§1What this business is
Raw cashew nut shells contain over 20% of a dark, sticky liquid. An expeller presses the shells and a filter press cleans the oil. CNSL is sold to makers of brake linings (friction dust), paints and varnishes, laminating and epoxy resins and foundry chemicals; distilled CNSL gives cardanol.
Capacity: 500 kg CNSL a day, 1,50,000 kg a year at full capacity; year 1 at 70% (1,05,000 kg).
§2Is it right for you?
Who it is for
Someone in a cashew-processing cluster with steady access to shells.
Who it is not for
Someone far from cashew units.
Advantages
- The raw material is waste from cashew units
- Industrial buyers take bulk quantities
- Simple expeller technology
- Can be exported
Drawbacks
- Break-even is high (49%)
- Shell supply depends on cashew processors nearby
- CNSL burns skin and smells — safety gear is a must
- A few industrial buyers set the price
Skills you need
- Running and maintaining expellers
- Safe handling of corrosive oil
- Selling to industry
- Buying shells
Why difficulty 3/5: Simple machines, but corrosive material and bulk industrial selling.
§3Market
Who buys
- Brake-lining and friction-material makers
- Paint, varnish and resin makers
- Foundry chemical makers
- Cardanol distillers
How it sells
- Direct sale to industrial buyers
- Traders and exporters
Good to know
- The report notes that the oil-bath process recovers about 10% oil and expellers recover about 10% more, so up to 100 kg of CNSL can come from 1 tonne of shells.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Oil expeller on a steel channel with oil tray, thrust bearing, 20 HP motor and starter | 1 | ₹5,50,000 |
| 2 HP motor for filter press | 1 | ₹30,000 |
| Filter press, 22 plates 22 × 22 in, with plunger pump | 1 | ₹2,50,000 |
| MS tank, 2,500 litres | 3 | ₹1,50,000 |
| Other machinery and equipment | — | ₹1,20,000 |
From: PMEGP sample project report — Cashew Nut Shell Liquid (prepared by Udyami/Samadhan)
- Raw cashew nut shells1,000 tonnes a year at ₹1,500 per tonne (as printed)
- Packing material₹1,50,000 a year
From: PMEGP sample project report — Cashew Nut Shell Liquid (prepared by Udyami/Samadhan)
Suppliers in Building Business Bazaar
Kilco Perfect Machine Traders · Thrissur →S.P. Engg. Co · Kanpur →Ganesh Expeller Works · Mumbai →Mavinchandra and Co · Chennai →Sharma Machine Tools · Ghaziabad →
In our raw material database
§5Licences & registration
- Udyam
- GST
- Pollution Control Board NOC
- Fire safety
- Trademark (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP fits the ₹20.44 L project; CGTMSE and Stand-Up India for bank credit.
§7Money
How the investment is worked out: Building/shed 1,000 sq ft ₹4.00 L, plant & machinery ₹11.00 L, furniture ₹1.00 L, working capital ₹4.44 L = ₹20.44 L.
Working capital: Working capital ₹4.44 L; bank demand ₹4.00 L.
Year not printed on the report — check current machinery prices.
§8Export potential
Export council / board: CEPCI (Cashew Export Promotion Council of India)
- Confirm the ITC-HS code for CNSL on the DGFT site.
§9Risks — where people fail
- Shell supply
- Price swings
- Skin burns to workers
- Pollution complaints
§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 cashew nut shell liquid (cnsl) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, GST), 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 Cashew Nut Shell Liquid (CNSL)?
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.