§1What this business is
Broom grass harvested in forest areas is cut to size on a broom cutter, graded, bundled and packed with a plastic packing machine. Brooms are a common household item sold through kirana shops, supermarkets and other outlets and sent to many districts. Hill broom making is a livelihood for many tribal families, as the report notes.
Capacity: 300 brooms a day, 90,000 a year at full capacity (8 hours, 300 days); 70% in year 1.
§2Is it right for you?
Who it is for
Someone in or near broom-grass forest areas (North-East, Odisha, hill districts) or a tribal self-help group.
Who it is not for
Someone far from raw material or retail buyers.
Advantages
- Very small investment (₹5.88 lakh)
- Two simple machines; quick to start (3 months)
- Brooms sell in every household
- Gross margin of about 30–33% in the report
Drawbacks
- Depends on seasonal forest broom-grass supply
- Low price per piece; volume is everything
- Many small competitors
- Grass collection may need forest-department permission
Skills you need
- Grading broom grass
- Bundling and packing
- Sourcing from collectors
- Selling to wholesalers and kirana
Why difficulty 1/5: Small investment, simple process and an everyday product.
§3Market
Who buys
- Households
- Offices, institutions and industries (including mining areas, as the report notes)
How it sells
- Kirana shops
- Super bazaars and supermarkets
- Wholesalers sending to other districts
Good to know
- The report sells each broom at ₹40.
- The report expects sales of ₹23.94 lakh in year 1 rising to ₹32.40 lakh in year 5.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Broom cutter | 2 | ₹1,30,000 (₹65,000 each) |
| Plastic packing machine | 2 | ₹20,000 (₹10,000 each) |
From: PMEGP sample project report — Broom Making (prepared by Udyami/Samadhan)
- Forest broom grassfrom forest districts; ₹18 lakh a year at full capacity in the report
- Plastic packing material and bindingfor bundling
From: PMEGP sample project report — Broom Making (prepared by Udyami/Samadhan)
In our raw material database
§5Licences & registration
- Udyam registration
- GST
- Forest transit pass or permission for minor forest produce where required
§6Schemes & subsidies
The report is a PMEGP sample; the cost is under ₹10 lakh, so MUDRA also fits.
§7Money
How the investment is worked out: Building & civil work (1,200 sq ft) ₹2.00 lakh + plant & machinery ₹1.50 lakh + furniture ₹0.45 lakh + working capital ₹1.93 lakh = ₹5.88 lakh.
Working capital: Working capital ₹1.93 lakh, of which bank finance ₹1.74 lakh; raw material ₹18 lakh a year at full capacity.
Year not printed on the report — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- Exports are small; buyers abroad may ask for fumigation certificates for plant material.
§9Risks — where people fail
- Raw grass shortage in a bad season
- Price competition
- Storage loss from moisture
- Forest produce rules
§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 broom making (phool jhadu) 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), 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 Broom Making (Phool Jhadu)?
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.