§1What this business is
Shellac resists oils and petroleum, so it is used to make petrol- and gas-tight seals in engines and fuel lines in the automobile and aviation trades. The unit dissolves and mixes the ingredients in a stainless-steel vessel with a motor stirrer and fills the compound into tins or tubes. The profile says its product beats ordinary market grades on adhesion, flexibility, shock and oil resistance.
Capacity: 2,000 kg of gasket cement a year at ₹172 a kg (₹3.44 lakh) at full capacity.
§2Is it right for you?
Who it is for
A shellac trader or auto-parts dealer who wants a small side product.
Who it is not for
Anyone who needs this to be a full-time living — the profile's surplus is very small.
Advantages
- Very small investment (₹1.67 lakh)
- Equipment costs only ₹10,000
- Steady use in vehicle repair workshops
- Shellac is an Indian forest product, easy to source
Drawbacks
- Tiny income: net surplus ₹50,000 a year at full capacity
- Synthetic sealants and ready gaskets compete
- Shellac prices swing with the lac crop
- Small market — needs wide dealer reach
Skills you need
- Shellac grading
- Mixing and specific-gravity checks
- Filling and sealing containers
- Selling to auto-parts shops
Why difficulty 2/5: Easy to make; hard to earn much from it.
§3Market
Who buys
- Automobile repair workshops and mechanics
- Engine and pump repairers
- Aviation and industrial maintenance units
How it sells
- Auto-parts and hardware dealers
- Direct supply to workshops
Good to know
- The profile says shellac's oil and petroleum resistance makes it widely used in the automobile and aviation industry.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Stainless-steel vessel with lid and stop cock | 1 | — |
| Stirrer with motor and speed regulator | 1 | — |
| Weighing balance, measuring cylinder, gravity meter and tools | 1 set | — |
| Equipment total in the profile | 1 set | ₹10,000 |
From: KVIC Project Profile — Production of Gasket Shellac Compound (Gasket Cement) (PMEGP)
- Shellacthe main ingredient; raw material ₹2.00 lakh a year in the profile
- Solvents and other ingredientsthe profile does not print the full formula
- Tins, tubes and labels₹5,000 a year in the profile
From: KVIC Project Profile — Production of Gasket Shellac Compound (Gasket Cement) (PMEGP)
In our raw material database
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence from the local body
- Fire NOC (flammable solvents stored)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP fits; MUDRA (Shishu/Kishore) and CGTMSE cover a loan this small.
§7Money
How the investment is worked out: KVIC profile: building shed 500 sq ft ₹1.00 lakh + equipment ₹0.10 lakh + working capital ₹0.57 lakh = ₹1.67 lakh. Land own.
Working capital: Working capital ₹0.57 lakh (₹57,468 per cycle). Raw material ₹2.00 lakh and labels/packing ₹0.05 lakh a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Shellac & Forest Products Export Promotion Council (SHEFEXIL)
- HS codes are from the WCO HS 2022 list; 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
- Shellac price rise
- Low sales volume
- Fire from solvents
- Quality complaints from leaks
§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 gasket shellac compound (gasket cement) 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 Gasket Shellac Compound (Gasket Cement)?
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.