Ideas for starting a small scale business in India

sarath T · 2009-12-11T02:54:28+00:00

I'm doing my final year electrical engineering. I want to start a small scale industry after my graduation.what are the major things to be concentrated? I'm looking for various innovative ideas to start a small scale business or industry in India. Can you give me a few suggestions?

sarveshgupta

@sarveshgupta-txtmu5 • Dec 11, 2009

Welcome to CE

Before advising you it would be better if you tell us something about what area are you planning to start and what have you thought about it. It'd be really nice if you could tell us a bit of information about your business and the budget that you in your mind to start your small scale business?

It will help you in getting more helpful and apt advice

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sarath T

@sarath-tlYQOB • Dec 12, 2009

I want to start a small scale industry,

like electrical machine parts manufacturing. areas which are related to electrical field in which i can use my knowledge in electrical. suggest me some more ideas. I've talked with a few people in the industry and looks like supplying machine parts to the manufacturing industry has lot of earning potential.

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Pechu

@pechu-aufKcZ • Dec 14, 2009

Its not wrong to start a business once when you graduate, i.e if u have support in family or people who are already into the electrical business are in your family.

But its always best to work somewhere in a company to gain experience 😀 Later you can get going with your business.
I'm not advising, just a good suggestion. 😁

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sarath T

@sarath-tlYQOB • Dec 15, 2009

Thank you friend

thanks for your suggestion😀😲. I do not have any budget in my mind for my small scale business; but anything that requires a capital investment less than 15 - 20 lakh would be something to consider. I'm sure the banks will be interested in funding the project.

I'm wondering if getting loan from the bank would be easy for a small business?

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Kaustubh Katdare

@thebigk • Dec 15, 2009

I've couple of tips 😀

1. The first thing you might want to do is to get in touch with entrepreneurs who are already doing what you aspire to do.

2. Interact with them and try to get knowledge about first steps in setting up your own venture in electric machine parts.

3. You may also opt for courses offered by government regarding small scale industry setup.

4. Read laws, rules & regulations involved in setting up small scale industry. This is one of the most important factor. You should have a clear idea about licenses involved and how long it will take you to obtain them.

5. Gain knowledge about how to form a proprietorship/partnership or private limited company in your country.

There are few other ways too. I'd start planning for a business by first exploring the suitable location for your business. If the industrial development area in your city gets you all the help you need; you should look at possibilities of securing the raw material and skilled labor.

Starting a small business is definitely challenging. You will have to study your local markets and the markets you want to capture before entering into the business.

This should get you started. If you have more questions, do post here 😀

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sarath T

@sarath-tlYQOB • Dec 16, 2009

thank u so much Biggie😀

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callyD

@callyd-6BKFb3 • Dec 20, 2009

The application fields of electrical engineering industry can be sub-divided into activities like designing, developing or testing of electronic devices like lighting and wiring of buildings, designing of telecommunication systems etc.

For example, if you wish to get into designing - you can talk to the businessmen in nearby area if you can supply them with your designing services. You may ask for advice on how you can help address the trouble areas by offering custom, low-cost solutions that help them save money. I'm sure that'd be a great way to start your new business.

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arunkumar505

@arunkumar505-55jMjx • Dec 22, 2009

to start a business the most important thng is the dedication and area of interest, if someone shud say that u shud start a business in the designing field and u start it than its not a business at all...firsty u shud know ur area of interest ..... by the way as if u r interested in the small scale industries than try to go in the service sector(not for the job).it will be good also u dont have to leave ur joob at all

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Robi

@robi-B7InVe • Jan 7, 2010

The core of any business is selling. Frst figure out how to sell your product or service.

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Prasad Ajinkya

@prasad-aSUfhP • Jan 7, 2010

Robi,
I disagree. The core of any business is not selling. It's the value it can create.

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shanbs

@shanbs-iHP1SH • Mar 15, 2011

i too is searching for ideas for starting small scale industries.after searching a lot and studied different ideas and projects ,i thought it would be more suitable to start a consultancy for giving ideas and technical help to new starters.actually i was more cautious as i lack money.from my own experience ,to get ideas u have to search some books.there are books even though the number of books are less.first understand our taste,then select a category from the broader list.like food industry,metal related,textile etc.then narrow the search,like meat industry or milk products etc.then again narrow - goat meat,cattle meat etc.then study about it.its a tedious method.

any way before u start u have a basic idea of a lot of industrial ideas.u have to search some book with title as 1000 industrial ideas.etc
the best idea for a person is that which gains money for him with lesser mental strain.if more strain that idea is not suited for him and it will eventually collapse.

i too is an engineer in electrical field.when i was studying electrical btech i too dream to start something related electrical field.but its not easy.if govt helps a lot financially and with place and also some marketing help then good medium scale industries can be set up.sure i can do that .but it remains as an idea only.

if u lack money ,that is u want to start an industry with 1 or 2 lacs then always say ,it as cottage industry.or do not say an indusrty .because many people dont know the concept about industry or factory.

any industry can be formed in this small scale.example--iron manufacturing.irn has to be powdered firstly.then seperate and concentacte iron content.then simply put that in a klin and burn with coke or charcoal .air to be blasted over molten iron .it again burns .then draw that to iron bars or rods.sell that.even if it is not worth the standard quality u can sell that with profit.after 2 or 3 years and with constant studying ,watching,experimenting and improvising u can easily manufacture good and best quality iron.and by that time u may get a stabel consumers too.

and india heavy engineering or exactly heavy metallic engineering we are a zero.
for wind power mills we are much backward.non convention energy technolgy india is no where in the picture.

its all because of institutionalised indusrtial field.only with cottage and small industries india can advance.
and destroy monopoly of private companies in all field or they destroys india and us.

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Ankita Katdare

@abrakadabra • Mar 31, 2014

This is a really interesting discussion. Those who are looking for starting a small scale industry in the branch of study they've chosen for graduation, can refer to this discussion and get benefited.

Here is some information on the technical aspect of it that should be of help too -

Provisional Registration certificate (PRC)
To set up an industry for a particular product, you will need to register it with the state Governmentâ€™s District or Tehsil Industries Centre (DIC / TIC etc.), which issues a Provisional Registration certificate (PRC).

To get the PRC, apply to the DIC etc in prescribed format with a Project Report / Project Profile.

This report should contain -

background of the entrepreneur,
plant & machinery to be bought & its value,
details of where the product would sell & at what price,
the sources of funds including term loan,
working capital loan,
own equity etc.

For large SSI project, details like cash-flow chart will also be needed.

After setting up the unit and achieved Trial production, the entrepreneur is expected to take the Permanent registration (PMT).

To get PMT, apply in prescribed format along with copies of -

PRC,
Power sanction,
Municipal / Panchayat Licence,
First Sale Invoice,
Lease or rental agreement,
Partnership Deed or Memorandum of Association (in case of limited co.)

More details can be found on IIT Kanpur - #-Link-Snipped-#

#-Link-Snipped-# Could you add some ideas here? What could be some small scale business ideas to start from home in India. Thousands of housewives and students without jobs are looking for ideas on this discussion page.

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Saikrishna Chowdary

@saikrishna-dOEt0x • Aug 9, 2015

i want to start a food factory....how much money i will need? i am from khammam dist,telangana state

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Kaustubh Katdare

@thebigk • Aug 9, 2015

saikrishna chowdary
i want to start a food factory....how much money i will need? i am from khammam dist,telangana state

Without proper details, it'd be impossible to say anything. You will have to factor in the following costs (just to give you an idea) -

1. Cost of land
2. Getting all the necessary permissions and licenses
3. Setting up a shade
4. Procuring all the required machines
5. Finding and recruiting the skilled and unskilled labour as required
6. Finding local markets, finding the distributors
7. Logistics involved
8. Leases and rents; if any
9. Packaging machines
...and so on. I'd strongly recommend that you should list out all the heads and then define the costs that each head would take for the first year or 6 months of operations. These costs would be typically defined by the scale at which you wish to start your operations.

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Ankita Katdare

@abrakadabra • Sep 29, 2015

I am thinking of inviting startup owners and startup enthusiasts to share their ideas here. But before that, we should all feed this post with all ideas we have. We can discuss their feasibility, ask questions, possibly even take a survey before someone can take up the idea and build a small scale business out of it.

Waiting for everyone's responses.

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Bijay Krishna Nandi

@bijay-krishna-nandi-z3OnlN • Sep 29, 2015

First of all I would say to stick to idea. Now your idea is to manufacture Electrical parts and equipment (Voltage level to be decided). Now whom to sell. You must have a complete scenario of the market requirements and cost impact to be incurred. For that you need to interact with customers (client), dealers or distributors( as they have detailed idea), auditors or consultants as they are the ones who give idea to your clients for optimisation or cost minimization by utilising different type of equipment in their system.

For small scale I would suggest of being an Electrical engineer, motors, pumps, fuse, links, switches, RCCB, RECB, starters, NL resistors, Metrosils etc.

As told in above replies its already being informed about the legal authorities to be approached for 100% compliance.

Apart from that I would suggest you to work first in a system to get the knowledge of the system say power system or Power trading ( Recent Boom). The more you explore, the more opportunities you will have. But again rules and regulations to be followed strictly.

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nagesh govardhan

@nagesh-govardhan-b784Bt • Oct 15, 2015

I am working in Khadi and Village Industries Commission (KVIC), Ministry of MSME, Govt. of India. KVIC implementing "PRIME MINISTER EMPLOYMENT GENERATION SCHEME (PMEGP)" and if you want to start the business, You can go through WEBSITE -
<a href="https://www.kviconline.gov.in/pmegp/pmegpweb/" target="_blank" rel="nofollow noopener noreferrer">PMEGP Home Page</a> or contact nearby Nationalized Bank or KVIC/ DIC office. The scheme is very attractive.

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Ankita Katdare

@abrakadabra • Oct 18, 2015

#-Link-Snipped-# Thanks for the information. What did you like the most about that scheme?

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shimpli daingade

@shimpli-daingade-wt5EPN • Oct 28, 2015

hi sir, I'm electronic and telecommunication engineer.I have knowledge of automation field also.I want to do business related to these field.what should I do for this?

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Kaustubh Katdare

@thebigk • Oct 28, 2015

shimpli daingade
hi sir, I'm electronic and telecommunication engineer.I have knowledge of automation field also.I want to do business related to these field.what should I do for this?

This -

Kaustubh Katdare
I've couple of tips 😀

1. The first thing you might want to do is to get in touch with entrepreneurs who are already doing what you aspire to do.

2. Interact with them and try to get knowledge about first steps in setting up your own venture in electric machine parts.

3. You may also opt for courses offered by government regarding small scale industry setup.

4. Read laws, rules & regulations involved in setting up small scale industry. This is one of the most important factor. You should have a clear idea about licenses involved and how long it will take you to obtain them.

5. Gain knowledge about how to form a proprietorship/partnership or private limited company in your country.

This should get you started. If you have more questions, do post here 😀

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Kaustubh Katdare

@thebigk • Dec 2, 2015

No matter which domain you wish to start your new business in - the basics are the same. As #-Link-Snipped-# said, it's all about the overall 'value' you can create - for the shareholders, employees and customers. Customers is where your revenues will come from.

There are simple ways to decide whether to setup a business. First find out what pain point you can solve - for customers or for other businesses. It could be by offering an easy, efficient or low cost alternative to existing solutions. If you can 'fill the gap', you are on to a good start to setup a business.

...and that's where you will get all your business ideas. Find what's needed and then offer it better than anyone else.

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Tuhin Das

@tuhin-das-ONbYAq • Dec 27, 2015

Sir ,
I'm an I.T.I electrician, doing job in SAIL, but paralally I want to start up a business on L.E.D lighting stuff.
Can I get any financial help from c.gov?
I also need about small scale business guideline because I'm absolutely ignorent in this field.

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Akhil C Joy

@akhil-c-joy-rhsVkZ • Dec 27, 2015

Hi Tuhin,

Already government has been launched several activities to help the dynamic and vibrant youth to develop the India. For a nation which can meet the requirements internally is a great thing. Such that there will be no cash deficit on the budget.

Government activities will be enlisted under Micro Small Medium Enterprises.
Kindly find the link for the MSME. #-Link-Snipped-#
Check for any MSME office there.

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Ankita Katdare

@abrakadabra • Jan 8, 2016

#-Link-Snipped-# That's a valuable resource. Thank you for sharing the link to Government's official MSME website. The following PDF lists all the initiatives by the MSME department. Check - #-Link-Snipped-#

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Ankita Katdare

@abrakadabra • Feb 1, 2016

Tuhin Das
but paralally I want to start up a business on L.E.D lighting stuff.

#-Link-Snipped-# There are LOTS of opportunities in the LED lighting business. Instead of giving you theory answers, I can share some examples of real-life startups.
Read the story of U.K.-based company whichledlight.com - a website to help consumers navigate the new LED lighting landscape.
Here: <a href="https://www.forbes.com/sites/kateharrison/2015/07/21/this-startup-is-helping-consumers-navigate-the-new-era-of-led-lighting-and-they-can-help-you/#7948ab312fcb" target="_blank" rel="noopener noreferrer">This Startup Is Helping Consumers Navigate The New Era Of LED Lighting (And They Can Help You)</a>

Chandigarh, India based "Spark Electronics"
The provide:
Unique design of LED bulbs and tube lights
A smart LED lighting system with customised automation system which controls the switching on of the lightings
Read their story here: #-Link-Snipped-#

An October 2015 Report titled " #-Link-Snipped-# " speaks of how individuals can work with the government for LED-fication of entire towns and cities.

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SAI KRISHNA DASARI

@sai-krishna-dasari-pGCsq2 • Feb 17, 2016

#-Link-Snipped-#
Thanks for your valuable information. is that any registration required to start any research oriented organization?
can i get any details regarding this?
#-Link-Snipped-#
#-Link-Snipped-#

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Srikant Mandal

@srikant-mandal-I9L2AH • Apr 14, 2016

i want to start a Electronics based company for PCB fabrications. All type of components assembled in pcb SMD or Th. So i want to know about rules and licence.

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muhammed aslam

@muhammed-aslam-1pJeTM • Apr 14, 2016

i would like to know about the potiential in e-waste recycling sector

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GAURAV TRIPATHY

@gaurav-tripathy-OaDnwl • Jun 28, 2016

Sir/Madam, my name is Gaurav Tripathy. Its my wish to setup a small scale steel industry in Jamshedpur or Baroda after a good experience of 10 to 8 years with a production capacity of 1MT per annum approx it may be 2. Depending on how much fund I may gather till that time. I'll buy 2 acers of land. So I request you to kindly help me out that how much this project may cost or how much budget I must have for this.

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Kaustubh Katdare

@thebigk • Jun 29, 2016

It's almost impossible to offer any suggestion because the information you offered is incomplete. You haven't informed us about your current status - whether you are a student, a working professional or already into any business. You didn't tell us what kind of experience you wish to have for the next 8-10 years.

Frankly speaking; if you are talking about fund requirements after 10 years - you should simply work on the principle that more the better. If your question has the intention that you'll need to start saving right now; you might as well think whether you can get investor from your friends / relatives circles.

Project cost - I believe is the 'initial investment'. The cost of land would vary and you'll have to figure out at how much it costs today in the area you wish to setup at. Then look at historical pricing of the land in that area and get the data.

My top off the head guess is that you'd need at least 2 cr (INR) - 4 cr after 10 years. But I might be grossly inaccurate as cost of land is a big variable.

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GAURAV TRIPATHY

@gaurav-tripathy-OaDnwl • Jun 29, 2016

I'm really sorry sir I did'nt inform you about my present status. Sir, I've just passed B. Tech and my trade was Mechanical also I'm going to earn my experience in steel making companies, almunium making companies, etc. All of these sort and your estimation about the initial cost was approximate to that I got to know, and I think I will be able to gather that much. So sir please give me the detailed or a rough information about the machineries needed, about the planning needed and about major points I must look through.

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GAURAV TRIPATHY

@gaurav-tripathy-OaDnwl • Jun 29, 2016

And also sir I start my journey from HINDALCO situated at Renukoot

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HIRAMAN KAMBALE

@hiraman-EMb5Br • Apr 17, 2019

hi sir/mam, I'm electronic and telecommunication engineer.I have knowledge of electronic field .Its my wish to setup a small scale industry related that field .what should I do for this?

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Kaustubh Katdare

@thebigk • Apr 18, 2019

#-Link-Snipped-# - It's difficult to make meaningful suggestions based on the information you've provided. There are several factors to consider before you can decide on what industry to setup.Â

Your location would influence the costs involved in renting / purchasing the land and availability of the raw materials / equipment for the industry.Â

However, in general, you could do a quick survey in your local markets and find out the product that can fill a gap or solve a need.Â

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Ideas for starting a small scale business in India

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