In India, the manufacturing sector is one of the key pillars of the economy and is a major contributor to its GDP. The sector employs millions of people and is a critical driver of economic growth.
The manufacturing industry in India has come a long way since its independence. In 1947, the country had only a handful of factories, and most of the population was engaged in agriculture. Today, India has many manufacturing businesses, ranging from small-scale enterprises to large-scale industries.
The Indian government has supported the growth of the manufacturing sector and implemented various policies and initiatives to promote its development. One such initiative is the Make in India program, launched in 2014 to make India a global manufacturing hub.
With the right mix of resources, environment, and market, starting a manufacturing business in India can be very profitable. In this article, we will look at the most profitable manufacturing business to start you can start in India.
12 Profitable Manufacturing Business Ideas In India
1 Ready-to-Eat Meals:
Food holds a special place in the hearts of Indians. However, as our lives have become increasingly fast-paced, finding the time to prepare elaborate meals has become a challenge. This is particularly true for individuals living away from home due to work or studies.
Ready-to-eat meals have emerged as a convenient solution for such situations. The market for these meals is substantial, with significant profit potential. Over the past decade, there has been a doubling in India’s expenditure on frozen foods, presenting lucrative opportunities for entrepreneurs to venture into the frozen food business. Undoubtedly, ready-to-eat meals stand out as one of India’s most promising manufacturing sectors.
The market value of the food industry
In 2020, the market was valued at $200 billion. By 2023, it grew to $250 billion, driven by urbanization and convenience. It is projected to grow at a 7% CAGR, reaching $330 billion by 2030.
Also Read:- How To Manage Equipment Loans For Restaurants
2 Agarbatti Manufacturing
Agarbatti is the Hindi name for incense sticks popularly used in religious and spiritual ceremonies in India. They are made from a mixture of aromatic plant materials, which are rolled into a stick and then dried.
Agarbatti manufacturing is a small manufacturing business to start and can be done on a small scale. The raw materials required for this business are easily available, and the manufacturing process is not very complex. The home-manufacturing business industry is growing rapidly in India and has immense potential.
The market value of the Agarbatti manufacturing industry
Valued at $8 billion in 2020, the market has grown to $10 billion in 2023, with a steady CAGR of 5%. It is expected to reach $13 billion by 2030, owing to rising exports and spiritual practices.
3 Ayurvedic Medicine Manufacturing
Ayurveda is an ancient system of medicine that originated in India. It works towards striking a balance between the body, mind, and spirit. Ayurvedic medicines are made from natural ingredients and are effective in treating various diseases.
There is a growing demand for ayurvedic medicines globally due to the rising awareness of their benefits. Manufacturing these medicines does not require complex machinery or equipment and can be done on a small scale.
The market value of the Ayurvedic medicine manufacturing industry
This market grew from $12 billion in 2020 to $18 billion in 2023, reflecting a CAGR of 12%. It is forecasted to reach $30 billion by 2030, supported by global interest in holistic health.
4 Nutraceuticals
Nutraceuticals encompass a range of products sourced from herbs, minerals, vitamins, and dietary elements, aimed at enhancing immunity and preventing diseases. The rising health consciousness and shifts in lifestyle have spurred a growing demand for nutraceutical products. Consequently, venturing into the nutraceutical manufacturing business is increasingly seen as a highly lucrative opportunity in India.
The market value of the Nutraceuticals manufacturing industry
The sector was valued at $320 billion in 2020 and grew to $400 billion by 2023. With an 8% CAGR, it is expected to reach $620 billion by 2030, driven by demand for functional foods and supplements.
5 Bamboo Furniture Manufacturing
Bamboo is an eco-friendly material that is durable, strong, and beautiful. It is increasingly being used in the manufacture of furniture and other products. Bamboo furniture has a unique look and is very popular among buyers looking for sustainable and environment-friendly products. Know more about sustainable business ideas.
The manufacturing process of bamboo furniture is not very complex and can be done on a small-scale basis. The raw materials required for this business are easily available, and the market for bamboo furniture is growing rapidly.
The market value of the Bamboo furniture manufacturing industry
The market grew from $3 billion in 2020 to $5 billion in 2023 and is projected to grow at 10% CAGR, reaching $10 billion by 2030, supported by eco-friendly living trends.
6 Beauty Products Manufacturing
The beauty industry is one of the fastest-growing industries in India. There is a great demand for beauty products, ranging from skincare to hair care and cosmetics.
Starting a business that manufactures beauty products can be a very profitable venture. The manufacturing process is not very complex, and the raw materials required are easily available. There is a huge potential market for these products in India and abroad.
The market value of the Beauty products manufacturing industry
From $450 billion in 2020 to $550 billion in 2023, this market is projected to reach $750 billion by 2030 with a 5% CAGR, fueled by innovation and self-care routines.
Also Read:- 5 Tips to Start a Small Business for Women Entrepreneurs
7 Bicycle Manufacturing
Bicycles are a popular mode of transportation in India due to their low cost and convenience. They are also used for recreation and exercise. The demand for bicycles has been growing steadily over the years and is expected to continue to grow.
The manufacturing process of bicycles is not very complex and can be done on a small scale. The raw materials required for this business are easily available. The market for bicycles is vast and has immense potential.
The market value of the Bicycle manufacturing industry
The market value grew from $60 billion in 2020 to $75 billion in 2023. It is projected to grow at a 6% CAGR, reaching $100 billion by 2030, with rising demand for e-bikes.
8 Bioplastic Manufacturing
Bioplastic is a type of plastic made from renewable plant resources such as corn starch, cellulose, or sugarcane. It is an eco-friendly alternative to conventional plastic made from fossil fuels.
Bioplastic manufacturing is a relatively new industry in India with huge growth potential. The manufacturing process is not very complex, and the raw materials required are easily available. There is a growing demand for bioplastics, both in India and abroad.
The market value of the Bioplastic manufacturing industry
Valued at $20 billion in 2020, the market reached $30 billion in 2023 and is expected to grow at a 9% CAGR, reaching $55 billion by 2030, driven by environmental awareness.
9 Candle Making
Candles are used for various purposes, from decoration to lighting. They are made from various materials, including wax, paraffin, and beeswax.
The candle-making business can be started on a small scale with simple equipment. The raw materials required for this business are easily available. The market for candles is vast and has immense potential.
The market value of the Candle making industry
The market grew from $7 billion in 2020 to $10 billion in 2023 and is projected to grow at 6% CAGR, reaching $14 billion by 2030, driven by home décor trends.
10 Carbonated Beverages Manufacturing
Carbonated beverages are very popular among people of all age groups, and they are refreshing and have a unique taste. There is a great demand for carbonated beverages in India and abroad.
Starting a business that manufactures carbonated beverages can be a very profitable venture. The manufacturing process is not very complex, the raw materials required are easily available, and there is a huge potential market for these products.
The market value of the Carbonated beverages manufacturing industry
From $350 billion in 2020 to $400 billion in 2023, this market is expected to grow modestly at 4% CAGR, reaching $500 billion by 2030.
11 Computer Accessories Manufacturing
Computer accessories are in high demand due to the growing number of computer users in India. These accessories include keyboards, mice, speakers, webcams, and more.
The manufacturing process of computer accessories is not very complex and can be done on a small-scale basis. The raw materials required for this business are easily available, and the market for computer accessories is growing rapidly.
The market value of the Computer accessories manufacturing industry
This market grew from $200 billion in 2020 to $250 billion in 2023 and is expected to reach $350 billion by 2030, with a 6% CAGR driven by remote work.
12 Confectionery Manufacturing
Confectionery products are popular among people of all age groups and are in high demand. These products include candy, chocolate, biscuits, and more.
The confectionery business can be started on a small scale with simple equipment. The raw materials required for this business are easily available, and the market for confectionery products is vast.
These are some of India’s most profitable manufacturing business ideas that can be started on a small-scale basis. Choose an idea you are passionate about and start your own manufacturing business today!
The market value of the Confectionery manufacturing industry
The market grew from $250 billion in 2020 to $300 billion in 2023 and is expected to grow at a 5% CAGR, reaching $400 billion by 2030, supported by gifting and indulgence trends.
Best Manufacturing Business Ideas in India from Home
While there is an urge to contribute to a growing economy start-up, many still refrain from creating unique products that can help them establish identities, owing to several factors – primarily, the costs. However, you don’t need to shell out much to establish a small manufacturing business – especially something you can do remotely from home. There are plenty of home manufacturing business ideas in different niches or segments that you can bring to light, including:
- Packaged food
- Candles
- Ball-pen refills
- Envelopes
- Gift items
- Bags
- Lemonade
- Nuts and Bolts
- Wood items
Steps to Start a Small Manufacturing Business In India
Those looking to set up small manufacturing hubs to leverage the start-up culture can start by digging deep on various levels and zeroing in on market trends and developments.
These days, you can start small scale manufacturing business Ideas in India in any segment, owing to multiple marketing channels that help with customer outreach, not to mention the drive to cater to an emerging start-up in the economy.
Setting up a small manufacturing business requires considering many factors. However, here are some takeaways that may come in handy when considering founding a manufacturing business.
1. The Markets
While research should penetrate different levels and segments, focusing on global and local market trends and movements can go a long way, laying the foundation for a concrete business in manufacturing. Learning about the trends and other aspects of manufacturing from different market perspectives also helps you formulate plans to set up shop and take it to the next level. You can sell your products in to wholesale business sellers. Know more about profitable wholesale business ideas.
For instance, how and where to set up plants and find investors are among a few things you will learn by studying the global and local markets.
2. The Idea
Every business starts somewhere – mainly with an idea, and knowing all you can about the manufacturing sector, will help you get that spark. So, now that you have studied the markets, identified trends, and, more importantly, a niche, you will need to develop a plan that can take your idea, or product, from conception to realization.
3. The Business
A business plan can help you realize your ideas through your products since it consists of almost every aspect, such as the operations that go into making and marketing the product, how much they cost, and how to raise funds to cover them.
Medium Investment Manufacturing Business Ideas
Medium investment small manufacturing business ideas are a great opportunity for entrepreneurs who are just starting and want to build a successful business without the need for a large initial investment. These ideas offer a variety of products that can be made with simple tools and materials, while still providing a steady stream of income.
By focusing on medium investment small manufacturing business ideas, entrepreneurs can minimize their financial risk and build a business that can grow and expand over time. In this section, we will explore some of the most promising medium investment small manufacturing business ideas that can help entrepreneurs get started on their path to success.
Sanitary Napkin Manufacturing
With increasing awareness about menstrual hygiene and the need for affordable and accessible sanitary products, the demand for sanitary napkins has been on the rise.
To start a sanitary napkin manufacturing business, entrepreneurs will need to invest in machinery and raw materials, such as pulp, gel, and cotton. They will also need to comply with regulatory requirements and quality standards to ensure the safety and effectiveness of their products.
One of the advantages of sanitary napkin manufacturing is that it is a product that is in constant demand. With approximately half of the world’s population being women, the demand for sanitary napkins is expected to continue to grow.
Also Read:- Best Successful Business Ideas For Women To Start In India
Fabric Dyeing and Printing
Fabric dyeing and printing is a small manufacturing business idea that involves coloring and decorating fabrics with various designs and patterns. This business can be started with low investment costs, making it a viable option for entrepreneurs who are passionate about design and creativity.
To start a fabric dyeing and printing business, entrepreneurs will need to invest in equipment such as dyeing vats, screens, and printing presses. They will also need to source fabric materials and dyes, as well as develop unique designs and patterns to attract customers.
One of the advantages of fabric dyeing and printing is the opportunity to produce custom-designed fabrics for a variety of purposes such as clothing, home décor, and accessories. Entrepreneurs can specialize in a specific niche or offer a wide range of products to cater to diverse customer needs.
Soy Candle Manufacturing
Soy candle manufacturing is a low & medium-investment manufacturing business idea that has been gaining popularity in recent years. Soy wax is a natural and eco-friendly alternative to traditional paraffin wax, making it an attractive option for environmentally conscious consumers.
To start a soy candle manufacturing business, entrepreneurs will need to invest in soy wax, fragrance oils, wicks, and jars or containers. They will also need to purchase equipment, such as a double boiler and a thermometer, to melt and mix the wax.
One of the advantages of soy candle manufacturing is that it can be done from home, making it a great option for those looking for a flexible and low-overhead business opportunity. It also allows for creativity and customization, as entrepreneurs can experiment with different scents, colors, and designs to create unique and appealing products.
Personalized Phone Case Manufacturing
Personalized phone case manufacturing is a small manufacturing business idea that involves creating customized phone cases for customers. This business can be started with low investment costs, making it a viable option for entrepreneurs who are creative and tech-savvy.
To start a personalized phone case manufacturing business, entrepreneurs will need to invest in equipment such as printers, phone case molds, and heat presses. They will also need to source high-quality materials such as plastic, silicone, or leather, and develop unique designs and patterns to attract customers.
One of the advantages of personalized phone case manufacturing is the opportunity to produce custom-designed phone cases for a wide range of devices, including iPhones, Androids, and other smartphone models. Entrepreneurs can specialize in a specific niche or offer a wide range of designs and styles to cater to diverse customer needs.
Moreover, personalized phone cases have become a popular fashion accessory, and many consumers are willing to pay a premium for high-quality and unique designs. This presents an opportunity for entrepreneurs to offer a value proposition that differentiates them from competitors.
Handmade Craft Manufacturing
Handmade craft manufacturing is a small manufacturing business idea that involves creating unique and personalized crafts such as jewelry, accessories, home décor, and other handmade items. This business can be started with low investment and manufacturing costs and can be operated from home, making it an ideal option for creative entrepreneurs who want to turn their hobby into a profitable venture.
To start a handmade craft manufacturing business, entrepreneurs will need to invest in equipment such as crafting supplies, tools, and materials. They will also need to develop their skills and creativity to create unique and high-quality crafts that appeal to customers.
One of the advantages of handmade craft manufacturing is the opportunity to create personalized and custom-designed products that cater to diverse customer needs. Entrepreneurs can specialize in a specific niche or offer a wide range of designs and styles to attract customers.
Also, handmade crafts have become increasingly popular as consumers seek unique and personalized products that stand out from mass-produced goods. This presents an opportunity for entrepreneurs to offer a value proposition that differentiates them from competitors.
Customized Sticker Printing
Customized sticker printing is a small manufacturing business idea that involves creating unique and personalized stickers for individuals and businesses. This business can be started with low investment costs and can be operated from home, making it an ideal option for creative entrepreneurs who want to turn their artistic skills into a profitable venture.
To start a customized sticker printing business, entrepreneurs will need to invest in equipment such as a vinyl cutter, printer, and sticker paper. They will also need to develop their design skills and creativity to create unique and high-quality stickers that appeal to customers.
Overall, customized sticker printing is a promising small manufacturing business idea that allows entrepreneurs to express their creativity while also meeting the growing demand for personalized and unique sticker products.
Strategies For Small Manufacturing Business Sector
All manufacturing businesses, large corporations, or small-scale industries incorporate different strategies into their production and promotion processes. However, there are three main strategies that most small manufacturing businesses use for their production processes.
Make-to-Stock (MTS)
This strategy works based on consumer demand. In this, manufacturers use customer experience and purchase data, incorporating them into their production activities, to forecast sales.
Make-to-Order
This strategy allows manufacturers to develop custom products tailored to deliver personalized experiences. In this, customers can pre-order products they want by specifying their requirements.
Make-to-Assemble
Manufacturers implement the make-to-assemble technique to stock the components required to make different products, depending on demand.
So, you can set up profitable manufacturing businesses in almost any niche or segment without much investment. You can become an entrepreneur and give a name to your company if you are prepared to take the necessary steps and deal with the setbacks, or you could also set up a home-based business that can support your livelihood.
Also Read:- 8 Profitable Rural Business Ideas for Village Areas in India
FAQs
Which manufacturing business is most profitable?
Here Are Some Of The Most Profitable Manufacturing Business To Start in India:
- Speciality, Bulk, and Pharma Chemicals: …
- Agro and Food Chemicals: …
- Construction Chemicals: …
- Consumer Electronics and Mobile Accessories: …
- Renewable Energy, Solar and Electric Vehicles: …
- Pharma and Medical Disposable Products:
How can I start a manufacturing business?
Starting a manufacturing business involves several key steps:
- Identify a profitable product or niche based on market demand and your interests.
- Conduct market research to understand the competition, customer needs, and potential profit margins
- Secure funding through personal savings, loans, or investors, depending on the scale of your business.
- Ensure you comply with all legal requirements, including registering your business, obtaining licenses, and adhering to health and safety regulations.
- Develop a product with a good marketing strategy to promote your products and create a customer base.
Which is best manufacturing business in India under 10 lakh?
- Papad and Pickle Manufacturing
- Handmade Soap Manufacturing
- Bamboo Products
- Customized T-shirt Printing
- Stationery Manufacturing
- Jute Bag Manufacturing
List of manufacturing business ideas under 50 lakhs?
Here are some manufacturing business ideas in India that can be started with an investment under ₹50 lakhs:
- Food Processing Units
- Packaging Solutions
- Construction Materials
- Textile and Apparel
- Personal Care and Hygiene
- Agro-Based business
- Electronics and Electrical
- Automotive Components