Do you wish to start a candle manufacturing business in India? If yes, firstly, you have to decide whether you want to work from your home or start a small-scale manufacturing unit. In this business project guide, we will be stating some of the steps you need to follow to start a candle manufacturing business in India.
Is candle-making the business profitable in India?
A candle manufacturing unit or business is a popular business idea for beginners. This is because you do not need much investment to start this business. Additionally, the manufacturing of candles is quite simple, and you do not need heavy machinery or skilled employees. For making a candle, you will only need wax and wick, which are readily available on the market. Also, candles are necessary for every occasion, and therefore they are in demand throughout the year.
Steps to successfully launch a candle manufacturing business in India
Do your market research & Create a Business Plan
Before starting the business, you are advised to carefully go through the market and collect all the essential information and data related to the demand for candles and the competition in the local market. With this information, you can successfully create a business plan document that will help you find out the loopholes and execute strategies accordingly.
Based on all the data collected from market research, you have to formulate a strategic business plan.
Capital required to start a candle manufacturing business
The capital is the investment amount that will mostly depend on the scale of your business. For example, if you are just starting the business and want to cater only to the local customers, you may start a home-based or a small-scale manufacturing unit.
However, if you are planning to export your products to different countries and throughout India, you will need more capital to build a large commercial operation. You can apply for Business Loan through Pitch Deck depending on your business model.
Licenses and registration are required to start the manufacturing unit
If you wish to start a candle manufacturing unit in India, firstly, you will need a company registrationfrom the local authority.
Firstly, you have to register your business and apply for company formation. Next, you need to apply for a business pan card registration and get a trade license from the local authority. Additionally, you have to open a current bank account where you can also apply for a loan for buying the various machines and products. You also need to apply for GST registration for taxation purposes Shop & Establishment Registration is also mandatory if you want to start candle manufacturing business.
Buying of raw materials
The two major raw materials required for the business are wicks and paraffin wax. You will also need to buy various colors, molds, decorative items, yarn, and fragrances. Pay close attention to the packaging of scented or decorative candles as they are usually gifted.
Candle making machine
You have to select from different types of candle-making machines available in the market. Selecting the correct machine is an essential step before starting the business. You may choose from the following machines:
- Manual candle making machine
- Semi-automatic candle making machine
- Fully automatic candle making machine
Where to sell your candles
There are two ways to sell your products. One is by physically distributing it among the various local vendors and distributors. The most effortless process, however, would be to sell your products online.
For the physical distribution of your products, you have to get in touch with various retailers and local dealers and ask them to promote your brand. In this case, your pricing strategy will play a big role in attracting new customers to buy your products.
On the other hand, if you are planning to open an online business, firstly, you need to develop a website. The website development should be attractive and needs to be colorful. You can also add a customer service feature where your potential customers can get suggestions and clear doubts whenever they need them.
Final Words
If you are starting with less capital, then you are always advised to work with less manpower. Firstly, you have to understand the nature of your business, and you have to shoulder your responsibility. As your business expands slowly and profits start to come in, you can add more labor and machinery. If you have any other queries, feel free to contact our business advisors.
Online Business vs Offline Business – Benefits, Disadvantages
Moreover, If you want any other guidance relating to Company Formation. Please feel free to talk to our business advisors at 8881-069-069.
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