Best 35 Medium Scale Manufacturing Business Ideas in 2025

Do you want to start a medium-scale manufacturing business? Normally, when becoming successful and earning more revenue, small businesses tend to upgrade their venture to a medium scale. However, if you have sizeable money to invest and a more risk-taking ability, starting a business on a medium scale is a good decision. In this article, our industry experts have listed the top medium-scale manufacturing business ideas that are new and innovative for your reference.

What is a Medium Scale Business?

Medium-scale businesses can be categorized as entities whose turnover is neither small nor large. For example, in India, the government recognizes industries as medium-scale whose start-up investment is between Rs. 5 Cr. and Rs. 10 Cr.

Read: Best Manufacturing Business Ideas Under 2 Lakh

Medium-scale product manufacturers can generate new value, minimize costs, and increase operational stability by focusing on and prioritizing four broad areas: production, product design, value recovery, and supply-chain management.

List of 35 Medium-Scale Manufacturing Business Ideas

1. Food Processing Unit

Food processing is one of the rapidly growing industries in India. From packaged snacks to frozen foods and beverages, this sector caters to the ever-increasing demand for convenient and ready-to-eat food products.

Why It Is Profitable

• Growing urbanization and busy lifestyles.
• Increasing demand for quality and hygienic food products.
• Export opportunities for Indian processed foods.

Investment

• Initial Investment: ₹20-50 lakh.
• Recurring Costs: Raw materials, labour, utilities, and marketing.

How  to Start

• Identify the niche (e.g., snacks, organic products, beverages).
• Get FSSAI certification and other licenses that may be needed.
• Invest in machinery and equipment.
• Set up a robust supply chain for raw materials as well as distribution.

2. Garment Manufacturing Unit

Garment manufacturing is a highly viable medium-scale business idea in India, given the strong textile industries of the country. From ethnic wear to Western outfits, this industry caters to both domestic and international markets.

Why It Is Profitable

Higher demand for various clothing styles.

• India provides access to a skilled labour force.
• Export and e-commerce sales potential

Investment 

• Initial investment-₹25-60 lakh
• Recurring costs of materials, labour wages, and utility bills

How to Start

• Select Niche like casual wear, formal wear, kids’ wear
• Acquiring machinery like sewing machines, cutting tools, and embroidery machines.
• Recruitment of Skilled tailors and workers.
• Distribution channels with retailers or opening up an online portal

3. Pharmaceutical Manufacturing

India is among the biggest producers of generic medicines. Therefore, pharmaceutical manufacturing forms a very lucrative business. The industry comprises medicines, syrups, and health supplements.

Why It Is Profitable

• Growing demand for medicine.
• Government facilitation for the pharmaceutical company.
• Opportunities to export to developed and developing countries.

Investment

Initial investment: ₹50 lakh – ₹1 crore.
Sustained expenses: Raw materials, registrations, and marketing.

How to Start

• Obtain licenses from the Drug Control Department.
• Establish a manufacturing plant with recent equipment.
• Partner with healthcare institutions and distributors.
• Maintain strict quality control standards.

4. Restaurant Chain

While opening a single restaurant is a small-scale idea, expanding into a chain makes it a medium-scale business. This requires consistent quality, branding, and marketing efforts.

Why It Is Profitable

• The growing trend of dining out.
• Opportunities for franchising and catering.
• Scalability to other cities and regions.

Investment

• Initial Investment: ₹1-2 Cr.
• Recurring Costs: Ingredients, salaries, marketing, and utilities.

How to Start

• Develop a unique menu and concept.
• Invest in branding and interior design.
• Recruit skilled chefs and staff.
• Distribute through high footfall outlets or tie-ups with online delivery apps.

5. Automobile Spare Parts Manufacturing

The automobile industry in India is enormous, and the demand for spare parts such as tyres, batteries, and engine parts is on the rise. Producing these products would serve as a lucrative medium-scale enterprise.

Why it Is Profitable

• More and more vehicles are on Indian roads.
• Aftermarket high-quality parts demand.
• Car Manufacturing Companies Partnership Opportunities

Investment

• Initial Investment: ₹40 lakhs to ₹1 crore.
• Recurrence Costs: Raw material, maintenance, and salaries.

How to Start

• Opt for a particular type of spare parts to manufacture.
• Invest in machinery and hire skilled labour.
• Obtain necessary industry standards and certifications.
• Deal and tie-up with the dealerships and workshop owners.

6. Printing and Packaging Business

The printing and packaging business is experiencing a boom due to the emergence of e-commerce, retail, and food delivery industries.

Why It Is Profitable

• Evergreen demand across industries.
• High-margin custom packaging solutions.
• Potential for bulk order business.

Investment

• Initial Investment: ₹25-50 lakh.
• Recurring Costs: Paper and ink, labour, electricity, and other raw materials.

How to Start

• Buy high-end printing and packaging machinery
• Provide offset printing, digital printing, and more
• Establish business through B2B marketing
• Offer on-time delivery for long-term contracts

7. IT and Software Solutions

The IT sector in India is of international repute, and it is very lucrative to initiate a mid-sized IT company. Services may include custom software development, IT consulting, and cloud solutions.

Why It Is Profitable

• High demand for digital transformation services.
• Chance to provide services to global clients
• Recurring revenue due to subscription-based services.

Investment

Initial Investment: ₹50 lakh – ₹1 crore.
Recurring Costs include salary, software license expenses, etc.

How to Start

• Find out your target market (healthcare, education, finance, etc.).
• Hire professional developers and IT professionals.
• Build a portfolio and market your services around the world
• Take the help of the government schemes meant for the IT startup.

8. Grocery Supermarket

Grocery supermarkets operating in residential areas can give continuous income. It is one of the most authentic business models due to its wide range of daily essentials.

Why It Is Profitable

• Continuous demand for grocery
• Easy integration with online delivery companies.
• Provides a chance to gain more profit by purchasing goods in bulk

Investment

• Initial investment: ₹20-40 lakh.
• Recurring Costs: Inventory, employee salaries, utility bills.

How to Start

• Acquire a large space with a high visibility rate.
• Provide a variety of products, including fresh fruits and vegetables.
• Install a POS system for billing and inventory purposes
• Provide home delivery so customers can sit back and relax.

9. Tour and Travel Agency

India is a global hotspot destination. A tour and travel agency would be able to provide domestic and international tourists with customized travel deals.

Why It Is Profitable

• High demand for bespoke travel experience.
• Corporate travel opportunities from repeat clients
• Income through hotel and airline commissions

Investment

• Start-up Investment: ₹ 15 lakh to ₹ 30 lakh
• Periodic Costs: Office rent, marketing and employees’ wages

How to Start

• Travel Package portfolio ranging from budget-conscious to luxurious and sophisticated
• Hoteliers, Airlines, and Car Rental Companies tie-up
• Easy, user-friendly website or mobile app for booking
• Social media marketing to attract clients

10. Renewable Energy Solutions

With the greater concern for renewable energy, providing eco-friendly energy solutions such as solar panels, wind turbines, or biofuel is a future medium-scale venture.

Why It Is Profitable

Government incentives and schemes for renewable energy.
Growing demand for green energy sources.
Urban and rural market opportunities.

Investment

• Initial Investment: ₹50 lakh – ₹1 crore.
• Recurring Expenses: Maintenance and labour.

How to Start

• Determine the best-relevant renewable energy product for your area.
• Get requisite licenses and certifications.
• Partner with builders and installers.
• Market your offerings to home and corporate customers.

More Low Investment Medium Scale Manufacturing Business Ideas

11. Agarbatti Making

First, you can produce incense sticks or Agarbatti with a different recipe. Different types of ingredients have different emotional and medicinal attributes. Create an innovative recipe and start commercial manufacturing.

12. Aluminium Door Window Manufacturing Fabrication

Aluminium door window manufacturing fabrication with different types of frames and fittings is one of the most profitable and innovative manufacturing business ideas. The use of aluminium in business and office complexes, buildings, theatres, and auditoriums is very extensive for functional and decorative purposes.

13. Bakery

The demand for bakery products is growing all across the globe. In today’s complex and competitive food industry, growth comes through innovation. However, you must select the right product for the niche audience.

Additionally, you have to have a proper marketing strategy. Because these are the major deciding factors in getting success in the bakery business.

14. Banana Wafer Making

Banana wafers are under-ripe bananas. First of all, cut them into slices and dip them in syrup solution. Then, dry under the sun or in the oven, fry, and eat as snack food or dessert. Additionally, you can sell banana wafers both in the domestic and export markets.

15. Hand Sanitiser Production

Hand sanitiser comes under the essential commodity segment. Currently, the product has a huge demand in both domestic and international markets. The manufacturing process is simple. And you can start hand sanitiser production on a medium-scale basis. However, the business demands specific permission and licensing from the Government authority.

Also Read: Best Hand Sanitizers

16. Ceramic Glazed Tiles Production

Ceramic Glazed tiles are made of a porous body with a coating of white or coloured Glaze. These are essential items in the Bathrooms, kitchens in modern buildings, Hospitals, Analytical Laboratories, and Toiletries attached to Railway platforms.

This is because these products have properties like good resistance to weather and chemicals, high strength, hard, glossy surfaces with different colours, and a pleasing appearance.

17. Energy Drink

An energy drink is a type of beverage containing stimulant drugs, chiefly caffeine. Basically, it is marketed as providing mental and physical stimulation. Energy drinks have the effects caffeine and sugar provide, but there is little or no evidence that the wide variety of other ingredients has any effect.

Most of the effects of energy drinks on cognitive performance, such as increased attention and reaction speed, are primarily due to the presence of caffeine. Globally, energy drinks are typically attractive to young people. Approximately 66 per cent of consumers are between the ages of 13 and 35 years, with males being approximately 65 per cent of the market

18. Fitness Equipment Manufacturing

Fitness equipment helps the consumer in weight management, overall physical fitness, and enhancing physical stamina and muscle strength of the body. Some of the major fitness equipment products include treadmills, stair climbers, stationary bikes, rowing machines, weight-lifting machines, elliptical cross-trainers, and traditional weightlifting equipment such as free weights and benches.

19. Grapes Wine Production

Wine is fermented grape juice. You can produce wine from grapes, fruits, berries, etc. Though, you can produce most wines from grapes. Red wine results when the crushed grape skin pulp and seeds of purple or red varieties are allowed to remain with the juice during fermentation periods.

Pink/rose wine can be produced by removing the non-juice pieces from the must during fermentation. However, you can produce white wines from pigmented grapes by the removal of skins, pulp, and seeds before juice fermentation.

20. Ice Cream Making

India’s current ice cream market is worth Rs 3,000 crore, including the unorganized sector. Typically, ice cream is a seasonal product, with demand peaking during the summer months. Nowadays consumers are enjoying ice cream with innovative frozen variants, even in the cold months.

21. Jute Bag Making

Though the jute bags market is still at a nascent stage, Indian entrepreneurs see a huge opportunity for themselves as they do not see major competition from any other country.

As per the latest data, the jute acreage was about 1.9 lakh hectares in seven states of India, including West Bengal and Bihar. Jute is an essential item in the manufacturing of sacks and other packaging goods. Exporters dealing in jute bags are getting a good response from the international market.

22. Kid Garments Manufacturing

Kid garments manufacturing is promising and profitable in the Indian clothing and garment industry. For emerging economies like India, the large consumer base is the major attraction despite their lower household disposable income.

23. Leather Product Manufacturing

The leather industry occupies a place of prominence in the Indian economy given its massive potential for employment, growth, and exports. There has been an increasing emphasis on its planned development, aimed at the optimum utilization of available raw materials for maximizing the returns, particularly from exports.

24. LED Light Manufacturing

LED lamps have a lifespan and electrical efficiency which are several times longer than incandescent lamps, and significantly more efficient than most fluorescent lamps, with some chips able to emit more than 100 lumens per watt. Industry experts expect growth in the LED lamp market more than twelvefold over the next decade.

25. Paper Bag Making

A paper bag or paper sack is a preformed container made of paper, usually with an opening at one end. It can be one layer of paper or multiple layers of paper and other flexible materials. Paper bags are essential items for packaging and/or carrying goods.

26. Plastic Product Manufacturing

Basically, polymer is an essential item in manufacturing various plastic products. In the consumption of the basic petrochemical, polymers form the bulk of demand with a share of around 55% in India. The domestic plastic segment has been deregulated and de-licensed by the Government of India.

27. Rubber Stamp Manufacturing

The rubber stamp-making business, revenue-wise, has very good income potential. You can with comparatively small startup capital investment. The manufacturing process is simple. Several different types of rubber and polymer stamps are becoming popular nowadays.

28. Talcum Powder Production

People use talcum powder as a moisture absorber which is ideal for people with oily skin. It helps to absorb moisture and soothe irritation caused by diapers.

In addition, it helps to prevent rashes and chafing. Some of the fragrances include sandalwood, amber, oakmoss, lily, and rose. Talcum powder production is one of the most innovative manufacturing business ideas in the chemical industry.

29. Textile Printing

Textile printing is the process of applying colour to the fabric in definite patterns or designs. In properly printed fabrics the colour bonds with the fibre to resist washing and friction. Textile printing is related to dyeing.

30. Woodworking

Woodworking is one of the most innovative manufacturing business ideas nowadays. You can put a lot of creativity into making innovative wood products. Woodworking and wood carving are the early-age industry in India. Woodworking is one of the fastest-growing industries in the economy. Technology up-gradation and capacity expansion are strong focus areas today for the woodworking units in India.

31. Candle Manufacturing

Candles are still a popular household item in most countries in the world. Nowadays, there are various types of candles that are in good demand. Some of the popular ones are paraffin wax candles, soy wax candles, and liquid wax candles. Making candles can be a lucrative medium-scale business by investing little money.

32. Cashew Nut Processing

Another profitable medium-scale business in the food processing industry at present is cashew processing. If you have a good know-how of cashew sources, consider starting this business.

33. Chocolate Making

Though the chocolate and candy industry is competitive, still there is a wide scope for new entrants. With proper planning, the chocolate-making business can fetch high returns.

34. Cotton Buds Manufacturing

The demand for cotton buds exists around the year. One can start a medium-scale cotton bud manufacturing business with low investment. Furthermore, the profit margin is also high for this item.

35. Cricket Bat Manufacturing

The game of Cricket is now played in many countries. As a result, the demand for good-quality cricket bats is also growing. If you have the expertise or knowledge of how it is made, manufacturing cricket bats can be a hugely profit-making medium-scale manufacturing business.

Many more medium-scale business ideas can be started with a low investment which can be a profitable venture depending on the demand and trends of the local population. We hope this list will inspire you to start a medium-scale business that can fetch good returns.