Condensed Milk Production – Business Plan

How to Start Condensed Milk Production Business


Hello friends, today we are here with a topic of condensed milk production business in India, Milk is a very valuable item that is consumed around the globe. The delicious product is obtained mainly from cows however other animals like are goats, and camel is also used.

The product has a versatile use in food, snacks, drinks, and home products. Whole-milk is processed into unsweetened condensed milk, evaporated milk, yogurt, and sweetened condensed milk. Sweetened condensed milk is obtained by adding sugar which is also used as a preservative. While unsweetened condensed milk is sent for heating and sterilization during packaging.

Water is evaporated from Whole-Milk completely or partially to have condensed milk. The process is attained irrespective of the quantity of sugar content in the milk.

A step-by-step guide to start a Condensed Milk Production business in India

Condensed Milk
A guide to start a Condensed Milk Production (Image credit: pixabay)

How is Condensed Milk prepared?

The simple step of producing condensed milk is standardization, heating to initiate evaporation and clear microorganisms. The addition of sugar in the starting stage imparts the sweetened taste.

The evaporated item, the unsweetened condensed milk, is commonly packed in cans, which are then made aseptic with the use of autoclaves or horizontal sterilizers, or UHT-treated and properly packed in aseptic conditions using paperboard packages.

Sweetened condensed milk is concentrated milk, to which sugar is included. The product seems yellowish but is very viscous in texture. The high sugar concentration in sweetened condensed milk enhances the osmotic pressure killing most of the microbes. This product is not heat-treated after packaging as its having good sugar content which preserves it for a long duration. The sugar concentration in the water phase must not be lower than 62.5 % or greater than 64.5 %. At the latter level, the sugar solution reaches its saturation point and some sugar will directly crystallize, forming sediment.

The first stage, in both cases, includes precision standardization of the milk fat content and the dry matter content. After that heat treatment is carried out, which is partly to destroy the microorganisms in the milk and partly to impart stability to milk so that it will not coagulate during the next steps of the sterilization process. Raw material requisites and the initial treatment are similar for both items. After that, the steps slightly change.

Market potential for Condensed Milk Production business

Condensed Milk is having an extensive market. It is a famous FMCG item. Condensed Milk represents the second-largest consumed dairy product in Asian countries particularly, after liquid milk. Moreover, demand is increasing quickly throughout the world. India is the world’s largest producer of buffalo and cow milk and thus also the largest producer and consumer of Condensed Milk.

The homemakers in the age-group 25-45 having children who are the main consumers of Condensed Milk. So, it is a highly rewarding market for beginning an organized Condensed Milk manufacturing business.

How to Start a Sweetened Condensed Milk Production plant

There are some steps to take before beginning the enterprise. Carry out a market study to know the market potential in your location. Check out the various other competitors of the product and understand their marketing policies. Get the information about how to turn whole-milk into condensed milk through practical knowledge.

Other ways to get the knowledge is through online study materials like publications, books, classes, and seminars. It is also essential to craft a proper business plan.

Location required to start the Condensed Milk Production

You must have an aseptic environment to produce safe condensed milk. Take a small factory or even can start from home. The business can be initiated as a large scale one or like a small business. You can keep the condensed milk factory in a busy marketplace or in a region where your source of raw milk is accessible.

Usually, those who opt for large condensed milk have their milk farms and units. They plan to produce unsweetened condensed milk, evaporated milk, and sweetened condensed milk. The factory must have a good road provision network and sufficient parking space.

License, registration, and permissions required to start Condensed Milk Production unit in India

Both limited and unlimited liability is determined by the business format you opt for. Register your business name and apply for VAT identification.

Your product will also need testing and certification. Check anti-pollution guidelines and local government rules.

The next step is to avail a food and safety license from the Food Safety and Standards Authority of India (FSSAI). This, however, essential to ventures making more than 12 lakh income. It is significant to register your business and gain a Trade License. You need to avail a No Objection Certificate from your society/residential area. Along with that, you will register the name of your business. Here you should know about licenses for beginning a Condensed Milk food in India.

Take care of health, labeling, and nutritional guidelines so that you are complying with FSSAI guidelines. Based on what region you live in, there may also be state health and food preparation regulations to follow. Your kitchen could be inspected by the local health and safety associated with authorized personnel. Establish your company with all required legal requirements, according to the laws of your state and national guidelines, and register as a corporation in compliance with the Internal Revenue Service and your state’s tax office.

Below is the list of licenses required before starting the Condensed Milk making business in India: Registration of the firm, GST registration, Trade license, Pollution certificate, MSME/SSI registration, EPI and ESI registrations, Trademark, FSSAI registration, IEC code, FPO act.

Business Entity: The first registration for any business is to register it as a business entity by knowing about the form of the organization. It could be as a sole proprietorship or a partnership or a limited liability partnership or a one-person company. This will help in availing a few benefits to the business and must, therefore, be selected carefully before registering the business at the Registrar’s office.

FSSAI registration: A Condensed Milk is classified as the processing of food or food products and thus as per the definition requires an FSSAI registration. Food Safety and Standards Authority of India (FSSAI) is meant for protecting and promoting public health by regulation and supervision of food safety hence FSSAI is a mandatory registration/license for the business. The FSSAI registration process is entirely online and quite easy to follow, once the documents are ready.

Shop Act or Trade License: A Condensed Milk business for example in Maharashtra, India requires applying for a Shop Act License from the local municipal authority to run the business. This license helps manage the working conditions along with working hours, leaves, wages, holidays, etc. of the employees and supports the business to run smoothly.

Udyog Aadhaar Registration: A Condensed Milk is categorized as a small business and hence it must be registered under Udyog Aadhaar which is a registration and recognition for MSMEs- micro, small, and medium enterprises.

GST Registration: Every business, including Condensed Milk, should associate with taxes at some point and for monitoring a single uniform taxation structure, the business should get a common GST number which stands for Goods and Service Tax.

BIS certification: Apart from these registrations the business should get BIS certification as well as tax liabilities.

No Objection Certificate from State Pollution Control Board: A Condensed Milk doesn’t cause any pollution so no clearance is needed, however, it is recommended to check it with the State Pollution Control Board of the locality where the business is established.

Uses of Condensed Milk

Condensed milk is used to provide flavor to coffee or tea. Milk is added for chocolate toppings, an ingredient in cold cakes deserts, fruit puddings, and even pies. It is also used for biscuits, sweets, and treats.

How to Process Evaporated Milk

Before you begin a condensed milk production as a business you need to be aware of how to turn entire milk into condensed milk. There are two kinds of condensed milk, one is the sweetened condensed milk and the other is unsweetened condensed milk.

Standardized milk is used during the processing of evaporated milk. The standardized milk is heated to cause evaporation and homogenization. After cooling a standardization test is performed. The evaporated milk is then packaged in sealed containers like bottles, nylons, canned, and then sterilized.

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Sweetened Condensed Milk

Whole milk has full cream and sugar added to the reconstituted concentrated milk. The next step is the homogenization later pasteurization and at last crystallization.

Sweetened condensed milk goes through these steps. Standardized milk-sugar is added-evaporation-cooling-crystallization – sterilized packaging and sealing.

Build a website of your company

There is a nice opportunity currently to have your website showcase your milk items. Makes sure the packaging is attractive and beautiful. Look for a website developer to get the site and add important elements to it.

Cost or investment to start a Condensed Milk production business

If you are choosing any small-scale business in Condensed Milk production then you must pay for raw materials specifically milk and other things such as packaging material and other things. If you are inaugurating a small-scale business then employees’ remuneration is also essential. The capital for a small-scale Condensed Milk production business is Rs. 1 lakh. Additionally, on a large-scale basis, the equipment can be around 2.30 lakh rupees. The cost of raw material could be about Rs. 10,000. Therefore, the entire cost could be estimated to 1-1.5 lakh rupees.

For beginning the business, you must plan for the budget. You may charge around 150 to 200 rupees per kilogram in the market. Not only this, but you can also directly contact and have a network with restaurants and hotel industries.

Profit in Condensed Milk production business in India

Because of the high demand, the profit margin in the Condensed Milk business is high. One can gain up to 2000 rupees every day. The profit margin in the Condensed Milk production business is much more for wholesale dealers. If you carefully follow the above-mentioned steps you can earn income through the Condensed Milk production business though you have spent less capital.

How to market your Condensed Milk product

Evaporated milk and condensed milk have a great demand. There is very strong competition between top brands and businesses. Small manufacturers need to explore out a niche market to beat powerful brands. Focus on local stores, supermarkets, kiosks, and stores in your nearby community. Do plan for advertisement, provide some offers and specific promotions. Make sure you prepare high-quality milk to retain your clients.

Marketing strategies for promoting Condensed Milk

As per earlier discussion you should pick a proper good location for your Condensed Milk business. If you plan the business in a good place, you can market easily without spending much money or effort on marketing. A poster or signboard in front of your store will be sufficient. However, if you want to do home delivery, you should keep a website for the Condensed Milk business. You can design it similar to an e-commerce website where people can book directly from the webpage. Besides that, you may also do advertisements in newspapers and the internet for getting traffics to the website.


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