10 Best Manufacturing Business Ideas Under ₹1 Lakh in India

If you’re looking to start a business that offers consistent income, job creation, and long-term potential, small-scale manufacturing business ideas in India could be your best bet. The “Make in India” initiative and rising local demand make starting a small manufacturing venture ideal at present. In this guide, you’ll find profitable manufacturing business ideas under 1 lakh Rupees that beginners, individuals residing in small towns, and even home-based startups can initiate.

Why Small-Scale Manufacturing in India Under Rs. 1 Lakh?

India’s manufacturing sector contributes around 17% to the GDP. The industry continues to grow with strong support from the government.

Key Benefits:

• Low startup capital
• Access to local raw materials
• Support through MSME schemes and Mudra loans
• Huge domestic and export potential

Best Manufacturing Business Ideas Under 1 Lakh in India

Here are some practical and profitable ideas you can explore:

1. Candle Making

Candle making is one of the most popular manufacturing business ideas under 1 lakh in India. It’s easy to start, doesn’t require much space, and the raw materials are affordable and easily available.

You can begin this business from your home with an initial investment of around ₹20,000 to ₹50,000. This amount covers basic raw materials like wax, wicks, moulds, colours, fragrance oils, a weighing scale, and a double boiler or heater for melting wax. If you want to scale up later, you can invest in automatic candle-making machines.

What makes this business profitable is the rising demand for decorative and scented candles. People buy them for festivals like Diwali and Christmas, as gifts, or to decorate their homes. Hotels, spas, and event organisers also use designer candles in large quantities.

How to Start:

• Learn the basics of candle making through YouTube tutorials or short online courses.
• Start with simple designs and test them with your local market.
• Use attractive packaging and post photos on platforms like WhatsApp, Instagram, and Facebook.
• Sell through local shops, flea markets, or online stores like Amazon and Flipkart.

Profit Tip: Scented candles and themed gift sets have higher margins. With proper marketing, you can earn ₹15,000 to ₹30,000 per month even as a beginner.

This is one of the simplest and most scalable manufacturing business ideas under 1 lakh—perfect for students, homemakers, and anyone looking to start small and grow steadily.

2. Agarbatti (Incense Stick) Making

Agarbatti making is a traditional yet fast-growing manufacturing business idea under 1 lakh in India. With strong domestic demand during religious ceremonies, meditation, and daily puja rituals, this business is simple, low-cost, and suitable for home-based operations.

To get started, you’ll need a basic agarbatti-making machine, which costs around ₹30,000–₹60,000 depending on its speed and capacity. Raw materials include bamboo sticks, charcoal powder, jigat powder, and fragrance oils—all easily available from wholesale suppliers or local markets.

How to Start:

• Purchase a semi-automatic machine or begin manually if you’re testing the waters.
• Learn the mixing ratio for smooth, long-burning incense sticks.
• Start with 2–3 popular fragrances like sandalwood, rose, and lavender.
• Pack your sticks in small pouches (10–50 sticks per pack) with attractive branding.
• Distribute them through local kirana stores, temple shops, or bulk orders to wholesalers.
• Alternatively, sell directly on platforms like Meesho or Flipkart.

Earnings Potential: A small setup can produce up to 100 kg of agarbatti per day. With a profit of ₹10–₹25 per kg, monthly income can reach ₹15,000–₹30,000, depending on volume and fragrance quality.

3. Paper Plate Making

Paper plate making is one of the most in-demand manufacturing business ideas under 1 lakh in India, especially with the growing ban on plastic and the rise in disposable products used at parties, food stalls, religious events, and functions.

You can start this business with a manual or semi-automatic paper plate-making machine, which costs around ₹40,000 to ₹70,000. The raw materials (paper rolls and dies) are affordable and easily available from local markets or online industrial suppliers.

How to Start:

• Buy a paper plate-making machine based on your budget and production goals.
• Choose the right die size (6 to 12 inches) depending on customer preference.
• Source raw materials like PE-coated paper or silver laminated paper rolls.
• Start small by selling to local caterers, tea shops, street food vendors, and canteens.
• You can also sell through wholesalers and packaging distributors.

Earnings Potential: You can produce 2,000–3,000 plates per day. With a profit of ₹0.20–₹0.50 per plate, monthly income can reach ₹15,000 to ₹25,000 or more, depending on your market reach.

4. Handmade Soap Making

Handmade soap making is a profitable and creative manufacturing business idea under 1 lakh, perfect for people who want to start small from home. With increasing awareness about natural and chemical-free skincare, the demand for herbal, organic, and glycerin-based soaps is rising rapidly.

You don’t need heavy machines to begin. A basic setup includes moulds, a heating container, mixing tools, and raw materials like glycerin base, essential oils, natural colours, and herbs—all of which can be sourced easily.

How to Start:

• Learn basic soap-making techniques through YouTube tutorials or online courses.
• Start with a melt-and-pour method—it’s beginner-friendly and safe.
• Experiment with different essential oils like lavender, neem, or sandalwood.
• Create unique shapes and packaging to stand out in the market.
• Sell your soaps through Instagram, local boutiques, weekend markets, or on online marketplaces.

Earnings Potential: You can make small batches of 50–100 soaps a day. If each soap costs ₹20 to produce and sells for ₹50–₹100, your profit margin can be 100% or more. With consistent sales, monthly income can range from ₹15,000 to ₹40,000.

5. Detergent Powder Manufacturing

Detergent powder is a lucrative manufacturing business idea under 1 lakh, especially in a country like India, where there is high demand for cleaning products across households, commercial establishments, and industries. With low raw material costs and the option to sell in bulk, this business can be started with a minimal investment.

The main raw materials you’ll need are chemicals such as sodium carbonate, sodium bicarbonate, surfactants, and other essential ingredients. A small-scale detergent powder-making machine can be purchased for around ₹40,000 to ₹70,000, depending on the production capacity.

How to Start:

• Research the basic formula for detergent powder.
• Purchase raw materials from local suppliers or online stores.
• Set up a small production unit in your home or a rented space.
• Start with small batches to ensure quality and consistency.
• Package your product in attractive bags or boxes and focus on branding.

Sell your detergent powder to local stores, online platforms, and directly to consumers through distributors or your own e-commerce platform.

Earnings Potential: A small unit can produce 500 to 1,000 kg of detergent powder per day. With a profit of ₹5–₹10 per kg, your earnings can range from ₹10,000 to ₹20,000 monthly, depending on sales volume.

6. Pickle and Jam Making

Pickle and jam production is a popular manufacturing business idea under 1 lakh that is not only low in investment but also offers high-profit margins. With the growing demand for traditional, homemade, and organic food items, pickle and jam making is a great way to tap into the food market. Indian households and restaurants love their pickles, and jams are popular as spreads, especially in breakfast settings.

You can start this business from home with minimal equipment—some basic kitchen tools, cooking vessels, jars, and raw ingredients. Fruit, sugar, vinegar, and spices are the main components needed to create different varieties of jams, while for pickles, spices, oils, and fresh vegetables or fruits are required.

How to Start:

• Begin by perfecting a few unique recipes for pickles and jams.
• Source fresh ingredients locally and ensure quality and hygiene in production.
• Invest in good-quality packaging to enhance your product’s appeal and shelf life.
• Start small by selling to local markets, grocery stores, or online platforms like Amazon and Instagram.
• Focus on creating a niche by experimenting with flavours and offering organic or homemade options.
• Build your brand around the quality and authenticity of your products.

Earnings Potential: Once you establish your brand, a small-scale pickle and jam-making unit can generate ₹15,000 to ₹30,000 in monthly profits. With good branding and customer loyalty, it’s possible to scale this business and expand your market reach.

7. Papad Manufacturing

Papad manufacturing is a well-known and profitable manufacturing business idea under 1 lakh in India. Papads are a popular snack in Indian households and are commonly served as an accompaniment with meals. With minimal investment in raw materials and machinery, you can start a small-scale papad manufacturing business and cater to local markets.

The main ingredients for making papad are pulses (such as urad dal or rice flour), spices, and sometimes, additional ingredients like sesame seeds or cumin. The production process involves preparing dough, rolling it out into thin discs, and then sun-drying or dehydrating them. Packaging them in attractive and sturdy containers helps to enhance the shelf life.

How to Start:

• Invest in basic machinery such as dough kneading machines and papad drying machines.
• Source quality raw materials like pulses, flour, and spices at competitive rates.
• Hire a small team to help with production and packaging if needed.
• Focus on local marketing and distribution channels—grocery stores, local markets, and even online platforms like Amazon or Instagram.
• Consider offering special varieties such as flavoured or organic papads to stand out in the market.

Earnings Potential: A small-scale papad manufacturing unit can easily produce 200–500 kg of papads daily, with an average profit margin of ₹20–₹30 per kg. With a steady market, you can earn ₹10,000 to ₹25,000 per month, depending on your production capacity and distribution.

8. Jute Bag manufacturing

With the growing awareness of environmental sustainability, jute bag manufacturing has become a popular business idea under 1 lakh in India. Jute is a natural, biodegradable, and eco-friendly material that has gained significant demand, especially as people shift away from plastic bags. The manufacturing of jute bags is a low-cost, profitable business that is ideal for entrepreneurs looking to tap into the green market.

Jute bags are widely used for shopping, packaging, and as promotional items by businesses looking to market their brand with eco-conscious products. This growing trend towards eco-friendly products provides a substantial opportunity for jute bag manufacturers.

How to Start:

• Source high-quality jute fabric from suppliers. You can find vendors that sell jute bags as raw material for low prices.
• You’ll need basic sewing machines, cutting tools, and stitching materials. These are affordable and readily available.
• The manufacturing process involves cutting the jute fabric into desired shapes, stitching them into bags of different sizes, and adding accessories like handles or zippers.
• Target eco-conscious buyers, local stores, and large retailers. You can also sell jute bags as customised promotional items or corporate giveaways.

Earnings Potential: A small-scale jute bag manufacturing unit can produce several hundred bags daily, with a profit margin ranging between ₹15–₹50 per bag, depending on the size and customisation. The total earnings can range from ₹10,000 to ₹30,000 per month, with scope for growth as demand increases.

9. Noodle Manufacturing

Noodle manufacturing is one of the most promising business ideas under 1 lakh in India, especially with the rising demand for convenient and quick-to-make food items. Instant noodles are a staple in many households, offices, and student dorms, and the market for them is continuously growing due to the busy lifestyle of urban and rural populations alike. By starting a noodle manufacturing business, you can tap into this lucrative market with relatively low initial investment.

How to Start:

• The key ingredients for noodles are flour, salt, water, and seasonings. You may also want to source additional ingredients such as vegetables, oil, and preservatives, depending on the variety of noodles you wish to produce.
• The machinery required for noodle manufacturing includes dough mixers, extruders, steamers, and dryers.
• The basic manufacturing process involves mixing the dough, extruding it into noodle shapes, steaming, and then drying the noodles. Afterwards, they are packaged into various serving sizes, including single packs or multi-packs.
• You can use simple plastic packaging or branded packets with attractive designs to make the product appealing to customers.
• You can start by targeting local grocery stores, supermarkets, and even online platforms. Additionally, you could offer private-label products for smaller or regional brands, which can help boost visibility.

Earnings Potential: A small noodle manufacturing unit with a basic setup can yield a profit of ₹30,000 to ₹50,000 per month, depending on production volume and market reach. The demand for instant noodles is high, and the business can scale rapidly with increased sales and wider distribution channels.

10. Potato Chips Manufacturing

Potato chips manufacturing is one of the most profitable business ideas under 1 lakh in India. The demand for snacks like potato chips is always high, whether in urban or rural areas. People consume chips as a quick snack with tea, at parties, or as an accompaniment to meals. With the growing snack culture in India, starting a potato chips manufacturing business can be a lucrative opportunity.

How to Start:

• The main ingredient for making potato chips is, of course, potatoes. You’ll also need cooking oil, salt, and other seasonings to add flavour.
• You need to buy equipment like a potato peeler for peeling the potatoes, a slicing machine for cutting the potatoes into thin slices, frying equipment, an oil filtration unit for reusing oil efficiently, and a packaging machine for sealing the chips in airtight bags.
• The basic production Process is cleaning and peeling potatoes, slicing the potatoes uniformly,  using a slicing machine to ensure consistency in the final product, deep frying the potato slices in oil until they become crispy and golden brown, and seasoning the chips with salt, spices, or unique flavors like cheese, masala, or barbecue.
• Potato chips can be sold in bulk to wholesalers, grocery stores, or supermarkets. Additionally, you can sell directly to consumers at local markets or online platforms. Establishing a strong brand and offering different flavours can help you stand out in the competitive snack market.

Earnings Potential: With a small-scale operation, you could expect to earn a monthly profit of ₹30,000 to ₹50,000, depending on production volume and the price point of your products. Once you scale up and expand your distribution channels, you can easily double or triple your earnings.

Tips to Succeed in Small-Scale Manufacturing

Here are a few things you need to keep in mind before launching:

• Start Small, Scale Fast: Begin with a minimum investment and grow as demand increases.
• Use Local Resources: This helps cut costs and increases profit margins.
• Get Registered: Apply for MSME Udyam registration and necessary licenses (FSSAI for food, GST for sales).
• Leverage Digital Marketing: Use WhatsApp, Facebook, and Instagram to promote your products locally.

More Articles on Manufacturing Business:

• Manufacturing Businesses to Start Under 10000 Rupees
• Top Small-Scale Manufacturing Business Ideas
• How to Start a Manufacturing Company in India

Government Schemes You Can Use

• PMEGP (Prime Minister Employment Generation Programme) – Offers up to ₹25 lakh in loan for manufacturing.
• Mudra Yojana – Easy collateral-free loans for micro industries.
• SIDBI Assistance – Helps small manufacturers upgrade technology.

Final Thoughts

Entering the business of small-scale manufacturing in India is a wise choice. Whether you’re from a tier-2 town or a rural hamlet, certain ventures demand minimal capital but come with maximum scope for returns. Pick an idea that excites you, grasp the market you are targeting, and be steady. The climb might be slow in the early days, but it is rewarding.”.