§1What this business is
Fabric is cut to size with scissors, stitched into covers on sewing machines, filled by hand with ginned raw cotton and quilted by hand for firmness. The KVIC profile says basic sewing knowledge is enough and that growing towns have raised demand.
Capacity: 2,600 pieces a year.
§2Is it right for you?
Who it is for
A tailor or family business in a town with a local furnishing market.
Who it is not for
Someone who wants to compete with branded foam mattresses.
Advantages
- Very small start — ₹4.70 L
- Simple skills: cutting, stitching, filling
- Steady demand from homes, hostels and hotels
Drawbacks
- Foam and coir mattresses take much of the market
- Cotton prices swing
- Low margin — about 10% of sales at full capacity
Skills you need
- Cutting and stitching
- Cotton filling and hand quilting
- Local selling
Why difficulty 1/5: Tiny investment and basic sewing skills.
§3Market
Who buys
- Households
- Hostels, hotels and guest houses
How it sells
- Furnishing and bedding shops
- Direct orders
Good to know
- The KVIC profile links demand to fast urbanisation.
§4Raw material & machinery
| Item | Qty | Cost |
|---|---|---|
| Sewing machine | 2 | — |
| Cotton cleaning machine | 1 | — |
| Weighing balance | — | — |
| Slotted angle racks, cutting tables, stools, office furniture | — | — |
| Equipment (all items above) | — | ₹1,00,000 |
From: KVIC Project Profile — Cotton Mattresses & Pillow (PMEGP)
- Ginned raw cotton₹16,20,000 a year for all raw material (KVIC profile)
- Fabric in different colours and designs
- Labels and packing material₹1,25,000 a year
From: KVIC Project Profile — Cotton Mattresses & Pillow (PMEGP)
In our raw material database
§5Licences & registration
- Udyam registration
- GST (once turnover crosses the limit)
- Trade licence from the local body
§6Schemes & subsidies
- PMEGPCentralActive15–35% subsidy
- MudraCentralActiveLoan up to ₹20 lakh, no collateral
- CGTMSECentralActiveNo collateral, up to ₹10 crore
PMEGP (KVIC profile), MUDRA Shishu/Kishor loans and CGTMSE fit this small unit.
§7Money
How the investment is worked out: KVIC profile: equipment ₹1,00,000 (2 sewing machines, cotton cleaning machine, weighing balance, slotted angle racks, cutting tables, stools, office furniture); working capital ₹3,70,000; total ₹4,70,000. Workshed rented.
Working capital: Working capital ₹3,70,000. Raw material ₹16,20,000 and labels/packing ₹1,25,000 a year.
Year not printed on the KVIC profile — check current machinery prices.
§8Export potential
Confirm the HS code in the DGFT ITC(HS) lookup before you export
- Exports are rare for a unit this size; the market is mostly local.
- Confirm the 8-digit ITC(HS) line with DGFT or your customs broker.
§9Risks — where people fail
- Cotton price rise
- Competition from foam mattresses
- Dust and fire risk from loose cotton
§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 cotton mattresses and pillows 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 (once turnover crosses the limit)), 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 Cotton Mattresses and Pillows?
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.