Candle Manufacturing Project Report, Plan

Introduction of Candle Manufacturing Project Report, and Business Plan: The candle-making business is growing at a fast pace majorly for the growing target consumers because of the various sizes, shapes, wide applications, etc.

This business targets to tap the need of the majority of the population sections which are the teenagers, baby boomers as well as adults.

The flame of this business is not turning off and we have explained clearly the process and important aspects of the candle-making business.

A Guide to Candle Manufacturing Project Report, Candle Manufacturing Process, and Business Plan

Candle Manufacturung Process
Candles (Image source: pixabay)

Business plan for starting Candle Manufacturing Project: To start the profitable venture of Candle Manufacturing Business, you need to design a perfect business plan to lay a successful path:

  • Market demand of Candle Manufacturing Business
  • Implementation schedule of Candle Manufacturing Business
  • List of approvals required for starting Candle Manufacturing Business
  • Area required to start Candle Manufacturing Business
  • Raw materials required for starting Candle Manufacturing Business
  • List of machinery required to start Candle Manufacturing Business
  • Manufacturing process of Candle
  • Project economics of Candle Manufacturing Business
  • Profitability in Candle Manufacturing Business

Market potential of Candle Manufacturing Business

A candle is a flammable stick manufactured of wax majorly used as a source of light for illumination and even fragrance in modern times.

The market potential for the candle business is expanding. Popular companies such as Gucci, LV to the household chandlers have been attracted to this business as there has been an upsurge in the use of candles in beauty, décor, etc and the reduced expenses of manufacturing the candles are driving it at a fast pace.

Apart from this, the market potential for a candle making business can be explained by showing these essential aspects:

On the basis of wax used

  • Paraffin wax: Comes with no additives
  • Soy wax: 100% natural wax
  • Palm wax: 100% natural wax made of hydrogenating palm oil
  • Beeswax: 100% natural wax used to make all types of candles
  • Granulated wax: Mainly used for crafting
  • Gel-based wax: It has the translucent quality of gelatine

Implementation schedule of Candle Manufacturing Business

  • Market analysis and demand, applying for loan 0 – 1 month
  • Preparation of business plan 1 – 2 months
  • Financial support or investment 2– 4 months
  • Selection of location and establishment of unit 3 – 4 months
  • Power and water connection facility: 4 – 5 months
  • Building construction and shed development 5 – 6 months
  • Machinery and equipment purchase 6 – 7 months
  • Procuring raw materials and recruiting of manpower 8 – 9 months
  • Trial operations 10th month

List of approvals and permits required to start Candle Manufacturing Business


The next step to start Candle Manufacturing Business in India is acquiring the below list of licenses, permissions and registrations:

  • Register your business identity
  • MSME registration
  • GST registration
  • ROC
  • Get the PAN Card
  • Registration of firm
  • Shop Act License
  • IEC Code
  • Export License
  • Fire and Safety
  • ESI
  • PF
  • No Objection Certificate from pollution board
  • Trade license from local municipal authority

Area required for starting Candle Manufacturing Business

The unit can be abundantly arranged in around 500-800 sq. ft.  and the candle-making business can be easily operated.

Raw materials required for starting Candle Manufacturing Business

The raw materials needed to start this business are added below:

  • Wax: Paraffin, gel, beeswax
  • Wicks
  • Tins, jars, etc.
  • Essential oils needed for scent
  • Colouring chemicals
  • Packaging materials
  • Labels

Machinery required for starting Candle Manufacturing Business

The essential machinery needed to initiate a candle-making business is mentioned below.

  • Wax heating machine
  • Mixer/grinder
  • Candle thread cutting machine
  • Molding machine
  • Manual candle making machine
  • Fully automatic candle making machine
  • Semi-automatic candle making machine

Process of Manufacturing Candles

Various easy-to-operate candle-making machines and molds are available. Based upon the production output requirement one must identify the appropriate one. These machines work proficiently by solidifying the melted wax in existing cavities having a pre-inserted wick in the middle of the candle.

Candle Manufacturing Project Report/Economics of Candle Manufacturing Business

In case if you miss this: 1000 MT Cold Storage Project Report.

Economics of Candle Manufacturing Business
Economics of Candle Manufacturing Business (pic source: pixabay)

Land and building construction on rental basis: Rs. 3,00,000

Cost of Machinery: Rs. 2,39,500

Pre-operative expenditure: Rs. 29,500.

Fixed capital investment:

  • Machinery: Rs. 2,39,500
  • Pre-operative expenses: Rs. 29,500
  • Total: Rs. 2,69,000

Working capital analysis:

  • Raw materials required: Rs. 1,50,000
  • Packing materials (plastic containers, cartons, etc.): Rs. 20,000
  • Total: Rs. 1,70,000

Utilities:

  • Wood 30 quintals @ Rs. 120/qtl.: Rs. 3,600
  • Electricity 300 KWH @ Rs. 3.00: Rs. 900
  • Total: Rs. 4,500

Staff and Labour:

  • Skilled labour: Rs. 10,000
  • Unskilled labour: Rs. 7,500
  • Salesman: Rs. 3,000
  • Accountant: Rs. 2,500
  • Peon: Rs. 2,000
  • Total: Rs. 25,000

Other expenses

  • Rent: Rs. 2,500
  • Transport and travel: Rs. 2,000
  • Telephone: Rs. 400
  • Stationery: Rs. 100
  • Publicity: Rs. 1,000
  • Sale tips: Rs. 1,000
  • Other miscellaneous expenses: Rs. 2,000
  • Taxes and levies: Rs. 500
  • Total: Rs. 9,500

Total working capital per month = Rs. 1,70,000 + Rs. 4500 + Rs. 25,000 + Rs. 9,500 = Rs. 2,09,000

Total capital Investment:

  • Fixed capital: Rs. 2,69,000
  • Working capital: Rs. 2,09,000
  • Total: Rs. 4,78,000

Cost of production (per annum):

  • Depreciation on machinery and equipment @ 10%: Rs. 22,950
  • Depreciation on furniture @ 20%: Rs. 2,000
  • Recurring expenditure (per annum): Rs. 25,08,000
  • Interest on total cap. Investment @ 14%: Rs. 66,920
  • Total: Rs. 25,99,870

Turnover of Candle Manufacturing Business

Candle turnover 92.4 MT @ Rs. 30,500/ton: Rs. 28,18,200 (Say Rs. 28,20,000)

Profitability in Candle production

How About This: Aloe Vera Gel Manufacturing Project Report.

Profits in Candle Manufacturing
Profits in Candle Manufacturing (pic credit: pixabay)

Profit = Rs. 28,20,000 – Rs. 25,99,870 = Rs. 2,20,130

Net profit ratio = Profit x 100/Turnover = 7.8%.

Target consumers for Candle Manufacturing Business

The target consumers for this candle making business are:

Antique stores: The antique stores keep candles to sell the antique items such as antique lanterns, chandeliers, lamps, etc.

Décor store: The home décor shops require various sizes of candles with a wide range of colors and shapes to cater to the interior needs of clients so that they can use them to place on tables, lamps, stands, etc.

Aromatherapy centers: Aromatherapy in the present times is widely utilized wherein people have a body or a facial massage by keeping aroma candles that disperse a pleasing fragrance that relieves stress and develops a refreshing environment.

Meditation and retreat centers: As a part of the medication and therapy these centers do keep some type of candles for lighting purposes while treatment.

Religious requirements: The religious places such as like temples, churches, and mosques people light candles as a part of their traditions and rituals.

Beauty stores: Candles are also used by beauty-conscious consumers to keep candles while they have their baths so some stores keep them for beauty purposes.

Social media beauty influencers: Few of the tailor-made candles are used by beauty influencers who while showcasing the procedure of using a face mask by keeping a flickering candle close by to attain a sort of aesthetic vibe.

Rural consumers: It is widely used in villages as a substitute for torches or any power source when there is a power cut to light up the house. Apart from that, some remote areas with no power facility depend on candles only for light sources at night.

Occasions: There is some particular kind of candles which are made as per the occasions such as for birthdays, marriage anniversaries, bridal showers, etc.

Marketing strategies to promote your Candles

You can promote your Candles through B2B and B2C websites:

B2B websites: The websites like – 

  • Alibaba,
  • Indiamart,
  • Tradeindia,
  • ExportsIndia will take the bulk orders for your Candles.

B2C websites: To sell the products directly to the customer, you may also market in the well-established websites like–

  • Amazon,
  • Snapdeal,
  • Flipkart, etc. 

LEAVE A REPLY

Please enter your comment!
Please enter your name here