Written By: Bandana Gupta

To start a manufacturing business in India with an investment below 20 lakh INR is certainly a lucrative venture. Government-supportive initiatives like 'Make in India' launched by the Government of India in September 2014 have transformed the country into a global manufacturing hub. This program encourages domestic and international enterprises to manufacture in India and investors to invest in manufacturing..

'Make in India' is a critical revolution that encourages the establishment of manufacturing companies and expands the country's growth as a pioneer player in global companies.

Best concepts include

• It inspires the manufacturing sector to increase its share of India’s gross domestic product, with the goal of raising it to 25% by 2025.
• It creates employment opportunities to assist in India's growing workforce.
• Encourage the workers to develop skills to assist modern manufacturing needs
• To give opportunity to foreign investors to invest and to boost the workforce to participate in the competitive industrial environment.
• Develop infrastructure and create world-class manufacturing hubs
• To create a manufacturing business as easy doing business and enhance destination for businesses through simplified policies and reduce risk and hurdles.

List of some of the Top Manufacturing businesses under 20 lakhs

1. Organic soap manufacturing company:-

Overview:-Due to the increasing production of skin care products, people have become conscious of harmful ingredients in skin care products. So there is a drastic change in the choices of skincare products. People have shifted their interest to harmless products like handmade soaps and skincare items as they are chemical-free and made with molds, mixers, and essential oils.

The investment required is 10-15 lakh INR. It has fostered a strong brand niche as it caters to health and wellness in the market. Its homemade organic products such as charcoal soaps, rose water, natural shampoos, and hair care oils are highly in demand. Additionally, it safeguards its quality and establishes a reputation among the customers.

2. Paper Bag Manufacturing Business under 20 lakh INR:

Overview: Due to global warming there is a drastic reduction in plastic bags, and therefore the use of paper bags is in high demand by retailers and supermarkets. The investment in purchasing semi-automatic or fully automatic bag-making will meet all the demand needs.

The initial investment for a paper bag manufacturing business is as low as INR 10-15 lakhs including the cost of the machine which may be fully automatic or semi-automatic depending on the production capacity.

• The initial investment for a paper bag manufacturing business is typically low, ranging from INR 10–15 lakh. This includes the cost of the machine, which can be fully automatic, semi-automatic, or manual. The value of the machine can be evaluated on its potential to produce. 
• Space required for manufacturing, inventory, or office space can be about 1500-2000 square feet for the original industrial setup. The space should have good ventilation for airflow sufficient light and plentiful storage.
• There will be the necessity of 5 -10 staff members which include skilled and unskilled workforce.
• The raw materials required for paper bags are affordable and readily available which include paper rolls, glue, and ink.
•  This business can successfully achieve a gross profit margin of 15-20%.
• It is an eco-friendly product highly sustainable and regularly in demand. It stands out in the competition and successfully secures contracts from large buyers.

3. TOY MANUFACTURING BUSINESS UNDER 20 LAKH :

Overview: With the availability of raw materials, the Indian toy industry is expanding its presence globally. It is the second-largest producer of polyester and related fibers. Additionally, it is contributing 8% global share which includes plush toys; and a supply of plastics, paper boards, and textiles at competitive prices.

• Several states have claimed that they will provide nearly 30% of the manufacturing cost as incentives to toy manufacturers.
• Toy manufacturing companies that rely on a workforce and produce soft toys, dolls, and board games have significant manufacturing potential in India, as these products are in high demand and face strong competition in the market.
• To inspire domestic toy manufacturers globally the Govt of India has fostered more than 60 toy cluster operations in India.
• The toy manufacturing sector in India is one of the world's most dynamic and rapidly expanding markets.. It is the defender sector with massive export potential. In addition, it has increased high-value exports to Middle East and African countries.
• The government implemented the Toys Quality Control (TQC) in 2021 to maintain standardization in toy production and import ensuring the safety of the product. There is The import duty on toys has been uplifted from 60% to 70% in budget 2023.

4. JEWELLERY MANUFACTURING BUSINESS UNDER 20 LAKH :

Overview:

The jewelry industry in India shares a significant part of the country's economy. It is well known for its mixture of authentic craftsmanship with a hint of modern manufacturing techniques. The jewelry manufacturing business involves the design, creation, and selling of jewelry. Here are some things to consider when starting a jewelry manufacturing business: 

The jewelry industry in India is known for its mix of traditional craftsmanship and modern manufacturing techniques. The following are the factors to be considered when seeking a jewelry manufacturing business.

• Selecting the right kind of material is important when one opts for a jewelry manufacturing business because it may affect the quality and ultimately the value of your jewelry.
• Remarkable designs on jewelry pieces always attract customers, so it is necessary to go for the latest trendy designs to create exceptionally beautiful jewelry pieces to give cutthroat competition in the market.
• After furnishing the design on the jewelry pieces, it is necessary to get it polished and give the finishing touch with precision and care.
• Once the jewelry pieces are ready the next step will be the market to sell them.

Study about the segment or category of your jewelry in the market and prepare for the challenges. Focus on the latest jewelry trends by reading magazines on jewelry and also attending workshops and staying up-to-date on the social media platform. 

Set up a brand that will make an impact in the market. After choosing a workspace for your jewelry business decide about owning the jewelry or hiring suppliers from other sources. Finally, seek different sources to market your brand. It can be online stores, social media, and other market strategies to reach potential customers. By publishing professional photos of the product on social media it will be easy to increase your sales.

By choosing the right materials, and designs, setting up manufacturing processes, and marketing strategies, and managing finance, One can set up a successful jewelry manufacturing business.

5. FURNITURE MAKING MANUFACTURING BUSINESS -

To open a furniture-making business is quite daunting if you are not prepared and not experienced. But once you gain experience it can be rewarding. Some of the important things one must know before planning to start a furniture business.

1. You should research the furniture market, including the latest models and your target clientele. . 
2. Preparation of a business plan that will show your financial status and utilization of capital. A sample of a business plan can be used as a guide.
3. Decide about the investment plan for the business and contact some investors to raise funds if you do not have sufficient funds to invest in your business or invest your capital.
4. To start any business it is necessary to register your business name and DBA, own a legal name, and also obtain tax registration.
5. The next step is to apply for a license and permission to start your own business.
6. Apply for business insurance to protect your business from incurring any loss in the future.
7. Create a website to launch your business onsight.
8. Focus on the target audience and encourage the customer to buy your products repeatedly. For that specialize yourself in a particular type of furniture to create an image in the market.
9. Lastly, create a remarkable brand that will differentiate and make you stand out in the market.

Some of the well-known furniture businesses include;

• Bamboo cane - This lightweight wood is for decorative furniture.
• Leather - Leather furniture is mostly in decorating halls and dining rooms. They are mostly for furnishing in the office room. They own the furniture market.
• Steel furniture- It is highly demanding and profitable all year round. It can be started with low-cost equipment and raw supplies from nearby sources.

Conclusion :

To conclude we can say the future of the manufacturing business is very optimistic. There are several initiatives by Govt to motivate the manufacturing sector e.g. Make in India, Atmanirbhar Bharat, etc. Besides, whenever you decide to start a manufacturing business all you need is to make a thorough identification and market research followed by a manufacturing setup. Before that, it is advisable to get the assistance of a manufacturing consultant or FranchiseBAZAR to start this manufacturing business.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.