Milk Powder Making Business – How To Start

How to start a Milk Powder making business in India

Today, its own food production business is about to gain more and more importance, as this industry to attain good earnings. Unfortunately, currently, many entrepreneurs are completely unaware of the commercial production of milk powder. In most parts of our country, there are no producers left at the local level. Meanwhile, the demands about the food industry in this raw material are huge, and sometimes it is essential to import it from other countries.

A step-by-step guide to Milk Powder making business in India

Milk Powder
Milk Powder making business in India (Image credit: pixabay)

Market potential of milk powder making business

Setting-up the production of milk powder, you can very well predict further development. You have every opportunity to establish a full-fledged plant giving rise to all types of dairy products. Given the cost of it in the recent decade, you will hardly have to carp about low gains. If you are not worried about the strict necessities of the SES and constant checkups, we endorse that you pay consideration to the production of dry infant formula for baby food.

Apart from that, on the same equipment, it is possible to manufacture other products like egg powder, bases for soups and broths, and perform an extraction. Thus, you will acquire somewhat a multifunctional complex that can drive huge profits. Have you ever thought, how is the rate of milk powder? Even in international markets, the demand for milk powder is more: for example, up to 4 thousand dollars can be gained per ton of this product in the USA and Canada, in Australia is sold at about the same price, and Europe imports it at 3-3.5 thousand. Please note that these are only non-fat assortments! If we talk about products of standard fat content (~25%), then a batch of such milk will arrive at 5 thousand per ton. Even in a country like India in our country the production of milk powder is quite a money-making business, the marginal profitability is around 30-40%. 

Uses of Milk Powder

It is used for the production of expensive ranges of natural cosmetics, for the production of reconstituted milk, and some dairy foodstuffs. This is particularly true for regions of the Far North, where cows (for the actual scenario) cannot be raised. Of course, it is widely beneficial in the confectionery industry, in canning, and for the preparation of animal feed. In short, the production of milk powder is correct, as it has to cater to a large market and its saturation is minimum. This is principally true for those regions where dairy farming is scarcely developed for some factors.

Raw materials required to start a milk powder making business

The main benefits of the milk powder business are that it only demands large investments. It is allowable to use the cheapest milk with low-fat content and the concentrated content of somatic cells as raw materials.

Business plan to start Milk Powder making

The unit in which this food product will be prepared must meet sanitary necessities. Take precaution to have a sewage and heating, water supply system, as well as electrical wiring, designed for 380 volts. It is vital to equip the workshop with system forced ventilation and to tiling the floor and walls with ceramic tiles. For this, you can get plastic or other materials that lend themselves well to washing and disinfection.

Registration, license, and permissions required for starting Milk Powder making business in India

If you plan to start any food processing and Production Company, you should register the company and acquire the required license before you can be allowed to operate. This is so because most countries follow the proper guidelines which monitor the food industry to evade the production of substandard goods/foods that might be damaging for consumption.

So opening your own milk powder production company needs that you register your company and investigate from the body regulating foods and drugs in your province to get the compulsory license. Make sure you add a catchy name to your company that is generic to the food industry.

Below is the list of licenses required before starting the Milk Powder 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

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: As Milk Powder 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: As the Milk Powder 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: As the Milk Powder 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 the Milk Powder, 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: Milk Powder 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

Equipment required to start Milk Powder making business

The production of freeze-dried milk demands only one unit. It is a special drying chamber, the design of which comprises several units in a single apparatus, a pump, a sublimation chamber itself, which is driven by gas or electricity, a bunker for final products. Powdered milk is sent to a special sifter, which then passes to the packaging equipment. Few other types of machinery which are necessary are fat meters, Recuperators, conveyors and fans, etc.

In case if you miss this: Ideas To Make Money In India.

Procedure to start Milk Powder making business

First, the milk is heated to a temperature of 35-40 degrees Celsius. After that, it goes to the cleaner, where it is sent through a system of filters that separates small fibers, wool, and other residues that have passed through the filters on the farm. Often, milk powder producers in Russia encounter a high concentration of somatic cells. This is because the cows with mastitis are not so rarely milked into the general stream. So in our case, there are no such extra filters! Milk is heated so that products with various organoleptic properties mix. Immediately after this, it is transported to the normalizer, where there is a step to obtain the product with the optimal fat content and cream. 

After this you have to follow pasteurization, the conditions of which can vary mainly depending on its type: If the milk is heated to 65 degrees for half an hour, then we are referring to a long-term variety; when it heats up to 95 degrees for a minute – about short, and at 98 degrees and a couple of seconds of heating – about instantaneous. This process serves to eliminate the harmful microflora. After this, the milk is cooled, cleaned again, and then passed to the sublimation chamber, where it is evaporated until 40% of the dry matter is left over in the mixture. Then the final composition is homogenized, that is, adjusted to a homogeneous consistency. And only after that, the production of skimmed milk powder is sent to the final stage when it is subjected to complete drying. Later, the finished product is packed in branded packaging.

Cost of the equipment used in Milk Powder making business

Today on the market there are several offers for the sale of the equipment for you. Moreover, for about 5-6 lacs, and you might be the owner of a monoblock set-up, where it is easy to yield not only milk powder but also the entire range of dairy products, including cheeses. A separate sublimation unit will be around 10 lacks. The price depends on volume, manufacturer, and other aspects. It will be essential to purchase cooling and heating plants, fat analyzers, filtration systems, pasteurization machines, and tanks.  

Machinery required to start Milk Powder making business

If you explore what machinery is necessary to be procured for the production of milk powder, then it could be beneficial that you purchase a plant. It will be much simple to set up. Secondly, having the freedom to produce such a wide variety of products, in any way have your niche in the market. Simply put, high-standard items and dairy products encourage sales. Another aspect is that owning an appropriate site for such a large-scale production might be tedious. 

Profit in Milk Powder making business in India

Despite the tremendously high profitability of the sale of milk powder in areas with poor agricultural progress, an entrepreneur may just come across a situation where there is a lack of raw material for production. In this scenario, the only optimal solution is to run your small dairy farm for about 500 cattle. All this will increase up your business by around 10 folds, but in the long run, you can get superb dividends.

Conclusion of Milk Powder making business

Besides, we draw your focus once again to the fact that, whenever possible, you must not depend on milk powder only: the more varieties of these products you produce, the more you will be safe from market-based risks. In this way, your business will be more sustainable. To summarize all of the above, we would like to suggest the construction of a plant for the production of milk powder in those regions in which there are no difficulties with raw materials procurement. In this case, it will be essential to establish good logistics for the delivery of items to those areas in which there is a scarcity.  



Please enter your comment!
Please enter your name here