Manufacturing business ideas form the core of a successful economy as the contribution of the manufacturing sector to the growth of the Indian economy is immense. The manufacturing sector in India has a long history, dating back to ancient times, with India being a hub for textiles, handicrafts, and other products. However, the sector saw a decline during British colonial rule.
After independence, the government initiated various policies to revive the sector. And today, we are witnessing a rise in the manufacturing sector in India.
The Government of India has taken significant steps towards achieving Industry 4.0, with initiatives, such as the National Manufacturing Policy and the Production Linked Incentive (PLI) scheme for manufacturing. It will further boost the manufacturing sector's contribution to the country's GDP and align it with global standards.
The manufacturing sector in India has shown considerable growth over the years, with the government's initiatives and policies contributing to its development. However, there is still a long way to go. India's economy is growing at a rapid pace, and it is expected to become a global manufacturing hub by 2030. Today, many budding entrepreneurs are venturing into this domain.
The government is promoting the growth of the manufacturing sector by simplifying the policies and paperwork. The aim is to create a smooth system where entrepreneurs and small business owners can easily overcome technical or procedural glitches.
Moreover, the Indian Government has made significant investments in infrastructure development, such as building highways, airports, and ports, which has improved connectivity and logistics for manufacturers. In this blog, we are going to discuss important manufacturing business ideas in India that can contribute further to the growth of the economy.
25 Manufacturing Business Ideas in India
The manufacturing sector in India has seen significant development over the past few decades, contributing significantly to the country's economic development. Anyone who wants to be a part of the manufacturing sector can consider the best manufacturing business ideas discussed below:
1. Artificial Jewelry Manufacturing
Artificial jewelry manufacturing is a popular business in India, as it is a cost-effective alternative to traditional jewelry. To start a successful artificial jewelry business, you must plan everything well. You must begin with market research and find out who your competitors are and what are they doing. Next, you can work on the production strategy, pricing, distribution, and marketing.
Choose a suitable manufacturing process, invest in the necessary equipment and high-quality materials, and develop unique and attractive designs for your jewelry. You must hire experienced designers as designs are the key to your business success. Regarding marketing, develop a marketing strategy using social media marketing agencies and partner with the right influencers to reach your target audience.
2. Eco-friendly Packaging Manufacturing
With growing concern for the environment, people are now looking for eco-friendly and sustainable packaging options. Hence, one of the opportunities in manufacturing that you can explore is eco-friendly packaging materials.
For this, it is important to study the market to understand what kind of eco-friendly packaging people are making. paper bags, cardboard boxes, biodegradable plastics, and others. Next understand the budget requirements, machinery requirements, and resources available to you. Prepare a detailed business plan and understand all the nitty-gritty.
Eco-friendly packaging manufacturing companies are also focusing on providing customized solutions. Make sure to get the necessary certification to ensure compliance with the legal parameters specified by the government authority.
3. Kitchen Utensils Manufacturing
Kitchen utensils have huge demand as they are a need of every household, small or large. You can start small-scale kitchen utensils manufacturing units and cater to the domestic and export market. Kitchen utensil manufacturing involves specialized equipment, skilled workers, and a detailed understanding of the materials used. The process of manufacturing these items typically involves several steps like designing, prototyping, casting, finishing, and packaging.
After manufacturing, you will need to network with retailers or distributors to sell your products. You can also sell through online marketplaces or wholesale distributors.
When starting kitchen utensil manufacturing, it is significant to focus on using only quality materials. For example, using high-quality steel, iron, and plastic ensures the longevity of the products. If you want to manufacture something unique, you can find out about new kitchen utensils made from clay or cast iron. This is one of the most popular small manufacturing business ideas in India.
4. Dairy Product Manufacturing
Starting the dairy product manufacturing business is a profitable production-based business idea. Here, you need to make dairy products like cottage cheese, curd, butter, ice cream, and clarified butter (ghee) among others. In the first step, milk collection happens after which the collected milk is transported to the processing plant where it is first pasteurized and then processed to make various products.
You can start a small-scale manufacturing business for dairy products without worrying about a lot of complex factors. However, one needs to ensure compliance with the quality parameters, which ensures high-quality products. Obtaining the necessary license and approval from the government is paramount to ensure the smooth functioning of the business.
5. Electrical Fitting Manufacturing
Electrical fittings find multiple applications in residential and commercial spaces. Hence venturing into electric fittings manufacturing can be a profitable business option.
You don't need to start on a large scale. With a limited budget, you can begin with small-scale manufacturing of electrical fittings. However, there are umpteen opportunities to expand.
When it comes to manufacturing electrical fittings, it consists of several stock-keeping units (SKUs) like switches, sockets, wiring devices, circuit boxes, and many others. These products need to be of the highest quality and should be tested. For better sales, you must use quality materials like copper, brass, and stainless steel. You also need to network with distributors and retailers.
Manufacturing companies should also follow the defined standards and get the necessary license to operate smoothly.
6. Candle Making
The candle-making business is a growing industry in India. With the increasing demand for candles for decorative purposes, religious rituals, and gifting, there is a huge potential for entrepreneurs to start a candle-making unit. Before you go ahead into candle making, it is significant to understand the requirements of the market, different types of wax that can be used in candle making and their properties, candle-making techniques, and so on.
To stand out from the market, you need to make unique candles with decorative elements, unique designs, color combinations, dried flowers, and so on. You can find many detailed online channels and books that provide complete information on how to get started with candle making. Using high-quality wax, bricks, fragrances, and dyes is paramount to positioning your product different from others. In addition, focusing on marketing and brand promotion is equally important.
7. Hair Oil Manufacturing
Oil manufacturing can be a great small-scale manufacturing business idea. It is a grooming product, and with the expansion of the beauty and wellness segment as a profitable venture, demand is huge. However, it requires thorough research of the market and following the necessary protocol to register the company.
In addition to this, it is equally significant to focus on branding and promoting the product. While doing so, implementing quality control and standards is paramount to ensure that the product is safe to use. Starting a hair oil manufacturing business in India requires a considerable investment of time, effort, and money. However, with the right strategy, quality product, and marketing, it can be highly revenue-generating.
8. Organic Farming
In recent years, organic farming is emerging as a prime sector in the economy. This is primarily because of the growing inclination to switch to chemical-free food. In such a scenario, organic farming is flourishing a lot in the times to come. You can start a small-scale organic farming unit and cater to the growing demand. The Indian organic food market stood at a value of USD 1238 million in 2022, and this number is only going to grow in the following years. Hence, venturing into this business can be a lucrative option.
9. Poultry Farming
Between 2023-2028, the poultry farming market in India is expected to grow immensely. This is because people are now more concerned about their food habits. The switch to a protein-rich diet and increased fitness concerns are key reasons for propelling the growth of this market.
The industry is mostly dominated by small and medium-scale farmers who use traditional methods of poultry farming. However, there has been a shift towards more intensive and commercial methods of poultry farming, which involves the use of modern techniques and equipment.
To promote the growth of poultry farming, the government also provides financial assistance. For example, the Entrepreneurship Development and Employment Generation (EDEG) initiative by the government help in increasing the production rates and quality of poultry products.
10. Organic Fertilizer Manufacturing
Nowadays, people are more concerned about the kind of food they are consuming. The focus is to consume more organic products, so the demand for organic fertilizer is growing. Hence, starting a business in organic fertilizer manufacturing can help in increasing profitability. Besides, the simplified financial aid and business policies will help in establishing the business more profoundly.
The manufacturer must, however, ensure that the fertilizer manufactured in their units are as per the quality standards and defined parameters of the government. This will eventually ensure better brand building and positioning.
11. Organic Food Manufacturing
It involves producing food products using organic farming methods that avoid the use of synthetic pesticides, fertilizers, and genetically modified organisms (GMOs). The process of manufacturing involves methods like crop rotation, composting, and biological pest control to produce healthy and nutritious food products that are free from harmful chemicals.
Organic food manufacturing is a growing industry as consumers become more aware of the health and environmental benefits of consuming organic food products. Hence, the organic food manufacturing business idea is the best deal in the present times. But, here, it is important to know about the regulations that govern this market. The companies in the manufacturing of organic food products must comply with the regulations. Failing to do so can draw legal repercussions.
While organic food products are often more expensive than conventionally produced food products, consumers are willing to pay a premium for the health and environmental benefits associated with organic food.
12. Plastic Product Manufacturing
Plastic is widely used in the manufacturing segment. It is the main product as well as the raw material for different industries. Hence, the ones looking for new manufacturing business ideas can consider plastic product manufacturing. The plastic manufacturing business in India is growing. This industry will generate annual revenue of Rs. 10 lakh billion (US$ 122.54 billion) along with an estimate of two lakh tonnes of exports by the year of 2027. India manufactures and exports plastic products like linoleum, houseware products, pipes, plastic films, medical items, cordage, fishnets, floor coverings, raw material, etc. So, one has umpteen options to explore under the plastic product manufacturing division. Where, when it comes to manufacturing plastic products, it is important for companies to adhere to the regulations and standards.
13. Disposable Cup and Plate Manufacturing
This is yet another popular manufacturing industry with a growing number of restaurants, eating joints, and events. Also, people are now more concerned about hygiene and convenience due to changing lifestyles which has further led to an increase in demand.
Another reason for this industry gaining popularity is the low investment. However, this industry is highly competitive as there are many small and medium-scale manufacturers. Today there is also an increasing demand for eco-friendly options. However, do check government guidelines and other concerns.
14. Medical Supplies Manufacturing
Medical supplies have huge demand, and it is a market that is unlikely to ever go out of demand. The items included in this segment are cotton swabs, gauze, syringes, needles, and surgical gloves. However, you cannot start a medical supply manufacturing unit without government approval to ensure that products are fit for use in hospitals, clinics, and homes. This business has its own challenges, so awareness of how to handle them is key.
The manufacturing process involves stages like designing, sourcing raw materials, production, quality control, packaging, and distribution. Do thorough market research, understand the regulatory requirements, and outline the procurement source of equipment and labor. You also need to take care of marketing, distribution, and customer support.
15. Computer Accessories Manufacturing
Technology is rapidly expanding in India. Hence, we have seen a massive rise in the growth of computer accessory manufacturing. The industry includes the production of various computer peripherals, such as keyboards, accessories, speakers, and monitors, as well as other related products, such as internal drives, external hard drives, and printers.
With the increasing demand for high-quality computer accessories and the government's support for the manufacturing sector, the computer accessories manufacturing industry in India is expected to continue to grow and thrive in the coming years.
16. Paper Bag Manufacturing
With the growing concern about preserving the environment and switching to more environmentally friendly methodologies, the demand for recyclable paper bags has also increased. Several customized options and high-quality paper bag alternatives are available in the market. This has opened up avenues of new business ideas for those looking to manufacture paper bags.
The packaging industry is expanding, and with the ban on plastic bags, the demand for paper bags is on the rise. Hence, the need for customized and tailored packaging solutions is also going to bloom. You can start a paper bag manufacturing unit with a limited investment and cater to the increasing demand.
17. Pet Food Manufacturing
Pet food has huge demand in India today with a growing number of pet owners. The demand is huge, and production is unable to meet the growing demand. To meet the demand, India imports a majority of its pet food. This is why even the Indian government is encouraging people to start the pet food manufacturing industry.
18. Ice-Cream Manufacturing
Ice cream manufacturing is a complex process that involves several stages, including mixing, pasteurization, homogenization, aging, freezing, and packaging. The process begins with blending the ingredients, such as milk, cream, sugar, and flavorings, in a large vat or tank. The mixture is then pasteurized to eliminate any harmful bacteria and homogenized to ensure a consistent texture. Quality control is critical throughout the process to ensure the ice cream meets safety standards and tastes delicious. Same time, it is important to follow the FSSAI standards and quality parameters to ensure that the final product is consumable.
19. Leather Bags Manufacturing
Owing leather-made products is a mark of luxury. Consumers' desire for high-quality leather goods and accessories is unwavering. This has opened the gateway of opportunity for the growth of companies dealing with leather bag manufacturing. Leather bag manufacturing is a multi-step process that requires skilled craftsmanship and attention to detail. Leather bags are a popular fashion accessory and are known for their durability and timeless appeal.
20. Soap Manufacturing
It is yet another one of the best manufacturing business segments that are also witnessing massive growth. The Indian soap manufacturing market is excepted to grow at a CAGR of 3.8% during 2023-2028. Hence companies manufacturing soaps and detergents have a high chance of becoming profitable.
Nowadays, people are more focused on buying handmade soaps. In fact, it has also emerged as a popular B2B manufacturing business idea, wherein the manufacturer can supply the products to big retailers and hypermarkets. However, soap manufacturing companies need to adhere to certain government compliances and regulatory parameters to ensure the best quality.
21. Handmade Crafts
Handmade craft products are often more personal and unique, and they can be made using a variety of materials, such as silk threads, beads, sequins, and even recycled materials. It has also emerged as a popular segment. Hence, individuals looking for small-scale manufacturing ideas can venture into handmade craft items manufacturing.
Some examples of handmade craft items manufacturing are flower crafts, textile crafts, houseware, glass art, and more. Selling and buying homemade products are a beautiful way to encourage creativity and talent. It is also easier to sell such products now because of the surge of online portals and e-commerce businesses.
22. Toys Manufacturing
The toy manufacturing business in India appears to be growing by leaps and bounds. An individual planning to start a business in toy manufacturing in India can consider this provided he has enough investment, expertise, and resources. Like any other business, you need to research competitors and trends in the toy industry to know the types of toys being manufactured, market demand, and other strategies. Accordingly, design a business plan, understand about creating a prototype of the toys, how the manufacturing process is carried out, from where raw materials are sourced, and how quality control is done. Developing a marketing strategy to sell your toys and establishing a brand is also important. A toy manufacturing business has its own inherent challenges and requires careful planning and execution.
23. Hand Sanitizer Manufacturing
Hand sanitizer manufacturing is a growing industry in India. It is driven by the increasing demand for hand sanitizers as a result of the COVID-19 pandemic. Hand sanitizers are significant in fighting against the spread of the virus and other infectious diseases. The manufacturing process involves the use of various chemicals, such as alcohol, glycerin, and hydrogen peroxide, to produce hand sanitizers in different formulations and sizes. The industry caters to a wide range of customers, including hospitals, schools, offices, and households.
Hand sanitizer manufacturing is a highly regulated industry in India, with strict guidelines on the quality and safety of the products. The industry faces challenges such as shortages of raw materials, fluctuations in demand, and competition from imported products.
However, with the increasing awareness of the importance of hand hygiene and the need for effective hand sanitizers, the hand sanitizer manufacturing industry in India is expected to continue to grow and play a critical role in maintaining public health and safety.
24. Furniture Making
If you are looking for the most profitable manufacturing business to start, then furniture making is a popular choice. With the growing demand for custom furniture, the segment has emerged as a profitable domain. Furniture making is a timeless and lucrative business, with a constant demand for chairs, tables, wardrobes, beds, cabinets, and desks all year round. Office furniture is a vast category in itself. It is a highly popular small-scale manufacturing business globally, offering immense opportunities for entrepreneurs.
25. Millet-Based Food Manufacturing
The importance of maintaining good health is becoming increasingly popular. Hence, there is a growing demand for nutritious food, with the country's millet-based packaged food segment set to grow at a CAGR of 9.2% from the year 2022 to 2032. Millets have gained popularity due to their numerous health benefits. They are an excellent source of calcium, which is a mineral that around 40% of Indians are deficient in. This presents a great opportunity for entrepreneurs to capitalize on this growing trend and manufacture food or snacks using millet.
Sorghum and pearl millets are both commonly grown in India and are rich sources of calcium, making them ideal ingredients for producing healthy and nutritious food products. Hence, sourcing it is cost-effective, thus making it a profitable business idea.
The Scope of Manufacturing is Immense
The manufacturing industry in India is vast and diverse. Thus, offering umpteen small-scale manufacturing opportunities for entrepreneurs and investors to start and grow businesses in various sectors. While there are challenges, such as government regulations, infrastructure issues, and supply chain challenges, at the same time, there are many new policies that support the small-scale manufacturing business idea to flourish.
With the adoption of Industry 4.0 technologies such as automation, artificial intelligence, and the Internet of Things (IoT), Indian manufacturing companies are becoming more efficient, productive, and competitive on the global stage. With careful planning and execution, the manufacturing industry in India can offer a profitable and rewarding business opportunity. TranZact's cloud-based ERP solutions can help in streamlining the manufacturing process from start to finish to enhance your profitability!
FAQs on Manufacturing Buiness Ideas
1. What are some of the small business ideas?
Some of the most popular manufacturing industries in India are automobiles, textiles, food processing, pharmaceuticals, toys, and electrical supplies.
2. How can I start a manufacturing business in India?
To start a manufacturing business in India, one needs to register the business with the government, obtain necessary permits and licenses, secure funding, identify suppliers and manufacturers for raw materials, buy and install the required equipment and adopt the right ERP software to streamline businesses.
3. What are the challenges of running a manufacturing business in India?
Some of the challenges of running a manufacturing business in India include government regulations, infrastructure issues, labor laws, supply chain challenges, and competition from other manufacturers.
4. How can I ensure quality control in my manufacturing business?
Every manufacturing business in India needs to comply with certain policies and standards prescribed by the government. From acquiring the license to registration and maintaining the quality standards and accreditations is a must.
5. What are the tax implications of running a manufacturing business in India?
The tax implications of running a manufacturing business in India include income tax, goods, and services tax (GST), and customs duty.
6. How can I market my manufactured products in India?
The process of marketing any product in the market is simplified with social media channels, trade shows, and participation and exhibitions.
7. How can I expand my manufacturing business in India?
Starting the manufacturing business has become easier because of the introduction of several policies by the government of India. In addition, expanding in marketing the business idea has been simplified with the surge of social media. Adopting the right research methodology and marketing strategy can help in acquiring the customer and making the brand presence stronger.
8. What factors have contributed to the growth of manufacturing companies in India?
Factors like the 'Make in India Initiative', 'Industrial Corridor Development Program', budget allocation for the MSME sector, and the growing domestic market have contributed to the growth of the manufacturing segment.
9. What are the different types of manufacturing businesses in India?
The basic classification of the manufacturing industry is as follows a. Agro-based manufacturing b. Mineral-based manufacturing c. Consumer industriesd. Key industries
