Most Profitable Manufacturing Business To Start In 2021

The covid-19 pandemic has shaken up the entire world, including the people, their businesses and economies too. As we grapple to learn to live with the virus while steadily starting our businesses, many things will be different henceforth. Health and safety has become a priority. Also the needs and wants of people have changed significantly too along with their lifestyle, thanks to the pandemic and the subsequent lockdown. 

With the changing needs and priorities in the new normal, the demand for products and services is also bound to change. What once felt like a necessity has now become a luxury and several other things have become important. For instance, a mask is now an essential without which no body can step out. With these changes in the new normal, the business ideas and subsequently the popular and profitable manufacturing enterprises will change too.

Let us discuss the most profitable manufacturing business to start in the year 2021. In the year 2021 health will still be a priority, so will safety and till a vaccine does not arrive for covid-19, people would still prefer staying at home, while even preferring to entertain at home. With these evolving priorities of people, the businesses once deemed rewarding and in demand might not be so any longer. So before talking about manufacturing business ideas and planning to start a new business, it is important for entrepreneurs to get idea validation for their business to study the feasibility and viability of the idea. This will help decide whether the business idea is likely to be in-demand and succeed in the current and future times.

Essentials to Consider For A Manufacturing Business

Also, along with the validation of the business idea, a manufacturing business needs to abide by certain rules and ensure complying with them before starting the business. These essential registration include- 

• Business Registration

By opting for a business registration via choosing an optimum entity, a business attains an identity and structure. A business enterprise can be incorporated by choosing any of the business entities, whether a Company, a Limited Liability Partnership, a Proprietorship or a Partnership. 

• Udyam Registration

Another mandatory registration essential for businesses is to apply for Udyam Registration.

Udyam Registration or MSME Registration is a government registration provided to certify small/medium businesses or enterprises. Udyam Registration is applicable for businesses involved in manufacturing or producing or processing or preservation of goods or in providing the services. 

• GST Registration

The Goods and Services Tax is applicable for all businesses that deal in the supply or sale of taxable goods/services. Businesses need to register their business for GST and obtain a registration number to indicate that they comply with the country’s taxation structure.

Most Profitable Manufacturing Business To Start In 2021

These are the essential registrations required for an entrepreneur to consider investing in the most profitable manufacturing business to start and expand. 

The manufacturing business ideas that will be rewarding in the coming year, keeping the new normal and the new preferences in mind include-  

• Soaps And Sanitisers Manufacturing

Washing of hands and sanitising them has become a vital part of our daily lives in covid times. And for this we will be needing soaps and sanitisers, thus making it the most profitable manufacturing business to start in the year 2021 as using them is going to become a mandatory essential habit. 

For manufacturing sanitisers, the WHO has issued guidelines highlighting the components that ideally a sanitizer must have- either ethanol or isopropyl alcohol where the volume of alcohol must be 80% or the composition must consist of 75% isopropyl alcohol, 1.45% glycerol, 0.125% hydrogen peroxide and sterile distilled water. This business can be started on a small scale too, requiring a minimum investment of Rs. 20,000 to Rs 1 lakh to obtain the equipment, materials, and a place to manufacture and bottle the sanitisers and market them too. A hand sanitiser manufacturing business requires a minimum operating space along with a safety area too, considering there are flammable chemicals. Along with adhering to safety protocols, a hand sanitiser manufacturing unit requires certain registrations too such as pharmaceutical or cosmetic manufacturing licence, along with a Udhayam registration, and Company registration.

Soaps too can be manufactured using various simple methods, including organic handmade soaps which are gaining popularity and are a profitable venture too which can even be started at home, with minimum investment. 

Therefore, sanitiser and soap manufacturing are popular and most profitable manufacturing businesses to start.

• Boxes And Packaging Product Manufacturing

Owing to the covid-19 virus, an increasing number of people will prefer to spend more time at home, and will opt for home delivery for the things they need, including food and also shopping. In fact, research suggests that the sales via e-commerce websites is set to double by the end of 2020 and continue to be the preferred way to shop for several people. Additionally, ordering food instead of stepping out is being preferred by individuals.

And for all of this online shopping and home delivery of food, the business owners are going to require packaging and sturdy boxes. Therefore box and packaging material manufacturing is set to be the most profitable manufacturing business to start in 2021, considering the high demand for doorstep delivery of products. 

A box and packaging manufacturing unit requires a sizable one time investment to purchase the machines ranging from die-cutting to corrugation machine to rotary cutting and stitching machine. However the only raw material it requires is craft paper and gum and these boxes can be supplied to numerous industries, including food manufacturers, automobile industry, electronic goods business, textiles, household appliances and items, footwear and several other industries. 

• Organic Cosmetics And Beauty Products Manufacturing

As people are spending more time at home and focusing more on self improvement, beauty and beauty products will also be favoured increasingly by people in the future. Also since many continue to avoid visiting a beauty salon, beauty products and cosmetics will see a rising demand. As reported by an analysis “cosmetic skin care market demand will show superior growth” in the coming years. 

The organic beauty products can range from face masks and clays to lotions, serums, and oils to even lip colours and balms to hair oils and masks, etc. It is one the most rewarding home manufacturing business ideas to start where the organic products can even be made from one’s kitchen. But it is important to have thorough knowledge of the ingredients and its effects. The material required for the manufacturing process of organic products include naturally sourced oils, flowers, twigs, gels, etc. The business can be started with a small budget too, with rewarding returns. But quality of the products and it’s packaging must be standardized on priority to win a loyal customer base and make it the most profitable manufacturing business to start.

• Disposables And Paper Plate Manufacturing

With an increasing demand for home delivery of food, the demand for disposables such as plates, cups and cutlery is going to be rising too. Therefore making it the most profitable manufacturing business to start in the coming year. 

The disposables are usually made using paper but several eco-friendly and sustainable material options are also available. The raw material required to make the plates and cups can be acquired from scrap dealers of paper or from sourcing organic material such as bamboo and bagasse etc. The business requires plate making and cup making machines and a minimum investment of approximately Rs. 50,000. The business can be started in an area as small as 500 to 800 square feet too. 

• Home Decor And Craft Items Manufacturing

As people are bound to spend more time at home, they will look to beautify their homes and surroundings thereby creating a demand for home decor items and handmade crafts. Therefore making craft and decor as the most profitable manufacturing business to start. These items can include decorative pots, planters, wall plates and hangings, vases, and show pieces. Additionally lamps, diyas, candles, lanterns too can be made. All these decor items can be made using ceramic or terracotta craft techniques or from paper mache or using embroidery and stitching techniques. India has abundant crafts and techniques which can be explored to manufacture several home decor items. 

The handmade decorative items manufacturing business can be started from home too with a low investment that is required to purchase the raw materials. A crafts and home decor business is a good way to encourage local arts and artisans along with being one of the popular and profitable home manufacturing business ideas. 

These are some of the most profitable manufacturing businesses to start in the coming year, that is in 2021. These business ideas are popular too since they are based on the changing priorities and needs of people, while they adapt to the new normal. In their journey of bringing their manufacturing business idea to fruition, entrepreneurs can seek the guidance of deAsra Foundation at any stage.