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How To Start a Dal Milling Business – Ultimate Guide

Do you want to start a dal milling business? Are you searching for a dal mill business plan sample? Find here a detailed dal mill business plan for your ready reference.

Dal milling is one of the most profitable business opportunities in the agro-processing industry. In addition, you can start a dal milling business in two ways. One is a large-scale dal milling and another is a mini dal mill. If you are starting with your limited finances, then it is better to establish a mini dal mill. However, as your business grows, you can increase production at any moment in time.

If you are living in a pulses growing area then only you can consider starting this business. Because you will need to source the pulses at your factory regularly. Apart from the domestic market, the products have good export potential also. Some of the major pulses growing countries are India, Canada, Brazil, China, Myanmar, the USA, and Mexico. Some of the major growing pulse varieties are Chana, Mung, Masur, Urad, and Tuvar dal.

12 Steps to Start a Dal Mill Business

1. Market Research

Before starting a dal milling business, conduct thorough market research to understand the demand and competition in the market. Identify potential clients such as grocery stores, supermarkets, wholesalers, and export markets. Analyze the varieties of pulses in demand and the prevailing prices.

2. Create a Dal Mill Business Plan

This is one of the most important aspects of starting a dal mill business. You have to craft a dal milling business plan according to your investment capacity. First of all, determine the business size. This type of business demands a regular working capital investment.

A well-structured business plan is essential for the success of any venture. Your business plan should include:

  • Executive Summary
  • Business Description
  • Market Analysis
  • Marketing and Sales Strategy
  • Operations Plan
  • Financial Projections

3. Business Compliance

First of all, you will need to identify the required business compliances. Register your business first. The registration process hugely depends on the location where you are starting the business. In addition, apply for the necessary certifications and licensing. As you are dealing with food items, it demands different licenses. Furthermore, talk to a local tax consultant. Identify the tax regulations and yearly compliance liabilities.

4. Select a Name for Dal Mill Business

It is extremely important to choose a business name for your dal milling business. A properly chosen name will not only help your customers to identify your business activities but also enhance brand growth. Check our stepwise guide on how to name a business to learn more.

5. Choose the Proper Location of a Dal Mill Plant

To establish the factory, you will need to have a location. And you must secure the location in an industrial zone. A dal milling unit should be located in an urban/semi-urban area that has access to raw materials, skilled manpower, and a market. Check whether the transportation and labor facilities are available or not.

Read: Best Milling Business Ideas

If you are starting a mini dal mill, then you can start the business from a rental location. We recommend not investing your money in purchasing land and buildings. However, if you want to establish a multi-functional dal mill, then you must establish the business on purchased land. If you are starting a mini dal milling business, then the 1200 Sq Ft area is perfect for starting.

However, for a large-scale unit, this space is not sufficient. And if you want to start a large-scale dal milling business, then you must have the space for various sub-components. These are

  • Raw material store
  • Finished goods store
  • Processing area
  • Office space
  • Machinery Spare Store
  • Gunny Bags Store
  • Panel Board Room
  • Toilet space
  • Miscellaneous space (Drying Platform)

6. Machine, Equipment, and Tools for Dal Milling Plant

The production quantity of a dal mill hugely depends on the quality of the milling machinery. You must procure upgraded machines to get effective results. A dal milling factory is an amalgamation of a series of machinery. And you can establish the factory in both ways – semi-automatic or fully automatic. In addition, you will need to have several pieces of testing equipment for quality control.  The basic machinery required for dal milling includes:

Cleaning Machines:

  • Drum Cleaner
  • De-stoner
  • Grader
  • Gravity Separator
  • Vibro Cleaner

Milling Machines:

  • Dal Milling Machine
  • Polishing Machine
  • Grading Machine

Packaging Machines:

  • Weighing Scale
  • Packaging Machine
  • Roller machine
  • Cylinder concave dehuller
  • Under runner disc (URD) Sheller
  • Dust Collector with pipe
  • Dryer Machine with Complete set
  • Packaging Unit

7. Raw Material

Contact the local pulse growers to get the raw pulses according to your demand. Pulses are seasonal products. And during the harvesting time, you will need to store the raw materials. In the dal milling operation, the only required raw materials are different types of pulses. The primary raw materials required include various pulses like:

  • Toor Dal (Pigeon Pea)
  • Moong Dal (Green Gram)
  • Chana Dal (Split Bengal Gram)
  • Urad Dal (Black Gram)
  • Masoor Dal (Red Lentils)
  • Other Pulses

8. Staffing

Staffing is a very important consideration in this business. It is better to appoint a food technologist for quality control. In addition, you will need to appoint staff for different purposes. here we put a detailed list of manpower requirements.

  • Factory Manager
  • Quality Analyst
  • Machine Operator
  • Semi-skilled Labor
  • Accountant
  • Logistic in-Charge

9. Dal Milling Manufacturing Process

The manufacturing process is simple. However, you must procure the manufacturing technology from a reputed organization. Generally, Govt, research institutes provide manufacturing technology in exchange for fees. The dal milling process involves the following steps:

  • Step 1: Cleaning: Remove dust, stones, and other impurities from the raw pulses using cleaning machines like the drum cleaner, de-stoner, grader, gravity separator, and vibro cleaner.
  • Step 2: Conditioning: Moisturize the pulses evenly to improve the de-husking efficiency.
  • Step 3: De-husking: Remove the outer layer (husk) from the pulses using a dal milling machine.
  • Step 4: Splitting: Split the pulses into two halves using the splitting machine.
  • Step 5: Polishing: Polish the dal to improve its appearance using a polishing machine.
  • Step 6: Grading: Grade the dal based on size using a grading machine.
  • Step 7: Packaging: Weigh and pack the processed dal in suitable packaging materials.

10. Branding and Packaging

Create a brand identity for your dal milling business. Design a logo and packaging that reflect the quality and hygiene of your products.

11. Have a Marketing Plan

Channel marketing is the best process. However, you can also go for wholesale distribution. Another great option is exporting your finished products. However, if you are starting a large-scale dal mill business, then you must establish your company brand. Some effective marketing strategies include:

  • Create a website showcasing your services and expertise.
  • Partner with grocery stores, supermarkets, and wholesalers.
  • Utilize social media platforms to raise awareness about your products.

12. Quality Control

Maintain strict quality control measures to ensure that your dal milling process meets industry standards. Conduct regular quality checks at every stage of the milling process.

Frequently Asked Questions

What is the cost to start a dal mill business?

Generally, the dal milling business demands two different types of investment. One is fixed capital and another is working capital cost. Fixed capital includes the cost of land (if you purchase it), building, machinery, business registration, etc.

On the other hand, working capital cost includes the cost of raw materials, staffing, utility bills, transportation, and regular administrative expenditures. The initial investment for starting a dal milling business may vary depending on the scale of operations. Here are the major investment heads:

  • Machinery and Equipment
  • Raw Materials
  • Infrastructure and Utilities
  • Licensing and Registrations
  • Marketing and Branding
  • Working Capital

What is the processing capacity of a dal milling unit?

The processing capacity of a dal milling unit varies depending on the machinery and equipment installed. However, a small-scale unit can process 1-1.5 tonnes of pulses per day, while a large-scale unit can process up to 10-15 tonnes per day.

How much space is required to set up a dal mill?

The space requirement depends on the scale of operations. A small-scale dal milling unit may require about 1000-1500 square feet, while a large-scale unit may need around 3000-5000 square feet.

What is the shelf life of processed dal?

Processed dal has a shelf life of about 6 to 12 months when stored in a cool, dry place in airtight packaging.

Is the dal milling business profitable?

Yes, the dal milling business is profitable due to the increasing demand for processed pulses. The profit margin varies depending on factors such as operational efficiency, market demand, and cost management.

Can I get financial assistance for starting a dal milling business?

Yes, you can avail financial assistance from various government schemes and financial institutions. The government provides subsidies and loans to promote food processing industries.