How To Start Carpet Making Business In India Cost, Profit, Business Plan, Requirements | SkillsAndTech

This article is about that product which is the prerequisite in the make up of every typical Indian household, it’s the main reason we’re asked to leave our shoes outside and not roam around with dirty feet so that we don’t ruin the Carpet

Did you know? The Indian carpets manufactured in India are sold at a price 5 times higher in USA than in India? Exactly, That’s how much it’s labor intensive, precision and artisanal work is valued abroad.

Carpets are the monopoly for India. India is the world’s largest producer and exporter of carpets in terms of volume and value. Around 75%-85% of carpets manufactured in India are sold in over 70 countries of the world.

This Carpet making business which has been and ancient tradition and has become a flourishing industry since the 16^th century with all the competitive edge to you in terms of labor, Indian handicrafts, raw material has bought to you this business opportunity.

It’s time you take this legacy forward and here’s how

Market potential and uses

Carpets are textile floor coverings which are typically made of a thick woven fabric. These could be classified on the basis of

• Handmade carpets
• Manufactured carpets

The market potential for carpets is vast contributing to its domestic as well as foreign demand. Infact exports of carpets from India stood at $1.37 billion in 2020.

Further the market for carpets is rising because of the handcraft and artisanal and labour intensive, precision work involved in it which attracts a huge foreign demand and domestic demand because of unique regional artwork involved in carpet making specially in Agra, Jaipur etc

The market potential for this business can be further be elaborated and dug into on the following basis

On the basis of carpet fabric used

• Nylon
• Triexta
• Polyester
• Wool
• Olefin

On the basis of carpet piles and face weight

• Low pile carpet
• Medium pile carpet
• High pile carpet

On the basis of indoor carpet style and construction

• Texture carpet : in rooms and bedrooms
• Berber carpet. : in stairs, hallways and basement
• Pattern carpet : in commercial offices

On the basis of knots involved in carpet

• Symmetrical knot
• Persian knot
• Tibetan knot
• Jufti knot

On the basis of uses of carpets

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• Insulating a person’s feet from cold floor or tiles
• Used for performing holy prayers
• Used to make a space or room comfortable
• Used to decorate the interiors
• Used emit sound while walking
• Used for meditation
• Process of manufacturing carpets

• Woollen yarn spinning
• Yarn dying
• Raw washing
• Weaving
• Designing
• Yarn opening
• Shearing
• Embossing
• Binding
• Seinging
• Final clipping
• Stretching
• Drying
• Final washing
• Packaging

Licenses required

The licenses required to run this business are

Registration of Firm:

You may start the small to medium Business either a Proprietorship or Partnership Firm.

If you are starting this Business as One Person Company, then you have to register your firm as a proprietorship.

For Partnership operation, you have to register as a limited liability partnership (LLP) or Pvt. Ltd. Company with
Registrar of Companies (ROC).

GST Registration:

it is mandatory to get the GST number to run the business; you need to apply for the GST registration.

Trade License:

obtain trade license from local authorities

MSME/SSI Registration:

this MSME/SSI Registration will help you to get schemes and facility for the business offers by the state government

BIS certification:

BIS has mentioned the specific quality standard for Business. ISI specification for the

Trade Mark:

you can secure your brand with trademark registration

IEC code: 

IEC code is essential for the export of the product

Pollution Certificate:

apply for pollution certificate this business produces an offensive odour.

Employees 

state insurance which is an insurance scheme for workers.

ESI Registration:

Employees provident fund is compulsory for the business where more than 20 employees are working.

To comply with the above processes and registration, one might need any legal expert who would help in absolute legal compliance to meet industrial standards. 

Investment required

The investment required to set this business is ₹5 lakh – ₹ 10 lakhs

Profits made

The profits from this carpet making business is ₹50000-₹100000 per month

Target consumers

The target consumers for your carpet making business are

• Households: These require carpets to make their living room and bedrooms look more decorative of for the purpose of maintain a safe environment or flooring for children to play
• Hotels and restaurants: These require carpets for decorative purposes to give the place an appeal usually for the entrances and sometimes to embed flooring with carpets to give an afghani or Mughal vibe
• Meditational centres: Carpets are also used in certain meditation centres which requires the people to perform floor meditational exercises and practices to give them an authentic experience
• Commercial offices: The huge modern and contemporary offices spaces make use of carpets for the purpose of adding an organised and aesthetic element to give the place more of an appeal usually in cabins, conference rooms, corridors etc
• Theatre halls: The cinema halls, multiplexes and theatre halls etc also require carpets of high pile material to give them an appeal while making it comfortable for the audience to enjoy their experience while they are at it
• Exhibitions: The handicraft exhibitions, artisanal shows, etc could also be your potential target customers to attract the foreign demand from tourists, domestic travellers etc

Area required

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The area required to set this carpet making business is 1000sqft-1500 sq ft

Raw materials required

The raw materials required to set this carpet making business are

• Wool cotton
• Synthetic yarn
• Dyes
• Chemicals
• Packing material

Machinery required

The machinery required to set up this business is

• Tufting machine
• Shearing and trimming machine
• Wool extraction machine
• Stitching machine
• Dying machine
• Digital printing/printing machine
• Yarn heatsetting machine
• Back coating machine

Manpower required

The manpower required to set up this carpet making business is

• 3-skilled workers
• 5-unskilled workers

Moreover, ample training in terms of the following must also be provided with

• Machine usage
• Equipment handling
• Safety and precautions

Business model and growth

The business model of a carpet making business can be defined using these four variants

1. Value proposition: The value which this business is likely to provide to you is

• Largely available raw materials and labour
• Huge demand from domestic and international tourists
• Large government assistance

1. Target consumers: The target consumers for this business are as follows

• Interior designers and contractors
• Cinema halls
• Households
• Commercial offices
• Religious places
• Hotels and restaurants
• Meditational centres

1. Competitor review: The competitors to your business in this carpet making industry are

• Karpets by KRS
• Maharaja carpets
• Saif carpets pvt ltd

Marketing strategy

The marketing strategy that can be implemented by your carpet making business is

• Tie ups with interior designers and contractors
• Participation in trade shows and exhibition fairs
• Bulk and cash discounts to routine customers

Growth

The carpet making business has the potential and has witnessed the following growth prospects

• The Indian handmade carpet exports has grown by a CAGR of  4.3%  between 2013-2017
• Because of the growing “Make in India” initiatives the local demand for these carpets have been increasing within India as well as globally among 70 other countries

Profit margin

The profit margin which this business is likely to yield to you is

• Suggestions

Don’t slip this opportunity under the carpet and here’s why

• Firstly, the Indian carpet manufacturing involves traditional handwork, pure fabric and local designs and patterns which attracts a major foreign demand
• Secondly, the raw material and labour availability in abundance gives you the advantage of minimal investment and cost of production
• Lastly, it opens gates to establish business with global companies and designers in the interior designing industry