§1What this business is
Dried herbs are powdered, blended evenly in cone or cube blenders and filled into empty capsule shells, then counted and packed. Capsules are easy to swallow and give a fixed dose, so many Ayurvedic brands now sell their formulas this way.
Capacity: 20,00,000 capsules a year at ₹0.60 each (₹11.72 lakh) at full capacity.
§2Is it right for you?
Who it is for
An Ayurveda graduate (BAMS) or pharmacist, or someone who can employ one, with links to vaidyas and medical stores.
Who it is not for
Someone who wants to sell without a licence or make medical claims without classical formulations.
Advantages
- Ayurveda has a large and growing customer base
- Small investment and simple machines
- Herbs are available from forest and farm produce traders
- Capsules give an exact dose and suit modern buyers
Drawbacks
- Needs an AYUSH drug licence and GMP before selling
- Many established Ayurvedic brands compete
- Herb quality and adulteration are hard to control
- Empty capsule shells must be bought from outside
Skills you need
- Classical Ayurvedic formulations
- Identifying and testing raw herbs
- Blending and capsule filling
- Record keeping for drug licence and GMP
Why difficulty 3/5: Simple machines, but licensing and quality rules are strict.
§3Market
Who buys
- Ayurvedic doctors (vaidyas) and clinics
- Medical and Ayurvedic stores
- Hospitals, dispensaries and government AYUSH supply
How it sells
- Distributors to medical stores
- Contract manufacturing for other Ayurvedic brands
- Online sale under your own brand
Good to know
- The KVIC profile says Ayurvedic treatment, once mostly rural, has spread across the world and has large scope.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Double cone blender mixer | 1 | — |
| Angular mixing drum | 1 | — |
| Hollow cube blender | 1 | — |
| Capsule counter | 1 | — |
| Equipment total in the profile | 1 set | ₹1,50,000 |
From: KVIC Project Profile — Manufacture of Ayurvedic Capsule (PMEGP)
- Dried herbs and herbal powdersas per the formulation; raw material ₹4.50 lakh a year in the profile
- Empty capsule shellsbought ready-made
- Bottles, strips and labels₹25,000 a year in the profile
From: KVIC Project Profile — Manufacture of Ayurvedic Capsule (PMEGP)
In our raw material database
§5Licences & registration
- AYUSH drug manufacturing licence from the State Licensing Authority (Drugs and Cosmetics Rules, 1945)
- Good Manufacturing Practices under Schedule T
- Udyam registration
- GST registration
- State Pollution Control Board consent (check your category)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP fits (this is a KVIC forest-based industry profile); MUDRA and CGTMSE cover a loan of this size.
§7Money
How the investment is worked out: KVIC profile: building shed 1,000 sq ft ₹2.00 lakh + equipment ₹1.50 lakh + working capital ₹0.97 lakh = ₹4.47 lakh. Land own.
Working capital: Working capital ₹0.97 lakh (₹97,634 per cycle). Raw material ₹4.50 lakh and labels/packing ₹0.25 lakh 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: Pharmexcil
- 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
- Licence or GMP lapses stopping production
- Batch failure in quality tests
- Price competition from big brands
- Herb price and supply swings
§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 ayurvedic capsule making unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (AYUSH drug manufacturing licence from the State Licensing Authority (Drugs and Cosmetics Rules, 1945), Good Manufacturing Practices under Schedule T), 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 Ayurvedic Capsule Making?
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.