If you are looking for a manufacturing business idea, you have come to the right place. We have listed the top 10 manufacturing startup ideas under 1 lakh.
Top 10 Manufacturing Business Ideas Under 1 Lakh: If you’re new to the business world, starting your own company can seem like an insurmountable task. The good news, however, is that there are many different industries to choose from and plenty of business ideas you can pursue even if you don’t have an initial sum of money to invest in the business itself.
Top 10 Manufacturing Business Ideas Under 1 Lakh
In fact, there are businesses out there that will cost you less than 1 lakh to start and run! This article talks about some of the most popular and profitable manufacturing business ideas under 1 lakh.
No.1 – Dairy Product Supplier
In India, one out of every two people is a vegetarian. This is one of our reasons for being such a milk-drinking nation. And because we are so much into dairy products, there are plenty of opportunities to be had in selling raw materials used in producing these products to large processors and manufacturers. In fact, if you want to manufacture small quantities (say 25-100 kgs per day).
You can still make decent profits by working on an independent or semi-independent model with large dairies and producers for whom you will source the raw material or something that gets transformed into raw material. You could also work with smaller farmers directly to sell them whatever they need to grow their business.
So, whether it’s animal feed or just regular fodder like corn silage, haylage, or grass silage, all of these materials find their way into cows that produce milk. If you have your own farm where you raise cattle then you could even supply them directly. If not, then go ahead and look at what’s available locally and go from there.
No.2 – Packaging Material Manufacturer
According to a recent report by Technavio, the global packaging market is projected to grow at a CAGR of around 5.3% by 2020. The growing demand for innovative and eco-friendly packaging materials is one of the major driving factors in the industry’s growth. Packaging material manufacturers play an important role in building different types of packages such as cartons, clamshells, stand-up pouches, etc.
The major raw material needed to produce these types of packages is plastic, paperboard, foils, and other special kinds of materials like aluminum foil, PET, etc. So if you have sufficient capital and knowledge about printing/cutting machines along with required accessories then start your own business from scratch by taking packaging material manufacturing services. In addition to that, you can also sell those printed boxes or printed cartons directly to customers who are willing to buy them at lower prices.
You can also consider buying second-hand machines which would help you save money while starting a new business venture. There are plenty of options available so make sure that you choose wisely before deciding on something specific. If you don’t want to go through all hassle then consider getting into the contract packaging sector where there is no need for any machinery or equipment as everything will be provided by your client but profit margins would be very low compared to what it would be in case of selling your products directly or through retail channels.
No.3 – Solar Equipment Supplier
In a world that’s going solar, it’s more important than ever to invest in equipment for developing renewable energy. Fortunately, you can buy or rent everything from solar panels to inverters and transformers online. If you purchase equipment, choose from a wide range of manufacturers like Suntech Solar and Hyundai Heavy Industries and expect to pay around Rs 12 lakh for an initial setup.
Consider incorporating a power-purchase agreement (PPA) with your first few customers if you want to secure predictable returns on your investment. In states where PPAs are legally binding contracts, such as Maharashtra and Gujarat, you’ll have to seek legal advice regarding your rights under such agreements with developers. If you’re looking to start a manufacturing business and have little money but still want to get into renewables, consider leasing instead of buying.
You’ll only need about Rs 5 lakh for a basic installation including solar panels, trackers, and wiring. Leasing has its own risks, however: once your lease is up after 20 years, so is your business unless you renew it or sell off all assets at market rates. A third option is hiring an independent contractor who will manage all installations for you but will require at least Rs 15 lakh upfront plus monthly fees based on how much work they do.
No.4 – Metal / Iron Scrap Supplier
The Iron and Metal Scrap industry is a rapidly growing field. The term scrap refers to cast-off material made of iron or steel, which can be recycled to use in many different ways. The scrap metal business is rather attractive because you are recycling something that would otherwise end up as trash. Despite how simple it may seem, becoming a supplier of scrap metal requires some degree of expertise and experience. You need a good working knowledge of metals and manufacturing, as well as government regulations regarding waste disposal – both on national and local levels.
You also need access to resources for recycling these materials – meaning you should have an established relationship with another business that handles disposal or re-manufacturing processes in your area. Lastly, you will want to set yourself apart from other suppliers by offering a range of services that go beyond simply selling scraps. For example, if there’s demand for certain types of scrap (like copper wire), consider offering buyers who purchase large quantities at once discounts on shipping costs.
If there’s no demand for certain types of scrap (like automobile parts), consider giving them away free with every purchase over a certain amount. This way, when people come looking for one type of scrap but find themselves unable to sell it profitably, they will take what they can get instead – increasing your overall sales volume without actually increasing your overhead costs.
No.5 – Meat Supplier
A meat supplier is required for any restaurant business, hotels, party halls, and more. They will purchase raw meat from sellers, package them and sell it to food outlets. This business can be started with an investment of Rs 50,000. A truck or van will be required for transporting meat from market to shop. You can get a good contact list of restaurant owners through word of mouth and social media platforms such as Facebook. The owner of a meat shop earns approximately Rs 5 lakh per month on an average in Mumbai region while in Delhi it is around Rs 2 lakh per month.
A vehicle expense should be kept at around 40% of your total monthly income after deducting other expenses such as rent or loan installment payments etc., while taxes should take up another 20%. No.4 – Soap Supplier: Soap suppliers are needed by all households and hotels.
The best way to start a soap business is by purchasing soaps in bulk directly from manufacturers or distributors. In order to sell soaps, you will need stalls/shops where you can display your products. You can also set up stalls outside schools, colleges, hospitals, and residential areas where people usually walk past during their daily routine.
No.6 – Recycle Waste Plastic For Oil Industry
Waste plastic for the oil industry is one of the top 10 manufacturing business ideas under 1 lakh. In India, there are more than 36.1 million tonnes of plastic are generated every year and less than a quarter is recycled. Plastic waste has become an environmental hazard, clogging drains and entering landfills where it remains for decades without degrading.
The most remarkable advantage that waste plastics have is that they can be reprocessed into materials similar to those made from petroleum products such as polyester, acrylic, and nylon. This process also reduces your carbon footprint while saving you money as you don’t have to dispose of large quantities of trash. More than 40 percent of petrochemical industries use plastics in manufacturing vehicles, houses, electronics, and appliances – all of which can be reduced with upcycling.
No.7 – Stone Polishing And Cutting Shop
The stone polishing and cutting business has a wide range of options, from single-stone gems to large-scale carvings. In fact, you can use your skills as part of a team if you’re not ready to strike out on your own. You may be surprised at how much people are willing to pay for unique items that they won’t find elsewhere.
Since any stones that you cut or polish are yours (or your employer’s) once you’ve finished with them, it might be easier than you think to get in on the game! Even if gemstones aren’t your thing, there are other materials out there just waiting for someone to put their personal touch on them – consider antiques or reclaimed wood as two different examples!
No.8 – Cooking Gas (LPG) Bottling Facility
As per your budget, you can start a small-scale business of bottling cooking gas (LPG) and selling it to households in cities. For example, if you are setting up a 500-liter-capacity business to bottle cooking gas in Chandigarh for families of three people each.
You need to invest just around Rs 30 lakh in buying all necessary equipment like a cylinder filling machine and heat exchange unit. However, make sure that there is a demand for your product before starting such a venture. You may also buy 5-liter bottles already filled with cooking gas from businesses already existing in your area by paying them less than Rs 20 per liter as a return on investment.
No.9 – Textile Spinning Mill
In India, natural and synthetic fibers are blended to manufacture a wide range of textiles. And with more than 5000 spinning mills in India producing yarn for every possible use, you can easily imagine how huge is the industry. But at present, only 12% of total production is being exported and more than 50% is consumed by domestic apparel manufacturers.
So, there is a great scope for us to set up our own manufacturing unit and spin yarns to manufacturing garments locally under export-oriented conditions. This kind of business requires an initial investment of around Rs 70 lakhs to get started.
No.10 – Fireworks Manufacturing Unit
With India being a country of festivals, a fireworks manufacturing unit could be very profitable. Fireworks are sold in most parts of India and are also exported to many countries across the world. Hence, opening a fireworks manufacturing unit is an idea with a good scope. Here are some points that could be useful for starting a fireworks business.
Also Read: 10 Business Ideas Under 10 Lakhs in Pakistan
Conclusion
Today’s manufacturing sector is highly competitive, leaving many businesses struggling to make ends meet. With over a million manufacturing companies in India, it is tough to get noticed by your target audience. A new entrepreneur will be able to launch a startup in manufacturing at a very low cost and scale up as your business grows.
Here are some of our favorite cheap manufacturing business ideas. If you want more information on how to start a profitable manufacturing business with minimal investment in India under one lakh rupees visit.
