50 Top Chemical Business Ideas you can Start Small Scale

Many aspiring individuals are nowadays looking for small-scale chemical business ideas for initiating their own venture. Chemical business opportunities are not only profitable but also have big potential in export. In terms of volume of production, the Indian chemical industry is the third-largest producer in Asia and the sixth-largest in the world.

The Industry is contributing around 6-7% of the Indian GDP(Gross Domestic Production). It touches our lives in many different ways. Whether it is thermoplastic furniture we use, or a synthetic garment we wear, or a drug we consume – we all are inextricably linked to it.

This industry has key linkages with several other downstream Industries also. Such as Automotive, Consumer durable, Textile, Engineering and Food processing.

You will find different pros and cons also in the following aspects of Indian Chemical Industry. Such as;

1. high domestic demand potential

2. high degree of fragmentation and small scale of operation

3. limited emphasis on exports due to domestic market focus

4. Low-cost competitiveness as compared to other countries due to a higher cost of power and other utility, import duties, taxes, higher cost of capital and raw material and poor infrastructure facility

5. low focus on R&D despite innovative processes to synthesize product cost-effectively.

Chemical Industry Overview

According to the industry experts, Indian chemical industry contributes around 7% of country’s GDP. Bulk chemicals account for 39% of the Indian chemical industry, followed by agrochemicals (20.3 percent) and specialty chemicals (19.5 percent). Pharmaceuticals and biotechnology accounted for the remaining share.

Apart from the large and medium scale industry, there are so many chemical business ideas that you can develop as small-scale manufacturing enterprises. Here we have accumulated 40+ highly profitable chemical business ideas for your ready reference.

We can classify the chemical industry into three segments Basic, Specialities and Knowledge Chemicals. The examples are:
1. Basic: Petrochemicals, Fertilizers, Inorganic chemicals, Alkalies, Chloralkali, Aromatics, Thermoplastics, Thermosets, and Other Industrial chemicals.

2. Specialty: Adhesive, Sealant, Catalysts, Industrial gases, Paints and Coating, Pharma additives, Lubricants, Water treatment chemicals, Plastic additives

3. Knowledge: Agrochemicals, Pharmaceuticals, Biotechnology

List Of Top 50 Chemical Business Ideas you can Start with Low Investment

#1. Agarbatti Making

You can initiate agarbatti making business on a small-scale or large scale basis. Generally, the incense stick is considered a household good. It has great market potential.

The burning of agarbatti or incense in religious and social functions has been practiced in India since early times. Agarbatti an aromatic powder or paste is burnt in Indian homes as a fragrant fumigant and is reputed to possess insecticidal and antiseptic properties. Read More

#2. Agro Chemical Manufacturing

This chemical industry formulates and prepares fertilizer products, pesticides (e.g. herbicides, insecticides, and fungicides) and other agricultural chemicals (e.g. insect repellents, sheep dips, fly sprays and flea powders).

Agrochemical manufacturing is considered as one of the most profitable chemical business ideas to start with substantial capital investment.

#3. Air Freshener Production

Air freshener is quite a common product these days. People use this product at home, in offices, and also in cars. Also, the product has massive applications in large public areas like hotel lobbies, auto dealerships, medical facilities, and cinema halls.

With a small setup and medium capital investment, you can start a fragrance line of air freshener. Apart from the local market, it is a very good product for selling online.

#4. Aloe Vera Gel Production

Aloe vera is being used as the main ingredient for drinks, cosmetics, personal care, and medical products worldwide. You can start this business as a small-scale basis with small capital investment. Read More…

#5. Auto Tubes and Flaps

Currently, the automobile market is not doing so well. However, the scenario is completely different for the spare parts and accessories market. Every vehicle needs to change the tyre and tubes after a certain period of time. So, the demand is still there.

With minimum machinery setup and small investment, you can start a manufacturing unit of it. The production process is simple. And you can sell the products initially in local areas.

#6. Ball Pen Ink Refill Manufacturing

The ballpoint pen was developed as a solution to the problems related to writing with a fountain pen. A variety of raw materials is used for making the components of a ballpoint pen, ink, and refill including metals, plastics, and other chemicals. This manufacturing opportunity can be initiated on a small-scale basis. Read More…

#7. Battery Manufacturing

Generally, there are two types of batteries: storage and primary batteries. Storage batteries are also known as secondary or rechargeable batteries. Primary batteries are non-rechargeable batteries that only have one life. Battery manufacturing is considered as one of the most profitable chemical business ideas that can be initiated as the home-based also.

#8. Bindi Making

Bindi making is a simple process with good marketing avenues and profitability. Women population has replaced traditional kumkum with the decorative designer bindi. Bindi is a small piece of velvet cloth with a suitable adhesive.

It comes in different colors, sizes, and pictures. You can initiate the bindi making business as a home-based with comparatively low startup capital. Bindi is a consumable product and requires both rural and urban women. Read More…

#9. Bio-Diesel Production

Bio-diesel production unit can be established on a small scale basis at any place where the main raw material Jatropha oil is easily available. There is a continuous search for renewable sources of fuels due to the rate of depletion of fossils.

The term biofuel is used to define fuels that are obtainable from plants or animals. Being a renewable source, it is gaining attention all over the world today. Read More…

#10. Bleaching Powder Manufacturing 

Bleaching powder is mainly used for bleaching cotton yarn, textiles, and paper pulp. It is also used as a disinfectant, especially for sterilizing wounds, surgical dressings, etc. and in water purification and sanitation.

Also, it is a very good source of chlorine in the preparation of chloroform. Additionally, you can initiate the manufacturing unit on a small-scale basis with semi-automatic machinery. Read More…

#11. Bubble Packing Paper Manufacturing

Bubble wrapping papers are an essential item for fragile goods packing. The manufacturing process is not very complex and the market is also very inspiring. Read More…

#12. Candle Making

Generally, any individual can initiate a candle making business as a small-scale and part-time basis. People lighten candles not only for religious purposes but also as decor items. Apart from the traditional long white candle, there is also a very potential market for scented and decorative candles. Read More…

#13. Canvas Shoes Manufacturing

Canvas shoe production involves designing the upper and inner parts, cutting off the canvas to fit, and assembling the various parts. Additionally, you can carry out the insole fixing and trimming upper edge binding, bottom gluing in the finishing section.

The major raw materials used in the production of canvas shoes are canvas fabrics (upper), lining and rubber sole.

#14. Cartridge Refilling Business

Cartridge refilling is a great small-scale opportunity. Additionally, you can initiate the business as the home-based also. However, a retail location ensures better profitability. Having refilling skills with some equipment, you can start this business.

#15. Cement Plant

The mini cement plant is a profitable manufacturing opportunity in India. The major required raw materials are limestone, clay, pet coke, and iron dust. Permission from Pollution Control Board and BIS registration is mandatory.

#16. Ceramic Color Manufacturing

Underglaze Ceramic colors are commonly used for decoration on unglazed ceramic articles which are finally covered with a transparent glaze. Ceramic colors are pigments based on Zirconium. Additionally, you can use it directly in enamel slip, pottery, colored wall tiles, sanitary ware, etc.

Zirconium-based yellow, blue, green and pink stains are used directly for producing colored wall tiles, etc. In addition, you can initiate the manufacturing unit on a small-scale basis.

#17. Chemical Etching On Wood

Chemical etching on wood is one of the most trending chemical business ideas with low-cost involvement. Basically, you can perform chemical etching by using various chemicals to give an artistic design on wood. Basically, it is an essential interior decoration item.

#18. Detergent Powder Manufacturing

The detergent powder manufacturing process is simple. It involves the activity of mixing and grinding the right raw material with the right proportionate ratio. Detergent powder manufacturing is one of the most profitable chemical business ideas as per revenue in concern. Read More…

#19. Disinfectant Liquid

Liquid disinfectant is a highly popular item in Indian households. Also, it is an essential item for hospitals, clinics, and health centers. Dettol and Savlon are the most renowned brands in this segment.

The manufacturing process is simple. And you need a small factory set up with some basic machinery. However, it needs proper licensing and permissions from specific authorities.

#20. Dish Wash Bar Liquid Production

Dish wash bar and liquid is a popular household consumable item in India. The demand is increasing with the increasing purchase power among the people. Additionally, you can initiate the unit on a small-scale basis. Read More…

#21. Drain Cleaner Production

A drain cleaner is a chemical-based consumer product that unblocks sewer pipes or clogged wastewater drains. An effective drain cleaner can remove soft obstructions (such as hair and grease) accumulating near the fixture’s drain inlet. The product has a huge demand in modern households.

Apart from the brick and mortar stores, almost all online marketplaces sell this product for their digital consumers.

#22. Eraser Making

Rubber erasers generally made from natural rubber. Generally, students, artists, bookkeepers, typists, and others use the eraser to correct their mistakes. Eraser making project is profitable and there is demand in the domestic and export market both. Read More…

#23. Gold Plating

Nowadays, gold plated jewelry is a highly popular item among ladies. Also, the demand for gold plated spectacle frame is rising these days. With a small investment, you can start producing gold plated jewelry even at home (provided you have space).

Apart from jewelry, gold plating has industrial demand too. However, you must cater to a specific niche in the initial days.

#24. Granite Quarry

Initiating a granite quarry is a profitable venture to start with substantial capital investment. With the increasing market of the real estate industry in India, the demand for granite has also increased. Granite is an essential item in real estate.

#25. Hand Sanitizer Production

Currently, the demand for alcohol-based hand sanitizer is rising very fast. Even some of the supermarket is going out of stock for sanitizer. So, it is the most right time for starting a small-scale sanitizer production business.

You can find a brief production guide form the WHO (World Health Organization) website also. The production process is simple. However, the business demands a specific license from the Govt. authority.

#26. Hard Surface Cleaner Production

Different types of hard surface cleaners are available in the market. People use these products for overall household cleaning. Also, these are popular items for use in commercial places like restaurants, hotels, showrooms, offices, etc.

However, cleaners with different formulas work effectively on different surfaces. So, it is important to start production with a specific product that addresses specific cleaning problems.

#27. Insecticide Formulation

Insecticide formulation comes under the category of knowledge base chemical business ideas. CIB Registration and permission from the Pollution Control Board are mandatory for this type of chemical business.

#28. Latex Rubber Thread Manufacturing

Generally, hosiery industries are the major consumers of latex rubber threads. Apart from this latex rubber thread is an essential raw material for fishing baits, toys, and many medical consumables.

Latex rubber thread manufacturing is one of the most profitable chemical business ideas. Additionally, you can initiate the business on a small scale basis also.

#29. Leather Aprons Making

Basically, the Leather Aprons are protective wear items. Generally, industrial workers in the factories use this item widely. Leather Aprons are of various types and sizes, such as 24″ X 36″; 40″ X 60″; 60″ X 90″ and 90″ X 110″, etc. The principal material that goes into the production of this product is Chrome. The manufacturing process is not complex. Additionally, you can initiate the business on a small scale basis.

#30. Leather Processing Unit

The leather is animal skin. And you will need to modify it chemically to produce a strong, flexible material that resists decay.  The variety of skins and the way they are processed can produce leather as soft as cloth or as hard as a shoe sole. In other words, finished leather is used for making leather products such as garments, shoe uppers, belts, sandals, cases and covers of all types, shoe sole, gloves, transmission belts, etc. A leather processing unit or tannery is a profitable venture when you can assure the easy availability of raw materials. Read More…

#31. Liquid Phenyl Manufacturing

Phenyl and floor cleaners manufacturing are profitable small business manufacturing ideas in the hygienic product industry. The production process is not very complex. Additionally, you can establish a small scale unit with low startup capital investment. Read More…

#32. Liquid Soap Production

Generally, any individual can initiate a liquid soap production unit on a small-scale basis. So many different types of liquid soaps are very popular among people. Such as hand wash, body soap, liquid detergent, face wash, etc.

#33. Magnesium Sulphate Production ( Fertilizer Grade)

Magnesium Sulfate (MgSo4) is an essential item in agriculture. The product helps to increase the magnesium and sulfate content in the soil. Some of the commercial crops like potato, tomato, carrots, lemon, and rose need this micronutrient in sufficient quantity.

The most popular production process is from Dolomite ore. In that case, you must establish the factory nearby location of dolomite mines.

#34. Mini Paper Mill

The mini paper mill is an excellent business and one of the most profitable paper and chemical business ideas one can initiate with substantial capital investment. In initiating a mini paper mill, you should be careful in selecting a location. The major raw material for the paper mill is forest goods. Therefore, the location of the plant should be nearby the place where you procure raw materials easily.

#35. Nail Polish Making

Nail polish is commonly used as a cosmetic product. Additionally, you can start the manufacturing unit as a small-scale basis will moderate capital investment. Read More…

#36. Naphthalene Balls Making

Naphthalene balls are the popular household preservative of woolen clothes. Additionally, these are the popular deodorant tablet for the toilets, urinals, bathrooms, etc. It is a consumable product. It finds extensive applications in cities. General awareness is improving in cleanliness and hence this product has got good scope for growth. Naphthalene ball making is one of the most profitable home-based chemical business ideas. Additionally,  one can explore the business as a part-time basis also. Read More…

#37. Organic Chemical Manufacturing

Basically, organic chemical manufacturing is one of the most profitable chemical business ideas. Not only in the domestic market, but this product has also very good export potential. Selecting the right product and the right machinery is important in this business.

#38. Perfume Making

Perfume is popular as an essential cosmetic item for men and women. The market is huge and it is a profitable venture to start as per revenue is the concern. Selecting the right product category according to the market demand is a crucial aspect of getting success in this business.

#39. Pesticide Formulation

A pesticide formulation is one of the most profitable chemical business ideas to start with substantial capital investment. Proper permission, license and registration is the must in this business. Read More…

#40. Pet Jar Production

Different sizes of pet jars are the essential item in so many industries for various types of food and non-food items packaging. Additionally, you can initiate this lucrative small business opportunity as a small-scale basis with small capital investment. Read More…

#41. Rubber Band Manufacturing

The rubber band is a retail and household consumable item. The largest consumer of rubber bands in the world is the USA. The newspaper industry also uses massive quantities of rubber bands to keep the individual newspapers rolled or folded together before home delivery. The rubber band manufacturing process is not complex. Additionally, any individual can initiate this business with small startup capital. Read More…

#42. Rubber Gloves Manufacturing

Rubber gloves are essential items in the medical industry, automobile industry and manufacturing industry including food processing. The major purpose of using these rubber gloves are to protect the hand and fingers from heat, abrasion, electric shocks, chemical attack, contamination through direct contact as in the case of medical examination gloves, etc. The rubber gloves manufacturing process is not complex. Additionally, you can easily procure the main raw material rubber latex. Read More…

#43. Shampoo Production

The shampoo is a very popular consumer household item with increasing market demand. Additionally, various different types of shampoos are very popular nowadays. However, the manufacturing process is not complex. Additionally, you can initiate the business on a small-scale basis. Read More…

#44. Small Plastic Products Manufacturing

High-density polyethylene polypropylene, PVC can be blow-molded into containers of different shapes and sizes for packing pharmaceuticals, Chemicals, solvents, acids, vegetable oil, etc. The lightweight, flexibility, chemical resistant, attractive color are the positive qualities in favor of thermoplastics for packaging applications. Read More…

#45. Talcum Powder

Talcum powder is one of the most popular beauty care products. Generally, both men and women use powder to keep the skin dry to suppress the bad (sweat) odor and to feel fresh.

The demand for talcum powder is increasing day by day at the pace of awareness of beautification, the purchasing power of people, urbanization, and wide media promotion. The product has also a very good export opportunity. Additionally, you can start manufacturing unit on a small-scale basis. Read More…

#46. Textile Printing Unit

Basically, you can do textile printing in three ways. Block printing, screen printing, and roller printing. Screen printing is the most popular and profitable out of those three.

With a modern computerized screen printing machine, any individual can initiate a textile printing business with substantial capital investment. Read More…

#47. Toilet Soap Manufacturing

Different types of soap used widely by rural and urban people. Additionally, commercial soap making with allied products are profitable chemical business ideas in the manufacturing industry.

#48. Washing Blue Manufacturing

Washing blue or laundry blue is an essential household item. The manufacturing process is simple. Additionally, any individual can initiate this business with moderate startup capital investment. Read More…

#49. Water Purifying Chemicals

In the Indian market, water purifying chemicals are available in liquid, powder and tablet form. These products are so popular for outdoor water purification where pure drinking water is unavailable.

You can start water purifying chemical production business with medium capital investment. Apart from the local market, you can sell this product from online market places too.

#50. Weedicide Production

Weedicide is one of the essential agrochemicals in any type of plantation and farming. The formulation process is simple. Additionally, you can initiate the business on a small scale basis also.

These are the top chemical business ideas you can consider in starting a successful profitable chemical industry based business venture. With a good marketing strategy and honest dedication effort, you are bound to get successful with these chemical business ideas.