§1What this business is
Mica paper is a paper-like insulating sheet made from mica (muscovite, phlogopite, synthetic or calcined). Mica is ground, graded, mixed with water and binder into a pulp, formed, coated with resin, dried, calendered, rolled and cut. It withstands up to 1,000 °C and is used to make mica sheets and tapes and as insulation in toasters, hair dryers, irons, heaters and high-voltage equipment.
Capacity: 1,000 kg a day on a 10-hour shift; year 1 at 50%.
§2Is it right for you?
Who it is for
Someone near mica sources or with links to electrical, heater and insulation makers.
Who it is not for
Someone without technical help for testing and quality control.
Advantages
- Industrial product with buyers in electrical and appliance making
- Replaces asbestos in insulation
- India has mica deposits (Jharkhand, Andhra Pradesh, Rajasthan)
- Clear process with standard machines
Drawbacks
- High power load (45 HP)
- Buyers need tested, consistent quality
- Mica supply chains can be informal
- Raw material is about 64% of sales in year 1
Skills you need
- Mica grading and pulping
- Resin coating and calendering
- Electrical and heat testing
- Industrial B2B sales
Why difficulty 3/5: Technical product with industrial buyers who expect tested quality.
§3Market
Who buys
- Makers of mica sheets, mica tapes and micanite plates
- Electrical and high-voltage equipment makers
- Makers of toasters, irons, hair dryers and heaters
How it sells
- Direct industrial supply
- Insulation material traders
Good to know
- The report says the mica paper market was US$197.8 million in 2019 and is expected to reach US$253.6 million by 2025.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Hammer mill or jaw crusher | 1 | ₹5,00,000 |
| Industrial mixing unit | 1 | ₹1,00,000 |
| Industrial oven | 1 | ₹50,000 |
| Mica paper dryer machine | 1 | ₹2,00,000 |
| Calendering machine | 1 | ₹1,50,000 |
| C-type hydraulic press | 1 | ₹3,00,000 |
| Mica paper cutting unit | 1 | ₹1,00,000 |
| Distilled water plant | 1 | ₹1,00,000 |
From: PMEGP sample project report — Mica paper (prepared by Udyami/Samadhan)
- Mica (muscovite, phlogopite, synthetic or calcined)main raw material
- Silicone or other heat-resistant binder resinfor coating
- Water and colloid-forming clays (kaolinite, sepiolite)for the pulp
From: PMEGP sample project report — Mica paper (prepared by Udyami/Samadhan)
§5Licences & registration
- Udyam registration
- GST registration
- State pollution control board consent (dust)
- Factory licence
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- CGTMSECentralActiveNo collateral, up to ₹10 crore
- Stand-Up IndiaCentralClosed₹10 lakh – ₹1 crore loan
PMEGP (the report is a PMEGP sample), CGTMSE for loans without collateral, and Stand-Up India for SC/ST and women founders.
§7Money
How the investment is worked out: Report: plant & machinery ₹15.00 lakh, furniture ₹0.60 lakh, working capital ₹6.11 lakh = ₹21.71 lakh. Land own or rented (not costed).
Working capital: Working capital ₹6.11 lakh, of which bank finance ₹5.49 lakh; 10 days of raw material and 10 days of finished stock.
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: CAPEXIL
- 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
- Unreliable or unethical mica supply
- Quality rejections by buyers
- Power cost
- Competition from established makers
§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 mica paper manufacturing 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 Mica Paper Manufacturing 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.