China has been the largest Manufacturing Hub over the last few years, however due to the situations playing out in the global market over the last year considering the stand off between US and China, the oil price crash and the recent scare of Corona virus, the major players are now looking for more stable manufacturing centers. Since companies have seen that their supply chains have been vastly affected due to the current pandemic, they are considering backup locations to move their manufacturing units. Most of these companies had to stop production due to their components being stuck back in China as there was a halt in export. Wuhan, housing multiple manufacturers of automotive components affected the world automotive industry dreadfully. Automotive industry had already been phasing downfall in the market and production due to the auto-slow down and now along with pandemic it has been even more so.
As these global companies look to alter their business model and step towards contingency, companies are considering splitting their supply either partially or wholly away from China. Japan has already spent over $2 billion to move their supply-chain out of China. As an alternative the gaze has shifted towards India. Many electronic, automotive, healthcare equipment, mobile phone manufacturers have shifted their gaze to MSMEs in India. To mitigate the growing risk of concentrating the supply chain onto one region as well as due to China’s mishandling in the spread of corona virus, companies are eager to move out of it.
To those entrepreneurs who are looking for new Manufacturing business ideas, or those that are looking to expand/diversify, there could be a lot more opportunities in the market post the lifting of lockdown. Some of these mentioned below are small scale manufacturing business ideas.
Food Processing –
Food being one of the essentials, the food processing sector will invariably have demand. It is also said that investing in food processing industry is one of the safest investments. With the world transforming into a healthier one, growing demand for healthier, nutritious food is increasing. With already growing need for nutritious food, it would be even more so post the corona virus pandemic. Two small scale business ideas in food processing could be,
1. Immunity Boosting Foods – Since strong immunity is the shield for corona virus, the market for super foods that boost immunity would be larger and having higher demand.
2. Plant based Protein – Since having meat is still considered to be on the riskier side due to the pandemic, people might look out for other sources of protein. Food with plant-based protein could also be a very good opportunity and also more profitable.
FMCG always has a consistent market demand. Moreover, with its expansive variety of products, FMCG always has new products being released into the market. Given the situation with the pandemic, the industry is facing a thriving need for disinfectants and will be in the near future too. Two best business ideas in the FMCG which has a sustainable market are,
1. Compact Disinfectants Sprays and Sanitizers – Post the lifting of lockdown, travel within city would be resumed. Hence a compact hygiene spray as well as sanitizers could come in handy as safety measures. Apart from sanitizers even hygiene sprays could act as a disinfectant to sanitize equipment in office space, public transport and fitness centers.
2. Disinfectant Tissues/Paper tissues – A non-toxic disinfectant tissue could be another profitable idea in the FMCG sector as corona has created a panic among people which seems persistent. For hygienic and well-being measures, usage of paper tissues both in hospitals and personal categories will rise and create new demand.
India supplies over 50% of global demand in various vaccines, 40% generic medicine and 25% of all medicines in UK. With a pandemic in place, the world is not only gearing up to come out of this but also preparing for any further such outbreaks. Hence, Pharma industry would be ideal to start a business or expand the already existing business. Some top ideas in products that would have wider demand in India would be,
1. Herbal Immunity Tonics – As India was the origin of Ayurveda, most of our remedies come out of our kitchen. Especially during a pandemic as this, people would be looking forward to building stronger immunity and hence, an immunity boosting herbal medicine would be a go-to product.
2. Active Pharma Ingredients (API) for OTC Drugs – For the growing pandemic and the predictions of a second wave of corona virus, manufacturing of API would not only be profitable but also lifesaving. Production API; that is presented in all the drugs and produces the intended effects to treat different symptoms which initially was imported would be very beneficial to the Pharma industry as well as a helping hand in the field of medical science.
Chemical Industry –
With the Indian Chemicals industry, petitioning the government to categorize their industry as essential, it would be rather advantageous to start or expand the chemical industry. There have been a rising demands for various medicinal products due to the pandemic. Furthermore, most of the chemicals like that of chlorine, nitric acid, Sulphur, Sulphuric acid and many more are key ingredients in the manufacture of pharmaceutical products. The most essential as well as profitable products in the Chemical Industry could be,
1. Chemical for Pharmaceutical Industry – Like mentioned earlier, the finished products in the pharma industry are categorized as essential however not the raw material like the chemicals. With the petition to consider chemical industry also as essential, a business which is producing chemicals that would act as a key raw material in pharma industry would be termed as highly vital as well as profit-making too.
2. Argochemical Industry – In the wake of COVID-19 pandemic, the people as well as the government is looking forward to shunning malnutrition. A healthier, stronger as well as high immunity individual would be able to fight COVID a lot easier than those of the malnourished. Hence, an innovation is being made in the Agriculture field to achieve food security by all nations. Chemical industry that manufacture fertilizers and pesticides with innovation in improved productivity as well as sustainable growth will be welcomed with open arms.
Packaging Industry –
Almost all of India’s consumer goods contain plastic packaging. In various cities, the government has already called a ban on plastic. Moreover, the decrease in pollution during the lockdown has gone viral over social media. This would be the most profitable situation to come up with biodegradable packaging. With COVID-19 pandemic spreading through droplets, a hesitation would arise among people toward recycled products, hence biodegradable packing can be an assuring, safe as well as environmentally friendly. Some of the best biodegradable packing ideas are,
1. Packaging Food Products – The safety and environmentally friendly packaging for consumables could further motivate people to opt biodegradable packing as it can be decomposed. Hence, reliance on areca, bamboo, molasses and other biodegradable material for packaging is increasing.
2. Corrugated Box – With talks of supply chains moving to India and industries that would resume their manufacturing, as well as logistics, it would be the right time for corrugated boxes production. The need for which might increase due to the talks of increased production in various industries in India especially in pharma industry who plan to produce hydroxychloroquine 6 times the capacity to meet the demand.
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