Carpet Making Business - How To Start In India

Introduction to Carpet making business

This article is about that product which is seen as a part of the decoration in almost every typical Indian household, it’s the main cause is we’re asked to keep our shoes outside and not roam around with muddy feet so that we don’t ruin the carpet.

Are you aware? The Indian carpets manufactured in India are available at a cost 5 times higher in the USA than in India? This indicates the value of the abroad market for precision and artisanal work.

A step-by-step guide to Carpet making business in India

Carpets are the dominating materials in India. India is the world’s largest producer and exporter of carpets concerning the quantity and value. Around 75%-85% of carpets manufactured in India exported to more than 70 countries of the world.

This Carpet making business that was customary for years and has become a prosperous industry since the 16th century with all the competitive edge to you in terms of labor, Indian handicrafts, the raw material has paved the way for this business opportunity.

Market potential in Carpet making business in India

Carpets are textile floor coverings that are mainly made of thick woven fabric. These could be classified based on

Handmade carpets
Manufactured carpets

The market potential for carpets is greatly contributing to its domestic as well as foreign demand. Moreover, exports of carpets from India stood at $1.37 billion in 2020.

Further, the market for carpets is growing because of the handcraft and artisanal and labor-intensive, precision work involved that attracts foreigners and local people because of unique regional artwork involved in carpet making especially in cities like Agra, Jaipur, etc.

The market potential for this business can be further be explained and dug into on the following elements

Based on carpet fabric used

Nylon
Triexta
Polyester
Wool
Olefin
Based on carpet piles and face weight
Low pile carpet
Medium pile carpet
High pile carpet

Based on indoor carpet style and construction

Texture carpet: in rooms and bedrooms
Berber carpet. : in stairs, hallways, and basement
Pattern carpet: in commercial offices
Based on knots involved in carpet
Symmetrical knot
Persian knot
Tibetan Knot
Jufti knot
Based on the uses of carpets
Insulating a person’s feet from cold tiles and avoids direct contact
Used for performing holy rites
Used to make space or room convenient
Used to decorate the interiors
Used reduce sound while walking
Used for yoga

Process of manufacturing carpets

Woolen yarn spinning
Yarn dying
Raw washing
Weaving
Designing
Yarn opening
Shearing
Embossing
Binding
Seinging
Final clipping
Stretching
Drying
Final washing
Packaging

License, permissions, and registrations required to start a Carpet manufacturing business

The licenses that are essential to run a Carpet making business would be OPC Registration,

Trade license, MSME Udyog Aadhar registration, GST Registration, PAN, and Aadhar card. If you are willing to start a Carpet making business then these are the different registration and licenses required to complete before starting this business.

Registration of firm: You have to register your firm either as a proprietorship or partnership firm.
GST registration: Additionally, you need to get registered for the GST number. Trade license: You also need to register for the Trade License from your local authorities.
Pollution certificate: As Carpet making Business deals with selling plastic and others that may create pollution to the environment so for safety purposes, it is better to take pollution control certificates from the pollution control board.
MSME/SSI registration: MSME Udyog Aadhaar Online Registration should be acquired and is compulsory for every business to start this will allow you to avail of all the government schemes related to your business.
Trademark: You need to protect your brand then you must apply for trademark registration from the municipal authority in your area where you have decided to start the business.
IS 4955-1968: Along with all these the BIS registration and IS 4955-1968 registration have to be done for the household use of Carpet products and it is also required to initiate a distribution network for your business then you have to get ‘distribution agreement paper’.
SSI unit registration: You also have to apply for SSI unit registration which helps you to avail of the government subsidy and other benefits. For this, you need to open a current account in the bank in the name of your business.
Shop license: You need to acquire a shop license before starting the stationery business in India.

Investment required to start Carpet making business

The investment needed to set this business is about ₹5 lakh – ₹ 10 lakhs.

Profit in Carpet making business

The profit from this carpet-making business is around ₹50000-₹100000 monthly.

Profit margin in Carpet making business

The profit margin in carpet making business is around 20-30% at the initial stages. Later based on the quality designs you can get more percentage compared to the initial stages.

Target customers in Carpet making business

The target consumers for your carpet making business are:

Households: They need carpets to make their living room and bedrooms decorative. It is also useful to maintain a safe environment or flooring for children to play.
Hotels and restaurants: These need carpets for decorative purposes to develop an attractive area usually at the entrances and even to embed flooring with carpets.
Meditational centers: Carpets are also used in a few meditation centers which need the people to perform floor meditational exercises that give them comfort.
Commercial offices: The huge modern and contemporary office spaces are using carpets for keeping an organized and aesthetic look especially at cabins, conference rooms, corridors, etc.
Theatre halls: The movie theatres, multiplexes also need carpets of high pile material to give them an appeal while making it easy for the audience to relish their experience while they are at it.
Exhibitions: The handicraft exhibitions, artisanal shows, etc are even potential targets that will attract foreign tourists as well as domestic travelers, etc.

Area required to start Carpet making business

The area needed to set up this carpet-making business is about 500 sq. ft. The success of a business mainly depends on its location. For this, several aspects must be taken into consideration. In particular, the reachability of the premises, the visibility of the store, the operating surface, the market competition, the price of the rent as well as the conditions of the lease.

This choice will be based on the products offered for sale. When it comes to a Carpet store, a shopping street or mall are proper locations. On the other hand, it is recommended to settle in a shopping street or a residential locality in a metro city.

Raw materials required

The raw materials needed to set this carpet-making business are

Wool cotton
Synthetic yarn
Dyes
Chemicals
Packing material

The machinery required to start Carpet making business

The machinery needed to set up this business are:

Tufting machine
Shearing and trimming machine
Wool extraction machine
Stitching machine
Dying machine
Digital printing/printing machine
Yarn heat setting machine
Back coating machine

Manpower required to start a Carpet making business

The manpower needed to set up this carpet-making business is

3-skilled workers
5-unskilled workers

Moreover, proper training in terms of the following must be given with care

Machine usage
Equipment handling
Safety and precautions

Business plan for starting Carpet making business

The business model of a carpet-making business is showcased with these four variants

Value proposition: The value which this business is likely to provide to you is
Easy availability of raw materials and manpower
High demand from domestic and international travelers
Large government support

Target consumers: The target consumers for this business could be

Interior designers and contractors
Movie Theatres
Households
Commercial places
Religious places
Hotels and restaurants
Meditational centers

Competitor review: The competitors in the carpet making industry are

Karpets by KRS
Maharaja carpets
Saif carpets Pvt ltd

Marketing strategies in promoting your Carpets business

The marketing techniques that can be used by your carpet making business is

Tie-ups with interior designers and professionals
Participation in events and exhibition fairs
Bulk and cash offers to routine customers

You can promote your product through social media websites. You can even try by using either B2B or B2C websites and sell the products. Give the sample designs of your product in the nearby restaurants, hotels, malls, etc. It has great demand in the market because of its high demand for making the view differently.

Growth in Carpet making business

The carpet-making business has the capability and has showcased the following growth prospects. The Indian handmade carpet exports have increased by a CAGR of 4.3% between 2013-2017. Because of the growing “Make in India” ideology the local demand for these carpets has been upsurging within India as well as globally in around 70 other countries.

In case if you miss this: Starting A Cycle Store Business In India.

Tips for making your business a successful one

Don’t miss this opportunity of carpet making business because of the below reasons
First of all, Indian carpet manufacturing requires traditional handwork, pure fabric, and local patterns and designs which is of main interest in the foreign market.
Secondly, the raw material and labor availability are very easy that gives you the advantage of low investment and cost of production.
Lastly, it offers the chance to establish business with renowned companies and designers in the interior designing segment.

Carpet Making Business – How To Start In India

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