§1What this business is
Calcium carbonate and gypsum are pulverised, sieved and mixed with water into a thick slurry, extruded through a die, cut into sticks, dried in an oven and packed. One chalk weighs about 6 g. Buyers are schools, coaching centres and stationery wholesalers.
Capacity: 1,000 pieces an hour, 48,00,000 pieces (28,800 kg) a year; 20,160 kg in year 1 at 70%.
§2Is it right for you?
Who it is for
Someone in a small town who can supply schools and stationery shops nearby.
Who it is not for
Someone who needs a full family income from one unit.
Advantages
- Very small investment
- One worker can run it
- Schools buy chalk every term
- Simple process and cheap raw material
Drawbacks
- Whiteboards and smart boards are cutting chalk use
- Low price per kg — volume is everything
- Profit is under ₹2 lakh a year even in year 5
- Many small local makers
Skills you need
- Mixing the right slurry
- Machine and oven operation
- Selling to schools and wholesalers
Why difficulty 1/5: Simple machine and process; the hard part is selling enough volume.
§3Market
Who buys
- Schools and colleges
- Coaching and training centres
How it sells
- Stationery wholesalers and shops
- Direct supply to schools
Good to know
- The report allows 10% wastage on raw material.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Chalk machine | — | ₹1,80,000 |
| Drying oven | — | ₹52,500 |
| Aluminium mould | — | ₹20,000 |
From: PMEGP sample project report — Chalk Making (prepared by Udyami/Samadhan)
- Calcium carbonatemain raw material; ₹15 per kg in year 1 in the report
- Calcium sulphate (gypsum, CaSO4)dehydrated and mixed into the slurry
From: PMEGP sample project report — Chalk Making (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- GST
- Udyam
- Fire and pollution registration as required
- Trademark for the brand
§6Schemes & subsidies
PMEGP sample project (the report shows 25% KVIC margin money, ₹98,250); MUDRA Shishu/Kishore fits this size.
§7Money
How the investment is worked out: Samadhan report: 'Project at a glance' cost ₹3.93 L; the detailed table totals ₹4.43 L — building & civil work ₹0.75 L + plant & machinery ₹2.98 L + furniture ₹0.20 L + working capital ₹0.50 L. Finance: term loan ₹3.54 L, WC limit ₹0.45 L, own ₹0.44 L.
Working capital: Working capital ₹0.50 lakh, bank limit ₹0.45 lakh.
Year not printed on the report — check current machinery 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 demand as boards change
- Price competition
- Moisture spoiling stock
- Slow payment from institutions
§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 chalk making (extruded chalk) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (GST, Udyam), 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 Chalk Making (Extruded Chalk)?
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.