Do you want to start a business in the chemical industry? If so, you are in the right place. Here in this article, we have listed lucrative small-scale chemical business ideas with high-profit potential.
The Indian Chemical Industry comprises both small and large-scale units, and presently, there are about 70,000 chemical manufacturing units located in the country. A major component (in numbers) is covered in the small-scale sector.
Is Chemical Business Profitable?
The chemicals industry in India is the largest consumer of its own products, consuming 33% of its output. With promising growth trends in the chemicals industry, this internal consumption is also set to rise.
The government recognizes the Chemical industry as a key growth element of the Indian economy. In the Chemical Sector, 100% FDI is permissible. Manufacturing of most of the chemical products is de-licensed. The entrepreneurs need to submit only IEM with the DIPP provided no locational angle is involved. The market potential for small-scale chemical product manufacturing is huge.
The Industry is contributing around 6-7% of the Indian GDP(Gross Domestic Production). It touches our lives in many different ways. Whether it is thermoplastic furniture we use, a synthetic garment we wear, or a drug we consume – we all are inextricably linked to it.
You will find different pros and cons also in the following aspects of the Indian Chemical Industry. Such as;
- High domestic demand potential
- The high degree of fragmentation and small scale of operation
- Limited emphasis on exports due to domestic market focus
- Low-cost competitiveness as compared to other countries due to a higher cost of power and other utility, import duties, taxes, higher cost of capital and raw material, and poor infrastructure facility
- Low focus on R&D despite innovative processes to synthesize products cost-effectively.
This industry has key linkages with several other downstream Industries also. Such as Automotive, Consumer durable, Textile, Engineering, and Food processing.
Here we accumulate highly profitable chemical business ideas for your ready reference. You can develop all these chemical business ideas on a small-scale basis with moderate capital investment.
List of 50 Lucrative Chemical Business Ideas
#1. Agarbatti Making
You can start Agarbatti or incense sticks-making business on a small scale. The business demands very small startup capital investment. Generally, the Asia Pacific region is the largest producer and consumer of incense. Additionally, this is a traditional product. Basically, people burn Agarbatti for religious purposes. It is an essential item in every household, temple, etc.
#2. Acid Production
Different types of acids have several applications in industries and laboratories. Hence, there is always a great demand for different types of acids. The acid production business demands moderate capital investment. You will need to establish the unit with machinery and procure the raw materials for starting this business in the chemical industry.
#3. Air Freshener Production
Different types of air fresheners have a wide and large market. Additionally, it comes as a spray-type, gel-type, or sometimes as a liquid. The manufacturing process is not complex. And you can start an air freshener production business with a small capital investment.
#4. Bleaching Powder Production
Actually, bleaching powder or Chlorinated Lime is a yellowish-white powder. Additionally, it is easily soluble in water. However, the chlorine content of bleaching powder varies from 35 – 40%. Generally, people use bleaching powder as a bleaching agent and as a disinfectant.
#5. Bubble Packing Paper Manufacturing
Air Bubble Wrap Sheets are flexible and transparent plastic sheeting containing numerous small air pockets. The sheets offer cushion and scratch protection far superior to packing paper and are used to protect items during shipping and storage. You can start this bubble packing paper manufacturing on a small-scale basis even from home.
#6. Candle Making
A candle-making business from home is a very lucrative money-making option for any individual. Especially, it is lucrative for housewives, moms, and even students. Definitely, you can earn some extra money or side income from this home-based business. However, in starting the business, you need some resources for knowing the ins and outs of the business.
#7. Caustic Soda Production
In caustic soda production, you will need to procure common salt as the primary raw material. Generally, you can produce caustic soda by the electrolysis of sodium chloride solution using one of three cell types. These are Mercury, the diaphragm, and membrane cells. The electrolysis process produces 2.25 tonnes of 50% caustic soda with each tonne of chlorine.
#8. Celluloid Production
You can produce celluloid from a mixture of different types of chemicals. The list includes nitrocellulose, camphor, alcohol, as well as colorants, and fillers depending on the desired product. Generally, you can produce celluloid from nitrocellulose and camphor, with added dyes and other agents.
#9. Cement Plant
Basically, cement is one of the most important ingredients in the construction industry. Hence, it is a lucrative business opportunity for entrepreneurs who want to start a business in the chemical industry. However, for initiating a mini cement plant you will need to invest substantial startup capital.
#10. Ceramic Colour Manufacturing
Actually, the ceramic colors are pigments based on Zirconium. This type of pigment has direct use in enamel slip, pottery, colored wall tiles, sanitary ware, etc. Zirconium-based yellow, blue, green, and pink stains are used directly for producing colored wall tiles. You can start different types of ceramic color production businesses on a medium and large-scale basis.
#11. Ceramic Glazed Tiles Production
Basically, ceramic glazed tiles production allows manufacturers to produce an unlimited assortment of colors, hues, and designs. The glazing also protects the tile from staining from dirt, grime, and water. Zirconium-based yellow, blue, green, and pink stains are used directly for producing colored ceramic glazed tiles.
#12. Chemical Dye Production
Actually, a dye is used to impart color to materials of which it becomes an integral part. An aromatic ring structure coupled with a side chain is usually required for resonance and thus to impart color. Various industries including textile, soap, detergent, beauty, and healthcare industries are the major consumers of chemical dye.
#13. Chemical Etching on Wood
Chemical etching is a process involving artistic imagination to use the natural grain patterns on wood/waste wood to advantage. You can draw any sort of design and motif on the wood surface. Nowadays, this is very popular for doors, windows, and even for table surfaces.
#14. Chemical Export-Import
This is a traditional business. Additionally, it is one of the most lucrative chemical businesses for entrepreneurs too. You can start chemical export or import business depending on the local market demand and your investment capacity.
#15. Cosmetics Store
A small cosmetics store ensures good revenue for investors. Additionally, you can start a cosmetics store with a small capital investment. The business is also perfect for women entrepreneurs. However, like with any other retail business, location plays a very crucial role in this business too.
#16. Detergent Powder Manufacturing
Detergent and washing powder are surfactants. And washing powder is an important ingredient for cleaning and washing purpose. Basically, the small-scale manufacturing process involves mixing and packing operations. You can start a small-scale detergent powder manufacturing business with a small startup capital investment.
#17. Dish Wash Bar – Liquid Making
Dish wash bars and liquids are popular consumer items globally, Apart from domestic use, hotels restaurants, and different other institutions use these items for cleaning kitchen utensils. However, the manufacturing process is simple. And you can start this production business with a small capital investment.
#18. Ewaste Recycling
E-waste stands for electronic waste. Generally, the electronic items which we can reuse, recycle, resale, or dispose of are potential e-waste items. Nowadays, e-waste includes a wide list of materials. Such as computers, office electronic equipment, entertainment device electronics, mobile phones, television sets, air conditioners, and refrigerators. You can start an e-waste recycling business with a small capital investment.
#19. Face Wash & Toner Production
Face wash and toners are beauty products. and most women use them on a regular basis. Nowadays, there are specific face washes and toners available in the market even for men. Undoubtedly, the demand for good quality face wash and toner is increasing globally. However, you can start a small-scale production unit with moderate capital investment.
#20. Fertilizer Distribution & Retail
Fertilizer distribution and retail are traditional businesses in both developing and developed countries. Additionally, revenue-wise the business is lucrative for the new entrepreneurs. Depending upon your investment capacity, you can start either distribution or retail and sometimes both.
#21. Fertilizer Manufacturing
Basically, fertilizer manufacturing is a large-scale business. Establishing a manufacturing unit demands a large area of space, huge machinery installations, and a regular supply of raw materials. Broadly, there are two different types of fertilizers. One is a single nutrient or stratic fertilizer and another is multi-nutrient fertilizer.
#22. Fire Extinguishers Production
Globally, fire extinguishers have several uses. Demand for the Fire Extinguisher Manufacturing industry increased over the past five years, as the rekindling of the US housing, construction, and industrial sectors helped fuel industry growth. The construction of new private, public, commercial, and residential structures generally translates into higher industry sales.
#23. Herbal Soap Making
The demand for different types of herbal soaps is increasing very fast. Because of the rising awareness of harmful chemical soaps, people are more and more choosing herbal soaps for regular use. The herbal soap manufacturing process is very simple. Even, you can start the production at home also.
#24. Leather Polish & Shiner Production
Leather polish and shiners have a large market worldwide. As the demand for leather fashion items including footwear is increasing very fast, the demand for polish and shiner is also growing. With a moderate startup capital investment, an entrepreneur can start this business.
#25. Liquid Soap Making
Actually, liquid soap is a consumable item. Additionally, there are different types of liquid soaps you will find in the market. The list includes liquid detergent, liquid handwash, face wash, etc. The liquid soap-making process is simple. Additionally, you can start the business on a small-scale basis also.
#26. Lubricant Production
Lubricant production is definitely a lucrative opportunity for entrepreneurs who want to start a business in the chemical industry. However, you can start the business on a medium or large-scale basis. As per the U.S. Department of Energy, more than 70% of electricity consumed in the industry comes from electric motors. And the motor life depends on bearing life and bearing life depends on proper lubrication, making this a great place to start your lubrication reliability efforts.
#27. Lubricant Retail Shop
This is another chemical-related retail business you can start with a small capital investment. A small lubricant shop can generate lucrative revenue. Additionally, you can sell different other automobile-related items from the same store.
#28. Matchstick Manufacturing
If you want to start a small-scale chemical-related business, you can consider starting a matchstick manufacturing business. With a very small capital investment, you can start this business even from home. However, check the local laws before commencing the unit.
#29. Micronutrient Manufacturing
Micronutrients are the major important agricultural inputs. Some of the most popular items are Zinc, Boron, Iron, Copper, etc. You can start a micronutrient manufacturing business for both soil use and foliar spray. It is a highly profitable chemical-related business.
#30. Nail Polish Making
Nowadays, nail polish is a very popular beauty product among every age group of women. Additionally, nail polish comes in different colors and different types. These are mat finish, glittering, etc. The nail polish manufacturing process is simple. And you can start this business on a small-scale basis.
#31. Naphthalene Balls Making
Generally, you can produce these balls from naphthalene flakes with a tablet-making machine. Basically, this type of machine has ball shape die. Having little knowledge about the technical know-how any individual can initiate the business as home-based also.
#32. Nylon Production
You can start a nylon production business on a medium and large-scale basis. Basically, nylon production demands specific skills and knowledge about the production process and raw materials. However, the business is highly profitable for new chemical entrepreneurs.
#33. Organic Chemical Production
There are four main product segments within the Organic Chemical Manufacturing industry. The list includes cyclic organic crudes and intermediate products; ethyl alcohol; gum and wood chemicals; and all other basic organic chemical products. Organic chemicals are carbon-based compounds bonded to hydrogen; they are also known as hydrocarbons. Generally, it is a large-scale industry.
#34. Paint Production
The paint market is big. Additionally, there are different types of paints for different uses. Some of the major include automobile paint, wall paint, aluminum paint, acrylic copolymer emulsion, acrylic emulsion paints, etc. You can start a paint production business on a medium or large-scale basis depending upon your investment capacity.
#35. Paint Shop
This is another chemical-related retail business you can start with moderate capital investment. Generally, paint manufacturing companies offer distributor, dealer, and retailer options area-wise. Even, you can start both the distribution and retail from the same store.
#36. Paper Milling
Basically, a paper mill produces paper from wood pulp and other special ingredients. This is accomplished through a variety of special machines, including a tree chipper, a digester, and a Fourdrinier machine. Though the business is highly capital intensive, you can start a mini paper milling business with moderate capital investment.
#37. Perfume & Body Spray Production
Worldwide, the perfume and body spray market is increasing very fast. Almost every age group of people uses these items regularly. Hence, these items have already a good market. You can start the production and packaging of perfume and body spray items on a medium or large-scale basis.
#38. Pesticide & Insecticide Production
Pesticides and insecticides are important agricultural inputs. Basically, these items are used to prevent, destroy, repel, attract, sterilize, and mitigate any insects. Generally, pesticides are used in three sectors viz. agriculture, public health, and consumer use.
#39. Pet Jar & Bottle Production
Generally, pure PET does not involve, reacting with the food or beverage which is kept within the container. Therefore, PET complies with international food contact regulations. Additionally, durability and lightweight are the major reasons for its popularity. The manufacturing process is simple.
#40. Pharmaceutical Company
Starting a pharmaceutical company is a lucrative proposition for entrepreneurs who want to start a business in the chemical industry. Generally, a full-scale pharmaceutical company produces different types of medicines including tablets, capsules, syrups, etc. However, starting a pharmaceutical company demands substantial capital investment.
#41. Phenyl Production
Generally, phenyl or phenol is a cleaning product. Additionally, it has disinfectant and deodorizing properties. Basically, the item is used in homes, hospitals, nursing homes, offices, hotels, restaurants, schools and colleges, railway stations, and other such places of human inhabitation. The manufacturing process is also simple.
#42. Rubber Band Making
Rubber bands are very useful items. You can start a rubber band-making business with a small capital investment. The manufacturing process is simple. And the manufacturing involves single-machine use. Even, you can start this business at home.
#43. Rubber Gloves Manufacturing
Actually, the medical industry, automobile industry, and manufacturing industry including food processing industries are the major consumers of rubber gloves. With some sort of prior experience and skill, you can start a rubber glove manufacturing business on a small or large scale basis.
#44. Shampoo & Hair Conditioner Production
Shampoo and hair conditioners both are beauty products. Almost every age group of people uses these items regular basis. However, you can start the production unit on a small, medium, or large-scale basis. Actually, a 1000 Sq Ft area is sufficient for starting this production business.
#45. Soap Making
Broadly, you can start a soap-making business in two ways. One is the home-based basis and the other is the small-scale manufacturing unit operation. Basically, a commercial-scale soap-making business requires machinery and a manufacturing unit. However, you can produce different types of homemade organic soaps at home.
#46. Talcum Powder Production
Talcum powder is a beauty product. And there are different types of talcum powders for men and women. However, the production process is simple. And you can start the talcum powder production business on a small and medium-scale basis.
#47. Textile Printing
The textile printing unit is another lucrative business for entrepreneurs who want to start a business in the chemical industry. Basically, almost every fabric needs different types of printing and dying. You can start the business on a small or medium scale basis with moderate startup capital investment.
#48. Toothpaste and Mouthwash Production
Almost every human being on this globe uses toothpaste and mouthwash on a regular basis. Therefore, these items have already a good market. The business is highly profitable. And you can start the business on a medium or large-scale basis.
#49. Tyre Manufacturing
Tyres are mandatory items for every vehicle. Additionally, tyres have a certain lifespan. Therefore, the tyres need frequent changes. It creates the tyre industry highly profitable for entrepreneurs. However, the business demands substantial capital investment and strategic planning.
#50. Weedicide Manufacturing
Weedicides are one of the most important agricultural inputs. Basically, weedicide helps to remove weeds from the crop field. You can start a weedicide formulation business on a small-scale basis. However, you must conduct market research before commencing the business.
Polymers and agrochemical industries in India present immense growth opportunities. Also, the Indian Govt. permits 100% FDI through an automatic route. Hence, it is an ideal time to start a business in the chemical industry for aspiring entrepreneurs.
The chemical industry is wide and very lucrative. Additionally, the industry runs under constant technical upgradations too. Before, commencing any sort of chemical-related business, you must fix the target audience and the right marketing strategy.
Rupak is the founder of MUVSI. He is a small business consultant by profession. His mission is to make people know how to make money and understand personal finance for a better living.