25 Profitable Small Scale Manufacturing Business Ideas in India

By Myilraj G 

Updated on May 28, 2022

11 Comments

Business

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A Small Curation on Small Scale Manufacturing Business Ideas.

The big industries in the world are mostly relying upon these small scale manufacturing business people for the continuous supply of raw materials necessary for their production.

These small businesses confirm the constant supply of equipment, tools, raw materials that are required for the proper function of those large manufacturers.

Today most large business was once just a small startup and with constant effort and proper business plan, they have grown to a large extent.

Small Scale Manufacturing Business Ideas
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Starting a small scale business is pretty simple and it requires only a small capital to start, which involves purchasing the required machinery and raw materials from the market.

Small scale industries play a significant role in the country’s growing economy by creating more new employment opportunities for people.

Let me show you the different start-up small scale manufacturing businesses in India, which are considered as the most profitable ones.

Home Based Small Scale Manufacturing Business Ideas

The object of writing this article is to create a small awareness of the various opportunities that lie before us.

Many new entrepreneurs are seriously looking for a business opportunity but they are not having enough ideas to begin.

Many small-scale companies are opening on a large scale under the MSME act in India. When you observe deeply, most owners are rejected for a job (or) have no idea to work 9 to 5 jobs.

Hence for those, these manufacturing ideas can help them create business opportunities in India.

Starting many small scale industries not only helps to grow a country’s economy but also increases the number of employees.

There are many advantages to starting these kinds of home-based businesses.

  1. Increased chances of employment.
  2. The individual or the owner may become financially strong.
  3. Proper tax payments by these entrepreneurs help to build a strong nation.
  4. The surrounding society will get a chance to grow.

1. Paper Manufacturing

Papers are widely used in all places such as Schools, Colleges, Small Companies, and Industries. Hence planning to start a small home-based paper-making business is a very good startup business idea.

Since papers are used everywhere, there is always a high demand for this business. All you need is to find a place to install your papermaking machines to manufacture paper.

The most widely used sizes are A2, A3, and A4 and if you started to manufacture papers in these sizes, then you will get a chance of a good volume of business.

This business requires a small capital investment such as a maximum of Rs. 2 Lakhs for the purchase of paper-making machines and raw materials.

2. Coconut Hair Oil Production

It is a very low-cost small scale manufacturing business idea and this business can be easily started from home. There is a good market potential for hair oil because of growing awareness about naturally prepared oils among people.

You can easily start this business from home if you have a small vacant land of 1 cent or less. You can sell 1Kg of hair oil for a maximum price of Rs. 250 INR in your local market.

Dried coconut is the essential raw material for manufacturing hair oil which you can easily get from the farmers in your area.

Prepare a lease agreement and hire a coconut tree farmland for the surplus availability of coconut.

Very low capital start-up business with approximate investment around Rs. 50,000 to Rs. 1Lac.

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3. Envelope, Folder Files Manufacture

This is similar to paper-making as, paper, envelope covers, and folder files are also required by most of the establishments such as Schools, Colleges, Companies, and Industries.

They are used to file their documents and this leads to high demand for envelope covers, postcards and folder files, etc.

There are growing employment opportunities when you start this business from home either hand-made (or) by using machines.

You can start with a minimum investment of Rs. 1.5 lakhs to purchase the paper folding pressing machine and other raw materials.

Sell these envelopes, and folder files to your local supermarkets, departmental stores, and other retailers and it’s possible to generate decent revenue.

4. Soaps and Detergent Manufacturing

Soap Making Business

You know that Soaps and Detergent Powders are one of the highly moving FMCG products for every household in your area. So, it is a good idea to consider starting your own soap manufacturing business based at home.

Before starting this, get some training by yourself to learn how to manufacture soap and detergent. There are lots of DIY YouTube videos available on the Internet to learn soap making.

Learn the process and prepare for your own needs. Slowly increase the volume of your daily production and start selling in your local market.

You can either put a stall in your home for the marketing (or) appoint some field executives for selling your product at the consumer’s doorstep.

These small scale manufacturing business ideas will surely win because of the growing trend in this arena.

On the investment part, you can easily start with just Rs. 50,000 which includes purchasing raw materials, hand gloves, weighing scales, plastic bags, etc.

5. Manufacture Handmade Biscuits

If you are an expert in making biscuits, and cookies then there is a good business available where you can make a handsome second income every month.

Most of the people in India are showing interest to buy country-made biscuits even though there are many foreign-made biscuits available in the departmental stores.

So, there is a very good chance of reaching a large market if your biscuits taste better and healthier. A small marketing effort will get you a huge volume of business.

The essential raw materials are Wheat flour, a grinder, mixer, and an electric oven for the biscuit-making process and investment is very much lesser than Rs. 30,000.

6. Homemade Chocolates

Chocolate Making Business

Do you love chocolates? Even I love chocolates? Children mostly love chocolates. Its yummy taste and flavor make us feel excited to taste it.

People are fond of trying newer variants and especially homemade products which are good in taste and healthier even.

In TamilNadu, when you visit OOTY next time, don’t forget to buy some homemade chocolates and the famous OOTY VARKIE.

People living there are mostly involved in manufacturing chocolates and selling them by building small stalls in their homes themselves.

Why don’t you think of starting your own business – homemade chocolates? Put a local stall for marketing or tie-up with local bakeries, and departmental stores, or take party orders as a beginning.

7. Candle Making

This is the best small scale manufacturing business from home and it is most suitable for housewives who are searching for a good business to work on during their free time.

Candles are widely used in celebrations, functions, parties, and special occasions as decorative items.

It is also used to light up your home during power failures. Hence, there is always a demand and starting this business is a good idea.

Moreover, you don’t have to put a heavy investment to start because there are already some small manufacturers who need a franchise to grow their existing business.

Your duty is just to find them through your daily newspaper classified section (or) on the internet, and tell your interest by making a call to them.

They will install the machine and complete the other necessary setup in your places such as wax molding machine, dye, and other equipment with raw materials. The investment is very less at Rs. 20,000 only.

8. Organic Fertilizer Making

India is an agricultural country and more than two-thirds of our lands are 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 very high volume of production. Since with the growing awareness of organic fertilizers, there is always a good business lies behind this scenario.

Start a small scale fertilizer manufacturing business from your home using the organic wastes generated from your home and your neighbor’s houses.

Pack the fertilizers in small 1Kg, 2Kg, and 5kg bags and sell in your local markets (or) directly to the farmers (or) sell to nurseries.

You will get a good income and once you were successful expand your business. It’s possible to manufacture chemical-based fertilizers and it depends on your own wish.

9. Automobile Parts Manufacturing

Automobile Spares Manufacturing

Automobile Industry is one of the rapidly growing industries in India. This industry helps to create thousands of small businesses around many small and medium-sized enterprises.

If you have a skill and very good finance, then consider starting your own small automobile parts manufacturing business.

There are some high-tech machines needed to be purchased for starting this business and also a franchise offer from an OEM manufacturer.

It requires an investment of Rs. 5 Lakhs to Rs. 10 Lakhs depending on the automobile parts that are highly required on daily basis.

10. Vehicle Accessories Manufacturer

This business is similar to the automobile manufacturing business, but this is entirely a different section of the same industry.

Vehicle accessories are so-called such as seat covers for cars and bikes, steering wheel covers, air fresheners, front and rear bumpers made of aluminum and/or steel, etc.

There is a large business available in this market and consider starting a small scale manufacturing business of various above-said vehicle accessories.

Build your own car spa in your area so that vehicles can reach you directly and you will get a decent volume of business.

11. Home and Office Furniture Manufacturer

Every home and office is just a space without furniture and therefore it is considered as the essential part of every home and office.

Furniture includes tables, chairs, dining table, computer table, sofa, doors, windows, cots, wardrobes, etc is an essential part.

Thus, I recommend starting this small manufacturing business in your area with a minimum investment of Rs. 1 Lakh to Rs. 5 lakhs.

The investment is therefore required to rent a small place to work and purchase manufacturing equipment and wood.

12. Kitchen Utensils Manufacturing

Kitchen Utensils

Another most important part of every home was the kitchen and pots, kettles, pans, cookers, mixer-grinder is the essential part of kitchen utensils.

These things are not only used in home kitchens but also used everywhere in hotels, restaurants, highway inns, etc.

These utensils are used to prepare food and this leads to the constant demand for new utensils every day.

Every household will buy a new set of these kitchen essentials at some frequent intervals. Hence, starting a business in manufacturing these products will be the best idea.

You can install your own stall by renting a space in the commercial marketplace or tie up with other merchants and sell them for a profitable price.

13. Cloth Making

garment tailor

You can even think to start a small home-based cloth stitching business for schools, colleges, and industries. Housewives and stay-at-home moms can better utilize their time by taking tailoring jobs – A nice business idea for housewives.

Many schools, especially in Tamil Nadu, have made a habit of ordering bulk school uniforms from a single merchant and that’s why I am saying this as a good business if you manage to get at least one or two school orders.

Even, employees of some companies are asked to wear uniforms at their work inside the company premises, so there is always a high demand for this business.

The required capital investment will be Rs. 2 Lakhs because you need to purchase some stitching machines and raw materials such as clothes.

14. Papad Making

Appalam as we call it in Tamil and English is called Papad is a very good home-based small-scale manufacturing business idea.

Papad is a primary food item on every occasion, function, celebration, and party in Tamilnadu. Preparing them is a very simple process and it does not require much manpower.

You can easily find a market in your area with some small marketing efforts. Manufacturing Papads require basic ingredients such as wheat flour, spices, oil, etc.

Homemade Papads has a potential market and small-scale department stores are eager to buy from these home manufacturers and they sell for some high prices.

Whatever, you will earn a good volume of income every day if you start this lucrative home-based business with a small investment.

15. Homemade Panner, Ghee, and Butter

India is the world’s largest producer of milk in the current decade. In southern states of India, especially in Tamil Nadu, 5 out of 10 homes breed cattle farms such as cows, goats, buffaloes.

Ghee, Butter, and Paneer are the by-products of the milk and it has a good volume of business in the domestic market.

Many MNC manufacturing companies are competing on a large scale in this sector but most of them were using chemicals and fillers.

There is a large volume of consumers for cottage butter also called home-based butter, Ghee. So starting a small manufacturing business to produce butter, and ghee is a very good idea.

16. Incense Sticks Making

Agarbatti making

India is a Holy land and most people are highly devoted to God, they have built a lot of temples and place the god and goddess to worship.

Incense sticks aka Agarbatti’s is an essential thing and occupy the most prominent place during worshipping the god/goddess.

There is a big market in India for Holy items especially Agarbatti’s, camphor, kumkum, etc. If you planned to start a small incense stick manufacturing business, then there is a huge success waiting for you.

There is no need to invest huge money in this business, therefore it requires a minimum of Rs. 25,000 to purchase some ingredients such as Bamboo sticks and essential oils of various fragrances available on the market.

Coat the oils on the stick and let it dry for 24 hours and your Agarbatti stick is ready. You can either use machines for bulk production. Then pack in small numbers and label your brand name to sell on the market.

17. Soda/Soft Drink Manufacturing

The summer season was about to begin and the people while traveling or working, it’s usually drinking soda or any flavored drink when they get tired.

You can easily prepare such drinks at your home and put a stall in your area. This is a very good business and the best alternative for artificially flavored soft drinks.

You can sell each 300ml. A cup of soda for a price of Rs.10 is considered profitable if you manufacture it at your home by putting in your own efforts.

You can prepare for various flavors such as lemon, orange, apple, and few other variants with a decent income.

18. Readymade Chapati/Parota Making

Ready made chapati making

Chapati or Parota or roti which is made from whole wheat is a primary diet for most of the people in the southern states of India.

Especially, people in developing cities don’t find time to make breakfast or dinner and they mostly opt for store-bought ones.

It’s being a recently growing trend in selling pre-packed readymade chapatti/parota. They are coming pre-packed that are available in the departmental stores that let you make instant chapatti/parota with no time.

There are a number of growing small scale manufacturers who are involved in manufacturing these types of pre-packed chapati’s. Normally they are half-cooked and cooled at room temperature.

Starting this small scale manufacturing business from home requires a small investment of Rs. 2 Lakhs which is used to purchase the machine and other ingredients.

19. Fruit Pulp Manufacturing

Quality fruit pulp is highly required in the food industry such as star hotels, ice cream manufacturers, sweet makers, etc.

The demand for fruit sauce including tomato sauce, chilly sauce, and jam jelly is always stable throughout the year by the various food industry.

But there are not enough refrigerated trucks, and warehouses available to store and supply on demand. Hence I recommend you start this small business in your home backyard.

Different fruit pulps such as mango, and tomato are used to make ice-cream flavors, fruit jam, squashes, juices, etc.

It requires a capital investment of Rs. 10 Lakhs to purchase an Automatic Fruit Pulper machine and raw fruits, refrigeration system, etc.

20. Frozen Fruit Manufacturing

Generally, frozen fruits are highly nutrient in value and have a vast global market. There are many manufacturers across the world were involved in this business.

These fruits are used to prepare Yoghurt, Fruit Smoothies, Jam, Bakery products, and desserts. To manufacture these products, frozen fruits are highly required in a large quantity.

But the suppliers are very few because of the unavailability of awareness.

Plan to start a small unit to process dry and frozen fruits which are having a large market and you can start with a minimum investment in your home backyard.

21. Homemade Costume and Jewelry Manufacturing

Women are highly fond of wearing fashionable jewelry and costumes. They use to match these accessories to suit their dressings.

There are a lot of online shopping sites to sell custom-made costumes and fashion jewelry at a very affordable price.

Housewives are highly creative by nature and with a little knowledge, they can make their own custom homemade jewels and costumes.

Why don’t you start manufacturing in a few high volumes to sell in the market and make some money out of it?

You can start your own personal blog and showcase your products for direct selling or you can sell through these online shopping sites.

22. Disposable Plates, Cups Manufacturing

Disposable Plates Cups

In departmental stores, there is a separate section especially showcasing disposable plates, and cups for sale. These items are used to serve food at parties, functions, and occasions.

In the olden days, people were served food using banana leaves. Later the trend changed to offer ceramic-made plates, cups, spoons, etc.

Currently, disposable food-grade plastic made plates, cups, spoons, and knives are widely used at all parties, functions, and occasions.

They are highly inexpensive and disposable and consume larger quantities thus opening their doors to a large number of manufacturers.

You too can open a small scale manufacturing business to produce these kinds of products at your home.

There are small companies that offer machines to interested people and supply raw materials. Finally, they purchase the finished products and pay for them.

23. Rubber Carpet Manufacturing

The increase in the number of new restaurants, hotels, and households creates a large demand for these plastic/rubber-made carpets, table cloths, and floor mats.

These things are easy to wash and maintain, and disposable after a certain period of time. A mere wipe with soapy water is well sufficient to clean.

Plastic/rubber carpets are coming with various attractive designs which are used to decorate your places. If you don’t like it, you can easily change it with a new one.

A small investment of Rs. 2 Lakhs required to purchase manufacturing machines, chemicals, and other raw materials, is all enough to start this small-scale business.

24. Concrete Blocks Manufacturing Business

There is always a name for the construction industry with its constant boom and growth in several industries, domestic purposes, etc.

This includes the construction of the individual home, villas, and plots of large buildings for the use of commercial purposes such as malls, industrial units, schools, colleges, etc.

Hence there is always a demand for supplying concrete blocks and bricks to the building contractors on a large scale.

Since the demand is so high, you can set up a small scale manufacturing business of concrete blocks and bricks. There is a big business behind this scenario and returns are highly assured and guaranteed.

25. Bedspreads, Blankets Manufacturing

Bedspread making

Coimbatore is called the Manchester of South India and Thiruppur is the textile city of southern India. There are large know manufacturers of quality bedspreads and blankets in these locations.

There is a demand for traditional bed sheets, wool blankets everywhere in India. Manufacturing these kinds of bedroom essentials is one of the best small business ideas.

Setting up of this unit needs a quite large land to install handloom or motorized automatic looms with little manpower.

The cost of manufacturing is inexpensive but you can sell the product for decent money. The government also avails a lot of benefits to small-scale textile manufacturers such as offering loans at lower interest.

Last Few Thoughts,

Establishing a new business is the driving force of the economy of every nation and most country governments are supporting these kinds of small-scale manufacturers.

A country is said to be growing if it has a constant industrialization growth and thus it depends on creating an active manufacturing sector.

There are lots of online jobs available from home and many people were succeeding in the IT industry also. Opportunities are everywhere, if we have a true desire to find one genuine job, we can achieve success.

It is possible to scale up your business at any time if it runs successfully and surely you will get confidence in your full-time small scale manufacturing business.

It is the best alternative for the day job and also an option of self-employment. Do you have any more ideas to share with me? Write down them in the comments section below.

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Myilraj G Author OnlineHomeIncome Blog

Hi, I am Myilraj.G!

Myilraj. G is a full-time Blogger, Content Writer, and Digital Marketer. A first-generation entrepreneur started his career as a blogger in 2013.

In the last 10 years,

  • He helped 600+ individuals across India and a few outside India to start their blogging careers.
  • He also helped SMEs to create their digital presence through his impeccable Digital marketing assistance.

He owns an IT company operating from Coimbatore, Tamilnadu caters to several digital services like Domain Name Registration, Web Hosting, Website Design/Development, and Logo Designing.

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11 Comments on "25 Profitable Small Scale Manufacturing Business Ideas in India"

  1. Hello
    I am interested to start Automobile part manufacturing. Will you please help me with the total cost for this and marketing etc.
    Thanks and regard
    Danish Ali
    Nashik
    9123115380

  2. Hai,
    I am very much interested in Paper Manufacturing. I need your help with equipment and price with your support I can start my new business paper manufacturing thank you very much for giving beautiful information

  3. Thank you, sir, for sharing this information with us, this is a nice blog.

  4. I wish to start homemade manufacturing business. like papad making or any other pl guide me.

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