§1What this business is
LLDPE granules are melted in a single-screw extruder, blown into a film bubble, flattened by nip rolls and wound into rolls of 100–800 gauge and 450–2,100 mm lay-flat width. Mulch film is laid over crop beds to hold moisture, cut weeds and protect the soil. Buyers are farmers, agri-input dealers and drip/micro-irrigation suppliers.
Capacity: 1,000 kg a day, 3,00,000 kg a year; 1,35,000 kg in year 1.
§2Is it right for you?
Who it is for
A plastics processor or agri-input dealer who knows farmer demand by season.
Who it is not for
Someone without working capital to stock granules before the season.
Advantages
- Mulching spreads fast with drip irrigation and horticulture
- One machine line makes many widths and gauges
- Low break-even in the report
- Same plant can make other agricultural films
Drawbacks
- Polymer prices follow crude oil
- Seasonal sales tied to planting time
- Plastic-waste rules add compliance
- Competition from big film makers
Skills you need
- Blown-film extrusion
- Gauge and width control
- Seasonal stock planning
- Dealer and subsidy-linked selling
Why difficulty 3/5: Running an extrusion line and timing stock to the farming season needs experience.
§3Market
Who buys
- Vegetable, fruit and flower growers
- Agri-input and seed dealers
- Drip and micro-irrigation suppliers
- Horticulture department schemes
How it sells
- Dealer network in farming districts
- Supply through irrigation contractors
- Direct sale to farmer groups and FPOs
Good to know
- The report says mulching can raise yields by up to 100% for some crops and bring harvests up to a month earlier.
- Benefits listed: moisture retention, weed control, cleaner crop, less soil compaction, better germination.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Extrusion blown film plant (90 mm), 120 kg per hour | 1 | ₹22,00,000 |
| Cooling tower | 1 | ₹3,00,000 |
| Compressor | 1 | ₹3,00,000 |
| Moulds and dies | 1 lot | ₹2,00,000 |
| Other equipment and hand tools | 1 lot | ₹2,00,000 |
From: PMEGP sample project report — LLDPE Agricultural Mulch Film (prepared by Udyami/Samadhan)
- LLDPE granules360 MT a year at ₹75,000 per MT at full capacity
From: PMEGP sample project report — LLDPE Agricultural Mulch Film (prepared by Udyami/Samadhan)
In our raw material database
Linear low-density polyethylene (LLDPE) →Colour and additive masterbatch →
§5Licences & registration
- Udyam registration (the report lists Udyog Aadhaar as optional)
- GST
- State Pollution Control Board consent
- Registration under the Plastic Waste Management Rules with the State Pollution Control Board
- Trademark (optional)
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP fits (project under ₹50 L); CGTMSE for a collateral-free loan; Stand-Up India for SC/ST or women founders.
§7Money
How the investment is worked out: Samadhan report: plant and machinery ₹32.00 L, furniture ₹3.00 L, working capital ₹7.78 L = ₹42.78 L; land own or rented (not costed).
Working capital: LLDPE granules at ₹75,000 per tonne are almost the whole cost (₹270.00 L a year at full use); working capital ₹7.78 L (bank ₹7.00 L).
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
Export council / board: PLEXCONCIL (Plastics Export Promotion Council)
- 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
- Granule price swings
- Unsold stock after season
- Plastic regulation changes
- Dealer credit
§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 lldpe agricultural mulch film 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 (the report lists Udyog Aadhaar as optional), 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 LLDPE Agricultural Mulch Film?
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.