Sports Goods Manufacturing Business Cost, Investment, Profit, Requirements | SkillsAndTech

Sports Goods Manufacturing Business Cost, Investment, Profit, Requirements | SkillsAndTech

Selecting to set up the right kind of manufacturing business seems to be a big challenge sometimes. We often face challenges like- the setup location, budget, finance, the machinery, and other related things. The biggest question that troubles and haunts us the most is that “Will my business be successful?”

We think and analyze the success rate and the profit margin, but what we fail to analyze is the selection of the right type of business. Choosing a suitable business not only gives us the chance to explore and grow, but it also creates big opportunities leading to generate high-profits.

Sports Goods Manufacturing Business is one such business. Every person has a great love for sports, be it any sport or any game. Both indoor and outdoor sports are loved by the children as-well-as by the adults. Even for some of us, playing sports is like meditating and releasing all our tension. The eternal love of people for sports is a significant reason to set-up the Sports Goods Manufacturing Business.

Establishing a Sports Goods Manufacturing Business

The COVID-19 pandemic compelled the sports industry to cessation and is also a major reason for causing massive sufferings to the Indian Sports Industry. As per various surveys conducted, the Indian sports industry has experienced an unusual downfall irrespective of the high demand for the export of sports goods.

Though the sports industry faced an immense loss in the lockdown caused due to the COVID-19 pandemic, the sports goods manufacturers were sure to make a roaring comeback. Not only with the deadly outbreak of the COVID-19 pandemic, the sports goods manufacturing industry faced a big loss, but the factories were also made shut down. Also, the production of these goods stopped midway, and the shipment containers were rejected.

Moreover, great growth has been seen in the viewership (number of viewers) of all the sports. Hence, it can be stated that sports good manufacturing business is a good choice for business enthusiasts.

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The Idea behind Choosing this Business

At the present time, India’s love for sports is moving far off from cricket. The reach is being extended to other sports resulting in increased demand for sports goods. The soaring need and demand for sports goods have also resulted in opening new business opportunities for budding entrepreneurs.

In the past few decades, India has also experienced a rapid increase in the sports field. With the change in time, people have also started giving importance to other sports except for cricket. One of such sports is football. Additionally, India has also started organizing various domestic leagues for football. In such matches, different teams play from different countries.

Some Additional Facts concerning Sports Goods Manufacturing Business

Let’s take a quick sneak-peak in the additional facts stated below:-

  • Jalandhar is the hub of sports goods manufacturing business, and nearly 70% of the sports goods are manufactured there.
  • There are several sports goods manufacturing industries that are producing 318 sports goods (approximately).
  • Nationally 5, 00,000 people are employed (estimated figure) by the sports manufacturing business industries.
  • Because of the massive outbreak of the COVID-19 pandemic, both the exports as-well-as domestic sales have suffered huge losses.
  • As per the survey held by the All India Sports Goods Manufacturers Federation[1], out of the 60% of the sports goods manufacturing, Meerut contributes 45%.

Evolution of Sports in the Indian Sports Industry

As it can be seen that people now, especially the youth, have also accepted all other sports along with cricket, the increasing love for sports seems to result in its widened range. The increased love and welcoming approach of people has been resulting in increased participation and growth of its viewership.

This is the reason that several new business ideas and opportunities are available for the people planning to invest in or start the Sports Goods Manufacturing Business.

Also, intending to establish or set up the Sports Goods Manufacturing Business the budding entrepreneurs need to keep the following in mind along with analyzing them:- 

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  • Setup your business.
  • Invest in good and well-crafted infrastructure.
  • Study and identify your target market.
  • Focus on the targeted market and study its reach to sell your sports goods.

Understanding the Indian Sports Industry

  • India is recognized as the largest producing industry of inflated balls in the market.
  • Since 1947, tremendous growth has been seen in the Indian sports goods manufacturing industry.
  • Moreover, sports goods like- football, Cricket bats, balls, knee pads and nets have also gained popularity.

Essentials of Establishing Sports Goods Manufacturing Business

Listed below are the requirements to set-up this business:-

Business Plan 

  • The primary requirement to set-up a business unit is to have a well-researched business plan & a thoughtful vision. 
  • You must have a clear picture of the ideas you want to implement in your business. Your business plan should also include a well-structured report on the sports equipment you want to keep. 
  • Study your target market thoroughly and create a detailed list of sports activities or events happening in your surroundings as-well-as internationally.
  • Once your detailed report is prepared, identify the requirement of sports goods in those events or activities.
  • After this, look for a suitable place to get your sports goods manufactured and also exported.

Sports Goods Manufacturing Business: Investment

  • To set up sports goods manufacturing business, a good investment is a must.  
  • Although the investment is large, the profits earned in the sports goods manufacturing business will overshadow all the initial investment made, generating significant profits. 
  • In case you are not capable enough to invest alone in setting up this business, you can look for a business loan, an investor or a partnership.

Setting Up the Business Unit

  • It is advisable to set up your business unit or factory in or nearby industrial area. 

Arrangement of Resources

  • While working to establish your business, you need to be sure about the raw materials quality. 
  • Keep the quality prior to the quantity of your manufactured product. 
  • Arrange your materials in a planned manner as it will directly affect the sale of your sports goods.


  • The costing or pricing of products is a big thing that plays a crucial role in the market. 
  • Keeping the cost of your products nominal in the initial period will help you in attracting and gaining a good number of customers. 

Licenses and Registrations

To establish a business, attaining certain registrations and licenses is a compulsion. Different kinds of business demand different licenses and registrations. 

Shampoo is a cosmetic product, and to establish a shampoo manufacturing business, obtaining specific licenses is a must.

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


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. 

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Sales and Marketing concerning Sports Goods Manufacturing Business

  • Rated as one of the most important aspects in setting up a business unit, sales and marketing need to be performed very effectively. 
  • To promote your products or sports goods, you can work on advertising them via various mediums. Like you can promote your sports goods manufacturing business by doing mouth publicity and getting the pamphlets printed. 
  • You can distribute these pamphlets in your nearby schools and cricket academies. 
  • In addition to these, you can also promote your business on social media platforms.
  • Following these market strategy will you in advertising your business in its initial period.

Reaching out to Sports Equipment Stores

  • In continuation of the points explained in the sales and marketing section, you can advertise and also sell your manufactured sports goods by contacting your nearby sports equipment stores or shops. Additionally, offering good prices and discounts on your products will motivate the shop owners to buy sports goods in bulk. Initiating this will also help you in expanding your business gradually.

So, these were the necessary requirements that need to be fulfilled before establishing a sports goods manufacturing business.

Except for these, you are required to attain a few licenses and registrations from the designated government. These certifications are as listed:-

  • CST/VAT Registration from the State government
  • Register your business entity as Firm/LLP. /Pvt. Ltd
  • Excise Registration
  • Service Tax Registration
  • Shop Act License


Getting involved in setting up or starting any business is always challenging. But, if you have the right idea and appropriate knowledge about the business you choose, the chances of failure can be lessened. This article helps you in understanding and analyzing sports goods manufacturing business in detail. This article revolves around making you understand the business setting up requirements for sports goods manufacturing business.

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