The year 2020, which saw the widespread outbreak of coronavirus, has been very challenging for people across the world in many aspects. Till date, coronavirus has led to the death of around 1.45 million people in the world. It has resulted in a sudden fall of economies across the world, including India, leaving millions of people unemployed. The year 2020 for sure will go down in history as the most disastrous one that has shaken the global economy to its very roots.
At present, the manufacturing sector is seen as a ray of hope in India that can help India become a developed nation with a thriving economy. In fact, manufacturing is one of the few sectors, if not the only, that are registering positive growth in India after the Covid-19 pandemic. The Government of India, to promote manufacturing in the country, has announced several initiatives for the sector, among which PLI Scheme is the most notable one, recently. Under the PLI Scheme, which is worth INR 2 lakh crores, the government provides production-linked incentives to manufacturing industries in the sectors like electronics, textile, pharma, food processing, chemical, etc. This has led many entrepreneurs in the country to enter into the manufacturing sector, and existing ones to diversify into other business verticals.
Now that we are entering 2021, it is vital to revisit the manufacturing sector that provides better ROI with relatively lower investment. If you are planning to enter into the Indian manufacturing industry, this space is especially for you. As the manufacturing sector is vast with several business verticals, it is often difficult for the new entrepreneurs to narrow down on one single business idea. Therefore, SolutionBuggy has curated top manufacturing business, allowing the entrepreneurs to identify the best suitable manufacturing business idea.
Below is the list of the profitable manufacturing business ideas that you can pay heed to in 2021.
1. API Manufacturing
API manufacturing is one of the top businesses with huge scope in the future in India. Historically, India has been highly dependent on imports from China for APIs. India imports around 90% of its APIs from China. After the coronavirus pandemic, as a part of its push for Atmanirbhar Bharat, the Government of India has decided to promote API manufacturing in the country by giving several incentives. The government has extended the PLI scheme for API manufacturing, providing production-linked incentives of upto 20% on incremental sales over the next 10 years.
2. Medical Devices Manufacturing
Medical devices manufacturing is one of the fast-growing segments in India with the presence of MNCs and a large number of SMEs. The market for medical devices will become USD 50 billion by 2025. The Government of India’s initiative Ayushman Bharat, a national health scheme, is helping improve diagnostic facilities in the country, thereby increasing the demand for medical devices. The government has also announced incentives of upto 5% over the next seven years under the PLI scheme for medical devices manufacturing in the country.
3. Ayurvedic Medicines Manufacturing
Ayurveda is an ancient healing technique that originated in India. It is gaining ground recently in India and across the world. Ayurvedic medicines area preferred option for people, given their cost-effectiveness when compared with other conventional medicines. The Indian Ayurveda market will become INR 710.87 billion by 2024, growing at a CAGR of 16.06% over the four years.
The ministry of AYUSH and the ministry of MSME are collaborating to promote ancient healing techniques of India, including Ayurveda. The government will help the manufactures by providing incentives, assisting in marketing, etc.
4. Disposable Medical Products
Disposable medical devices/products such as needles, syringes, face masks, gloves and other PPEs are an integral part of the healthcare system. The demand for PPEs has increased exponentially worldwide during the Covid-19 pandemic period. India is one of the largest PPE manufacturing countries in the world. The PPE manufacturing in India increased more than 50 times over the past few years. With growing awareness about the health and demand for better healthcare facilities in the post-pandemic period, disposable medical products manufacturing is considered as one of the best business ideas.
5. Dye Production
Dyes are used in several industries such as textile, leather, food, paper, etc., to impart colour to the substances. There are different types of dyes, such as natural dyes, synthetic dyes, acid dyes, disperse dyes, sulphur dyes, mordant dyes, vat dyes, reactive dyes, aniline dyes, etc. As dyes are commodities that are always in demand in the industry, dyes production is a feasible business idea. The investment required to start the dyes production is also not so huge.
6. Fertilizer Manufacturing
Fertilizers are the substances that are applied to the soil or plant tissue to improve the growth of the plant. They supply all essential nutrients to the plants. India, being an agriculture-dependent country, has a huge demand for fertilizers. Currently, India majorly imports fertilizers to cater to domestic needs. During the FY-2020, India imported fertilizers of worth INR528 billion. The Indian fertilizers market is expected to grow at a CAGR of 11.9% over the next five years. So, fertilizer manufacturing is a better business idea in India.
7. Pesticides & Insecticides Manufacturing
Pesticides are the substances that are used to kill pests and other micro-organisms like fungi, bacteria, etc. Insecticides are the form of pesticides to kill insects. The Indian pesticides market is expected to become USD 895 million by 2023. The adoption of better agriculture practices will drive the demand for pesticides in the market. Therefore, the manufacturing of pesticides and insecticides is a profitable business.
8. Adhesives & Sealants Manufacturing
Adhesives are the chemical substances that are used to bind to things or objects together. Sealants are a type of binding substances with lower strength and higher elongation than adhesives. The adhesives and sealants market will witness a growth rate of 11.7% over the next four years. The growing packaging industry will drive the demand for adhesives and sealants in the country.
9. Cleaning Chemical Manufacturing
A wide range of chemicals are used for cleaning and cleaning products, such as laundry detergents, floor cleaning agents, bleaches, etc. Growing urbanization is increasing the demand for cleaning chemicals in the country. The cleaning chemicals market in India will reach USD 9.65 billion by 2026, growing at a CAGR of 15%. So, if you are planning to start a business with moderate investment, then you must consider the cleaning chemicals manufacturing business.
10. Food Chemicals Manufacturing
Food processing chemicals find usage in various food processing activities such as dying, heat treatment, preservation, etc. It is one of the fast-growing industries in India. The Indian food processing market will reach INR 15,971 billion by 2023, growing at a CAGR of 11.5%. Considering the growing food processing market in India, food chemicals manufacturing is a feasible business idea.
11. PCB Manufacturing
Printed circuit boards find applications in every electronic component that we use today, starting from smartphones, computers, laptops to industrial equipment. Rapid digitization, increased adoption of smart devices across several business verticals is driving the demand for PCBs in the country. The Indian PCB market will become USD 6.33 billion by 2024, growing at a CAGR of 17.9 percent. While the demand for PCBs is great in the country, the domestic production is very less, compelling India to import from other countries. So, PCB manufacturing can turn out to be a highly profitable business idea in India.
12. Battery Manufacturing
We use batteries in almost every electronic device and vehicle. With the growing industrialization, the demand for batteries such as lithium-ion battery, dry cell, etc. will increase in the country. A paradigm shift towards EVs will also drive the demand for Li-Ion batteries. The market for lithium-ion batteries in India will grow at over 34.8% annually over the next four years. Batteries are one of the few products for which the demand never falls. Taking into account the growing demand, battery manufacturing is a feasible manufacturing business that can ensure better ROI.
13. Energy Meter Manufacturing
Energy meters that are used to measure the energy consumed by electric devices are present in every household and commercial buildings. People will use these energy meters as long as they use electric devices. Governments in the country at various levels are taking steps to provide better electricity to each and every household. So, the demand for energy meters is growing rapidly. Energy meter manufacturing is a business idea with minimum investment, but it requires very good technical expertise.
14. Electric Generator Manufacturing
These days, electric generators are being used widely in not just commercial buildings but also households to ensure a seamless power supply. People use generators during special occasions like functions and parties as they provide power backup during the power cuts. The usage of generators is gaining traction in agriculture as well. Electric generator manufacturing is a good business idea that requires considerable investment.
15. LED Light Manufacturing
The usage of LED lights has been gaining traction in the country over the past few years. It is because of their lower energy consumption and long durability when compared to conventional lights. The market for LED lightings in India will grow at 34% over the next five years. While the usage of LED lights is extensive in the urban markets, rural areas still remain mostly untapped. So, the rural markets of India offer huge business opportunities for LED light manufacturers in the country.
16. Solar Panel Manufacturing
India has the fifth largest installed capacity of solar power in the world. India’s solar power installation capacity has increased from 2.6 GW to 28.18 GW in the last five years. However, unfortunately, the Indian solar industry has dependent on imports from foreign countries. The Government of India has set a target of solar installation of100 GW by 2022. This would increase the demand for solar panels and other related equipment in the country.
17. Technical Textiles Manufacturing
Technical textiles are the textile products manufactured for non-aesthetic purposes with functionality as a primary criterion. India is one of the largest producers of textiles in the world. But, technical textiles remains one of the untapped segments in the Indian textile industry. These days, the demand for technical textiles is growing in the country, owing to rapid digitization and industrialization. Till now, India has been dependent on imports for technical textiles, unlike conventional textiles. So, considering the growing demand and lack of domestic supply, starting a technical textile manufacturing business is a profitable business idea.
18. Hemp Fabric Manufacturing
Hemp fabric is a sustainable fabric manufactured from hemp plants. It helps to keep you warm in winter and cool in winter and it also protects you from dangerous UV rays. Hemp fabric finds applications in cloths, rope, etc. Therefore, the demand for hemp based fabric is gradually increasing in the country. Hemp is naturally grown in India. So hemp-based fabric manufacturing is a feasible business idea in the country.
19. Toys Manufacturing
The current value of Indian toys industry is just around INR 5000-6000 crores. It is less than 1% of the global toys industry. Indian toys industry supplies to a mere 25% of domestic toys demand. India primarily imports from China to meet the domestic demand. However, after the call given by the prime minister to boost the toys industry in the country, toys manufacturing has come to the central stage in India. Several state governments are taking initiatives to promote toys manufacturing clusters in their states. Toys manufacturing has huge scope in India considering the potential domestic market. The Indian toys market will reach USD 1.3 billion by 2023, growing at a CAGR of 13.9 percent.
20. Diabetic Food Manufacturing
Diabetic food manufacturing is one of the fast-growing businesses in the country today. These are the food items with less carbohydrates specially made for diabetic patients. India is home to over 77 million people with diabetes, which is the second-highest in the world. So, there exists great scope for diabetic food manufacturing in the country.
21. Nutritional and Health Food Processing
Food processing is evolving at a rapid pace in India with the changing lifestyle of people. The busy life of people has led to a growing fast-food culture, resulting in a lack of nutrition. With growing awareness about health, the demand for healthy and nutrient-rich food products is increasing. Nutritional food processing is a business idea with minimal investment and therefore is most suitable for MSMEs.
22. Bakery Products Manufacturing
Bakery products such as bread, biscuits, cookies, cakes, candies, etc., are very popular among the masses in the country. So, the demand for these products will always be high. Taste is the only thing that plays a major role in the success of the bakery products manufacturing business. So, you must invest a considerable amount of time and money in ensuring better taste and quality of the products to become successful.
23. Spices Processing
People use spices primarily for flavouring and colouring of food and the production of medicines, cosmetics and medicines. Spices which mainly grow in the Indian subcontinent are popular across the world. Turmeric, Garlic, Cumin, Black Pepper, Green Cardamom, Black Cardamom, Ginger, Coriander, Garam Masala, etc., are the popular spices. People not just in the urban but also in the rural areas are preferring ready-made powders for cooking. These people are preferring processed powders instead of handmade powders for cooking. So, the demand for processed spices is growing.
24. Savouries and Namkeen Manufacturing
Namkeen and Savouries are the most popular snacks in both rural and urban parts of India. It requires minimum investment to start the manufacturing of these items. The competition for this business is huge in the market. So, you need to ensure premium quality to have an edge over your competitors.
25. Ready to Cook/Ready to Eat Foods Manufacturing
Ready to cook foods are the food products that require some cooking before consumption. And ready to eat foods are the foods that are perfectly ready for consumption. These foods have become a norm in the country today, with people becoming busy in their day-to-day activities. Increasing working population and income levels of people in urban areas is driving the demand for these type of foods.
26. Vegetable and Fruit Processing
Fruits and vegetables are essential components of our everyday diet. Processing is vital to increase the shelf-life and preserve these items. The Government of India has allocated 500 crore rupees under the ‘Operation Greens’ project for tomato, onion and potato (TOP Crops). The government through the scheme intends to stabilize the supply of tomato, onion and potato in the country by promoting FPOs, processing facilities and professional management. The government has recently extended the scheme from TOP crops to all fruits and vegetables. You can make use of the scheme to start your vegetable and fruit processing business.
27. Integrated Cold Chain Business
One of the major problems faced by farmers in India while selling their agricultural produce is cold-storing and dispatching the items at the right time. This leads to the wastage of products many times. Maintaining the end-to-end cold chain is always a challenge for frozen food and ice cream businesses in India due to different climatic conditions. Therefore, investing in cold storage units to maintain temperature-controlled supply chain is a better business idea in India.
28. Packaging Business
Product packaging plays an important role in influencing the purchase decisions of consumers. Packaging has grown into an industry by itself these days. Product packaging is vital in attracting consumers and improving the shelf-life of products. Currently, packaging is the fifth-largest industry in India. The packaging industry in India will reach reach USD 204.81 billion by 2025, growing at a CAGR of 26.7%.
29. Mobile Accessories Manufacturing
India is the second-largest mobile market in the world, only behind China. India surpassed the US with 158 million shipments in 2019. Indian mobile manufacturing has come a long way from 2014 with 2 manufacturing to current state of 100s of manufacturing units. Today, India some of the major mobile manufacturing brands and their contract manufacturers in the world, including Samsung, Xiaomi, Pegatron, Micromax, Foxconn, etc. So, establishing a mobile accessories manufacturing business to cater to the wider mobile customer base is one of the profitable business ideas in India right. Mobile accessories include several items such as earphones, mobile covers, screen guards, chargers, dongles, memory cards, batteries, power banks, Bluetooth speakers, etc.
30. Dairy Processing
India is one of the largest producers of milk and milk products in the country. Indian dairy processing has come a long way from being a milk-scarce industry to a milk-surplus industry. The dairy and milk processing industry in India will reach INR 2,458.7 billion by FY 2023. India’s growing population acts as a huge market for the dairy processing industry.
If you are planning to enter into the manufacturing industry and start your manufacturing business, then kindly register with SolutionBuggy. We provide you access to trusted and verified manufacturing consultants. New business ideas require a structured and comprehensive approach to successfully execute. We help you start your manufacturing business by undertaking the complete execution of the project.