§1What this business is
Shellac varnish (French polish) is shellac dissolved in spirit and filtered. It gives wood a smooth shine and, the profile says, lasts longer than chemical varnish, so offices, hotels and homes use it on furniture and panelling. The unit needs only a stainless-steel vat, a motor stirrer and a storage tank.
Capacity: 4,540 units a year at ₹78 each (unit not printed); cost of production ₹3.54 lakh at full capacity.
§2Is it right for you?
Who it is for
A shellac trader or furniture-polish supplier who can add it to an existing business, ideally in rented space.
Who it is not for
Anyone who needs a full income from it.
Advantages
- Equipment costs only ₹8,000
- Natural, food-safe finish valued for fine furniture
- Carpenters and polishers buy it regularly
- Simple process
Drawbacks
- Very thin margin: net surplus ₹30,000 a year at full capacity
- Most of the money goes into the building (₹3.00 lakh)
- PU and synthetic finishes have taken much of the market
- Spirit is flammable and may need permits
Skills you need
- Shellac grading and dissolving
- Filtering and specific-gravity checks
- Safe handling of spirit
- Selling to carpenters and hardware shops
Why difficulty 2/5: Easy to make, but the profile's own numbers leave almost no profit.
§3Market
Who buys
- Carpenters and furniture polishers
- Furniture makers
- Offices, hotels and homes (through contractors)
How it sells
- Hardware and paint shops
- Direct supply to furniture workshops
Good to know
- The profile says shellac varnish has better demand than chemical varnish because of its quality, shine and long life.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Stainless-steel vat with lid and stopcock, with stand | 1 | — |
| Mechanical stirrer with ½ hp motor and speed regulator | 1 | — |
| Stainless-steel reservoir for filtered varnish, with lid | 1 | — |
| Weighing balance, measuring cylinders and specific-gravity meter | 1 set | — |
| Equipment total in the profile | 1 set | ₹8,000 |
From: KVIC Project Profile — Production of Shellac Varnish (French Polish Improved Quality) (PMEGP)
- Shellacraw material ₹2.20 lakh a year in the profile
- Spirit (solvent)dissolves the shellac
- Bottles, tins and labels₹1,000 a year in the profile
From: KVIC Project Profile — Production of Shellac Varnish (French Polish Improved Quality) (PMEGP)
In our raw material database
§5Licences & registration
- Udyam registration
- GST registration
- Fire NOC (flammable solvents stored)
- Excise permit to buy and store denatured spirit, if your state requires one
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP fits; MUDRA and CGTMSE cover a loan this small.
§7Money
How the investment is worked out: KVIC profile: building shed 1,500 sq ft ₹3.00 lakh + equipment ₹0.08 lakh + working capital ₹0.60 lakh = ₹3.68 lakh. Land not costed.
Working capital: Working capital ₹0.60 lakh (₹58,987 per cycle). Raw material ₹2.20 lakh and labels/packing ₹0.01 lakh a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: Shellac & Forest Products Export Promotion Council (SHEFEXIL)
- HS codes are from the WCO HS 2022 list; 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
- Fire
- Shellac and spirit price rise
- Shrinking demand for French polish
- Very low profit leaves no room for mistakes
§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 shellac varnish (french polish) 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 Shellac Varnish (French Polish) 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.