Start a Natural Kerria lacca Resin Processing Unit – Shellac, Dye & Biodegradable Coating Business

Kerria lacca (Lac) – Profitable Tribal-Based Business in Natural Resin, Cosmetics & Organic Products

Overview

Kerria lacca is a natural resin secreted by tiny insects that thrive on host trees like Kusum, Ber, and Palash, found abundantly in Bastar. It is one of the most important Non-Timber Forest Produce (NTFP) for tribal livelihoods. Shellac is used in paints, varnishes, food coatings, cosmetics, jewelry, handicrafts, pharmaceuticals, and organic agriculture.

With the global shift towards eco-friendly, biodegradable, and organic products, Lac-based businesses have high demand in export, natural product industries, and handicrafts.

Business Opportunities Using Shellac

1. Processed Stick Shellac Manufacturing
   Basic form of Shellac after scraping, washing, and drying
   Used by industries to make shellac, lac dye, varnishes, etc.

2. Seed Shellac Processing Unit
   Refined form of stick Kerria lacca for making shellac & high-quality lac products
   Used in wood finishes, food coatings & pharmaceuticals

3. Shellac Manufacturing Plant
   High-purity Kerria lacca flakes used in cosmetics, food glazing, wood polishing
   Different grades (handmade, machine-made)

4. Kerria lacca Dye Production Unit
   Natural red dye extracted from Kerria lacca resin
   Used in textiles, food coloring, handicrafts & cosmetics

5. Kerria lacca Bangles & Handicrafts Manufacturing
   Traditional Bastar Kerria lacca bangles, decorative items, jewelry making
   Premium demand in ethnic fashion & handicrafts export

6. Kerria lacca-based Organic Agriculture Products
   Lac wax used in organic pesticides & crop protection products

7. Kerria lacca-based Cosmetic Ingredients
   Used in natural lipsticks, nail polishes, and organic beauty products
   Eco-friendly, biodegradable alternatives to synthetic polymers

8. Kerria lacca Resin for Pharmaceutical Coatings
   Used in tablet coatings, capsule glazing in pharmaceutical industries

9. Kerria lacca Varnish & Wood Polish Manufacturing
   Eco-friendly varnish & polish for furniture, musical instruments

10. Kerria lacca Crust for Bio-compost & Soil Conditioner
    By-products of Kerria lacca used in organic farming inputs

Unit Setup Guide (Kerria lacca Processing Unit)

1. Raw Material Collection & Supply Chain
   Tie-ups with tribal communities for Kerria lacca cultivation & harvesting
   Promotion of scientific Kerria lacca cultivation on Kusum, Palash, Ber trees
   Training SHGs for sustainable harvesting & post-harvest handling

2. Primary Processing

• Scraping Kerria lacca from host trees

• Cleaning, crushing & washing

• Drying to obtain stick Kerria lacca

• Further processing to seed Kerria lacca & shellac

3. Machinery & Equipment

• Kerria lacca washing & filtering units

• Seed Kerria lacca refining machines

• Shellac processing & flaking machines

• Dye extraction units

• Bangle & handicraft making tools

• Packaging line for retail & bulk orders

4. Land & Unit Setup Offer
   Assistance in providing land in Bastar for Kerria lacca processing unit
   Support for establishing Tribal-SHG linked production clusters

5. By-Product Utilization

• Kerria lacca wax for cosmetics & bio-pesticides

• Kerria lacca crust for compost & soil amendments

6. Packaging & Branding
   Export-compliant, eco-friendly packaging
   Special branding as “Bastar Tribal Kerria lacca Products”

Export Potential

• Europe, USA, Japan & Southeast Asia: High demand for shellac, Kerria lacca dye, and natural varnish

• Global Organic Product Industry: Kerria lacca as an alternative to synthetic coatings

• Handicrafts & Ethnic Jewelry Market: Kerria lacca bangles & decorative items

• Export under HS Code 130190 (Kerria lacca & Natural Resins)

Certifications like USDA Organic, ECOCERT, REACH compliance increase international acceptance

Tribal Livelihood & SHG Model

Kerria lacca cultivation & processing is a primary source of income for Bastar tribals
Formation of SHGs for lac cultivation, harvesting & handicrafts making
Fair Trade & Livelihood Promotion through value-added lac products

Required Certifications & Licenses

• FSSAI License (for edible coatings & Kerria lacca-based food products)

• MSME Udyam Registration

• Organic Certification (India Organic, USDA Organic)

• REACH Compliance (for export to Europe)

• Handicrafts Export Promotion Council (EPCH) registration

• Pollution Control NOC (for processing units)

• APEDA Registration (for export facilitation)

Marketing & Global Selling Strategy

• Position Kerria lacca as “Eco-friendly Natural Resin from Tribal Bastar”

• Partner with cosmetics, food coating, and wood polish companies

• B2B export of processed shel Kerria lacca, seed Kerria lacca, and Kerria lacca dye

• Retail sales of Kerria lacca bangles & handicrafts on eCommerce & export platforms

• Focus on “Biodegradable, Organic, Sustainable Product” messaging

• Target global brands replacing plastic-based coatings with Kerria lacca

Final Business Advantage

Kerria lacca is a sustainable, high-margin product with applications in multiple industries (cosmetics, pharmaceuticals, handicrafts, agriculture).
With tribal integration, it becomes a social impact business model with huge domestic & global market potential.

Optional Bonus Section

• Explore making biodegradable Kerria lacca-based films & coatings as plastic alternatives

• Collaborate with global cosmetic brands for natural shellac formulations

• Develop Bastar Lac Artifacts & Premium Bangle Collections for export gifting segment

Land Availability & Project Support:

"We offer complete support for your project, including ready-to-allocate land and comprehensive assistance at every stage — from setup to successful operations."

📞 Interested? Let’s Build This Together.

👉 Contact for Project Reports, Land Allocation & Turnkey Setup Support.