How to Start Vermicompost Making Business ?

Vermicompost Making Business Gateway

Did you know how much does your food garbage costs your nation ? Yes, that’s how much the conditions have worsened that we have to calculate this. Approximately, every average person around the world wastes about  1/3rd of the food they buy, cook and eat. India, itself has calculated a food wastage of ₹214 crore per day and in around the world around 1.3 billion tones of food waste gets dumped in the bin everyday.

This food wastage in the form of scraps of vegetables, fruits, bits of bread crumbs, rice, cereals, pulses etc is mainly contributed by the hotel, restaurant industry, catering industry, households etc.

Now why is it that we would lecture you on waste? Because this waste can probably get you into the most  potential and growing industry of food management through the process of Vermicompost

So are you down to make business out of just garbage?

Read More: How To Start Organic Farming Business ?

Market potential and uses:

Firstly, what is Vermicompost? It is a process of decomposition process using various species of worms like red wrigglerswhite worms and other earthworms thereby creating a mixture of decomposing vegetables and food waste, bedding material and Vermicast.

Now the market potential for the process of Vermicompost is vast because obviously India is the second largest populated country in the world hence, the food waste total of India is vast accounting to over  60 million tones every year.

These wastes once fed on by the worms are then excreted thereby producing  a decomposed material rich in nutrients, lower level of contamination  than the organic materials before the process of Vermicompost which can used as an excellent organic fertilizer and soil conditioner.


  • Treatment of sewage
  • Nutrient rich organic fertiliser
  • Soil conditioner containing water soluble nutrients
  • Reduced emission of green house gases
  • Reduce waste flow to landfills
  • Enhancing germination and plant growth

Licenses required

The licenses required in setting up a Vermicompost making business would be:

  •  ISO 9001-2015 certificate
  • State Fertilizer manufacturing and marketing license
  • Bio product license
  • Straight micro product license

Books you Must Read

Skill Enhancement Course Vermicompost Production

Investment required

The investment required to set up a Vermicompost making business is between ₹300000-₹500000.

Profits made

The profits made from a Vermicompost making business can be as:

  • Profit from worm farming : ₹ 800000 per year
  • Profit from Vermicompost production : ₹400000 per year

Target consumers 

The target consumers for your Vermicompost making business are as follows:

Agricultural industry: it is of a great use to these industries who need fertilizers that improve soil aeration, improves water holding capacity to give their plants and crops a suitable environment to grow.

Plant laboratories : Those labs who deal in producing new breeds of fruits and cultivate organic vegetables etc. might require this Vermicompost fertilizer to enhance germination, plant growth and crop yields.

Read More: How To Start Mushroom Growing Business ?

On site institutions: For managing the food scraps from on site institutions like in hospitals, universities and shopping malls etc.

Gardeners and botanists: The Vermicompost produces is used by many households and professional botanists to in the processes of gardening as a replacement for chemical based fertilizers, it being rich and nutrients.

Metal industries : The Vermicompost fertilize which is rich in lead, zinc, cadmium, copper and manganese is also likely used to keep the metals cleans for further production.

Sewage and drainage industries: It is also used by the sewage and drainage industries for their treatment used to remove organic matter, pathogens and oxygen demand from the waste water.

Area required

The area required to set up a Vermicompost making plant would be ½ an acre.


  • Vermi beds – 0.3-0.6 m in height
  • Sheds- 6-8

The raw materials required for a Vermicompost making business are:

  • Organic waste
  • Vermicompost bed
  • Earthworms
  • Water
  • Fencing and gate

The machinery required to set up a Vermicompost making business is :

  • Fertilizers mixer
  • Packaging machine
  • Weighing machine
  • Aeration machine

The Vermicompost making process involves a manpower requirement of

  • 2 administrators
  • 3-skilled workers
  • 5-unskilled workers

Read More: How to Start a Plant Nursery in India ? 

Business model and growth

The business model of a Vermicompost making business can be defined using these 4 variants.

Value proposition: The value which a Vermicompost making business is likely to get to you is:

  • Large and minimal cost availability of raw materials: Fruit and vegetable scraps, 350 species of earthworms.
  • Large demand: Growing demand of organic vegetables thereby increasing a derived demand for Vermicompost.

Target consumers : The target consumers for this Vermicompost making business would be:

  • Metal industry
  • Waste water management industries
  • Agricultural industry
  • Farming and plant laboratories
  • Gardening and in botanies

Competitor reviews: The competition to your Vermicompost making business in India would be:

  • Eco tech Agri and dairy care
  • Shri organic farming
  • Bengal agro industries etc.

Marketing strategy: The marketing strategy to be implanted by your Vermicompost making business can be as follows:

Advertising: Through newspaper and radio advertisements and tie ups with reputed restaurant and hotel chains through a R&D certification and licensing claims etc.

Sales promotion: Bulk discounts and cash discounts to the agricultural and farming industries etc.


The Vermicompost making business has the potential and has witnessed the following growth prospects:

  • The global organic fertilizer industry is expected to flourish at a CAGR of 6.9%.

  • Moreover the rising awareness of organic farming in India  has increased adoption of eco friendly products thereby improving its standard of living.

The profit margin which a Vermicompost making business is likely to yield you is around 60%.

  • The costs involve less than ₹2.0 per kg.
  • It can be sold at ₹4.0-₹4.5 per kg.


Let the worms worry about managing the wastes of this country while you can take up the opportunity to do your share in making this world a better and sustainable place to live while you also make money and here’s how:

  • Firstly, because the essential raw material involved in the Vermicompost making business are almost free of cost like the vegetable and fruits scraps, peels and leftovers and there are around 350 specimens of earthworm the investment is minimal.

  • Secondly, because of the rising prices of chemical based fertilizers and higher odds of its side effects on crops farmers, agricultural industries are shifting to organic fertilizers like Vermicompost thereby providing massive sales.

  • Lastly, many industries like HUL, Coca-Cola, PepsiCo are adopting eco friendly production methods who aim to make use of waste produces like Vermicompost to  reduce the emissions of CO2 gases thereby increasing your probability to tie up with such businesses and gaining brand reputation.

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