Top 10 Small Scale Manufacturing Business Ideas for Gujaratis in 2025

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  By Gujju Ticks

  16 May, 2025

Gujaratis are famous for their entrepreneur spirit, risk-taking behavior, and entrepreneurial culture deep within their roots. With the Make in India and Vocal for Local initiatives gaining strength, 2025 has a golden chance for prospective Gujarati entrepreneurs to take advantage of the manufacturing sector.

Beginning a small-scale manufacturing company need not always involve massive capital. The right idea, systematic planning, and some innovation could help an individual establish a profitable venture. Below is a compiled list of the top 10 small scale manufacturing business ideas for Gujaratis in 2025 that are suitable for both urban and semi-urban areas of Gujarat such as Ahmedabad, Surat, Rajkot, and Vadodara.

1. Agarbatti (Incense Sticks) Manufacturing

Why it works:

Agarbatti is used widely across Indian households and temples. Gujarat, with its rich spiritual culture, offers a strong local market.

Investment: Rs. 50,000 to Rs. 2 lakhs

Profit Margin: 30% – 45%

High CPC Keywords: agarbatti making machine, low investment manufacturing business

Tip: Choose eco-friendly raw materials like bamboo and herbal oils for added appeal.

2. Papad and Khakhra Making Unit

Why it works:

Gujarati snacks like papad and khakhra are famous not only in India but also abroad. With the rise in demand for traditional, healthy snacks, this industry is booming.

Investment: Rs. 1 – 3 lakhs

Profit Margin: 40% – 60%

High CPC Keywords: khakhra making machine, home based food business

Tip: Export opportunities are vast. Consider targeting NRI markets through Amazon and Flipkart.

3. Organic Fertilizer Production

Why it works:

With increased awareness about organic farming, the demand for organic compost and fertilizers is surging.

Investment: Rs. 2 – 5 lakhs

Profit Margin: 60% – 70%

High CPC Keywords: organic fertilizer manufacturing, agro based business

Tip: Collaborate with local farmers and agriculture co-operatives.

4. Textile Printing and Dyeing Unit

Why it works:

Surat is already a textile hub. Starting a small unit for digital printing, block printing or dyeing can be very profitable.

Investment: Rs. 3 – 7 lakhs

Profit Margin: 25% – 40%

High CPC Keywords: textile printing business, dyeing unit setup

Tip: Use eco-friendly dyes to attract global buyers.

5. LED Bulb Assembling Business

Why it works:

Energy-efficient lighting is in huge demand. The government promotes energy-saving products through subsidies and schemes.

Investment: Rs. 1.5 – 3 lakhs

Profit Margin: 40% – 55%

High CPC Keywords: LED bulb assembly business, energy efficient products India

Tip: Target government tenders under MSME schemes.

6. Herbal and Ayurvedic Products Manufacturing

Why it works:

The Ayurvedic market is expected to grow to $9 billion by 2026. Gujaratis have access to rich herbal resources and traditional knowledge.

Investment: Rs. 5 – 10 lakhs

Profit Margin: 60% – 80%

High CPC Keywords: ayurvedic product manufacturing, herbal cosmetics business

Tip: Get AYUSH certification for credibility and explore D2C (Direct to Consumer) selling.

7. Spice Powder Manufacturing

Why it works:

Indian cuisine is incomplete without spices. Gujarat’s cuisine itself has high demand for turmeric, red chili, and garam masala blends.

Investment: Rs. 1 – 4 lakhs

Profit Margin: 30% – 50%

High CPC Keywords: spice powder making business, masala manufacturing unit

Tip: Focus on hygienic packaging and regional flavor variations.

8. Biodegradable Cutlery Manufacturing

Why it works:

With the ban on single-use plastic, biodegradable products like areca leaf plates and corn starch spoons are in demand.

Investment: Rs. 3 – 6 lakhs

Profit Margin: 50% – 70%

High CPC Keywords: biodegradable products business, eco-friendly cutlery manufacturing

Tip: Partner with event management companies and caterers.

9. Cotton Wick (Batti) Making

Why it works:

Used in daily pujas, cotton wicks are simple to produce and have a steady market, especially in festive seasons.

Investment: Rs. 20,000 – Rs. 1 lakh

Profit Margin: 50%+

High CPC Keywords: diya batti making machine, cotton wick manufacturing

Tip: Target temple suppliers and religious stores across Gujarat.

10. Paper Bag and Disposable Packaging Unit

Why it works:

Paper bags are replacing plastic across retail and food sectors. With increasing environmental regulations, demand is steady.

Investment: Rs. 2 – 5 lakhs

Profit Margin: 40% – 55%

High CPC Keywords: paper bag making machine, eco friendly packaging business

Tip: Start B2B sales to local kirana stores, sweet shops, and clothing retailers.

How to Get Started

1. Register Your Business: Apply for Udyam Registration to qualify for MSME benefits.

2. Market Research: Understand local competition, demand trends, and pricing.

3. Leverage Government Schemes: Use subsidies like PMEGP, MUDRA loans, and Skill India for capital and training.

4. Focus on Branding: Packaging, quality control, and digital presence are vital.

5. Sell Online: Platforms like Amazon, Meesho, and Jiomart can help reach a pan-India market.

Final Thoughts

Small-scale production is not only a way of making profit—it's a way of working for Atmanirbhar Bharat and creating local jobs. Gujaratis, being a people with the spirit of entrepreneurship, are best suited to spearhead this revolution in grassroots industry.

In 2025, the possibilities are endless. The secret is to choose the right product, have quality consistently good, and adopt both the old values and new marketing skills.

Whether you are in Bharuch or Bhavnagar, Surat or Sabarkantha, these small industries can be the key to financial freedom and long-term prosperity.