§1What this business is

Milk is weighed, filtered, standardised and pre-heated to 85–90°C, sugar is added, and water is boiled off in an evaporator under partial vacuum. The thick milk is homogenised, cooled fast and seeded with lactose for a smooth texture, then filled into cans. Buyers are grocery shops, sweet shops, bakeries, ice-cream and confectionery makers, and tea stalls.

Capacity: 100 kg a day, 30,000 kg a year = 1,50,000 cans of 200 g; 50% in year 1 rising to 70%.

§2Is it right for you?

Who it is for

A dairy farmer group or milk collector who wants a value-added product.

Who it is not for

Someone without a steady milk source.

Advantages

  • Used in tea, sweets, ice cream and baking
  • Long shelf life once canned
  • Adds value to local milk
  • Fits dairy and food-processing schemes

Drawbacks

  • Milk price and supply change with the season
  • Big dairy brands dominate
  • DSCR under 2 leaves little cushion
  • Strict hygiene and food-safety rules

Skills you need

  • Dairy processing and hygiene
  • Evaporator and homogeniser operation
  • Milk procurement
  • Selling to sweet shops and bakeries

Why difficulty 3/5: Dairy hygiene and steady milk supply need close control.

§3Market

Who buys

  • Grocery and kirana shops
  • Sweet shops and bakeries
  • Ice-cream and confectionery makers
  • Tea and coffee stalls

How it sells

  • Food distributors
  • Direct supply to bakeries and sweet makers
  • Modern retail

Good to know

  • The report lists uses as sweet milk drinks, tea and coffee, ice cream, candy and confectionery, and home dishes, and says it is consumed by all age groups.

§4Raw material & machinery

ItemQtyCost
Evaporation tank, 100 litres an hour1₹2,80,000
Packing and other equipment1₹2,80,000
Can washing machine1₹2,00,000
Milk homogeniser, 300 litres an hour1₹1,95,000
Milk storage tank, 500 litres1₹1,65,000
Refrigerator, 500–1,000 litres1₹1,20,000
Baby boiler, 0–500 kg an hour1₹1,00,000
Milk weighing machine, 200 kg1₹9,000

From: PMEGP sample project report — Sweet Condensed Milk (prepared by Udyami/Samadhan)

  • Milk80,000 litres a year at ₹30 a litre at full capacity
  • Sugar10,000 kg a year at ₹20 a kg
  • Empty cans1,50,000 at ₹5
  • Preservatives and other chemicals

From: PMEGP sample project report — Sweet Condensed Milk (prepared by Udyami/Samadhan)

In our raw material database

Sugar →Milk (raw) →Skimmed milk powder (SMP) →

§5Licences & registration

  1. Udyam
  2. GST
  3. FSSAI licence (the report lists FSSAI registration)
  4. Legal Metrology registration for packed goods
  5. Boiler registration if a steam boiler is used
  6. Trademark for your brand

We can do this registration for you

§6Schemes & subsidies

PMFME (micro food processing, including dairy), PMEGP, MUDRA up to ₹20 L and CGTMSE fit.

§7Money

How the investment is worked out: PMEGP sample report: building/shed 2,000 sq ft ₹4.00 L, plant & machinery ₹13.49 L, furniture ₹0.75 L, working capital ₹4.44 L = ₹22.68 L. Land own or rented.

Working capital: Working capital ₹4.44 L (bank ₹4.00 L): only 1 day of milk and 7 days of finished stock; debtors are the largest item.

Year not printed on the 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

0402.99Milk and cream, concentrated, containing added sugar — not in powder form

Export council / board: APEDA

  • APEDA registers exporters of dairy products.
  • Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.

§9Risks — where people fail

  • Milk shortage in summer
  • Spoilage from poor sealing
  • Brand competition
  • Food-safety failures

§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 sweetened condensed milk unit 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, GST), 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 Sweetened Condensed Milk Unit?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Sweet Condensed Milk (prepared by Udyami/Samadhan)

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