10 Steps to Start Manufacturing Business in India

Are you thinking of turning your passion into a business? The world of small-scale manufacturing business ideas offers a wealth of opportunities and could be your dream venture. It could be the right time for aspiring entrepreneurs to tap into these trends of best manufacturing businesses shifting consumer demands towards unique, sustainable and personalised products. 

You can select a few manufacturing business ideas after a little research that can range from creating eco-friendly products to many more businesses providing you a diverse avenue to create and grow. In this blog, we'll find out some of the best manufacturing business ideas, helping you discover the most innovative path to start your venture.

What are manufacturing businesses and their importance?

Manufacturing businesses are companies that produce goods initially on a small scale and later expand their operations. When the manufacturing businesses were small in the beginning, they were typically defined by their limited employee strength, low-key production, localised operations, and specialised products targeted at niche markets. 

The top manufacturing business ideas help in building a strong economy offering innovation, jobs and sustainability. With product quality and community engagement, these manufacturing businesses contribute to a diverse and dynamic business landscape.

Some of the key characteristics and functions of manufacturing businesses are :

1. Size and Scale: These manufacturing businesses in India are classified based on employee strength and annual revenue.
2. Product Range: Manufacturing businesses make products ranging from hand crafted to custom machinery and equipment made. Some examples are handmade soaps, candles, jewellery, food products, clothing, furniture etc. The focus is on quality and uniqueness of the products catering to specific consumer preferences and demands.
3. Local Production: By localising operations, manufacturing businesses connect and understand customer needs better and they can also respond to local market trends establishing strong relationships with local people. Sourcing from local areas also cuts transportation costs for these entities.
4. Innovation and Customisation: Manufacturing businesses must be prompt and adaptable to changes in the market. Customers appreciate products customised for their experience and become brand loyal.
5. Job Creation: Manufacturing businesses create job opportunities employing within their communities. By hiring talent locally, these businesses contribute to the economic development of the area.
6. Sustainability Practices: It is a growing practice nowadays to use eco-friendly materials for production methods by manufacturing businesses. Sustainability commitments ensure environmentally conscious consumers and it also reduces the impacts of manufacturing.
7. Challenges and Opportunities: To set up a manufacturing business, you usually face some challenges and opportunities like any other business. The challenges include access to capital, competition, regulatory hurdles and the like. There are opportunities also and that is the ability to innovate, build strong customer relationships and adapt to market changes and all this can help in significant growth.

How to start a manufacturing business?

Here is a list of manufacturing business ideas that are popular and may help you in deciding an option that suits you.

1. Handmade Soap and Skincare Products

Handmade products have had very high market demand for a few years and are growing. It has a relatively low start-up cost as it involves sourcing raw materials and equipment that are not very expensive. Consumers are particular about seeking natural products that are chemical free as skin sensitivities and environmental impact is being given priority.

The business of handmade soaps and skincare products has an opportunity to be creative in packaging and marketing. For a beginner, you can experiment with organic essential oils, herbs and other natural additives. Some of the popular products are scented soaps, moisturisers, anti ageing serums and hairfall lotions etc.

Usually straightforward marketing using social media platforms, online marketplace and local shops could be a way to start. Later as the brand grows, you can collaborate with beauty influencers to promote your brands if you do not have the budget. For customer retention you can also offer subscription-based services or customised skincare products with business growth.

By maintaining consistent quality, attractive packaging and offering natural ingredients you can add value to customers. If you are passionate about beauty and wellness products, you can try this start up manufacturing business idea. 

2. Bakery Products Manufacturing

Freshly baked products from bakeries are a delight and in high demand. With fast lifestyle and change in food habits, bakery products like bread, pastries, cookies, cakes etc are becoming popular for daily consumption or for special occasions. So, a bakery could be a manufacturing business example for aspiring entrepreneurs.

For your bakery venture you need to invest in some basic equipment like ovens, mixers, baking trays etc. It is recommended to select your speciality area like artisan bread or gluten free pastries as these trends are growing towards healthier eating. Moreover many customers prefer organic, vegan and allergen free bakery items thus presenting opportunities for aspiring entrepreneurs.

For effective branding and promotion, ensure your products are of high quality with interesting packaging to set them apart from competition. In small localities many times, bakeries often gain customers by word of mouth and local community support. You can also expand your reach by partnering with delivery services or selling your items through online platforms, grocery stores or popular cafes.

A bakery business can thrive in any community if the products are of high quality and there is uniqueness in product variety.

3. Jewellery Manufacturing

If you are creative and skilled in working with metals, gemstones and other materials, jewellery manufacturing may be the right business idea for you. Today handmade and custom jewellery 

have become popular trends as there is huge demand for them from consumers. This is also a possible manufacturing business example for aspirants.

The growing jewellery market has many opportunities for newcomers. You can begin with creating simple affordable jewellery pieces to high-end design as you grow in the business. To begin with, you can focus on select products like rings, bracelets or necklaces, created from 

eco-friendly and sustainable materials that are ethically sourced. If you wish to create quick sales of your jewellery creations, you can try selling them through popular online platforms that sell similar kinds of jewellery. 

There are several ways by which you can expand your business. You must create a strong brand identity and learn the tricks of the business once you research the market well and design jewellery that sell. Networking and marketing through social media, influencer marketing, craft fairs can establish a good customer base for your jewellery business. This business is a relatively low cost startup and you can grow it with your product line and sales.

4. Clothing Manufacturing

A popular manufacturing startup idea could be clothing manufacturing that has consistent demand for niche garments all round the year. Different genres of clothing from streetwear to athleisure to professional - there is a market for customised clothing products for customers.

A clothing manufacturing business investment involves some basics like sewing machines, fabric, threads, production tools et al and it is relatively low cost for entrepreneurs. You can begin manufacturing small batches of garments and sell them online or partner with a boutique. Social media platforms are a tried and tested channel for many successful clothing startups. People also buy from instagram where designs get a considerable following.

As a clothing manufacturer, it is important for you to follow trends in fashion needs like creating eco-friendly, sustainable garments, production of personalised clothing like custom T -shirts, embroidered uniforms or limited edition collections etc. This way you can be different as a customised clothing manufacturer from larger brands that focus on mass production.

A clothing business becomes efficient with quality materials, unique designs, and seamless production processes. With consistent focus, a clothing manufacturing business can quickly grow from a small operation into a successful venture.

5. Paper Bag Manufacturing

Paper bags have emerged as an alternative and as an environment friendly option for people all over the globe. The push for plastic waste reduction has also given rise to alternatives and paper is a forerunner in this drive. Nowadays groceries, retailers and also consumers prefer eco-friendly products. 

One of the best manufacturing businesses in India, paper bag making can prove to be a highly scalable business in future. You can start a small paper bag manufacturing local business that is a low cost start-up. The equipment you would need to invest on are relatively affordable like simple machines for cutting, folding and printing. Paper and adhesive will be the raw materials essentially and the venture can begin with minimum capital.

Paper bag manufacturing business can give you an option for packaging material production. People are concerned with sustainable packaging nowadays and so this opportunity is great for offering innovative biodegradable packaging that could be customised, branded with logos etc. 

This could be an attractive option for companies wanting to promote themselves as an environmentally conscious enterprise.

To be mindful of the green economy and reducing plastic waste, paper bag manufacturing is an excellent opportunity for aspiring entrepreneurs to provide a product that's high in demand.

6. Snack Food Production

A lucrative manufacturing business in India could be snack food production that provides a wide opportunity for entrepreneurs. Growing demands of healthy, organic or gourmet snacks provide a huge potential for innovation and niche products. Snack food production business includes a wide spectrum of varieties mainly chips, popcorn, energy bars, nuts and baked goods.

As a snack food manufacturer your research into this business shall help you focus on niche products like gluten free ,low-fat or vegan snacks that have become very popular for health conscious consumers. You can also focus on traditional snacks which have a huge market especially during festivals. Local delicacies or cultural specialities also have a good market share and that can be your focus as well.

The investment in this business includes fryers, ovens, packaging machines and labelling tools etc. You can promote your products through local stores, e-commerce and food delivery apps. Effective branding and promotion, attractive packaging and good product quality are the basic ingredients for success in this endeavour.

The snack food manufacturing industry can be scalable once you establish a consistent production process and customer base. With minimal investment in equipment and ingredients, snack food manufacturing can be a lucrative business. In your snack food manufacturing business, to gain high profits you need to establish a consistent production process and increase customer base.

7. Candle Manufacturing

One of the most cost effective manufacturing businesses is candle making. Designer candles became popular as style statements and today they are used as home decor, at religious ceremonies, as aromatherapy gifts, at festivities and the list goes on. This versatility of candles has a demand across several markets. 

You need a few basic requirements for the candle manufacturing business like wax, moulds, cooling racks, wicks and fragrance oils. To make your candles stand out, you can be innovative with a variety of products like scent for scented candles, soy based eco-friendly varieties, decorative designs and many more. You need to do a thorough research for this business and find niches that could be an opportunity for scaling your venture like creating candles for special occasions like weddings, holiday homes etc. 

Begin selling your candles through social media and e-commerce platforms that can establish your brand. Also try other channels of selling your products like craft fairs, boutique stores, local shops that will expand your reach. With a modest investment you can generate good profit once you have established your brand.

8. Furniture Manufacturing

A business in furniture manufacturing could be profitable due to high demands for home, office and outdoors. The furniture market ranges from simple utility furniture to luxurious custom-made pieces. New entrepreneurs can look at opportunities in this market that has a growing trend for minimalist and eco-friendly furniture. 

As a beginner, you can focus on designing lightweight and specific furniture like tables, chairs, shelves etc. There is a demand for handcrafted and customised furniture that is high quality and appealing to look at. The trend is also towards sustainable and modular furniture particularly among eco-conscious consumers.

To start, you need basic woodworking tools and simple machinery and when scaling the business, you can buy or outsource complex machines. Marketing and promoting through online platforms or partnering with interior designers can expand your reach. Skilled craftsmanship and unique designs can establish your business amongst other players. 

9. Leather Products Manufacturing

A broad range of product possibilities are there in the leather manufacturing business and some of them are regularly used by people like wallets, belts, handbags and shoes. When creating luxury items or custom made handcrafted products, manufacturers can expect good profits from their business. Leather is synonymous with durability and if they come with stylish designs, consumers appreciate such products that are both functional and fashionable.

For your leather products manufacturing business, high-quality leather needs to be sourced and simple tools like cutting equipment, stitching machines and stamping tools are required. You can initially start with smaller items like keychains, wallets, small bags etc. and then scale up to more products as your skill and business grows. 

When manufacturing leather goods, a premium price can be charged for a well crafted leather product. So with growing skills and business, you can make high profits in this business. Also build a strong brand identity promoting your craftsmanship through social media or offline initiatives like trade fairs for wider reach. Quality, design and sustainability can build your leather goods business soon.

10. Pet Food Manufacturing

Being a manufacturer of Pet foods can be a lucrative opportunity as this segment is fast growing and pet ownership is increasing by the day and there is subsequent demand for high-quality nutritious products. Pet owners are very conscious about the food they give their pets. You even come across pet owners looking for organic, grain free or raw diets. So you can manufacture specialised food for pets in your business for pet foods. 

Your pet food manufacturing business can start with creating specific types of pet food like dry kibble, wet food or gourmet pet treats. While raw and organic options are popular, you can manufacture healthier, more natural alternatives that pet owners look for. To begin the business, you shall need basic food processing equipment and packaging solutions.

To reach your target audience, you can promote your products through pet stores, online platforms and social media effectively. Partnering with vets may also enhance your brand identity. You can scale your business once you have established your business and have loyal customers. Expanding your product range with pet supplements or specialty diet foods will be an added advantage to grow your pet food manufacturing business.
 

Conclusion

A successful manufacturing business is a complex initiative and it requires meticulous planning , execution and consistent adaptation. With a robust strategy, well thought out business plan, hard work and a passion for business production, a manufacturing business can be a profitable business. Understanding your target market, scaling your production processes and building a loyal customer base and reliant suppliers is key to success in your venture in a constantly evolving manufacturing business industry.
 

FAQs

Q1.What are the steps to start producing a product in the manufacturing business?

Ans. Here are a few steps listed for starting production:

• Generate an idea.
• Conduct market research.
• Develop a business plan.
• Create a prototype.
• Source materials and production partners.
• Determine your costs.
• Launch your product.

Q2. How do you maintain quality in manufacturing?

Ans. Manufacturing quality includes the adherence to predefined specifications, standards, and best practices throughout the production process. It aims to consistently deliver products that meet or exceed customer expectations, minimise defects, and increase customer satisfaction.

Q3. What is a manufacturing process plan?

Ans. A manufacturing process plan explains the steps from product design and development to the manufacturing processes used to create the finished product. It includes operation sequencing, machine process planning, assembly process planning and assembly line planning.

Q4. What is a good profit per product?

Ans. On a per-product basis, a good margin is typically thought to be around 50-60%, because this doesn't factor in any other wider business costs, such as marketing and rent. If your fixed business costs are low, however, you can still turn a healthy profit with a lower margin than this.