written by Khatabook | January 25, 2022

Successful Small and Micro Manufacturing Business Ideas in India

The Indian business ecosystem is built on small-scale product manufacturing. It accounts for a significant portion of GDP in the Indian economy. Globally, product production is a thriving industry. It is among the most lucrative revenue-generating industries. On the other hand, starting a manufacturing company necessitates an upfront capital expenditure. Machinery, equipment, raw materials, labour, and marketing are all required for capital investment. This article will discuss some small scale manufacturing business ideas that will inspire you to pursue your dream of starting a small scale business.

Did you know? The loan disbursal to MSME (Micro Small & Medium Enterprises) in the financial year 2020-21 was ₹9.5 trillion (US$ 128.06 billion), up 40% from ₹6.8 trillion (US$ 91.66 billion) in the previous financial year.

Starting a small scale business

It is preferable to begin a small manufacturing business if you have some capital required for investing. There are several small manufacturing business ideas in India that you can start with little money. Micro manufacturing enterprises are frequently in high demand in the market, and their prices are also inexpensive, resulting in Small Scale Advantage. Business expands at a rapid pace. To succeed in a good position, a business needs confidence and stability. The most important thing is that you need knowledge about any industry you want to start so that you can take it to the next level.

Best manufacturing business in India

Here are some of the most profitable manufacturing business ideas in India:

1. Sauce Manufacturing

Chilli and ginger garlic paste is a ready-to-cook cooking ingredient gaining much traction in urban and suburban areas. Because an increasing number of individuals work outside, they prefer to use a pre-made spice mix rather than raw ingredients. Manufacturing ginger garlic paste is a simple business to start. A small-scale operation also necessitates a low-capital investment.

Also Read: Super Tips To Start A Small Business By Yourself 

2. Making Spice Powder

You can start a spice processing and packaging business on a modest scale. You can start the firm on a small, medium, or large scale, depending on your investment capability. Spice is an essential component of any recipe. Individual spice powders such as chilli, cumin, and turmeric and blended powders such as chicken masala, curry masala, etc., can be used to start a manufacturing business.

3. Handmade Organic & Exotic Soaps

Soap and detergent manufacture is one of the small manufacturing businesses in India that can be launched with just ₹2.5 lakhs. In the Indian market, there is a big need for soaps and detergents, and thanks to the branding value of corporations, customers can acquire regular soaps at more than reasonable prices. The profit margin in the soap-making industry is fairly high, and you can sell it in bulk online by selling it on B2B sites. Furthermore, there is a growing desire for organic and exotic soaps in India's metropolitan and urban cities. You can manufacture these products at a consumer-friendly price for the middle class and financially lower-class individuals if you start a soap and detergent-producing firm.

4. Surgical Cotton

Cotton is a soft fibre that forms in the form of a ball around the cotton plant's seeds. Surgical cotton is sometimes known as "cotton wool" or "absorbent cotton." Cotton that has been cleaned, de-oiled, and bleached is packed in various sizes as surgical/absorbent cotton. India now produces the broadest variety of cotton. Surgical absorbent cotton demand is closely tied to population growth and the expansion of public health services. Government hospitals and large nursing homes mostly consume cotton wool. By 2022, India's healthcare sector is anticipated to be worth ₹8.6 trillion. In general, any entrepreneur can profit from this enterprise without taking risks.

5. Jute Bags

Jute fabrics are stronger, more durable, lighter, more appealing, and less expensive than fabrics composed of other fibres. You'll need a simple sewing machine and a cutting machine to make jute bags. There is high demand for jute bags because they are environmentally-friendly and sustainable. Therefore, there is a lot of potential in exporting these bags. Cotton threads and jute fibre cloth are the raw materials needed to make jute bags. It can be transported by packing it in a basic box.

The global jute bag market was worth US$1.4 billion in 2016, with a CAGR of roughly 11% between 2009 and 2016. By 2022, the Indian market is expected to be worth more than ₹190 crores. Every year, Indian shopping bag exporters ship millions of jute bags. These trends indicate that this number will continue to rise significantly. As jute is largely found in West Bengal, it is one of the top manufacturing business ideas in Kolkata. Any entrepreneur can invest in this project without fear and earn a decent profit.

6. Sanitary Napkins

Sanitary napkins are classified as nonwoven fabrics, classified as technical textiles as a whole. In India, the market for sanitary napkins is expected to grow by 18% to 20% in the upcoming years. As a result, it is best to invest in this project due to demand. Overall, setting up a Sanitary Napkin factory is an excellent small factory idea since there is a lot of room for new entrepreneurs to engage in this sector, and there is an increasing need for Sanitary Napkins, especially among millennials.

7. Toys

Young people make up the majority of India's consumer base. It's no surprise that the toy sector grows as disposable incomes rise. It's simple to establish a small-scale toy-making business because raw materials are readily available and have low labour expenses. In addition, Indian states are devising incentives to encourage the toy industry. If you have the appropriate skills to make toys, this may be a lucrative venture.

8. Candle Making

Candle making is an excellent idea f or a small manufacturing business from home. This is because the candle-making industry is a popular small-scale manufacturing business that can be established with little money. You'll need roughly ₹3.5 lakhs rupees in inve stment money to establish a candle-making business on a small scale. Proper marketing methods and audience targeting will yield a large profit in a short time.

You can offer various types of candles on the domestic and international markets. The Indian government promotes the "Make in India" campaign, which includes the candle industry. The easiest way to sell your goods across the country and find potential and legitimate consumers for your candles in bulk is to use B2B platforms.

9. Incense Sticks

Again, this small manufacturing business is gaining a large market in India and internationally. Agarbatti making is one of India's most profitable small manufacturing business ideas. If you want to discover the true potential of this business, it is recommended to speak with someone who is already doing it.

Incense sticks and agarbatti are in high demand in India and other countries. Since few people are making agarbatti and incense sticks, there is significant scope for starting a small manufacturing business. You'll need only ₹80,000 to ₹1,50,000 to establish a small-scale agarbatti manufacturing business.

The profit margin for selling agarbatti is around ₹10 per kilogram; therefore, if you export 200 kg of agarbatti per day, your daily net profit can be around ₹2,000. You can anticipate that you will recoup your investment within a year, and consumers are readily available for this industry due to a shortage of manufacturers.

10. Staple Pin Making

The production method for staple pins is straightforward. Furthermore, you can start the business on a modest scale from home. In general, you can make a staple pin out of white galvanized iron wire.

Using high-quality iron wire ensures the creation of high-quality, long-lasting staple pins. It is advisable to improve the product's market reputation. However, you may start a staple pin manufacturing firm on a low budget and with minimal infrastructure.

11. Designer Lace Manufacturing Business

Designer lace-making businesses can be started from home with relatively modest initial capital. Lace is a craft material used in textile and clothing design. Lace was traditionally made by hand using needles.

Nowadays, machine-made lace has mostly supplanted hand-made lace. Several machines are now available to create lace by machine. The growing need for fashion clothes has raised the market for designer lace, one of the top small scale business manufacturing ideas.

12. Bakery Manufacturing Business

One of the most successful food processing business options that can be started with either owned or rented premises is a bakery. Choosing the right product and developing an effective marketing strategy are critical factors in achieving success in the bakery industry.

Despite the introduction of modern, big capacity, and automatic biscuit manufacturing machines, a considerable portion of the population still prefers fresh biscuits from the local bakery since they are inexpensive and come in a variety of flavours; hence, it is considered to be the best manufacturing business in India. You will need to select certain goods for your bakery business based on demand and cost considerations.

Also Read: How To Open A Bakery Business In India? - Tips To Generate Extra Revenue!

13. 3D Printer Manufacturing

Manufacturing 3D printers have the potential to be a large business. If you need to work on multiple levels, you should start a 3D printing manufacturing business. It will come in handy on numerous occasions. Today, 3D printing technology enables us to create virtually any form of project. 3D print printing is now considered a highly helpful tool in the present time. In a nutshell, 3D printing is employed in sculpture, the medical business, the automobile industry, architecture, gaming industries, cuisine, the garment and animation industries, and even agriculture.

As 3D printing is a new technology, its demand will rise further in the future years. If you run a 3D printer manufacturing business, you can become a successful entrepreneur.

14. Mineral Water Plant

Water is a crucial part of our daily lives, and many firms and individuals are investing in the mineral water production industry. The most critical aspect of running a mineral water business is a valid license. You must assemble a dependable team because there is a great chance of obtaining contaminated water or polluting the water during the packaging process if necessary precautions are not taken.


Now, you can choose a niche and start your own small manufacturing business. Finding business ideas to start a small manufacturing firm can be difficult if you don't realize its potential. So, in this post, we have evaluated the feasibility of some of the most profitable small business ideas for manufacturing for you to reach such conclusions. The manufacturing company ideas in India listed above are in high demand now and in the future. 

For the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting, follow Khatabook.


Q: What are the new industrial business ideas in India?


The business industry has evolved tremendously, particularly in the last few years. New manufacturing concepts such as making handmade biscuits, coconut oil manufacture, exotic chocolates, and so on are some ideas behind beginning a small-scale business that many people are passionate about. Making these products is less expensive, and the profit margin is also favourable.

Q: What are my tax duties, and can I get tax reductions or incentives for starting a manufacturing business?


This is another critical consideration. The government heavily regulates the manufacturing industry in India. Furthermore, different items are subject to varying registration and licensing requirements. And the majority of them require quarterly or annual return filing. You also need to check the tax factors before starting a manufacturing business.

Q: What is my product's market, who will buy it, and how will I sell it?


It is recommended that you undertake market research on your product. Analyze and narrow down your target demographics, and create a marketing strategy based on that. It would help if you had a marketing plan to launch a small, medium, or large-scale firm.

Q: Is it possible for me to get a loan for a small business?


You certainly can. The government offers loans to small business owners through several initiatives, ranging from ₹50,000 to ₹10 lakh.

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