Business Opportunity: Ghee manufacturing

The ghee market in Andhra Pradesh and Telangana is large with an annual consumption of around 125,000 tonnes[i] .The average growth rate in ghee consumption is over 5 per cent per annum. Given the large size and growth prospects, ghee manufacturing is an attractive opportunity, especially for entrepreneurs who are already running dairy farms, milk shops and have access to milk supplies.

Ghee market

Different varieties of ghee are available in the market, as can be seen from the table below.


Ghee is sold in institutional as well as retail market. In retail market, it sold in different packages such as pouch, jar, tin, bottle, and carton with size starting from 15 gms to 1 kg. In institutional market, ghee is sold in 15kg tins to sweet shops, bakeries, hotels etc.

Some of the popular brands in Andhra Pradesh/Telangana include Durga, Heritage, Sangam and Jersey. Further, there are local manufacturer and dairy shops who either sell their products through their own shops or cater to bulk buyers.

Manufacturing Process

The manufacturing process comprises two steps: separation of cream from milk and extraction of ghee from the cream. The cream less milk can be sold as toned milk. One can set up a pasteurization plant to increase the shelf life of the milk and to separate cream through automated process.


 Capital investment and profitability

Ghee manufacturing is a working capital intensive business. Working capital requirements are high for purchase of milk as farmers have to paid immediately/cash for the milk, whereas customers typically pay after 15 days to a month. Overall capital requirement for a 1000 Litres per day milk pasteurization and corresponding ghee manufacturing plant could be around Rs. 40 lakhs. Profitability would depend on the milk procurement price and ability to build a brand for your product.


NABARD provides incentives to dairy farmers under its Dairy Entrepreneurship Development scheme. More information on the same is available on this link. Further, both GOAP and Go Telangana also offer incentives as part of their industrial policy.

How can we help?

FineTrain enables entrepreneurs to assess and understand new business opportunities. Our services include market research, business feasibility studies and business diagnostics – we can help you in understanding the feasibility and viability of dairy and related opportunities and suitable government schemes. We also offer support in executing your ideas by connecting you with sector experts and professionals.

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[i] Assuming that 25% of milk consumption is towards ghee,  milk annual consumption in combined Andhra Pradesh is around 13 million tonnes per annum, source National Dairy Development Board

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  1. HI,
    Please let me know how to start up ghee business plant ,
    my number is 8750230001

    udit dutta

  2. Hi Team.

    We are looking to setup a ghee plant in Hyderabad. We looking to produce the ghee from Cream directly buying the material from other dairy.

    In such scenario, kindly let us know what different type of machine will require from converting cream into ghee.

    Initially we are looking to produce 300-500Lts ghee per day. Keeping this in mind kindly provide us the plant cost.

    Thanks @ Regards,
    Suraj Pawar

  3. Hi There
    we are preparing the feasibility study for ghee factory to produce 1000kg aday . could you please provide us the plant cost

  4. Hi sir,

    We would like to start this business in my native village in Karnataka with minimum investment.

    Kindly suggest

  5. We looking to produce the ghee.
    In such scenario, kindly let us know what different type of machine will require from converting cream into ghee.
    Initially we are looking to produce 500-1000Lts ghee per day. Keeping this in mind kindly provide us the plant cost. I want fully automatic machine

  6. Hello
    We are planning for establishing manufacturing unit of ghee .As specialy Gir cow Gujarat porbandar city.
    We also going to prepare dhoopbati and bath soap from Gir cow dung.
    Can you give me total details of machinery and equipment. What are the cost of all machinery.
    What help provide from your side.

  7. Hello
    We have a ghee business for last 15 years. But we can’t achive our targated market. Pls help me that how can i expand my business. I want to sprade my business to whole west bengal step by step legaly.

    Product name: DULAL’S GHEE

  8. Hi

    We’re interested in a cost effective mini ghee making unit with milk capacity upri 500lts per day.

    Can you please help us with the machinery required, specifications, price and other details

  9. We want to start pure ghee manufacturing from Gir cow milk by picca process I.e. from curd, proposed capacity 500 to 1000 lures ghee per day. It is to be manufactured by collecting Gir milk at collection centres. Kindly guide us about the process, machines required,cost of project item wise, source of procurement of plant and machinery, Land required,if possible complete scheme.

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