Ghee Manufacturing Project Report



You can immediately download the Project Report of Ghee Manufacturing Plant in PDF format. The objective of the report is to make the new entrepreneurs coming into the field of milk processing aware of the various aspects of the business. This document is also helpful in preparing project reports for bank loans and other works. To fulfill the pre-feasibility objective; The document covers various aspects of ghee manufacturing project conception, development, startup, marketing, finance and business management.

Ghee is derived from the Sanskrit word ghrita is the most well-known traditional dairy product in India and several Middle Eastern nations. It’s created from milk, cream, or butter from several animal species. Ghee is a popular Indian term for clarified butter fat, which originated in India and is widely used in South Asian cuisine which is used in cooking and medications, cosmetics, and ancient religious ceremonies. Ghee is also lactose-free and sodium-free. Pure butterfat or Ghee, like liquid gold and is the most relaxing and delectable foodstuff conceivable. Ghee has a flavour that is rich, sweet, and pleasantly nutty. A tiny bit of ghee enhances the taste of the cuisine. Because it is a dairy product, it is gluten-free.

Ghee is a type of clarified butter. It is a type of dairy product. In general, cow milk is used to make high-quality ghee. The ultimate product’s quality is heavily dependent on the quality of the butter, the source of the milk used in the process, and the length of time it is boiled.

How to Download Ghee Manufacturing Project Report

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Market research for Ghee making business plan

  • First and foremost, you should undertake extensive market research in your area. There are many different kinds of ghee available in the market, mostly either cow milk ghee or non-cow milk ghee. Ghee is also available in a variety of tastes.
  • As a result, you should know the specialised need for distinct ghee kinds. Furthermore, be aware of the renowned ghee producing brands in your area. Examine the packaging and cost of those ghee packets. All of this will help you create a business strategy and get your manufacturing operation up and running.
  • Finally, create the business strategy or project guide. A business plan should typically include an executive summary, project cost, financial analysis, and marketing plan. If you want to launch a large-scale enterprise, you may get a loan from a bank.

Uses & Market Potential 

Ghee, a dairy product, has numerous applications:

  • Ghee is used as a cooking fat and in the production of ice cream.
  • It is widely used in the confectionery business.
  • It is utilised in the production of several types of fat spreads.
  • Ghee includes fat-soluble vitamins like A, D, and E and can thus help vegetarians.
  • It improves intelligence, memory, and energy levels in the body.

Ghee is the pure butterfat that remains after the milk solids and water have been extracted from butter. It is commonly used in Indian cooking. It is quite aromatic and has a deep nutty flavour, and it is India’s second most popular dairy product after liquid milk. The market’s steady expansion may be due to a variety of factors. Population growth, higher disposable incomes, more accessibility, and increased knowledge of the advantages and uses of ghee are just a few of the reasons driving market development.

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

It is critical to examine this component of business registration regardless of the size of your company. The procedure varies based on the rules of your state. Furthermore, because ghee falls under the food category, it needs special clearance from the relevant government agency. It is advised that you speak with a business professional to run the unit effectively and legally. To get a license for the business of manufacturing ghee, you must have PAN card, Aadhar card and project report.

The following is a list of licences necessary before beginning a ghee manufacturing firm in India.

  1. Trade license
  2. Pollution certificate
  3. MSME Udyam/SSI registration
  4. EPF and ESI registrations
  5. Trademark
  6. FSSAI registration
  7. IEC code
  8. FPO act
Ghee making business set-up

In general, you may start a small-scale ghee manufacturing company in a 100-150 sq. ft. space. However, space is determined by the size of the firm and the estimated production capacity or output.

Choose a suitable place. It is preferable to have space close to the industrial sector. It would be best to look for a decent water supply and an uninterrupted electricity supply. Examine the transportation availability provision.

Machinery Requirement

Essential machinery requirements are as follows:

  1. Milk Storage Tank
  2. Balance Tanks
  3. Milk Homogeniser
  4. Milk Pasteurizer
  5. Cream Separator
  6. Boiler
  7. Chiller
  8. IBT Type chilling machine
  9. Butter Churning Machine
  10. Ghee Boiling Kettle
  11. Pouch Filling Machine
  12. Pumps
  13. Piping
  14. Electrical Panel

Detailed information of Ghee manufacturing machinery is available in the project report.

Raw material

This manufacturing unit only uses milk and packing material as raw materials.

Manufacturing process

Before the main processing of milk, milk is purchased from a vendor and held in storage tanks. A boiler is used to create steam, which is then used in different processes throughout the plant, including heating milk and milk products as needed.

  • This steam is initially used in the pasteuriser to heat the milk for pasteurisation; after an appropriate holding time, the milk is sent to another holding tank, which stores the milk before cooling, and it is necessary to reduce the load on the milk cooler and provide a constant feed to the milk cooler.
  • After cooling, milk is stored in a holding tank, from which it is supplied to a milk homogeniser, which ensures uniform globule size in milk. Thereafter which, milk is stored in a balance tank, from which it is fed to a cream separator, which essentially extracts cream from milk and stores it in another balance tank. In contrast, toned milk is supplied to a pouch filling machine, which packs the toned milk into packets of appropriate quantity and is then stored.
  • On the other hand, the cream is chilled in a separate chiller to a temperature of 4 to 5 degrees Celsius. After that, the cream is fed into the butter churning equipment.
  • The butter churning machine extracts butter from cream, which is then fed into a heating vessel, which warms the butter to produce ghee. This ghee is fed into another pouch packaging machine, which packs the ghee into proper-sized packets, kept in a cool area until they are sold.

The detailed process and flow chart of ghee manufacturing are available in the project report. You can get the information by downloading the report.


Packaging refers to the last stage of the ghee production process. The machine performs the packing automatically, which has a ribbon of flat packaging cardboard inserted into it.

Cost or investment

If you choose a small scale business in ghee manufacturing, you must pay for raw materials, notably milk, and additional items like packaging material and other things. Employee compensation is significant when starting a small size firm. The initial investment for a small-scale ghee producing firm is Rs. 1 lakh. Furthermore, the equipment might cost approximately 2.30 lakh rupees on a large scale. The raw material cost might be about Rs. 10,000. As a result, the total cost may be calculated at 1-1.5 lakh rupees.

You must plan for a budget while starting a business. You may charge between 150 and 200 rupees per kilogramme in the market. Not only that, but you can also connect and network with restaurants and hotel companies directly.

You must study the project report before investing in the business of Ghee Manufacturing.

Profit in Ghee making business in India

The profit margin in the ghee production company is considerable due to the strong demand. Every day, one can earn 2000 rupees. Wholesale dealers have a substantially higher profit margin in the ghee making sector. If you properly follow the processes outlined above, you may generate money from your ghee production business while spending less money.

Marketing strategies for promoting Ghee product

Because ghee is an FMCG product, it requires substantial advertising and product promotion methods. It is also suggested to have a well-organised marketing staff. Choose a catchy and memorable name for your product. Properly prepare the label. Advertisements in electronic media and FM radio stations are critical in promoting this sort of merchandise. Additionally, attempt to maintain your goods in retail establishments in your region as often as feasible. Supermarkets and shopping malls are also excellent places to offer goods.

Ghee production is a cash-based enterprise. As a result, thorough cost analysis and financial forecasts are critical for long-term profitability.

Points included in the project report

The following points are included in the Project Report of Ghee Manufacturing.

Sr. No.Particulars
1Project Summary
2About the Product
3Process Flow Chart
4Economics of the Project
5Basis & Presumptions
6Capacity, Utilisation, Production & Output
8Machinery & Equipment’s With Images
9Misc. Fixed Assets
10Total Cost of Project
11Means of Finance
12Bank Loan repayment & interest schedule
13Working Capital Calculations
15Power Requirement
16Depreciation Calculation
17Repairs & Maintenance
18Projections of Profitability Analysis
19Break Even Point Analysis
20Projected Balance Sheet
21Cash- Flow Statement
22Debt-Service Coverage Ratio


Is the Ghee Industry Profitable?

Ghee already has a sizable market. It is a well-known FMCG item. After liquid milk, ghee is the second most popular dairy product in Asian countries. Furthermore, demand is increasing quickly all around the world. India is the world’s most significant producer and consumer of buffalo and cow milk, hence the world’s largest producer and user of ghee.

Population growth, health advantages, rising disposable incomes, and penetration in newer countries are some of the primary drivers driving demand for this product right now. The majority of ghee is consumed by homemakers between the ages of 25 and 45 who have children. As a result, it is a highly profitable market for establishing an organised ghee producing enterprise.

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What is the primary reasons propelling the Indian ghee market?

The increased consumer knowledge of ghee’s multiple advantages in aiding digestion, increasing physical strength, healing eye problems, and so on is currently boosting the ghee market in India.

Also Read: Milk Processing Business Plan 

What effect has COVID-19 had on the Indian ghee market?

The sudden emergence of the COVID-19 epidemic has shifted customer preferences away from traditional brick-and-mortar distribution channels and toward online retail platforms to purchase ghee.

What are the critical regions in India’s ghee market?

Regionally, the market is divided into Maharashtra, Uttar Pradesh, Andhra Pradesh, Tamil Nadu, Gujarat, Rajasthan, Karnataka, Madhya Pradesh, West Bengal, Bihar, Delhi, Kerala, Punjab, Orissa, and Haryana, with Uttar Pradesh now dominating.

Who are the major players/companies in India’s ghee market?

GCMMF, RCDF, Mother Dairy, Patanjali, Prag dairy, and SMC Foods are prominent participants in the Indian ghee business.

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Is there a difference in the yield of ghee from cream or butter?

The fat content of the raw material influences the output of ghee from cream or butter. Several factors described below influence the yield:

  1. Production method: Fat recovery is lowest in the indigenous approach, ranging from 80-85 per cent, most significant in the creamery butter method, ranging from 88-92 per cent, and lowest in the direct cream method, ranging from 90-95 per cent.
  2. The raw material’s fat content: The higher the fat content, the higher the yield, and vice versa.
  3. Milk or cream quality: If the acidity of the milk or cream intended for use in ghee production is high, fat losses in the ghee residue will be higher, lowering the yield.
  4. Fat recovery from ghee residue: According to scientific sources, dissolving ghee residue in hot water followed by filtration and centrifugation may extract as much fat as possible from ghee residue. Under this procedure, removing the fat from ghee residue is feasible, and that fat is put back to the cream or butter Melter.

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