Shellac & Lac-Based Products

Investing in the Future of Natural Materials Shellac & Lac-Based Products 

India leads the world in Lac and now is the time to lead in value-added products to transform this natural legacy into global leadership. India already dominates raw material – now is the time to scale value addition. The true worth of Lac- Market potential USD 465 mn of which USD 80 mn contributed through value-added products (Domestic Market – 30%, Export – 70%). Global push for sustainable and clean-label products provides the first-mover advantage in global natural product markets. There are ample scopes for export expansion and import substitution. Ready domestic ecosystem for raw material and skilled labor, untapped value chain from resin to high-end applications and high-margin niche segment with low competition provides strong alignment with clean label, circular economy and organic trends universally.

Why Shellac & Lac 

  • 100% Natural, Renewable & Biodegradable
  • Approved for Food (E904), Pharma, Cosmetic uses
  • India holds a global monopoly in production & export
  • Backed by traditional knowledge & modern applications

 

Strategic Business Drivers 

  • Rising demand for natural alternatives to synthetic chemicals
  • Expanding Global Demand for Bio-based, eco-friendly materials across sectors
  • ESG-aligned raw material sourcing
  • Low raw material cost, high value-add potential
  • Supports tribal and forest economies
  • Strong demand from Europe, USA, Japan, Southeast Asia

 

Diverse Industry Applications 

Shellac (E904) widely used in:

  • Fruit Coating: Approved coating agent, Preserves freshness, reduces moisture loss
  • Pharmaceuticals & Nutraceuticals: Tablet coatings, time-release agents
  • Food industry: Confectionery glazing, protective films
  • Cosmetics & Personal Care – Nail polish, hair sprays, mascaras
  • Biodegradable Packaging – Alternative to synthetic plastics
  • Surface Coatings & Polish – Wood finishes, French polish
  • Electronics – Insulators, moisture barriers

 

High-Value Emerging Opportunity 

Ambrettolide from Lac

  • A high-value macrocyclic musk compound
  • Used in luxury perfumery and fragrances
  • Natural alternative to synthetic musks (high demand in EU & Japan)
  • Untapped potential for high-margin export markets and Import substitution opportunity
  • Integration with specialized extraction and purification units

 

Business Opportunities at a Glance 

Opportunity Area  Description 
Shellac Processing Units High-purity grades for food, pharma, cosmetic
E904 Fruit Coating Solutions Shelf-life enhancers for fresh produce
Ambrettolide Manufacturing Natural musk for perfumery export market
Biodegradable Packaging Shellac-based films and materials
Sustainable Lac Cultivation Backward integration with tribal communities
Export-Oriented Infrastructure Certification, branding, cold chain

 

Investment Opportunities 

  • Modern Processing Units – Food, pharma, cosmetic-grade shellac
  • Fruit Coating Lines – Ready-to-use formulations for E904 application
  • Ambrettolide Production – R&D and commercial-scale manufacturing
  • Biodegradable Films & Packaging – Shellac-based plastic alternatives
  • Sustainable Lac Cultivation – Insect rearing, host tree plantations
  • Export Infrastructure – Branding, certification, global outreach

 

Government Support and Export Ecosystem

  • Nodal facilitation agency – SHELLAC and Forest Products Export Promotion Council
  • Export facilitation & market development support through nodal agency
  • Policy alignment with Bioeconomy, Nutrieconomy, Tribal Upliftment
  • Strategic priority under India’s Bio-economy & Nutri-economy Missions
  • Strategic alignment with National Missions

 

Inclusive & Sustainable Impact 

  • Supports over 100,000 tribal families
  • Promotes forest-based economy & biodiversity
  • Value-addition strengthens rural entrepreneurship
  • Aligned with India’s Green and Circular Economy Vision

 

Bengal’s Natural Monopoly 

  • Bengal is the world’s largest producer and exporter of shellac
  • Derived from the lac insect (Kerria lacca) on forest trees
  • Eco-friendly, biodegradable, non-toxic natural resin
  • Deeply rooted in tribal livelihoods and traditional practices

 

Let’s Build the Future Together 

  • Partnership to transform this natural legacy into global leadership
  • Tap into global trends, domestic strengths, and social impact
  • Lead the transformation from forest to formulation
  • Feasibility collaborations
  • Market access
  • Technology partnerships
  • Investor facilitation