§1What this business is

Aluminium foil (99.7% pure or better) and condenser tissue paper are wound in alternate layers on a foil-winding machine. Several rolls are stacked and pressed between MS plates, the ends are sprayed with tin-lead to join the foils, and leads are soldered on. The stack goes into an MS can with porcelain bushings, is dried under vacuum at high temperature, filled with PXE synthetic insulating oil, sealed and tested to IS 2834:1986. Electricity boards make capacitors compulsory on industrial motor loads, so factories, pump users and panel makers buy them.

Capacity: 20,000 capacitors of various ratings a year, worth ₹31 L at an average ₹155 each.

§2Is it right for you?

Who it is for

An electrical engineer or technician with contacts among panel makers, pump dealers and factories.

Who it is not for

Someone without electrical training; quality failures are dangerous.

Advantages

  • Electricity boards require capacitors on industrial motor loads (profile)
  • Pump and motor use keeps growing
  • Saves energy for the buyer, an easy sales point
  • Modest investment (₹12.73 L)

Drawbacks

  • Many units already make LT capacitors
  • Vacuum drying and oil filling need careful process control
  • Failures can burst or leak oil
  • Large brands sell through panel makers

Skills you need

  • Foil winding and stacking
  • Vacuum impregnation and oil filling
  • Testing to IS 2834
  • Selling to panel makers and industrial buyers

Why difficulty 3/5: Process control in vacuum drying and oil filling matters, and the market is crowded.

§3Market

Who buys

  • Factories with induction motors
  • Farmers and irrigation pump users
  • Control panel makers
  • Electrical contractors

How it sells

  • Electrical dealers
  • Direct supply to panel makers and factories

Good to know

  • The profile says electricity authorities have made LT capacitors compulsory for industrial loads.
  • Rural electrification and pump-set use push demand up (profile).

§4Raw material & machinery

ItemQtyCost
Vacuum impregnation plant1₹3,00,000
Foil winding machine1₹65,000
Air conditioner with accessories2₹50,000
Baking oven1₹20,000
Vapour degreasing plant; spray painting unit with compressor1 each₹20,000
Drills, bench grinder, 200 A welding set, 15 kVA spot welder, sheet bender, hand shear1 each₹45,000
Testing: test panel with meters and capacitance bridge, auto-transformer 0–270 V, HV tester 2.5 kV, insulation tester, DC over-voltage and discharge-device testers1 lot₹65,000

From: DC-MSME project profile — L.T. Power Capacitor (2003)

  • Condenser tissue paper450 kg a month at ₹100/kg = ₹45,000
  • Aluminium foil (99.7% purity or above)200 kg a month at ₹175/kg = ₹35,000
  • PXE synthetic insulating oil300 kg a month at ₹50/kg = ₹15,000
  • MS sheet, screws, press-plain paper, porcelain bushings, packing₹50,000 a month

From: DC-MSME project profile — L.T. Power Capacitor (2003)

Suppliers in Building Business Bazaar

Vacuum Plants & Instruments Mfg. Co. (P) Ltd · Pune →Alcaps · Delhi →Aluminium Foils · Bengaluru →Growers Pvt. Ltd · Mumbai →Heri Inc · Delhi →Manlik Engg. Works · Ahmedabad →Person Engg. Corporation · Mumbai →Rectifiers and Electronics · Delhi →Ter Indian Agency · Mumbai →Thoshnival Brothers (Bombay) Pvt. Ltd · Mumbai →

§5Licences & registration

  1. Udyam registration
  2. GST
  3. BIS certification to the power-capacitor standard where buyers or a QCO require it
  4. Trade licence from the local body

We can do this registration for you

§6Schemes & subsidies

The ₹12.73 L project fits PMEGP, MUDRA (Tarun), CGTMSE and Stand-Up India.

§7Money

How the investment is worked out: DC-MSME profile: production machinery ₹5.00 L (vacuum impregnation plant ₹3.00 L, foil winding machine ₹65,000, 2 air conditioners ₹50,000, baking oven ₹20,000 and more) + testing equipment ₹65,000 + electrification ₹56,500 + tools ₹20,000 + office equipment ₹25,000 = fixed capital ₹6.72 L; working capital for 3 months ₹6.01 L; total ₹12.73 L. Building rented.

Working capital: Working capital for 3 months ₹6.01 L; monthly spend ₹2.00 L, of which tissue paper, foil, oil, cans and bushings ₹1.45 L.

Prices from 2002–03 — machinery, material and wage costs will be much higher now.

How to prepare a loan file

§8Export potential

Confirm the HS code in the DGFT ITC(HS) lookup before you export

8532.10Fixed capacitors for 50/60 Hz circuits with a reactive power-handling capacity of 0.5 kvar or more (power capacitors)

Export council / board: EEPC India

  • Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
  • You need an Import Export Code (IEC) from DGFT before the first shipment.

§9Risks — where people fail

  • Failure and safety claims
  • Price rise of aluminium foil and paper
  • Competition from established brands
  • Credit sales to contractors

§1030 / 60 / 90-day plan

A general plan that applies to any business. A plan for this business will be added after research.

  1. Days 1–30: Visit a working lt power capacitor manufacturing unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Udyam registration, GST), a project report (DPR), and the scheme or loan file.
  3. Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.

§11Who to connect with

Not verified yet

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 LT Power Capacitor Manufacturing?

DPR, loan file or registration — ask us on WhatsApp.

Get a DPR / loan file made

Sources

  1. DC-MSME project profile — L.T. Power Capacitor (2003)

Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.