Best Manufacturing Business Ideas
The manufacturing sector was surprisingly adaptable in the wake of the covid-19 pandemic, and its fortunes improved as a result. Manufacturing took a hit when the pandemic forced the closure of some factories, but it has made a quick recovery.
Since the second wave of the covid, India’s manufacturing sector has been expanding consistently. Manufacturing reached its highest level in three months in July. The Purchasing Managers’ Index (PMI) for July 2020 was 55.3, according to IHS Markit, signalling sustained growth in the wake of the pandemic.
The pandemic brought into focus the need to boost manufacturing’s share of an economy that is dominated by the service sector. Many would-be business owners and established manufacturers alike have responded by entering or expanding into manufacturing.
Now that we’ve reached a tipping point, it’s time to consider the best manufacturing business ideas for 2022. Manufacturing is a promising new industry in the post-covid era.
7 Best Manufacturing Business Ideas in India
1. Ethanol Manufacturing
The production of ethanol is one of the hottest new industries in India. The demand for ethanol is rising as the government plans to blend 20% ethanol with gasoline by 2024 in an effort to lessen pollution. Ethanol is used for many purposes beyond fuel additives, including in the plastics, pharmaceutical, cosmetics, and alcoholic beverage production industries. With the goal of bolstering the domestic ethanol industry, the Indian government has recently raised ethanol prices. Sugarcane, corn, and other cereal grains can all be processed into ethanol. Investing between Rs. 50 and Rs. 80 crores will get you started on your ethanol production plant’s minimum capacity.
2. Essential Oil Manufacturing:
The production of essential oils is a highly lucrative business venture. These are among the rare commodities whose popularity remains consistent year-round, regardless of the state of the economy. They play a role in the creation of various beauty products. Essential oils are also put to use in the medical field for a wide range of applications. Distillation of plants yields these oils. The initial investment to begin producing essential oils can be as low as 30 lakhs and as high as 60 lakhs, not including the price of land.
3. Pet Food Manufacturing:
The production of pet food is a growing industry in India. More than three hundred million companion animals live in India. The 3 crore pet animals in India, however, cannot be fed because there is not enough pet food production capacity in India. About half of the pet food in India comes from imports. The federal government is joining the industry in urging a rise in output. As a result, the production of pet food has emerged as a promising new industry in the country. Without counting the price of land or construction, this business can be launched for under 20 million rupees.
4. Solar PV Model Manufacturing
At present, solar PV modules are imported from China and other countries to supply India’s budding solar industry. The government has announced the PLI scheme for the sector to incentivize domestic manufacturing of solar PV modules. Therefore, business owners are pouring millions into the industry. Although large corporations can profitably produce solar photovoltaic modules, micro, small, and medium-sized enterprises (MSMEs) can play an important role in the value chain by supplying these corporations with essential components.
5. Millet Based Foods Processing
Foods made with millet are very healthy. After the recent covid-19 pandemic, there has been a dramatic rise in the demand for healthful foods like those made from millet. People in rural areas typically eat millets. However, millet-based foods have risen to prominence as a top option for health-conscious consumers ever since the pandemic. Therefore, the production of millet-based foods is a potentially lucrative business opportunity. One of the best businesses for micro, small, and medium-sized enterprises (MSMEs), it requires only Rs. 30 lakhs to get started.
6. Drone & Component Manufacturing:
While drone use has exploded in recent years across the developed world, in India it is still in its infancy. The Indian government is actively looking for ways to support the domestic drone industry. Manufacturers of drones and drone parts in India can now benefit from the government’s newly announced PLI scheme. Accordingly, the industry of making drones and drone parts in India is quite profitable. Starting a drone manufacturing business typically costs between 5 and 15 crores of rupees. However, fifty million rupees is enough to get started making drone parts.
7. Lithium-Ion Batteries Assembly Unit
Lithium-ion batteries play a crucial role in a wide variety of modern devices, including automobiles, smartphones, laptops, and more. Lithium-ion battery demand is predicted to increase in India as a result of the country’s rapid adoption of electronic devices and the rise of electric vehicles. Due to the lack of lithium-ion battery production facilities in India, an assembly unit is a viable alternative. Starting a lithium-ion battery assembly unit requires an investment of between Rs. 1 and 5 crore.
The manufacturing sector is undergoing constant change, making it more important than ever to choose the most viable business ideas. Although manufacturers are in demand and the manufacturing industry is poised for growth, getting started in the industry and opening a manufacturing business can be challenging without guidance from industry professionals. Register with Egniol (The best startup consultants in India) to gain access to verified funding consultants, investors, and various government schemes if you’re thinking of breaking into the manufacturing industry.