20 Profitable Small Manufacturing Business Ideas for 2022

a man is making kids toy

You want to create and sell something. It need not be using technology but your skills and expertise or a certain machine. Is it profitable? This is the basic question that comes to your mind instantly. Small-scale product manufacturing is indeed a profitable business idea and should be taken seriously. Even if it seems to be on a teeny-tiny scale, it plays a role in the Indian economy. You can earn revenue by investing a small amount of money, equipment, raw materials, and expertise. Don’t worry; you do not have to do anything huge in case of marketing activities and expenses. It can be managed with a little effort on your part. 

But if you are confused about which small-scale manufacturing business idea you need to follow, we have a list for you. These are simple, small-scale ideas that can be implemented from the comfort of your home too. But we advise renting a small space or at least dedicating a tiny space in your basement or your home for stress-free production and business formation.

What is manufacturing business?

In manufacturing business we produce goods through the use of raw materials, labor, tools and biological or chemical processing. The steps taken to transport the raw material into final product is known as manufacturing process.

Manufacturing Industry Overview:

Manufacturers in the United States account for 12.4% of the total output in the economy, employing 12.5 million people. Total output from manufacturing sector was $2,335 billion in 2019. Top 5 export market are Canada, Mexico, China, Japan and United Kingdom.

The manufacturing sector in India has a market size of $320 billion.

Following are the interesting manufacturing businesses that you should consider: 

1. Making of incense sticks

This seems to be an age-old business idea as you can see several people selling incense sticks in your neighbourhood. You can go a little overboard and create incense sticks for different purposes such as meditation, prayers, driving out mosquitoes, spiritual purposes, and so on. You will need a small incense stick manufacturing unit in your place to create these sticks. You won’t need much capital apart from these. Well, you need to source organic raw materials to produce these incense sticks and be sure the suppliers are genuine and trusted. 

2. Making organic soaps and beauty care products

You must have attended a soap-making class in the past, but it is time to give it a business opportunity. Since branded and local soap brands in India are loaded with artificial ingredients and cause several skin diseases, people are turning towards handmade and organic soaps. You can develop and sell them in your network. If you add more products such as body lotion and hand lotions to your list, you can attract more revenue. 

3. Making carpets and rugs

Carpets and rugs are the essences of a house, and a house owner chooses them wisely. Since branded carpets are expensive and are not made of the desirable materials, you can dive into the business of carpet creation. Research in the textile industry is mandatory as you will need to buy the requisite equipment and be well-versed with the processes and techniques. A small investment is also needed. It depends on you whether you want to cater to the carpet requirements of a small area or the whole city. Accordingly, your budget and other aspects of business formation will be influenced. 

4. Making of eco-friendly bags

Plastic bags are a strict no-no for all those who want to adopt the zero-waste or plastic-free lifestyle. Fortunately, several people are moving towards this new life, and they look for non-plastic bags of all kinds. You can venture into this business by using old rags and cloth patches and converting them into bags of all sizes and shapes. If you add the fashion element, you can demand more prices for your exquisite products. \We are sure this business will be noble and unique of its own kind. 

5. Making of handmade chocolates and cookies

If you don’t love cooking but are an amazing creator of chocolates and cookies, you should not lose hope. You do not need to be a master of all, instead, harness these skills and sell your delicious cookies and chocolates to people. You can do it from your home and start from your friends’ network first. 

6. Manufacturing of sanitizers, masks, and other essentials

One of the post-covid top businesses sells sanitizers, sprays, masks, and other essentials. It might sound like a typical business idea, but you can make it unique. Maybe, you produce masks made out of pure cotton and have adjustable handles to them. Or you create beautiful designer masks for various functions. You can also experiment with sanitizers by adding aloe vera and other natural extracts and making them healthy and comfortable to use for people. 

7. Manufacturing of cold-pressed oils

Oils are essential for every human being, but we do not seek the best version of these oils in the market. You can take the initiative in producing cold-pressed, authentic oils for people. If you live in a residential area, then the people will be happy to buy good quality oils from you and be regular in the purchases. You will need heavy equipment to produce those oils, but that is okay. It will be a one-time investment. Tie up with authentic suppliers of raw materials such as coconuts, sesame seeds, and other ingredients to extract oil from them. 

8. Manufacturing of arts and crafts

If you love arts and crafts immensely, then you can still transform this hobby into a full-time passion. You can set up an art and craft store and recruit enthusiastic interns and artists to your team. You will need simple tools; the rest is all about how you market your business well on social media channels and spread your work to the maximum audience. Even though this business sounds small-scale, it can reach a global level, provided you have the initiative, and a strong belief in your art. 

9. Manufacturing of designer apparel

Here, we are not talking about the regular and lounge-wear apparel but the designer ones that need a little bit of intensive capital and more effort. You can utilize your fashion designing skills, use the tailoring equipment and create designer blouses and other ethnic wear options for women. You can also develop apparel for men. Venturing into designer wear is profitable as people are willing to spend higher amounts on such outfits. 

10. Manufacturing of detergents

There are two types of people: One type who are okay with any kind of detergent and the other who is very particular about the type of detergent they use. Your target audience will be the second type of customer. You can create safe and gentle detergents for washing clothes, utensils, and other home places. You will only need to choose the right ingredients, grind and mix the same and package the product nicely. Laundry detergents, whitening solutions, bleaching agents are other products you can produce. 

11. Creating footwear

Footwear creation is an art, and if you want to venture into this art-cum-business, this is your type. Every person buys footwear and, in all seasons, hence you never have to worry about your revenue and leads. You will need basic tools and equipment, but high-quality materials, and there you go! You can venture into organic, cruelty-free materials for producing footwear, and you have nailed it! 

12. Manufacturing of basic furniture items

We do not suggest you go for huge furniture items like closets or kitchen units, but the primary items like chairs, tables, and others. You can select only one type of material, such as plastic or cane, and venture into it. You will need moderate investment to start this business and, we are sure; the sales will go high if you focus on quality and delivery. 

13. Manufacturing of imitation jewellery

This can also be done as a home-based business as it needs basic tools and materials but a lot of expertise and patience. Jewellery is worn fondly by women in India, and they never get tired of shopping for new and unique ones. You can focus on a niche and sell it to your neighbours and friends, and then connect with an online store to supply it regularly. 

14. Manufacturing of paper-based cutlery

Due to the sudden plastic-free revolution and a lot of awareness campaigns, paper-based cutlery is witnessing a lot of attention and demand. You can manufacture paper cups and bowls, plates, and other items and sell them to the caterers or supply them at events. Your business will join as a contributor to the plastic-free lifestyle. You can even go deeper and try using recycled paper. Promotion is the key to reaching a massive audience, and research is essential to use the best techniques. 

15. Manufacturing of stationery items

Stationery items can be something basic such as erasers, pencils, pens, rulers, and so on. You can pick a group of things or focus only on one item, no worries. You will need a little bit of capital and equipment, but we are sure you will reach the students effectively. Moreover, you can target the stationery stores in your city or sell the products online by yourself. 

16. Manufacturing of soft toys

A home-based soft toy business does not sound challenging enough. So, you can expand the venture a little and produce them on a bigger scale. You can learn the process or recruit interns for the same. It is a myth that soft toys are preferred only by kids. Even couples and teenagers buy soft toys as gift items and look for variety. Ensure that you don’t limit yourself to the standard teddy bears, and try more kinds of animals. 

17. Manufacturing of spices

Spices are the essence of the Indian kitchen, and you can be the supplier of authentic spices for all Indian households in your area or city. It depends on the investment capability to determine the range of business you want to initiate. You can prepare individual spices or special spice powders and masalas. Quality is the king to becoming a leader in this business industry. Also, try to add something unique such as fast delivery, customized orders, and so on. 

18. Manufacturing of specific cooking items

Certain cooking items such as cocoa powder, baking powder, custard powder is in demand in all Indian households. People choose to buy excellent and authentic versions instead of experimenting with the ones of local brands. You can select manufacturing of any such cooking items and provide the customer with a robust solution for their requirements. You can also produce several items, but it depends on your investment capacity. 

19. Manufacturing of compost manure

Gardening is fun, but if people have the right kind of manure and fertilizers, they can see their effort flowering up. It is a simple process to create compost and fertilizers, and you can do it with simple tools, experience, and materials. The demand is good, particularly if there are more gardens and backyards in your area. Moreover, you can start this business venture from the comfort of your garden. 

20. Manufacturing of LED lights

LED lights are widely used by people all over the country. You can start this business on a tiny scale, depending on your capacity and expertise. However, since the competition is tough, you need to focus on the marketing efforts largely. 

The above 20 small-scale manufacturing ideas are unique and can be started by any determined person entering into the business industry.

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