§1What this business is
A woodworking shop with a lathe, band saw, planer, circular saw, spindle moulder and drill makes doors, windows, chairs, tables and other household, school and office furniture, and also takes repair work. KVIC calls carpentry and blacksmithy the 'mother industry' among village industries.
Capacity: PMEGP profile: 600 pieces a year. GRY profile: wooden furniture worth ₹37.03 L a year at cost.
§2Is it right for you?
Who it is for
A trained carpenter who wants his own shop and takes orders from homes, builders, schools and offices.
Who it is not for
Someone who has never worked with wood.
Advantages
- Furniture and repair demand everywhere
- A skill-based trade that customers value
- Custom orders usually come with an advance
- Machines are simple and made locally
Drawbacks
- Good timber is costly and must be bought legally
- Factory-made ready furniture competes
- Skilled carpenters are hard to keep
- Dust, noise and fire risk
Skills you need
- Joinery and finishing
- Reading drawings and measuring
- Buying timber
- Quoting and on-site fitting
Why difficulty 2/5: Standard machines; the business rests on the owner's carpentry skill.
§3Market
Who buys
- Households (doors, windows, furniture)
- Builders and contractors
- Schools and offices
How it sells
- Orders taken at the workshop
- Contracts with builders and institutions
Good to know
- The GRY profile groups products into household furniture, school and office furniture, kitchenware, transport items, musical instruments, toys and carving.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Wood-working lathe, 6 ft, with 1 HP motor | — | — |
| Band saw machine 18 in with 5 HP motor | — | — |
| Sander-cum-grinder 48 × 6 in with 1 HP motor | — | — |
| Planer machine 18 in | — | — |
| Spindle moulder with electricals | — | — |
| Circular saw 12 in with electricals | — | — |
| Drilling machine, ½ in capacity | — | — |
| Hand tools, office furniture and equipment | — | — |
| Equipment total (PMEGP profile) | — | ₹5,14,000 |
| Circular saw, surface grinder, universal wood-working machine and drill (GRY profile total) | — | ₹2,00,000 |
From: KVIC Project Profile — Carpentary Workshop (PMEGP) · KVIC Project Profile — Carpentry Unit (PMEGP)
- Timber of different kindsraw material ₹7.80 lakh a year in the PMEGP profile
- Timber, hardware and polishraw material ₹25.00 lakh a year in the GRY profile
- Labels and packing material₹40,000 a year (PMEGP profile)
From: KVIC Project Profile — Carpentary Workshop (PMEGP) · KVIC Project Profile — Carpentry Unit (PMEGP)
§5Licences & registration
- Udyam
- GST
- Trade licence
- Buy timber only from licensed depots (state forest rules)
- Fire safety
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP and MUDRA fit both sizes; KVIC prepared these profiles for its own schemes.
§7Money
How the investment is worked out: KVIC PMEGP profile: equipment ₹5,14,000 + working capital ₹2,82,000 = ₹7,96,000 (land own, shed not costed). Older KVIC Gramodyog Rozgar Yojana profile: building shed 1,500 sq ft ₹3,00,000 + equipment ₹2,00,000 + working capital ₹7,40,000 = ₹12,40,000.
Working capital: ₹2.82 L (PMEGP profile) to ₹7.40 L (GRY profile) — timber stock takes most of it.
Years not printed on the KVIC profiles — check current machinery prices. The ₹12.40 L profile was written for the older Gramodyog Rozgar Yojana.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
Export council / board: EPCH (for handcrafted wooden items)
- Confirm the 8-digit ITC-HS code on the DGFT site; wood must have legal origin papers for export.
§9Risks — where people fail
- Timber price and legal sourcing
- Delays and order disputes
- Fire
- Shortage of skilled labour
§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 carpentry workshop (wooden furniture) unit, ask 10 buyers about price and quantity, and get quotations from 3 suppliers.
- Days 31–60: Udyam and the licences you need (Udyam, 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 Carpentry Workshop (Wooden Furniture)?
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.