Starting a small manufacturing business is easy and profitable. You can start your own manufacturing unit and run it from home. Because the cost of raw material and machinery or equipment for 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 the small production business.

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 is one of the most popular small manufacturing business ideas. Candles are associated with several festivals as well as religions.

Fancy candles with good fragrance 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, moulding, 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 enrol in candle making course.

Manufacturing Soap & Detergent

Soap and detergent products are essential FMCG products which are always in demand. So, soap and detergent manufacturing business is also a good option with low investment and high profit.

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 right ingredients and that too in proper proportion. For this, you can enrol yourself for 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

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, the 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 bag, paper plate, etc.

Apply for SME Loan

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 small business loan from us up to Rs. 5 lakhs. With the loan amount, you can meet all the financial requirements of the business in a time-efficient manner.

Manufacturing Envelopes & Folder File

You can also start the manufacturing envelope and folder file business. 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 requirement 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 resource.

And with lesser human resource, you can save monthly incurring wages cost, whereas machinery is a one-time investment.

The material required to start this business include ladles, basins, mixers, plastic bags, electric stove, weighing scale, and hand-gloves.

Homemade Biscuits

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

The business is very lucrative as the material required include 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.

Hair Oil Production

Hair oil production is also a low-cost business with high profit. And, the bonus point is, it can be started at home. 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 mixing machine. The business can be started with capital ranging from Rs. 25,000 to Rs. 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 are plenty of small business ideas that you can pick to start your own 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 a small business loan from us.

We offer loans ranging from Rs. 1-5 lakhs online at minimal documentation and essential eligibility criteria. Our interest rates are very competitive in the market, and we disburse the loan amount in just three days*.

Apply for Small Business Loan

Homemade Pickles

Homemade pickles have a huge demand as everyone likes homemade stuff especially when it comes to food.

Incense Sticks (Agarbatti)

India’s agarbatti has a huge demand in overseas as well as in India. One can easily start agarbatti manufacturing business from with low investment.

Buttons Making

You can start button manufacturing with little investment at your own space or a rented one.

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.

India shoe industry is quite big and it makes shoelaces demand high in the market. Manufacturing shoelace is now a trending small business idea 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.

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.20,000 to 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 machinery loan to buy cup-plate making machine.

Jute Bags

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

Staple Pins

Staple pins can help you make some serious money and also don’t need 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.

Coconut Hair Oil

This low-cost small business doesn’t need big investment and setup. You can start this business with just one lakh.

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 at your own land or rented one.

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.

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 plan and the drive to see it through.