Many people dream of becoming entrepreneurs, but starting a business often feels like a huge financial challenge. Some prefer something simple, while others think about starting a manufacturing business. If you’re considering a manufacturing business with low investment, this is the right place for you.
India is becoming a big name in manufacturing with the Make in India initiative. This initiative encourages businesses to produce goods locally, making it easier for new entrepreneurs to enter the market. It focuses on creating better factories, improving production, and boosting India’s role in the global market. This makes manufacturing a good option if you want to start a business without needing a huge budget.
Right now, the manufacturing sector makes up 17% of India’s economy, making it the sixth-largest in the world. The government is also supporting industries with new policies, creating more opportunities. For example, in the defense sector, India is working to use more locally produced products and export them, which increases demand for manufacturers.
Manufacturing is growing steadily and offers many chances for new business owners. In this blog, we will explore how you can take advantage of this demand and explore top manufacturing business ideas under ₹20 lakh in 2025.
What is a Manufacturing Business?
A manufacturing business makes finished products from raw materials or parts. These products are then sold to customers or other manufacturers. Manufacturing can be simple, with just a few steps, or more complex, involving many processes. It usually involves both people and machines working together. Some small manufacturing units need less money and effort to start.
Today, the manufacturing industry is growing fast and changing quickly. To succeed, businesses must focus on innovation. Old ways of making and selling products don’t work anymore. Only businesses that keep up with changes can survive. Also, competition is tough in every area, which can reduce profits.
Efficient operations are just as important as innovation. This can be easily achieved with CaptainBiz billing software, which helps streamline invoicing, manage inventory, and drive growth for any type of business. It’s affordable and designed to help you run your manufacturing business more efficiently.
Top Manufacturing Business Under 20 Lakh in 2025
Below are a few top manufacturing business ideas for 2025:
Footwear Manufacturing Business
The footwear business is a great option to start. Shoes are a part of our everyday lives. People need them for different occasions like parties, office, or everyday use. Footwear is always in demand and needed by people of all ages. You can start this business with less than Rs 20 lakh. With steady demand, it won’t take long to turn this into a profitable venture.
Tissue Paper Making
Tissue paper is used everywhere—restaurants, coffee shops, tea stalls, food centres, weddings, and parties. Starting a tissue paper manufacturing business can be a great idea. All you need is a tissue paper-making machine, which may cost less than Rs. 20 lakh. This business has huge potential to grow. It’s one of the best small manufacturing ideas for anyone looking to start with a low investment.
Artificial Jewellery for Fashion
Artificial jewellery is a great business idea in India that can be started with less than ten lakhs. It’s affordable because it doesn’t use gold or diamonds. Today, many women prefer lightweight and stylish jewellery for work, parties, and festivals. Social media platforms like Instagram and Facebook are used by jewellery makers to promote their products. Partnering with influencers is also an effective way to spread the word. This business can be started with a small investment, making it an easy option for new entrepreneurs.
Candle Making Business
Designer candles are popular all year, especially during festivals. They are used as decorations in homes, birthday parties, weddings, restaurants, and hotels. Making these scented and colourful candles requires machines, but the cost is low. Starting this business doesn’t need much money. You can start it with less than Rs. 20 lakh. It’s a great small business idea for anyone looking for a low-cost investment.
Ball Pen Manufacturing
Ball pens are sold in the market for Rs. 5 to 10 each. This means the production cost is very low. You don’t need a big budget to start this business, and you can produce in large quantities. Just focus on using good-quality ink and building a trusted brand. The design and look of the pen also play a big role. It can be one of the best small-scale manufacturing ideas under Rs. 20 lakhs.
Soap and Detergent Manufacturing
Making soaps and detergents is simple with basic tools and machines. These products are used in every home daily, so there’s always a demand. Nowadays, people prefer herbal or natural options over chemical ones. If you create an eco-friendly formula, you can make good profits. This business can be a smart choice for consistent income.
Cell Phone Case Business
With more people using cell phones, the demand for protective cases has grown. These cases help prevent scratches and damage. It’s a business that can bring good profits. Making one simple plastic case costs less than Rs. 30, but it sells for around Rs. 150. You can start this business with a small investment of under Rs. 20 lakh.
Rubber Stamp Manufacturing
Starting a rubber stamp business is easy and affordable. You can run it from home or set up a small shop. Rubber stamps, especially pre-inked ones, are in high demand for official use. The process to make them is simple and doesn’t need special skills. You can create different types, like pocket stamps, polymer stamps, and regular rubber stamps, using basic tools. It’s a low-investment business with good earning potential, making it a great option for beginners.
Toy Manufacturing
There are many types of toys you can make—plastic, wooden, or stuffed. You can create a whole range of toys. Toy-making is a creative business. You can use your imagination to come up with different designs. The investment needed depends on the type of toy you choose to produce. It’s one of the top small business ideas for high profits. You can start this business with an investment under Rs. 20 lakhs.
Papad Making
Making papads can be a great small business idea with low investment. Papads are thin, crispy snacks that are usually fried or grilled. They are popular in Indian households, hotels, and restaurants. Papads come in different flavours and textures, and people enjoy them all year round, especially during festivals. The demand for papads is growing, and it’s a profitable business. Before starting, it’s helpful to check what local customers like. Most papad businesses are run by local suppliers, even though there are some big brands in the market.
Essential Steps to Start Your Manufacturing Business
Do Market Research
You need to understand the market before starting your business. Find out what people want, who your competitors are, and what customers like. If you don’t know what to make yet, look at trends in different industries, find any missing products, and think about whether your idea will work. This research will help you decide what to offer and how to price it right.
Determine Your Niche and Target Products
Now, choose the type of business you want to run, like food, electronics, or clothing. Once you’ve decided, focus on the main products you want to sell and any extra products you could make to earn more. Think about how to make your products stand out and how you can ensure they are trusted by customers with proper labelling.
Build a Memorable Brand
Pick a simple, catchy name and design a memorable logo for your business. This will help people recognise your company. Your brand should show what your business stands for and what makes it different from others. Think about your brand story, and make sure to protect it legally, especially online, so no one misuses it.
Outline the Manufacturing Process
Create a clear plan for how you will make your products. From getting raw materials to packing and shipping finished goods, every step should be well thought out. Identify any problems that may come up and have a plan to solve them to make sure your process runs smoothly.
Additionally, any manufacturing business needs efficient inventory management, which can be handled using best inventory management software.
Secure Funding
Money is important for starting your business. You need enough to pay for everything. Work out how much money you need and look at ways to get it. You might use personal savings, apply for loans, or try getting help from investors or grants.
Market Your Manufacturing Business
To grow your business, you need to let people know about it. Marketing is key for getting more customers and making your brand well known. These days, it’s easy to reach people online through social media and other digital platforms, so use them to spread the word about your business.
Also read: The Importance Of Financial Planning For Entrepreneurs
Conclusion
In conclusion, the future of the manufacturing business looks bright. The government is offering various initiatives like Make in India and Atmanirbhar Bharat to support this sector. If you want to start a manufacturing business, the first step is to research the market and plan your setup carefully. It’s also a good idea to seek advice from a manufacturing expert. You can choose any of the top manufacturing business ideas mentioned above, which require low investment to get started.
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Frequently Asked Questions
What is a manufacturing business?
A manufacturing business produces finished products from raw materials, which are then sold to customers or other businesses.
How much money do I need to start a manufacturing business in India?
You can start with under Rs. 20 lakh, depending on the type of product you plan to manufacture.
What are the steps to start a manufacturing business?
Research the market, decide on products, secure funding, plan your manufacturing process, and market your business.
How do I market my manufacturing business?
You can use social media and digital platforms to reach potential customers and promote your brand.
