New Delhi: More people are wishing to launch their own businesses due to the lack of job opportunities in both the public and private sectors. There is a clever business idea that you can take into consideration if you wish to launch your own business. You can undoubtedly make lakh of rupees if you put a little effort into this business. This discussion concerns a business that deals with PVC wire and cable coating.
PVC wire and cable coating is a lucrative venture that requires little initial capital. It doesn’t cost Rs 20-30 lakh to set up a manufacturing facility of the business. Rs 4 lakh is an easy starting point for this work, and you can get the remaining funds through the Pradhan Mantri Mudra Yojana initiative loan.
Business Idea: What makes PVC wire and cable coating a lucrative business venture?
PVC wires and cables are used in a wide range of industries such as power supply and distribution for homes, machine tools and equipment wiring, automobiles, electric appliances, flexible and cord cables. PVC wire and cables are highly sought after in the nation, and small manufacturers have a lot of room to grow in this market. Leaving aside the big companies, the PVC wire and cable coating industry is providing a substantial income stream to small and medium business owners.
Business Idea: How to set up PVC wire and cable coating unit?
A project report regarding the establishment of a PVC wire and cable coating unit has been prepared by the Khadi and Village Industries Commission. The project report states that the total cost of setting up the unit will be Rs. 40 lakh of which Rs. 4 lakh will be your own capital. There will be a working capital of Rs. 9 lakh.
A full industrial setup requires between 1500 and 2000 square feet of space. You can rent the space if you don’t have the required one.
Approvals & Registration Requirement for PVC wire and cable coating unit
To set up a PVC wire and cable coating unit, you will have to do some paperwork and also get permission from some government departments. The basic registration required in this project:
GST Registration for PVC wire and cable coating unit
Udyog Aadhar Registration (Optional)
Choice of a Brand Name of the product
NOC from State Pollution Control Board
Business Idea: How much will you earn from PVC wire and cable coating business?
Since your product will be new to the market, selling it for the same price as branded PVC wire and cables will be challenging. Consequently, you will need to offer a lower price for the product. You will initially make between 10% and 15% on your product. Later on, though, the profit margin may rise to 25%. You can easily save Rs. 40,000 per month if your business takes off with high quality products.
Business Idea: PVC wire and cable coating Manufacturing COST OF PROJECT
Particulars Amount
Land Rented/Owned
Plant & Machinery: Rs 28.60 Lakh
Furniture & Fixtures: Rs 1.40 Lakh
Working Capital: Rs 10.00 Lakh
Total: Rs 40.00 Lakh
Business Idea: PVC wire and cable coating MEANS OF FINANCE
Own Contribution: Rs 4.00 Lakh
Working Capital(Finance): Rs 9.00 Lakh
Term Loan: Rs 27.00 Lakh
Total: Rs 40.00 Lakh
To get the word out about your brand, you need to have a solid marketing plan. You can sell your PVC wire and cables to local shops, supermarkets, wholesale stores, etc. You can turn a healthy profit by listing your product online as well.
Business Idea: Profit From PVC wire and cable coating Manufacturing Business
The KVIC feasible report giving a Five Year’s Projected Profitability Statement on PVC wire and cable coating Manufacturing Business said that in the first year you can see a net profit of Rs 5.32 lakh, Rs 10.46 lakh in the second year, Rs 15.23 lakh in the third year, Rs 21.09 lakh in the fourth year and Rs 27.09 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.)
