10 Small Scale Manufacturing Business Ideas
- BY Akshay Arora
Feature Writer, BusinessEx
- Oct 03,2017
- 15 Mins Read
Starting a manufacturing business is not a difficult task if you have the right business plan and clear view of what you want to achieve. There are myriad low-cost business opportunities that you can venture in. But before that, you must know why manufacturing business is a good choice.
Why start your own manufacturing business in India?
Indian manufacturing sector is one of the emerging sectors. It is expected that India will become the fifth largest manufacturing country in the world by FY2020.
Indian Manufacturing Sector Facts:-
- In between FY12 and FY17, India’s manufacturing sector grew at CAGR of 7.32 per cent.
- Under the ‘Make in India’ initiative, the Government of India plans to raise GDP from 16 per cent to 25 per cent by 2022, and create 100 million new jobs by 2022.
- The Wholesale Price Index (WPI) for manufactured goods rose 2.4 per cent in FY16-17.
- Foreign Direct Investment (FDI) grew by 82 per cent to $16.13 billion between April-November 2016.
- As per Union Budget 2017-18, Government of India reduced income tax rate to 25 per cent for medium and small size enterprises having turnover up to Rs 50 crore.
10 Small Scale Manufacturing Business Ideas
A daily use product is always in demand and these are the 10 best results that seem to be profitable opportunity to invest in:
- Computer Accessories:
Computers are now everywhere and with the constant rise in demand for official and general use, the demand for accessories is also rising. Some of the products that you can manufacture are the keyboard, mouse, speakers, cables, etc. The total capital required depends on the product, location, and cost of material you use but an estimate would be around Rs 7-10 Lac.
- Paper Manufacturing:
In education or for official use, the paper is a need. The paper market is emerging with the help of small-scale businesses. You can start manufacture paper for various purposes such as newspapers, magazines, books and study material, etc. You can connect with printing agencies as well to sell your paper in bulk. This business never goes out of demand. The required investment is approximately Rs 2-3 Lac.
- Wedding Cards:
Wedding card is a necessity and acts as a status quo in India. The demand is high because in our highly populated country there is the high rate of marriage. This is one of the best low-cost business in which you can invest and can get fruitful returns. The investment for this business is Rs 3-5 Lac.
- Hand-made Products:
If you are creative and good at making something worth then you should start your own business. There are so many things that attract customers such as artefacts, jewellery, wooden showpiece, etc. You can also sell them online or open your stall in exhibitions to reach to the customers. This is a simple and low-cost solution with an initial investment of Rs 1-3 Lac.
- Stationery Manufacturing:
People use stationery for daily purposes. Starting a stationery manufacturing business will be a good investment and you can tie up with stationery retailers for selling and distribution part. The capital requirement is around Rs 5-7 Lac.
- Footwear Manufacturing:
Woodland, Adidas, Nike, etc are among the big players in footwear industry but all people cannot afford it or just think as a waste of money. It is a fact that no middle-class person would like to spend its income on some branded footwear so they buy from local manufacturers like Lotto, Sparx, etc. These small businesses have expanded their operations all over India now, so it is a profitable opportunity. The capital required is around Rs 8-10 Lac.
- Pet-Food Manufacturing:
It has become a trend to have a pet and some do love to have their own pets and to feed them, to nurture them they buy expensive pet food from the market. The time of feeding pets with milk and bread is gone, now people use pedigree and other brands for pet food. So, you can manufacture pet food and sell at cheaper cost. The capital investment required is in the price band of 10-12 Lac.
- Mobile Accessories:
In India, over 10 million mobiles were sold by the big sellers. With an increase in a number of purchases of mobile, demand for mobile accessories also rises. There are so many options in mobile accessories like back cover, screen guard, earphones, etc. The investment required is around Rs 6-8 Lac.
Starting up your own clothes manufacturing is a good idea but try to focus on one segment at first like kids wear and expand slowly in another segment. It is obvious that people cannot wear branded clothes all the time apart from some exceptions. It is a need and always in demand. The investment required is around Rs 10-15 Lac.
- Bath Products:
This is the general use item for bath purpose such as a mug, towel, brush, soap, detergent, facewash, plastic items, etc. These all are required on day to day basis so investing in this manufacturing business idea could be a good start. The capital required is approximately Rs 7-10 Lac.
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