20 Most Profitable Manufacturing Business Ideas in India

When it comes to manufacturing business ideas in India, there is a vast spectrum to choose from.

Whether you are looking for an investment that would offer stable returns or one that would grow at a rapid pace, manufacturing businesses have it all.

To start with, the nature of the manufacturing business in India is ever-changing.

Manufacturing companies are constantly updating their products and services to suit the current trends, desires, and demands of the customers.

Moreover, the scope for innovation is massive in this field so you will always have something unique to offer your customer base.

Tapping into different markets is also very easy for manufacturers since they already have a great deal of market knowledge about their chosen niche market or industry.

In addition, they can easily cater to different levels of demand by scaling up or down their production line accordingly.

However, if you are planning to start a manufacturing business in India then you must follow certain guidelines as well.

The first thing that you need to keep in mind while starting this venture is the type of product range that would be most applicable for your intended target market.

You can decide whether to manufacture new products or just revamp existing ones.

If you are tapping into already existing markets then it would be better if you focus on offering new variants of existing products rather than creating new products.

This is because you would be able to reach a larger market and also ensure that your product has a high chance of success.

Why Manufacturing Business in India?

Being an entrepreneur is a great way to make money for the people who are smart enough to start their own business.

This does not mean you have to be the classic entrepreneur who struggles for a long time just to make it big.

The current scenario in India has made many people successful entrepreneurs very quickly within a short period.

With the manufacturing industry expanding rapidly, there is plenty of scope for businessmen to invest in profitable manufacturing businesses in India as well as abroad.

To date, we have seen businessmen having their own business in various sectors like real estate, manufacturing, textile, and many more. Having your own business gives you the freedom to work on your terms with your own rules.

It also allows earning huge profits compared to working under someone else or completing a project on fixed payments.

The most rewarding thing about being an entrepreneur is that you can enjoy the success of your hard work yourself.

20 Most Profitable Manufacturing Business in India

Starting a new business can be a daunting task, especially in India. Before you start the journey of setting up your manufacturing unit in India, it is important to understand what the market is looking for and whether you have the right skills to run your business successfully.

Whether you are looking to set up a small-scale business or a large-scale factory, it is always better to plan, so that you can avoid any unnecessary losses. In this article, we will discuss profitable manufacturing business ideas in India that you can start with a small investment.

1. Tailoring and Cloth Manufacturing Business

India has always been a hub for the most talented tailors around the world, because of its skilled labor force. The job of a tailor revolves around cutting cloth and sewing them together to make clothing.

The demand for custom-made clothing has never decreased in India, which makes it one of the best manufacturing businesses in India. You can either set up your tailoring shop or hire tailors and sell their products as your own.

If you are planning to set up an independent tailoring shop, you need to get all necessary licenses and permits from the government authorities first. Once you have all the required documents, you can start looking for a suitable place to rent before starting your work.

 

2. Coconut Oil Manufacturing

Coconut oil is a white non-drying vegetable fat extracted from the kernel or meat of matured coconuts. It has long been recognized for its skincare, haircare, and cosmetic uses.

Coconut oil is used in soaps and cosmetics as an emollient to soften skin, as well as in cooking to add flavor and reduce the burning of food. Coconut oil enjoys several benefits that have made it a popular ingredient in many personal-care products.

Market demand for edible oils is on an upswing across the country with consumer preferences moving towards healthy alternatives. This is sharpening the demand for virgin coconut oils over other refined ones.

The growing popularity of yoga and Ayurveda the Indian traditional medicine, has created significant demand for virgin coconut oil from consumers looking to enhance their spiritual well-being with this “nectar”.

The trend towards natural and organic products has also created opportunities for virgin coconut oils that are free from chemicals.

3. Mobile Accessories Manufacturing

The mobile phone accessories market has grown tremendously in India owing to the huge growth in sales of mobile phones. Based on past trends, the market is likely to grow at a CAGR of close to 20% for the next few years.

The mobile phone accessories include leather cases, covers, pouches, holsters, skins, hands-free kits, screen guards, chargers, headsets, and many more.

Mobile accessories manufacturers can now make use of this trend by setting up their manufacturing facilities or by outsourcing their requirements. Mobile accessory manufacturing forms an important component of the electronics industry in India.

The advantage of this segment is that it can be done on a small scale as well as a large scale depending on demand. With rising disposable incomes, there will be a significant increase in demand for these products both online and offline channels such as retail stores and shopping malls.

4. Paper Manufacturing

The paper manufacturing business is one of the most important business ideas that you can invest in today. Many people have benefited tremendously by working in this particular field.

You can also make huge profits by investing in this business idea because many people use papers every day for their work or their studies or even for their personal use and they will always need a steady supply of good quality papers to support their daily needs.

The paper manufacturing business is one of the most successful small-scale businesses in India. There are various types of papers that you can produce if you decide to invest in this particular business such as newsprint, writing paper, magazine paper, etc.

Paper has become a necessity in our lives. For instance, when writing a letter, we don’t use stone or leaves to write instead we use paper. Many companies manufacture paper and they earn huge profits every year.

5. Handmade Biscuits Making

Handmade Biscuits can be sold in different ways to reach out to different customers. These biscuits can be sold in bulk, through home delivery, or can be sold through retail stores.

This business model is highly scalable and profitable. The benefits are that it does not require large space for storage or for the retail outlets as these products are usually baked at home by individuals who want to make some extra money from it.

A market survey will help you identify how much profit you can make from this business idea and how many units you need to sell every month to earn profits from it.

Scaling up this business is also easy as you can hire people to bake these biscuits for you daily so that you meet the demand for your product easily.

If you want to start this business, then all that is required is to have a good recipe for making biscuits that people love and which taste delicious and yummy.

6. Leather Products Manufacturing

This is one of the most lucrative business opportunities there is in India, especially if you set up a ready-made garments tie-up with an international company.

You could also set up your label and sell high-quality leather products like jackets, shoes, wallets, accessories, etc. to buyers all over the world.

The best part about this is that it’s simple to set up and requires little investment as compared to other businesses like chemical manufacturing or textiles.

It also offers excellent scope for entrepreneurs. This particular business is quite high in demand, as people prefer buying leather products that last for a long duration of time rather than buying products that fall apart easily.

Leather goods can be manufactured from the leather hides which are obtained from slaughterhouses. The raw materials required for this business are durable and need not be replaced frequently, which makes it a steady investment option.

7. Plastic Manufacturing Business

Plastic manufacturing is an important industry in India and over the years, this industry has seen many new developments. Now when it comes to setting up a plastic manufacturing business, you have a lot of options available to you.

You can either set up a small factory or buy machinery and start production at your home-based setup. You can also hire experts to help you with the setup or take help from a company that specializes in this field.

It’s worth noting here that even though plastic manufacturing is booming, there are still many people who don’t know much about how to do it right. This means that there is a lot of scope for people who are willing to learn and make money at the same time through this business.

The best place for starting this business in Mumbai, Delhi, and Kolkata because they have a huge number of beverage companies. You need to have a production unit near these three cities so that it will be easy to transport your products from there.

You can start it on a small scale and then expand it as per your requirements and demands of the market increases.

8. Candle Making Business

Candle making is one of the best manufacturing business ideas in India because of its demand. Candles are used for religious ceremonies, home decorations, and other reasons.

Candles that are made at home or in small local factories are sold to shops or directly to the customers. Candle-making requires very little investment.

So, if you want to start a candle-making business in India, you will not need a large amount of money to set up a factory. Candles are very cheap and affordable products. You can easily sell them at a good profit margin.

This is a good business to start as long as you know what you are doing. You will need to buy some equipment and know-how to make candles. It is not difficult to learn but you do need to take your time.

Candles can be handmade or made in a small-scale factory by using machines. It is best if you know both ways. The advantage of making candles at home is that you can experiment with different fragrances, different shapes, and different colors with no pressure of making money.

9. Furniture Manufacturing

Starting a furniture manufacturing business in India is one of the best business ideas in India. The industry is huge and growing rapidly. Many people are taking advantage of this opportunity and making their fortunes by starting a home furniture manufacturing unit.

Many businesses can be started as furniture manufacturing businesses. One of them is the woodcraft industry. Many wood-based products can be made at home.

Some of them include wooden plaques, wooden boxes, photo frames, wine racks, and cabinets among others. You can make these products at a very low cost and sell them on the internet or to retailers at a very reasonable price.

You can also start a furniture manufacturing business by making garden benches and other outdoor furniture like swings, tables, chairs, etc. Just check out the local market if there is any demand for it or if people would like to buy it from you.

Another furniture manufacturing business idea is making metal furniture like chairs, tables, etc. Some companies make metal-based furniture such as office chairs, stools, etc.

You can contact them to find out about their raw materials requirements and then decide on whether you want to make metal-based furniture or not.

10. Organic Handmade and Exotic Soaps

Being a small home-based business, this organic handmade and exotic soaps manufacturing idea can easily be managed by a single person. However, you can also form a partnership with your friends and relatives to manage this business.

It requires appropriate knowledge about organic ingredients and their properties as well as human psychology. Basic technical knowledge of soap making is required to understand the process.

Then you can start your manufacturing unit at your home. Some unique gift ideas are available in the market, but they are manufactured by large factories and it is difficult to find out the source.

Your profit will depend upon the raw materials used and their price fluctuations in the market.

This is a simple home-based business that needs no complex equipment or machinery. You just need some time, space, raw materials, and basic technical knowledge of soap making.

11. Toy Manufacturing

Toy manufacturing is another good business idea because of the large demand for toys all over the world. If you are into this business, you may be lucky to get orders from the UK, USA, Canada, and some other European countries.

What do you require to start your own Toy Manufacturing Business? You need to look for a location where the rent will be low and also the place should have easy access to transportation.

The place should be at least 400-500 sq feet so that your workers can operate freely. You will have to spend money on buying raw materials and working capital also.

Your money will be utilized for buying raw materials, transportation of the goods, wages for employees, and also for starting the business. Approximately you need about Rs 2 lakhs as working capital.

12. Fertilizer Production

Start a fertilizer production business in India – There are a variety of manufacturing businesses ideas in India but the fertilizer production business is one of the most profitable industries.

With the increasing population and requirement for food, more and more people are focusing on their agricultural jobs. But at the same time, there is a shortage of manure and fertilizer.

To resolve this problem, you can start your own fertilizer production business in India with an investment of about Rs 1 crore.

Nowadays, the government is making efforts to promote organic farming and to make people self-dependent and it is a good opportunity for you to start this business with a small investment.

As per the government’s estimate, by 2022, there will be an increment in the demand for organic products so why don’t you invest in this growing market?

13. LED Light Manufacturing

LED Light manufacturing business is the best business you could ever think of. Indeed, this is not just a business but a noble cause. LED lights help in saving electricity.

These lights are long-lasting and save you money that would have been spent on buying new incandescent bulbs all the time.

The demand for LED lights is growing rapidly with the advancement of technology and it has been predicted that in the future these lights will replace all other forms of lighting including fluorescent lights and most importantly incandescent lamps.

They have already replaced the filament lamps and are now used widely in automobile industries and homes.

A business based on renewable sources can be started with little investment and it offers a lot of scope for profit-making. The raw material used in making these lights are available easily at cheap rates because of mass production in China and other parts of the world.

There are many companies manufacturing LEDs in India as well that you can take help from if required. These companies can supply you with quality products at affordable rates depending upon your requirement.

14. Fruit Pulp Manufacturing

There are plenty of reasons to start a fruit pulp manufacturing business, especially in India. The fruit pulp is an excellent source of fiber, containing all the necessary types of dietary fiber.

It helps to detoxify the digestive system and keeps inflammation at bay. It also has significant antioxidant properties and can fight off free radicals that cause cancer and other diseases.

The best part about starting a fruit pulp manufacturing business is that it’s much less capital intensive compared to other businesses.

You don’t need to invest a lot of money into purchasing expensive machinery, which means that you can start up your business with very little initial capital outlay, unlike other businesses where you need to invest in machinery and equipment before you can start making any profits.

You can also produce fruit pulp at home without any investment in machinery as well. All you need is an efficient juicer or blender for extracting the pulp from fresh fruits, which can be further dried for long-term storage and consumption.

When you’re choosing your suppliers, make sure that the fruits come from reliable sources and are free from harmful pesticides and chemicals. You should also ensure that the fruits are organic or natural.

15. Manufacturing Incense Sticks/Agarbatti

Incense sticks manufacturing business in India might be one of the simplest and best business ideas today. It is a great opportunity for those who want to start their own manufacturing business.

Incense sticks are used during prayer time in religious places like temples, mosques, and churches. Incense sticks are also used to get rid of foul odors and bad smells from various places.

Incense sticks are also used for various other purposes like when you want to get rid of your bad mood or want to feel good at any time you can light an incense stick for a peaceful environment.

To manufacture incense sticks, you will need many raw materials like sandalwood powder, perfume oils, etc. The manufacturing process for incense sticks is not much complicated but it does take some amount of time and energy.

You may need to spend a few hours preparing the raw materials before starting the process of incense stick making. There are many incense stick-making machines available in the market that can help you make incense sticks within a few minutes with less effort.

You should look into the details of the machine before purchasing it as there are different types available depending on your needs and requirements.

16. Medical Devices Manufacturing

The medical devices industry is one of the fastest-growing industries in the world. In India, it is one of the most important industries with high potential.

It is not that difficult to start medical devices manufacturing business in India, as many companies can provide you with all the necessary equipment and other facilities to ensure your business is successful.

Medical device manufacturing businesses cover a wide range of products and services. You could choose to manufacture any number of medical devices, including implants, artificial joints, pacemakers, stents, drugs or medicines, diagnostic equipment, and surgical instruments.

You could also choose to sell products related to alternative medicine or products such as Ayurvedic medicines.

India faces a huge demand for low-cost medical devices that can help patients overcome life-threatening diseases such as cancer and heart ailments. With proper research and funding, you can start your own company to manufacture these types of products and earn handsome profits.

17. Automobile Parts Manufacturing

Starting an automobile part manufacturing business in India is something that can bring you huge profits. If you have a piece of good knowledge about the automobile industry and want to start a new business then this can be the right option for you.

Auto parts are made for various kinds of vehicles like four-wheelers and two-wheelers. The demand for auto parts is growing day by day because the number of vehicles on Indian roads is increasing every year.

For starting an auto part manufacturing business in India, you need to have certain basic things like land, office setup, machinery, raw materials, and skilled personnel. For manufacturing an auto part, it is also essential that you get a license from the government authorities as well as register your company.

18. B2B E-commerce

This kind of e-commerce business works on the model of manufacturing and wholesaling products. You can sell your products online through websites such as Flipkart or Amazon.

You can also market your products through social media platforms like Facebook, Twitter, JVZoo, etc. You can choose to sell these products by yourself or make use of multi-level marketing.

The products should be sourced from your own company. The advantage of this model is that it offers you complete control over the product and you get to keep a larger share of the profit margin.

19. Fashion Jewellery Manufacturing

Fashion jewelry is an important industry worth crores of rupees in India. The Indian market for fashion jewelry is growing at a rapid rate and has become a preferred industry for many people.

The fashion jewelry manufacturing business is relatively easy to start and can earn you good money if done properly.

The first step in starting a fashion jewelry manufacturing business is to pick the right location. Currently, several cities are well known for their jewelry manufacturing businesses.

The most common places include Delhi, Mumbai, Surat, Jaipur, Hyderabad, and Bangalore. But keep in mind that these cities tend to be crowded and have high rents, so it’s best to choose a city that is not as popular for its jewelry-making business; one where you can get a bigger space with lesser rent.

20. Disposable Cutlery Manufacturing

A disposable cutlery manufacturing business is one of the profitable businesses which can be started on a small scale in India. Since disposable cutlery is used at places like hotels, canteens, and institutes, its demand is ever increasing.

Unlike other businesses, it involves a very low investment and can be easily started if you have business acumen. But if you are already doing some work then you can add this to your existing business as an additional activity.

It will help you earn more money without adding any extra capital.

Last Word

If you’re living in a smaller city or town then consider starting your business online or by partnering with other local businesses.

It might be hard to start a business from scratch if you’re located in a rural area but technology can be very helpful in connecting with customers who are interested in buying your products.

You can also look into wholesale distributors and wholesalers who will buy your products directly from you and then sell them on their websites or shops.

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