Skip to content

How to Start Ghee Manufacturing Plant Business

Do you want to start a ghee manufacturing business? Find here a detailed guide about how to start a ghee production plant with machinery and manufacturing processes.

Basically, ghee is very popular in South Asian countries. Not only for cuisine purposes, but also has wide applications in medicines, cosmetics, and traditional religious rituals.

Actually, ghee is a class of clarified butter. It is a dairy product. Generally, you can use cow milk for producing good-quality ghee. The quality of the finished product highly depends on the quality of the butter, the source of the milk used in the process, and the duration of the boiling.

Health Benefits of Ghee

Ghee is rich in healthy fat-soluble vitamins such as vitamins A, D, E, and K. Actually, these vitamins are important for promoting bone and brain health, and for boosting the immune system. Ghee is the richest source of animal fat in the vegetarian diet. Actually, it supplies 9 K. calorie energy/gm. It can be stored under tropical storage conditions.

In addition to that, ghee converts fiber into butyric acid, which is beneficial to intestinal bacteria. Also, it helps to increase appetite, fostering better health and weight loss. Ghee cooks at a higher point than almost any other oil. That is why it won’t break into free radicals like other ones. Free radicals can potentially be harmful to one’s health.

Is Ghee Business Profitable?

Already there is a wide market for ghee. It is a popular FMCG item. Ghee represents the second-largest consumed dairy product in Asian countries, after liquid milk. Additionally, the demand is growing rapidly throughout the world. India is the world’s largest producer of buffalo and cow milk and consequently also the largest producer and consumer of ghee.

Basically, population growth, health benefits, increasing disposable incomes, and penetration in newer markets currently represent some of the key factors driving the demand for this product. Actually, homemakers in the age bracket of 25-45 with children are the major consumers of ghee. So, it is a highly lucrative market for starting an organized ghee manufacturing business.

6 Steps to Start a Ghee Manufacturing Business

1. Market Research & Business Plan

First of all, you need to conduct a market study at your location. There are several specific types of ghee are available in the market. Broadly these are cow milk ghee and noncow milk ghee. Also, ghee comes in different flavors.

So, you need to understand the specific demand for different types of ghee. In addition to that identify the established ghee manufacturing brands in your area. Check the packing and price. These all will help you in crafting the business plan and initiating the manufacturing operation.

Finally, you need to craft the business plan or project report. Typically, a business plan includes executing a summary, financial analysis, project cost, and marketing plan. If you want to start a large-scale operation, you can consider applying for bank finance.

2. Business Registration & License

Regardless of the size of your business, you need to get business registration. Definitely, the process varies depending on your state’s regulations. Additionally, as it comes under food items, ghee manufacturing demands specific permission from the concerned department. It is advisable to consult with a business consultant for establishing the unit smoothly.

The two licenses that you need to procure to start a ghee manufacturing business are the FSSAI license and GST Registration.

3. Ghee Manufacturing Plant Set Up

Generally, you can initiate a small-scale ghee manufacturing plant in a 1000 Sq Ft covered space. However, the space requirement varies depending on the business size and the expected production output.

Select the location carefully. It is better to have space in an industrial area. Additionally, you need to ensure good water resources and an uninterrupted electricity supply. Check the transport availability too. If you want to have your own goods vehicle for logistic purposes then check the space for safe parking.

4. Ghee-Making Machine

Generally, the requirement of ghee making machine depends on the manufacturing process you follow. However, for the direct cream method, you will need to procure 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

5. Ghee Manufacturing Process with Flow Chart

On a large scale, you need to prepare ghee in a continuous method. A new method of ghee making has been started and named as prettification method. Cream (ripened/unripened) can also be used for ghee making. Ghee prepared from unripened cream has got longer keeping quality. However, you need to follow the preparation method of ghee from the unripened cream.

The manufacturing process comprises two steps: separation of cream from milk and extraction of ghee from the cream. Also, you can sell creamless milk as toned milk. You can set up a pasteurization plant to increase the shelf life of the milk and to separate cream through an automated process.

6. Ghee Marketing & Distribution

As ghee is an FMCG product, it demands extensive advertising and product promotion strategy. And it is better to have an organized marketing team. Select a catchy and memorable name for your product. Prepare the label carefully.

Advertisements in electronic media and FM channels are useful in promoting this type of product. In addition to that, make your product available in retail stores as much as possible in your locality. Supermarkets and malls are also options for selling the product.

Basically, ghee manufacturing is a working capital-intensive business. So, proper cost analysis and financial planning are necessary for long-term success.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.