Samadhan Projects
The pitch
Produces refined base oil by processing used lubricant oils through filtration, chemical treatment, and vacuum distillation to remove impurities and additives.
B2B sales to industrial lubricant blenders, automotive workshops, and small-scale machinery manufacturers via direct contracts and industrial distributors. Operations involve the collection of used oil, multi-stage purification, and quality testing to ensure the refined oil meets industrial viscosity standards.
A sample project cost of ₹25,00,000 covers the installation of the refining plant, vacuum distillation units, storage tanks for raw and finished oil, and basic site infrastructure.
Demand shape for this sample line — advisory, not a market study.
Buyers
Households, kirana/wholesale traders, and workshops or institutional kitchens (depending on edible vs lubricant positioning) drive repeat offtake.
Channels
Demand watch-out: Buyers compare price and trust heavily — weak packing or unclear grade kills repeat demand faster than machinery choice.
Derived from idea type and sector — not a survey or government market report.
Answers from this page only — not legal or financing advice.
Produces refined base oil by processing used lubricant oils through filtration, chemical treatment, and vacuum distillation to remove impurities and additives.
Households, kirana/wholesale traders, and workshops or institutional kitchens (depending on edible vs lubricant positioning) drive repeat offtake. This is a demand-shape typology for the sample line, not a market survey.
Steady year-round. Edible oils move year-round; agri-input crushers may feel harvest-linked supply more than consumer demand swings.
₹25,00,000 is the official PMEGP sample project cost shown for this idea. Your actual project cost may differ — treat this as a planning reference, not a quote.
Indicative PMEGP-style margin money rates on this site run up to 35% of project cost, depending on beneficiary category and rural vs urban area. This is not a guarantee of subsidy, sanction, or bank finance — verify current guidelines before applying.
City / region. Packaged oil often needs city/regional distribution; pure crush-and-local-sale can stay closer to the catchment.
No. FoundersOffice Idea Browser is an independent discovery and briefing tool — not affiliated with the Government of India, MSME, KVIC, DIC, or any bank. Nothing here is a sanction, loan offer, or guarantee of subsidy.
Idea-specific discussion points — not automatic disqualification
Environmental Clearances
Strict State Pollution Control Board (SPCB) norms apply due to the hazardous nature of used oil and chemical effluents.
Raw Material Sourcing
Consistent supply of used lubricant depends on tie-ups with garages and industrial units; pricing fluctuates with crude oil markets.
Waste Disposal
The process generates sludge and chemical waste that must be disposed of through authorized hazardous waste management agencies.
Energy Consumption
Vacuum distillation is energy-intensive; fuel costs for boilers/heaters significantly impact operational overheads.
Beyond PMEGP — schemes that may complement this project's sector or cost band.
Helps MSMEs upgrade quality, technology, and design, and become more competitive, through ZED certification, Lean manufacturing, and innovation/IPR support.
Equity/quasi-equity growth capital for viable MSMEs, deployed through daughter funds managed by NSIC Venture Capital Fund Ltd.
Support for SC/ST entrepreneurs — capital subsidy, capacity building, and public-procurement access.
For SC/ST entrepreneurs
VIII pass likely required as manufacturing project exceeds ₹10L; verify current PMEGP guidelines.
Subsidy split, EMI, and an indicative breakeven — adjust the assumptions to your own numbers.
Subsidy split, EMI, and an indicative breakeven — for discussion only (indicative-2026-08-01).
Margin money (25%)
₹6,25,000
Own contribution (10%)
₹2,50,000
Bank credit (illustrative)
₹16,25,000
Estimated EMI
₹26,977/mo
Breakeven
Not reached within 7 yrs
Indicative DSCR
0.77
Indicative only — actual bank DSCR calculations add back depreciation; treat this as a sense-check, not a bank figure. Verify with your CA/bank before applying.
Sample profile sourced from the PMEGP scheme (Ministry of MSME) · verify against the official PDF before filing.
The project is viable in industrial clusters where there is a high density of automotive workshops and manufacturing plants providing both raw material and end-market demand.
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