§1What this business is

Nitrocellulose, resin, solvent, antioxidants and pigments are mixed in a diluter tank and mixer, then filled and packed. Variants include base coat, top coat, matte and gel polish. Sold through cosmetic shops, salons and online — the report notes e-commerce brands growing the market.

Capacity: 300 kg a day, 72,000 kg a year; year 1 at 50% = 36,000 kg, sold at ₹180 a kg.

§2Is it right for you?

Who it is for

A chemist or cosmetic trader who wants to start small and build a brand or make for other brands.

Who it is not for

Someone without a licence plan or a sales channel.

Advantages

  • Very low machinery cost (about ₹2 L)
  • Small space needed
  • Many colours and finishes to sell
  • Online beauty brands are growing the market

Drawbacks

  • Needs a cosmetic manufacturing licence
  • Solvents are flammable
  • Heavy working capital for raw material
  • Strong brand competition

Skills you need

  • Colour matching and formulation
  • Solvent safety
  • Packaging and branding
  • Online and salon sales

Why difficulty 3/5: Cheap machines, but licensing and brand building take effort.

§3Market

Who buys

  • Women and girls
  • Beauty salons
  • Other cosmetic brands (contract making)

How it sells

  • Cosmetic and general stores
  • E-commerce beauty platforms
  • Salon suppliers

Good to know

  • The report puts the Indian nail polish market at $88.6 million in 2018.
  • It says new variants and rural distribution are expanding the market.

§4Raw material & machinery

ItemQtyCost
Nail polish machinery set: diluter tank, mixer, filler, packaging1 set₹1,70,000 + GST ₹30,600 = ₹2,00,600

From: PMEGP sample project report — Nail Polish (prepared by Udyami/Samadhan)

  • Nitrocellulosefilm former
  • Solvent and resinbase of the polish
  • Antioxidantssmall amounts
  • Pigments (e.g. manganese violet)for colour; average raw material ₹80–90 a kg

From: PMEGP sample project report — Nail Polish (prepared by Udyami/Samadhan)

In our raw material database

Acetone →Ethyl acetate (solvent) →

§5Licences & registration

  1. Cosmetic manufacturing licence from the State Drugs Control Department (listed in the report)
  2. Udyam
  3. GST
  4. Fire and pollution registration as required
  5. Trademark for your brand

We can do this registration for you

§6Schemes & subsidies

PMEGP (this is a PMEGP sample report), MUDRA (bank finance ₹11.08 L) and CGTMSE fit.

§7Money

How the investment is worked out: PMEGP sample report prints ₹2.31 L as the project cost on its glance page — that is fixed assets only (machinery ₹2.01 L + furniture ₹0.30 L). Its cost table adds working capital ₹10.00 L for a total of ₹12.31 L. Machinery = ₹1.70 L + GST ₹0.31 L. Premises rented (₹14,000 a month). Total project cost as printed: ₹12.31 lakh (₹2.31 lakh of it is fixed assets).

Working capital: Working capital ₹10.00 L (bank limit ₹9.00 L) — far more than the machinery, mostly for raw material (₹32.40 L in year 1).

Year not printed on the report — check current machinery prices.

How to prepare a loan file

§8Export potential

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

3304Beauty or make-up preparations, including manicure or pedicure preparations

Export council / board: CHEMEXCIL

  • Importing countries have their own cosmetic labelling and ingredient rules.

§9Risks — where people fail

  • Licence non-compliance
  • Fire risk
  • Unsold colour stock
  • Raw material price rises

§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 nail polish unit (small) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
  2. Days 31–60: Udyam and the licences you need (Cosmetic manufacturing licence from the State Drugs Control Department (listed in the report), Udyam), 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 Nail Polish Unit (Small)?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Nail Polish (prepared by Udyami/Samadhan)

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