§1What this business is
A small metal workshop makes farm implements, cutlery and hand tools from high-carbon steel and mild-steel items. The steel is cut, bent, drilled and welded, the parts are assembled, handles are fitted and the goods are buffed for sale. The profile says these goods can be sold across the state and in neighbouring states.
Capacity: Installed capacity: 20,000 agricultural implements, 40,000 cutlery items and 20,000 hand tools. Costs are worked out at 50% capacity.
§2Is it right for you?
Who it is for
A blacksmith or welder who knows farm tools and can sell through village hardware shops and haats.
Who it is not for
Someone who wants a hands-off business — this is skilled workshop work.
Advantages
- Very low project cost
- Steady demand from farmers and households
- Simple machines — welding set, drills, grinders and a buffing motor
- Raw material is available locally, the profile says
Drawbacks
- Cheap factory-made tools compete on price
- Demand for farm tools rises and falls with the crop season
- Tool quality depends on correct hardening of the steel
- Small margin per piece
Skills you need
- Cutting, bending, welding and grinding steel
- Hardening and finishing tool edges
- Knowing the tool shapes farmers in your area use
- Selling to hardware dealers and at village markets
Why difficulty 2/5: Low cost and simple machines, but the work needs hands-on metal skill.
§3Market
Who buys
- Farmers
- Households
- Hardware and agri-input dealers
How it sells
- Village hardware shops and haats
- Dealers across the state and neighbouring states
Good to know
- The profile prices the nine machinery items together at ₹1,50,000.
- Sales in the profile are ₹1,10,000 a month at 50% capacity.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Welding set | 1 | — |
| Buffing motor | 1 | — |
| Drilling machine | 1 | — |
| 1 HP motor | 1 | — |
| Bench grinder | 1 | — |
| Hand drilling machine | 1 | — |
| Hand grinder | 1 | — |
| Bench vice | 1 | — |
| Panel board and electrification | — | — |
From: ni-msme project profile — Metal Based Industries: Agricultural Implements, Cutleries & Hand Tools
- High-carbon steelavailable locally, the profile says
- Mild-steel itemsavailable locally
- Welding rodsconsumable
- Handles and other consumablesfitted at assembly
From: ni-msme project profile — Metal Based Industries: Agricultural Implements, Cutleries & Hand Tools
Suppliers in Building Business Bazaar
Central Institute of Hand Tools, Jalandhar · Jalandhar →Fabrication (Agricultural Implements) Cluster, Perambalur, Tamil Nadu. · Tamil Nadu. →
§5Licences & registration
- Udyam registration
- GST registration
- Trade licence from the local body
- State Pollution Control Board consent where the state requires it
- BIS certification if a Quality Control Order covers the tool you make — check with BIS
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP and MUDRA fit a ₹3.30 L project; CGTMSE for a loan without collateral.
§7Money
How the investment is worked out: Machinery & equipment ₹1,50,000 + miscellaneous assets ₹25,000 + preliminary expenses ₹5,000 = fixed capital ₹1,80,000; plus working capital ₹1,50,000 = ₹3,30,000. Land and building rented.
Working capital: Working capital ₹1,50,000 — two months of raw material plus one month of expenses. Raw material ₹60,000 a month at 50% capacity.
Year not printed on the ni-msme profile, and its prices look old — check current machinery and material prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EEPC India
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker before shipping.
- You need an Import Export Code (IEC) from DGFT before the first shipment.
§9Risks — where people fail
- Competition from cheap mass-made tools
- Seasonal demand
- Steel price rises
- Returns for tools that bend or break
§1030 / 60 / 90-day plan
A general plan that applies to any business. A plan for this business will be added after research.
- Days 1–30: Visit a working agricultural implements, cutlery and hand tools unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam registration, GST registration), a project report (DPR), and the scheme or loan file.
- Days 61–90: Space and machines, trial production, and first deliveries to 10 customers.
§11Who to connect with
Associations, clusters and training institutes — the directory is being built. Connect
§12Watch
There is no episode on this business yet. Shows are coming soon on the Podcast page.
Want to start Agricultural Implements, Cutlery and Hand Tools?
DPR, loan file or registration — ask us on WhatsApp.
¶Sources
Data review: 6 October 2026. Spotted a mistake? Report it. For information only — not legal or financial advice.