
MSME stands for micro, small and medium enterprises. The government of India introduced this law in the year 2006 to include proper terms and conditions to this sector and also to enhance the investment. The act also ensures the development of these enterprises and also a good competitive environment.
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In the MSME law government has assigned the amounts of investment for each individual. For the micro-enterprise, the investment should not exceed Rs. 25 lakhs. The investment for small enterprises will be more than Rs. 25 lakhs but less than Rs. 5 crores. For medium enterprises the investment amount should be more than Rs. 5 crores but less than Rs. 10 crores. It has been seen that the ROI (return of investment) of the MSME are very good. Few profitable business ideas about the MSME have been discussed below.
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Gold and Diamond Processing Business:
From the ancient age the jewellery is used to enhance someone’s beauty. It signifies the wealth, power, status, tradition and culture of people. A wide range of materials like gemstone, amber, oral etc are needed along with the golds and diamonds. Due to the low cost and availability high skilled labour, India is counted as the global hub of the jewellery market. With the well-supported govt.
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Policies India is the world’s largest cutting and polishing sector. According to the report of Gems and Jewellery Export Promotion Council (GJEPC), India export 75% of global diamond, which helps us to exchange a big amount of foreign currency. The government is looking to expand the exportation of jewellery. That’s why a lot of demand is already there. Considering all those above-mentioned factors this jewellery and gold business can be a very profitable one.
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Cold Storage (Shrimp & Agricultural Products):
When it comes to spices, India undoubtedly holds the first position, with more than 50 spices. As Indian dishes are incomplete without the usage of a lot of spices, a huge amount of production is required. India also exports chilli, turmeric, pepper, cumin etc in a bulk quantity to the foreign country. To store all these spices and grains good storage is required.
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Recently there is nearly 5400 storage in India. Most of them are with old technologies and limited capacity (only one type of vegetable like a potato). As the government is looking forward to increasing the cultivation of agricultural products a lot of new storage is required.
According to a rough estimation to install a storage plant a capacity of 1000MT Rs.553 lakhs are required. The ROI is also very good according to the statistics. It’s more than 13% per annum.
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Cement Manufacturing:
With rapid development and modern construction the requirement of cement is on the highest node of the curve. According to the prediction, its requirement will be increasing a lot in upcoming 10 years, as compared to the present. The raw materials including lime, clay, silica, magnesium oxide etc are also not very tough to get in India. The required manpower will also be very easy to get. One thing the owner or investor should keep in mind is that the location should be very close to the raw material mining to avoid the high transporting cost.
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To Install a cement manufacturing plant minimum investment of 50 lakhs is required. Sometimes the range varies according to the quality and quantity of raw materials. According to few reports of this, the return of investment is more than 22% in the Indian market. that’s why an investment in this industry will always be a profitable one.
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A4 And A3 Size Paper: With the development of both the industry and educational sector the demand for hardcopy documents is also increasing. Majorly, A4 and A3 papers are mostly used in the industry for documenting purposes. That’s why paper production plants are in huge demand.
According to the installation report, to install a plant and machinery with a capacity to produce 400 packets per day Rs. 60 lakhs are required. It is one of the enterprises with a huge ROI which is more than 32%.
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So, the above-mentioned industries are considered under MSME with a huge return of investment. Not only the business owner but also the economy of the country gets benefited from the exportation of those materials. The employment of a huge number of people is also directly connected with all the MSMEs.
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