Starting a small manufacturing business is easy and profitable. You can start your own manufacturing unit and run it from home. Because the investment required for setting up a small manufacturing business is very low.  

The best part?

Manufacturing businesses offer high profits which makes them an excellent option to start a business at low capital or investment. Additionally, you can also think about renting machinery or equipment to start a small production business is also one of the options, while getting a machinery loan has also become a trending option these days in the market. 

Let’s now take a look at the seven best small-scale manufacturing business ideas that require low investment and offer high profits. 

Best Small Manufacturing Business Ideas with Low Investment and High Return in 2021 

Candle Making 

Candle-making supplies are one of the most popular small manufacturing business ideas. Candles are associated with several festivals as well as religions. 

Fancy candles with good fragrances have always been in demand. That means, starting a candle-making business is certainly a good idea. 

This business can be started in just Rs. 25,000 to Rs. 50,000 and require wax, perfume, molding, dye, and equipment to hold hot wax. 

In addition, you can start the business from your house, and there is no need for you to have a shop or rent an office. To get more about candle making you can enroll in candle making course. 

Manufacturing Soap & Detergent 

Soap and detergent products are essential FMCG products that are always in demand. So, the soap and detergent manufacturing business is also a good option with low investment and high profit. You can start small manufacturing business from home with low investment or with little money. 

You can manufacture different types of soaps and detergents and sell them in different markets. However, to start this business, you need to learn the process of making soap and detergent. 

You need to learn the correct mixing of the right ingredients and that too in proper proportion. For this, you can enroll yourself in soap-making courses. 

You can start this business even at your home with the capital of just Rs. 50,000. You can also take your business online by taking their business to the online marketplace. 

Manufacturing Paper 

The manufacturing paper business is a low-cost business with high profit. The paper market in India has good potential. From education to healthcare and retail to manufacturing, paper requires in every industry. 

This only indicates the demand and chances of getting success in the manufacturing business. The capital required to start this business is 1-2 lakhs. 

The material requirement includes papermaking equipment, chemicals, and raw material. You can start your business by renting a shop. 

You can hire workers or start a business all alone. Once your business starts making enough profit, you can also think of adding more such products, such as tissue papers, paper bags, paper plates, etc. 

Manufacturing Sports Items 

The other profitable small business idea is to start manufacturing sports and related items. You can make items such as a bat, ball, badminton racket, carom board, etc. 

Indoor, as well as outdoor sports, are very famous in our country and therefore, small manufacturing business idea has very good potential. 

You need capital of Rs. 2-5 lakhs. Once you start your business and you need help with working capital, you can avail a business loan from Ziploan up to Rs. 7.5 lakhs. With the loan amount, you can meet all the financial requirements of the business in a time-efficient manner.  

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To make the process of availing a business loan simpler, we have also launched loan apps which is not just user friendly but also from where the applicant can easily check their eligibility, fill the application form, upload the documents & submit the application, the business loan app also assists with various reminders of the dues, paying the EMIs, and its an amazing way of staying up to date with latest updates about the government schemes and regarding the MSME loan available in the market.  

Manufacturing Envelopes & Folder File 

You can also start the manufacturing envelope and folder file business. It is one of the best small scale manufacturing business ideas. The products so manufactured are very high in demand and are widely used in the post office, schools, banks, and in a corporate environment. 

The main idea here is to manufacture the products which are high in demand, and with envelopes and folder file demand high always, this business idea is undoubtedly the best one for you. 

You can either start a handmade file and folder business or machinery made. Depending on the same, capital requirements will also differ. Nevertheless, you are suggested to opt for the machine since the production is high and there is a lesser need for human resources. 

And with lesser human resources, you can save monthly incurring wages cost, whereas machinery is a one-time investment or option for a machinery loan is always an option, in the initial phase of setting up the business. 

The material required to start this business include ladles, basins, mixers, plastic bags, electric stoves, weighing scales, and hand-gloves. This is the best small factory ideas to make envelope and folder file. 

Homemade Biscuits 

Homemade biscuit making is an excellent home manufacturing business ideas if you are looking for a home-based manufacturing business idea. 

The business is very lucrative as the material required includes wheat flour, sugar, mixture, and grinder. The capital requirement for this business idea is Rs. 25,000 to Rs. 50,000. Also, you need to have a good knowledge of biscuit making. 

You can first start selling your products in the neighbourhood and nearby areas. As the business grows, you can start with a shop specially dedicated to the business. This is a small investment business but has a good profit. 

Hair Oil Production 

Hair oil production is also a low-cost business with high profits. And, the bonus point is, it can be started at home. The hair oil manufacturing unit has a good market potential as the product is a daily use item and is used in every household. 

The materials required include base oil, perfume, herbal extract, bottles, and a mixing machine. The business can be started with capital ranging from Rs. 25,000 to Rs. 50,000. Or you can say it is the best manufacturing business under 50,000.

Now that you know the seven best manufacturing business ideas in India that require low investment and yield high profits, you can start your own business. You can also register your business online to build a business network. 

Through the e-marketplace, you can create a business profile, list your products/services, find business, discover new business opportunities, and build connections. 

There is plenty of small business idea that you can pick to start your home based production business. For now, you can start with the above-mentioned businesses. 

And if you are already running a small manufacturing business and facing problems with working capital, you can avail of a small business loan from us, while also considering the working capital loan, while setting up the business. 

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We offer loans ranging from Rs. 1 lakh to 7.5 lakhs online at minimal documentation and essential eligibility criteria. Our business loan interest rates are very competitive in the market, and we disburse the loan amount in just three days*. 

Apply for Quick Business Loan

Homemade Pickles 

Homemade pickles have a huge demand as everyone likes homemade stuff especially when it comes to food.  It is the best manufacturing business for ladies who want to earn money from home. Or you can say the cheapest business to start.

Incense Sticks (Agarbatti) 

Agarbatti is a home based manufacturing business. India’s agarbatti has a huge demand overseas as well as in India. One can easily start agarbatti manufacturing business with low investment.  Small machinery for home business will require making incense sticks.

Buttons Making 

Button making is the best manufacturing business to start. You can start button manufacturing with little investment in your own space or a rented one. It is one of the best small scale business ideas that you can implement from home.

Designer Shoelaces 

People love designer laces when they buy costly shoes. It is a traditional form of business and can easily be started at home. 

Indian shoe industry is quite big and it makes shoelaces demand high in the market. Manufacturing shoelace is now a trending home based manufacturing business ideas in india that people are doing with small funds. 

Ice Cream Cones 

You can start ice cream cone manufacturing from a small space with little savings you have. It is low investment business that have a huge demand in summer and wedding seasons. It won’t be wrong to say that is is one of best manufacturing ideas for home based businesses.

Handmade Chocolates 

India is one top chocolate consumers in the world. If you want to start your own business then manufacturing chocolate can be the best decision you will make. 

Cotton Buds 

Cotton buds manufacturing business can be started with an investment of Rs.20,000to Rs.40,000. 

Homemade Papad 

Papad manufacturing is another small business that can be started with low investment. 


Noodles are a popular snack in India and also a great small business that anyone can from a small space with little money. 

Disposable Plates and Cups 

To make paper plates and cups you don’t need much investment. Disposal plate making machine is the only big investment you’ll have to make when planning to start disposal cup and plate. You can avail machinery loan to buy cup-plate making machine. 

Jute Bags 

Jute bag making is another great small business ideas that don’t need a big investment. 

Staple Pins 

Staple pins can help you make some serious money and also don’t need a big investment to start this small business. 

Organic Soap 

Organic soap is a narrow small business market but has a good potential to make money. It is one of the business ideas with low investment and high profit

Coconut Hair Oil 

This low-cost small business doesn’t need big investment and setup. You can start this business with just one lakh. This is one of the best production business ideas that will make you good money. 

Fertilizer Manufacturing 

India is a developing country that has over 50% of people who are still relying on farming. Fertilizer making can be a great business to start with. The best part it doesn’t need such a big investment. You can simply start making organic fertilizer on your own land or rented one. 

Toy Manufacturer

Covid 19 has locked lives inside doors but keeping little kids inside is the toughest task for parents. The only thing that keeps them busy is toys. Toys manufacturing can be started from a single room with little investment, yet profitable.

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This pandemic has increased the demand for toys because no parents want their little ones to go out. Soft toys have more demand and kids are the biggest market for this product. There is a good scope for these items in India. Brands have less impact on the soft toy market, if you making attractive toys you easily get good profits.

The toy industry in India is very lucrative. It offers different opportunities for entrepreneurs. Furthermore, a toy makes education enjoyable to the children. In addition, growing numbers of playschools have added fuel to the industry.

Smartphone Accessory Maker

Smartphone accessories aren’t costly and have a huge demand in the market. Everyone out there wants to personalize their iPhone/Smartphone with exclusive cell phone accessories like high-quality wireless earbuds, fast charging cables, floral phone case, tough phone storage box, mini projector, running armband to hold mobile, a compact selfie stick, etc.

One can easily start making smartphone accessories with low investment as 2.5 – 5 lakhs and earn huge profits in return. All you need some plan, space, and a little investment that you can get either from the bank or NBFCs. Ziploan provides MSME loans up to Rs. 7.5 lakhs to MSMEs.

Plastic Container Manufacturing

Making plastic containers isn’t hard with little investment and basic plans you can make water bottles and other containers that you can sell to consumers and online platforms like Amazon and Flipkart.

You can make a bird feeder, terrarium (this one is such a fun activity for kids), egg yolk sucker, piggy bank, watering containers, hanging basket, pencil case, etc.

Textile Production

You can also focus on producing raw fabric or other textile products to sell to individuals or businesses for use in manufacturing more finished products. The chemical textile manufacturing processes include sizing, desizing, scouring, bleaching, mercerization, dyeing, printing, special chemical finishing, etc.

This industry is considered profitable for new and aspiring entrepreneurs. You can start a textile manufacturing business with little investment and can earn a big profit. 


There are plenty of small manufacturing business ideas in India that don’t need much investment and have high returns. All you will need is small manufacturing machines to start low cost manufacturing business.


Frequently Asked Questions

What is small manufacturing business?

Small manufacturing business can be started at home or at a small rental premise. The cost of machinery or equipment’s required for starting small manufacturing business is very low. You can even think of hiring machinery from the market In order to reduce capital investment or opt for machinery loan from us. 

How do I start a small manufacturing business?

Here are five tips you can use to assemble a manufacturing company from scratch.

1. Prioritize research
2. Consider the location
3. Consider daily operations
4. Start small and plan for a big future
5. Explore strategic partnerships

How do I find a manufacturer to produce my product?

Once you’re ready to hire a factory, start with these online sources to find a good match for your product.

How can I start a manufacturing business with no money?

Having a partnership is one of the best ways to start a business without money. Sourcing for funds is another popular way of starting your manufacturing business without capital. It’s a way of incorporating third parties or investors to your business.

Is starting a business hard?

Starting a business is hard work, requires a lot of determination and learning, and only pays off in the long term. Take an honest look at yourself before leaping.

Can anyone start a business?

There are no limits on who can become a great entrepreneur. You don’t necessarily need a college degree, a bunch of money in the bank or even business experience to start something that could become the next major success. However, you do need a strong business plan and the drive to see it through. 

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