MilkStation, a rising dairy startup based in Rajasthan, is redefining regional dairy entrepreneurship with its focus on value-added products, premium ice cream, and strategic brand-building. Founder Nirmal Chaudhary shares the startup’s journey, capital choices, and long-term vision to become North India’s strongest challenger brand. Dairy Dimension has the opportunity to interact with Nirmal and discuss MilkStation’s Playbook.
- The Inflexion Point
In the initial years of MilkStation, our primary focus was on stabilising the business. We consciously chose to bootstrap because the early phase was about understanding operations, building the supply chain, and validating product-market fit rather than chasing aggressive growth.
Initially, we were largely dependent on liquid milk. However, over time, we shifted our focus towards value‑added products such as ghee and other dairy products.
After three years, once the business had stabilised and the value‑added portfolio started showing strong traction, we felt it was the right time to bring in external capital. Scaling a value‑added dairy business requires investment in capacity, systems, and brand-building. We also wanted a strategic investor who could help us grow sustainably and support our long-term vision rather than provide funds.
- Choosing the Right Capital
We partnered with V‑Dairy to expand our manufacturing capacity and invest in machinery, as our existing plant had reached its operational limits. More importantly, we were very clear that we wanted a strategic investor rather than a traditional VC or PE fund.
Many traditional VCs view dairy as just another FMCG or grocery play, failing to appreciate the dairy business. In contrast, we wanted to build a deep-dairy-focused company centred on value‑added products like ice cream, ghee, cheese, and paneer.
V‑Dairy aligned firmly with our thinking. Their interest was not just in numbers, but in building quality products, strengthening the brand, and growing within the dairy ecosystem. We see MilkStation as a challenger brand, and we wanted a partner who believed in that long-term vision.
- Strategic Shift Beyond Liquid Milk
We deliberately reduced our dependency on liquid milk because cooperatives traditionally dominate the Indian liquid milk market. We knew very clearly that competing with cooperatives on liquid milk pricing and scale would be extremely difficult.
At the same time, consumer demand in India is evolving. There is a visible shift toward higher-quality, value‑added, protein-rich, and nutrition-focused dairy products. Products such as ghee, paneer, cheese, and ice cream are seeing strong demand growth.
From a business perspective, we also learned that margins are significantly higher for value‑added products than for liquid milk. Scalability is better because products like ghee and ice cream have a longer shelf life, making distribution and expansion easier.
Today, our portfolio stands at approximately a 60:40 ratio — 60% liquid milk and 40% value‑added products — and this shift has improved both profitability and scalability, especially for our region.
- Ice Cream as a Growth Engine
From the beginning, we wanted to enter categories like ice cream, ghee, and cheese. Ice cream, in particular, serves multiple purposes for us — it is a strong margin driver and an essential brand-building tool.
In Rajasthan, there are very few strong regional ice cream brands. We saw an opportunity to build one of the first premium, artisanal ice cream brands in the state. Ice cream provides strong visibility and positions MilkStation as a premium brand in consumers’ minds.
We are also focusing on our own ice cream parlours, which act as experience zones. These outlets allow consumers to experience our product quality firsthand while also learning about MilkStation and our broader dairy portfolio.
Exposure to global trends via the internet has increased demand for premium, value‑added, and protein-rich dairy products.
- Building in a Price-Sensitive Heartland
Rajasthan is a highly price-sensitive market where affordability matters deeply. It is also a state dominated by dairy cooperatives and one of India’s largest milk-producing regions.
Interestingly, milk quality issues, such as adulteration, are relatively low here due to an abundant supply. However, building a brand still requires maintaining very high-quality standards comparable to those of national and international brands.
To avoid commoditization, we deliberately reduced our dependence on liquid milk and focused more on value‑added products. This approach allows us to maintain cost discipline while building brand value, rather than competing purely on price.
- Protein and the Future Portfolio
Rajasthan, especially its western belt, is dominated by buffalo milk, which is naturally higher in protein than cow milk. This gives us a unique advantage in developing protein-rich dairy products without relying heavily on processing techniques such as RO or osmosis, which many other brands require.
At the same time, demand for whey-based and protein-focused products is growing rapidly across India.
As a young regional dairy brand, we see a significant opportunity because there are very few private players in North-West India focused on value‑added dairy products. We believe MilkStation can emerge as a strong regional brand and eventually become a leading dairy brand in North India.
- The Hardest Founder Moment
As a first-generation entrepreneur, the journey has been financially, emotionally, and operationally challenging. I did not have strong financial backing, and my family was cautious about entering a high-risk business like dairy, which requires heavy capital investment and often incurs losses in the early years.
Emotionally, leaving my job and returning to Rajasthan to start something new was difficult, especially in a region with limited private dairy benchmarks. Financially, the business demanded constant reinvestment and resilience during loss-making phases.
Over time, I learned not to become overly emotionally attached to the business. Treating the company as a professional enterprise rather than a personal attachment helped me make objective decisions, including bringing in strategic investors.
Operationally, I realised that while I could manage early-stage operations, scaling beyond a certain point required external expertise. This realisation reshaped me as a founder and reinforced the importance of continuous learning and collaboration.
- The Larger Aspiration
For me, success has never been only about revenue, although revenue is an important indicator of business health — much like a report card reflects performance in school. However, revenue alone does not define impact.
I aspire to build a next-generation dairy company from Rajasthan and establish it as the strongest challenger brand in North India. Despite being one of the largest milk-producing regions, Rajasthan lacks a large private dairy brand with national ambition.
We saw this gap as an opportunity. Our goal is to build a brand rooted in the region but capable of competing at a national level through quality, innovation, and value-added products.
For young entrepreneurs entering the dairy sector, my message is clear: dairy is not automatically a good business just because India is a large market. One must deeply understand the product, invest in R&D, prioritise quality, and study consumer behaviour before scaling. That mindset, more than anything, defines long-term success.
Nirmal Chaudhary, MilkStation’s