§1What this business is
Marigold flowers are ground, heated in a kettle and processed with rice flour into natural colour, then packed. Natural colours are used in place of synthetic dyes in food, beverages, medicines and cosmetics, and demand is rising as buyers avoid artificial colours.
Capacity: 240 kg a day, 10-hour shift; the report starts at 40% capacity in year 1.
§2Is it right for you?
Who it is for
Someone with food or chemistry training near marigold-growing areas.
Who it is not for
Someone without lab testing or industrial buyer contacts.
Advantages
- Rising demand for natural colours over synthetic ones
- Marigold is grown widely in India
- Buyers in food, pharma and cosmetics
- Machines about ₹14 L
Drawbacks
- Colour strength varies with flower quality
- Buyers need consistent shade and test reports
- Flowers are seasonal
- Technical selling to manufacturers
Skills you need
- Extraction and drying control
- Shade and strength testing
- Food-additive compliance
- B2B selling
Why difficulty 3/5: Process is simple, but buyers demand consistent quality and test reports.
§3Market
Who buys
- Food and beverage makers
- Pharmaceutical firms
- Cosmetic makers
How it sells
- Direct B2B supply
- Food-ingredient traders
Good to know
- The report puts the Indian natural food colour market at USD 74.09 million in 2019, growing at 3.90% a year to 2027.
- Buyers are moving away from synthetic colours over health concerns.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Pulverizer | 1 | ₹2,00,000 |
| Heating vessel | 1 | ₹1,50,000 |
| Boiler | 1 | ₹3,00,000 |
| Packaging machine | 1 | ₹3,80,000 |
| Heating kettle | 1 | ₹3,50,000 |
| Wet grinder | 1 | ₹50,000 |
From: PMEGP sample project report — Natural Colour (prepared by Udyami/Samadhan)
- Marigold flowersmain raw material
- Rice flourused in processing
From: PMEGP sample project report — Natural Colour (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- FSSAI licence (food colour)
- Udyam
- GST
- State Pollution Control Board consent
- Boiler registration under the Boilers Act if the boiler falls under it
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (this is a PMEGP sample report), MUDRA (bank finance ₹18.02 L) and CGTMSE fit.
§7Money
How the investment is worked out: PMEGP sample report: total ₹20.02 L = plant & machinery ₹14.30 L + furniture ₹1.00 L + working capital ₹4.72 L. Land own or rented.
Working capital: Working capital ₹4.72 L (bank ₹4.25 L): 10 days of raw material and finished goods.
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: CHEMEXCIL
- Food-grade colours also need the buyer country's food-additive approval.
§9Risks — where people fail
- Inconsistent colour batches
- Flower supply gaps
- Compliance failures for food use
- Competition from synthetic colours on price
§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 natural colour (marigold-based) unit unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (FSSAI licence (food colour), Udyam), 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 Natural Colour (Marigold-based) 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.