Yogurt Making Business – How To Start In India

Starting a Profitable Yogurt Making Business


Are you fascinated by starting a yogurt production company? Do you require a sample frozen yogurt production business plan or guide? Then below is a comprehensive model of starting a frozen yogurt production company.

Most businesses that offer foodstuffs and snacks thrive since their requirement is constant for these products. One of such always-in-demand foods is frozen yogurt. A good number of people love frozen yogurt as a healthier substitute to traditional ice cream cones; thus making the yogurt production business a money-making one. This business is also suggested if you reside in a province with hot weather such as Asia and Africa.

If you have been observing to start a profitable business of your own, a frozen yogurt production company is a very worthy option to ponder.

Though the frozen yogurt production business necessitates huge start-up prices, the business is very money-spinning, and you would recover your investment speedily. If you are concerned about starting this business, then further down you will notice the exact steps:

Procedure to start a Yogurt making business in India

Yogurt Making
How to start a Yogurt making business (Image credit: pixabay)

Market research for Yogurt making business

You must research to decide exactly what the public is interested in. This will also help you know if the frozen yogurt business will sustain itself in your region. One of the keys to success in any business is presuming out what customers desire and how they require it and providing it to them the way they assume is the perfect plan.

During your research, you may explore some fascinating data that will help raise your business. Perhaps there is untouched demand for definite varieties of frozen yogurt for example lactose-free frozen yogurt or frozen yogurt made with local, free-range milk. As a smart businessman, you must study all breaks, dangers, and potentials.

Business plan for starting a Frozen Yogurt making business

Writing a business plan will aid you to know your start-up and operation costs. It will also aid you to gain some vision about the potential customers and information about the possible competitors are, and how you can overcome your competition by emerging with your unique selling strategies.

A business plan also gives an idea about the possibility to make projections and realistic plans for the coming days. It will clarify you and aid to define your specific costings and how quickly you can generate income. If you tried to get the feasibility study, then writing a business plan will be a very simple aspect because most of the work will be accomplished in the research phase.

Location or area required for starting a Frozen Yogurt making business

The location of your business can largely command its success or failure. So, you must properly research to get the perfect place to locate your business. Also, you could determine if your business needs a retail component. This can gain you a large capacity of small profit sales, but you must be able to reduce the extra investment costs.

Building distribution network for Yogurt making business

What is your network of distribution? To run a fruitful yogurt production company, you must check out distribution deals with existing businesses, such as restaurants, cafes, supermarkets, and snack stores.

Investigating to check out the number of ready buyers around you will aid you to know the magnitude of products to yield when you jump full operation.

Source for funds for starting the business

If you have all the resources you require, then you start it off. But if you are not sufficiently sound with funds before you can begin your frozen yogurt production business, you may approach a bank, or government funding agency, or some other loan-giving financial establishment.

This is where your business plan powers you to project your venture. If your business plan is convincing and depicts a bright future for your business, then stockholders would be eager to fund it.

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

It is very important to choose the proper organizational form of your business. There are options to register as a sole proprietorship or as a Limited Liability Company? After fixing that, you have to go to register your Business Name with the nominated agency in your nation and attain all necessary licenses and permits.

Below is the list of licenses required before starting the Yogurt 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 Yogurt 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 Yogurt 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 Yogurt 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 Yogurt, 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: Yogurt doesn’t cause any pollution and 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.

Cost or investment to start the Yogurt making business in India

If you are choosing any small-scale business in Yogurt 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 Yogurt 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 at around 1 to 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 margin in Yogurt making business in India

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

Equipment required to start Yogurt making business

You must have the provision of a shop or warehouse, a production unit, and an administrative office. You can either go for lease or develop them on your land if it’s in a suitable location. But the purchase of land will incur higher capital. While beginning, you must place all your component facilities in one region. You can detach them later when you have handsome profit and ready to expand.

It is essential to purchasing the major tools and materials needed to initiate your frozen yogurt production business. These comprise soft serve dispensers, furniture, display freezers, blenders, and yogurt-making machines.

In case if you miss this: Aloe Vera Juice Making Business In India.

Raw materials required to start Yogurt making business

Approach the suppliers of the raw materials and procure the ingredients that you require. If possible, have the contact of two or more suppliers for each component, to avoid an inevitable obstruction in your business if a supplier is unable to provide the material when you do not have stock for that particular ingredient.


The last stage in the manufacturing process of yogurt 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.

Hiring staff required for the business

You may appoint a few staff in the beginning. Hire the most appropriate people for each position, and give them the necessary training so that they will justify their roles properly.

Marketing strategies for promoting your Yogurt business

Ensure to keep in mind that frozen yogurt is a luxury food product which majority of the people do not need. Thus you may need a careful marketing policy to entice potential customers so that they get convinced to purchase your product.

You can initiate by creating awareness about your merchandise before beginning your initial batch. You may distribute free yogurt as a sample on the first day to have an idea about the taste of what you are offering. Later on, plan to advertise using print media like newspapers and magazines. Then you can plan to create banners, run promos, and try out online marketing ways such as Instagram, Facebook, etc.

Challenges in starting a Yoghurt making business

Though frozen yogurt is a very profitable business with enough income, there are still some defies that you face in this. What makes you successful in this business is your capability to overcome these challenges. Below are a few defies you may encounter as a frozen yogurt owner.

a. Poor power supply

Power failure is a very serious problem when beginning a frozen yogurt business, especially when you are working in developing countries for example Nigeria, etc. But if you are in a plan to develop in the developed countries such as Canada, or the USA, then the power supply is not a troubling aspect.

Now your primary product must be marketed and sold to the end-user in the frozen state, so the power supply is very significant. To overcome this challenge, you should minimum keep two standby power generators or better still, try accommodating your production factory in an industrial area with regular power provision.

b. Climatic condition

The victory of your frozen yogurt production business is significantly dependent on the climatic situation of your region. The sales of frozen yogurt thrive in regions with hot or moderate temperatures. Examples of such regions are Nigeria, Syria, Libya, Ghana, Egypt, India, etc. But if you are dwelling in cold areas such as Russia, then you may have difficulties selling your product.

c. Getting a suitable cooling van

You require a cooling van, as well as other cooling machinery to boost up your business. However, the problem will be to choose a van or other equipment that suits your exact need and particularities. The cheaper way is to find a second-hand truck or cooling device. You can also reach a local engineer or mechanic to customize it as per your need, but going this path will be somewhat costly.


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