Micro-organisms used for fermentation process grow on or in growth medium which satisfies the nutritional needs of microbes. Complete analysis is needed to be done to establish the most favourable medium for the growth of the microbe used for fermentation. Formulating medium at lab scale can be done by adding main ingredients like water, carbon source, nitrogen source, minerals and other supplements in pure form and in required quantities is very easy which supports the growth of the microbe whereas, the same may not support the satisfactory growth of the same organism at industrial level. Following criteria need to be satisfied for the material to be treated as medium at industrial level. It should give maximum yield of product.