Top 50 small scale manufacturing business ideas

Are you looking for manufacturing ideas that will help kickstart a booming business? A lot of people find constraints of funds to venture into big business ideas. People with lesser financial ability or who want to take fewer risks can choose to go in for small scale manufacturing business ideas.

Often, the costs and financial risks of taking on large-scale manufacturing hinder entrepreneurs from tier-2 and village-level. Another setback is due to fewer resources and infrastructure. However, the urge to become an entrepreneur and excel in profit-making manufacturing businesses is why we shall check 50 modest investments in manufacturing business ideas. If you are looking for low-cost small scale manufacturing business ideas in India, this post is for you.

50 small scale manufacturing business ideas list

  1. Hair oil making

Oil making needs little equipment and only a one-time investment using locally sourced raw materials like coconuts, almonds, and olives to make herbal or virgin hair oils. These oils are in huge demand and generate good revenue.

  1. Liquid Detergent

Making liquid detergent is easier, and no heavy machinery is required. Starting with a few funds, you can scale up the production in a small manufacturing set-up to gain bigger profits due to the extensive market demand.

  1. LED light manufacturing

Getting the components and assembling them in your manufacturing unit for LED lights can be a great business venture with low investment. This is one of the new small scale manufacturing business ideas, but on a roll.

  1. Scented candle

Setting up a candle manufacturing set-up at home using colors and different scents can be a profitable business venture with local and global market. According to Statia, the Indian candle market is projected to increase at a rate of 4.81%  yearly between 2024 and 2028. Additionally candle-making industry in India will achieve a value of $13.38 billion by 2028. So scented candle business has an edge and well well-positioned in the market

  1. Honey processing

Honey collected from the honeycomb comes with many impurities, and the process must go from bottling and labeling to sales. Procuring locally sourced honey and taking up this business will be inexpensive.

  1. Disposable paper plates and cups manufacturing unit

Making disposable paper plates and cups with paper for an eco-friendly manufacturing business venture can provide you with discounted loans for funding the manufacturing unit. Sustainability being the buzzword, this business has the potential to earn good returns.

  1. Flour mill

In a hugely populated country, a variety of flours are consumed, and flour production can be a great business opportunity. It is a one-time investment with subsidies from the government for buying equipment.

  1. Compost making

Compost can be made in containers or special pits, requiring little investment. The time to make a good amount of compost may initially get delayed. However, a continuous cycle will help create a good amount to sell and make a profit.

  1. Cattle feed making

For the cattle to get nutrition, all the right ingredients are used to make the cattle feed, enabling them to give better milk or meat. Since it’s an agri-based business, it allows for rebates in loans and set-up. It is a lucrative business.

  1. Brick making

With the suitability of required components and the use of modern methods, the brick manufacturing business is a great set-up with much construction in progress for better infrastructure.

  1. Sweater Making

Many wearables, such as caps, capes, tops, etc., are made from wool. This business needs very little funding and manufacturing space.

  1. Lacemaking

Not a fund-heavy or posing real estate issue, lacemaking can be done at home with smaller funding—immense value for handcrafted designs sold for excellent prices.

  1. Making bamboo mats

Bamboo mats and other articles are quite popular in regions with ample bamboo supply. It’s a low-cost manufacturing and good profits used as curtains and for seating arrangements.

  1. Kulfi making

A widely loved delicacy made from several flavors long before ice cream became popular. Still has a strong market, can be started with low investment and looks forward to good returns.

  1. Homemade Hair and skincare products

It is a fast-growing sector with many takers; people now love personalized products and shifting their choices from commercially available ones. These require very little equipment and can be made from home as small manufacturing units for hair and skincare products.

  1. Spice grinding and packaging

Ground maslas is a lucrative business proposition. Setting up a manufacturing unit for such products can gain momentum. With low investment and quality product supply, it is a sure shot at good returns.

  1. Customized t-shirt printing

Customized shirts are not just gifting options but part of many wardrobes for people who love to be different, causes and other purposes. Setting up a manufacturing unit with not so much complicated equipment can set you up with readymade plain t-shirts used for the process.

  1. Making ceramic tiles

Ceramic tiles are beautiful and great for making the décor of any place great. Manufacturing them with customized designs is what customers pay good money for and a great venture to earn good money.

  1. Camphor making

Camphor is used for religious, cosmetic and other purposes. Manufacturing these camphor pellets is easy and is not a heavy investment.

  1. Making candies

Everybody loves candies, so a huge demand for flavourful hardboiled candies sells very well. The manufacturing cost is nominal, and bulk stocks can fetch a good price.

  1. Production of Vinegar

A good understanding of the production of vinegar and bottling will help start a manufacturing process of the most used ingredient in the food industry.

  1. Making belts, wallets and handbags

Fake leather belts, wallets and handbags of different colors and designs are trending. This business requires a small investment to get started and good returns.

  1. Wig manufactures

Weaving wigs from synthetic or natural hair is a lucrative business. Hair can be easily sourced from known vendors with low investment and a definite rise in market demand for affordable wigs can help build your business.

  1. Women Footwear

Women’s footwear is a big market, and making stylish shoes at affordable costs can be possible with great creativity and low capital investment. Getting a local vendor for raw material supply for footwear can help create a profit-making small-scale business in no time.

  1. Eco-friendly terracotta kitchenware

Clay pots are back and going back to the roots. The trend has revived this ancient art, transforming it into modern terracotta kitchenware. It is a low-cost manufacturing business with great prospects in terms of returns.

  1. Personal care range handmade soap

Handcrafted soaps with natural ingredients are popular in the market. Manufacturing these handmade soaps needs a low investment and is easy to make.

  1. Indian handicraft items

These handicraft items have a huge market both locally and abroad. Making these at home with low investment can help generate good returns.

  1. Homemade bakery items

Cakes and cookies are a big hit among children and adults. Customized and affordable bakery items can be packaged and sold. It requires one one-time investment in good equipment such as an oven, which can help you earn a great margin of profits. This is one of the best small scale manufacturing business ideas in india.

  1. Pickle and condiments business

Pickles and condiments are quite a staple of many. The business has great potential with export options. You can begin with low investment and earn good profits. There is hardly any requirement for machinery and great revenue generation in a short time.

  1. Assembling phone accessories

Using inexpensive materials or getting them from known brands to start your own unit for assembling phone accessories can be a low investment but a great income-generating small-scale manufacturing business idea.

  1. Making office files

Buying readily available raw material paper and binders in bulk for file-making. It requires less investment, is easy to make, and is not very labor intensive. Encashing orders from offices, schools, etc., is a good profit-making small-scale manufacturing business.

  1. Smartphone back cover manufacturing

Almost everyone uses a phone and makes smartphone mobile back covers in different colors and designs. The raw materials are inexpensive and easy to make molds for lucrative small-scale manufacturing business ideas.

  1. Bamboo furniture making

Regions wherein bamboo can be locally sourced and employ artisans for bamboo furniture can enable livelihood to set up a sustainable, eco-friendly furniture-making business. It is a profitable venture with low investment and good returns.

  1. Ear cleaning buds manufacturing.

Earbuds are easy to make, and with the plastic ban, sustainable alternatives are used with low investment for this small-scale manufacturing idea.

  1. Rubber band manufacturing

Colorful rubber bands are in demand in several fields. It does not require much investment and bulk production in a short time is possible.

  1. Naphthalene balls making

Readily available raw materials and not much equipment for making naphthalene balls used for many purposes can be a great small-scale manufacturing business to begin and earn good profits supply to wholesale or retailers.

  1. Chalk making

There is a large-scale consumption of chalk; hence, venturing into manufacturing chalks will bring good returns. Easy to make and sell, this venture requires less investment.

  1. Saree manufacturing

Many villages are known for saree weaving with local materials, cotton, silk, banana fiber, and others. These are culturally rich and provide livelihoods for many, while grants and loans for weaving looms, etc., provided by the government for such manufacturing businesses help kickstart the venture.

  1. Healthy Ready to eat foods

Nutrition and wellness are the new fads that are picking up. Making this into a business venture by making healthy, ready-to-eat foods can be a profitable avenue to earn with low investment.

  1. Soft Toy manufacturing

There is a huge demand for toys, especially soft toys, which are profitable and provide great opportunities for employment and low investment. Raw materials procurement is easy and one of the best small-scale manufacturing business ideas.

  1. Making envelopes, cards

Handmade envelopes and cards happen to be popular. You can create appealing, craft distinctive and personalized profitable business ventures. Raw materials to overheads are cost-effective and form a part of an eco-friendly business.

  1. Fashion Jewelry

A great demand for fashion jewelry made out of beads, colored stones, plastic, wood, shells, quilling paper, resin, metal etc. Made with low investment from the confines of your homes have huge profit margins. Smaller towns and villages have a great scope as traditional cultural influences in the designs and patterns are trending.

  1. Gift boxes

Making gift boxes of every shape and size needs creative skills and low investment. However, if scaled up, it is a lucrative business by making gift boxes that are unique and of good quality with high returns in the small-scale manufacturing business startup scene.

  1. Incense stick manufacturing

Manufacturing incense sticks is quite an old trade. Reviving it with modern requirements, different scents, and attractive packaging can make it profitable. It has great export opportunities, making it an easy manufacturing idea with low investment.

  1. Diaper Making

With the increasing population, the need for diapers has increased; hence, making and selling diapers can bring good returns. It is a low-investment venture that can be carried out easily with little equipment requirement to fulfill orders.

  1. Food processing

Food processing is a vast industry with considerable market growth at a CAGR of 9.5%. However, picking one of the categories, such as preservation by fermentation like beverages or preserving fruits and vegetables using different processes, processing dairy products etc., are some of the manufacturing ideas that need not require huge manufacturing plants and funds.

  1. Sanitary napkins

These pads can now be made easily with a set-up at a budget-friendly investment. Using locally sourced materials for sanitary pad making is economical and has a huge market scope.

  1. Paper and jute bags (eco-friendly)

Since the plastic ban and environment-conscious drive, paper and jute bags are now used more. Setting up a manufacturing unit for making and stitching such bags is a low-cost initiative that can give profitable returns.

  1. Ice-block manufacturing

Many industries require Huge ice blocks for refrigeration and cooling, making them an easy-to-learn process—a small investment venture with good returns for those who want to get into ice block manufacturing.

  1. Ice cream cone-making

Making ice cream cones for wholesale dealers while the recipe may not require much investment. To begin with, it is a great small-scale manufacturing business and scale up from there.

A small-scale manufacturing business is driven by passion and skill sets, as no major funding or large-scale equipment is involved. But it can scale to a global business with the right business acumen.

What makes a small-scale manufacturing business work well in India?

India is still a developing economy, and much of the population lives in tier-2 villages. The incomes are low, and poor infrastructure impedes rapid development. Venturing into viable small-scale manufacturing will help them take on fewer risks with the available resources. Hence, the 50 small-scale manufacturing business ideas can work with many aspiring entrepreneurs from remote areas of the country.

How do you convert a small-scale manufacturing business into a profit-making venture?

Choosing the right product with high demand, having a solid business plan backing it, and acquiring funding and resources are the initial steps to earning revenue. Gradually build the brand by developing effective sales channel distribution while managing finances and operations efficiently. Making this happen will help turn your small-scale manufacturing business into a profitable venture.

What is my product market? Who will buy it, and how will I sell it?

Before setting up your small-scale manufacturing business idea, research well the market you want to cater to, production feasibility and the budget at hand. Evaluate the competition and develop an effective business plan with proper market analysis, sales, operations, financial projections and funding requirements.

How do you get investment for small-scale manufacturing start-ups?

Check out government schemes and bank loan facilities. Certain subsidies can be availed if you are an agro-based manufacturing unit, and entrepreneurs, small-scale and cottage industries have rebates and discounted loan facilities. Traditional and ancient arts also have certain privileges are available. Many financial institutions and banks also provide dedicated loans for small-scale manufacturing setups.


Hope you liked our Top 50 Profit-Making small-scale Manufacturing Business Ideas.  The small-scale manufacturing business is growing rapidly with a high turnover. Considering the right niche to invest in and optimize the potential of the manufacturing idea into a profit-making start-up. Several ideas, such as low-investment and small-scale manufacturing ideas mentioned above, will be in high demand in the future.

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