Business Idea: Earn Upto Rs 13.42 Lakh Per Year By Investing Own Contribution Of Rs 2.46 Lakh In This Venture

If you want to start a business that requires minimum capital but gives huge profit, you could explore a smart business idea. Given that it is used widely in homes, factories, hotels, and restaurants, this product has a huge market demand. The government also helps people start this business. 

The business project that we have identified is Matchbox Making Business. This is a small-scale business that can be started by anyone without any specialized knowledge and women can also do this business easily.

Business Idea: Matchbox Making Business

Matchboxes are made from wood or cardboard strips. They are incredibly useful for lighting a fire. They are used in kitchens, industrial settings, campgrounds, hotels, restaurants, etc. They are consumer-friendly and durable products with a great market demand. The business could be started with moderate investment but yield bumper profit. 

Matchbox-making business which can be started on a small or large scale. You can start the business by strictly maintaining safety norms. The central government supports people initiating ventures in this sector under the Pradhan Mantri MUDRA Yojana (PMMY). You can avail of MUDRA loan up to Rs 10 lakhs from banks for matchbox making.

Raw Materials For Matchbox Making Business

The basic raw materials for matchbox making are:

1. Wood
2. Cardboard
3. Chemicals & other consumables (like Red phosphorous)
4. Paper and Packing Material

Business Idea: How To Start Matchbox Making Business

A matchbox manufacturing business may require machinery depending on the type of business you choose. The number of machinery required will be smaller for a small-scale business than for a fully automated one. 

Business Idea: Capital Required To Start Matchbox Making Business

The Khadi and Village Industries Commission (KVIC) has prepared a report on the business of making matchboxes. The report states that starting a matchbox-making business will cost you cost Rs. 24.61 Lakh, out of which you will require your own contribution of Rs. 2.46 lakhs. 

Matchbox Making Business COST OF PROJECT: Rs 24.61 Lakh

Particulars Amount
Land Own/Rented
Building /Shed 1500 Sq ft Own/Rented
Plant & Machinery: Rs 16.28 Lakh
Furniture & Fixtures: Rs 1 Lakh
Working Capital: Rs 7.33 Lakh
Total: Rs 24.61 Lakh

Matchbox Making Business MEANS OF FINANCE

Own Contribution: Rs 2.46 Lakh
Term Loan: Rs 15.55 Lakh
Working Capital: Rs 6.60 Lakh
Total: Rs 24.61 Lakh

Business Idea: Profits From Matchbox Making Business

If your matchboxes have a distinct quality and you are promoting it well, you can see lakhs of sales from the business. You can get in touch with neighborhood markets, supermarkets, and other retailers to sell your product. You can also register your products on online sites to increase your revenue.

The KVIC feasible report giving a Five Year's Projected Profitability Statement on Matchbox Making Business said that in the first year you can see a net profit of Rs 2.25 lakh, Rs 3.57 lakh in the second year, Rs 6.63 lakh in the third year, Rs 9.89 lakh in the fourth year and Rs 13.42 lakh in the fifth year.

(Disclaimer: This article is for sole information purpose and for readers' project identification. The earning calculator is also mostly based on assumptive figures to give an example of certain type as mentioned by KVIC previous estimates. The Zee News article does not intend to give any financial advice of any sorts. For initiating any venture, you must do your own due diligence and market research.)