From one cow to a ₹2 Crore dairy business: How PMFME support turned milk processing into success

The PM Formalization of Micro Food Processing Enterprises (PMFME) scheme, implemented by the Directorate of Industries, MSME Department, Government of Odisha in collaboration with Palladium as the State Project Management Unit aims to formalize and scale micro food processing enterprises through credit-linked support, capacity-building activities, integration into the organized supply chain, and market access.

The scheme has made significant impact, extending credit-linked support to over 1700 micro food processing enterprises, many of them run by women entrepreneurs. It has also trained more than 9,300 beneficiaries in entrepreneurship development, empowering them to establish their own businesses. Seed capital support has reached over 23,400 Self-Help Group beneficiaries and the initiative has successfully mobilized more than 10,000 participants through workshops, events, and fairs.

The initiative aims to increase the income of small food processors, create jobs, and strengthen rural economies by encouraging value addition and enhancing the overall competitiveness of the food processing sector. The scheme’s support for credit-linked capital subsidies and access to modern machinery is improving production efficiency, enabling rural entrepreneurs to tap into larger markets. This not only strengthens local economies but also promotes diversification into value-added products, ensuring long-term sustainability and resilience for small food enterprises across the country.

Surviving and thriving as a woman entrepreneur

One of the woman beneficiaries rewriting the rules of entrepreneurship is Anita Dash from Balasore, Odisha. She has built a thriving dairy processing business, generating a yearly turnover of ₹2 crores and providing high-quality dairy products to the local market. Her journey, powered by sheer determination and the support of government schemes PMFME, is a testament to the transformative power of grassroots entrepreneurship.

Coming from a humble background, Anita wanted to improve the livelihood of her family and provide better opportunities for her two children. Her journey started in 2012 with a single cow, supplying fresh milk to nearby households. As demand grew, she expanded her operations to 60 cows by 2015 and her business steadily gained popularity.

However, challenges arose. Maintaining a steady milk supply on time became difficult due to irregularity from farmers. Facing customer losses, Anita pivoted—teaching herself to process milk into value-added products like paneer, khoya, chhena poda, and dahi rasagolla by watching YouTube tutorials. She started selling them in the local market. This strategic move not only saved her business but boosted demand for her products, thanks to their purity and quality.

In 2021, she established Krishna Dairy to sell milk and milk products in a packaged form. Anita sought financial support under the PMFME scheme. Through the scheme, Palladium facilitated a bank loan of ₹26.8 lakhs for Anita, which enabled her to purchase advanced machinery. With these upgrades, her daily production capacity reached 5 quintals, generating a daily profit of ₹10,000. Her monthly profits now range from ₹3-4 lakhs, and she supplies her products to retail outlets across the district.

Anita’s success reflects a larger trend—women-led enterprises are transforming India’s food processing landscape. According to government data, under PMFME, 35% of beneficiaries are women, highlighting how such schemes are empowering female entrepreneurs to scale their businesses.

“PMFME scheme is enabling micro-entrepreneurs especially women to move from subsistence to success. By providing credit-linked support, modern equipment, and access to training, the scheme is unlocking new possibilities for small food processors across Odisha. We are proud to support such entrepreneurs who are not just building businesses, but also creating jobs and strengthening rural economies,” said Shri Surya Kanta Behera, General Manager, District Industries Centre, Balasore.

“With more women like Anita leading the way, schemes like PMFME are not only creating successful businesses but also strengthening local economies. Anita’s journey from a small milk vendor to a successful food processing entrepreneur underscores the potential of government-backed programs in fostering sustainable businesses. Her story highlights how access to capital, skill development, and market linkages can empower micro-entrepreneurs to scale and succeed,” said Amit Patjoshi, CEO, Palladium India.