How To Start Dal Milling Business

Do you want to start a dal milling business? Are you searching for 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 by two ways. One is a large-scale dal milling and another is mini dal mill. If you are starting with your own limited finance, then it is better to establish a mini dal mill. However, as your business grows, you can increase the production at any moment of time.

If you are living in dense pulses growing area then only you can consider starting this business. Because you will need to source the pulses at your factory on a regular basis. 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, USA, and Mexico. Some of the majorly growing pulses varieties are Chana, Mung, Masur, Urad and Tuvar dal.

Dal Mill Business Plan – Step-by-step Guide

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.

Business Plan

This is one of the most important aspects of starting 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. It is better to conduct a market research prior. Identify what are main crops grow in your locality. If there is already a dal mill then find out the capacity of the factory. In addition, try to identify the quantity of the yearly pulses production. These all will help you in crafting a prudent business plan.


Generally, 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), 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 expenditure.


For establishing 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 which has access to raw material, skilled manpower, and market. Check whether the transportation and labor facilities are available or not.

If you are starting a mini dal mill, then you can start the business from a rental location. We will recommend not to invest your money in purchasing land and building. However, if you want to establish a multi-functional dal mill, then you must establish the business on a purchased land. If you are starting a mini dal milling business, then 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)


The production quantity of a dal mill hugely depends on the quality of the milling machinery. You must procure upgraded machines for getting effective result. Actually, a dal milling factory is an amalgamation of a series of machinery. And you can establish the factory by both ways – semi-automatic or fully-automatic. In addition, you will need to have several testing equipment for quality control. Some of the most important machines are

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

Raw Material

Contact with the local pulse growers to get the raw pulses according to your demand. Pulses are the seasonal products. And during the harvesting time, you will need to store the raw materials. And in dal milling operation, the only required raw materials are different types of pulses. However, you will need to arrange the packaging items too.


Staffing is the very important considerations in this business. It is better to appoint a food technologist for quality control. In addition, you will need to appoint several staffs for different purposes. here we put a detail list of manpower requirement.

  • Factory manager
  • Quality analyst
  • Machine operator
  • Semi-skilled labour
  • Accountant
  • Logistic in-charge

Manufacturing Process

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.

Also Read: 12 Profitable Fruit Processing Business Ideas & Opportunities


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 own company brand.