Dairy industry is of crucial importance to India. The country is the world's largest milk producer, accounting for more than 13% of world's total milk production. It is the world's largest consumer of dairy products, consuming almost 100% of its own milk production. Dairy products are a major source of cheap and nutritious food to millions of people in India. The dairy sector in the India has shown remarkable development in the past decade and India has now become one of the largest producers of milk and value-added milk products in the world. The dairy sector has developed through co-operatives in many parts of the States in India. Dairy industries always have been energy intensive industries. The energy audit has been conducted at dairy; it includes chiller, boiler, air compressor and miscellaneous issues. Techno economic analysis of boiler, air compressor, chiller and miscellaneous issues has been done.