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How to Make Money from Dal Mill Business

Introduction to make money from Dal mill business

Dal milling is a money-making business in India. You can propose the business set up based on production output. Dal is an important and famous food grain in India. Dal milling is the third-largest food processing industry in India after rice and wheat.

Ideas to start and make money from Dal mill business in India

The production of pulse in India ranges from 12 to 15 million tons every year which must have a separation process to have them in the market. Generally pulses are consumed as one of the variations of food preparation after alteration into a de-husked split pulse that is cooked easily. According to a few reports, it is considered that more than 70% of the pulse produced in India is converted into dal.

You might think of many things like where can I get dal mill information for setting up dal mill business in India. This blog makes you aware of the details to start the dal milling business like – dal mill business planmachinery cost for dal milldal mill business investment, license for dal mill business, etc.

The market potential for Dal mill business to make great money

Milling of pulses is practiced as a small-scale rural activity during ancient times and recently it is even into large commercial operation for the rise in demand for the food. But large scale dal milling industries requires more capital, power and even raw materials supply to attain economic stability and produces high standard product while small scale units generate the inferior quality product with low yield compared to large scale dal factories.

Although some small-scale units for instance mini dal mill stand satisfactory in few steps such as de-husking pulses, some of the machine parameters, small capacity, and particularly wet pre-milling treatment become restrictions for these units. However, such small or mini scale units are employed only for easy to mill pulses for example toor dal, chana dal, etc.

There has been a steady demand from the businessmen and consumers for a small-scale mill of about 300 kg per hour capacity, which can operate all pulses including minor pulses. The versatile dal mill is intended to process different types of pulses even the minor ones. The mill is comparatively safe from dust pollution.

The income and success of dal mill businesses are based upon the constant supply of raw materials. If you dwell in an area with large scale production of dal then you can initiate the dal mill business since it will have the regular supply of the dal raw materials easily.

Registration and licensing for Dal mill business 

Dal mill business needs various types of licensing, permissions, and registrations. These include

  • Registration of the business firm
  • Trade license from the municipality authority and you must get registering for LLP (Limited Liability Partnership) or Private Limited Company.
  • Apply for MSME Udyog Aadhaar registration online.
  • SSI registration for availing subsidies and loans.
  • Apply for FSSAI registration
  • Get the GST number.
  • It is better to take consent from the pollution control board.

Dal mill business plan to make good money

The following aspects must be kept in mind to design a checklist for initiating the business plant. These include-

  1. Verify the space available for establishing the dal mill plant. You can even see renting a space when you are not having your own space.
  2. You can begin your unit either by your saving or through bank loan; if you go for bank finance then you must show the collateral security to the banks.
  3. The machinery process differs based on the type of dal and the cost of the machinery.
  4. You can also contact the dal mill machinery manufacturer for getting more details.
Dal mill machinery

The machinery for dal mill comprises the precleaner, grader, de-huskers, aspirators and blowers, control panels, bucket elevators, pedal mixer, destoner, and packaging unit.

Process of Dal milling

The basic steps in dal milling are cleaning the raw materials, adding oil and the sun or mechanical drying, conditioning, grading and de-husking, splitting, and next, is separation, after that polishing and lastly bagging.

The chief process is the removal of the outer husk layer and splitting the grain into two halves for the milled dal is the major task involved and the next one is the drying method.

You can also search online for ‘dal mill near me’ and visit the place so that you will get an idea about space, process, how to get customers, etc.

In case if you miss this: Profitable Business Ideas for Villages in India.

Important aspects to be considered in the Dal mill business 

It has two main segments one is the technical part and the other is business finances.

Technical aspects of the Dal mill business

The technical segment of dal mill business comprises the following-

  1. The production capacity of dal mill 159kg/hr
  2. The number of shifts must be two.
  3. The minimum daily production capability for the mill must be 2.53 tons
  4. 70% of capacity utilization must be present.
  5. The number of working days per annum of the mill must be 300 days.
  6. The annual production of the mill must be 6%
  7. Loss during de-husking must be 6% and that must not exceed this percentage.
  8. The net production every year should be 500 tons.

Infrastructure requirements for Dal mill business

These comprise the following-

  1. The land area should be at least 1000 sq. ft to arrange the dal mill unit.
  2. The power needed is around 25 KW to set-up a dal mill.
  3. The water supply requirement is very minimal in this business.

Dal mill business investment or the cost to start a Dal mill business in India

The cost to start a Dal mill in India.
The cost to start a Dal mill in India.

This can be sectioned into fixed capital and working capital requirement which comprises the following list-

Fixed capital requirements (Set A)

These comprise the following –

  1. If you own the land, then the amount would be reduced in the business finances.
  2. The costs involved in area development is Rs.65,000
  3. Costs associated in the building of work shed is Rs.5,00,000
  4. Costs for setting up dal mill plant and machinery is Rs. 2,00,000
  5. The miscellaneous charges and for fixed assets is Rs.50,000
  6. The peri-operative charges involved in arranging the mill is Rs.35,000

The total fixed capital investments will be around Rs.8,50,000

Working capital requirements (Set B)

These comprise the following –

  1. Raw materials and consumables for a single month are Rs.50,000, so for 1 year it would be Rs. 6,00,000
  2. Costs associated with finished goods for a month is Rs. 50,000 for 1 year it would be Rs. 6,00,000
  3. Charges for workers for 1 month is Rs. 8,000 to 10,000, so for 1 year it would make up to Rs. 1,00,000.
  4. The total working capital for the dal mill will sum up to Rs. 13,00,000

So, total costs for setting up a dal mill business in India is Rs. 21,50,000 (i.e., Set A + Set B = Rs. 8,50,000 + Rs. 13,00,000).

Profit margin in Dal mill business 

The wholesale market price of dal is Rs. 25,000 per tonne and the annual sales for 100 tonnes will make up to Rs. 25,00,000. Therefore, the profit can be expected by more than 25% of profits in the first year. Later from the second year the cost of fixed capital is minimized. So, the profit percentage will be increased from 2nd year.

Subsidies available for Dal mill business

Entrepreneurs can avail of the government subsidy for mini dal mill by submitting all the details. To set-up dal mill unit you can avail subsidies about 25% in urban and rural places but in other areas you can get around 33% of the machinery cost and others to arrange small or mini scale units in India. Every state will be having these subsidies from the government to boost the upcoming businessmen. This amount will be provided at two stages in the form of first and second installments. Thus, you can get these subsidies apart from bank loans which will aid in starting a dal mill business in India particularly in rural areas.

The conclusion to make money from Dal mill

The mini dal mill business or commercial Dal mill business has wonderful scope in India and with a proper business plan, one can earn huge profits in Dal milling. Personally I prefer Toor Dal milling. You can get more profits, If you grow pulses and mill them. Personally I prefer Toor Dal milling, Urad Dal milling (Black gram milling), Green gram milling, and chenna Dal milling.

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