§1What this business is
Moulds are oiled with a 4:1 mix of kerosene and groundnut oil, filled with plaster of Paris, china clay and colour mixed with water, left to set, then the sticks are taken out, dried in trays and in the sun, tested for strength and packed 100 to a box. Relevant standards are IS 2694 (white chalk) and IS 4222 (coloured chalk). Buyers are schools, colleges, adult-education centres and training institutes.
Capacity: 96,000 boxes of 100 chalks a year (320 boxes a day); 57,600 boxes in year 1 at 60%.
§2Is it right for you?
Who it is for
A woman's group, a family or a small trader near schools who wants a low-risk side income.
Who it is not for
Anyone who needs this to be the household's main income.
Advantages
- Smallest possible investment — about ₹1.2 lakh
- No power needed for production
- Can start within one month
- Can be run from home-sized premises
Drawbacks
- Profit is under ₹1 lakh a year even at 80%
- Break-even is high at 63%
- Whiteboards are reducing chalk use
- Selling price assumed is only ₹6 a box
Skills you need
- Mixing and moulding
- Drying and quality testing
- Selling to schools
Why difficulty 1/5: Very simple hand process with almost no machinery.
§3Market
Who buys
- Schools and colleges
- Adult-education centres
- Bank training institutes and industries
How it sells
- Direct supply to schools and institutions
- Stationery shops
Good to know
- The profile says rising enrolment and adult education keep chalk demand growing.
- It also says the market price is higher than the ₹6 a box it assumes.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Aluminium moulds, 90 cavities (₹5,500 each) | 8 | ₹44,000 |
| Work table, balance, wooden trays | 1 set | ₹26,000 |
From: KVIC Project Profile — Chalk Crayons (PMEGP)
- Plaster of Paris4 MT a month at ₹2,000 per MT
- China clay, colour, lubricants₹3,000 a month
- Cardboard boxes8,000 boxes a month at ₹0.50 each
From: KVIC Project Profile — Chalk Crayons (PMEGP)
In our raw material database
§5Licences & registration
- Udyam
- GST if turnover crosses the limit
- Trade licence from the local body
§6Schemes & subsidies
KVIC/PMEGP model project; MUDRA Shishu covers a loan of this size.
§7Money
How the investment is worked out: KVIC profile: building rent advance ₹0.24 L + plant & machinery ₹0.70 L + pre-operative expenses ₹0.10 L + working-capital margin ₹0.14 L = ₹1.18 L. (The PMEGP list shows ₹1.35 L; the profile itself prints ₹1.18 L.) Finance: capital ₹0.65 L, term loan ₹0.53 L.
Working capital: Working capital ₹0.14 lakh (one month of raw material and expenses), met from own funds.
Year not printed on the KVIC profile — its wage rates (₹2,000–5,000 a month) show it is old; check current prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- 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
- Falling chalk demand
- Moisture during monsoon drying
- Low price competition
- Institution payment delays
§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 moulded chalk crayons 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 if turnover crosses the limit), 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 Moulded Chalk Crayons?
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.