Nowadays, natural bio-pigments have immense importance in food industries owing to their non-toxicity, health benefits and safety. In the present study, natural red bio-pigment was produced at a pilot-scale by optimizing fermenter type and bio-pigment extraction parameters (i.e. concentration, time, and temperature). The tray-type fermenter was out performed for bio-pigment production from Monascus purpureus. The high yield of bio-pigment was extracted with 60% ethanol at 60 °C for 80 min having color value of 49.65 optical density unit (ODU)/g DMS with 30.60% DMS recovery rate. The chromatographical analysis of extract revealed three color forms of bio-pigment i.e. red, orange, and yellow. Physicochemical nutrients analysis of fermented biomass revealed a decrease in carbohydrate content, while an increase in other nutrients were observed. The bio-pigment was sensitive to UV, sunlight and pH > 10. However, extracted red bio-pigment can withstand up to 100 °C temperature and 0.6% (w/v) of various food preservatives. The present study provides low-cost, scale-up production of natural red bio-pigment using agricultural by-product thus serve an alternative to synthetic food colors. The study signifies pilot scale bio-pigment production technology that reduces pigment production cost, additionally providing nutritional good fermented spent biomass.