10 Manufacturing Business Ideas Under ₹25 Lakh Eligible for PMEGP Subsidy
10 Manufacturing Business Ideas Under ₹25 Lakh Eligible for PMEGP Subsidy Read More »
Ten manufacturing units that fit comfortably within PMEGP’s project cost framework, with realistic cost ranges and the subsidy math worked through PMEGP Manufacturing Business Ideas Under 25 Lakh A supportive middle ground for planning PMEGP is ₹25 lakh. It is not too large to be able to establish a medium sized a medium scale unit with the proper machinery, but sufficiently small that the entrepreneur’s contribution of 5 to 10 percent (depending on type) is easily manageable for most first-time applications. The ten ideas below have been selected because they have three common features: The machinery and set-up cost is within or less than ₹25 lakh; The raw material is not limited to a specific geographical area but is available in most parts of India; They are categories that are seen by PMEGP-implementing banks and KVIC offices frequently, and not in an unusual way. Production using a spice processing unit, which involves cleaning, drying, grinding, blending and packaging, requires around ₹15 to 25 lakh investment — one of the lowest capital-intensive avenues into food manufacturing, with India being the world’s leading producer of spices, ensuring a consistent raw-materials supply. 1. Spice Cleaning, Grinding and Packaging Unit The spice processing industry is one of the most viable small-scale manufacturing sectors in India due of its status as the largest producer and exporter of spices in the world. A unit which purchases raw turmeric, chilli, coriander or blends of spices from various regions, cleans and dries the raw spices, grinds the raw spices to the desired fineness and packs them in a packaging line with simple machinery, can be established for Rs. 15 lakhs to 25 lakhs. Value addition makes the economics much better, a packaged, branded masala blend is worth a much higher price than lose ground spice sold to a wholesaler, and the extra cost of packaging is low compared to the price increase. The manufacturing cost ceiling is well within the boundary of this trade category and the profile of the trade is well known with respect to PMEGP because this is one of the more commonly approved trades. View Full Project Details: Spices and condiments, Indian Kitchen Spices, Masala Powder 2. Cold-Pressed Oil Unit (Mustard, Groundnut, Sesame) A small cold pressed or expeller-based oil unit, processing mustard, groundnut, sesame or coconut, depending on availability, usually involves the use of an expeller machine, filtration machine and storage and packing plant, the total investment for a small unit (might be ₹10-22 lakh) being a daily capacity of around 10 tons. Today, with the shift to oils that are cold pressed and free from chemicals, there is a retail premium for these oils that didn’t exist ten years ago, especially in the urban markets. This can be made around a producing cluster for the selected oilseed, reducing raw material cost in a significant manner and often, the higher subsidy rates of PMEGP coincide with such type of siting. 3. Agarbatti (Incense Stick) Manufacturing and Packaging Although Agarbatti manufacturing is one of the simplest industries on this list, the basic rolling machines, drying racks and perfuming and packaging set-up can be acquired for ₹5-15 lakh, depending on the level of automation and the technology used. Demand is steady and is not quite cyclic, as the product is consumed every day for religious and ritualistic purposes all over India. This is also a category that can see a significant boost in output for a small unit without a commensurate proportionate increase in the number of staff working on the machine, especially in the unit economics part of the equation after the initial setup period. 4. Papad, Ready Mix and Instant Food Mix Unit Instant food mixes (dhokla, gulab jamun, pakora mixes and others), papad and idli/dosa batter mixes are a category that has significant retail demand in the urban markets and is growing in sales. These can be manufactured in a unit which can be setup in ₹10-20 lakh with mixing, rolling/extrusion and packaging equipment, FSSAI registration is the primary regulatory requirement. This category is attractive to a PMEGP applicant because the production cycle is relatively short and the recognition of the market is possible without having to invest in significant new machines each time a new product is added to the production line. 5. Detergent Powder, Liquid Detergent and Soap Manufacturing Units involved in detergents production, dishwashing liquid and bathing / laundry soap etc remained very common among the categories approved by PMEGP due to the proven technology for making detergents, established chemical supply chain for raw materials and year-round demand for these products during the recession. The basic unit with mixing vessels, simple soap-cutting/detergent-mixing line with packaging can be set up at ₹8-20 lakh. This is a field that the author has explored in great depth in the Soaps, Detergents and Disinfectants Technology Handbook published by NPCS, which explains how to formulate the product, how to test the product quality and how to choose the machinery needed to produce the soap that performs as well as the established product. These are the areas where a first-time entrepreneur in this field is most likely to need guidance to make the product that performs as well as the established product. Find the most profitable startup for your investment range 6. Pulse (Dal) Milling Unit For the small-scale daily capacity, a small dal milling unit which consists of dehusking, splitting, polishing and grading of pulses fits in between the price of ₹20 to ₹25 lakh and the core of the equipment comprise of dehusking machine, polishing drum and grading equipment. India is a vast consumer of pulses, with much of its production being ground in the country, near its consumption areas, a structural advantage which export dependent categories have not. The unit is best suited close to a pulse producing belt, both for the raw material cost and the fact that the by-products (husk, broken grain) are also sold; one such outlet is to poultry feed manufacturers, which increases the unit economics. Related
