What is a empty gelatin capsules project report?
An empty gelatin capsules project report is a detailed project report (DPR) for a plant that dip moulds pharmaceutical gelatin into two-piece hard capsule shells. It sets out the process, machinery, raw materials, drug licence and GMP needs, project cost, means of finance, five-year projections, DSCR and break-even that investors and banks check.
Promoters use it to size the plant and raise a term loan; pharma companies use it to judge backward integration into their own shell supply.
Also known as: empty hard gelatin capsules project report, project report on empty gelatin capsules, capsule shell manufacturing project report, empty gelatin capsules business plan.
Empty gelatin capsules manufacturing plant cost and economics
Our sample report models a plant making 25,00,000 capsules per day, or 82,50,00,000 capsules a year at full capacity, over 330 working days. It starts at 60% utilisation and reaches 80% in Year 5, selling shells at ₹0.09 each before GST.
| Land and site development | 25.10 |
|---|---|
| Building and civil works | 97.72 |
| Plant and machinery | 214.53 |
| Other fixed assets | 23.73 |
| Contingencies | 15.61 |
| Preliminary and pre-operative | 9.42 |
| Working capital margin | 16.64 |
| Total | 402.75 |
| Promoter's contribution (25%) | 100.69 |
|---|---|
| Term loan from bank (75%) | 302.06 |
| Cash credit limit (separate) | 49.90 |
| Total project cost | 402.75 |
Machinery is more than half of the project cost, so depreciation and loan repayment weigh heavily in the early years. DSCR (debt service coverage ratio) compares the cash a year generates with that year's loan instalments. Its lowest value in the sample is 1.50 in Year 2, the first full year of principal repayment.
Term loan at 10.5% with a 6-month moratorium and 54 monthly instalments. All figures are illustrative.
Empty gelatin capsules manufacturing process
Hard capsule shells are made by dip moulding on automatic machines that carry thousands of steel pins through dipping, drying and stripping in one continuous loop. Each machine makes caps on one side and bodies on the other, so the two halves meet at the joining station.
- Gelatin solution
Gelatin is dissolved in hot purified water to a solution of about 35–40%, held at 60–70°C, degassed under vacuum and coloured.
- Dipping
Lubricated stainless steel pins dip into the solution in a pan kept at about 45–55°C; solution viscosity sets the wall thickness.
- Spinning and drying
The pins rotate to spread the film evenly, then pass slowly through kilns with air at controlled humidity and temperature.
- Stripping and trimming
Dry caps and bodies are pulled off the pins and cut to exact length; part of the trimmings can be remelted.
- Joining
Each cap is pushed onto its body to a pre-locked position, tight enough to travel but easy for a filling machine to open.
- Sorting and printing
Camera or manual inspection removes dented, short or double-capped shells, and printers add a brand or code with edible ink.
- Testing and packing
Each batch is checked for moisture, weight and dimensions, then packed in sealed liners inside cartons.
Gelatin or HPMC: which capsule shells should the plant make?
The first technology choice is the shell polymer. Gelatin is the established route and the one our sample report is costed on. HPMC (hydroxypropyl methylcellulose) shells serve buyers who want a non-animal capsule.
| Point | Gelatin shells | HPMC shells |
|---|---|---|
| Raw material | Pharmaceutical gelatin from bovine bone or skin, or pig skin | HPMC, a plant-derived cellulose polymer |
| How the film sets | Cools and gels on room-temperature pins | Needs heated pins or a gelling agent in the solution |
| Moisture in finished shells | About 13–16%; brittle if too dry, soft if too damp | Lower, which suits moisture-sensitive fills |
| Typical buyers | Most prescription and generic drug makers | Vegetarian supplements, herbal products, some export orders |
| Plant impact | Standard dip moulding lines | Line changes and different drying settings; higher raw material cost |
Plan the switch early: if HPMC is likely within a few years, ask machine suppliers whether the line can be converted and put that cost in the report.
Raw materials for empty hard gelatin capsules
Gelatin decides both cost and quality. Hard capsule shells need a high bloom strength gelatin, typically 200–250 bloom (a measure of gel firmness), so the film holds its shape on the pin. In our sample report raw materials are 42.1% of sales, and gelatin is 86% of that.
| Raw material | Share of cost | Year 3 (₹ lakh) |
|---|---|---|
| Pharmaceutical grade gelatin | 86% | 187.60 |
| Colours and titanium dioxide opacifier | 8% | 17.45 |
| Pin lubricant and process aids | 3% | 6.55 |
| Edible printing ink | 3% | 6.54 |
| Total | 100% | 218.14 |
Gelatin (heading 3503) is in the 5% GST schedule under Notification 9/2025-Integrated Tax (Rate) of 17 September 2025. Packing material is costed separately.
Machinery for an empty gelatin capsules plant
The dip moulding machine set is the largest item, and the air handling system that holds drying and storage rooms at steady humidity is the second largest. Both should be quoted together, because the supplier's drying settings decide the room conditions.
| Machine | What it does | Sample cost (₹ lakh) |
|---|---|---|
| Automatic hard capsule dip moulding machine set | Dips, dries, strips, trims and joins shells | 90.10 |
| Humidity and temperature controlled air handling system | Keeps drying and storage areas stable | 32.18 |
| Gelatin melting and feed tanks with vacuum degassing | Prepares bubble-free solution | 19.31 |
| Stainless steel pin bars and moulds | Set capsule size; one set per size | 17.16 |
| Capsule sorting and visual inspection machine | Rejects defective shells | 15.02 |
| Capsule printing machine | Prints brand or code on shells | 12.87 |
| Purified water generation system | Water for solution and cleaning | 10.73 |
| Chiller, boiler and compressed air | Process heating, cooling and air | 10.73 |
| Quality control laboratory equipment | Moisture, weight and dimension tests | 6.43 |
| Total plant and machinery | 214.53 | |
Costs are the sample report's estimates. Imported high-speed lines cost much more; get current quotations before you finalise.
Drug licence and GMP approvals for a capsule shell plant
Empty capsule makers are regulated like drug makers. Section 3(b) of the Drugs and Cosmetics Act, 1940 names empty gelatin capsules within the definition of a drug, and section 18 bars making them for sale without a licence.
| Drug manufacturing licence | From the State Licensing Authority (state drugs controller), granted after the built plant is inspected |
|---|---|
| Good manufacturing practices | Revised Schedule M. The extended deadline for MSME makers with turnover up to ₹250 crore ran to 31 December 2025, so a new plant must comply from the start |
| Business registration | Udyam (MSME) registration and GST registration |
| Pollution board consent | Consent to establish and to operate from the State Pollution Control Board; the category follows the state's list |
| Factory and fire | Factory licence where the worker threshold applies, and fire NOC where required |
| Buyer documents | Gelatin origin and safety certificates from your supplier; some buyers also ask for halal or kosher status |
Checked as of October 2026. Rules and timelines change, so confirm current requirements with your state drugs controller before you apply.
Who buys empty gelatin capsules?
Every capsule formulation plant needs a steady supply of shells in the sizes and colours of its products, from size 00 down to size 4. Size 0, for example, holds up to about 500 mg of fill. Buyers approve a shell supplier only after audits and trial runs on their own filling machines.
- Pharmaceutical formulation companies
- Contract and loan licence manufacturers
- Nutraceutical and vitamin supplement brands
- Ayurvedic and herbal medicine makers
- Veterinary medicine companies
- Exporters and capsule traders
Where a new plant wins: large shell makers favour long runs of standard colours. A plant that offers quick colour matching, small printed batches and short delivery times can win contract manufacturers and supplement brands first.
Mistakes that weaken an empty gelatin capsules project report
- Leaving out the humidity-controlled rooms
Shells crack or soften outside their 13–16% moisture band. In our sample, the air handling system is the second largest machine cost.
- One price for every size
Size 00 and size 4 shells use very different gelatin per piece and sell at different rates; revenue must follow the planned size mix.
- No allowance for trimming and sorting losses
Trimmings are only partly remelted and inspection rejects are lost, so gelatin use per saleable lakh of shells is higher than shell weight suggests.
- Ignoring the licence and approval lead time
The drug licence comes after inspection, and buyers then run their own trials. Interest during this period belongs in pre-operative cost.
- Short credit period in working capital
Pharma buyers expect credit; our sample allows 45 days. Without it, the cash credit limit comes out too small.
How NPCS helps you plan an empty gelatin capsules plant
- Capacity and size mixNumber of dip moulding lines, capsule sizes and colours to match your target buyers.
- Machinery and clean areaCompare Indian and imported lines and size the humidity-controlled rooms with them.
- Bank and investor reportProjections, DSCR, break-even and working capital in the format your lender asks for.
- Licence and GMP roadmapLayout and approvals list for the drug licence and revised Schedule M in your state.
NPCS's client list includes an assignment for empty gelatin capsules and 269 assignments across specialty chemicals. The NPCS project team, led by founder Ajay Kumar Gupta, has prepared project reports since 1994.
What's inside the empty gelatin capsules sample report
- Introduction
- Uses and applications
- Market potential
- Manufacturing process
- Raw materials
- Plant and machinery
- Land, building and utilities
- Manpower
- Licences and approvals
- Project cost and means of finance
- Working capital
- Projected profitability
- Cash flow statement
- Projected balance sheet
- Depreciation
- Term loan repayment
- Debt service coverage
- Break-even analysis
- Financial ratios
- Key assumptions
- Conclusion
- Monthly loan repayment schedule
19 pages, five-year projections, illustrative figures.
Open sample reportFree sample or a report for your project?
| What you get | Free sample | NPCS report for your project |
|---|---|---|
| Capacity and location | Typical unit | Your capacity, site and state |
| Figures | Illustrative | Built on current prices and quotations |
| Machinery suppliers and quotations | No | Yes |
| Market survey for your region | No | Yes |
| Bank or scheme format (PMEGP, term loan) | No | Yes |
| Use for a loan application | No | Yes |
Real NPCS empty gelatin capsules project reports
These are empty gelatin capsules project reports NPCS has prepared, with the plant capacity, total capital investment, rate of return and break-even worked out in each. Costs have moved since some were written, so we bring any of them up to date for your capacity and location.
| Project report | Plant capacity | Total investment | Rate of return | Break-even | Action |
|---|---|---|---|---|---|
| Empty Hard Gelatin Capsules | 2500 Th.Nos./ day | ₹21.49 crore | 28% | 49% | Get this report |
Figures as worked out in each NPCS report. Total investment includes plant and machinery, land and building, and working capital.
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Empty Gelatin Capsules project report: frequently asked questions
What is the cost of an empty gelatin capsules manufacturing plant in India?
Our sample report models a plant making 25,00,000 capsules per day at a total project cost of ₹402.75 lakh, with ₹214.53 lakh for plant and machinery. The real figure depends mainly on how many dip moulding lines you install, whether they are Indian or imported, and the size of the clean, humidity-controlled area. A project report prices these for your chosen capacity.
Do I need a drug licence to make empty gelatin capsules?
Yes. The Drugs and Cosmetics Act, 1940 counts empty gelatin capsules as a drug, because they are components of a drug, and section 18 bars manufacture for sale without a licence. The licence is issued by the State Licensing Authority after inspecting the built plant, which must follow the revised Schedule M good manufacturing practices.
What raw material is used to make empty hard gelatin capsules?
The main raw material is pharmaceutical grade gelatin, made from bovine bone or skin, or pig skin, with a high bloom strength suited to a rigid shell. Colours, titanium dioxide for opaque shells, a pin lubricant and printing ink make up the rest. In our sample report gelatin is 86% of raw material cost.
How are empty gelatin capsules made?
Stainless steel pins are dipped into a warm gelatin solution, rotated so the film spreads evenly, and dried slowly under controlled humidity. The dried caps and bodies are stripped off, trimmed to length and joined in a pre-locked position. They are then sorted, printed if needed, tested for moisture and dimensions, and packed in sealed liners.
Is empty gelatin capsule manufacturing profitable?
In our illustrative sample, the plant earns a 19% return on investment, breaks even at 38% of capacity and pays back in about 3.8 years. Real profit depends on gelatin prices, the size mix you sell, reject rates on the sorting line and whether buyers approve you quickly enough to fill the lines in the first two years.
Can one plant make both gelatin and vegetarian HPMC capsules?
Often yes, but not without changes. HPMC shells do not set by cooling the way gelatin does, so they need a different gelling method, pin temperature control and drying settings. Many plants start with gelatin and add HPMC later. The project report should state which shell type the cost and projections are based on.
Is the sample report free and can I use it for a loan?
The sample is free to view and download. It is an illustrative report that shows the format and depth of an NPCS report; its figures are representative and not taken from a real project, so it should not be submitted to a bank. For a loan, NPCS prepares a report for your own capacity, location and finance plan.
Sources and references
- The Drugs and Cosmetics Act, 1940 (text with amendments), sections 3(b) and 18PRS Legislative Research, checked Oct 2026
- Extension of timeline for implementing revised Schedule M for MSME manufacturersPharmaceuticals Export Promotion Council of India (Pharmexcil), checked Oct 2026
- Notification No. 9/2025-Integrated Tax (Rate), GST rate schedules for goodsCentral Board of Indirect Taxes and Customs, checked Oct 2026
The NPCS project team, led by Ajay Kumar Gupta
This page and its sample report are prepared and reviewed by the NPCS project team, which has written techno-economic feasibility studies and detailed project reports since 1994.
Ajay Kumar Gupta founded Niir Project Consultancy Services (NPCS) and leads the organisation. With 40 years of experience in MSME project consulting, he has built the team that has delivered more than 28,000 project reports for clients worldwide, helping entrepreneurs plan and finance profitable manufacturing businesses.
- Published
- Last updated
- Next review
- Oct 2027
- Reviewed by
- NPCS project team
This page is reviewed every 12 months, or sooner when scheme limits, GST rates, BIS rules or pollution categories change. The sample report is illustrative: its figures are generated from industry-typical ratios for a unit of this size, checked so every statement balances, and are not taken from any client project.