Best Manufacturing Business Ideas in 2024

The manufacturing landscape in India underwent significant changes in the post-COVID era, marked by resilience and growth. Despite temporary closures during the pandemic, the manufacturing sector has rapidly revived, contributing substantially to the nation’s economic rebound. This blog explores the current state of manufacturing, emphasizing its pivotal role in the post-pandemic recovery.

Current State of the Manufacturing Sector

Analyzing PMI and Sustainable Growth

The Purchasing Managers’ Index (PMI) for manufacturing reached a three-month high of 55.3 in July 2020, indicating sustainable growth after the pandemic. This section delves into the index’s significance and highlights the sector’s resilience.

Emphasizing the Need for Increased Contribution

While the service sector has traditionally led the economy, there is a growing emphasis on boosting the manufacturing sector’s contribution. This section explores the economic importance of a robust manufacturing sector.

Best Manufacturing Business Ideas in 2024

Introducing a curated list of manufacturing business ideas for 2024, this section aims to inspire aspiring entrepreneurs and existing businesses looking to diversify.

1. Ethanol Manufacturing

Ethanol manufacturing is one of the trending business ideas in India currently. As the government is planning to blend 20% ethanol with petrol by 2025 to reduce environmental pollution, the demand for ethanol is increasing in the country. In order to reach the 20% target by 2025, we’ll need around 1,016 crore liters of ethanol. About 334 crore liters of ethanol will be needed for other purposes. As a result, we must establish a capacity of 1,700 crore liters, assuming an 80% plant efficiency.

Apart from blending with petrol, ethanol is also used in plastic, pharma, cosmetics, and alcohol manufacturing industries. The government recently increased the prices of ethanol in the country to encourage the ethanol manufacturing industry in India. Ethanol can be manufactured from sugarcane, corn, and other food grains. The ethanol production plant with minimum capacity can be started with a budget of Rs. 50 to 80 crores.

2. Essential Oil Manufacturing

Essential oil manufacturing is one of the best business ideas that can guarantee huge profits. These are one of the few products with great demand throughout the year irrespective of the market conditions. They are used in the manufacturing of cosmetics. The essential oils are also used for various medicinal purposes. These oils are extracted from plants through the distillation process. The investment required to start essential oil manufacturing ranges from Solvent extraction – 80L to 1Cr and supercritical extraction – 1.5 Cr to 3 Cr (depending upon the machinery) excluding the land cost.

3. Sustainable Packaging

There has been a growing trend towards sustainable packaging due to increasing environmental pollution due to plastic packaging products. The government has also banned the usage of single-use plastic, which in turn is increasing the demand for sustainable packaging. Some of the sustainable packaging business ideas include paper packaging, bagasse packaging, banana leaves packaging, etc. It is one of the most viable businesses for MSMEs, which constitute a major part of the manufacturing industry in India. Entrepreneurs with a minimum budget of Rs. 50 lakhs can start a sustainable packaging business.

4. Toy Manufacturing

India is one of the major markets for toys in the world. However, the toy manufacturing industry in India is too small to meet domestic demands. So, India imports toys from foreign markets to cater to domestic needs. With the government pushing to boost toy manufacturing in India, the domestic toy manufacturing industry is gaining traction. Apart from the domestic market, there also exist huge opportunities for exports to the international markets. Karnataka houses the first toy manufacturing cluster in India. Entrepreneurs can easily start a toy manufacturing business with plug-and-play facilities available in the cluster. The minimum budget required to start a toy manufacturing business in India is More than 1 crore.

5. Rice Fortification

Fortified rice refers to rice with extra added essential micronutrients to increase its nutritional value. The government recently announced that the rice supplied to people across the country through various government schemes (i.e. fortified rice scheme)  will be fortified to address malnutrition in the country. Therefore, the demand for fortified rice is increasing in the country. However, the current fortified rice production capacity is very low to meet the demand. So, starting a fortified rice manufacturing business is one of the great manufacturing business ideas in India currently. Rice fortification by coating process can be done in a budget of Rs. 30-45 lakhs whereas the rice pellet extrusion method will cost up to Rs. 1.2 crore.

6. Edible Oil Manufacturing

The demand for edible oil has been growing rapidly in India over the past few years with the growth of population. As the domestic production of edible oils is very low, India majorly depends on imports to meet the growing domestic demand. Given the great gap in supply and demand of edible oils in the country, edible oil manufacturing is a profitable manufacturing business idea that can ensure better ROI. Some of the popular edible oil business ideas that can be looked at are mustard oil, sunflower oil, palm oil, coconut oil, etc. The budget required to start an edible oil manufacturing business will be 1 crore and above.

7. Technical Textiles

Technical textiles are a trending vertical in the textile sector. The technical textiles find applications across diverse sectors which include agriculture, automobile, medical, industrial packaging, construction, etc. With the growing industrialization, the demand for technical textiles is increasing in the country. So, technical textile manufacturing is a potential vertical to explore. It can be set up with a cost ranging from Rs. 1 to 3 crore.

8. Pet Food Manufacturing

Pet food manufacturing is another trending business in India. Around 32 million pets live in India, and their numbers are steadily rising at an annual rate of 11 percent. However, India does not have enough pet food production capacity to feed the 3.2 crore pet animals.

According to forecasts, India’s pet food imports are expected to reach 35 million kilograms by 2026, growing at an annual rate of 3.7% since 2021 when it was at 27.4 million kilograms. The demand for pet food in India has been growing at an average rate of 13.5% per year since 2001. As of 2021, India was the 52nd largest importer of pet food, following South Africa.

The government is also urging the industry to increase production levels. Therefore, pet food manufacturing has emerged as a potential manufacturing business in the country. The business can be started with an initial investment of Rs. 1 crore, excluding the land and building costs.

9. Millet-based Foods Processing

Millet-based foods have high nutritional value. The demand for nutritional foods such as millet-based foods is increasing rapidly after the COVID-19 pandemic. Millets are historically consumed by people in rural areas. However, after the pandemic, millet-based foods have become a preferred choice for all health-conscious people. So, millet-based food processing is a profitable manufacturing business idea with great scope. It is one of the best suitable businesses for MSMEs as it can be started with a budget of Rs. 50 lakhs.

10. Li-ion Battery Assembly Unit

Lithium-ion batteries are an important component of automobiles, smartphones, laptops, etc. Due to the proliferation of electronic devices and the shift towards electric vehicles, the demand for lithium-ion batteries is expected to surge in India. Since India does not have facilities for the manufacturing of lithium-ion batteries, you can go for an assembly unit. The investment required to start a lithium-ion battery assembly unit ranges from Rs. 1 to 5 crore.

11. Solar PV Modules Manufacturing

The solar industry in India currently depends on imports from China and other countries for solar PV modules. To enhance domestic manufacturing of solar PV modules, the government recently announced the PLI scheme for the sector, providing incentives to manufacturers. So, the sector is witnessing huge investments from entrepreneurs. While solar PV module manufacturing is viable for large-scale enterprises, MSMEs can play an important across the value chain as component suppliers to large players.

12. Drone & Component Manufacturing

Even though drones are popular in developed countries, their usage is yet to pick pace in India. The government is keen to provide a boost to the drone manufacturing industry in India. The government recently announced the PLI scheme for the drone manufacturing industry, providing incentives to drone and drone component manufacturers in India. So, drone and drone component manufacturing is a lucrative business in India. The budget required to start the drone manufacturing industry varies from Rs. 5 to 15 crores. However, the component manufacturing for drones can be started with a budget of Rs. 5 crore.

13. Vegan & Plant-based Food Processing

Today, more and more people are moving towards vegan and plant-based foods. A vegan diet eliminates all animal-related foods including dairy products, meat, fish, honey, etc. A plant-based diet does not necessarily eliminate animal foods but focuses on fruits, vegetables, nuts, etc. With people shifting towards vegan and plant-based diets, the demand for these foods is increasing. Vegan and plant-based food processing businesses can be started with a budget of Rs. 35 to 50 lakhs and this is the best option for MSMEs with limited financial resources.

14. Natural & Organic Cosmetics

The cosmetic industry is full of artificial cosmetics that would cause a lot of side effects. However, the demand for organic and natural chemicals is increasing among not just women but also men due to the side effects of artificial cosmetics. So, the manufacturing of natural and organic cosmetics is a profitable manufacturing business idea.

15. Speciality Chemicals

Specialty chemicals are used in various industries such as food processing, pharma, paints, etc. Currently, India mainly depends on imports from China for specialty chemicals. As India is trying to reduce imports from China as a part of the Atmanirbhar Bharat initiative, the specialty chemicals manufacturing domain is booming in the country.

While manufacturing is a sunrise sector attracting entrepreneurs to invest, entering into the sector and starting a manufacturing business is not so easy without help from experts. If you are planning to enter the manufacturing industry, kindly register with SolutionBuggy and get access to verified manufacturing consultants. To date, we completed more than 2,000 manufacturing consulting projects across the country.

Conclusion

In the evolving landscape of post-COVID manufacturing in India, resilience and growth define the industry’s trajectory. The highlighted Best Manufacturing Business Ideas in 2024 offer a roadmap for aspiring entrepreneurs, aligning with sustainability and innovation.

As we wrap up this exploration, we urge entrepreneurs to seize these opportunities. SolutionBuggy stands ready to be your guide in this journey. Let innovation drive your path, sustainability be your compass, and SolutionBuggy your trusted partner on the road to manufacturing success.

The future of manufacturing is promising. Are you ready to shape it? Connect with SolutionBuggy and embark on your journey to manufacturing excellence.

FAQs

1. What is the future of the manufacturing industry in India?

The future of the manufacturing industry in India looks very optimistic. The government is also taking several initiatives such as Make in India, Atmanirbhar Bharat, etc. to boost the sector.

2. What is the budget required to start a manufacturing business in India?

The budget required to start a manufacturing business varies depending on the product that you choose to manufacture.

3. What are the opportunities for MSMEs in the manufacturing industry in India?

MSMEs constitute a major part of the manufacturing industry. They play an important role across the value chain.

4. What are the best manufacturing business ideas under 1 crore?

Some of the best business ideas under 1 crore are millet-based foods, sustainable packaging, vegan food processing, drone component manufacturing, toy manufacturing, etc.

5. How can I start a manufacturing business?

To start a manufacturing business first, you need to do product identification and market research, following which you can go for plant setup. It is advisable to seek help from a manufacturing consultant to start the manufacturing business.