Industry Overview
Grease is a lubricant that helps in reducing friction between mechanical components in industrial machinery, vehicles, and equipment. The global demand for grease is closely linked to the automotive, manufacturing, and heavy industries. As industrialization and infrastructure development continue to expand, the need for high-quality lubricants like grease increases. Grease manufacturing is a well-established industry that shows steady growth due to increased demand in multiple sectors.
Scalability and Profitability
Grease production can be scaled by expanding the product range to include specialty greases for different applications, such as high-temperature or food-grade lubricants.
- Profitability: Profit margins in grease manufacturing range from 10–15%, and higher margins can be achieved by developing niche products or by leveraging economies of scale.
Subsidy Opportunities
Relevant Schemes and Departments:
- Department of Heavy Industries:
- Offers incentives for manufacturers in the automotive and machinery sectors that require large amounts of grease.
- MSME:
- CLCSS and TUFS provide subsidies for technology upgrades and for buying specialized grease production equipment.
Eligibility Criteria for Subsidy
- Must be registered as an MSME or a large-scale industry.
- The business should adhere to environmental safety standards regarding waste disposal and chemical handling.
Project Cost and Subsidy Details
- Setup Cost: ₹20–40 lakhs, depending on the scale and machinery involved.
- Subsidy Amount: 15–20% of the capital investment, particularly for the automation of manufacturing processes.
How to Apply for Grants
Applications for subsidies can be made via the
MSME Portal and local industrial development authorities.
Future Potential
With the increase in manufacturing and automotive production, the grease manufacturing industry holds significant potential for growth. The shift towards electric vehicles may also increase demand for high-performance lubricants.
To apply for the Food Processing Scheme, the following mandatory documents are required for new enterprises (Individuals/Firms) as outlined in the manual
1. PAN Card of concerned/all promoters.
2.Aadhaar Copy & Photo of all promoters/guarantors.
3. Address Proof: Any of the Officially Valid Documents (OVD) such as:
o Utility bill (not more than two months old) from any service provider (Electricity, telephone, post-paid mobile phone, piped gas, water bill).
o Property or Municipal tax paid receipt.
o Ration Card (Individual).
o Driving Licence
o Aadhaar Card.
o Voter ID Card.
4. Details of the site where the unit is to be established, including whether it is owned/rented/leased, along with proof (Lease/rent agreement should be for more than the loan repayment period).
5. Photocopy of Bank
6. Estimates and Quotation of all capital expenditure and machinery and equipment to be purchased. Statement/Bank Passbook for the last 6 months.
For existing enterprises with a turnover of less than 1 crore, similar documents are required, including PAN Card, Aadhaar, address proof, and site details.
If you need more specific information or additional documents, please let me know!
