§1What this business is
CRCA sheet is pressed into a frame, and the body, wire mesh and pleated paper or fibreglass filter element are assembled and fixed. The KVIC profile says the filters clean air down to 0.3 microns and are tested to BS-2831; demand comes from original equipment makers and a steady replacement market in polluted cities.
Capacity: 12,000 filters a year.
§2Is it right for you?
Who it is for
Someone with sheet-metal or HVAC service experience and contacts with AC dealers or facility managers.
Who it is not for
Someone who cannot keep tight sizes and test every batch.
Advantages
- Filters need regular replacement, so demand repeats
- AC use keeps growing in towns
- Small sheet-metal machine set
- Two markets — equipment makers and the replacement trade
Drawbacks
- Raw material is most of the cost (₹25.20 L of ₹30.62 L)
- Filters must pass performance testing
- Branded filters compete hard
- Each AC model needs its own size
Skills you need
- Sheet-metal forming
- Pleating and assembly
- Filter testing
- Selling to HVAC contractors and hospitals
Why difficulty 3/5: Precise assembly and testing are needed to win HVAC buyers.
§3Market
Who buys
- Hospitals, laboratories and factories
- Hotels and households
- Air-conditioner makers (original equipment)
How it sells
- Direct supply to equipment makers
- AC dealers and service companies
- Facility managers of large buildings
Good to know
- The profile says higher pollution in cities keeps the replacement market steady.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Hand shearing machine | — | — |
| Folding machine | — | — |
| Spot welding apparatus | — | — |
| Pleating machine for filter paper | — | — |
| Centre lathe | — | — |
| Bench grinder | — | — |
| Hand tools, jigs, press and fixtures | — | — |
From: KVIC Project Profile — Filters for Air Conditioners (PMEGP)
- CRCA sheetsfor the frame
- Aluminium foillisted in the profile
- Fibreglass filter media and filter paperwoven and non-woven elements
- Wire mesh and adhesiveslisted in the profile
- Packing materials₹10,000 a year for labels and packing
From: KVIC Project Profile — Filters for Air Conditioners (PMEGP)
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence from the local body
- Trademark for your brand (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
A KVIC model profile for PMEGP; at ₹12.28 L it also fits MUDRA, CGTMSE and Stand-Up India.
§7Money
How the investment is worked out: Workshed rent ₹24,000 + equipment ₹7.00 L (hand shearing, folding, spot welding, filter-paper pleating, centre lathe, bench grinder, hand tools, jigs, press and fixtures) = ₹7.24 L, + working capital ₹5.04 L = ₹12.28 L. Own land.
Working capital: Working capital ₹5.04 L; raw material ₹25.20 L a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- HS codes are from the WCO HS 2022 list; confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Steel and aluminium price rise
- Batch rejection
- Late payment by contractors
- Changing filter specifications
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working air conditioner filters unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Air Conditioner Filters?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.
