§1What this business is
Paint thinner is a solvent used to thin oil-based paint for spraying and to clean brushes and tools. The unit stores solvents in tanks, mixes them to a formula in a mixer vessel, and fills and caps the thinner in containers. It is a blending and filling job; no chemical reaction is involved.
Capacity: 340 litres a day, 1,02,000 litres a year (8-hour shift, 300 days); year 1 at 50%.
§2Is it right for you?
Who it is for
A paint or hardware trader who knows the dealers and can follow fire-safety rules.
Who it is not for
Someone who cannot invest in safe storage, fire fighting and ventilation.
Advantages
- Simple blend-and-fill process
- Steady use by painters, workshops, furniture makers and hardware shops
- Small team of 7
- Low break-even (32%)
Drawbacks
- Solvents are highly flammable — fire risk
- Solvent prices follow crude oil
- Strict storage rules for petroleum solvents
- Cheap unbranded thinner floods hardware markets
Skills you need
- Solvent blending to a formula
- Fire and chemical safety
- Buying solvents in bulk
- Dealer network in paints and hardware
Why difficulty 3/5: Process is easy, but storage of flammable solvents needs licences and strict safety.
§3Market
Who buys
- Painters and painting contractors
- Furniture and automobile workshops
- Households doing small paint jobs
How it sells
- Paint and hardware dealers
- Direct supply to workshops and factories
- Own brand through distributors
Good to know
- Raw material is ₹22.95 lakh of ₹38.10 lakh sales in year 1.
- The report notes thinner should not be used with latex paint, shellac or lacquer.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Mixer vessel | 1 | ₹3.40 lakh |
| Storage tanks | 6 | ₹3.90 lakh |
| Filling and capping machine | 1 | ₹5.20 lakh |
| Other equipment (pumps, weighing machine etc.) | — | ₹50,000 |
From: PMEGP sample project report — Thinner (prepared by Udyami/Samadhan)
- Toluene, naphtha, turpentine oil, acetonemain solvents
- Minerals and other additives
- Packing materialcans and bottles
- Average raw material cost₹45–50 a litre (₹45 in year 1 of the report)
From: PMEGP sample project report — Thinner (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- Udyam registration
- GST registration
- PESO licence if flammable solvent storage crosses the Petroleum Rules limits
- Fire NOC
- State Pollution Control Board consent
- Trademark for the brand
§6Schemes & subsidies
PMEGP fits this ₹23.94 lakh manufacturing project; CGTMSE gives collateral-free cover.
§7Money
How the investment is worked out: Sample report total ₹23.94 lakh: building/shed 1,000 sq ft ₹5.00 lakh, plant & machinery ₹13.00 lakh, furniture & fixtures ₹1.50 lakh, working capital ₹4.44 lakh. Finance: term loan ₹17.55 lakh, working-capital loan ₹4.00 lakh, own share ₹2.39 lakh.
Working capital: Working capital ₹4.44 lakh (bank ₹4.00 lakh) for solvent stock and buyer credit.
Year not printed on the sample report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- Get an IEC; thinner ships as dangerous goods and needs proper UN packing and labels.
§9Risks — where people fail
- Fire and explosion
- Crude-linked price swings
- Vapour exposure for workers
- Regulatory action for unsafe storage
§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 paint thinner making 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 Paint Thinner Making?
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.