YOGURT (DAHI) MANUFACTURING PLANT

Code #4900

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Industry Overview

Yogurt (also spelled yoghurt) is a fermented milk product produced through the lactic acid fermentation of milk by the symbiotic action of Streptococcus thermophilus and Lactobacillus delbrueckii subsp. bulgaricus. These bacterial cultures convert lactose into lactic acid, reducing the milk's pH to approximately 4.5–4.6. This causes casein proteins to coagulate, forming yogurt's characteristic smooth, firm texture. Fermentation also produces flavour compounds, including acetaldehyde and diacetyl, that contribute to its distinctive taste.

In India, dahi (curd) has been a traditional fermented milk product for thousands of years. Unlike conventional yogurt, which uses defined bacterial cultures under controlled conditions, dahi is generally produced using a mixed population of lactic acid bacteria. Modern dairy processors manufacture both products, increasingly targeting consumers seeking hygienically produced, packaged dairy foods.

India is the world's largest milk producer. According to the Basic Animal Husbandry Statistics (BAHS) 2025, milk production reached 247.87 million tonnes in 2024-25, up from 239.30 million tonnes in 2023-24, representing growth of 3.58%. Per capita milk availability increased to 485 grams per day. Rising incomes, urbanisation, changing household structures, refrigeration, modern retail, quick-commerce platforms and growing awareness of gut health and protein intake are supporting demand for packaged curd and yogurt.

Value-added products, including stirred fruit yogurt, Greek yogurt, probiotic drinking yogurt and flavoured dahi, offer opportunities for product differentiation and improved margins. This project report evaluates the techno-economic feasibility of a yogurt manufacturing plant designed to process 5,000 litres of milk per day into set yogurt/dahi, stirred fruit yogurt, Greek yogurt and drinking yogurt. The report's technical content, market information and cost estimates reflect conditions prevailing in October 2026.

Cost Estimation

Particulars	Details
Plant Capacity	15,00,000 Litres/year
Land & Building ( 1 Acre)	Rs. 2.00 Cr
Plant & Machinery	Rs. 3.00 Cr
Working Capital for 1 Month	Rs. 1.5 Cr
Total Capital Investment	Rs. 6.5 Cr
Rate of Return	24.7%
Break Even Point	51.8%

Content Index

INTRODUCTION
DIFFERENCE BETWEEN DAHI AND YOGURT
COMPOSITION AND NUTRITIVE VALUE
TYPICAL COMPOSITION OF THE MILK USED
PROPERTIES OF YOGURT
PHYSICAL PROPERTIES
CHEMICAL PROPERTIES
MICROBIOLOGICAL PROPERTIES
TYPES OF YOGURT
USES, APPLICATIONS AND HEALTH BENEFITS
USES
HEALTH BENEFITS
STANDARDS, SPECIFICATIONS AND STATUTORY REQUIREMENTS
FSSAI STANDARDS
LICENSING AND OTHER STATUTORY REQUIREMENTS
GST
RELEVANT BIS / ISO STANDARDS
MARKET OVERVIEW
INDIAN DAIRY SECTOR
CURD AND YOGURT MARKET
KEY DEMAND DRIVERS
COMPETITIVE LANDSCAPE
RAW MATERIAL SITUATION AND PRICES
GOVERNMENT SUPPORT
SWOT ANALYSIS
RAW MATERIALS AND PACKAGING
MILK
OTHER INGREDIENTS
PACKAGING
MANUFACTURING PROCESS
PROCESS DESCRIPTION
PROCESS FLOW DIAGRAM
PRODUCT MIX AND MATERIAL BALANCE (PER DAY AT 100% CAPACITY)
CRITICAL CONTROL POINTS (HACCP)
QUALITY CONTROL
EFFLUENT TREATMENT
PLANT CAPACITY, LAND AND LAYOUT
PLANT CAPACITY
LAND AND BUILT-UP AREA
PLANT LAYOUT PRINCIPLES
IMPLEMENTATION SCHEDULE
SUPPLIERS OF PLANT, MACHINERY AND RAW MATERIALS
DAIRY PROCESS PLANT AND EQUIPMENT
CUP FILLING & SEALING AND BOTTLE FILLING MACHINES
CULTURES, STABILISERS, FRUIT PREPARATIONS AND FLAVOURS
AVERAGE YIELD

Appendix

APPENDIX – A : FINANCIAL ANALYSIS
A-1. PLANT ECONOMICS – BASIS AND ASSUMPTIONS
A-2. LAND & BUILDING
A-3. PLANT & MACHINERY
A-4. OTHER FIXED ASSETS
A-5. FIXED CAPITAL
A-6. RAW MATERIALS AND PACKAGING MATERIALS (AT 100% CAPACITY)
A-7. SALARY & WAGES (PER MONTH)
A-8. UTILITIES AND OVERHEADS (PER MONTH AT 100% CAPACITY)
A-9. ASSESSMENT OF WORKING CAPITAL
A-10. COST OF PROJECT AND MEANS OF FINANCE
A-11. TURNOVER PER ANNUM (AT 100% CAPACITY)
A-12. COST OF PRODUCTION AND PROFITABILITY (AT 100% CAPACITY)
A-13. BREAK-EVEN POINT (AT 100% CAPACITY)
A-14. TERM LOAN – REPAYMENT AND INTEREST SCHEDULE
A-15. DEPRECIATION SCHEDULE (WRITTEN DOWN VALUE METHOD)
A-16. PROJECTED PROFITABILITY STATEMENT (RS. IN LAKH)
A-17. PROJECTED CASH FLOW STATEMENT (RS. IN LAKH)
A-18. DEBT SERVICE COVERAGE RATIO (RS. IN LAKH)
A-19. PROJECTED BALANCE SHEET (RS. IN LAKH)
A-20. KEY FINANCIAL INDICATORS AND SENSITIVITY ANALYSIS

Conclusion

CONCLUSION

Frequently Asked Questions

Yogurt is a fermented milk product made using specific lactic acid bacterial cultures. Milk is generally standardised for fat and solids, heat-treated, cooled to the required inoculation temperature and mixed with the starter culture. Fermentation converts lactose into lactic acid, which lowers the pH and causes milk proteins to form a gel. The subsequent processing depends on the product type. Set yogurt ferments in its retail container, while stirred yogurt is mixed after fermentation. Fruit, flavours or other permitted ingredients may be added according to the formulation.

Dahi and yogurt are both fermented milk products, but they can differ in their starter cultures and manufacturing controls. Traditional dahi is commonly prepared using a mixed population of lactic acid bacteria, often by inoculating milk with a portion of previously prepared curd. Conventional yogurt uses defined cultures, particularly Streptococcus thermophilus and Lactobacillus delbrueckii subsp. bulgaricus. Commercial products are manufactured under controlled conditions to achieve consistent quality, texture and flavour. Applicable Indian food standards determine the requirements for each product category.

A yogurt plant can produce set yogurt, stirred yogurt, Greek yogurt, fruit yogurt and drinking yogurt, depending on its equipment and product formulation. Set yogurt is fermented in its final container, while stirred yogurt is mixed after fermentation. Greek yogurt is typically strained or otherwise concentrated to increase its protein content and thickness. Fruit yogurt incorporates suitable fruit preparations, and drinking yogurt is formulated for a pourable consistency. A diversified product range can serve different consumer preferences, but each product requires suitable processing, packaging and quality-control arrangements.

Milk is the principal raw material for yogurt manufacturing. Depending on the product specification, manufacturers may also use starter cultures, milk solids, stabilisers, sugar, fruit preparations and permitted flavours. Packaging materials, such as food-grade cups, lids, bottles and labels, are also essential. Raw materials should meet applicable food-safety and quality specifications, and incoming milk should be checked for relevant composition and hygiene parameters. Reliable sourcing, appropriate storage and controlled handling help maintain product consistency, minimise contamination risks and support efficient plant operations.

A commercial yogurt plant typically requires milk reception and storage systems, filtration equipment, standardisation facilities where needed, pasteurisation equipment, fermentation tanks or incubation facilities, cooling systems and hygienic transfer pumps. Product-specific equipment may include fruit preparation dosing systems, yogurt strainers or concentration equipment, mixing tanks and drinking-yogurt blending facilities. Cup filling and sealing machines or bottle filling machines are selected according to the packaging format. Cleaning-in-place systems, laboratory testing facilities and suitable wastewater treatment arrangements are also important for hygienic and efficient operation.

Yogurt production requires controls over raw milk quality, heat treatment, starter-culture handling, fermentation, cooling, filling and storage. Manufacturers should monitor parameters such as temperature, acidity or pH, product consistency and microbiological quality according to the applicable product specifications. Hygienic equipment design, effective cleaning and sanitation, potable process water and prevention of post-pasteurisation contamination are essential. A hazard analysis and critical control point (HACCP) system can help identify and manage food-safety hazards. Finished products should be packed in suitable food-contact materials and stored under the required temperature conditions.

Setting up a yogurt plant requires assessment of milk availability, target customers, product mix, production capacity, packaging formats and distribution arrangements. Project planning should cover land and building requirements, hygienic plant layout, processing and refrigeration equipment, utilities, staffing, quality-control facilities and wastewater management. Entrepreneurs should also evaluate capital investment, working capital, raw material costs, operating expenses and expected sales using realistic, documented assumptions. Applicable food-safety licences, tax requirements, local approvals and environmental obligations must be reviewed before implementation. A detailed techno-economic feasibility study helps assess operational requirements and commercial viability.

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Detailed Project Report (DPR) on YOGURT (DAHI) MANUFACTURING PLANT

Industry Overview

Cost Estimation

Content Index

Appendix

Conclusion