Manufacturing business ideas in India
Initially, starting a large business is fine. If you have sufficient capital to Implement your own manufacturing business ideas.
here I have researched 25 manufacturing business ideas in India with low investment. Let’s take a look.
However, most of the businesses in India started as small-scale manufacturers and expanded over time in their industry.
All of us can’t afford 10-20 lakh rupees to start a business on an initial level. That’s why we can start our own manufacturing business ideas with as low capital as possible.
Generally, Low capital businesses need capital up to Rs. 100,000 or lesser.
Indeed, products made by small investment manufacturing business units are in greater demand since product quality is often higher and prices rather competitive in the industry.
Medium scale manufacturing business ideas in India.
1: Manufacturing Herbal Hair Oil
A lot of brands of herbal hair oils are working in the industry. They also provide solutions on hair loss, hair fall, and healthy hair.
Herbal hair oil manufacturing is a very relevant medium scale manufacturing business idea in India.
Well, we all know. everybody wants to keep their hair healthy.
We can see the products listed on amazon of herbal hair oil. here is a product listed on amazon. see below in picture.
Herbal hair oil is best to treat many hair-related issues like hair fall, hair growth, dandruff, hair graying.
Herbal oil includes many herbal ingredients like Amla, Bahera, and Harar dry fruits, Brahmi plants, Aloe Vera juice, Mehendi leaves, lemon oil, almond oil, olive oil, etc.
Two or more ingredients are mixed with base oils.
You can use many oils as base oils such as coconut, sesame, or castor oils to produce different types of herbal hair oils from it.
These are the benefits of herbal hair oil. because it is made up of natural ingredients.
Now, let see what have they described on amazon about herbal oil.
As you see in above picture, Amazon seller says, the product they have listed of herbal hair oil.
It is made up of age old findings like Sushruta, Charaka, Bhrigu and many more.
Do you know? India has a population of over 140 crores and almost all families use hair oil on a daily basis.
We can see that market demand is much higher than we thought.
People are spending more money to buy personal care and luxurious commodities. Tv channels also show lots of ads on tv.
Women are the main customers of herbal hair oil. Usually, they have long hair. As we see, we have a big opportunity to manufacture herbal hair oil.
Topics you may like to read:
2: Papad & Sago Fritters
Papad and sago fritters also include in the list of most profitable small scale Manufacturing business ideas in India.
Papad and sago (sabudana) fritters are in demand all year round.
All you need to set up this small investment manufacturing business is a proper recipe, basic equipment, like a gas stove, utensils, and plastic sheets for drying.
Basic ingredients such as flour, sago, and spices. You might also need food-grade plastic wrappers and a sealing machine for the packaging of products.
Papad is a food product and commonly consumed commodity in all households and hotels, especially during festive seasons.
The market is controlled by local brands. You can create your own.
Papad is exporting also, and demand is also growing in other countries.
The major importing countries are the UK, USA, UAE, Singapore, Nigeria, Oman, Malaysia.
Establishing your strong dealer network in the market will definitely help you to get success in the papad-making industry.
You can start this FMCG business with moderate capital investment. This is a home-based business also. The area required for a papad manufacturing business is about 300 sq. meter.
You will need semi-automatic machinery for Papad making production.
- Electric Grinding Machine,
- Mixing Machine,
- Electric Papad Press Machine,
- Drying Trolley machine,
- Tank for Storing Water,
- Weighing Scale,
- and a Pouch Sealing Machine.
For larger commercial production, the best choice is a fully automated machine for papad making business.
Where can you sell your papad and fritters?
You can sell papads to General stores, Kiranam Stores, Wholesale Markets, Dealer Shops, Retailer Shops, Door to Door.
You will need a minimum of 20000 rs investment to start a papad manufacturing business with a semi-automatic machine.
3: Manufacturing Exotic soaps
India is a land of exotic herbs and spices that possess medicinal qualities.
This is a among the profitable medium scale manufacturing business ideas in India.
The beauty and personal care industry has been growing exponentially in the last five years.
People are becoming aware of the ingredients which are used to make personal care products.
That’s why many homemade soaps and including soaps and shampoos companies have gained attraction among the people
As a soapmaker, you’ll formulate soaps and perhaps other personal cleansing and beauty products according to your own recipes.
You will market your products with e-commerce, farmers markets, arts festivals, wholesale placement in spas and boutiques, and even door-to-door sales will increase your brand awareness among the people.
Making exotic bathing soaps can help to start a low investment manufacturing business with small-scale manufacturing business unit that can make a good return on investment.
A soap manufacturing business needs an investment of about Rs 5 lacs and can generate revenues of up to Rs.15 lacs annually with a profit of Rs.8 lacs.
4: Manufacturing Handmade chocolates
Everyone loves chocolate.
Manufacturing chocolates is fairly easy.
There is a great demand in the market because people always wish to try newer variants and exotic flavors of chocolate.
Chocolates also make ideal gifts during the festive season and special occasions.
You probably choose another Manufacturing business ideas in India. but this one is must to think.
let’s see what national association report says:
The National Association for the Specialty Food Trade says that specialty foods account for $50.3 billion in sales of retail stores and $12.7 billion in sales of restaurants. All of the sales are candy.
You’ll have to guard your recipe so someone doesn’t steal it from you. However, if your candy has a unique look, You can trademark that.
You’ll probably start by selling to your local market.
This will give you information about competitors you already have before you get too heavily invested in the handmade chocolate-making business.
You can take orders from cake and pastry shops to provide special varieties. There are several pastry shops that buy handmade chocolates. You can sell it to them.
Small scale manufacturing business ideas in India- investment 5- 10 thousand rs.
- The following are the simple steps for the manufacturing process of chocolate.
- Cleaning, Roasting, Shell Removal, Grounding Nibs, Separation of Cocoa Butter, Adding ingredients, Furthermore, Conching & Refining, Cooling, and Reheating, Storing temporarily, Shipping.
- You can start this business with low investment. Minimum 5 to 10 thousand rs is needed to start a handmade chocolate business in India.
5: Cookies and biscuits-Small scale manufacturing business ideas in India.
Cookies and biscuits is a good option for you to start a business. You know, people always seek new tastes and varieties.
Furthermore, many small manufacturers and bakeries are at loss because of big giant companies in the market.
They no longer produce cookies and biscuits because of high competition in the market.
However, you can start your business from your local area by targeting local chai points, or retailers.
Handmade chocolates are lovable. That’s why demand is also there for you.
To start this kind of profitable manufacturing ideas with low investment, You will need machinery.
Any automatic or semi-automatic biscuit manufacturing machine price would be in the range of between Rs 3 lakhs to Rs. 6 lakhs.
The secret of making excellent biscuits is COLD BUTTER. It should be Really cold.
Cut the butter into small pieces and stick it back in the fridge. Pull out only when it is ready.
Biscuits are made from flour. So what kind of flour to use. Cake flour will give you a lighter, fluffier biscuit.
Bake the biscuits for about 12 to 15 minutes at 450°F until they are golden brown.
Hence, small-scale manufacturing of traditional cookies and biscuits business you can open in your city.
6: Dairy business plan-Small scale manufacturing business in India.
We all eat milk bi-product in our meal. India is not only the largest consumer of milk in the world but also produces 50 – 60 million tonnes of milk every year!
That’s why the dairy farming business is rapidly growing low investment manufacturing business in today’s world.
Large-scale milk production plays an important role in building the country’s economy.
However, dairy farming needs high investment and a lot of planning.
You can manufacture cottage butter also, it is derived from churning buttermilk. It has immense health benefits.
You can earn around 2-3 Lakh per Month from the Dairy Farming business.
Animal husbandry is one of the most lucrative and demanding businesses in India and also across the globe.
Furthermore, Indians are large consumers of paneer- or milk casein, derived by splitting milk.
Traditional, homemade ghee or clarified butter, also has a great market in India.
A small-scale manufacturing business to produce cottage butter, paneer and ghee will surely succeed because of demand.
7: Manufacturing Incense sticks/ Agarbatti
Agarbatti manufacturing business ideas are rapidly growing all over India. it is easier to access raw material so you can start agarbatti manufacturing from your home also.
The agarbatti market in India is estimated to be Rs.3,500 crore annual turnover and growth. There is also a demand for Indian-made agarbattis in foreign countries.
Agarbatti manufacturing is one of the small-scale manufacturing businesses with low investment and high-profit margin. You can earn approximately 1 lac rs from this business.
Following steps Involved in Agarbatti Making business in India
- Get agarbatti making machines
- Get raw materials
- Select a proper location and install machinery
- Staff hiring and training
- Preparation of Mixture or Masala
- Load mixture and bamboo sticks into a machine
- Collect raw agarbatti
- Dry in sunlight or use a Dryer machine
- Add scent
- Packaging and supply
Raw agarbatti will give your profit of Rs15/kg. And scented agarbatti will give you a profit of Rs 25 – 30 per kg approx.
8: Candles & wax products manufacturing
candles are in great demand. there is a huge market for candles of all shapes and sizes.
Nowadays, we buy small candles for birthday celebrations or for providing light during power outages. Candles are also used for religious ceremonies and rituals.
Candles have been used as a light source for more than 5,000 years. Candles have become a symbol of celebration, romance, soothe the senses, ceremony, joy, and décor items.
Do you know? the first candle made by Ancient Egyptians by soaking the pithy core of reeds in melted animal fat.
The main components we use for candle manufacturing are wax, Satiric acid (saturated fatty acid), wicks, dyes to give shape to the candle, production machines, and packaging machines.
Here I have mentioned a list of raw materials. Go through this once.
- Paraffin wax: standard white-colored wax made from petroleum or oil shale
- Beeswax: natural wax produced by the honey bee
- Carnauba wax: wax made from leaves of the palm tree and also called Brazil wax and palm wax
- Bayberry wax: this wax is derived from the fruit
- Stearic acid: saturated fatty acid
- Wicks: braided cotton thread
Candle-making business is a low investment and high-profit business idea. You can start this business from your home also.
9: Candy and hard-boiled sugar confectionery
Candy and hardboiled sugar confectionery is a one of the new manufacturing business ideas.
There are quite a few large players in the Indian market, but small-scale manufacturers seem to dominate this low investment manufacturing business.
Machinery to make candy and hard-boiled sugar confectionery is readily available in the market and can be easily set up at any small manufacturing unit.
Ingredients in the candy are sugar, glucose syrup, approved food colors, and flavors on the Indian Railway network.
10: Soda & flavored drinks
The soda and flavored manufacturing business is also a great opportunity to start with. You know the biggest players in the market like coca-cola, sprite, etc.
Plain soda from large manufacturers costs Rs.10. while flavored soft drinks are priced around Rs.15 to Rs.20 each.
The beverage distributor and manufacturer reported net operating revenues for the year 2018, Which was nearly $31.9 billion.
As of July 9, 2019, the company’s market capitalization is just under $224 billion.
Types of soft drinks: bottled waters, carbonated water, juice, nectar, squash/syrup, still drinks, iced/ready-to-drink caffeine-containing beverages, sports drinks, and energy drinks.
Market potential of soda drinks: Nearly 200 nations consume sparkling soda with an annual consumption of more than 34 billion gallons.
Soft drinks are America’s favorite beverage, It represents 25% of the total beverage market worldwide.
11: Fruit pulp manufacturing
Lots of high-quality fruits are wasted in India. It could be the cost of millions of rupees. This is because we don’t have an advanced cold chain logistic system.
You can benefit by opening a small-scale manufacturing business producing fruit pulp.
large scale ice-cream manufacturers, sweet makers, restaurants, and star-rated hotels need a high-quality fruit pulp.
The demand for the pulp of seasonal fruits is high such as mango, sitafal pulp. This high-quality fruit pulp is mainly demanded from reputed ice-cream manufacturers and Indian sweet makers.
You can store the pulp of the fruits in specialized containers and preserve them for a long time.
This is only possible because of the fruit pulp processing business.
12: Dehydrated, frozen vegetables
India is known to waste large quantities of fresh produce vegetables.
High-quality vegetables that end up in trash daily. It can be put to good use, merely if they are dehydrated and frozen.
Here are some examples of dried vegetables like dried tomato, dehydrated onions, frozen green peas, and cut beans.
These types of vegetables are in great demand. The process of dehydrating vegetables is often more cost-effective than freezing.
You will have to open cold storage for that dried and frozen vegetables. Ultimately you are opening two businesses at one time.
This will help you to open doors to the large global market.
In cold storage, you can store vegetables and also can make exports to other countries as well as in India.
13: Indian bread (Chapati/ Paratha)
Almost every major city is witnessing single people- men and women. They converge on these cities, towns for employment.
Some people live in such accommodations that do not permit cooking. Or we can say, they do not have too much time for cooking.
Nowadays, there is another trend in housewives. This is a home-based low investment manufacturing business idea in India. They can work from home and can earn an extra good income.
Most of the restaurants also need Indian bread/ chapati suppliers in their local town.
A growing number of chapati suppliers are now producing these Indian bread, and selling them at economical rates.
This would be a great business opportunity for housewives. You can earn 25000-30000 rs per month from this business.
14: Paper bags and envelopes manufacturing–small investment manufacturing business
Many governments have ban plastic bags worldwide. They pollute the environment. Now people are less using plastic.
This is due to growing awareness of preserve our environment.
Paper bags manufacturing business ideas in India can be a high-return business idea.
This will also help to preserve the environment while making money.
Gift packaging, Food packaging, Shopping, Medical use, Jewelry packaging, General purposes, and Advertising.
These are the areas where paper bags are mostly used.
Fully automatic paper bag making machine price is around 5 – 8 Lakhs INR. Price depends on the production capacity of the machine.
This machine can produce 15000 pieces/hour. You can start this business with small scale manufacturing units.
You can make 1lakh rupees return approximately from paper bag making machine.
Paper bag making raw material.
Here are a list of some raw material of paper bag making which is easily available in India. Paper rolls, Printing chemicals, ink, Gums, Strings, Polymeter Stereo, Flexo Color.
Paper bag-making machinery.
Here is the list of some machinery of paper bag manufacturing
Stereo design roller, Flat forming dye, 3 horsepower motor for the main drive, Double color or four color flexo printing unit attachment.
15: Costume/ imitation jewelry manufacturing
Costume and imitation jewelry has never been out of fashion. Jewelry is a part of Indian culture. There is a huge demand for it in the Indian market.
Teenage girls are becoming increasingly fashion conscious, they always look for matching accessories.
India’s artificial or imitation jewelry business is one of the largest in the world. The report says It contributes to GDP at 5.9 percent in the Indian economy.
Because of online stores, fashion garments are inexpensive. Women’s and girls constantly searching for matching jewelry.
You can fulfill these needs by staying in touch with the latest fashion trends.
Only a Few people can afford to buy jewelry made of precious metals such as platinum, gold. Hence, you can manufacture such costumes and imitation jewelry from your home.
You can start to wholesale also. All you need to buy the stock from the manufacturers at a wholesale rate. Then you can sell artificial jewelry to different retailers.
For manufacturing imitation jewelry, here are some methods to manufacture. Soldering
Silver/goldsmithing, Casting, 3D printing, Laser cutting, Leather tooling, Weaving, Gemstone set.
How much does it cost to start a jewelry business?
You will have to invest 50000 rs to 1 lakh rs to manufacture a jewelry-making business. Cost is relative to the complexity of the production model you choose.
You can start a business with a couple of thousands of rupees to cover basic supplies.
Costume / Imitation jewelry business profit.
Costume and imitation jewelry-making businesses can generate almost 50000 thousand rupees monthly. A decent amount of profit can be generated only by well-established businesses.
16: Disposable plates, cups, and crockery-small investment manufacturing business
In Parties, celebrations, and in weddings we use disposable crockery items like cups, forks, and spoons for guests, invitees, or participants.
Disposable items are inexpensive, lightweight, and disposable. it saves them the bother of washing.
you can start the paper plate manufacturing business ideas in India with approximately 500 sq ft area.
Street-side food vendors also use paper plates and cups. It is beneficial for you to open a small-scale manufacturing business of disposable crockery
For the paper plate manufacturing business, you will need machines. Here is it.
Paper Cutting Machine, Double Die Press Machine, Packaging Machine, Weight Scale.
You will need some capital in this home manufacturing ideas.
- Disposable plates, cups, and crockery business investment.
- Automatic disposal glass or plates making machine- 6-7 Lakhs each.
- Location Rent- Rs 50,000 – 1 Lakh
- License & Paperwork- Rs 50,000/-
- Electricity & Water supply- Rs 50,000/-
- Labour & Wages- 1 Lakh.
Paper plates manufacturing business profit.
This low investment manufacturing business idea in India of paper plates business can generate a profit of 50000-1 lakh rs per month.
Including all the expenses. You can start this business with small scale manufacturing units this will help you to gain profit margin.
17: Concrete blocks manufacturing business
To start manufacturing business in India, concrete blocks manufacturing business is a best one.
India is witnessing a construction boom. both- to civil construction including residential buildings to large infrastructural projects.
Reddish-brown bricks are being fast replaced by concrete blocks of various types. Reddish bricks are traditional now.
Builders are constantly seeking reliable suppliers of ready-made concrete blocks.
The demand is so high, that builders are willing to pay premiums to concrete blocks manufacturer.
Investment required for small-scale manufacturing business of concrete blocks of various sizes is expensive and returns are assured and high.
What are AAC blocks?
AAC blocks are lightweight. It is called an Aerated Autoclave Concrete Block.
It is manufactured through a reaction of aluminum powder and a proportionate blend of lime, cement, and fly ash or sand. It can be used for more than 80 years.
here are some factors that affect the total price of the concrete block-making machine.
- The capacity of the machine
- The automation level of the machine
- The equipment that you choose to come with the machine.
18: Mangalore Tiles manufacturing business
Mangalore Tiles manufacturing as they are called are not made only in that coastal city of India’s southern state, Karnataka.
They are now made in various parts of the Indian sub-continent.
While those made in and around Mangalore are made of locally available clay, makers elsewhere use somewhat similar material.
Mangalore Tiles are used mainly to impart a decorative look to bungalows and buildings.
There is a huge export market for Mangalore Tiles from India. Mangalore Tiles are made by small-scale manufacturing businesses.
You will need some space and the required equipment as well as proper raw material.
you can open a Mangalore Tile manufacturing business in India. Ensure about raw materials.
Raw materials should be easily available to your manufacturing unit. Making Mangalore Tiles has been changed some traditional techniques.
A tiles wholesale business also lucrative to start.
It requires a huge investment, you need to invest a minimum of 40 lakhs to 75 lakhs rupees in the tiles wholesale business.
It depends on how much you purchase wholesale. One truckload of tiles will cost you around 8 to 10 lakhs.
Once the raw materials are processed, the very first steps take place to obtain the finished product.
These steps include batching, mixing and grinding, spray-drying, forming, drying, glazing, and firing. You will need some automated equipment.
19: Handbags, wallets, and purses manufacturing business plan
Handbags, wallets, and purses are part of our daily life. we rarely leave your home without either of these.
However, a very large market exists for unbranded handbags, wallets, and purses. Almost everyone is tempted to buy a new one.
There is a huge demand for handbag manufacturing business plans.
A small-scale manufacturing business that can easily makes these essential items for women and men.
All you need is raw material and some area where you have easy access to raw material and required manpower.
Here, skilled manpower is essential. In this home manufacturing ideas you will need some investment to start.
Europe and Asia account for a large share of handbag and accessories manufacturing revenue. Accessories made in Europe are seen as high-quality luxury products and with a higher price in the global handbag market.
20: Bedsheet and blankets manufacturing
India is known for manufacturing high-quality bed sheets and blankets. Solapur in Maharashtra and Davangere in Karnataka.
These are the names of high-quality bed sheets made by factories.
These locations are known more for their tradition of manufacturing bed sheets and blankets..
Manufacturing this type of product of bedroom essentials is easy. If you have skilled manpower.
The market is huge and ever-growing. You can export your high-quality bed-sheet to other countries. You have a great business opportunity in this manufacturing business in India.
India has a huge potential in the textile industry. Now lots of businesses are going online. Your business can reach global boundaries.
We all know, The bedsheets, pillow covers are the most sellable products. The demand is rising for both middle and upper-class families.
There is an upsurge in the rural textile industries due to the high demand in bigger cities and foreign countries. People are now spending more on higher living with better quality.
- Machineries required for textile manufacturing. Here is a list below.
- Foot-operated stitching machine
- Double-needle stitching machine having the motor
- Flatlock stitching machine having accessories
- Embroidery machine, etc
You can start bedsheets and blanket making business with small scale manufacturing units.
21: Spice powders manufacturing – home manufacturing business ideas
There are giant players in the Indian market. However, they have one drawback.
They do not take into consideration local or ethnic tastes. That’s why you can success in this low investment manufacturing business of spice powder.
their spice powders are somewhat generic in nature.
Consumption of spices in Indian is massive. hence the market is growing with 40000 crores annually.
You can see the potential in the spice business which surely gives you good returns with low investment, then any individual can start a business even a home-based spice-making business is turn out profitable.
In this home manufacturing ideas you will need some investment.
- You need to invest Rs 50,000 to 1 lac
- Income of spice powder-making business. (if selling 100 kg per day with a profit margin of 60% per kg ) rs 60,000 to 1.5 lac per month
- A profit margin of business around 50% to 70%
- The area you need is home or any place, you can start this business. or at least(min 250 sq ft)
- You can hire 1 or 2 employees at the initial level of business.
The raw material you required for spice powder making business. Here is a list.
- Corrugated Cartons
- Fennel Seeds
- Methi Leaves
- Mixed Powder
- Permitted Food Color And Preservative
- Poppy Seeds
- Packaging Materials Including PET, MET-PET, PP, PPFP
22: Medical requirements
We know there is a huge market in India or abroad, for medical requirements.
These include surgical gloves, gauze, cotton swabs, and similar paraphernalia which are used at clinics and surgery rooms.
This type of material in India is provided by small-scale manufacturing units.
You will have to get a license from the Food and Drug Administration to manufacture medical requirements.
They will give you a license only when your product meets the prescribed standards. It should be safe for use at clinics and hospitals.
Interestingly, a lot of cotton products including earbuds and cotton balls are also used for cosmetic purposes. You can consider this a business plan.
You can fill tenders with hospitals and the government for the supply of these products.
23: Aluminum and fiber-glass doors, windows
Wood has become an expensive commodity. That’s why making wooden frames for windows is costly.
This is most profitable manufacturing business in India.
People prefer fiberglass doors for use in bathrooms and toilets. They have a longer life and they are water-resistant.
Aluminum doors cost you less compared to wood doors.
Fabricating aluminum frames for windows and making fiber-glass doors of various sizes is a simple small-scale manufacturing business to set up in your area. This business has a high demand.
The manufacturing unit does not require large premises. You can offer ready-made solutions to your customers.
Here I have listed equipment and raw material for aluminum manufacturing.
- Book Type HandRail 100 mm Size
- Chemical For Anodizing
- Flat 50 mm X 1.5 mm Thick
- Glass Sheet/ Board 3 mm/4.5 mm
- Handle Section For Doors
- 112 mm x50 mm Section
- 25 mm Sq. Pipe
- 50 mm X 25 mm Section
- 63 mm X 38 mm Section
- Material like rubber, screw, bolt, locks, plastic or wooden plug, hinge, etc you will need for your aluminum door manufacturing.
financing your small scale unit
You can get a loan to set up a small manufacturing unit. Here are some schemes that will help you to establish your business.
The Micro Units Development and Refinance Agency (MUDRA), commonly called Mudra Bank, established by the Indian government, offers some assistance.
Mudra Bank is a scheme offered by the government through national banks. To avail of a Mudra Bank loan, you will require a comprehensive project report.