Best 32 Manufacturing Business Ideas Under 10 Lakhs in India

India’s manufacturing sector is rapidly expanding. And thereby opening up exciting opportunities for entrepreneurs looking for low-investment ventures. Small-scale manufacturing businesses are gaining momentum across the country as there is a growing push for ‘Make in India’ and self-reliant economic development in the country. Among aspiring entrepreneurs, there is a growing interest in manufacturing business ideas with a budget of under 10 lakhs that offer a balance of affordability, profitability, and scalability.

The MSME (Micro, Small, and Medium Enterprises) sector contributes significantly to India’s GDP, exports, and employment generation. Within this sector, small manufacturing units are seen as engines of inclusive growth, especially in semi-urban and rural areas. The advantage of starting a manufacturing business with an investment of ₹10 lakhs or less is that it minimises financial risk while allowing you to purchase basic machinery, rent workspace, and source raw materials efficiently.

Government initiatives, such as the PMEGP (Prime Minister’s Employment Generation Programme) and MUDRA loans under the Pradhan Mantri Mudra Yojana, further support entrepreneurs by offering capital subsidies and collateral-free loans. These schemes make it easier than ever to start a small manufacturing unit with government backing.

What sets these business opportunities even more appealing is that they are versatile across geographies, ranging from home units in villages to small factories in industrial estates. If you’re keen on food processing, paper products, fabrics, or green products, there are a range of highly profitable manufacturing business opportunities under 10 lakhs that are easy to initiate and rich in growth prospects.

Best Low-Cost & High-Demand Manufacturing Ideas Under 10 Lakhs

These manufacturing business ideas under ₹10 lakhs are perfect for aspiring entrepreneurs looking to start with low capital, simple machinery, and high product demand. They can be easily run from a small workshop or even from home in some cases, and offer consistent income with a quick break-even.

1. Candle Making Business

Candle manufacturing is a low-investment business with consistent demand across festivals, home décor, religious ceremonies, and aromatherapy markets. With basic machinery and moulds, you can create scented, decorative, and custom candles that appeal to both retail and bulk buyers.

Investment: ₹4–8 Lakhs
Setup: Moulds, wax melting machine, dye, fragrance, packaging material
Profit Margin: 25–35%
Market: Religious use, home décor, gifting, spa products
Tip: Sell premium scented candles with natural oils and custom packaging to increase profits.

2. Agarbatti (Incense Stick) Manufacturing

Agarbatti production requires minimal setup and caters to a large domestic and export market driven by daily religious and spiritual practices. This business offers high turnover with small batches and can easily scale with automation.

Investment: ₹5–8 Lakhs
Setup: Automatic agarbatti machine, bamboo sticks, charcoal powder, jigat powder, fragrance
Profit Margin: 20–30%
Market: Temples, households, exports to Southeast Asia

3. Paper Plate & Disposable Cup Manufacturing

This business is ideal for areas with high catering and food stall activity, offering eco-friendly alternatives to plastic disposables. With semi-automatic machines, you can manufacture in bulk and sell to wholesalers, event organisers, and local eateries.

Investment: ₹3–7 Lakhs
Setup: Paper plate/dona making machine, raw paper rolls, packaging
Profit Margin: 25–40%
Market: Street food vendors, event caterers, small restaurants

4. Jute Bag Manufacturing

Jute bags are gaining popularity as sustainable alternatives to plastic, especially among eco-conscious consumers and exporters. This business allows you to design custom bags for shopping, packaging, and corporate use, with attractive margins and branding opportunities.

Investment: ₹3–6 Lakhs
Setup: Stitching machines, printing unit, raw jute fabric, accessories
Profit Margin: 30–50%
Market: Retail brands, NGOs, exports, government programs

5. Detergent Powder or Liquid Soap Production

A detergent manufacturing unit is simple to set up and supplies a necessity product used in every household. The business can serve both B2C and B2B markets with powder and liquid variants at different price points.

Investment: ₹3–5 Lakhs
Setup: Mixing unit, packaging unit, weighing machine, raw materials (LABSA, soda ash, perfume)
Profit Margin: 20–35%
Market: Household cleaning, small retailers, online sales

6. Phenyl & Toilet Cleaner Manufacturing

Producing phenyl and toilet cleaners involves basic mixing and bottling processes and serves institutions, offices, and households. With strong demand for hygiene products, this business can quickly establish a loyal local customer base.

Investment: ₹2–4 Lakhs
Setup: Mixing tank, filling and sealing machine, bottles, raw chemicals
Profit Margin: 25–40%
Market: Schools, hospitals, municipalities, household use

Best Machine-Based Manufacturing Business Ideas Under 10 Lakhs

Machine-based manufacturing businesses under ₹10 lakhs are ideal for entrepreneurs looking for structured production processes, better efficiency, and higher production capacity. These ventures usually require space, power, and small teams, but they offer greater output, consistent quality, and strong return on investment.

7. Customised T-Shirt Printing (Heat Press / Screen Printing)

Customised t-shirt printing is a trending and creative business with booming demand among youth, small brands, corporates, and events. With digital design tools and small-scale machinery, you can run this from a home studio or small shop and even sell online via your website or marketplaces.

Investment: ₹6–9 Lakhs
Setup Includes: Heat press machine or screen printing setup, computer with design software, sublimation printer, blank t-shirts, ink & transfer paper
Profit Margin: 30–50%
Market: College wear, team uniforms, event merchandise, online stores (Etsy, Amazon, Instagram)

8. Notebook & Stationery Manufacturing

This evergreen business caters to students, educational institutions, and office supply chains. With moderate automation, you can manufacture a variety of paper products including notebooks, notepads, and school registers in bulk.

Investment: ₹4–6 Lakhs
Setup Includes: Cutting machine, ruling machine, binding press, raw paper rolls, covers, and packaging materials
Profit Margin: 25–40%
Market: Schools, colleges, wholesalers, stationery stores

9. Plastic Bottle or Container Manufacturing (Small Scale)

This business produces essential packaging materials for multiple industries. While it requires skilled operation and moderate electricity, it offers high demand and bulk B2B orders if marketed effectively.

Investment: ₹7–10 Lakhs
Setup Includes: Blow moulding machine, plastic granules, die sets, cooling & trimming setup
Profit Margin: 30–45%
Market: FMCG, cosmetics, pharmaceuticals, water bottling plants

10. Staple Pin or Paper Clip Manufacturing

A small but efficient manufacturing setup can produce staple pins or paper clips in large volumes. With strong institutional demand and minimal raw material cost, this business is ideal for steady returns.

Investment: ₹4–6 Lakhs
Setup Includes: Wire drawing machine, pin cutting machine, forming press, galvanising setup (optional)
Profit Margin: 20–35%
Market: Stationery wholesalers, offices, schools, and export

Best Home-Based or Cottage Industry Manufacturing Business Ideas Under 10 Lakhs

Home-based or cottage manufacturing businesses are perfect for individuals or families looking to start small, especially from home or a small workspace with minimal infrastructure. These businesses are affordable, low-risk, and easy to manage, making them ideal for women entrepreneurs, retirees, or part-time business owners.

11. Pickle, Jam & Sauce Manufacturing

Homemade food products like pickles, jams, and sauces are always in demand for their authentic taste and regional appeal. With proper hygiene, attractive packaging, and local recipes, you can create a loyal customer base and sell through retailers or online marketplaces.

Investment: ₹2–4 Lakhs
Setup Includes: Cooking utensils, mixers, sterilisers, jars, labelling and packaging unit
Profit Margin: 30–40%
Market: Grocery stores, online platforms, regional food lovers

12. Masala (Spice Powder) Making Unit

Spices are a staple in every Indian kitchen. A spice-making unit requires basic grinding equipment and a clean space. With good branding and consistent quality, you can tap into both retail and wholesale markets.

Investment: ₹2.5–5 Lakhs
Setup Includes: Pulveriser/grinder machine, weighing machine, sealing and packaging unit, raw spices
Profit Margin: 35–45%
Market: Housewives, restaurants, general stores, export

13. Papad & Snack Production

This traditional business is often family-run and requires very little space and investment. Papads and snacks made with lentils or rice flour have a wide regional demand and can scale quickly with community participation or SHGs.

Investment: ₹2–3 Lakhs
Setup Includes: Dough mixers, rolling machines (optional), drying racks, packaging material
Profit Margin: 25–35%
Market: Local kirana stores, hotels, and home orders

14. Homemade Chocolate or Bakery Unit

Homemade chocolates, cookies, or cakes have high profit potential due to their artisanal nature and appeal. Ideal for urban and tier-2 city entrepreneurs, especially those with baking experience, this business benefits greatly from social media marketing.

Investment: ₹3–5 Lakhs
Setup Includes: Chocolate moulds, tempering machine, oven (for bakery), ingredients, packaging
Profit Margin: 40–50%
Market: Gift stores, festivals, parties, Instagram stores

Best Eco-Friendly & Sustainable Manufacturing Business Ideas Under 10 Lakhs

As climate change and plastic pollution become pressing issues, eco-conscious consumers and businesses are shifting to sustainable alternatives. These manufacturing ideas focus on products that are biodegradable, reusable, or made from natural materials — ideal for new-age entrepreneurs who want to build a purpose-driven and future-ready business under ₹10 lakhs.

15. Biodegradable Cutlery & Packaging Unit

As single-use plastic bans grow across states in India, the demand for biodegradable alternatives like spoons, plates, straws, and trays is booming. You can start a small unit to manufacture cutlery and food containers using agricultural waste materials, and supply to cafés, cloud kitchens, or B2B clients.

Investment: ₹5–8 Lakhs
Setup Includes: Hydraulic moulding machine, die sets, raw materials (rice husk, corn starch, sugarcane bagasse), packaging materials
Profit Margin: 30–40%
Market: Food delivery chains, restaurants, eco-brands, events, government tenders

16. Herbal Cosmetics & Natural Beauty Products

Natural skincare and haircare products are witnessing rapid growth in both Indian and international markets. With the right formulations (face packs, soaps, oils, scrubs, creams), branding, and packaging, you can build a premium herbal product line with a strong e-commerce presence.

Investment: ₹4–7 Lakhs
Setup Includes: Mixing and filling machines, formulation equipment, organic raw materials (herbs, oils, extracts), sterilisation unit, containers
Profit Margin: 35–50%
Market: Beauty retailers, salons, online platforms, Ayurveda-based consumers

17. Recycled Paper Products Manufacturing

Recycled paper notebooks, bags, greeting cards, and packaging items are gaining traction as sustainable stationery solutions. You can start small with artisan-quality recycled products and market them through eco-bazaars, fairs, or online craft platforms like Etsy or Amazon.

Investment: ₹3–6 Lakhs
Setup Includes: Pulping unit, pressing and drying machines, cutting and binding units
Profit Margin: 25–35%
Market: Corporate gifting, schools, eco-stores, and handmade craft enthusiasts

18. Cloth Bag Manufacturing (Cotton, Canvas, Khadi)

With restrictions on plastic carry bags, cotton and canvas bags are widely used for shopping, promotion, and daily use. A small tailoring unit with a few skilled workers can create reusable bags for businesses, gift shops, or NGO campaigns.

Investment: ₹3–7 Lakhs
Setup Includes: Sewing machines, cutting tables, cloth rolls, printing or embroidery setup
Profit Margin: 30–45%
Market: Local markets, NGOs, events, retailers, exhibitions

Best Textile & Fabric-Based Manufacturing Business Ideas Under 10 Lakhs

The Indian textile sector is one of the oldest and most important industries in the country, contributing significantly to exports, employment, and rural livelihoods. With relatively low entry barriers, fabric-related manufacturing businesses under ₹10 lakhs can offer strong returns and serve both domestic and global markets, especially when integrated with fashion trends and e-commerce.

19. Garment Stitching & Tailoring Unit (Unisex or Kidswear)

A garment stitching unit allows you to produce everyday wear, school uniforms, ethnic garments, or kids’ fashion. You can cater to contract manufacturing for D2C brands, offer tailoring services, or even launch your local label.

Investment: ₹4–8 Lakhs
Setup Includes: Industrial sewing machines, cutting tables, ironing units, fabric stock, packaging
Profit Margin: 30–45%
Market: Retail brands, boutiques, uniforms, e-commerce stores

20. Cotton/Khadi Fabric Dyeing & Printing

With the revival of khadi and eco-friendly fabrics, traditional hand-block and screen printing on natural materials is a niche yet high-value business. Ideal for artisans or rural entrepreneurs, it offers branding opportunities through local art forms like Bagru, Kalamkari, and Dabu.

Investment: ₹5–7 Lakhs
Setup Includes: Dyeing tanks, washing and drying units, block/screen printing tools, natural dyes
Profit Margin: 25–35%
Market: Handloom boutiques, exhibitions, designer brands, exporters

21. Embroidered Home Décor Items (Cushion Covers, Table Runners)

With a growing demand for aesthetic and handmade home décor, embroidered textiles have huge potential. You can make custom products like curtains, pillow covers, or table mats and sell through Instagram or platforms like Etsy, Amazon, or craft expos.

Investment: ₹3–8 Lakhs
Setup Includes: Embroidery machines (manual or computerised), fabric, trims, packaging
Profit Margin: 30–50%
Market: Online stores, lifestyle boutiques, exports

22. School Bags / Utility Bags Manufacturing

Manufacturing utility bags like backpacks, laptop sleeves, or travel kits requires moderate equipment and skilled labour. Bulk orders from institutions and retailers offer good revenue, and you can also add branding for custom orders.

Investment: ₹5–9 Lakhs
Setup Includes: Stitching machines, foam pressing units, cutting tables, zippers, buckles, canvas/polyester fabric
Profit Margin: 25–35%
Market: Schools, corporate gifting, wholesalers, online marketplaces

22. Saree Fall & Pico Stitching + Blouse Customisation Unit

This micro-scale business caters to a niche but recurring service need among saree buyers. Simple and easy to operate, it’s ideal for women entrepreneurs and requires low capital, especially in urban or semi-urban markets.

Investment: ₹5–7 Lakhs
Setup Includes: Standard tailoring machines, workspace, threads, fabric inventory
Profit Margin: 40–60%
Market: Local tailoring shops, boutiques, online sari sellers

Best Niche & Electronics-Based Manufacturing Ideas Under 10 Lakhs

With the rapid digitalisation of India and rising consumer demand for smart, efficient, and customised electronic products, even small-scale manufacturers can tap into profitable electronics niches. Many of these ideas are DIY-friendly, have low space requirements, and offer strong margins through B2C and D2C online models.

23. LED Bulb & Tube Light Assembly

With ongoing power-saving initiatives, LED lighting is a booming market. Setting up a small assembly unit to manufacture or brand LED bulbs and tube lights is cost-effective and scalable through bulk or institutional orders.

Investment: ₹4–8 Lakhs
Setup Includes: PCB soldering unit, bulb housing moulds, testing equipment, packaging setup
Profit Margin: 25–40%
Market: Local electrical shops, government tenders, housing societies, e-commerce

24. Mobile Accessories Manufacturing (USB Cables, Chargers)

The accessories market in India is growing at 10–12% annually. You can manufacture USB cables, phone chargers, or connectors and cater to both OEMs and your own D2C brand via online platforms.

Investment: ₹5–9 Lakhs
Setup Includes: Cable extruding machines, moulding dies, testing setup, plastic components
Profit Margin: 20–35%
Market: Gadget resellers, Amazon/Flipkart, phone retailers

25. Arduino/Raspberry Pi Kits for Education

With NEP 2020 pushing coding and robotics from an early age, DIY electronics kits are in high demand. You can assemble and sell educational kits bundled with instruction guides or videos to schools and edtech platforms.

Investment: ₹5–10 Lakhs
Setup Includes: Assembly tools, PCBs, microcontrollers, sensors, packaging kits
Profit Margin: 30–50%
Market: Schools, robotics classes, STEM hobbyists

26. CCTV Camera Assembly & Basic Installation Kits

Surveillance is now a basic utility across urban India. Starting a business that assembles affordable security kits or branded CCTV packages can be a solid long-term play, especially with bulk orders.

Investment: ₹6–10 Lakhs
Setup Includes: CCTV PCB units, casings, lens kits, wiring, testing tools, DVRs
Profit Margin: 20–30%
Market: Housing societies, small offices, security contractors

27. Bluetooth & Audio Device Assembly (Speakers, Earbuds)

With India’s audio gadget market booming, small assembly units that source parts and build branded or white-labeled wireless speakers, headphones, or soundbars can compete well, especially in the low-cost but quality range.

Investment: ₹5–10 Lakhs
Setup Includes: Plastic moulding, speaker units, battery packs, soldering tools
Profit Margin: 25–35%
Market: Youth consumers, gifting segment, e-commerce

Best Food & Agro-Based Manufacturing Business Ideas Under 10 Lakhs

India’s agro-based economy offers rich opportunities for small-scale food processing businesses. With the growing demand for packaged, organic, and convenient foods, entrepreneurs can tap into both local and export markets. These ideas are also eligible for subsidies under the PM FME, PMEGP, and MUDRA schemes.

28. Rice or Flour (Atta) Mill

A small-scale rice or flour mill is a highly feasible rural business. With growing awareness of fresh and locally milled grains, you can offer superior quality products with minimal preservatives and high freshness value.

Investment: ₹6–10 Lakhs
Setup Includes: Small milling machine, de-stoner, sieving machine, packaging unit
Profit Margin: 20–30%
Market: Grocery shops, wholesalers, direct consumers

29. Cold-Pressed Edible Oil Extraction

Cold-pressed oils have become popular for their health benefits. You can run a unit that produces small batches of unrefined oils and market them as premium products both offline and through digital platforms.

Investment: ₹5–9 Lakhs
Setup Includes: Cold press oil machine (for groundnut, mustard, sesame, etc.), filters, bottles, labelling unit
Profit Margin: 30–40%
Market: Organic stores, health-conscious consumers, online platforms

30. Organic Fertiliser or Vermicompost Unit

As organic farming grows, so does the demand for compost and natural manure. A vermicomposting unit is low-cost, eco-friendly, and ideal for rural entrepreneurs or farmer collectives.

Investment: ₹5–7 Lakhs
Setup Includes: Vermi beds, cow dung and organic waste collection, earthworms, sieving and packaging tools
Profit Margin: 35–50%
Market: Farmers, nurseries, gardening communities, government schemes

31. Fruit & Vegetable Dehydration (Solar or Electric)

Dried fruits, vegetables, and herbs are used in ready-to-cook meals, snacks, and health mixes. By sourcing directly from farmers, you can create value-added, preservative-free products for modern consumers and chefs.

Investment: ₹4–7 Lakhs
Setup Includes: Solar/electric dehydrator, slicers, packaging unit, raw produce
Profit Margin: 25–40%
Market: Snack brands, supermarkets, export agents

32. Tomato Ketchup & Puree Manufacturing

Processed tomato products are consumed widely across urban and semi-urban areas. By using surplus or B-grade tomatoes, you reduce waste and create products with long shelf life and strong institutional demand.

Investment: ₹6–10 Lakhs
Setup Includes: Pulping machine, cooking kettle, bottling and sealing machine
Profit Margin: 25–35%
Market: Restaurants, fast food vendors, wholesalers

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Conclusion:

Each of these manufacturing business ideas under 10 lakhs is ideal for first-time entrepreneurs who want to balance investment with manageable operations and long-term scalability. Pairing the right idea with strong local demand, good branding, and digital marketing can help you build a sustainable business from day one.

The key to success lies in choosing a business that aligns with your skills, local market demand, and growth potential. Focus on quality, consistency, and branding, and use digital platforms to reach wider markets. Remember, even the largest businesses once started small.

So take the first step. With the right mindset and careful planning, your journey toward owning a successful manufacturing business under ₹10 lakhs begins today.

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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