Best 55 Small Manufacturing Business Ideas in India

India is a country of opportunities, more so for entrepreneurs who wish to start a small manufacturing firm. It is a manufacturing boom time with an expanding economy, increasing product demand, and government support. If you are a new or experienced entrepreneur, the following are some of the best small manufacturing business ideas in India that can be started with low initial investment.

1. Agarbatti (Incense Sticks) Making

Agarbatti making is one of the most profitable small-scale manufacturing businesses in India. It requires minimal investment and can be started from home. The demand for incense sticks is high due to their use in religious and cultural practices.

Why It Works: Low startup cost and high demand.
Cost to Start: ₹50,000 – ₹1 lakh (raw materials and hand-operated machines).
Income Potential: ₹20,000 – ₹50,000 per month.

2. Paper Product Manufacturing

Paper products like notebooks, tissue paper, and paper bags are essential in daily life. With the ban on single-use plastics, paper bags are in high demand. You can start a small manufacturing unit with simple machinery.

Why It Works: Eco-friendly and growing market.
Cost to Start: ₹1-2 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

3. Detergent Powder Making

Detergent powder is a daily necessity for households and businesses. The manufacturing process is simple, and you can start with small-scale production.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (raw materials and packaging).
Income Potential: ₹25,000 – ₹75,000 per month.

4. Candle Making

Candle making is a home-based business that requires minimal investment. Candles are used in homes, restaurants, and religious places. You can create scented or decorative candles to attract customers.

Why It Works: Low-cost and creative business.
Cost to Start: ₹20,000 – ₹50,000 (raw materials and molds).
Income Potential: ₹10,000 – ₹30,000 per month.

5. Coconut Oil Production

Coconut oil is widely used in cooking, cosmetics, and pharmaceuticals. If you live in a coconut-growing region, this business can be highly profitable.

Why It Works: There is a high demand for natural products.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

6. Spice Powder Making

India is known for its spices, and spice powder is a staple in every kitchen. You can start a small unit to grind and package spices like turmeric, chili, and cumin.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (grinding machinery and packaging).
Income Potential: ₹20,000 – ₹50,000 per month.

7. Plastic Product Manufacturing

Plastic products like containers, bottles, and household items are widely used. You can start a small unit to manufacture specific items like toys or packaging materials.

Why It Works: High demand and versatile products.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

8. Soap Making

Soap making is a simple and profitable business. You can create handmade soaps using natural ingredients like coconut oil, aloe vera, and essential oils.

Why It Works: Growing demand for natural products.
Cost to Start: ₹50,000 – ₹1 lakh (raw materials and molds).
Income Potential: ₹15,000 – ₹50,000 per month.

9. Biscuit and Cookie Making

Biscuits and cookies are popular snacks in India. You can start a small unit to produce these items and sell them locally or online.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (oven, raw materials, and packaging).
Income Potential: ₹20,000 – ₹60,000 per month.

10. Leather Product Manufacturing

Leather products like bags, slippers(Hawai Chappals), shoes, and belts are always in demand. You can start a small unit to produce high-quality leather goods.

Why It Works: High-profit margins and export potential.
Cost to Start: ₹2-5 lakhs (raw materials and tools).
Income Potential: ₹30,000 – ₹1 lakh per month.

11. LED Bulb Manufacturing

LED bulbs are energy-efficient and widely used. With government initiatives promoting energy-saving products, this business has great potential.

Why It Works: High demand and government support.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹25,000 – ₹75,000 per month.

12. Ceramic Tiles Manufacturing

Ceramic tiles are used in construction and interior design. You can start a small unit to produce tiles for local markets.

Why It Works: Growing construction industry.
Cost to Start: ₹5-10 lakhs (machinery and raw materials).
Income Potential: ₹50,000 – ₹1.5 lakhs per month.

13. Chalk Making

Chalks are essential in schools and the tailoring industry. The manufacturing process is simple and requires minimal investment.

Why It Works: Low-cost and steady demand.
Cost to Start: ₹50,000 – ₹1 lakh (raw materials and molds).
Income Potential: ₹10,000 – ₹30,000 per month.

14. Rubber Product Manufacturing

Rubber products like tires, seals, and mats are widely used. You can start a small unit to produce specific items.

Why It Works: High demand and versatile products.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

15. Jute Bag Making

Jute bags are eco-friendly and in high demand due to the ban on single-use plastics. You can start a small unit to produce jute bags.

Why It Works: Eco-friendly and growing market.
Cost to Start: ₹1-2 lakhs (raw materials and sewing machines).
Income Potential: ₹20,000 – ₹50,000 per month.

16. Disposable Plate and Cup Making

Disposable plates and cups are widely used in catering businesses. You can start a small unit to produce these items from paper or biodegradable materials.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (machinery and raw materials).
Income Potential: ₹20,000 – ₹50,000 per month.

17. Furniture Manufacturing

Furniture is always in demand, especially in urban areas. You can start a small workshop to produce affordable and stylish furniture.

Why It Works: High demand and customization options.
Cost to Start: ₹2-5 lakhs (tools and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

18. Herbal Cosmetics Manufacturing

Herbal cosmetics are gaining popularity due to their natural ingredients. You can start a small unit to produce items like creams, shampoos, and soaps.

Why It Works: There is a growing demand for natural products.
Cost to Start: ₹1-2 lakhs (raw materials and packaging).
Income Potential: ₹20,000 – ₹50,000 per month.

19. Packaged Drinking Water

Packaged drinking water is a necessity, especially in urban areas. You can start a small unit to produce and supply bottled water.

Why It Works: High demand and steady income.
Cost to Start: ₹5-10 lakhs (purification plant and packaging).
Income Potential: ₹50,000 – ₹1.5 lakhs per month.

20. Naphthalene Ball Making

Naphthalene balls are used as household preservatives and deodorants. The manufacturing process is simple and requires minimal investment.

Why It Works: Low-cost and steady demand.
Cost to Start: ₹50,000 – ₹1 lakh (raw materials and molds).
Income Potential: ₹10,000 – ₹30,000 per month.

21. Phenyl Making

Phenyl is a widely used disinfectant in homes, offices, and hospitals. The manufacturing process of phenyl is simple and requires minimal investment.

Why It Works: High demand and low competition.
Cost to Start: ₹50,000 – ₹1 lakh (raw materials and packaging).
Income Potential: ₹15,000 – ₹40,000 per month.

22. Cotton Buds Making

Cotton buds are essential household items used for personal care and cleaning. You can start a small unit with simple machinery.

Why It Works: Low-cost and steady demand.
Cost to Start: ₹1-2 lakhs (machinery and raw materials).
Income Potential: ₹20,000 – ₹50,000 per month.

23. Exercise Book Manufacturing

Exercise books are essential for students and are always in demand. You can start a small unit to produce and supply these books to local schools and stores.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (paper, binding machines, and packaging).
Income Potential: ₹20,000 – ₹50,000 per month.

24. Aluminum Foil Making

Aluminum foil is widely used in packaging and cooking. You can start a small unit to produce and supply aluminum foil to local markets.

Why It Works: High demand and versatile applications.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

25. Paper Cup Making

Paper cups are in high demand due to the growing café culture and the ban on single-use plastics. You can start a small unit to produce eco-friendly paper cups.

Why It Works: Eco-friendly and growing market.
Cost to Start: ₹1-2 lakhs (machinery and raw materials).
Income Potential: ₹20,000 – ₹50,000 per month.

26. Solar Panel Manufacturing

Solar panels are in high demand due to the push for renewable energy. You can start a small unit to produce solar panels for residential and commercial use.

Why It Works: Government incentives and growing demand.
Cost to Start: ₹5-10 lakhs (machinery and raw materials).
Income Potential: ₹50,000 – ₹1.5 lakhs per month.

27. Plywood Manufacturing

Plywood is widely used in furniture and construction. You can start a small unit to produce plywood for local markets.

Why It Works: High demand and steady income.
Cost to Start: ₹5-10 lakhs (machinery and raw materials).
Income Potential: ₹50,000 – ₹1.5 lakhs per month.

28. Hand Sanitizer Making

Hand sanitizers are essential hygiene products, especially post-pandemic. You can start a small unit to produce and supply sanitizers.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (raw materials and packaging).
Income Potential: ₹20,000 – ₹50,000 per month.

29. Mosquito Repellent Making

Mosquito repellents are essential in tropical regions. You can start a small unit to produce coils, liquids, or sprays.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (raw materials and packaging).
Income Potential: ₹20,000 – ₹50,000 per month.

30. Pet Bottle Manufacturing

PET bottles are widely used for packaging beverages and water. You can start a small unit to produce and supply PET bottles to local businesses.

Why It Works: High demand and versatile applications.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

31. Bakery Products Manufacturing

Bakery products like bread, cakes, and pastries are in high demand. You can start a small bakery unit and supply to local stores or sell directly to customers.

Why It Works: High demand and low competition.
Cost to Start: ₹2-5 lakhs (oven, raw materials, and packaging).
Income Potential: ₹30,000 – ₹1 lakh per month.

32. Carton Box Manufacturing

Carton boxes are essential for packaging in various industries. You can start a small unit to produce carton boxes for local businesses.

Why It Works: High demand and low competition.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

33. Beaten Rice (Chira) Production

Beaten rice is a popular breakfast item in India. You can start a small unit to produce and supply beaten rice to local markets.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (machinery and raw materials).
Income Potential: ₹20,000 – ₹50,000 per month.

34. Toy Manufacturing

Toys are always in demand, especially during festivals and holidays. You can start a small unit to produce plastic or wooden toys.

Why It Works: High demand and creative business.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

35. Potato Chips Manufacturing

Potato chips are a popular snack in India. You can start a small unit to produce and package potato chips for local markets.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (machinery and raw materials).
Income Potential: ₹20,000 – ₹50,000 per month.

36. Pet Products Manufacturing

Pet products like food, toys, and accessories are in high demand. You can start a small unit to produce and supply these products to pet stores.

Why It Works: Growing pet ownership and demand for pet products.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

37. Pickles Manufacturing

Pickles are a staple in Indian households. You can start a small unit to produce and package pickles using local ingredients.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (raw materials and packaging).
Income Potential: ₹20,000 – ₹50,000 per month.

38. Jewellery Manufacturing

Jewellery is a traditionally profitable industry in India. You can start a small unit to produce artificial or semi-precious jewellery.

Why It Works: High demand and creative business.
Cost to Start: ₹2-5 lakhs (raw materials and tools).
Income Potential: ₹30,000 – ₹1 lakh per month.

39. Beverage Production

Beverages like fruit juices, energy drinks, and flavored water are in high demand. You can start a small unit to produce and package these beverages.

Why It Works: High demand and low competition.
Cost to Start: ₹5-10 lakhs (machinery and raw materials).
Income Potential: ₹50,000 – ₹1.5 lakhs per month.

40. Pharmaceutical Manufacturing

Pharmaceutical products are always in demand. You can start a small unit to produce over-the-counter drugs or Ayurvedic medicines.

Why It Works: High demand and government support.
Cost to Start: ₹5-10 lakhs (machinery and raw materials).
Income Potential: ₹50,000 – ₹1.5 lakhs per month.

41. Automobile Parts Manufacturing

Automobile parts are in high demand due to the growing automotive industry. You can start a small unit to produce specific parts like brakes, filters, or gears.

Why It Works: High demand and steady income.
Cost to Start: ₹5-10 lakhs (machinery and raw materials).
Income Potential: ₹50,000 – ₹1.5 lakhs per month

42. Manufacturing of Electronic Products

Electronic products like chargers, cables, and small appliances are in high demand. You can start a small unit to produce these items.

Why It Works: High demand and versatile products.
Cost to Start: ₹5-10 lakhs (machinery and raw materials).
Income Potential: ₹50,000 – ₹1.5 lakhs per month.

43. Artificial Flower Making

Artificial flowers are used for decoration in homes, events, and offices. You can start a small unit to produce these flowers using fabric or plastic.

Why It Works: High demand and creative business.
Cost to Start: ₹1-2 lakhs (raw materials and tools).
Income Potential: ₹20,000 – ₹50,000 per month.

44. Chocolate Making

Chocolate is a popular treat for all age groups. You can start a small unit to produce and package chocolates for local markets.

Why It Works: High demand and creative business.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

45. Textile and Apparel Manufacturing

Textile and apparel manufacturing is a thriving industry in India. You can start a small unit to produce garments, sarees, or fabrics.

Why It Works: High demand and export potential.
Cost to Start: ₹5-10 lakhs (machinery and raw materials).
Income Potential: ₹50,000 – ₹1.5 lakhs per month.

46. Bicycle Manufacturing

Bicycles are a popular mode of transportation in India. You can start a small unit to produce affordable bicycles for local markets.

Why It Works: High demand and eco-friendly appeal.
Cost to Start: ₹5-10 lakhs (machinery and raw materials).
Income Potential: ₹50,000 – ₹1.5 lakhs per month.

47. Jam and Jelly Making

Jam and jelly are popular breakfast items. You can start a small unit to produce and package these items using local fruits.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (machinery and raw materials).
Income Potential: ₹20,000 – ₹50,000 per month.

48. Nails, Nuts, and Bolts Manufacturing

Nails, nuts, and bolts are essential hardware items used in construction and manufacturing. You can start a small unit to produce these items.

Why It Works: High demand and steady income.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

49. Padlocks & Keys Manufacturing

Padlocks and keys are essential for security. You can start a small unit to produce these items for local markets.

Why It Works: High demand and low competition.
Cost to Start: ₹1-2 lakhs (machinery and raw materials).
Income Potential: ₹20,000 – ₹50,000 per month.

50. Rubber Bands Manufacturing

Rubber bands are widely used in offices, schools, and households. You can start a small unit to produce these items.

Why It Works: Low-cost and steady demand.
Cost to Start: ₹50,000 – ₹1 lakh (machinery and raw materials).
Income Potential: ₹10,000 – ₹30,000 per month.

51. Rubber Eraser Manufacturing

Rubber erasers are essential stationery items. You can start a small unit to produce these items for local markets.

Why It Works: Low-cost and steady demand.
Cost to Start: ₹50,000 – ₹1 lakh (machinery and raw materials).
Income Potential: ₹10,000 – ₹30,000 per month.

52. Safety Pin Manufacturing

Safety pins are essential household items. You can start a small unit to produce these items for local markets.

Why It Works: Low-cost and steady demand.
Cost to Start: ₹50,000 – ₹1 lakh (machinery and raw materials).
Income Potential: ₹10,000 – ₹30,000 per month.

53. Cornflakes Manufacturing

Cornflakes are a popular breakfast item. You can start a small unit to produce and package cornflakes for local markets.

Why It Works: High demand and low competition.
Cost to Start: ₹2-5 lakhs (machinery and raw materials).
Income Potential: ₹30,000 – ₹1 lakh per month.

54. Vermicompost Production

Vermicompost is an organic fertilizer in high demand among farmers and gardeners. You can start a small unit to produce and package vermicompost.

Why It Works: Eco-friendly and growing market.
Cost to Start: ₹1-2 lakhs (raw materials and setup).
Income Potential: ₹20,000 – ₹50,000 per month.

55. Umbrella Manufacturing

Umbrellas are essential during the rainy season. You can start a small unit to produce and supply umbrellas to local markets.

Why It Works: Seasonal demand and low competition.
Cost to Start: ₹1-2 lakhs (machinery and raw materials).
Income Potential: ₹20,000 – ₹50,000 per month.

Read: How to Start a Manufacturing Company in India

Conclusion: Starting a small manufacturing unit in India is an excellent means of contributing to the economy with profits. Select an idea that suits your interest, budget, and demand of the market. With careful planning and implementation, you can establish a successful manufacturing venture.

Frequently Asked Questions on Small Manufacturing Business Ideas

What are the best small manufacturing business ideas under Rs. 1 lakh?

Here we list the 10 most profitable small manufacturing ideas under Rs. 1 Lakh in India.

Candle Making
Chocolate Making
Pickles Making
Paper Cup Making
Bindi Manufacturing
Toy Making
Chalk Making
Designer Lace Making
Blouse Hook Making
Exercise Book Manufacturing

What are the best small manufacturing business ideas under Rs. 5 Lakhs?

Below, find the best small manufacturing businesses you can start under Rs 5 Lakhs in India:

Agarbatti Making
Bread Making
Soap Making
Detergent Powder Manufacturing
Cashew Processing
Ice Cream Cone Making
Jute Bag Making
Nut Bolt Making
Papad Making
Pollution Mask Manufacturing

Is Small Manufacturing Business Profitable?

Small-scale product manufacturing is the backbone of the Indian business ecosystem. It contributes a big share of the GDP of the Indian economy as a whole.

Product manufacturing is a globally evergreen business. And this is one of the most lucrative sectors revenue-wise. However, starting a manufacturing company demands startup capital investment initially. Capital investment requires machinery, equipment, raw materials, staffing, and marketing purposes.

Rupak Chakrabarty

Hello, I’m Rupak Chakrabarty, a passionate advocate for small and medium enterprises (SMEs) and the driving force behind MUVSI Consulting, where I serve as a dedicated small business coach. With years of experience in the entrepreneurial world and a deep-rooted commitment to helping SMEs thrive, I bring a wealth of knowledge, expertise, and guidance to aspiring and established business owners alike.

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