Are you searching for small manufacturing business ideas that cost little to start? Throughout the world, small-scale manufacturing is considered a profitable business for startup entrepreneurs. Some of the most lucrative industries are light engineering, paper, food processing, rubber, leather, chemical, and agrochemical industry. Small-scale industries play a significant role in the GDP of any country.
Here, we list down 100 low-cost small business manufacturing ideas that you can initiate as a micro, small, and medium scale basis.
List of 100 Profitable Small Manufacturing Business Ideas You Can Start with Low Capital
Agarbatti is a household good having great market potential. The burning of Agarbatti or incense in religious and social functions is a common practice in India since early times. Basically, Agarbatti is an aromatic powder or paste. People burn this as a fragrant fumigant. In addition, it has insecticidal and antiseptic properties.
The aluminum door window manufacturing business is one of the profitable small business manufacturing opportunities in the light engineering industry sector. You can start this business with small startup capital.
The bakery is one of the most profitable food processing business opportunities one can initiate by having owned or rented space. Selecting the right product and proper marketing strategy are the major deciding factor in getting success in the bakery business.
According to the demand and financial aspect you will need to choose the specific products for your bakery business.
Banana wafers are under-ripe bananas that are cut into slice dipped in syrup solution, dried under the sun or in the oven, fried and eaten as snack food or dessert. These can be sold both in the local and export markets. You can initiate this business on a small-scale basis.
5. Bindi Making
Bindi making is a simple process with good marketing avenues and profitability. The women population has replaced traditional kumkum with the decorative designer bindi. Bindi is a small piece of velvet cloth with a suitable adhesive. It is available in different colors, sizes, and pictures.
Bindi making business can be initiated as a home-based with comparatively low startup capital. Bindi is a consumable product and requires both rural and urban women.
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.
Any individual can start biscuit making business on a small-scale basis. Biscuit making is a conventional activity and an entrepreneur can initiate this business with low startup capital also.
Despite the advent of modern, large capacity and automatic biscuit making plants, the large section of people still prefers fresh biscuits from the local bakery as they are cheap and offer many varieties.
Blouse hook is an essential item for the garment and clothing industry. It used generally in women’s wear such as blouses, churidars, tops, kameezes, frocks, etc. Any individual with low startup capital investment can start this venture to earn handsome money.
Apart from the wholesaler and retailer every garment manufacturing company, tailor, alteration service houses are the buyer of this product.
Bread provides fiber and carbohydrates in a convenient, low-fat form that is portable and delicious. Good bread never goes out of style. The bread production industry has several diversified opportunities.
Fresh quality bread is always in demand for both urban and suburban areas. The bread production process is also not complex.
10. Candle Making
Candle making business can be initiated on a small-scale and part-time basis. People lighten candles not only for religious purposes but also as a decor item. Apart from the traditional long white candle, the demand for scented and decorative candles are also growing.
11. Carton Crates Manufacturing
Cartons are widely used for bulk packaging. Crates are specialty packaging boxes generally used in custom and export-oriented material. This is considered as one of the most profitable small business manufacturing ideas in B2B business.
The manufacturing activities that are involved in cashew processing are cell cooking, cutting, cashew kernel drying, peeling, grading and packing. You can also start cashew nut processing as a small export-oriented plant.
13. Chalk Making
In developing countries still, chalk is used for writing on blackboards in schools. Apart from schools, educations, and training institutes, chalks are used by tailors, furniture makers, construction workers, and many industries. Chalks are actually round shaped sticks and it comes either as white or in colors.
14. Cheesecake Making
Ingredients required for cheesecakes production are cheese, sugar, strawberries, wheat flour, egg, maize, vegetable oil, starch, salt, preservative, color, and essence. Cheesecake is also very versatile. It works well with a wide variety of flavors ranging from lemon and chocolate to pumpkin. Cheesecake making business can be started on a small-scale basis.
15. Chocolate Making
The production process of chocolate may vary according to the different quality of chocolate. Also according to the availability of raw material you can decide the taste and ingredients for chocolate production. Chocolate making is one of the most profitable food processing business and many reputed chocolate brands cater presently in the country.
16. Coconut Milk Powder Production
Coconut milk powder has a good market potential not only in India but also in various other countries. In addition, coconut milk powder has several advantages. These are long shelf life, fewer storage places requirement and lower cost of bulk packing. Coconut milk powder is one of the most trending small business manufacturing ideas for new entrepreneurs.
Coconut oil is used as an important cooking medium. Apart from this coconut oil has various industrial applications. It is used in the manufacture of toilet soaps, laundry soaps, surface active agents and detergents, hair tonics, hair oils, cosmetics, etc.
The location is one of the most important factors in starting coconut oil manufacturing. It should be nearby the area where raw materials can be procured easily.
18. Concrete Block Manufacturing
Concrete blocks, tiles are precast solid cement concrete products. These are widely used for flooring, in pavement, wall, garden path, etc. With simple machinery and locally available raw material, you can start this manufacturing business.
19. Condensed Milk Production
Sweeten condensed milk has a good market opportunity both in the domestic and export sectors. The only main raw material is good quality milk. condensed milk production is one of the most profitable food processing business any individual can initiate with substantial capital investment.
A rubber conveyor belt is an essential item for every continuous production process units. The demand for rubber conveyor beltings has been steadily increasing with the rapid industrialization in the Country. These belts are commonly used for industrial purposes in thermal plants, fertilizer plants, railways, chemical plants, etc. Rubber conveyor belt manufacturing is one of the most profitable rubber business ideas.
Cotton buds or cotton swabs making business can be initiated on a small scale basis. Cotton buds are short spindles with one or both ends coated with an absorbent cotton padding. Such buds have long been used for various cosmetic and personal hygiene tasks, particularly for cleaning the ear. Cotton bud’s design has advanced significantly.
22. Custard Powder Production
In starting custard powder production, the required raw materials are corn flour, arrowroot starch, food colors, and essence. The easy availability of raw materials made this business lucrative and profitable. A small scale unit can also be established with some simple machinery. Custard powder is one of the popular food considered in the desert.
23. Dalia Production
The increasing demand for nutritional and ready to eat food has increased the market potential of Dalia. The production process is simple and it requires simple machinery. Dalia production does not imply major licensing issues.
24. Dal Milling
Dal milling is actually processing of different pulses. According to the availability of raw material, you can select different various products.
Related: Profitable Milling Business Ideas
Designer lace making business can be initiated as the home-based with comparatively low startup capital. Lace is a craft material that used in textile or garment designing. In early days lace actually crafted by needles by hand.
Nowadays handmade lace-making is replaced by machine-made lace making. Now several machines are available to make lace through machines. The increasing demand for fashion garments has increased the demand for designer lace.
Designer sarees are very popular among the female population in our country. Having the proper idea about the current style and trend any individual can initiate this business as a small-scale unit.
The manufacturing process of detergent powder is simple and only involves the mixing process with the right formula. You can start the manufacturing unit on a small scale with small capital investment.
28. Drinking Straw Making
Drinking straw making business is considered a micro-manufacturing opportunity. With small capital investment, the manufacturing unit can be established.
29. Diary Making
Diary making business is seasonal and can be operated on a part-time basis. The main important aspect of diary making is the diary cover. According to the desired cover, you will need to select the machinery. By installing simple machinery, you can produce diary covers. The internal part of the diary can be outsourced or you can produce of your own.
30. Energy Drink Production
Energy drink is a very popular option nowadays to relief from stress. In addition, energy drink production is one of the most profitable and trending small business manufacturing ideas. Initiating an energy drink manufacturing business is cost-intensive and requires a strong product promotion strategy.
31. Envelope Making
Paper envelopes are daily necessity items for the household, educational organizations, and offices. The demand is huge and it is ever increasing. By establishing either a manual or automatic machine, you can initiate this business as small-scale also.
32. Eraser Making
Rubber erasers generally made from natural rubber. Generally, a large section of people uses this product. The list includes students, artists, bookkeepers, typists, and others to correct the mistakes. Eraser making project is profitable and there is demand in the domestic and export market both.
The exercise book manufacturing process is simple and any individual can initiate this business with comparatively low startup capital. The demand for exercise books as an office and school stationery item is increasing. According to the demand, several different types of machinery are also available.
34. File Manufacturing
Files are considered as an essential educational and office stationery item. Generally, it comes with two main different types. Such as a flat-file with no strap and cover file with strap. With simple machinery, any individual can initiate file manufacturing business as a small-scale unit.
35. Flour Production
Flour is produced by milling food grains. different varieties of types of flour are used to prepare different foods. These are Wheat flour, brown flour, whole wheat flour, wholemeal flour, etc. The production process is simple. This business can be initiated on a small-scale basis with simple machinery.
If you have some basic experience in garment related activity, starting a garment manufacturing business is a profitable business to start on a small scale. However, keep in find the market is competitive and selecting the right product segment is critical in making a successful garment manufacturing business.
37. Fruit Bar Making
Mango, pineapple fruit bars are very popular. The unit should be initiated according to the availability of raw materials. The fruit bar making process is simple. By installing a simple machinery small-scale unit can be initiated from home also.
Fruit juice is one of the ready to serve items. Another popular product is squash. These are very popular throughout the year, especially in summer. Fruit juice production business can be initiated on a small-scale basis. The product should be selected according to the availability of raw materials.
39. Gem Clip Making
Gem clip or paper clip is an essential item as education and office stationery. The gem clip making process is simple. Gem clip making business can be operated as a part-time or full-time basis.
Ginger and Garlic Paste is mainly used as a condiment in various food preparation and also serves as a carminative and gastric stimulant in many medicinal preparations. As instant mixes and spices are becoming more popular the demand for ginger garlic paste is also increasing.
The production process is simple and the product has an immense market opportunity for export also.
41. Ginger Oil Production
The main application of ginger oil is confectionery beverages and baked products. India is the largest producer of ginger. Ginger oil production is one of the most profitable small business manufacturing ideas. In addition, you can start the business as small and medium scale basis.
Grape wine making is actually fermenting the grape juice. The major raw material required for the processing and making of grape wine is grapes. Grape wine making is capital intensive and it requires proper operational and marketing strategy.
Groundnut oil production in India is financially a profitable venture with huge export potential. Initiating a groundnut oil production business requires feasibility study preparation. In addition, it demands procurement and installation of machines in the appropriate accommodation, recruitment of personnel and commercial take-off.
44. Hair Band Making
Hairband making is one of the lucrative and profitable small business manufacturing ideas. In addition, you can start this business on a small scale basis. The hairbands are popular hair accessories for both girls and boys.
With the up gradation and change of fashion trend, different types of fashionable colourful hairband are now very popular.
45. Hand Made Paper Making
Handmade papermaking is a craft idea. The manufacturing process is simple. In addition, students can use this handmade paper for project work for the school and for different craft making.
Handmade paper can produce certain specialized varieties of paper, for example, watermark, filter paper, and drawing sheets, etc.
46. Hing Making
Hing is an important item in culinary preparations for flavoring purposes. Pure asafoetida is generally not preferred for use in view of the high concentration. Therefore, it comes in compounded form. Hing has a good market potential not only in the domestic market but also in the export market.
47. Honey Processing
Honey processing is actually removing wax and other foreign unwanted particles from honey. You can establish the processing unit in two ways. Either by the manual system or by electrically driven. The production process is simple and can be started on a small scale.
48. Hospital Rubber Goods Consumable
A hospital or diagnostic rubber consumable item manufacturing project is a profitable business. It is important to select the right product. Several different pipes, bags, gloves and many other rubbers make consumable hugely used in the hospital industry.
49. Ice Block Manufacturing
Generally, ice blocks are essential for transportation and preservation of fishes. However, you must establish the unit according to the local demand for ice blocks.
Ice cream cones with many varieties of flavors and forms. Generally, there is a demand for this product throughout the year. And it is increasing year after year. The most popular mode of serving is in cones as it is neat & clean, easy to store and there is no disposal need. With the continuous increase in the sale of ice-creams, demand for cones is increasing.
51. Ice Cream Making
Ice cream making is a profitable small business idea. Ice cream is a frozen blend of a sweetened cream mixture and air, with added flavorings. You can use a wide variety of ingredients to produce ice cream. However, you maintain the minimum amounts of milk fat, milk solids (protein + lactose + minerals), and air in ice cream making.
52. Invitation Card Making
Any individual can initiate an invitation card making business with some simple machinery. The process is very simple and profitability is lucrative in this business. The invitation card industry is booming and demand is increasing day-by-day.
Iodized salt is a white crystalline powder salt fortified by Iodine. Generally, the consumption of a sufficient amount of salt fortified with Iodine helps to avoid iodine deficiency. Iodized Salt consumption is directly related to population growth.
54. Jam Jelly Making
Jam jelly-making business is profitable. In addition, you can initiate the business on a small scale with low capital investment. With proper planning and strategy, even you can start the jam jelly-making business from your home.
55. Jute Bag Making
Jute is a natural product. It is an inexpensive and biodegradable fiber product. In starting jute bag making business, you will need to be careful about the selection of the location. The main raw material is easily available throughout the country.
56. Latex Rubber Thread
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 making is one of the most profitable small business manufacturing ideas in the rubber industry.
57. Lathe Machine Unit
A lathe is a machine tool that turns the cylindrical material, touches a cutting tool to it, and cuts the material. The lathe is one of the most important tools for various several machines.
58. Leather Bag Making
Different types of leather bags are very popular among people. Laptop bag, handbag, wallet, ladies purse, folders are some of the top-selling products. The leather bag making process is simple and the main raw material is finished leather.
59. Lemonade Making
Lemonade is actually a lemon-flavored very popular soft drink.The principal raw materials required are sugar, citric acid, flavor & essence, food color, and sodium benzoate. However, lemonade-making is capital and management intensive business.
60. Liquid Soap Making
You can initiate a liquid soap production unit with very little capital. So many different types of liquid soaps are very popular among people. Such as hand wash, body soap, liquid detergent, face wash, etc.
61. Livestock Feed Production
Several livestock feed items having increasing demand these days. The list includes cattle feed, fish feed, and poultry feed. This is one of the most profitable small business manufacturing ideas you can develop with moderate capital investment.
62. Meat Processing
Meat processing technology comprises the steps and procedures in the manufacture of processed meat products. All processed meat products have been in one way or another physically and/or chemically treated. You must have the proper distribution and marketing strategy to make this business successful.
Microbreweries produce a small amount of craft beer than large-scale corporate breweries. In addition, microbreweries work independently. The market of microbreweries is immensely developing. Different licenses and permits are required in initiating microbrewery business.
64. Milling Business
Generally, milling business opportunities in India involve wide manufacturing operations. According to the product and raw material you can initiate different types of mill businesses as small and medium scale industries.
65. Mini Paper Mill
The mini paper mill is an excellent business and one of the most profitable paper business ideas one can initiate with substantial capital investment. In initiating a mini paper mill, you should be careful in selecting the location. Usually, the raw material for the paper mill in the forest goods. Therefore, you must select the location of the plant near the place where you procure raw materials easily.
Generally, people extensively use naphthalene balls as the household preservative of woolen clothes and as a 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 a good scope for growth.
67. Noodles Making
Generally, two types of noodles are popular. One is normal and the other is instant. The process is quite simple. In addition, it doesn’t require much-skilled labor. The boom in the foodservice sector including the fast-food chain has widened the demand potential for Noodles.
68. Nut Bolt Making
Nuts bolts making business comes under the light engineering product manufacturing. Basically, nuts and bolts are a type of industrial fasteners used in various products, machines, structures, etc. Nuts and bolts consist of a major link in the family of industrial fasteners.
Increasing awareness of health and scarcity of getting pure drinking water has made an immense market demand for packaged drinking water. Nowadays people prefer to have packaged drinking water not only outside but also in the house. In initiating a packaged drinking water business, it is important to check the PH balance of water where you want to establish the unit.
Packaging boxes are the item that is an essential item in the packaging system. Any product requires packaging before going to the market. The demand is huge and it is increasing. The manufacturing process is also simple. One can start the business with small capital investment.
71. Palm Oil Processing
The main raw material is palm fruits. Palm oil an important edible oil. Apart from that, there is a demand for commercial industrial use. Palm oil processing is profitable and capital intensive. All type palm oil processing units differ in the level of mechanization of each unit operation and the interconnecting materials transfer mechanisms.
72. Papad Making
Papad making is one of the most profitable small business manufacturing ideas considering the low startup capital investment. Papad is a thin wafer-like product. Generally, people serve papad either as fried or roasted.
73. Paper Bag Making
Paper bag making is one of the most profitable paper business ideas right now. The ban on plastic carry bags creates a huge opportunity for the paper bag industry. There is a huge market for all types of paper bags, shopping bags, paper gift bags, brown craft paper, and customized gift bags to shopping malls, franchises of companies, and personal showrooms among others.74. Paper Cup Making
Paper cup making business is one of the most lucrative small business manufacturing ideas in India. The paper cup is a disposable item. Generally, you can produce a paper cup with paper and often lined with plastic to prevent liquid leakage or soaking through the paper.
75. Pasta Making
The artificial drying process allows commercial pasta production at the industrial level. Therefore, it allows distribution and marketing. The drying process is the final main step of industrial pasta production, and it is fundamental to greatly prolong the shelf life of the product. The manufacturing process is not complex and the demand is increasing.
Phenyl and floor cleaners making are the 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 establishment that is possible with low startup capital investment.
77. Pickles Making
Pickles are the most popular item. Besides domestic market pickles have an export potential also. Pickle and chutney are the traditional food item in India. And there are several different types of pickles we can find in the country. The pickle making process is simple.
Any individual can start this business from his or her home location. However, you must select the product according to the availability of the raw materials.
78. Plastic Product Manufacturing
Nowadays, small plastic products are essential household items. Some of the popular items are plastic balls, mug, bulti, small container, drum, toys, etc. With simple plastic dye machinery, you can start the business.
Sliced, thin and fried potato chips are very popular ready-to-eat snacks items. Potato is one of the easily available vegetables also. In addition, the potato chips making process is simple. And it involves simple machinery.
80. Potato Powder Making
Potato powder is an important ingredient for a variety of food preparations like snack foods, soups, curries, and other dishes as a thickening agent. Potato powder manufacturing is a capital-intensive business project.
81. Rice Bran Oil Production
The Commerce Ministry recently allowed bulk exports of rice bran oil and removed quantitative restrictions on outbound shipments of organic edible oils. Rice bran oil is a premium edible oil. However, the oil receives limited consumption in India. Rice bran oil production is capital intensive. However, you will need to focus on export to get much better profitability.
82. Rice Mill
India is the second-largest producer of paddy in the world. Rice is the staple food of the majority population. The mini rice mill consists of a paddy cleaner, sheller, separator and a polisher. Mini rice mill is one of the most profitable food processing business.
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 very simple. In addition, any individual can initiate small startup capital.
A small-scale rubber floor mats manufacturing is a lucrative venture for entrepreneurs. The manufacturing process is not complex. Rubber floor mats include industrial rubber mats, anti-static mats, anti-vibration mats, anti-fatigue mats, high school wrestling mats, rubber mats for use at home, entrance mats, interior mats and so on.
85. Rubber Gaskets Making
Rubber gaskets making business is one of the most profitable rubber business ideas. Several different types of gaskets generally used by the automobile industry and also by large factories. By establishing a small scale manufacturing unit, any individual can initiate this business.
86. Rubber Stamp Making
Apart from the retail location, you can start a rubber stamp making business as home-based also. Polymer rubber stamp is now very popular for official use. You can start this business with very small startup capital. Apart from the normal rubber stamp pre-inked rubber stamp also has very good market demand.
87. Toys Making
Any individual can initiate toys making project with simple machinery and easily available raw materials. The production process is not complex and the product has very good demand.
Rubber footwear making from different colorful rubber sheet is a small scale profitable business. Even, you can initiate the business at home also. Generally, the slipper is a household consumable item. Additionally, almost every person uses this as casual wear. With the increasing population, the demand for rubber foot ware is also increasing day-by-day.
89. Soap Manufacturing
Different types of soap used widely by rural and urban people. Commercial soap making is one of the most profitable small business manufacturing ideas.
90. Soya chunks Processing
You can initiate soya chunks processing with low capital investment. The major raw materials are soybean meal and peanut meal. The soya chunks production process involves milling, mixing, extruding and cutting. This is one of the most profitable food processing business one can start with moderate capital investment.
91. Soy Sauce Production
The major raw materials, that needed for soy sauce production are soybeans, wheat, and salt. There are different types of manufacturing technologies are available to produce different types of soy sauce.
Spice grinding and packaging is one of the most profitable small business manufacturing ideas. In addition, you can start the business as a small, medium and large scale. Basically, the spice is an essential item and it works as a tastemaker.
Apart from individual spice powder like chilly, cumin, turmeric; special quality mixed spice powder processing is more profitable. Some of the most popular items are meat masala, curry powder, chat masala, etc.
The staple pin making process is simple. Additionally, you can initiate the business as a home-based small-scale basis. Generally, you can produce a staple pin from the white galvanized iron wire. Using good quality iron wire will assure the production of good quality and long lasted staple pins. It is advisable to enhance the product reputation in the market. However, you can start the business with a small budget and low infrastructure.
94. Sugar Candy Manufacturing
Basically, sugar candy is a hard-boiled sugar confectionery. There are so many popular flavors for sugar candy like orange, pineapple, mango, mint, strawberry, etc. Sugar candy manufacturing is one of the most popular food processing business ideas.
95. Sunflower Oil Processing
For sunflower oil processing, the main raw material is sunflower seed. Refined sunflower oil goes through the long way of purification which consists of the following stages: mechanical cleaning, hydration, neutralization, bleaching, freezing, deodorization, and nitriding.
Currently, the demand for household paper products is increasing highly. You can produce several items like tissue paper, facial tissues, paper towels with simple machinery. You can initiate the project by concentrating on one or two allied products.
As your business grows, you can make an addition. Household paper product making is one of the most profitable and trending paper business ideas nowadays.
97. Tomato Processing
Different types of processed tomato products are very popular. And the raw material (tomato) is available throughout the year. The most popular products are tomato sauce, puree, juice, ketchup, etc. In initiating tomato processing, you can also produce tomato pulp for other small-scale industries. The production process is not complex. Generally, this business demands simple machinery and equipment.
98. Tutti Frutti Making
Tutti frutti is a concentrated processed food product. You can produce tutti frutti commercially from raw papaya with attractive color, sugar, and preservative. Generally, different food processing industries are the major consumers of tutti frutti. Such as industries like cake, bakery bread, etc. The product has also a very good retail opportunity.
99. Vinegar Manufacturing
Vinegar contains 5% acetic acid. In addition, it is a good food preservative. Compliances under the FPO and PFA Act are mandatory for vinegar manufacturing. Commercial-scale vinegar manufacturing requires sound technical knowledge.
Woodworking business is a very good and profitable opportunity for those individuals who are really looking for a home-based manufacturing idea with small startup capital. You will find many technically upgraded machinery for woodworking. Select the right product according to the local market demand. However, you must focus on the right niche to get success in this business.