New manufacturing business ideas with medium investment for e-tailers

Venture into product areas that can require low to medium investment that can be returned within a couple of years

by Kamini on 23/11/2017
For an entrepreneur starting out, it makes good business sense to avoid ideas that require high capital investment in equipment, land, etc. Getting into the manufacturing business requires you to divide your time and effort between making business strategies, creating the product, and eventually selling it. Of course, there are other things to think about like inventory, operational costs and overheads, etc. without which the business would not generate returns. When starting up, it is important to consider the investment you are willing to put in as there may be a gestation period before the business generates regular cash flow. Therefore, it is best to venture into product areas that can require low to medium investment which can be returned within a couple of years.

You could start off by selling to businesses or you could manufacture your own products for direct sales to consumers. If you’re looking to start off on your own, here are some new manufacturing business ideas with medium investment that you can consider:

Cell phone case making

As the number of cell phone manufactures have increased, so has the demand for cell phone cases. From simple protective plastic casing to elaborate, customised ones, as a manufacturer you have multiple options to explore. The market value of mobile cases can be as high as 150 INR for a manufacturing cost of 50 INR and if executed well, can turn out to be a profitable venture.

Tissue paper making

Tissue paper is regularly used in bulk quantities in offices, coffee shops, restaurants, shopping malls, etc. and is always in demand. You can invest in a tissue paper making machine, priced at below 5 lakh INR and start manufacturing tissue paper for commercial supply.

Incense stick manufacturing

There is a huge demand for incense sticks, not just in India but abroad as well. More than 90 countries use incense and India being one of the sole producers, caters to these increasing global demands. With a minimum investment of around 5 lakh INR, which includes all expenses (cost of machinery, working capital, production cost and other expenses), you could jumpstart your career in the incense business.

Protective packaging materials manufacturing

Bustling e-commerce has created a huge market demand for protective packaging materials comprising bubble wraps, thermocol balls and sheets, air cushions, paper stuffing, etc. You can set up a protective packaging material manufacturing unit within a budget of 10 lakh INR and set the ball rolling for a medium budget business.

As a manufacturer, the safest bet to market your products is through an online marketplace with an existing customer base, such as Amazon. Once you register as a seller on Amazon, you can effectively drive traffic to your products by advertising on Amazon’s Sponsored Products and increase conversions with the help of Amazon Pay. Moreover, Fulfillment by Amazon (FBA) ensures free shipping and timely delivery of your products, translating into happy customers and enhanced sales.
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