Dairy and Milk Booth Business
डेयरी और मिल्क बूथ व्यवसाय · डेअरी आणि दूध केंद्र व्यवसाय
Sell pouch milk, curd, paneer, butter, ghee and ice cream of a dairy brand from a small booth. Small margins on milk, steady daily customers.
Investment
₹3.3 lakh
Profit a month*
₹20,000
- Space
- 120 sq ft
- Staff
- Just you
*Operating profit before the loan instalment in year 2, at the assumed sales level. Change the assumptions in the calculator below.
A milk booth or dairy parlour sells packed milk and milk products of a cooperative or private dairy brand from a small shop or kiosk. The dairy or its distributor delivers stock early each morning. The owner needs a small space, freezers and coolers, and the willingness to open before sunrise. Customers come every day, which makes income steady. The commission on pouch milk is very small, so the booth earns mainly from curd, paneer, ghee, ice cream and other products sold to the same customers. The hard parts are the early hours seven days a week, power cuts that spoil cold stock, milk that must be sold the same day, and low earnings if the location has few homes nearby.
Skills needed: No formal qualification. Punctuality, cold-chain care, clean premises and simple daily accounts.
Profit calculator
Change the numbers to match your town120 ₹100 of sales/day: Pouch milk (per ₹100 sold) · 36 ₹100 of sales/day: Curd, paneer, butter, ghee and other milk products (per ₹100 sold) · 24 ₹100 of sales/day: Ice cream (per ₹100 sold)
Total investment
₹3.34 lakh
Your own money
₹33,440
Subsidy
—
Bank loan
₹3.01 lakh
Mudra Kishore
A typical month in year 2
| Sales | ₹5,40,000 |
| Raw material & packing | −₹5,05,800 |
| Electricity | −₹3,600 |
| Salaries | ₹0 |
| Rent | −₹7,350 |
| Other running costs | −₹3,150 |
| Operating profit | ₹20,100 |
| Loan instalment (EMI) | −₹7,017 |
| You keep each month | ₹13,083 |
After the loan is repaid, the EMI becomes your income too. Your own salary is not counted as a cost: the profit is your income.
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Turn these numbers into a full project report: cost of project, means of finance, 5-year profit and loss, balance sheet, repayment schedule, DSCR and break-even.
Make my project reportInvestment breakdown
| Machinery & equipment | Price |
|---|---|
| Deep freezer, visi cooler and milk coolerPublished figure for a brand kiosk's equipment; some brands supply or subsidise freezers | ₹70,000 |
| Shop renovation, counter, shelves and signboardPublished figure for a 100–150 sq ft brand kiosk | ₹1,00,000 |
| Inverter and battery for power cuts | ₹25,000 |
| Weighing scale and crates | ₹6,000 |
| Used two-wheeler for home deliveryadd-on | ₹45,000 |
| Machinery & equipment (without add-ons) | ₹2,01,000 |
| Refundable brand security deposit | ₹25,000 |
| Rent deposit | ₹20,000 |
| FSSAI, Shop Act and other registrations | ₹3,000 |
| Working capital 3 days of raw material, 2 days of credit to buyers, 1 month of expenses | ₹85,400 |
| Total project cost | ₹3,34,400 |
Typical market prices as of October 2026, from supplier listings. Prices vary by brand, capacity and city; always get 2–3 quotes.
Cost and margin per unit
| Pouch milk (per ₹100 sold) (per ₹100 of sales) | ₹ |
|---|---|
| Purchase cost (commission about 2.5% of MRP) | 97.50 |
| Material cost | 97.50 |
| Selling price | 100.00 |
| Margin before running costs | 2.50 (3%) |
Capacity is ₹20,000 of milk sales a day. The 2.5% figure is the commission published for one large cooperative brand's parlours; ask your dairy for its own rate.
| Curd, paneer, butter, ghee and other milk products (per ₹100 sold) (per ₹100 of sales) | ₹ |
|---|---|
| Purchase cost (commission about 10% of MRP) | 90.00 |
| Material cost | 90.00 |
| Selling price | 100.00 |
| Margin before running costs | 10.00 (10%) |
| Ice cream (per ₹100 sold) (per ₹100 of sales) | ₹ |
|---|---|
| Purchase cost (commission about 20% of MRP) | 80.00 |
| Material cost | 80.00 |
| Selling price | 100.00 |
| Margin before running costs | 20.00 (20%) |
Ice cream sales are much higher in summer than in winter.
Space, power and staff
120 sq ft
Rented shop · rent ≈ ₹7,000/month
Small-town rent for a small shop or kiosk in a residential area. Brand kiosks are typically 100–150 sq ft.
2 kW, single-phase
Bill ≈ ₹5,000/month at full capacity
You alone
Licences and registrations
FSSAI registration / licence
mandatoryWhen: Before you sell · Cost: ₹100/yr for basic registration; state licence ₹2,000–5,000/yr above the turnover limit
Check the current turnover limit for basic registration on foscos.fssai.gov.in.
Agreement with the dairy brand or its distributor
mandatoryWhen: Before opening a branded booth · Cost: Refundable security deposit; no royalty in the cooperative model described in published reports
Apply only through the dairy's official website or office. Fake franchise websites are common; never pay a deposit to an individual's account.
Shop and Establishment registration
mandatoryWhen: Within the period your state sets after opening · Cost: Small fee; varies by state
GST registration
if applicableWhen: When taxable turnover crosses the registration limit · Cost: Free
Fresh milk is exempt while many milk products are taxed. Ask a CA how the limit applies to your mix.
Local body permission for a kiosk
if applicableWhen: Before putting up a kiosk on public or society land · Cost: Varies
How it works
- Receive the morning delivery; count crates and check dates.
- Store milk and products in coolers and freezers immediately.
- Sell through the morning and evening peaks; note regular customers' orders.
- Return crates, settle the day's account with the distributor and place tomorrow's order.
- Clean coolers and the counter daily.
Loan route
Mudra loan (Kishore)
Own money ₹33,440 · Loan ₹3.01 lakh · EMI ≈ ₹7,017
No collateral, no subsidy.
How Mudra worksPMEGP (new units)
Subsidy ₹50,160 (general, urban) to ₹1.17 lakh (special category, rural). EMI ≈ ₹5,848–₹4,678.
Own money 5–10%. Subsidy is held as a 3-year deposit, then adjusted against the loan.
How PMEGP worksAssumes 10.5% interest, 5 years including a 6-month moratorium. PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
No collateral and no third-party guarantee (covered by the Credit Guarantee Fund for Micro Units).
Who buys and how to sell
Buyers
- Households nearby (daily milk)
- Tea stalls and small eateries
- Sweet shops and caterers (bulk paneer, curd)
- Children and families (ice cream)
Ways to sell
- Counter sales in morning and evening peaks
- Monthly milk cards with home delivery
- Bulk orders for functions
Season: Milk is steady all year. Curd, buttermilk and ice cream peak in summer; ghee, paneer and sweets peak around festivals.
Competition: Kirana shops that also keep milk, other brand booths, and app-based morning delivery in cities. A booth close to homes with the full product range holds its customers.
Risks and how to handle them
Power failure spoils frozen and chilled stock
Keep an inverter or generator link for freezers and order frozen items in small lots.
Unsold milk at the end of the day
Order from a record of daily sales, and offer near-closing sales to tea stalls.
Income too low because milk commission is tiny
Push curd, paneer, ghee and ice cream, add bread and eggs if the brand allows, and offer home delivery.
Franchise fraud
Deal only with the dairy's official office or website and its appointed distributor.
Tips from the trade
- Count the homes within a few minutes' walk before choosing the spot.
- Monthly milk cards with advance payment improve cash flow.
- Bulk paneer and curd orders from caterers lift the average margin.
Questions people ask
How much does a milk booth earn on a litre of milk?+
Very little. A published figure for one large cooperative brand is about 2.5% of MRP on pouch milk, against roughly 10% on milk products and 20% on ice cream. Ask your dairy for its current rates.
Is there a franchise fee or royalty?+
For the cooperative brand model reported in the business press there is a refundable security deposit and no royalty or revenue share. Other dairies have their own terms; get them in writing from the dairy itself.
How much investment is needed to start a dairy and milk booth business?+
About ₹3.34 lakh for a small unit: ₹2.01 lakh for machinery and equipment, ₹48,000 for set-up costs and ₹85,400 as working capital (stock, credit to buyers and one month of expenses). Prices as of October 2026.
How much profit can a dairy and milk booth business make per month?+
At 60% of capacity, sales are about ₹5.4 lakh a month and operating profit about ₹20,100 before the loan instalment. After an EMI of about ₹7,017, the owner keeps about ₹13,083 a month until the loan is repaid. These are estimates; your prices, rent and sales decide the real figure.
Can I get a Mudra loan or PMEGP subsidy for dairy and milk booth?+
With a project cost of about ₹3.34 lakh, the bank loan of about ₹3.01 lakh falls under Mudra Kishore. Mudra has no subsidy. As a new unit you may instead apply under PMEGP, where the subsidy is 15–35% of the project cost (up to about ₹1.17 lakh here for a special-category applicant in a rural area). PMEGP was approved up to FY 2025-26. Check on the KVIC PMEGP portal that applications are open before you plan around the subsidy.
What licences are required for dairy and milk booth?+
Mandatory: FSSAI registration / licence, Agreement with the dairy brand or its distributor, Shop and Establishment registration. Depending on your set-up you may also need: GST registration, Local body permission for a kiosk.
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Sources
- Business Today: how Amul grants franchises with no royalty or revenue share
- Lendingkart: how to start an Amul franchise in India (2026)
- Krishi Jagran: Amul business opportunity and commissions
- FSSAI FoSCoS (registration and licensing)
Prices as of October 2026. Prices here come from online listings and published guides and have not yet been confirmed with local suppliers. Profit figures are estimates from the assumptions above, not a promise of income.
Spotted an outdated price? Tell us. Data for this page: HowIndiaEarns.