§1What this business is

Shajar stones from the Ken river near Banda (UP) are chipped open, sliced 2–4 mm thick with a wire bow and silicon carbide powder, shaped, lapped and polished with oxides to show the tree-like patterns inside. Only about 5% of stones yield good Shajar. The PMEGP report plans photo frames and sculptures. Buyers are tourists, gift and handicraft shops, exhibitions and exporters.

Capacity: 100 pieces a day on a 10-hour shift; 50% in year 1.

§2Is it right for you?

Who it is for

Someone from Banda or Bundelkhand with links to Shajar artisans and handicraft buyers.

Who it is not for

Someone far from the stone source or without craft-market contacts.

Advantages

  • A craft found only around Banda — a strong story for buyers
  • Export and gift potential
  • Government fairs and exhibitions give a ready market
  • Small, quiet workshop

Drawbacks

  • Only about 5% of stones are usable — waste is high
  • Thin margin in the report
  • Skilled cutters are few
  • Sales depend on fairs and tourists

Skills you need

  • Judging rough stone
  • Wire-bow cutting and lapping
  • Design to show the pattern
  • Selling at fairs and to exporters

Why difficulty 3/5: Needs rare craft skill and a reliable stone source; margins are thin.

§3Market

Who buys

  • Tourists and gift buyers
  • Handicraft and gift shops
  • Exporters of semi-precious stone items

How it sells

  • Government fairs and exhibitions (the report names Mumbai, Delhi, Agra, Khajuraho and Surajkund)
  • Handicraft emporia
  • Online craft marketplaces

Good to know

  • The report says about 150 artisan families in 60–70 units at Banda work on Shajar, supporting around 1,000 people.
  • It says the craft is promoted by the UP and central governments and has good export potential.

§4Raw material & machinery

ItemQtyCost
Stone cutting machine——
Shaper——
Grinding machine (iron or silicon carbide grindstone)——
Stone lapping machine——
All machinery and equipment together1 lotabout ₹7,93,000 excluding GST and installation

From: PMEGP sample project report — Stone Handicraft (prepared by Udyami/Samadhan)

  • Shajar (dendritic agate) stonecollected from the Ken river banks, mostly after the rains
  • Thin spring-steel wirefor the cutting bow
  • Silicon carbide or alumina powderabrasive for cutting
  • Polishing oxides (red, cerium, tin, chromium) and paints and primers

From: PMEGP sample project report — Stone Handicraft (prepared by Udyami/Samadhan)

§5Licences & registration

  1. Udyam
  2. GST
  3. Artisan card / handicraft registration with the Development Commissioner (Handicrafts) for fair and export support
  4. IEC if you export

We can do this registration for you

§6Schemes & subsidies

PMEGP (the report was made for it), MUDRA up to ₹20 L, CGTMSE for a collateral-free loan, Stand-Up India for SC/ST or women founders.

§7Money

How the investment is worked out: PMEGP sample report: plant & machinery ₹7.93 L, furniture ₹0.90 L, working capital ₹7.22 L = ₹16.05 L. Land 1,500 sq ft own or rented.

Working capital: Working capital ₹7.22 L (bank ₹6.50 L): stone stock and 15 days of finished goods. Raw material costs ₹240–300 per photo frame and ₹200–260 per sculpture.

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

7116.20Articles of precious or semi-precious stones (natural, synthetic or reconstructed)

Export council / board: Export Promotion Council for Handicrafts (EPCH)

  • Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.

§9Risks — where people fail

  • Uncertain stone supply from the river
  • Low yield of good pieces
  • Thin margin
  • Fake or dyed stones spoiling the market

§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 shajar stone handicraft unit 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, 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 Shajar Stone Handicraft Unit?

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

Get a DPR / loan file made

Sources

  1. PMEGP sample project report — Stone Handicraft (prepared by Udyami/Samadhan)

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