsidies

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.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

2106.90Food preparations not elsewhere specified or included: other

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.

  1. Days 1–30: Visit a working peda making unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. 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.
  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 Peda Making?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Peda final (prepared by Udyami/Samadhan)

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