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Owning a business gives you the independence and freedom to be your boss and establish your empire from scratch. In India, the startup wave that started in 2014 has been ebbing its way back to the startup ecosystem.
The government has been emphasizing the facility of business and inspiring individuals to begin their own business through their luring Startup India Scheme & Stand Up India Scheme. Here are some effective 25 small scale manufacturing business ideas in India that can be implemented to commence their entrepreneurial journey.
The definition of the best business in India is extremely subjective and depends on plenty of underlying conditions of the market, demography, and demand.
For instance, a photography studio will flourish in a city like Mumbai and Delhi, where models are always trying to find photographers to make portfolios. However, having a studio in a village might only have a limited crowd coming to you.
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1. Manufacturing of Facemasks
As you know due to the coronavirus the demand for facemasks has increased. Manufacturing of facemask is an easy, highly demanding product and a very profitable business in this pandemic.
You can easily make this product at home. Initial investment is also very low but the income is very high due to the high demand for the product in the market. If you are already into sewing or tailoring then this is something you must not miss out on.
Not just in India, almost everyone across the world is wearing facemasks due to the increasing number of cases of COVID-19. This small manufacturing business idea is highly recommended.
2. Manufacturing Herbal Hair Oil
The problems of hair loss, reduced hair thickness, dry scalp premature baldness etc. have become a common concern of youngsters and middle-aged people, due to which demand for herbal hair oils has increased in the market. This small manufacturing business is also very profitable.
Admittedly, tons of brands of herbal hair oils that promise near-miracle cures for problems like hair loss, hair fall and healthy hair are available in the market, but they haven’t truly proved to be effective.
If you can come up with an ayurvedic or herbal formula that is effective, then you’ll be unstoppable in this business.
This business can be set up at home and requires less investment.
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3. Plastic tablecloth and table mats
Restaurants are dispensing with regular fabric tablecloths and table mats. The main reason is washing and maintaining them is time-consuming and laborious.
Instead, they believe disposable plastic sheets decorated with floral or other designs to be used as tablecloths. Plastic table mats are trendy and easy to clean, a mere wipe or wash in soap water is sufficient.
Plastic tablecloths and table mats are in high demand for restaurants. This makes their manufacture a very lucrative business. You can consider opening a small-scale manufacturing business to provide these table accessories.
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4. Bed sheet and blanket manufacturing
There are several locations in India known for manufacturing top-quality bed sheets and blankets. These include Solapur in Maharashtra and Davangere in Karnataka.
However, these locations are known more for their tradition of producing bed sheets and blankets. The demand for top-quality bed sheets and blankets, especially those made from cotton, continues to stay high. Manufacturing these bedroom essentials is fairly easy provided you’ve got skilled manpower and the required looms.
Setting up a small-scale manufacturing business that produces bed sheets, blankets and also pillow cases, is fairly inexpensive. The market is big and ever-growing.
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5. Disposable plates, cups and crockery
Parties, celebrations and picnics are round-the-year events. Nowadays, almost no host or organizers bothers to supply ceramic, melamine or metal plates, cups, forks and spoons to guests, invitees or participants.
Instead, they depend on food-grade plastic and Styrofoam plates and cups, forks, spoons and knives for guests to relish their food.
Understandably, since they’re inexpensive, lightweight and disposable. Meaning, it saves them the bother of washing. Also, paper plates and cups are common nowadays.
In the streets, food vendors also use paper plates and cups. Keeping in mind this heavy reliance upon disposable plates, cups and plastic crockery, you can also open a small-scale manufacturing business producing these products. The market is large and everyone can get a slice of the pie.
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6. Paper bags and envelopes manufacturing
Undoubtedly, recycling is fast gaining momentum. This is because of growing awareness of the necessity to preserve our surroundings.
You can also help in preserving the environment while making money by opening a small-scale manufacturing business that creates paper bags and envelopes.
Since this is a manpower-intensive small-scale business, you’ll also play a key role in providing employment. Generally, paper bags are made from discarded newspapers and similar materials.
These disposable bags and envelopes are highly used in supermarkets, pharmacies and other retailers. Especially, since they cost less and impart an excellent impression about the retailer being environmentally conscious.
The raw material you would like is available in the market and equipment like cutters is inexpensive.
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7. Candles & wax products manufacturing
In India, there is not only a huge crisis of electricity and load shedding taking place in most of the urban and rural areas, but also perfumed candles are a trend for decoration and thus demand for candles is high.
Understandably, there’s a large marketplace for candles of all shapes and sizes.
Nowadays, one can purchase small candles used on birthday cakes to jumbo jumbo-sized ones used for providing light during power outages. Candles are used for religious ceremonies and rituals.
Additionally, a large marketplace for other wax products for offering at churches and other religious shrines or for decorative purposes also exists.
Making candles and wax products is fairly easy and features a ready market across the country. This makes candle and wax products an excellent small-scale industry idea.
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8. Soda & flavoured drinks
A great example of a small-scale manufacturing business of soda of all types- 6plain and flavoured is often seen within the state of Goa.
For just Rs.5, you’ll buy a 300ml glass bottle of plain soda while orange, lemon, strawberry and other flavoured variants cost Rs.7 each.
Plain soda as compared to large manufacturers costs Rs.10 and flavored soft drinks are priced around Rs.15 to 20.
Interestingly, there are over twenty-four small-scale soda manufacturers in Goa but each of them features a justifiable share of the business. This is because they have been doing business for decades.
Furthermore, they’re licensed manufacturers. Admittedly, there are large players within the market but the Goa example aptly reveals there’s scope for small-scale manufacture too.
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9. Indian bread (Chapati / Paratha)
Almost every major city or industrial zone is witnessing an unchecked influx of single people- men and ladies. They converge on these cities and towns for employment.
Consequently, they’re forced to live in accommodations that don’t permit cooking or lack of time and inclination to make their meals.
Nowadays, people need to earn extra money to meet their expenses. Chapatis, roti, naan and parathas are common to the Indian diet and most meals are incomplete without these kinds of bread.
Machines to knead dough and bake these breads are available at fairly reasonable prices.
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10. Cottage butter, paneer and ghee
Nowadays, we are all familiar with salted butter manufactured by large companies. Of course, some types of unsalted butter are also available.
There are not any manufacturers of cottage butter, as it is named. Cottage butter is often described as that derived from churning buttermilk. It has huge health benefits.
Furthermore, Indians are large consumers of paneer derived from splitting milk. Traditional, homemade ghee or butter, has a great market in India.
With milk- both from cows and buffalos in abundant supply, a small-scale manufacturing business of cottage butter, paneer and ghee is a profitable business.
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11. Manufacturing Cookies and biscuits
Small-scale manufacturers of cookies and biscuits are extremely lucrative. Understandably, people search for new tastes and varieties than those offered by large companies.
Furthermore, several smaller manufacturers and bakeries no longer produce cookies and biscuits because of their inability to deal with stiff competition from giant companies.
Hence, there exists a vacuum in the marketplace for cookies and biscuits that are made with traditional recipes and offer a taste of yesteryears.
Hence, small-scale manufacturing of traditional cookies and biscuits is a great and profitable business to do.
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12. Manufacturing handmade chocolates
Almost everyone loves to eat chocolate. Young or old, almost everyone loves them. Manufacturing chocolates is fairly easy. Moreover, chocolates have a ready market since people always wish to taste new variants and exotic flavours.
Many places in the country are well-known for selling homemade chocolates. The two best examples are Coorg in Karnataka and Ooty in Tamil Nadu, both of which are major tourist attractions.
You can let your culinary imagination run wild and make chocolates with the flavours of any spice or fruit. Chocolates can be given as gifts during festive seasons and many special occasions.
A variety of orders can be taken from several pastry shops that buy handmade chocolates from small-scale industries.
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13. Aluminum and fibre-glass doors, windows
Nowadays, woodwork has become an expensive thing to do. Furthermore, decorating windows with wooden frames is costly.
Simultaneously, most people prefer fibreglass doors to be used in bathrooms and toilets since they’re waterproof and hence, have a longer life.
Additionally, they cost much less than their wooden forms. Fabricating aluminium frames for windows and making fibreglass doors of different sizes is a simple small-scale manufacturing business to set up.
Once again, machinery required is easy to acquire and therefore the manufacturing unit doesn’t require large premises. You’ll offer readymade solutions or take orders for tailor-made sizes.
A small export marketplace for these things also exists, primarily within the Middle East and the Far East.
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14. Vehicle accessories manufacture
This business is the same as the automobile manufacturer, but this is entirely a special section of an equivalent industry.
Vehicle accessories like seat covers for cars and bikes, steering wheel covers, air fresheners, and front and rear bumpers are made from aluminium or steel.
There is a great scope for this business in the market and considering starting a small-scale manufacturing business of the above-mentioned vehicle accessories.
Build your car spa in your area so that vehicles can reach you directly and you’ll get a good volume of business.
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15. Fruit pulp manufacturing
Good quality fruit pulp is required by the food industry such as star hotels, frozen dessert manufacturers, sweet makers etc.
The demand for fruit sauce including spaghetti sauce, chili sauce, and jam-jelly is usually stable throughout the year by different food industries. But there are not enough refrigerated trucks, or warehouses available to store and supply on demand.
Hence, I would like to recommend you to start this small business in your home backyard.
Different fruit pulps like mango and tomato are used to make ice-cream flavours, fruit jams, squashes, juices etc. It requires a capital investment of Rs.10 Lakhs to get an Automatic Fruit Pulper machine and raw fruits, cooling system etc.
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16. Homemade costume and jewelry manufacturing
Women are highly excited about wearing fashionable jewellery and costumes. They like to match these accessories to suit their dressings.
There are plenty of online shopping sites to sell custom-made costumes and fashion jewellery at an affordable price.
Housewives are highly creative and with a little knowledge, they surely make their custom homemade jewels and costumes.
They can make their product and contact with the online shopping sites and sell the product online or they can sell it directly as well.
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17. Concrete block manufacturing
The construction industry is very popular due to its constant growth. It has a large market in the business industry.
This includes construction of the individual homes, villas, and plots of huge buildings for the use of commercial purposes like malls, industrial units, schools, colleges etc.
Hence there is always a high requirement for the supply of concrete blocks and bricks to the building contractors.
Since the demand for this business is so high. You can set up this business and can earn a lot of profit from it. However, the initial investment for this business can be comparatively higher, that is between fifty to seventy lakhs.
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18. Making papad
Papad is a primary food item on every occasion, function, celebration, and party in India. Preparing them does not involve difficult processes, it is much easier and it doesn’t require much investment.
You can easily find a market in your area with some small marketing efforts. Manufacturing Papads requires basic ingredients like flour, spices, oil etc.
Homemade Papads have a great market and small stores and shops buy them and sell them at high prices.
However, you’ll earn a handsome volume of income each day if you start this home-based business with a little investment.
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19. Stitching clothes
You can start a small home-based cloth stitching business for school uniforms, college uniforms and industries.
Housewives and stay-at-home moms can better utilize their extra time by taking tailoring jobs – a good business idea for housewives.
Many schools have made a habit of ordering bulk school uniforms to a single merchant and that’s why this is a great business if you manage to get at least one or two school orders.
Even the employees of some companies wear uniforms at their work in the company. So, there is always a high demand for this business.
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The estimated capital investment is two lakhs because you need to buy stitching machines and some raw materials like clothes.
You can also carry out stitching classes for those who are interested in learning stitching and making money out of it. Teaching is a less time-consuming and less investment idea.
Different schools, companies, and social groups use printed t-shirts. This business involves very little risk. High-quality printing is the key criterion to be maintained. This business has a high demand within the market.
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20. Manufacturing of kitchen utensils
Another vital part of every home is the pots, kettles, pans, cookers, mixer-grinder and other kitchen essentials. They are integral parts of the kitchen and are necessary for preparing food.
These utensils are not only used in kitchens but also hotels, restaurants, cafes, canteens etc.
Every person who owns a house must buy new kitchen essentials at frequent intervals. Hence, starting a business in manufacturing these products is going to be the best idea.
You can install your stall by renting an area within the commercial marketplace or tie up with other merchants and sell them for a profitable price. The initial investment of these businesses lies between two lakhs to five lakhs.
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21. Organic fertilizer
India is an agricultural country and over two-thirds of our land is being used for the cultivation of crops and other small plants for human consumption.
A highly fertilized soil will help grow crops healthier and yield a high volume of production. With the growing awareness of organic fertilizers, there’s always an honest business behind this scenario.
Start a small-scale fertilizer business from your home using the organic wastes generated from your home and your neighbour’s houses. Pack the fertilizers in small 1 kg, 2 kg, and 5 kg bags and sell them in your local markets (or) straight to the farmer’s (or) nurseries. You will get a decent income and once you are successful expand your business.
22. Manufacturing soaps and detergents
You know that Soaps and Detergent Powders are highly moving products for each household in your area. So, it’s a good idea to think about starting a small-scale manufacturing business based at home.
Before starting this business, you should learn or take some training on how soap and detergents are made. You can find lots of tutorials about soap making on YouTube.
First, learn the process and make soap for your own needs. Then slowly increase your production and start selling in your local markets.
You can either put a stall in your home for the marketing (or) appoint some field executives to sell your product at the consumer’s doorstep.
These small-scale manufacturing business ideas will surely win due to the growing trend in this arena.
On the investment part, you can easily start with just Rs.50,000 which includes acquiring raw materials, hand gloves, a weighing scale, plastic bags etc.
23. Making fragrance sticks or agarbatti
Agarbattis/ fragrance sticks are everyday essentials in Indian households. The traditional rituals in India involve the usage of these agarbattis every day. Every Indian household uses at least 3 agarbattis per day and the maximum usage can be up to 12-15 agarbattis this demand is doubled during festivals and any kind of celebrations.
Considering the population of the country, this usage creates great demand for these products.
Over decades, the state of Karnataka, especially in the city of Bengaluru, held sway over the fragrance sticks for Agarbatti manufacturers in India. Primarily, this was because of the easier availability of raw materials in this region.
Nowadays, with superior transport facilities resulting in easier access to raw materials, agarbatti manufacturing business ideas are rapidly spreading to other parts of India.
The agarbatti market in India is estimated at a whopping Rs.3,500 crore annually and growing. Indian-made agarbattis are famous and highly demanding in foreign countries.
24. Handbags, wallets and purses
Unmistakably, handbags, wallets and purses form an important part of our lifestyle. No matter whether you’re female or male, you rarely leave your home without either of these.
Handbags, wallets and purses can often cost a lot of money. Especially the products which are designed by designers or highly reputed manufacturers.
However, a very huge market exists for unbranded handbags, wallets and purses. Almost everyone seems to be tempted to buy a new one, provided the price is commensurate with the quality.
It is important to set up your business in a place where it’s easy to access the raw materials as well as the manpower. The location of the physical shop as well is the most important factor that determines the success of this business.
The shop has to be located in an area that has a population of its target audience. So, the demography, lifestyle of people, and standard of living are some of the important factors to be considered while choosing the location for selling handbags, purses and wallets.
Here, skilled manpower is important since people are always on the lookout for newer designs.
25. Spice powders
There has always been a huge demand for Indian spices within India and also across the world. There has always been the mention of Indian spices in the history of ancient and mediaeval India. India, even today, is a prime exporter of spices.
Indian cuisines too, heavily rely on a myriad blend of spices. There are wide ranges of these spices that are used in the everyday lives of Indians. And we Indians are known to be consuming ‘spicier’ food which is self-explanatory for its demand.
Admittedly there are giant players within the market. However, they have one inherent drawback. Large manufacturers don’t take into consideration local or ethnic tastes. Instead, their spice powders are somewhat common in nature.
Consequently, a small-scale manufacturing business that makes spices suited to cuisines of specific ethnicities will find a decent market.
However, to enter into this business, you’ll require astute knowledge about the proportion of spices that will go into each powder.
One can start this business on a small scale and then expand the business as big as they want.
Conclusion
Small-scale businesses are a boon for middle-class business aspirants, the rural population, women and many others. They don’t just empower these classes but also provide them with financial stability. They are the main source of living for many, especially in rural parts of India.
Establishing a new business is the driving force of the economy of any nation and most country governments are supporting these types of small-scale manufacturers.
The growth of any country depends on the constant growth in the industrialization sector and thus it depends on creating an active manufacturing sector.
There are many online jobs available from home and lots of people are succeeding in the IT industry too. The opportunities are everywhere, if we have a real desire to seek out one genuine job, we’ll achieve success.
It is possible to proportion your business any time if it runs successfully and surely, you’ll get confidence in your full-time small-scale manufacturing business.
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