The manufacturing sector is full of possibilities for entrepreneurs aiming to launch or scale their ventures. Below are ten promising manufacturing business ideas for the future, along with key insights into their potential.
1. Solar panel manufacturing business
India’s growing focus on renewable energy makes solar panel production a lucrative venture.
- Market potential: The Indian solar power market is expected to grow at a CAGR of 9.4% between 2024 and 2030.
- Requirements: Investment in photovoltaic technology, skilled workforce, and quality control labs.
- Key to success: Stay updated with solar innovations and partner with installation companies for wider reach.
- Funding support: You can use a startup business loan to manage capital costs like equipment purchase and facility setup.
2. Bioplastic packaging manufacturing business
Bioplastic packaging is gaining momentum as businesses adopt eco-friendly practices.
- Market potential: The Indian bioplastics market is projected to touch USD 761.9 million by 2030 at a CAGR of 19.9%.
- Requirements: Knowledge of biodegradable polymers, machinery for moulding, and compliance with environmental norms.
- Key to success: Collaborate with FMCG and pharmaceutical companies aiming to reduce plastic use.
- Growth driver: Sustainability-focused government policies and rising eco-conscious consumers.
3. Custom furniture manufacturing business
Personalised furniture is a growing trend, especially among urban households and businesses.
- Market potential: India’s furniture market is projected to generate INR 6.19 billion in revenue in 2025, growing at a CAGR of 6.05% till 2029.
- Requirements: Expertise in woodworking, upholstery, and design software for customisation.
- Key to success: Build strong ties with architects and interior designers to secure recurring orders.
- Growth driver: Rising urbanisation and preference for customised home and office interiors.
4. Food processing business
Food processing is one of India’s most promising manufacturing sectors due to lifestyle shifts.
- Market potential: Valued at INR 28,027.5 billion in 2023, with an expected growth of 8.8% annually till 2032.
- Requirements: Food-grade machinery, compliance with FSSAI, and robust packaging facilities.
- Key to success: Focus on organic, gluten-free, or ethnic foods to tap into niche markets.
- Funding support: Entrepreneurs can explore a micro loan to fund equipment, raw materials, and branding.
5. Textile manufacturing business
The textile sector continues to be one of India’s largest employers and export contributors.
- Market potential: Expected to grow at a 10% CAGR, reaching USD 350 billion by 2030, with exports touching USD 100 billion.
- Requirements: Investment in modern machinery and skilled workers for processes like digital printing and technical textiles.
- Key to success: Maintain stringent quality control and strong supplier relations.
- Funding support: An MSME loan can provide capital for machinery upgrades and working capital needs.
6. EV components manufacturing business
The EV revolution in India has opened huge opportunities for component manufacturing.
- Market potential: India’s EV component industry is expanding rapidly with growing demand for batteries, motors, and telematics.
- Requirements: Technical expertise, advanced machinery, and collaborations with automobile manufacturers.
- Key to success: Focus on producing cost-efficient and high-performance parts to remain competitive.
- Growth driver: Strong government push towards e-mobility and FAME-II incentives.
7. Ethanol manufacturing business
With India’s push for cleaner fuels, ethanol production is becoming a strategic sector.
- Market potential: India aims to achieve 20% ethanol blending by 2025, significantly boosting demand.
- Requirements: Distillation equipment, steady feedstock supply like sugarcane or maize, and pollution control systems.
- Key to success: Establish partnerships with oil companies and maintain sustainable sourcing practices.
- Growth driver: Government blending mandates and subsidies in ethanol production.
8. Leather goods manufacturing business
Leather products enjoy consistent demand due to their durability and style.
- Market potential: Valued at USD 15,133.9 million in 2023, expected to grow to USD 25,481.6 million by 2030 at a CAGR of 7.7%.
- Requirements: Skilled artisans, tanning facilities, and design innovation.
- Key to success: Keep up with global fashion trends while maintaining quality.
- Funding support: Entrepreneurs can opt for a personal loan for self employed to cover expenses like raw materials and machinery.
9. Ayurvedic product manufacturing business
India’s wellness-driven market is boosting Ayurvedic manufacturing opportunities.
- Market potential: The Ayurveda products market is projected to reach INR 1.2 trillion (USD 16.27 billion) by FY28 at a CAGR of 15%.
- Requirements: Knowledge of Ayurveda formulations, GMP certification, and strong R&D facilities.
- Key to success: Create branded products in categories like skincare, supplements, and herbal medicines.
- Growth driver: Rising preference for holistic health solutions among domestic and global consumers.
10. Drone and component manufacturing business
Drones are finding applications in defence, agriculture, and logistics.
- Market potential: India’s drone market is estimated to reach Rs. 5,000 crore by 2030, with growing demand in multiple sectors.
- Requirements: Expertise in UAV design, navigation systems, and regulatory approvals.
- Key to success: Focus on high-demand uses like crop monitoring, surveillance, and delivery services.
- Growth driver: Government support through “Drone Rules 2021” and subsidies for domestic manufacturing.
The scope of manufacturing business in India
The manufacturing sector in India boasts an extensive scope, contributing significantly to the nation's economic growth. With diverse industries such as textiles, pharmaceuticals, automobiles, and electronics, the sector provides ample opportunities for employment and innovation. India's commitment to initiatives like "Make in India" further enhances the manufacturing landscape, attracting investments and fostering technological advancements. For small and medium enterprises looking to enter or expand in this sector, accessing an MSME loan can provide the much-needed financial support to invest in infrastructure, technology, and skilled labour. The evolving market dynamics and government support make the manufacturing business in India a dynamic and promising venture. If you’re already exploring funding options, take a moment to check your pre-approved business loan offer, it’s a fast way to discover financing you may already qualify for, without lengthy applications.
Benefits of a Bajaj Finserv Business Loan for manufacturing business
- Purchase of equipment: A Bajaj Finserv Business Loan can help fund the purchase of equipment required for the manufacturing process. This could include equipment such as industrial machinery, 3D printing equipment, and specialised tools. Opting for a secured business loan can provide access to higher funding limits and lower interest rates, making it ideal for significant equipment investments.
- Real estate acquisition: A business loan can fund the acquisition or lease of real estate for the establishment of manufacturing operations.
- Hiring staff: A business loan can be used to hire additional staff required for manufacturing operations.
- Working capital: During the initial stages of the business, a loan can be used to provide the working capital required for the purchase of materials and payment of salaries.
Steps to apply for a business loan for a manufacturing business
If you are planning to set up or expand a manufacturing unit, applying for a business loan is a simple process. Follow these steps:
- Step 1: Visit the official website: Go to the Bajaj Finance portal and click on the “Apply Now” option under the business loan section.
- Step 2: Check eligibility: Review the conditions, such as age, credit score, and business performance, before applying. This helps avoid rejection.
- Step 3: Calculate your EMI: Use the Business Loan EMI Calculator to estimate monthly instalments and choose a repayment plan that fits your cash flow.
- Step 4: Review loan costs: Understand charges like processing fees and compare the applicable business loan interest rate to know the exact cost of borrowing.
- Step 5: Prepare documents: Keep KYC, business proof, and financial records ready to speed up the application.
- Step 6: Submit application: Fill in the form, upload documents, and submit your request online. Once verified, funds are usually disbursed quickly.
Conclusion
Starting a manufacturing business requires planning and investment in equipment, facilities, and materials. With the right idea and support, you can set up a manufacturing business that is profitable and sustainable. Consider Bajaj Finserv Business Loan to finance your manufacturing operations and bring your ideas to life.
