§1What this business is
Day-old parent-stock chicks of improved broiler or layer breeds are raised to laying age. Their eggs are cleaned, graded, cooled in an air-conditioned room and set in setter incubators for 18 days (99.9°F, 82% humidity), then moved to hatchers for 3 days (98.9°F, 87% humidity). Hatched chicks are sexed, vaccinated against Marek's disease, packed in chick baskets and sold to poultry farms. Infertile eggs, culled birds and litter are also sold.
Capacity: 2 lakh day-old chicks a year in year 1 (66% use); the machines can make about 3 lakh at 75% efficiency.
§2Is it right for you?
Who it is for
A poultry farmer or veterinarian with links to many broiler or layer farms nearby.
Who it is not for
Someone without bio-security discipline or reliable power.
Advantages
- Local hatcheries cut transport cost and chick deaths in transit, as the report notes
- Poultry farms need chicks batch after batch
- By-products (culled birds, eggs, litter) add income
Drawbacks
- Disease outbreaks (such as bird flu) can wipe out stock and sales
- Large integrators supply their own chicks
- Break-even is high at 57%
Skills you need
- Incubation temperature and humidity control
- Chick sexing and vaccination
- Bio-security and flock health
Why difficulty 3/5: Technical incubation work and disease risk, but modest capital.
§3Market
Who buys
- Broiler and layer poultry farms
- Buyers of culled birds and infertile eggs
How it sells
- Direct sale to farms in the area
- Chick dealers and feed dealers
Good to know
- The report says existing hatcheries are not enough to meet the demand from new poultry farms.
- It suggests State Animal Husbandry Directorates and CVRI Izzatnagar (Bareilly) for technical help.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Automatic egg setter, 13,500 eggs | 2 | ₹2,00,000 |
| Automatic egg hatcher, 4,500 eggs | 2 | ₹1,40,000 |
| Generator, 10 KVA | 1 | ₹90,000 |
| Feeders, waterers and brooders | lot | ₹35,000 |
| Air conditioner, 1.5 TR | 1 | ₹25,000 |
| Refrigerator | 1 | ₹25,000 |
| Electrification and installation | lot | ₹25,000 |
| Buckets, trays, baskets | lot | ₹10,000 |
| Veterinary instruments | lot | ₹6,000 |
| Weighing balance | 1 | ₹5,000 |
| Electric debeaker | 1 | ₹1,250 |
| Egg weighing scale | 1 | ₹750 |
| Electric egg tester | 1 | ₹600 |
From: DC-MSME project profile — Hatchery (2003)
- Parent-stock day-old chicks1,500 to start; 225 a month for replacement at ₹75 each in the report
- Poultry feed8 tonnes a month at ₹6,000 a tonne
- Medicines, vaccines and antibiotics₹20,000 a month
- Chick baskets175 a month at ₹35 each
From: DC-MSME project profile — Hatchery (2003)
Suppliers in Building Business Bazaar
AGVET Industries · Hyderabad →Alarsin Marketing Pvt. Ltd · Mumbai →Alved Pharmaceuticals Pvt Ltd · Chennai →Aries Agro-Vet Industries Pvt Ltd · Mumbai →Blue Cross Farma · Hyderabad →Dayal Poultry Appliances · Delhi →Diamond Incubators · Delhi →Eastern Industro · Kolkata →Famous Metal Works · Hyderabad →Jayant Brothers · Chennai →M.J. Pharmaceuticals Pvt Ltd · Mumbai →Micro Labs Pvt. Ltd · Chennai →
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board no-objection certificate, as the report advises
- Registration or permission from the state animal husbandry department, where the state requires it
- BIS mark to IS 9800:1981 for day-old chicks is optional
§6Schemes & subsidies
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
- CGTMSECentralActiveNo collateral, up to ₹10 crore
MUDRA covers allied agriculture such as poultry; Stand-Up India covers agri-allied activities; CGTMSE for collateral-free loans. PMEGP rules for animal husbandry have changed over time — confirm with the DIC/KVIC.
§7Money
How the investment is worked out: Fixed capital ₹19.14 L (land ₹1.75 L + buildings and civil works ₹9.75 L + machinery and equipment ₹5.84 L + pre-operative ₹30,000 + 1,500 parent-stock chicks and feeding to laying ₹1.50 L) + working capital for 1 month ₹1.63 L = ₹20.77 L.
Working capital: Working capital is one month's running cost, ₹1.63 L; feed is ₹48,000 a month.
Prices from 2003 — machinery, material and selling prices will be much higher now.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Not verified yet
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- Live chicks and hatching eggs need animal-quarantine and health certificates; the export body has not been checked yet.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Bird flu or other disease outbreak
- Power failure during incubation
- Chick price crashes in poor seasons
§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 poultry hatchery (day-old chicks) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST 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 Poultry Hatchery (Day-Old Chicks)?
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.