§1What this business is
Base oil is dehydrated, blended with dispersant and detergent additives, packed and dispatched. Garages add it to the old oil, idle the engine for 10–15 minutes and drain it along with the dissolved sludge.
Capacity: 500 litres a day in a 10-hour shift; first year at 30%, sales ₹94.05 lakh, rising to ₹185.07 lakh.
§2Is it right for you?
Who it is for
A lubricant distributor or garage-network person who wants his own product.
Who it is not for
Someone with no contacts in the auto-service trade.
Advantages
- Sold at every oil change in older vehicles
- Simple blending set-up
- Low break-even (27%)
- Same plant can blend other auto fluids
Drawbacks
- Garages and mechanics must be convinced it works
- Base oil price follows crude oil
- Big lubricant brands sell flush products too
- Flammable stock needs fire safety
Skills you need
- Oil blending and additive dosing
- Lab testing
- Garage and dealer sales
- Fire and chemical safety
Why difficulty 3/5: Blending is simple; building trust with garages takes time.
§3Market
Who buys
- Car and two-wheeler owners
- Garages and service stations
- Fleet operators
How it sells
- Auto-parts and lubricant shops
- Direct supply to workshops
Good to know
- The report says flush is meant for engines that have run more than 1,20,000 km, and that demand comes from wanting longer engine life.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Mixing kettles | 1 | ₹2,50,000 |
| Multi-head liquid filling line | 1 | ₹6,50,000 |
| Industrial pumps | 1 | ₹1,80,000 |
| Electric motors | 1 | ₹2,60,000 |
| Industrial steam boiler | 1 | ₹2,50,000 |
| Other equipment and testing tools | 1 lot | ₹50,000 |
From: PMEGP sample project report — Engine Flush Oil (prepared by Udyami/Samadhan)
- Base oil with at least 15% aromatics (ASTM D-2007)
- Nitrogen-containing dispersantat least 2.5%
- Over-based metal detergentat least 0.6%
- Bottles and packing
From: PMEGP sample project report — Engine Flush Oil (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- Udyam registration
- GST registration
- State Pollution Control Board consent
- Fire safety NOC
- Legal Metrology registration for pre-packed goods
- Trademark for your brand name (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP fits (the report was made for it); MUDRA gives loans up to ₹20 lakh; CGTMSE lets the bank lend without collateral.
§7Money
How the investment is worked out: Plant & machinery ₹16.40 lakh, furniture ₹1.00 lakh, working capital ₹7.47 lakh = ₹24.87 lakh. Land own or rented.
Working capital: Working capital ₹7.47 lakh (bank ₹6.73 lakh); 10 days of raw material and 15 days of finished stock.
Year not printed on the report — check current machinery prices.
§8Export potential
The project report gives no HS code — find the right 8-digit ITC(HS) code on the DGFT website before you export.
§9Risks — where people fail
- Crude-linked cost swings
- Engine damage complaints
- Fire
- Slow acceptance by mechanics
§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 engine flush oil blending unit 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 Engine Flush Oil Blending Unit?
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.