§1What this business is

Resins, drying oil, solvent and additives are mixed in a mixer vessel, stored in tanks and filled and capped into tins. The report plans 320 kg a day and sells at ₹85 a kg in year 1.

Capacity: 320 kg a day, 96,000 kg a year at full capacity; 50% in year 1.

§2Is it right for you?

Who it is for

A paint or hardware dealer who knows carpenters and furniture makers.

Who it is not for

Someone who cannot keep a fire-safe store for solvents.

Advantages

  • Furniture, carpentry and hardware trades buy all year
  • Simple cold-mixing process
  • Good gross margin that grows with volume
  • Can add thinner, polish and primer later

Drawbacks

  • Solvents are flammable — fire risk
  • Paint brands sell varnish too
  • Dealers want credit
  • Pollution and fire rules apply

Skills you need

  • Formulation and drying-time testing
  • Solvent safety
  • Dealer network
  • Tin filling and labelling

Why difficulty 3/5: Process is simple; fire safety and dealer credit need care.

§3Market

Who buys

  • Furniture makers and carpenters
  • Building contractors and painters
  • Households doing repairs

How it sells

  • Paint and hardware shops
  • Direct supply to furniture units

Good to know

  • Sales price in the report rises from ₹85 to ₹105 a kg over five years.

§4Raw material & machinery

ItemQtyCost
Mixer vessel1₹3,40,000
Storage tanks5₹3,25,000
Filling and capping machine1₹5,20,000
Other equipment (pumps, weighing machine and more)1 lot₹55,000

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

  • Resins
  • Drying oil
  • Volatile solvent
  • Other additives and packing materialall raw material averages ₹45–55 a kg in the report

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

§5Licences & registration

  1. Udyam registration
  2. GST
  3. State Pollution Control Board consent
  4. Fire NOC (flammable solvents)
  5. PESO licence if you store petroleum solvents above the exempt limit
  6. Legal Metrology packer registration for packaged goods
  7. Trademark for your brand (optional)

We can do this registration for you

§6Schemes & subsidies

PMEGP fits a ₹23.34 L manufacturing unit; CGTMSE for collateral-free credit; Stand-Up India for SC/ST and women founders.

§7Money

How the investment is worked out: Shed 1,000 sq ft ₹5.00 L + plant & machinery ₹12.40 L + furniture ₹1.50 L + working capital ₹4.44 L = ₹23.34 L. Finance: term loan ₹17 L, working-capital loan ₹4 L, own ₹2.34 L.

Working capital: Working capital ₹4.44 L (bank ₹4 L); the report keeps 30 days of finished stock.

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

How to prepare a loan file

§8Export potential

Export council / board: Not verified yet

  • No HS code or export body has been checked against an official list yet.

§9Risks — where people fail

  • Fire in solvent store
  • Resin and solvent price rise
  • Batch quality complaints
  • Dealer credit losses

§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 varnish manufacturing 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 registration, 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 Varnish Manufacturing?

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

Get a DPR / loan file made

Sources

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

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