§1What this business is
Expandable polystyrene beads are pre-expanded with steam, left to mature, then moulded into shaped packaging pieces or large blocks that are cut into sheets. Buyers are makers of fans, motors, mixers, irons, TVs, computers, instruments, laboratory equipment and brass handicrafts for export, plus fish and vaccine box users. The report plans 800 tonnes a year, buying beads at ₹22 a kg and selling at ₹31 a kg. (Thermocol for decoration is banned in India; this unit makes protective packaging and insulation.)
Capacity: 800 tonnes a year; 560 tonnes at 70% use in year 1.
§2Is it right for you?
Who it is for
Someone with a plastics or chemistry background and contacts among appliance, electronics or cold-chain businesses.
Who it is not for
Someone far from industrial buyers — the light, bulky product cannot travel far profitably.
Advantages
- Light, shock-absorbing packaging needed by appliance and electronics makers
- Also sells as insulation sheets and fish or vaccine boxes
- Beads are made in India
- Moulds can be made for each customer's product
Drawbacks
- Bulky product — transport cost limits how far you can sell
- Needs a steam boiler and a large shed
- Single-use thermocol items for decoration, cups and plates are banned
- Customers are shifting some packaging to paper-based options
Skills you need
- Steam boiler and pre-expander operation
- Mould design for customers' products
- Density and quality control
- Selling to factories on contract
Why difficulty 4/5: Boiler, large shed, big working capital and bulky product.
§3Market
Who buys
- Fan, motor, mixer and iron makers
- Electronics and instrument makers
- Brass handicraft exporters
- Fish, vaccine and cold-drink box users
How it sells
- Direct supply to factories against moulds made for their products
- Sheet sales to insulation and display buyers
Good to know
- The report credits demand to growth in electronics, appliances, instruments and handicraft exports.
- Thermocol decoration items, cups and plates are on India's banned single-use plastic list — stick to protective packaging and insulation.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Heavy-duty automatic pre-foaming machine | 1 | ₹2,60,000 |
| Blower with 2 HP motor | 1 | ₹40,000 |
| Semi-automatic shape moulding machine | 1 | ₹1,80,000 |
| Manual block moulding machine | 1 | ₹1,95,000 |
| Vertical slab (sheet) cutting machine | 1 | ₹70,000 |
| Trolley cutting machine | 1 | ₹60,000 |
| Air compressor, 30 HP | 1 | ₹3,00,000 |
| Boiler, 1 tonne capacity | 1 | ₹6,80,000 |
| Sprayer tank, 5,000 litres with 1 HP pump | 1 | ₹50,000 |
| Water softening plant | 1 | ₹55,000 |
| Silos, 200 kg (8×8×8 ft) | 1 set | ₹1,10,000 |
From: SIDBI Stand-Up Mitra project profile — Thermocol Packaging (2018) — private guide — confirm locally
- Expandable polystyrene beadsmade in India; ₹22 a kg in the report
From: SIDBI Stand-Up Mitra project profile — Thermocol Packaging (2018) — private guide — confirm locally
In our raw material database
§5Licences & registration
- Udyam registration
- GST
- State Pollution Control Board consent
- Boiler registration under the Indian Boilers Act
- Factory licence
- Fire NOC
- EPR registration on the CPCB plastic waste portal where it applies
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
₹68.13 L is above PMEGP's ₹50 L ceiling unless scaled down; the ₹47.69 L bank loan fits Stand-Up India (₹10 L–₹1 crore) for SC/ST and women founders, with CGTMSE cover.
§7Money
How the investment is worked out: Land and building ₹25.00 L, plant and machinery ₹20.00 L, miscellaneous assets ₹4.35 L, preliminary and pre-operative expenses ₹2.20 L, contingencies ₹4.50 L, working capital margin ₹12.08 L = ₹68.13 L.
Working capital: Working capital ₹25.93 L; margin ₹12.08 L, the rest from the bank.
Prices from 2018 — machinery and building costs will be higher now.
§8Export potential
Export council / board: Not verified yet
- No HS code or export body has been checked against an official list yet.
§9Risks — where people fail
- Polystyrene bead price swings
- Boiler safety
- Fire risk in bead and block storage
- Plastic packaging rules and EPR obligations
§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 thermocol (eps) packaging mouldings 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), 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 Thermocol (EPS) Packaging Mouldings?
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.