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Best 21 Manufacturing Business Ideas Under 2 Lakh

Starting a manufacturing business can be a lucrative venture. With a budget of under 2 lakh rupees, aspiring entrepreneurs can explore various business ideas across different industries. Here are the most profitable manufacturing business ideas under 2 Lakh Rupees that you can consider starting with a modest investment

21 Manufacturing Business Ideas Under 2 Lakh Rupees

1. Candle Manufacturing

pic of a candle

Candle-making is a popular and profitable manufacturing business under 2 Lakh investment. It involves melting wax, adding fragrance and colour, and pouring the mixture into moulds to create candles of different shapes and sizes.

  • How to Start: Purchase basic equipment such as melting pots, moulds, wicks, and wax. Source high-quality raw materials and experiment with different candle varieties.
  • Costs: Equipment – Rs. 20,000, Raw Materials – Rs. 50,000, Packaging – Rs. 30,000.

2. Soap Manufacturing

Soap making is another low-cost manufacturing business under 2 Lakh Rupees that can be started from home. It involves mixing oils, lye, and fragrance to create various types of soap bars.

  • How to Start: Invest in soap-making equipment, including moulds, mixing bowls, and utensils. Source ingredients such as oils, lye, and essential oils for fragrance.
  • Costs: Equipment – Rs. 15,000, Raw Materials – Rs. 40,000, Packaging – Rs. 25,000.

3. Papad Making

Papad making is a traditional Indian snack business that can be started with low investment. You can produce a variety of papad flavours and target local markets or supply them to supermarkets and restaurants.

  • How to Start: Purchase papad-making machines, raw materials, and packaging materials. Ensure compliance with food safety regulations.
  • Costs: Equipment – Rs. 50,000, Raw Materials – Rs. 40,000, Packaging – Rs. 10,000.

4. Incense Stick (Agarbatti) Manufacturing

pic of agarbatti

Agarbatti manufacturing is a profitable business idea with high demand in both domestic and international markets. You can produce agarbattis in different fragrances and packaging sizes. It involves blending aromatic ingredients with charcoal and bamboo sticks to create incense sticks.

  • How to Start: Invest in agarbatti-making machines, raw materials such as charcoal, aromatic powders, bamboo sticks, and packaging materials.
  • Costs: Equipment – Rs. 60,000, Raw Materials – Rs. 40,000, Packaging – Rs. 20,000.

5. Paper Plate and Cup Making Business

Overview: With the growing demand for eco-friendly disposable products, paper plates and cup making is a lucrative Manufacturing business under 2 Lakh. It involves using paper pulp to manufacture plates, cups, and other disposable items.

  • How to Start: Invest in paper plate and cup-making machines, raw materials such as paper pulp and chemicals, and packaging materials.
  • Costs: Equipment – Rs. 70,000, Raw Materials – Rs. 50,000, Packaging – Rs. 20,000.

6. Masala Powder Manufacturing

Masala powders like turmeric, chilli, and coriander are essential ingredients in Indian cuisine. You can start a spice powder manufacturing unit under 2 Lakh with basic grinding and packaging equipment.

  • How to Start: Invest in spice grinding machines, raw spices, and packaging materials. Ensure proper hygiene and quality control.
  • Costs: Equipment – Rs. 50,000, Raw Materials – Rs. 60,000, Packaging – Rs. 10,000.

7. Hand Sanitiser Production

The demand for hand sanitisers has surged in recent times, especially after the COVID pandemic, creating opportunities for small-scale production. You can manufacture hand sanitisers using alcohol-based formulas and essential oils.

  • How to Start: Acquire the necessary licenses and permits. Set up a manufacturing facility with equipment for mixing, blending, and packaging. Source high-quality alcohol, glycerin, and other ingredients. Ensure compliance with safety and quality standards.
  • Costs: Equipment – Rs. 100,000, Raw Materials – Rs. 50,000, Packaging – Rs. 30,000.

Read: Hand Sanitizer Brands in India

8. Detergent Powder Manufacturing

pic of detergent powder

Detergent powder manufacturing involves the production of cleaning agents used for laundry and household cleaning purposes. It is a profitable business due to the consistent demand for detergent products.

  • How to Start: Obtain necessary licenses and permits. Set up a manufacturing unit with mixing and packaging machinery. Source raw materials such as surfactants, builders, and fragrances. Adhere to quality control standards.
  • Costs: Equipment – Rs. 150,000, Raw Materials – Rs. 80,000, Packaging – Rs. 40,000.

9. Bakery Products

Bakery products manufacturing involves producing a variety of baked goods such as bread, cakes, pastries, and cookies. It’s a popular manufacturing business idea under 2 Lakh with a broad customer base and potential for growth.

  • How to Start: Develop unique recipes and formulations. Set up a production facility with baking equipment. Source quality ingredients like flour, sugar, and yeast. Establish distribution channels to reach customers.
  • Costs: Equipment – Rs. 200,000, Raw Materials – Rs. 100,000, Packaging – Rs. 50,000.

10. Coconut Oil Production

Coconut oil manufacturing is a traditional business idea with immense potential in India. It involves extracting oil from coconut kernels through mechanical or chemical methods and packaging it for sale.

  • How to Start: Purchase coconut oil extraction machines, raw coconuts, and packaging materials. Ensure compliance with quality standards.
  • Costs: Equipment – Rs. 70,000, Raw Materials – Rs. 50,000, Packaging – Rs. 20,000.

11. Pickles Manufacturing

Pickle manufacturing involves the preparation and packaging of various pickled vegetables and fruits. It’s a traditional Indian business with significant demand in domestic and international markets.

  • How to Start: Obtain necessary licenses and approvals. Set up a processing unit with equipment for washing, cutting, and packaging. Source fresh produce and quality spices. Ensure proper hygiene and sanitation practices.
  • Costs: Equipment – Rs. 80,000, Raw Materials – Rs. 50,000, Packaging – Rs. 30,000.

12. Noodle Making

Noodle making is a popular business idea in India with a high demand for instant noodles. It involves mixing flour, water, and other ingredients to make dough, which is then processed into noodles through extrusion and drying.

  • How to Start: Purchase noodle-making machines, raw materials such as wheat flour, water, and seasonings, and packaging materials.
  • Costs: Equipment – Rs. 80,000, Raw Materials – Rs. 40,000, Packaging – Rs. 20,000.

13. Herbal Hair Oil Production

Herbal hair oil manufacturing involves the formulation and production of hair oils enriched with natural herbs and ingredients. It caters to the growing demand for organic and chemical-free hair care products.

  • How to Start: Develop unique formulations using herbal extracts and oils. Set up a manufacturing facility with mixing and bottling equipment. Source high-quality herbs and carrier oils. Conduct quality testing to ensure efficacy.
  • Costs: Equipment – Rs. 120,000, Raw Materials – Rs. 60,000, Packaging – Rs. 40,000.

14. Jute Bag Manufacturing

Jute bag manufacturing is an eco-friendly business idea that aligns with the growing demand for sustainable packaging solutions. It involves weaving jute fibres into bags of various sizes and designs.

  • How to Start: Purchase jute bag-making machinery, raw jute fibres, dyes, and packaging materials.
  • Costs: Equipment – Rs. 80,000, Raw Materials – Rs. 50,000, Packaging – Rs. 20,000.

15. Poultry Feed Production

Poultry feed manufacturing involves the production of nutritious feed pellets or mash for poultry birds like chickens and ducks. It’s a vital component of the poultry farming industry.

  • How to Start: Obtain necessary licenses and permits. Set up a feed mill with grinding and mixing equipment. Source quality ingredients like grains, protein supplements, and vitamins. Ensure proper formulation and nutritional balance.
  • Costs: Equipment – Rs. 180,000, Raw Materials – Rs. 100,000, Packaging – Rs. 50,000.

17. Pickle Manufacturing

Pickle making is a traditional Indian business idea that requires minimal investment. It involves preparing pickles from fruits and vegetables, along with spices and preservatives, and packaging them for sale.

  • How to Start: Acquire pickle-making equipment, raw materials, and packaging materials. Ensure compliance with food safety standards.
  • Costs: Equipment – Rs. 50,000, Raw Materials – Rs. 40,000, Packaging – Rs. 10,000.

18. Honey Processing and Packaging

Honey processing and packaging is a profitable business idea that capitalizes on the growing demand for pure and organic honey. It involves filtering, pasteurizing, and packaging honey in jars or bottles for retail sale.

  • How to Start: Invest in honey processing equipment, raw honey from beekeepers, and packaging materials. Ensure hygiene and quality standards.
  • Costs: Equipment – Rs. 80,000, Raw Materials – Rs. 50,000, Packaging – Rs. 20,000.

19. Mosquito Coil Manufacturing

Mosquito coil manufacturing is a lucrative business idea, given the high demand for mosquito-repellent products. It involves mixing ingredients like powdered wood, resins, and insecticides to create coils that repel mosquitoes when burned.

  • How to Start: Purchase mosquito coil-making machines, raw materials, and packaging materials. Ensure compliance with safety standards.
  • Costs: Equipment – Rs. 60,000, Raw Materials – Rs. 50,000, Packaging – Rs. 20,000.

20. Disposable Plastic Products Manufacturing

Disposable plastic products manufacturing is a versatile business idea with diverse product offerings like cups, plates, and containers. It involves moulding plastic granules into desired shapes using injection or blow moulding techniques.

  • How to Start: Purchase plastic moulding machines, raw materials such as plastic granules, and packaging materials. Adhere to safety and environmental regulations.
  • Costs: Equipment – Rs. 80,000, Raw Materials – Rs. 60,000, Packaging – Rs. 20,000.

21. Vermicompost Production

Vermicompost production is a sustainable business idea that involves converting organic waste into nutrient-rich compost using earthworms. It caters to the growing demand for organic fertilizers in agriculture.

  • How to Start: Invest in composting equipment, raw organic materials such as food waste, agricultural residue, and microbial cultures, and packaging materials.
  • Costs: Equipment – Rs. 70,000, Raw Materials – Rs. 50,000, Packaging – Rs. 20,000.

Please note that these are approximate estimates and actual investment may vary depending on factors such as scale of operation, location, and sourcing of materials and equipment.

Frequently Asked Questions

Is it possible to start a manufacturing business with a limited budget?

Yes, it is possible to start certain manufacturing businesses with a budget of Rs. 2 lakh or less. These businesses often involve low-cost equipment and raw materials, making them accessible to entrepreneurs with limited capital.

What are the key factors to consider before starting a manufacturing business with Rs. 2 lakh?

Before starting a manufacturing business with a budget constraint, it’s essential to research the market demand, assess competition, and evaluate the feasibility of the business idea. Additionally, entrepreneurs should prioritize cost-effective production processes and efficient resource utilization.

Are there government schemes or subsidies available for small-scale manufacturing businesses?

Yes, the government of India offers various schemes and subsidies to support small-scale manufacturing enterprises. Entrepreneurs can explore schemes such as the Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE), and various state-specific incentives aimed at promoting entrepreneurship and industrial growth.

Can I start a manufacturing business from home with Rs. 2 lakh?

Yes, some manufacturing businesses can be initiated from home with a budget of Rs. 2 lakh. However, it’s crucial to ensure compliance with local regulations and zoning laws regarding home-based businesses. Additionally, entrepreneurs should consider space constraints and equipment requirements when operating from home.

What are the risks associated with starting a manufacturing business under Rs. 2 lakh?

Like any business venture, starting a manufacturing business under Rs. 2 lakh comes with certain risks. These may include market fluctuations, raw material price variations, quality control issues, and competition. Entrepreneurs should conduct thorough market research and develop effective risk mitigation strategies.

About Next What Business Research Team

The Editorial Staffs at NextWhatBusiness is a team of Business Consultants with years of experience in small and medium-scale manufacturing and service-based businesses.