Top 3 sure fire tier III city manufacturing business ideas

Top 3 sure fire tier III city manufacturing business ideas bring forth a few sunshine sector business ideas. This manufacturing business ideas can be successful across location.

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What manufacturing business will be successful, more so if one is from tier III cities? A primary question for any entrepreneur looking forward to open a new manufacturing business. At Senitih, a small business consulting service from Guwahati, Assam, North East India we get many related queries. Such as:

“Top 3 sure fire tier III city manufacturing business ideas” – bog high light a few manufacturing business ideas that can be implemented across small town, tier I, tier II, tier III and tier IV cities.

Tier 2, tier 3 or small town business scenarios are changing fast. Good reason being increasing opulence, fast technological development and adoption, fast mobility and top point to point logistic. Additionally, demographically tier 3 cities usually have population less than 100 thousand. Also, most of tier 3 cities are now par with tier 1 cities in terms of development.

Furthermore, most business sectors, including manufacturing business experiencing saturation level in tier 1 cities. To address this issue business are reassessing their business model. For this purpose, businesses are evaluating every single spoke of the wheel to gain market advantage. Therefore, businesses are revisiting all products, services, marketing strategies, distribution channels model to improve core competence.

Manufacturing business demand and advantage

In recent years, the emergence of the digital medium has moved the aspirations and needs of the consumers. With smartphones and easy internet access, consumers have most updated awareness of all available brands on market. This very much true for consumer live in tier 3 cities. Indeed, tier 3 city consumers are making choices to improve their living and quality of life. As a result they are making choices for better product and services.

A manufacturing business that start in tier 3 cities has many advantage. In fact, the business gets a new batch of consumer available from that tier 3 city and its adjoining areas. Moreover, there are other advantage such as lower infrastructure cost, lower cost manpower, materials, etc.. Consequently, this factors would act as a booster for tier 3 city manufacturing business ideas:

Furniture Manufacturing Business- A sunshine sector for India

Indian furniture industry is growing very fast. It is growing in higher growth rate in smaller cities. In next few years it is expected to have a 700% growth rate.

In India, Furniture manufacturing business – a sunshine sector for India. It has huge potential be it raw material, trade-skill sets and market demand. India has a rich history of unique and creative furniture works. Indian furniture businesses are able to mark globally. Its rich handicraft, attractive traditional art and design world consumers. For example, product portfolio includes designer interiors furniture like wardrobe, sofas, book-shelfs, table-chairs etc.. The Indian furniture market has able to keep pace global market and has been evolving with competition.

Moreover, in many countries including India, culture and way of life has made furniture part and parcel of household for ages. The Indian furniture sector make a huge contribution of 0.5% of India’s GDP. A majority of, 68.85% of this business is in unorganized sector.

Furniture manufacturing business market demand

The India furniture market has generated revenue of US$ 17.77 Billion in 2020. Post pandemic, India with steady growth in economy has rising furniture demand. Another aspect of rising furniture demand in India is increase earning and improving living standard. Other influencing factors are changing consumer demographics, real estate/housing boom and tourism and hospitality industry growth. These factors would drive a double digit CAGR of 13.37% during 2020-2026. Consequently, this would take the Indian furniture market to US$ 27.72 billion by 2026.

Assam and North East has abundant wooden, bamboo, cane, etc. furniture material. Wood constitute 65% demand for Indian furniture sector market. Moreover, this region can build a competitive advantage based on supply chain, labour cost. Additionally, government initiative of export promotion of products from this region. A recent interactive meeting with Government of Assam deliberated for setting up of a furniture hub. As a result, if set up this would open up new opportunity furniture manufacturing industry.

Edible Cutlery Manufacturing Business

As the world is moving towards plastic free zero waste product consumption. Eatable cutlery is one of major foods product category in emerging market in India. There is hardly 10+ manufacturing unit in India and out of them only a few are major one.

Plastic or non-disposable plastic are hazardous to our ecology. Application of plastic across various industries build up massive piles of unused or unrecycled plastic. Considering ecological danger of unused or unrecycled plastic countries across world banned non-disposable, petroleum-based plastic. This lead to technological development for alternative product like edible cutleries, bio plastic, tissue product, etc.

Edible cutleries are new to Indian and global market. These edible cutlery products are manufactured by using processed grains, pulses, and millets. Edible cutleries are completely eco-safe as it does not create any waste as one can eat it along with meal. Moreover, this can be feed to animals after use. Furthermore, it can be just dump it in the soil which will degrade to mix with soil easily. All table cutleries like spoons, cups, plates, chopsticks, ice cream cone, etc. can be made as edible cutleries. Also, it can be made variety of size, shape, color and flavor.

Eatable / Edible cutlery manufacturing business market demand

Market demand for edible cutleries is gaining. Edible cutlery market size was valued at US$ 24.86 million in 2018. With increasing consumer consciousness on eco-friendly, zero-waste, edible products uses are gaining acceptability and rising in demand. Edible cutlery market size is expected to have a CAGR of 11.1% during forecast period of 2019-2026.Consequently, market demand is expected to reach US$ 56.97 million in 2026. As edible cutlery products gain more traction among users will created a huge market potential. Therefore, this will create more opportunity for edible cutlery manufacturing units.

You can read more on edible cutlery business on blog post “how promising will be your unusual edible cutlery business”

Hollow Brick / Blocks Manufacturing Unit

Hollow concrete block are very fast substituting conventional clay bricks and stones in building construction. They are lighter than bricks, easier to place. Moreover, it also lower economics in foundation cost and consumption of cement. Rural, tier II and tier III cities demand is expected to drive the demand of hollow bricks in India.

Brick is important products building construction industry. India is second only to China among brick manufacturing countries. Traditional brick industry has biggest draw back in terms of carbon production and manufacturing cost.

Sometime back, world leader across countries deliberated in climate conference “COP26”. “COP26” stands for conference of the parties to cut emission 45% by 2030 from 2010 level. Consequently, to achieve “net zero” by mid-century. As a result, this will impact in opening new brick kilns.

In this emerging situation concrete hollow blocks getting acceptance as alternative product in modern building industry sector. Concrete hollow brick has many advantage over burnt clay brick. Some advantage are lower cost, durable, fire resistance, partial sound resistance, thermal resistance, and ease – faster in building construction.

Hollow Brick / Blocks Manufacturing business market demand

Market potential for concrete hollow brick / blocks potential stand at US$ 28.13 billion. The concrete hollow brick / blocks market probabilistic CAGR of greater than 3% in forecasted period 2020-2026. Consequently, it would have a market size of US$ 33.60 billion. Indian brick industry sector has sizable growth rate in recent few years. Major reason being bullish infrastructure and construction activities. At all India level, the annual potential demand would be around 275 billion units in 2026. India’s largest supplier of industrially produced bricks do have market share of 0.1% of market size. That means that the whole bricks market of India is unorganized sector. Therefore, this implies that there is a huge potential for concrete hollow brick / blocks manufacturing units.

There are a million dwellings housing gaps of per years in developing state like Assam. Therefore, a developing state like Assam or any of North Eastern states needs over 7500 million or more bricks in over the next five years.

Present market scenario

Contemporarily, for any tier 3 city manufacturing business ideas to get established and flourish would be very difficult. The emerging manufacturing business ecosystem easing this difficulty. Major reason being digital media development and penetration, technological and other infrastructural development. These factors has made many challenges vanished and made way for ease of doing business. Any entrepreneur interested in starting own manufacturing business in any of the above sector can proceed further. If one put in required due diligence will make one surely make success in these sectors. For advisory service for manufacturing business idea, please to contact Senitih small business consulting service for local business. Let your entrepreneurial journey be Mangalmay (मंगलमय).