11 Small Scale Manufacturing Ideas [2020 Updated]

In this article we will suggest you with the best small scale manufacturing business ideas which can be really profitable for anyone who thinks of running a business.

To make a business successful, several factors are essential and should be considered, like money, funds, or a correct path to follow to run a business properly. And to take these small steps, start growing in a small scale manufacturing business that genuinely has high-income generation options making it easy for you to invest upon your big business in the future.

Moreover, these business ideas mentioned below need a meager amount of money to invest and give pretty profitable returns. You can easily choose any plan and work upon the business of your dreams!


11 Small Scale Manufacturing Ideas:

1. Incense Sticks

The most used product of every Indian house is incense sticks or commonly known as agarbattis. There are used daily in Indian households or temples as offerings to the god. Moreover, the demand for them increases whenever there is a festival, which thereby asks for an increase in productions.

Overview of incense sticks production:

The production of Incense sticks involves the uses of raw materials like bamboo sticks and oil fragrances, then these bamboo sticks are meant to be coated by oils and are left to dry. This process can be done either by man or through the help of machines which almost cost around Rs. 50,000. Later, one just has to pack these sticks with a proper label and sell them in the market.


  • It can be done in small places; a large area for production is not needed.
  • This requires less investment.
  • Raw materials are readily available.


2. Producing Buttons

The essential thing for the fashion industry, the buttons are never a bad option to be produced. There are a vast number of garments produced daily, which always require switches, from jeans or pants to shirts or top, badges are still essentials. 

Information regarding production: 

One can produce buttons using different things like plastic, wood, or steel as well. Depending on your choice, money to invest, and the demands from the garment producers, you can choose the material accordingly to produce buttons. These require an investment of almost Rs. 30,000. 


  • Buttons require a meager amount of money to be produced.
  • A larger area is not required; you can start the production even in a small flat.
  • It is not physically a hectic job, and a large workforce is not required.


3. Shoelaces

From a large company to a small company that produces shoes are always in need of shoelaces. India being the 2nd most significant producers of laces, there won’t be any slag in this business. 

Essentials information regarding this business:

One just has to get raw materials like cotton, polyester, or nylon according to the type of lace or band they need to make; all these raw materials are available in the Indian market and at a low price. Depending on the machine you choose, this business can be initiated for as little as Rs. 20,000 and has a vast scope of development.


  • Raw materials are available at cheap rates.
  • Significant capital is not needed for production.
  • With many company’s producing shoes, demands for shoelaces are never going to stop.


4. Handmade Chocolates

The most favorite thing about almost every human, handmade chocolate is a very lucrative business option. The demands for chocolates are never-ending and don’t have a slag until your chocolates taste perfect.

Information regarding production:

With a minimum investment of Rs. 30,000 one can quickly start this business, but gives real profit if you have around Rs. 1, 00,000 as chocolates require proper packaging and storage. The best part is if the initial business gets successful, then one can turn it into the central business option and get filthy profited.  


  • Has the option to turn it into a big business.
  • Doesn’tDoesn’t require much capital in an initial stage.
  • No slag in the market if you have a decent quality.


5. Production of papad

The mandatory food item present in the plates of every Indian is Papad. From being eaten in parties to every standard plate of the household, demands of papad are always high. 

Essential information:

One needs only wheat flour or dals according to the type of papad you decide to make and some basic spices & oil which are readily available in every market at cheap rates, with a small investment of Rs. 30,000 one can run their business. Either it could be produced with the help of a workforce or machines can be used depending upon your budget.


  • Papads are always in demand.
  • It can be sold in a variety of flavors, grabbing the attention of consumers.
  • A large workforce is not needed, can be put into efforts by 2-4 people.


6. Jute Bags

As there are frequent stoppages of plastics and polythene’s, there is a profit in making jute bags. Jute bags are immensely required, from selling bulk vegetables in jute bags to being used in daily fashion jute gas and purses; the need for this golden fiber is vast. 

Produce Jute bags with proper information:

Raw jute is available in bulk in the markets of India and also doesn’t cost much. The work to produce bags can be started in a small place but comparatively needs more money for production—one having almost Rs. 50,000 to 1, 00,000 can start this business.


  • Jute is cheaply available in bulk.
  • People from countries like Bangladesh and Nepal also deal with jute bags.
  • One can recycle the unused bag to produce new bags which save wastage and money. 


7. Paper Production

The most demanding product of all is paper, from offices to schools; papers are an essential item everywhere. The manufacturing of writing is very low and has high-profit rates. From different sizes of papers like A2, A3, or A4 to varying quality of excellent papers to rough papers, every type is in excessive demand.  

Some essential information:

Although production can be done at a cheap rate, it needs significant capital and transportation costs to add up, making it a bit expensive work. If you have almost Rs. 2 lakhs – 3 lakhs, then you will comfortably do this business and generate substantial profits. 


  • Left out papers can be used to produce small office books.
  • Adds up much profit altogether.
  • Unused or left out papers can be used to produce paper bags, which are another related business option.


8. Coconut Oil

People are using natural items these days than using synthetic products. Therefore, producing coconut oil can be profitable; being a natural product, people never hesitate to buy multi-purpose coconut oils.

Information for proper production:

This needs an investment of almost Rs. 1 lakh and gives immense profits. One can start producing this from a small farm with less capital and later enhance according to the benefits they get.  


  • Coconut oil is always in demand and ensures no slag in the business.
  • With proper machines, you can later expand the business into various categories like hair oil or cooking oil as well.
  • Coconuts are available in bulk at cheap rates.


9. Production of Soaps

Another product that is always in demand is soaps. Billions of people are choosy in solvents and tend to buy beautiful quality soaps or handmade ones. Therefore, this allows you to produce quality soaps and generate profits.

Produce soaps properly:

There are several raw materials needed to produce soap, like, glycerin, fragrances, oils, etc. this makes the business of soaps a bit costly but profitable. One who is capable of investing almost Rs. 1- 2 lakhs can quickly put a hand in this business. 


  • Soap making processes are natural and can be done efficiently with a small workforce.
  • Significant capital is not required to start at an initial level.
  • One can expand their business if they get massive profits.


10. Tempered Glass for Electronics

As the electronic sector is increasing and people daily need new phones or tablets, then the business of production of tempered glass gives us immense opportunities.

Essential information:

With almost an investment of Rs. 75,000 to Rs. 1 lakh, one can easily set up machines for the production of tempered glasses, with raw materials like glass and silicon, which are available in bulk at reasonable rates. They are in high demand and offer an enormous scope of profits.


  • High profits can be generated.
  • We Will not see a slag period as phones are in much use.
  • Can be produced for a variety of electronics like phone, tablets, i-pads, etc.


11. Staple Pins

Staple pins, another stationery item which is excessively used in offices or schools, always used to put in staplers and get used up in the blink of eyes. Staple pins are other too used items of all, and of course, staplers are of no use without the pins.

Information regarding production:

There are a variety of machines available in the market which can produce up to 400 pins per minute. The investments for this business can be approximately around Rs. 3.5 Lakhs with raw materials needed like iron and iron wires. Staple pins are one of the best ideas to be run as a business.


  • A large workforce is not required as a maximum of work is done by machines.
  • It can be a highly-profitable work as they are always in need and demand.
  • A large area is not required; it can be set up in small spaces with proper electricity supply.



A person could run different businesses, but the above listed are some of the most profitable and in high demands company, which is less risky and has chances of getting successful. One just needs to have a decent idea, the source for getting good quality raw materials with sufficient money and place to work these ideas out. With appropriate steps, one can quickly generate cash and get successful.

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I am a creative writer who likes to spread information. With different hobbies like panting and singing, i like writing and expressing the most. I am currently working as a content writer and am always curious to learn something new.

Disclaimer: The views, thoughts, and opinions expressed in the article have been curated for our audience and does not warrant a 100% accuracy. All the information mentioned in the article is subject to change according to the changing viewpoints. Feel free to reach us at [email protected] for any change or copyright issues.

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Ananya Dubey
Ananya Dubey
I am a creative writer who likes to spread information. With different hobbies like panting and singing, i like writing and expressing the most. I am currently working as a content writer and am always curious to learn something new.

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