How To Start Ghee Making Business – License, Profit

Introduction on how to start a Ghee making business in India

Do you plan to start a ghee making business? Check out a detailed guide on how to start a ghee production plant with the use of machinery and important aspects of the manufacturing process.

Ghee is very popular in the South Asian region. It is not only popular for cuisine but it also has a wide range of uses in the medical field, cosmetics industries as well as in traditional religious rituals.

A step by step guide on how to start a Ghee making business India

Ghee is a class of clarified butter. It is a dairy product. Commonly, you can use cow milk for preparing good quality ghee. The quality of the finished product mainly depends on the quality of the butter, the source of the milk used in the process, and even the duration of the boiling.

Ghee and its health benefits

Ghee is famously is consumed for its healthy fat-soluble vitamins such as vitamins A, D, E, and K. Actually, these vitamins are essential for promoting bone and brain health, and for enhancing the immune system. Ghee is the richest source of animal fat for vegetarians. It provides 9 K calorie energy/gm.

In addition to that, ghee transforms fiber into butyric acid, which is good for the gut bacteria. Also, it aids to increase appetite, nurturing better health, and weight loss. Ghee cooks at a higher point so free radicals are not released so easily like any other oil.

Market potential to start a Ghee making business in India

Ghee is having an extensive market. It is a famous FMCG item. Ghee 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 ghee.

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

Business plan to start a Ghee making business in India

This is a very important step where you need to list out all the things required to start the business. Below are the steps which you need to follow-

Market research for Ghee making business plan

First of all, you should conduct thorough market research at your location. There are many types of ghee are available now in the market. Mainly they are either cow milk ghee or non-cow milk ghee. Also, ghee comes in multiple flavors.

So, you need should know the specific demand for various ghee varieties. In addition to that be aware of the established ghee manufacturing brands in your locality. Check the packing and price of those ghee packets. These all will aid you in designing the business plan and starting the manufacturing operation.

Finally, you should design the business plan or project guide. Typically, a business plan should include executing summary, project cost, financial analysis, and marketing plan. If you are willing to start a large-scale operation, you can avail of loans from banks.

Registration, license and permissions required to start Ghee making business in India

It is very important to consider this aspect of registration for your business no matter you plan for any size of your business. The process differs depending on your state’s laws. Additionally, as it comes under the food category, the ghee manufacturing demands particular permission from the concerned government body. It is recommended to consult with a business consultant for operating the unit smoothly without any legal troubles.

Below is the list of license required before starting the ghee making business in India

•           Registration of firm

•           GST registration

•           Trade license

•           Pollution certificate

•           MSME/SSI registration

•           EPI and ESI registrations

•           Trademark 

•           FSSAI registration

•           IEC code

•           FPO act

Ghee making business set up

Generally, you can begin a small-scale ghee making business plant in a 100-150 sq. ft. area. However, space is based on the business size and the expected production capacity or yield in specific.

Choose the location properly. It is better to have space near to the industrial area. Additionally, you must check for a good water resource and an uninterrupted power supply. Check the transport availability provision as well. If you wish to keep a goods vehicle for logistic purposes then make sure you allocate a safe parking place.

You should not miss this: How To Start A Vinegar Production in India.

Machinery required for ghee making business

Generally, the requirement of ghee making machine is based on the manufacturing process one adopts. However, in case an individual follows the direct cream method, you must get the following machinery.

Steam heated double jacketed kettle made up of stainless steel

  • Agitator
  • Steam control valve
  • Pressure and temperature gauges
  • Movable, hollow, stainless steel tube centrally bored in the kettle
  • Thermometer
  • Weighing scale

Raw materials required to start a Ghee making business

All you need is just creamy milk. Where you can collect the cream from the milk. Or else you can get the cream from which you can directly start making the ghee.

Procedure for Ghee making process

Actually, for a large-scale business, you need to produce ghee continually. A new method of ghee making has been developed named as prestatification method. Cream (ripened/unripe) can also be utilized for ghee making. Ghee prepared from unripen cream has a long shelf life. However, you must follow the preparation method of ghee from the unripe cream.

The manufacturing process includes two steps: separation of cream from milk and extraction of ghee from the cream. Also, you may sell the cream less milk in the form of toned milk. You can arrange a pasteurization plant to enhance the shelf life of the milk and to extract cream using an automatic machine.


The last stage in the manufacturing process of ghee is called packaging. In this process, the packaging is automatically done by the machine which has a ribbon of flat packaging cardboard threaded into it.

Cost or investment to starta a Ghee making business

If you are choosing any small scale business in ghee 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 small scale ghee 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 Ghee making business in India

Profit in Ghee making business in India
Profit in Ghee making business in India

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

Marketing strategies for promoting Ghee product

As the ghee is an FMCG product, it must have extensive advertising and product promotion methodology. And it is recommended to have an organized marketing team. Select a trendy and memorable name for your product. Prepare the label properly. Advertisements in the electronic media and FM channels are very essential in promoting this type of item. In addition to that, try to keep your product in retail stores as much as possible in your area. Supermarkets and malls are also the best choices for selling the product.

Ghee manufacturing is a working capital-based business. So, proper cost analysis and financial forecasting are essential for gaining long-term success.

In case if you are interested in this: Dairy Farm License In India.



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