Manufacturing Business Under 1 Lakh Investment in India

India, the world’s fastest-growing large economy, offers an extensive range of opportunities for entrepreneurs. The diverse market allows for an impressive variety of manufacturing businesses that can be initiated with an investment of less than 1 lakh INR. Here is a helpful and informative guide about the best choices that can bring you success and money.

Manufacturing Business Under 1 Lakh in India

Paper Product Manufacturing

Paper products are always in demand, given their wide variety of uses in education, offices, restaurants, and even at home. With an initial investment of around 70,000 INR, you could start a small-scale paper product manufacturing unit. Products like paper bags, plates, cups, and envelopes are popular. Your primary expenditure will be on a good-quality paper-making machine and raw materials. The remaining amount can be allocated for marketing and operational costs.

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Manufacturing Business Under 1 Lakh in India: Paper Product Manufacturing

Soap and Detergent Manufacturing

India’s soap and detergent market size was valued at over 206.87 billion INR in 2020, and it continues to grow, presenting a profitable opportunity. You can begin a small-scale soap and detergent manufacturing business for less than 1 lakh INR. The main expenses will be raw materials, molds, and a space for manufacturing. Homemade and organic soaps are particularly popular today due to increasing awareness about chemical-free products.

Leather Belt Manufacturing

The leather industry in India is expected to reach a market size of INR 27.87 billion by 2021. With an investment of around 80,000 INR, you can start a small-scale leather belt manufacturing business. The main expenses will be raw materials, cutting and finishing tools, and packaging materials. The remaining funds can be used for marketing efforts and other administrative expenses.

Herbal Hair Oil Manufacturing

With a rising interest in natural and chemical-free products, starting a herbal hair oil manufacturing business could be profitable. An initial investment of around 60,000 INR would be necessary, with the main expenses being raw materials like herbs, base oils, and bottles and a license from the Ayush Department.

Bakery

Starting a small-scale bakery could be another profitable venture, considering India’s growing demand for bakery products. With less than 1 lakh INR, you can set up a home-based bakery, investing in baking equipment, raw materials, and packaging. As your business grows, you can consider moving to a commercial space and expanding your product range.

Mobile Phone Accessories Manufacturing

India’s mobile phone accessories market is projected to reach INR 3.54 billion by 2024. With less than 1 lakh INR, you can start a small-scale manufacturing business for mobile phone accessories like phone cases, screen guards, etc. The primary expenditure would be on raw materials and a small-scale manufacturing setup.

Candle Manufacturing

Candles have significant demand in India due to their religious, decorative, and therapeutic use. For less than 1 lakh INR, you could start a small-scale candle manufacturing business. The basic raw materials – wax, wicks, essential oils, and packaging materials – are affordable. Your major expense would be the molding and shaping machines, which vary based on the desired product complexity.

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Handmade Chocolate Manufacturing

The Indian chocolate industry is forecasted to grow at a CAGR of 12.3% during 2020-2025. Capitalizing on this growth, you can initiate a small-scale handmade chocolate manufacturing business with an investment of under 1 lakh INR.

The primary expenses include raw materials like cocoa, sugar, milk, various flavoring agents, packaging materials, and basic kitchen equipment. Marketing the chocolates online through social media platforms and e-commerce websites could also help reach a wider audience and increase sales.

Custom Jewelry Manufacturing

The jewelry market in India is thriving, and there’s a growing demand for unique, custom-made jewelry. With an investment of around 80,000 INR, you can start a custom jewelry business. Materials like beads, threads, and semi-precious stones form a major part of the expenditure. The remaining budget can be used for marketing, packaging, and potentially hiring a skilled artisan if you lack the necessary skills.

Food Processing

With changing lifestyles and dietary habits, there’s a rising demand for processed and packaged foods. Businesses like pickle making, jam production, or spice grinding can be started with less than 1 lakh INR. The primary expenses include raw materials, packaging, and basic machinery for processing. The FSSAI license is also needed, which will be a part of your initial investment.

Agarbatti Manufacturing

The incense stick market in India was valued at over 3,840 crores INR in 2020. With around 50,000 INR, you can start a small-scale agarbatti manufacturing business. The main expenses will be raw materials like bamboo sticks, essential oils, charcoal dust, jigat powder, and a simple agarbatti-making machine.

Organic Fertilizer Production

With the rising awareness of sustainable farming and organic produce, there’s a growing demand for organic fertilizers. You can start a small-scale organic fertilizer production business with around 60,000 INR. Your major expenditure would be on raw materials like vegetable waste, manure, and packaging.

Jute Bag Manufacturing

As the world moves towards eco-friendly alternatives, jute bags are gaining popularity. You can start a small-scale jute bag manufacturing business with less than 1 lakh INR. The main expenses would be raw materials, sewing machines, and printing units for customization.

Plastic Product Manufacturing

Despite environmental concerns, the demand for plastic products remains high. With an investment of under 1 lakh INR, you could start a plastic product manufacturing business. The primary expenses include the cost of a plastic molding machine and raw materials. Plastic containers, bottles, and kitchen utensils are some products you can consider manufacturing.

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T-shirt Printing

With around 70,000 INR, you can start a small-scale t-shirt printing business. The primary expenses are a heat press machine, blank t-shirts, and printing materials. Online platforms can be used to promote and sell your products, reducing the need for a physical store.

Conclusion

Given their low initial investment and high growth potential, these businesses can provide a solid foundation for entrepreneurial pursuits. It’s important to note that while the initial investment may be minimal, these businesses require dedication, hard work, and a strategic approach to succeed. Market research, understanding consumer needs, effective marketing strategies, and constant innovation are key to making these businesses profitable in the long run.